Once you are in contact with a prime, and you have agreed that you wish to work together you will need to create a formal legal document to describe the rules and responsibilities of your agreement. This document will provide the structure for how the work and payment will be split between the two entities. 

Teaming Agreements are one of the most common way subcontractor and primes can partner on a government contract. At its most basic it is an agreement between the potential Prime contractor (the one bidding) and a Subcontractor (the one who assists the prime to complete the job) to split the labor and revenue for a shared opportunity. 

Important Note: Due to the Prime taking the majority of the risk in a Teaming Agreement, they will have much more control and leverage when dictating the terms, such as how the labor and payment will be divided. 

This Program, developed by the SBA, lets large companies (Primes) mentor small businesses (Subcontractors) by providing them with proposal training, financial assistance, specialized human resources and management, as well as networking opportunities with the Primes contacts in the government. The Mentor-Protégé relationship is meant to train businesses that have potential but are new to contracting with the federal government, so that they can eventually become Primes themselves. 

For the mentor it has the added benefit of letting them qualify for any small business opportunities or Set-Asides that the Protégé is eligible for. 

Joint Ventures are created when two or more parties come together to share resources and create a new legal entity/business for the purpose of completing a single goal, in our case fulfilling a contract. They are often used when the risk or technical demands of a contract are too high for an individual company to take on. A Joint Venture is not simply a standard agreement where one party acts as the Prime and the other is a subcontractor. Rather it is a whole unique entity that is now operated by both parent companies. 

Before a Joint Venture can be formed both businesses will need to be registered in SAM.gov with active Cage Codes. That way the government can track which individuals are involved in the new Joint Venture. 

There are several other websites dedicated to partnering up Primes with potential Subcontractors. Whether you’re looking to get your start as a subcontractor or if your business is the one to post an advertisement to support your own proposal, here are the websites you’ll want to use. 

APEX Accelerators have designed several programs to provide your business with education and training to ensure you can participate in federal, state, and local government contracts. They have locations all across the US to help local businesses by answering questions regarding registering with SAM.gov, Set-Aside Certifications, and Subcontracting Opportunities. They also have connections within the federal sphere to help small businesses partner with other primes or government agencies. 

Before we begin the next module, work with your team to complete the following items.