The SBA’s new rule on Consolidation of Mentor-Protégé Programs contained a lot of updates. One of those concerned the level of control that a lead joint venture member has to have over a joint venture.
In particular, SBA now says that the lead venturer doesn’t have to have unequivocal control as the Office of Hearings and Appeals had suggested in the past. The other joint venture partners can have some say in the joint venture, but how much?
Joint ventures and small business subcontracting are two issues near and dear to the hearts of many small business federal contractors. Well, the Federal Acquisition Regulation will soon be updated with respect to both of these topics. The new rules will align with SBA’s rules and remove any inconsistencies. Let’s dive in!
What happens when an SBA area office finds a joint venture compliant with SBA rules in a size protest, but SBA’s Office of Hearings and Appeals says the same agreement fails to meet requirements in a status protest? Let’s find out.
The SBA recently proposed a rule that would amend the infamous three-in-two (AKA 3-in-2) rule for joint ventures. SBA’s current regulations provide that a joint venture can be awarded no more than three contracts over a two-year period.
While SBA plans to keep the two-year lifespan for joint venture awards, it plans to get rid of the three contract maximum.
In the age of consolidated contracts and increased competition, small business federal contractors are searching for a way to improve their odds of winning the next opportunity. One of the most important tools for doing so is to form a joint venture.
Here are five things you should know about small business joint ventures:
SBA regulations say that size is determined as of the date an offeror submits its initial proposal, with price. On its face, this rule seems pretty straight forward. But what happens if the initial proposal was filed six years ago? And what if the joint venture that submitted the proposal has since expired?
Following OHA’s recent logic, the proposal-date rule stands even in these unique circumstances.
Updating your joint venture agreement is essential to maintaining compliance with SBA’s regulations and failing to update could cost you contracts.
In Stacqme, LLC, SBA No. SIZ-5976 (Dec. 10, 2018), the SBA Office of Hearings and Appeals held that a mentor-protege joint venture’s failure to update its JV agreement caused the agreement to be non-compliant with the SBA’s rules, and meant that the joint venture was ineligible for an SDVOSB set-aside contract.