Teaming Agreements: Date or Marriage?
May.16.2013
In Cyberlock Consulting, Inc. v. Information Experts, Inc. (E.D.Va. Apr. 3, 2013), the district court, based on "plain meaning," dismissed the sub's claim for breach of a teaming agreement by the prime for failure to subcontract with it after the award of a prime contract, holding that the subcontract provisions in the teaming agreement were "unenforceable agreements to agree" because the teaming agreement merely described the sub's scope of work as 49 percent of the functions and work in the prime contract, did not include subcontract terms, and provided for termination of the teaming agreement if the parties could not agree on a subcontract after good faith negotiations. This decision confirms that precise drafting of teaming agreements can make the difference between an unenforceable date and an enforceable marriage.
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