Tag Archives: joint venture agreements

GAO: SBA’s Five-Day 8(a) Eligibility Deadline Applies To JVs

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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 →

Compliant, Winning Teams: A Three-Part Webinar

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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.

Joint Ventures: SBA Proposes Major Changes

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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.

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Joint Ventures And GAO Protests: Protester Must Have “Standing”

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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.

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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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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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Thank You, Texas!

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I am back in Lawrence after a trip to the Lone Star State, where I spoke at the Fort Bliss Regional Contracting Industry Day.  My presentation, “The Legal Benefits and Pitfalls of Teaming Arrangements” focused on the upsides and potential drawbacks of teaming and joint venturing on federal set-aside contracts.

A big “thank you” to Joe Conway and the team at the El Paso Community College Contract Opportunities Center for hosting this outstanding event.  And of course, extra thanks to all the government employees, large businesses, and small business owners who attended.

If you weren’t able to make it to the Fort Bliss Regional Contracting Industry Day, you don’t have to be left out.  Just contact me and I would be happy to provide you with a copy of the presentation.