There is an important exception to this general rule: when a mentor and protégé approved by the SBA form a joint venture, the joint venture is eligible for any occasion for which the protégé qualifies himself. In other words, even if it is a large company, a mentor can create a joint venture with his protégé to offer small businesses as long as his protégé qualifies. This is a strong incentive to motivate large companies to participate in the Mentor/Protected program. A joint venture is an association of two or more companies that provide and work together through their joint efforts, real estate, money, skills or knowledge about work (for profits). With respect to small business joint ventures, the proposed rule also conceals a misunderstanding as to when 8 (a) joint ventures must be certified to be able to compete and obtain pro-government contracts. The confusion is largely the result of the language of FAR 52.219-18 (a), The registration of the contest is limited to participants 8 (a) participants who currently plan, in a relevant part, that “[t]he beneficiaries are only requested by small companies expressly certified by the Small Business Administration (SBA) for participation in the SBA`s Program 8 (a) and who, at the time of submitting the offer, meet the following criteria.” (Added highlight) Not surprisingly, the agencies interpreted it to have the effect that 8 (a) joint ventures submitting an offer for a contract 8 (a) must be certified by SBA at the time of submitting their bid for that contract. However, this makes little sense, as 8 (a) joint ventures were created and are not “certified” at the time of the bid. Instead, 8 (a) joint venture agreements must be approved only by the SBA prior to the award of the contract. See 13 CFR 124.503, 13 CFR 124.507. This proposed and necessary amendment is intended to prevent the “poor elimination of 8 (a) joint venture proposals” from being taken into account due to a misunderstanding of eligibility conditions. Nevertheless, we fully expect that 8 (a) JWs will be ready, even after implementation, to inform contract agents of this amendment and to question inappropriate deletions of their proposals through the protest procedure. Federal Procurement Regulations (FAR) recognize two types of team agreements in the public procurement bidding process. One of these is the main relationship between contractors/contractors.
The other is a joint venture. However, it can be difficult to meet the complexity of joint venture requirements. Keep reading for tips on how to avoid compliance issues. A joint venture arrangement does not match every small GovCon. Consider the following factors before deciding what is right for your business: (B) The protégé is small below the size standard for bidding in a joint venture, consisting of a mentor and protégé with an approved tutoring contract as part of an SBA mentor program. The Small Business Administration (SBA) defines a joint venture (JV) as two or more companies that pool their resources – including burden, ownership, money, skills or knowledge – to provide successful and low cost to government agencies and to do for-profit work.