Letter of Agreement(LOA)
A document outlining terms and conditions of an agreement between two or more parties, often used in teaming and subcontracting arrangements.
Overview
A Letter of Agreement (LOA) is a written document that establishes the terms, responsibilities, and expectations between two or more parties before a formal contract is executed. In government contracting, LOAs are commonly used in teaming arrangements, subcontracting relationships, and inter-agency agreements to memorialize commitments during the capture and proposal phase.
Why It Matters in GovCon
LOAs provide a critical foundation for teaming arrangements, ensuring all parties understand their roles, work share, and financial terms before investing significant bid and proposal resources. While not always legally binding to the same degree as a contract, they establish good-faith commitments that facilitate collaboration.
Key Details
- Teaming Use: LOAs define work share, pricing agreements, and exclusivity terms between prime and subcontractor partners.
- Pre-Award: Typically executed during capture or proposal development, before a contract is awarded.
- Key Terms: Usually cover scope of work, period of performance, intellectual property rights, and termination provisions.
- Non-Binding vs. Binding: Some LOAs are non-binding letters of intent, while others create enforceable obligations depending on language.
- Transition: LOAs typically transition into formal subcontracts or teaming agreements upon contract award.
Related Terms
- Teaming Agreement
- Subcontracting Plan
- Memorandum of Understanding (MOU)
- Joint Venture
More Acquisition Terms
A payment method where the government transfers funds electronically to contractor bank accounts.
A 1994 law that simplified federal procurement by raising thresholds, reducing paperwork, and promoting commercial item acquisition.
The predecessor to SAM.gov; the legacy system where federal solicitations were posted (replaced by beta.SAM.gov).
A formal review gate in the acquisition process where senior leadership decides whether a program may proceed to the next phase, requires changes, or should be terminated.
Written narrative responses that describe a candidate or contractor capability in specific areas, historically used in federal hiring and some proposal evaluations.
Goods and services used to maintain, repair, and operate facilities and equipment — a major category of government procurement.
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