July 22, 2013

Recent Cases Address Enforceability Of Teaming Agreements

Arnold & Porter Advisory

Government contracting is a team sport. Even the largest contractors rely significantly upon carefully chosen subcontracting partners to present the strongest proposal for a government opportunity. These subcontracts, however, are not executed until the award is won and the ink has dried on the prime contract with the government. Prior to the execution of a formal subcontract, the relationship between the intended subcontracting partners is governed by a "teaming agreement." Teaming agreements vary widely in their terms, and are a staple of government contracting that are specifically encouraged by the Federal Acquisition Regulation. This Advisory will address the decisions in two cases, Cyberlock Consulting, Inc. v. Info. Experts, Inc. and X Technologies, Inc. v. Marvin Test Sys., Inc., and how they have continued to shape case law governing the enforceability of teaming agreements. Government contractors should carefully consider how they structure their teaming agreements.

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