Tag Archives: 8(a) joint ventures

8(a) Mentor-Protege JVs: Faulty JV Agreement Results In Affiliation

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An 8(a) program protege was deemed affiliated with its mentor–and ineligible for a small business set-aside contract–because the joint venture agreement between the mentor and protege failed to comply with certain mandatory 8(a) joint venture requirements.

In a recent decision, the SBA Office of Hearings and Appeals concluded that an 8(a) mentor-protege joint venture was not entitled to take advantage of the special exception from affiliation because of the flaws in its joint venture agreement.  OHA’s decision is an important reminder to 8(a) mentors and proteges of the critical importance of strictly complying with the 8(a) joint venture regulation.

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Forming Eight JVs Did Not Create Affiliation Between JV Members

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An 8(a) protege and its mentor were not affiliated with one another, despite forming eight joint ventures over a four-year period–and winning 15 contracts with those joint ventures.

In a recent size appeal case, the SBA Office of Hearings and Appeals upheld the decision of the SBA Area Office, which found that the mentor and protege were not affiliated despite their substantial history of joint venturing.

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8(a) Joint Ventures: SBA Approval Not Required At Proposal Submission

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A joint venture may be awarded an 8(a) set-aside contract so long as the SBA approves the joint venture before award.

In a recent GAO bid protest decision, a procuring agency rejected a joint venture’s proposal for an 8(a) set-aside contract because the joint venture had not been approved by the SBA as of the date of proposal submission.  The GAO–relying in part on input from the SBA–held that the rejection was improper.

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SBA OHA: 8(a) Mentor-Protege JV Affiliation Exception Applies To Non-8(a) Contracts

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The SBA 8(a) mentor-protege joint venture exception from affiliation applies to non-8(a) contracts, so long as the joint venture meets the 8(a) regulatory requirements.

In a recent size appeal decision, the SBA Office of Hearings and Appeals held that the SBA Area Office erred by deeming a mentor and its protege affiliated for purposes of a non-8(a) contract, without considering whether the joint venture qualified for the mentor-protege exception to the ordinary SBA affiliation rules.

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8(a) Joint Ventures Are Not 8(a) Program Participants, Says SBA OHA

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8(a) joint ventures are not 8(a) program participants, according to a recent (and commonsense) decision of the SBA Office of Hearings and Appeals.

In its decision, SBA rejected a joint venture’s argument that its 8(a) joint venture agreement was essentially an 8(a) program application, drawing a jurisdictional decision between 8(a) program certification and 8(a) joint venture agreement approval.

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