SBA has issued a final rule that should help small businesses demonstrate their past performance more easily. Perhaps most importantly, the rule will allow for a small business to receive a written performance record, similar to CPARS, showing its performance as a subcontractor to a large business prime. The new rule will also allow a small business to better utilize its past performance that it carried out as a member of a joint venture.
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Back to Basics: Joint Ventures
Many of our readers are familiar with a number of the nuances of joint ventures. In fact, in the past few years, many of you have utilized this nifty little concept! That said, for those of you newer to the government contracting business (and as a refresher for those who have been in this for a while), here is a short rundown of the basics of joint ventures in government contracting.
Continue readingThe SBA Proposes New Rules to Help Small Businesses in Obtaining Past Performance
The SBA proposes to amend its regulations to implement new provisions of the National Defense Authorization Act (NDAA) for fiscal year 2021 that provides small business contractors with new tools to establish past performance when bidding on prime contracts for Government procurements. The proposed rules would add two new methods for small businesses to obtain qualifying past performance. One proposed rule would allow a small business with no relevant past performance of its own to use the past performance of a joint venture in which it took part. The second proposed rule would require prime contractors to provide, to small businesses that served as a first-tier subcontractor, a record of the business’s past performance for use by the small business in future proposals.
The proposed rules are here.
Continue readingPicking Your Team: Joint Ventures Versus Prime/Subcontractor Teams (Part Two, Past Performance)
Federal contractors often ask: “Is it better to team up for government work with a prime-sub arrangement or with a joint venture?” Well, (spoiler alert) the answer is: it depends. But I won’t leave you with just that. This three-part series will provide insight on some of the major differences between these two types of “teams” that offerors should consider when making the decision between a joint venture or prime/subcontractor team in competing for and performing federal contracts. While this series will not provide a comprehensive list of all the differences between these two types of teams, it will cover some of the big ones that seem to come up more frequently in this decision-making process. The focus of the first article in this three-part series was work share considerations. This second article will focus on evaluations of a team’s past performance.
Continue readingCIO-SP4: Large Mentors Now Get More Credit
I wrote earlier about the restriction on the number of experience examples a large business mentor can provide. Well, NITAAC has listened! OK, they probably weren’t listening directly to me, but let me have this one, alright. CIO-SP4 has been amended to allow large business mentors to contribute two examples of corporate experience per task area.
Continue readingCIO-SP4: Is it Limiting Mentor Experience Too Much?
The CIO-SP4 is a big deal for many small and large federal contractors. And lately it’s been a bit of a moving target as to how NITAAC will evaluate the experience of companies working together in prime-sub, mentor-protégé, and joint-venture relationships. We wrote about some of the issues with past performance and other recent changes. One change that caught my eye puts a restriction on the number of experience examples a large business mentor can provide. But should it?
Continue readingFive Things You Should Know: Past Performance of Subcontractors, Joint Venture Partners, and Affiliates
The government’s hard shift away from lowest-price, technically acceptable evaluations has magnified the importance of past performance in many competitive acquisitions. For start-ups and other companies new to the federal marketplace, past performance requirements can present a significant barrier to success.
Oftentimes, companies with little or no past performance of their own can offer the past performance of another entity, such as a subcontractor or joint venture partner. But the rules surrounding the use of another entity’s past performance are often misunderstood–and recently, the rules have evolved quickly.
Here are five things you should know about using the past performance of a subcontractor, joint venture partner, or affiliate.
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