The Flood That Triggered Federal Action
On July 4, 2025, historic flooding struck Kerr County, Texas, following heavy rainfall that began late the night before. The Guadalupe River rose rapidly, overtaking roads, homes, and critical infrastructure. More than 100 people lost their lives across the region, making it the deadliest flash flood Texas has seen in over 20 years.
If primes are reaching out to you for teaming, it means you bring something valuable. But too many small businesses say yes to the first offer, even when the terms are one-sided. If your role is unclear and the percentage is low, it might not be a partnership at all. It might just be a placeholder.
Here’s how to recognize a bad deal, negotiate a better one, and decide when it’s worth saying no.
Why Primes Want You on the Team
Federal rules give primes strong incentives to work with certified small businesses. If you're an SDVOSB, WOSB, HUBZone, or 8(a) firm, you qualify them for set-aside contracts they couldn’t pursue alone. You might also bring niche skills, past performance in a target agency, or simply a stronger proposal under FAR 15.305.
For contracts over $750,000, primes are required to submit a subcontracting plan under FAR 19.702. That’s why teaming isn’t just about capability—it’s also about compliance. When you show up with certification, experience, and availability, you’re solving three problems for the prime at once.
But when that value is met with a 3% share and no access to the proposal, it’s time to ask what you’re really getting.
What a Fair Teaming Agreement Looks Like
There’s no fixed formula, but there are patterns we’ve seen across hundreds of real contracts:
If they want your status only (with little or no work): 5 to 10% may be fair.
If you’re doing 30 to 40% of the labor: Your share should reflect that directly.
If you’re contributing to the proposal or providing past performance: You deserve input into the scope and revenue split.
If there’s no written scope of work, that’s a red flag. SBA affiliation rules (13 CFR 121.103) and FAR 52.219-14 require clear delineation of roles. Without that, you risk compliance issues—and you may get boxed out of the actual work.
How to Counter the Low Offer Without Burning the Bridge
Most primes will expect some pushback. If you come prepared, they’ll respect the approach:
“Can we walk through the labor breakdown and how the percentage was calculated?”
“Since we’re providing 40% of the staffing and technical deliverables, can we revisit the proposed share?”
“Are we able to review the proposal before submission or sign a letter of intent outlining our scope?”
You’re not demanding. You’re clarifying. That’s the difference between being a passive sub and a real teaming partner.
Jesse Carlow’s Example: Start Smart, Then Scale
Jesse Carlow launched a healthcare supply firm in Austin, Texas. With no prior contracts, he started teaming with well-established primes like Ecolab and Job Corps. He used USFCR to get certified as an SDVOSB, build a compliant profile, and access simplified acquisitions. Within nine months, he had six contracts awardedUSFCR Case Study Summar….
Teaming gave him a runway—but he knew when to switch from support role to prime.
When It Makes More Sense to Go Prime
You may not need the prime. Many small businesses win their first awards directly by targeting simplified acquisition contracts under $250,000. These are faster, less competitive, and designed for small vendors.
That’s how Jean-Max Charles landed a $65,880 VA contract just three months after registration. He used his SDVOSB status, trained weekly through USFCR Academy, and focused on contracts he could handle soloUSFCR Case Study Summar….
If you’re already doing the work, already qualified, and already known in the agency, going prime gives you full control—and full payout.
What’s Next?
Teaming works best when both parties win. If your share doesn’t match your value, it’s time to negotiate—or prepare your own bid. USFCR helps businesses do both. We’ll review teaming offers, prep counter proposals, or guide you through simplified acquisitions if you’re ready to go prime.
Let’s map out the smartest next move for your business.
What should be in a teaming agreement?
It should include proposal responsibilities, workshare, payment terms, timelines, and protections if the bid is awarded.
What percentage should I expect?
It depends on your role. For status only, 5 to 10% is common. If you’re doing the work, your share should reflect it.
Can I say no to a teaming offer?
Yes. If the terms are vague or undervalue your contribution, a professional “no” protects your reputation and future opportunities.
The U.S. Fish and Wildlife Service, through the Department of the Interior, is expected to award funds to up to 15 applicants for innovative programs in relation to recreational boating and fishing activities under its National Outreach and Communications Program (NOCP). Be aware that eligible applicants must demonstrate experience with the following:
Your SAM registration cost you time and paperwork. Now it's sitting there doing nothing while your competitors are winning contracts. Here's how to fix that.
The United States has a long history of being a major contributor of foreign aid. In 2022, 86% of the United States’ foreign aid was allocated to economic support, while 14% went to military support. Ukraine, Israel, Ethiopia, Afghanistan, and Yemen were the top five nations to receive funding that year. (Haines, 2024). As of 2024, the United States remained the largest donor of governmental humanitarian aid, followed by the European Commission, Sweden, Germany, the United Kingdom, Japan, France, Switzerland, the Netherlands, and Norway (Donare, 2024).
The U.S. government isn’t launching its own cryptocurrency anytime soon, but it’s already testing and applying blockchain tools across public finance, supply chains, and emergency response. From the state of Wyoming’s own stable token to Navy pilots for parts tracking, crypto isn’t a theory anymore. Its infrastructure is in progress.
Even with political resistance to a central bank digital currency (CBDC), agencies are actively exploring how token-based systems can improve transparency, speed, and verification. These programs aren't just technical experiments. They shape how money moves, how contracts get fulfilled, and how data is trusted.
When you’re just starting out in federal contracting, it’s easy to focus on the obvious hurdles: SAM registration, past performance, and finding bid opportunities. But one of the less visible and potentially contract-killing obstacles is something many new contractors overlook: how to handle sensitive government information.
Controlled Unclassified Information (CUI) isn’t classified, but it’s still considered sensitive by federal agencies. And if your contract involves it, even indirectly, you’re expected to meet strict security standards from day one. For small businesses, especially, ignoring CUI compliance can mean losing contracts, getting flagged during award evaluations, or being shut out of future work altogether.
So what exactly is CUI, and how do you handle it the right way without building a massive IT team? Here’s what it means, what the rules say, and the steps your business should take now to stay eligible and competitive.
Janitorial services are among the most consistently funded and recurring contract categories across federal, state, and local governments. Every year, millions of square feet of federal space need to be cleaned, sanitized, and maintained. That includes courthouses, military bases, post offices, and VA hospitals. These contracts often span multiple years, offer recurring revenue, and present a massive opportunity for service-based small businesses ready to step into the government market.
Smart contracts are self-executing code that follow if-then rules on a blockchain. They do not replace the Federal Acquisition Regulation (FAR); they carry it out automatically. Agencies are already testing how these tools can confirm milestones, release payments, and log every step for easy audits. For vendors, this could cut weeks from payment cycles and provide a permanent record of performance.
What Smart Contracts Are
A smart contract is code that says, “If the delivery is verified, pay the vendor.” Once written, the logic cannot be changed without both parties agreeing. Think of direct deposit: after you enter the correct routing and account number, payments run by themselves.
