Can two small firms bid together on a government contract?

Teaming lets small firms compete for contracts too big or too broad for either alone: to fill a gap in skills or certifications, add capacity, meet a security clearance or local presence requirement, or add a local or Indigenous partner.

The three models

• Prime and subcontractor: one firm bids and signs, the other delivers part of the work. The simplest and most common.
• Consortium: firms bid together, often with one lead, sometimes each signing the contract.
• Joint venture: a new entity or contractual arrangement owned by the partners, used for larger or longer contracts.

What to check in the tender

• Whether joint bids are allowed, and whether each member must sign or meet some requirements on its own.
• Whether you can rely on a partner's experience, turnover or certifications.
• US set-asides: the SBA has specific rules on joint ventures and affiliation that can affect whether you still count as small. Check them before teaming.

What the teaming agreement covers

Who leads and signs, each partner's work share, exclusivity, confidentiality, bid costs, how you'll agree price, and what happens if you win or lose. Get legal advice for larger arrangements.

In the bid, present one team with one voice and a single point of contact. See teaming agreements and joint bids.