What is a teaming agreement (TA)?

This is an agreement that is put in place in the early states of a project. When a solicitation is anticipated, the prime contractor will review the scope of the work and determine what capabilities are needed to submit the best competitive proposal. The prime contractor will “team” with other businesses and/or universities to provide the best competitive mix for the proposal. The team members will be subcontractors unless another arrangement (such as a joint venture, partnership, etc.) is established.

What are the terms of the teaming agreement?

The TA will establish the roles of the team members and define the scope of the work each will perform. The TA will usually restrict the team members from participating in any other proposal effort for the solicitation. It will also establish the roles of the parties in preparing the proposal (drafting proposal, furnishing cost information, etc) and costs to be assumed by the parties. It will commit the prime contractor to enter into a subcontract with the team members if the prime receives the award.

What items should be considered in reviewing teaming agreements?

• There is no standard language so read the entire document carefully.
  
  
• Watch for unacceptable clauses such as limitation of liability, governing law, indemnity, arbitration, etc.
  
  
• Remove IP provisions unless there is just a generic statement that each party will own its own inventions and/or rights to intellectual properties will be negotiated and included with the subcontract.
  
  
• Carefully consider any exclusivity clauses. They will normally not be acceptable as they would prevent any other PI at the University from submitting a proposal. However, a PI could agree that he/she will team exclusively and a center can agree that the center will team exclusively.

Does the University initiate teaming agreements?

Not usually. However, there may be cases when Virginia Tech will be the prime contractor and want to have commitments from other organizations that they will be subcontractors. 

Is there a model teaming agreement for Virginia Tech?

Yes. There is a model teaming agreement with VT acting as a subcontractorthat you can provide. This agreement can be changed with VT as the prime if desired. Example of Teaming Agreement