3 Ways for Government Contractors to Use Teaming Agreements to Grow Sales

August 11, 2022
3 Ways for Government Contractors to Use Teaming Agreements

Teaming agreements, when used properly, can be a vital way for companies to expand their pipeline of government contracting opportunities. A teaming agreement is a type of subcontracting where one business, usually a smaller business, will enter into a teaming agreement with a larger company to subcontract some of the work on a government bid or RFP.


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Here are three ways government contractors can maximize their business opportunities and ultimately grow their government sales.

1. Become a Subcontractor

Nearly four in five items of contract work awarded has a subcontractor on it. This means there is an abundance of contract work available – and plenty of competition for that work. So how do you stand out in a crowd? Bringing something unique to the table - that differentiates you from other partners - is important. Being awarded a government contract is capability driven; interested bidders have to prove to government procurement staff that they are capable of fulfilling the duties in the contract’s scope of work. For companies who don’t have a long track record of winning and fulfilling government contracts, becoming a subcontractor by teaming up with a prime is a great tactic to beef up your capabilities statement. Gaining experience as a subcontractor can set your firm up for success as it grows and seeks to win more government contract awards.

Conversely, some government contracts require large companies to subcontract with a small business in order to be eligible to submit a proposal. This creates more opportunities for small businesses to get involved in federal contracting and fosters a strong economic environment in support of small and minority owned businesses.

2. Go Beyond Government Websites

Companies often find that when they rely on SAM.gov or crawling other government websites to identify potential opportunities, other more sophisticated companies have already been engaging the agency buyers in discussions and have done some “pre-selling”. Once a solicitation is released on a government website, agency contracting officers and buyers have very restricted rules around communication that essentially preclude discussions with individual companies until the acquisition is awarded. Using tools that go beyond government websites can help businesses stay ahead of the game.

3. Partner with Other Contractors

Small businesses often break into new fields or gain contracting experience through subcontracting and serving on a prime’s team. It is a tactic that often allows you to avoid some of the complicated compliance requirements and challenges competing against more established vendors, yet gaining some experience and building up past performance.

Successful Strategies for Government Contractor Teaming Agreements

It’s clear that building relationships in government contracting is a crucial element to help win more teaming and subcontract opportunities, and that the competition to serve as a prime or sub for these opportunities is as fierce as ever. This makes it important to be able to use the right strategies to overcome these challenges and successfully partner on a winning government proposal. As a potential teaming partner, to maximize your possibility for success, you’ll want easy access to solutions and tools that both provide ways to find opportunities for new subcontract and teaming agreements, and that offer timely analysis of the most relevant contract vehicles and agreements that you have in your pipeline.

The good news is that you don’t have to do all of this alone. Solutions like Deltek’s GovWin IQ are designed to help you make better decisions about which opportunities to pursue with a high probability to close and which don’t, and contain tools that proactive businesses use to enable finding quality teaming partners based on strategic fit.

We recently identified a really good, active, strong lead, and we’re in the process of teaming in pursuit of that. And that’s directly because of our GovWin IQ pre-RFP search—it’s been a major value for us.

Andrea Sauvegeot, Communications and Research Coordinator, Tindale Oliver

When you subscribe to GovWin IQ you will be able to take full advantage of its robust teaming capabilities. You can update your Company Teaming profile in GovWin IQ, and each user can create their Personal profile, which will enable users to be visible for teaming purposes, list themselves as potential vendors, and contact other members of the GovWin IQ Teaming Network. Plus, you can advertise your interest on relevant opportunities to help your own team find teaming partners.

Ready to learn more? Request your free trial of GovWin IQ today and see how your company can leverage teaming agreements to grow its government business.


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