Memorandum of Understanding(MOU)
A non-binding agreement between parties that outlines intentions, roles, and expectations for collaboration or coordination.
Overview
A Memorandum of Understanding (MOU) is a written document that expresses the parties' intent to cooperate or coordinate on a matter. Unlike a contract, an MOU typically does not create legally binding obligations — it establishes a framework for future agreements or joint efforts. Agencies use MOUs to formalize interagency agreements, partnerships with industry, or cross-border arrangements.
Why It Matters in GovCon
MOUs often precede formal contracts. A contractor may sign an MOU with an agency to explore a technology partnership, pilot program, or joint venture. Understanding that MOUs are generally non-binding helps contractors manage expectations and negotiate language that protects their interests without over-committing.
Key Details
- Non-Binding: Unless explicitly stated otherwise, MOUs express intent, not enforceable promises.
- Scope: Often used for information sharing, pilot projects, or coordination of resources.
- Follow-On Contracts: Successful MOU collaboration can lead to sole-source or competitive follow-on awards.
- Distinct from MOA: A Memorandum of Agreement (MOA) may be used when more formal commitment is intended.
Related Terms
- Teaming Agreement
- Memorandum of Agreement (MOA)
- Interagency Agreement
- Other Transaction (OT)
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