SBA Corrects Profit-Splitting Flaw In New Joint Venture Regulations

The SBA has corrected a flaw in the profit-splitting provisions of its new joint venture regulations.

Under the corrected regulations, which became effective on December 27, all of the SBA’s joint venture regulations–those for small businesses, SDVOSBs, HUBZones, 8(a)s, and WOSBs–will require that each joint venturer receive profits commensurate with the work it performs.  The SBA’s revisions clear up an inconsistency between the 8(a) joint venture regulations and the regulations for the SBA’s other set-aside programs, and eliminates a potential disincentive for joint venturers to avail themselves of the protections of a formal legal entity such as a limited liability company.

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DOL Offers “Fair Pay” Preassessment–But Will Contractors Use It Willingly?

The Department of Labor has announced a new “preassessment” initiative, under which a government contract can voluntarily ask the DOL for an assessment of the contractor’s record of labor law compliance.

The preassessment program is designed to help contractors discover if they may have any trouble with their mandatory disclosures under the new Fair Pay and Safe Workplaces Executive Order, which will take effect beginning on October 25. Voluntary use of the preassessment program may be a good idea for any contractor with a history of labor issues, but I wonder what will be more likely–contractors choosing to use it on their own, or being pushed to use it by prospective teammates?

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GAO Finds Offeror’s Protest of OCI Exclusion Untimely

To be timely, a GAO bid protest challenging the terms of the solicitation must be filed no later than the proposal submission deadline.

A recent GAO decision affirmed that, at least in some cases, this deadline applies to an offeror’s elimination from competition based on an organizational conflict of interest. Because the offeror knew of its potential conflict and the agency’s position on its eligibility before its proposal was submitted, its post-evaluation protest was untimely. GAO dismissed its protest.

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Unapproved Addendum Sinks 8(a) Joint Venture’s Bid

An 8(a) joint venture failed to obtain SBA’s approval of an addendum to its joint venture agreement—and the lack of SBA approval cost the joint venture an 8(a) contract.

In Alutiiq-Banner Joint Venture, B-412952 et al. (July 15, 2016), GAO sustained a protest challenging an 8(a) joint venture’s eligibility for award where that joint venture had not previously sought (or received) SBA’s approval for an addendum to its joint venture agreement.

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SDVOSB Joint Ventures: SBA Overhauls Requirements

SDVOSB joint venture agreements will be required to look quite different after August 24, 2016.  That’s when a new SBA regulation takes effect–and the new regulation overhauls (and expands upon) the required provisions for SDVOSB joint venture agreements.

The changes made by this proposed rule will affect joint ventures’ eligibility for SDVOSB contracts.  It will be imperative that SDVOSBs understand that their old “template” JV agreements will be non-compliant after August 24, and that SDVOSBs and their joint venture partners carefully ensure that their subsequent joint venture agreements comply with all of the new requirements.

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Bye-Bye, Populated Joint Ventures: SBA Rule Change Mandates Unpopulated JVs

Populated joint ventures (or at least most populated JVs) will no longer be permitted in the SBA’s small business programs, under a new regulation set to take effect on August 24, 2016.

The SBA’s major new rule, officially issued today in the Federal Register, will be best known for implementing the long-awaited small business mentor-protege program.  But the rule also makes many other important changes to the SBA’s small business programs, including the elimination of populated joint ventures.

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SBA Finalizes “Universal” Small Business Mentor-Protege Program

The SBA has finalized its “universal” mentor-protege program for all small businesses.

In a final rule scheduled to be published in the Federal Register on July 25, 2016, the SBA provides the framework for what may be one of the most important small business programs of the last decade–one that will allow all small businesses to obtain developmental assistance from larger mentors, and form joint ventures with those mentors to pursue set-aside contracts.

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