September 21, 2023 New Contractor’s Guide to Navigating GovCon Teaming

Developing good teaming relationships is the key to success for government contractors – building credibility in a challenging atmosphere.

By AJ Jernigan, Solutions Engineer, Deltek

Many private sector organizations are looking at government contracting as a way to diversify their businesses in the face of macroeconomic pressures. However, the federal government has grown increasingly selective about who it works with, and breaking into government contracting isn’t as easy as it might seem.

That’s where teaming agreements enter the picture. A teaming agreement is an arrangement in which a small business enters a partnership with a larger business to subcontract work on a government bid or request for proposal (RFP). These agreements are one of the most common avenues for new contractors to win business.

However, teaming agreements can fall short of their goals if businesses fail to prioritize best practices for collaboration. To increase the likelihood of success, businesses must select teaming partners that are the right fit and then develop and maintain healthy working relationships over time.

Why are teaming relationships necessary for new contractors?

Credibility is a prerequisite for businesses that work with the federal government. The government simply won’t risk working with unproven contractors when millions of dollars are on the line, so contractors must be able to demonstrate their reliability.

Contractors can establish their credibility in one of two ways. First, they can show proven federal contracting experience related to the work outlined in the RFP — work in the private sector or state and local government carries little weight.

But what about businesses that are attempting to secure their first contract with the federal government? Since these organizations aren’t able to point to previous federal contracting experience, the second option is really their only option: demonstrating they have worked with a partner that does have proven government experience through a teaming agreement.

While teaming agreements are the primary option for new contractors, these partnerships can easily fizzle out if partners struggle to collaborate effectively. For example, one party may grow complacent and fail to meet with their partner on a regular basis. Remote work can also strain the relationship, with contractors citing a lack of face-to-face communication as the greatest business development challenge they face.

Another problem contractors face is scope creep, a phenomenon in which the project begins with one deliverable in mind and eventually splinters or grows into multiple deliverables. Scope creep can lead to missed deadlines, communication silos, and decreased profitability.

Without effective processes and documentation, less-established contractors may also find themselves stuck in an exploitative teaming environment. Rather than developing a true mentor-protege relationship, the more established contractor can take advantage of the smaller contractor for their labor instead of serving as an advisor or teacher.

How to prevent your teaming relationships from falling flat

Navigating modern teaming relationships is a difficult task for any contractor, but it can be especially daunting when you’re making your first foray into federal contracting. However, developing strong teaming relationships with experienced contractors is essential if you want to become eligible to bid on government work and diversify your business.

Here are three pieces of advice to keep in mind as you enter the world of government contracting:

1. Vet potential teaming partners
   The fit between teaming partners is perhaps the greatest indicator of a successful relationship.
   
   Vetting potential partners begins with understanding your own organization. What product do you offer, and what gaps are you able to fill for the government? Determine whether you can fill the gap by yourself or if you need outside help to deliver certain capabilities. Identifying any deficiencies can help narrow your search for a teaming partner.
   
   Throughout the vetting process, consider potential partners’ experiences. Check their references and previous partners to learn about their working preferences. Analyze their contract history to gain insight into the likelihood of them winning a follow-up on the contracts they currently have. Also consider how their experience will appeal to government agencies when pitching your services. Ensuring your fit and experience are a good match will improve the odds of securing your desired bid.
   
2. Build the relationship over time
   Deciding which organization you’re going to team with is only the first step. At the beginning of your relationship, outline objectives, tasks, and the division of responsibilities between you and your new partner. Discuss factors like workflows, meeting cadences, and points of contact. These factors will evolve over time, so consider beginning with a smaller government bid and progressing to larger projects as your relationship develops.
   
   To prevent being locked into an unhealthy teaming dynamic, avoid any sort of exclusivity agreement with a specific partner. By casting a wide net and cultivating relationships with several organizations, you can increase the possibility of securing additional contracts and reduce the potential negative impact of a relationship that doesn’t bear results.
   
3. Leverage technology
   While there are some administrative tasks new contractors can complete manually (e.g., gathering documentation for an RFP), technology offers a more efficient, agile path forward.
   
   For example, inexperienced contractors may struggle to understand the context and nuances of a government RFP. Hiring a consultant to guide you is an option, but contracting technology solutions often provide more visibility through context-driven data analysis. Greater visibility into what government agencies are looking for allows you to target the right teaming partners.
   
   Then, throughout the working relationship, technology can prove valuable for keeping track of deliverables and preventing projects from ballooning out of scope. Intuitive contracting solutions can reduce miscommunications and inefficiencies and keep projects running smoothly. 

Healthy teaming relationships are non-negotiable for contracting success

Teaming is the most realistic path forward for securing your first contract with the federal government. However, you need to remain intentional about vetting potential partners and developing teaming relationships over time for it to be successful.

Ultimately, the bid process is far too competitive to work with a partner that doesn’t have your back. The ideal teaming agreement is one where both parties learn from each other and plug the other’s knowledge and skill gaps. To make this vision a reality and secure contracting opportunities, leverage technology that allows you to identify potential teaming partners, as well as the ideal RFPs that you should pursue together.

As a solutions engineer at Deltek, AJ Jernigan is a business development and growth expert committed to government contractor client success. His role is laser-focused on understanding the issues government contractors face and addressing them with tailored technological solutions, and he’s presentednumerous talks on the future of government contracting and teaming initiatives. With more than a decade of managerial experience, AJ has a proven track record of outlining a path to success for the many projects he supports.

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