Tag Archives: joint venture rules

SBA OHA: On Second Thought, Managing Venturer Must Still be in Charge of JV

Posted on by

A few months back, we discussed a case at SBA’s Office of Hearings and Appeals that took a closer look at the actions that a Non-Managing Venturer in a small business joint venture is permitted to have negative control over—that is, those actions which the Non-Managing Venturer’s disapproval can block from happening. It also addressed what happens when a joint venture agreement does not include all of the provisions that the SBA rules require for a mentor-protégé joint venture agreement under the SBA’s Mentor-Protégé Program to avoid affiliation. Following that decision, the matter was brought to the Court of Federal Claims. Below, we discuss Multimedia Environmental Compliance Group JV v. United States, 178 Fed. Cl. 129 (2025) which covers the COFC’s review of the OHA decision. 

That case reaffirmed that just having required control language in a JV isn’t enough, other provisions in the JVA cannot give inordinate control to the Non-Managing Venturer.

Continue reading →

GovCon FAQs: It’s Been Two Years–Has My Joint Venture Reached the End of the Road?

Posted on by

The lifespan of a joint venture is a frequently asked question that can be hard to find in SBA’s regulations if you don’t know where to look. Alternatively, people hear about the “two-year rule” and assume that’s the answer. This question comes up frequently because, like many topics in federal contracting, the answer requires some digging into the regulations and specifically the affiliation rules.   

Continue reading →

GovCon FAQs: How Should a Joint Venture Allocate Profits?

Posted on by

It is a fairly standard business practice to divide profits according to ownership ratio. And a joint venture made up of only small business venturers only pursuing small business set-asides can follow this business practice—or any business practice—to divide up its profits (limited only by any applicable state, local, or Tribal law). But SBA does have specific and strict requirements for allocating the profits of any joint venture (1) between a small business protégé and its SBA-approved large business mentor, and (2) that qualifies for and pursues socioeconomic set-asides (i.e., 8(a) Program, WOSB/EDWOSB, HUBZone, VOSB/SDVOSB) and includes non-similarly situated entities.

Continue reading →

Webinar! Joint Venture and Teaming, July 9, 2024, 10:00-11:30am MDT

Posted on by

Please join John Holtz and me, for this informative webinar hosted by Texas El Paso APEX Accelerators as we discuss joint venture agreements and teaming. For large and small contractors alike, teaming agreements and joint venture agreements can be essential to winning and successfully performing federal government contracts. In this presentation, we will explain how to develop, negotiate and administer agreements that are both compliant and effective. The presentations will cover both the key rules (such as flow-downs and ostensible subcontractor affiliation) and best practices for agreements that go beyond the bare minimum legal requirements. Register here.

OHA: JV Violates Two-Year Rule, Loses Award

Posted on by

The joint venture two-year rule always generates a lot of questions. But it’s an important one for small business joint venture members to understand and comply with. A recent decision from the Small Business Administration Office of Hearings and Appeals (OHA) shows why. In the case, a joint venture lost an award because it violated the two-year rule.

Continue reading →

SBA Final Rule Relaxes Change of 8(a) Program Ownership, Allows Limited Populated Joint Ventures

Posted on by

SBA has issued a final rule updating some of its rules relating to the 8(a) Program. The final rule will have an impact on some aspects of ownership and control requirements for the 8(a) Program, including providing some flexibility for change of ownership and making some 8(a) set-aside processes a little cleaner. The rule would also allow for populated joint ventures between similarly situated joint venture members.

We wrote about the proposed rule last year. Below are some of the key takeaways from the final rule and any changes from the proposed rule.

Continue reading →

Koprince McCall Pottroff LLC’s New Joint Venture Handbook Is Now Available!

Posted on by

We are pleased to announce that our updated Koprince McCall Pottroff LLC GovCon Handbook, on Joint Ventures, is now available! This handbook–complete with all of the SBA’s important changes from the past couple years–was co-authored by me and Nicole Pottroff as well as firm founder Steven Koprince. It is now available through Amazon at this link.

The Joint Venture Handbook is one of our most popular. Joint ventures are a great way for small businesses to partner with other companies and get a competitive edge on federal contracts. But there are many SBA-required components, and SBA is strict in reviewing those compenents.

That’s why the Joint Venture Handbook provides a step-by-step, easy-to-understand method for working through the SBA joint venture process. We hope you find it informative.

Looking for the latest government contracting legal news? Sign up here for our free monthly newsletter, and follow us on LinkedIn, Twitter and Facebook.