Joint ventures are quite popular in federal contracting. And for good reason. Joint ventures allow contractors to team up to pursue and perform federal set-aside contracts and subcontracts–combining their past performance, experience, and capabilities and sharing their costs and resources. They allow contractors that are not quite ready or capable to take on a full federal project solo to gain such experience and establish that direct client relationship as sort of a “co-prime.” They also offer the government-client a two-for-one package that still “checks the boxes” for set-aside work–that is, if they are formed and utilized in a manner compliant with the rules. This blog provides the step-by-step process of forming a joint venture (don’t forget to brush up on the basics of joint ventures here for more on the benefits, the agreement itself, and the performance requirements).
Continue readingTag Archives: JV
GAO Sides with VA, Joint Venture Must Be SDVOSB Eligible at Time of Award
Here at SmallGovCon, we spend a lot of time studying (and talking about) the various small business federal set-aside programs. As a result, a lot of our focus is dedicated to SBA’s regulations governing these programs—after all, it is the agency that was created by the Small Business Act to issue and implement precisely these regulations. So, it may be tempting for small business federal contractors to focus on those SBA rules and think, so long as they have complied with all the nuances they contain, their business is eligible for these sorts of set-aside contracts.
As one joint venture recently found out the hard way, however, other agencies have their own unique sets of regulations that can impact set-aside contracts as well. One such agency is the Department of Veterans Affairs (VA), which has its own body of rules governing VA procurements—the Veterans Affairs Acquisition Regulation (“VAAR”). One of the programs that the VA implements is the Veterans First Contracting Program (“Vets First”), which interacts quite a bit with SBA’s SDVOSB program. As a result of the overlap, potential offerors on VA contracts set aside for SDVOSBs must ensure they comply with both VA and SDVOSB regulations, and this is where the protester in Potomac Valor Healthcare-2, LLC, B-423195.2 (Aug. 12, 2026) ran into trouble. GAO’s decision in the case sheds some light on the way VA’s specific requirements create additional obligations for SDVOSB joint ventures, and serves as a cautionary tale to other prospective offerors who may find themselves in a similar situation. In short, the protester was SDVOSB compliant and registered in VetCert at the time of offer, but erroneously believed that it did not have to maintain that same level of compliance at the time of award. GAO found that, as the SDVOSB partner of the joint venture was no longer small at the time of award (a fact reflected in VetCert), the JV could not receive the award.
Continue readingGAO: Forgotten Certification Dooms JV Award
Forming a small business joint venture and utilizing it for federal contracts can at times be quite tedious. Often businesses can feel intimidated by the various required joint venture agreement terms in the SBA’s joint venture regulations and the reporting requirements placed on joint ventures. But complying with the SBA’s joint venture regulations can make or break a contract award, especially if the regulations are made a material requirement of a solicitation. The GAO recently issued an opinion which should serve as a warning to all small business joint ventures to make sure to follow all SBA joint venture regulations when bidding on a contract award or potentially risk the award itself.
Continue readingGovConFAQ: How Do I Count My Joint Venture’s Receipts When Determining My Size?
Joint ventures are an increasingly common teaming structure in small business federal government contracting. They offer small businesses (and even some SBA-approved large business mentors) the opportunity to perform set-aside contracts as part of a team allowed to leverage the size and status(es) of its managing venturer. But with their growing popularity and obvious appeal amongst the small business community comes the often-asked question of how to calculate a joint venture’s receipts towards its venturers’ sizes. This GovConFAQ provides the answer.
Continue readingGovCon FAQs: How Can I Maximize My Teammates’ Participation in Performing Larger Government Contracts?
Most federal contractors are well-aware of the potential benefits of using one of the FAR-prescribed teaming options to perform government contracts. But one question we get a lot from small business federal contractors is how to most effectively utilize those teaming options (i.e., how to maximize team participation) on larger government contracts within the bounds and limitations of the law. And luckily, we’ve got a formula for that.
Continue readingSBA 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 reading