SBA’s Change to Joint Venture Bank Account Rule is Another Trap for the Unwary

If you are part of a joint venture between a small protege and its large mentor under the SBA’s Mentor-Protege Program, heads up: the SBA recently amended its list of mandatory requirements for joint venture agreements to cover what happens to funds left over in the joint venture bank account at the end of a project.

Like the revised recordkeeping rules I discussed in an earlier post, the new required provision only applies to mentor-protege joint ventures pursuing small business set-aside contracts–not to JVs seeking 8(a), SDVOSB/VOSB, WOSB/EDWOSB or HUBZone work. Confusingly (and again, like the recordkeeping rules), SBA’s decision to change only the small business set-aside regulation, 13 C.F.R 125.8, means that the same joint venture agreement may not be valid for both small business set-aside contracts and socioeconomic contracts.

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Small GovCon Week in Review: March 15-19

March Madness begins today and as residents of a city where basketball reigns supreme (Lawrence, Kansas) I can tell you that we are all beyond excited about the NCAA tournament. We have our brackets completed and locked in so let the games begin!

We are also seeing signs of Spring as the temperatures are warming, the rain is falling and the plants are starting to look green and bright after a long, cold winter. It’s a season of change which is also true in the world of government contracting with the announcement of a new SBA Administrator. Here are some highlights from this week.

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Event: Winning Relationships: Best Practices for Teaming, Mentor-Protégé & Joint Venture Agreements

You won’t want to miss this free event on Thursday, March 25, 2-4:00pm EDT, hosted by Michelle Gardner-Ince, Director of the Women-Owned Veteran Small Business Initiative (WVOSBI). This session will include a panel discussion by seasoned legal and successful business professionals Jackie Lopez, Sharon Athas Cote, John Devore, and our very own Koprince Law LLC, Managing Partner, Shane McCall.

This panel discussion will allow women business owners the opportunity to address operational, relational and legal best practices in the areas of teaming, mentor-protégé and joint venture agreements as well as proven recommendations for addressing some of the most pervasive problems in developing these types of agreements.

You are invited to join the discussion by registering here.

Event: Special Two-Session 8(a) Course with Jackie Robinson-Burnette

Mention Jackie Robinson-Burnette to anyone who participated in the 8(a) Program between 2014 and 2017, and you’re sure to get a big smile. As the SBA’s Associate Administrator of 8(a) Business Development, and then the Deputy Associate Administrator for Government Contracting and Business Development, Ms. Robinson-Burnette quickly became well-known for working tirelessly on behalf of small businesses, assisting them with a rare blend of knowledge, savvy and empathy.

That is why I am so excited to announce that on April 27 and 28 I will be co-hosting a very special two-day Govology course on the 8(a) Program with the one and only Jackie Robinson-Burnette! Don’t miss this unique chance to learn about 8(a) eligibility, certification growth strategies. To sign up, just click here. See you in April!

GAO: No SBA Certificate of Competency Review Needed for Failure to Adequately Explain Technical Approach

For small businesses, the SBA’s Certificate of Competency process can offer a powerful “second bite at the apple,” essentially allowing a small business to appeal to the SBA if a procuring agency finds the small business non-responsible.

But the SBA CoC process is limited to findings of non-responsibility under FAR Part 9. As GAO recently held, there is no right to appeal to SBA if the proposal was rejected for failing to adequately explain the small business’s technical approach.

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Koprince Law Discusses Teaming for Federal Contractors on Contracting Officer Podcast

I’m excited to announce that I am featured on the Contracting Officer Podcast, hosted by Kevin Jans and Paul Schauer! The episode is available here (Apple podcast here) and, in it, I discuss three common forms of contractor relationships: Teaming Agreements, Joint Venture Agreements, and the federal Mentor-Protégé Program. Be sure to check out this episode and the plethora of other podcast topics, helpful to both beginning and experienced federal contractors.