FAR 9.604—Limitations.
Plain-English Summary
FAR 9.604 explains the limits on contractor team arrangements under the FAR’s contractor teaming rules. It makes clear that this subpart does not override antitrust laws and does not reduce the Government’s existing rights to require consent to subcontracts, evaluate the prime contractor’s responsibility, provide Government-owned or Government-controlled data rights to the prime, pursue competitive contracting and subcontracting policies, or require component breakout after initial production or later. It also confirms that the prime contractor remains fully responsible for performance even when work is divided among team members or subcontractors. In practice, this section is a safeguard: it allows teaming arrangements to be used as a business tool, but only within the boundaries of competition law, subcontract administration, responsibility determinations, data rights rules, and the Government’s continuing oversight of performance and sourcing decisions.
Key Rules
No antitrust immunity
Nothing in this subpart authorizes contractor team arrangements that violate antitrust statutes. Teaming is permitted only when it complies with applicable competition laws and does not create unlawful collusion, bid rigging, market allocation, or other prohibited conduct.
Subcontract consent still applies
The Government retains the right to require consent to subcontracts under FAR subpart 44.2. A teaming agreement does not eliminate the need to obtain approval where the contract or regulations require it.
Responsibility remains a Government determination
The Government may assess the prime contractor’s responsibility based on the stated team arrangement under FAR subpart 9.1. A proposed teaming structure can affect whether the prime is considered capable, reliable, and eligible for award.
Government data rights are preserved
The Government may provide the prime contractor with data rights that it owns or controls. Teaming arrangements do not limit the Government’s ability to share or withhold data in accordance with applicable rights and licensing rules.
Competition and breakout policies remain in force
The Government may continue its policies on competitive contracting, subcontracting, and component breakout after initial production or at any other time. Teaming does not prevent the Government from changing sourcing strategies or opening work to competition later.
Prime contractor stays fully accountable
The prime contractor remains fully responsible for contract performance regardless of any arrangement with subcontractors or team members. The Government looks to the prime for delivery, quality, schedule, compliance, and overall contract results.
Responsibilities
Contracting Officer
Ensure teaming arrangements are reviewed within the limits of antitrust law and FAR policy; require subcontract consent when applicable; evaluate the prime contractor’s responsibility using the proposed team structure; protect Government data rights; and preserve the Government’s ability to compete work or require breakout as appropriate.
Prime Contractor
Use teaming arrangements only in lawful ways; obtain required subcontract consents; remain fully accountable for performance; manage subcontractors and team members effectively; and understand that the arrangement does not reduce the Government’s rights or oversight.
Subcontractors / Team Members
Participate in the team arrangement without engaging in prohibited anticompetitive conduct; comply with the prime’s contractual requirements; and recognize that they do not replace the prime’s responsibility to the Government.
Agency / Government
Apply antitrust and procurement rules consistently; retain and exercise rights over subcontract consent, responsibility determinations, data rights, competitive contracting, subcontracting, and component breakout; and hold the prime accountable for overall contract performance.
Practical Implications
Teaming can help contractors combine capabilities, but it is not a shield against antitrust issues or a way to bypass procurement controls.
A well-written teaming agreement does not guarantee award or responsibility; the contracting officer still evaluates whether the prime is truly capable of performing.
Contractors should not assume subcontracting decisions are automatic—some contracts require consent, and the Government can still scrutinize or limit subcontracting.
The Government can change sourcing strategy later, including competing work or breaking out components after initial production, even if the original contract used a team arrangement.
Primes should manage subcontractors closely because the Government will hold the prime fully responsible for cost, schedule, quality, and compliance failures caused by the team.
Official Regulatory Text
Nothing in this subpart authorizes contractor team arrangements in violation of antitrust statutes or limits the Government’s rights to- (a) Require consent to subcontracts (see subpart 44.2 ); (b) Determine, on the basis of the stated contractor team arrangement, the responsibility of the prime contractor (see subpart 9.1 ); (c) Provide to the prime contractor data rights owned or controlled by the Government; (d) Pursue its policies on competitive contracting, subcontracting, and component breakout after initial production or at any other time; and (e) Hold the prime contractor fully responsible for contract performance, regardless of any team arrangement between the prime contractor and its subcontractors.