FAR 9.603—Policy.
Plain-English Summary
FAR 9.603 states the Government’s policy on contractor team arrangements, including teaming agreements, joint ventures, and other collaborative arrangements used to pursue federal work. It says the Government will recognize the integrity and validity of these arrangements when they are properly identified and when the company relationships are fully disclosed in the offer, or—if the arrangement is created after the offer is submitted—before it becomes effective. The section also establishes that the Government will not normally require or encourage the dissolution of contractor team arrangements. In practice, this policy supports competition and flexibility by allowing firms to combine capabilities, while also protecting the Government’s interest in transparency about who is teaming with whom and how the relationship is structured. It matters to both contractors and contracting officers because undisclosed or late-disclosed teaming relationships can create evaluation, responsibility, and compliance problems, even when the underlying arrangement is otherwise permissible.
Key Rules
Recognize valid team arrangements
The Government accepts the integrity and validity of contractor team arrangements. This means teaming, joint venture, and similar collaborative structures are not disfavored simply because multiple firms are working together.
Full disclosure is required
The arrangement must be identified and the company relationships fully disclosed in the offer. The Government’s recognition depends on transparency about the parties and how they are related for performance and proposal purposes.
Post-offer arrangements must be disclosed before effective
If the team arrangement is entered into after submission of an offer, it must be disclosed before it becomes effective. Late-created arrangements are allowed, but only if the Government is informed before the relationship takes effect.
No routine dissolution requirement
The Government will not normally require or encourage dissolution of contractor team arrangements. Agencies should not treat teaming as inherently problematic or pressure offerors to break up legitimate arrangements without a specific reason.
Responsibilities
Contracting Officer
Recognize properly disclosed contractor team arrangements, evaluate offers with awareness of the disclosed relationships, and avoid normally requiring or encouraging dissolution of legitimate team arrangements.
Contractor
Identify the team arrangement in the offer and fully disclose the company relationships; if the arrangement is formed after offer submission, disclose it before it becomes effective.
Agency
Apply the policy consistently by respecting valid team arrangements and ensuring procurement actions do not improperly discourage or dismantle legitimate teaming structures.
Practical Implications
Teaming is allowed, but transparency is essential; undisclosed relationships can undermine confidence in the offer and create compliance issues.
Contractors should make sure the proposal clearly explains who is teaming, what each party will do, and how the relationship is structured before submission or before any later arrangement takes effect.
Contracting officers should not assume that a teaming arrangement is improper just because it involves affiliates, subcontractors, or multiple firms; the key issue is disclosure and validity.
A common pitfall is treating a post-offer teaming change as harmless when it actually became effective before disclosure; timing matters.
This policy helps preserve competition and access to specialized capabilities, but it also means offerors must be careful that their teaming disclosures are complete, accurate, and timely.
Official Regulatory Text
The Government will recognize the integrity and validity of contractor team arrangements; provided , the arrangements are identified and company relationships are fully disclosed in an offer or, for arrangements entered into after submission of an offer, before the arrangement becomes effective. The Government will not normally require or encourage the dissolution of contractor team arrangements.