How Teaming Agreements & Joint Ventures Can Accelerate Growth
In the competitive world of government contracting, success isn’t just about what you know—it’s about who you work with. Strategic partnerships can be the key differentiator that propels small and mid-sized contractors into larger, more complex contract opportunities while minimizing risk.
Kinetic has a diverse client base spanning defense, intelligence, aviation, cybersecurity, and federal civilian markets, providing invaluable strategic relationships for businesses looking to expand their contracting footprint.
Why Strategic Partnerships Matter in Government Contracting
For many small and mid-sized contractors, breaking into new agencies, competing on IDIQs, or securing prime contracts can feel overwhelming. Strategic partnerships help overcome barriers by offering:
✅ Access to Bigger Opportunities – Teaming with larger primes provides small businesses access to multi-billion-dollar contracts they wouldn’t qualify for alone.
✅ Increased Capabilities – Partnerships with specialized small businesses allow firms to offer enhanced capabilities to government agencies.
✅ Better Competitive Positioning – Government buyers value proven teams with the right mix of expertise. Strategic alliances strengthen proposal credibility.
✅ Reduced Risk & Shared Costs – Joint ventures and mentor-protégé agreements allow companies to pool resources and mitigate financial risk.
How to Find the Right Strategic Partners
Finding the right strategic partnerships requires a mix of market intelligence, relationship-building, and alignment of capabilities. Here’s how to identify the best teaming opportunities:
1. Leverage Your Network or Kinetic’s Diverse Client Base
Kinetic works with a diverse set of clients across multiple federal agencies and contract vehicles. By partnering with us, small businesses can connect with larger primes, specialized small businesses, and emerging tech firms looking for strong teammates.🔗 Explore how Kinetic helps facilitate partnerships.
2. Research Awarded Contracts & Teaming Trends
Use platforms like SAM.gov, GovWin, GovTribe, and FPDS to track which primes are winning contracts in your target space. Identify gaps in their capabilities that your company can fill.
3. Attend Industry Events & Networking Forums
Engage in AFCEA, NDIA, AUSA, AFA, and agency-specific industry days to connect with potential partners and contracting officers.
4. Focus on Complementary Capabilities
Look for partners that fill gaps in your experience—whether it’s past performance, cybersecurity compliance, or niche technical expertise.
Choosing the Right Partnership Model: JV, Teaming Agreement, or Mentor-Protégé?
Selecting the right partnership structure depends on your business goals, contract type, and growth strategy. Here’s a breakdown of the most common models, along with their pros and cons:
1. Teaming Agreements
📌 Best for: Pursuing specific contract opportunities where a prime-subcontractor relationship is needed.
✔ Pros:
Allows small businesses to join larger contracts without the administrative burden of prime contracting.
Defines roles, responsibilities, and workshare between companies before contract award.
Common for IDIQs, GWACs, and large agency procurements.
❌ Cons:
The prime controls contract execution, leaving subcontractors with less influence over performance and decisions.
Revenue potential is limited based on negotiated workshare.
Limited Consideration or No shared past performance; Often only the prime past performance is is evaluated, so you may not be able to use the past performance, or be limited to only the work you performed. Some large businesses have even refused to provide past performance citations for subcontractors (this is a violation of FAR clauses, by the way).
2. Joint Ventures (JV)
📌 Best for: Companies wanting to compete as a single entity on large procurements.
✔ Pros:
Used by two or more businesses to form a new legal entity for bidding on federal contracts.
Allows firms to combine past performance and qualifications for greater competitive strength.
Can access larger contracts that require broader capabilities.
❌ Cons:
Some RFPs do not allow individual members to use past performance, only work performed by the JV itself counts—making early wins critical.
JV setup requires additional legal and compliance considerations, including a well-defined operating agreement.
May create conflicts in decision-making and profit-sharing if not structured properly.
3. SBA Mentor-Protégé Joint Venture
📌 Best for: Small businesses looking for long-term growth & access to new contract vehicles.
✔ Pros:
Larger mentor firms help small businesses gain experience while competing as a JV.
Can qualify for small business set-asides under SBA rules.
Provides access to training, back-office support, and BD assistance from the mentor company.
- IDIQs with extended periods of performance extend the viability of the MPP JV to the end of the IDIQ, which counters the MPP and JV clock.
❌ Cons:
Requires formal SBA approval, which can be time-consuming.
The mentor company may gain significant control, making it essential to structure agreements carefully.
The protégé must meet SBA eligibility requirements, limiting flexibility in partner selection.
- They have a 3-year clock running, and each JV formed under the MPP program has a 2-year clock that starts at the first award.
🔗 Need help structuring your teaming strategy? Kinetic provides expert guidance.
Guiding You Through the Legal & Compliance Process
Before entering any teaming agreement, JV, or mentor-protégé relationship, it’s critical to address:
✅ Workshare Allocation – Define clear roles, responsibilities, and percentage splits.
✅ NDAs & Confidentiality Agreements – Protect proprietary information and pricing.
✅ Compliance with FAR & SBA Rules – Ensure the partnership aligns with federal guidelines.
✅ Exit Strategies & Dispute Resolution – Have a plan for handling disagreements or contract terminations.
💡 Kinetic provides expert guidance throughout the partnership formation process. While we do not provide legal advice, we work can work closely with your legal firm, or we can refer your one our clients have had success, to ensure compliance and effective agreements.
