Enforcing Teaming Agreements in Virginia

This post was written by Alexander Y. Thomas, Lorraine M. Campos, Brent R. Gary, and Gregory S. Jacobs.

Contractors routinely sign teaming agreements to evidence collaboration in pursuit of government business. But, what’s the value of a teaming agreement if you can’t enforce it? The United States Court of Appeals for the Fourth Circuit’s recent ruling in CBX Technologies, Inc. v. GCC Technologies, LLC illustrates that courts will closely scrutinize the enforceability of teaming agreement terms when at issue. In CBX Technologies, the Fourth Circuit vacated the lower court’s ruling and found that the parties’ intent to enforce and be bound by the terms of a teaming agreement was a critical issue to be determined after a trial on the merits.¹

Virginia courts analyze and balance a number of factors in determining whether a teaming agreement is a binding contract, or simply an unenforceable agreement to agree. Below are key points that every contractor should consider when entering into, negotiating, or drafting a teaming agreement to be enforced under Virginia law.

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¹ 2011 U.S. App. LEXIS 24641 at *9.