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.
Small businesses will be able to joint venture with one another more often under a new SBA rule.
As part of a recent major rulemaking, the SBA will allow two or more small businesses to joint venture for any procurement without being affiliated with regard to the performance of that requirement.
The SBA’s Utah District Office has imposed tough new restrictions on the approval of 8(a) mentor-protege agreements and joint ventures.
The Utah SBA obviously hopes that these restrictions will lead to more successful 8(a) mentor-protege and joint venture relationships–but I worry that these District-specific restrictions may backfire, and put Utah 8(a)s at a significant competitive disadvantage against 8(a)s serviced by other SBA District Offices.
Before an agency can award an 8(a) contract, the prospective awardee must first be deemed eligible for award under the 8(a) business development program criteria by the Small Business Administration. The SBA has a tight deadline to make this determination—a mere five days.
But what happens when the SBA’s eligibility evaluation is more complicated than a determination of whether the awardee meets the program’s basic eligibility requirements? The GAO recently addressed this issue in FedServ-RBS JV, LLC, B-411790 (Oct. 26, 2015), where the GAO held that the applicable regulations do not require the agency to stay its proposed award beyond five days pending the SBA’s approval of an 8(a) joint venture agreement. Continue reading
Teaming and joint venturing are essential components of success for many small government contractors, and the emphasis on teaming is increasing in light of the SBA’s proposed rule allowing “similarly situated entities” to join together to pursue prime contracts. But teaming and joint venturing are not without risks–there are many unique rules that must be followed, and many pitfalls for the unwary.
That is why I am very pleased to announced that I am joining with the Government Contractors Resource Network to present a three-part webinar series on compliant and effective teaming. Directed at small contractors, this series will begin with an overview of the rules and regulations governing teaming. The series will continue with a discussion of how to prepare effective and compliant teaming agreements, subcontracts, and joint venture agreements. The series will wrap up with an in-depth discussion of federal mentor-protege programs, including the SBA’s new proposed “universal” mentor-protege program.
The first webinar will broadcast on June 19, and the others will follow on June 23 and 25. To register, or for more information, visit the GCRN website. I hope to see you (virtually, anyway) this summer.
The SBA has proposed major changes to rules governing joint venturing for set-aside contracts.
As part of a proposed rule released last week, the SBA proposes to eliminate so-called “populated” joint ventures, and proposes additional changes regarding joint venture certifications, performance of work reports, and more.
For a member of a joint venture to file a GAO bid protest on behalf of the joint venture, the member must have the authority to do so. If a JV Member’s authority to act is in question, the GAO will dismiss the protest for lack of standing.
In a recent decision, the GAO dismissed a bid protest filed by a joint venture member because the other joint venture member disputed the protester’s right to act on the joint venture’s behalf.