A teaming agreement is a commitment in writing between two or more business entities, tied to one or more strategic goals. A teaming agreement often is limited to a short term, single goal, such as bidding for a specific contract with a designated federal agency. However, the arrangement may be more nebulous, such as identifying potential business opportunities across multiple federal agencies.
Teaming opportunities may give a small business the ability to find "partners" who can perform work which the small business cannot perform on its own, or provide a benefit to a large business seeking a small business teammate as part of a required small business utilization plan.
FAR 9.602 states: (a) Contractor team arrangements may be desirable from both a Government and industry standpoint in order to enable the companies involved to --(1) complement each other's unique capabilities; and (2) offer the Government the best combination of performance, cost, and delivery for the system or product being acquired. (b) Contractor team arrangements may be particularly appropriate in complex research and development acquisitions, but may be used in other appropriate acquisitions, including production. (c) The companies involved normally form a contractor team arrangement before submitting an offer. However, they may enter into an arrangement later in the acquisition process, including after contract award.
As a non-profit education institution Penn State's participation in teaming arrangements is categorized as a "non-exclusive partner" in order to comply with the Penn State Mission Statement. Penn State also participates in Small Business Innovation Programs (SBIR) and Small Business Technology Transfer Programs (STTR).