A common path for many federal contractors to bid on and perform a federal contract is through a joint venture (“JV”). Utilizing a JV can provide some great opportunities for two (or sometimes more) businesses to share resources and boost each others’ performance on a contract. Additionally, it can be a great tool for contractors to utilize both JV partners’ experience and to jointly gain more experience. There are even widespread SBA regulations requiring agencies to “consider” both JV partners’ experience in an evaluation. However, there has still been quite a bit of back and forth regarding how agencies are supposed to evaluate a JV’s experience, and specifically what it means to “consider” each JV partners’ individual experience, particularly in situations where only one JV partner submits the experience. In May of 2023, GAO issued a decision that provided at least some clarification on how an agency should consider each JV partner’s experience, and the impact of not doing so.
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SBA Revisions to the “Two-Year Rule” for Joint Ventures: a Reminder to Read the Entire Rule
SBA recently revised its affiliation regulations in a number of ways, some of which we have already discussed here. We have likely sounded pretty upbeat about most of SBA’s recent updates thus far, as the majority do seem to be a step in the right direction–adding clarity to SBA’s rules and furthering the policies SBA seeks to enforce. Well, not trying to rain on any parades here, but at least one of SBA’s recent regulatory updates, (at least in our humble opinion) has the potential to confuse federal contractors regarding SBA’s affiliation rules. That update revised the language in SBA’s “Two-Year Rule” for small business joint ventures–though, it really didn’t change the substance or effect of the rule, at all. Let’s take a closer look.
Continue readingOHA: Ill-Defined Joint Venture Agreement and State Law Requirements Means JV was Invalid
As readers of SmallGovCon know, SBA interprets its small business joint venture rules very strictly. A small business joint venture must follow all of SBA’s requirements down to the letter, or risk being found noncompliant. In a recent case, SBA’s Office of Hearings and Appeals (OHA) examined how a joint venture was managed under the state law of Michigan and found that the joint venture was noncompliant with small business rules.
Continue readingSBA Final Rule Relaxes Change of 8(a) Program Ownership, Allows Limited Populated Joint Ventures
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 readingKoprince McCall Pottroff LLC’s New Joint Venture Handbook Is Now Available!
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.
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SBA Proposed Rule Relaxes Change of 8(a) Program Ownership, Allows Limited Populated Joint Ventures
The SBA has issued new proposed rules relating to the 8(a) Program. The rules clarify some aspects of ownership and control requirements for the 8(a) Program, including making change of ownership a little easier and cleaning up some 8(a) set-aside processes. The rule would also allow for populated joint ventures between similarly situated joint venture members.
Continue readingNew GovCon Handbook Arriving Soon! Joint Ventures–Updated Edition
We are pleased to announce that, back by popular demand, our updated Koprince McCall Pottroff LLC GovCon Handbook, on Joint Ventures, is coming soon! 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 will be published through Amazon in the coming weeks. We’ll provide more updates soon on the publication date and how to reserve an advance copy.
The Joint Venture Handbook is one of our most requested–for good reason. Joint ventures are a powerful tool for small businesses to partner with other companies and enhance their chances of success on federal contracts. But there are a lot of SBA-required components–miss one, and your joint venture might lose out an award.
That’s why the Joint Venture Handbook provides a step-by-step, easy-to-understand method for working through the SBA joint venture process. Stay tuned to SmallGovCon and social media to be updated when the Joint Venture Handbook becomes available.
Looking for the latest government contracting legal news? Sign up here for our free monthly newsletter, and follow us on LinkedIn, Twitter and Facebook.