Check Your Joint Venture Agreements: Under-the-Radar SBA Change Could Cause Problems

Joint ventures operating under the SBA’s All Small Mentor-Protege Program may need to adjust their joint venture agreements because of a little-noticed change to SBA’s joint venture rules.

In its recent final rule, effective November 16, SBA amended two of the mandatory requirements for mentor-protege joint ventures pursuing small business set-aside contracts. SBA did not make corresponding changes to the joint venture rules for SBA’s four major socioeconomic programs–meaning that a joint venture agreement that complies with the small business set-aside rules may not be valid if the joint venture pursues 8(a), SDVOSB/VOSB, HUBZone or WOSB/EDWOSB contracts (and vice versa).

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SBA Proposes to Eliminate Some 8(a) Joint Venture Agreement Approval Requirements

Recently, the SBA proposed big changes for its small business regulations, including some aspects of the 8(a) Program.

This post is Part 4 in our coverage of these proposed SBA changes and will cover the SBA’s potential changes to the joint venture agreement approval process for 8(a) contracts (here are part 1, part 2, and part 3 of our coverage).

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Populated or Unpopulated? Ambiguous JV Agreement Sinks 8(a) Award

An 8(a) joint venture agreement was ambiguous about whether the joint venturers intended to create a populated joint venture (which is no longer allowed) or an unpopulated joint venture–and the ambiguity cost the joint venture an 8(a) set-aside contract.

In a recent decision, the U.S. Court of Federal Claims upheld the SBA’s decision to reject a joint venture agreement that was ambiguous about whether the joint venture was populated or unpopulated.

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DoD Mentor-Protege Program: Major Changes Finalized

The DoD has issued a final rule making major changes in the DoD “Pilot” Mentor-Protege Program.  The rule took effect on March 23, 2018.

Among the major changes, DoD has both expanded and contracted the universe of potential proteges–and has included a mandatory certification that seems to completely misunderstand the SBA’s joint venture rules and processes.

Here is my take on the good, the bad, and the ugly from the final rule.

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5 Things You Should Know: SBA’s 8(a) Business Development Program (The Basics)

If you’re a small business owner interested in government contracts, you’ve probably heard about the SBA’s 8(a) Business Development Program. The 8(a) Program itself is complex, but its potential benefits are tremendous. In this post, I’ll break down some of the very basics about the 8(a) Program, leaving some of its complexities for upcoming posts.

Let’s get to it: here are five things you should know about the 8(a) Program.

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GovCon Voices: Getting Your Joint Venture Ready In Time For The Next Big Opportunity

Joint ventures can be extremely powerful in helping small businesses capture larger government contracts. Yet, few small businesses know how they work, and even fewer understand the critical timeline and milestones required to have everything in place in time to capture those large opportunities.

In this article, we will discuss why understanding the timeline is so important if you want to leverage your JV for a big win.

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8(a) Protege Not Entitled To Mentor-Protege JV’s Past Performance

A former 8(a) protege was not automatically entitled to take advantage of the past performance it obtained as part of a mentor-protege joint venture, in a case where the former mentor would not be involved in the new contract.

In a recent bid protest decision, the GAO held that a procuring agency erred by crediting the protege with the joint venture’s past performance without considering the extent to which that past performance relied on the mentor–and the extent to which the mentor’s absence under the new solicitation might impact the relevance of the past performance as applied to the new work.

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