Joint Ventures

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Advantages of the program

The following are some of the advantages of participating in a joint venture:

● Representation of prior performance as a group

● Costs and resources are shared.

● Making use of the experience and market share of the other partner

If the protégé qualifies as a small business, a mentor and his or her protégé can form a joint venture as a small business for any small business contract. The joint venture may also pursue any set-aside contract that the protégé qualifies for, including as contracts for 8(a), service-disabled veteran-owned, woman-owned, and HUBZone firms.

You must fulfill the requirements for getting an exclusion of affiliation for contracting purposes in order for your joint venture to be eligible to compete on contracts designated for small enterprises.

How do you start a joint venture?

Your JV agreement must be written and adhere to SBA guidelines.

In the System for Award Management, the joint venture must be designated by its own name, DUNS number, and CAGE number (SAM). Designate the company type as a joint venture in SAM, with the immediate owners designated as individual partners. Before a mentor and its protégé make a bid for a small company contract as a joint venture, the mentor-protégé agreement must be authorized to get an exclusion from affiliation.

Mppjvreporting@sba.gov should also receive the certificate. The protégé must present the SBA and the contracting officer with a joint venture compliance certificate.

Joint-venture regulations

Joint ventures are subject to the following rules:

Subcontracting Restrictions:

● The small company concern must agree to the following subcontractor limits for the various contract types as the joint venture prime of either a full or partial set-aside contract:

● Pay no more than half of what the government pays non-similarly positioned companies for service contracts.

● Pay no more than half of what the government pays non-similarly positioned companies for supply or product contracts.

● Pay no more than 85% of the sum paid by the government for building contracts to non-similarly positioned companies.

● Pay no more than 75% of the amount paid by the government for special trade contracts to non-similarly situated companies.

Work Productivity:

At least 40% of the joint venture's labor must be performed by the protégé. The protégé will complete 20% of the contract If the joint venture and the protégé meet the minimum work share criteria. However, 40 percent of the contract's earnings must be allotted to the protégé in order to determine the protégé's size.

The joint venture must provide yearly evaluation reports, annual performance-of-work statements, and project-end performance-of-work statements to the SBA and contracting agencies, detailing how each contract's work is being completed. Annual assessments are required 30 days after your welcome letter's anniversary date. Annual reports and project-end reports are due 45 days after the end of each operational year and 90 days after the contract is completed, respectively. It's worth noting that the protégé is in charge of reporting the evaluation under its DUNS number. In 13 CFR 125.8 and 13 CFR 125.9, the requirements regulating joint ventures created under the SBA MPP are detailed.