GovCon FAQs: Do I need an SBA MPA for a JV?

We at SmallGovCon are excited to announce this first in a new line of blogs we call GovCon FAQs. Our firm handles a wide variety of federal procurement and contract matters, from bid protests, size protests, joint ventures, socio-economic certifications, to everything in between. Often, when talking to blog readers and contractors we hear the same sort of questions pop up. Of course, we can only provide direct legal advice to our clients. But many of these questions hit on issues that face contractors as a whole, or are items that are commonly misunderstood. So, we decided contractors needed an FAQ page for those common general questions. This blog will kick off that FAQ page for contractors. The first big frequently asked question:

Do I need an SBA Mentor-Protege Agreement to form a joint venture and perform on federal contracts as a joint venture?

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Webinar event: The SBA and DoD Mentor-Protégé Programs, December 3, 2024, hosted by Kansas APEX Accelerators

Please join us on December 3, 2024, 9:30-11:30am CST for this webinar event. Touted as a game-changer when it was first introduced in 2016, the U.S. Small Business Administration’s All Small Mentor-Protege Program isn’t new anymore. Known now as simply the SBA Mentor-Protege Program, it is still extremely useful for large and small contractors alike.

Government contracts attorney Gregory Weber and Annie Birney of Koprince McCall Pottroff LLC will explain the ins and outs of the SBA Mentor-Protege Program, covering the program’s eligibility requirements, its potential benefits (including the ability to form special mentor-protege joint ventures), the application process, and common misconceptions and pitfalls. Additionally, Gregory and Annie will provide an introduction to the even older DoD Mentor-Protege Program, which set the stage for the SBA’s program, and compare the two programs. Register here.

SBA Proposed Rule Clarifies Mentor-Protégé Misunderstandings

In August, the Small Business Administration issued a proposed rule that was packed to the brim with changes to many of the SBA’s small business contracting programs. We’ve mentioned a few of the changes in prior blog posts. Gregory Weber, discussed potential changes to the SBA’s 8(a) Business Development Program that may result in more relaxed requirements. While Shane McCall, recently took a deep dive into proposed changes to past performance requirements for joint ventures. Today, we will focus on two additional proposed changes to the SBA’s Small Business Mentor-Protégé Program.

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SBA Getting Strict on MPA Language

One of the most popular programs in small business federal contracting seems to be the SBA’s Mentor-Protege Program. It is generally a great program for small businesses to utilize the resources and knowledge of a larger or more experienced business to grow. In turn, it also gives large businesses the ability to work on small business contracting opportunities, and the Government the ability to contract with more robust teams. Unfortunately, there has been a recent trend of the SBA being somewhat strict on minor language in Mentor-Protege Agreements, possibly stifling participation in the program, or at least making it take longer for SBA to approve these agreements.

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Common Misconceptions: SBA’s Mentor-Protégé Program (Part II – Participation Rules & Limits)

The SBA’s Small Business Mentor-Protégé Program (MPP) is arguably one of the federal government’s most successful undertakings when it comes to supporting our nation’s small business policies, economy, and contracting goals. It fosters the development of small business protégés, allowing many different forms of mentor assistance. It includes opportunity for eligible protégés and their mentors to joint venture (JV) for set-aside contracts—often otherwise off-limits to mentors that don’t qualify for the set-aside status/size standard and/or to protégés incapable of competing for or performing such contracts on their own. MPP JV awards may also incentivize federal government customers—simultaneously getting closer to meeting their set-aside quotas and getting the know-how, qualifications, resources, and personnel of more experienced (typically larger) contractors.

While it’s easy to see why this program enjoys immense popularity amongst small and large businesses alike, confusion consistently shrouds SBA’s MPP, nevertheless (hence the need for a two-parter here). In this article, we’ll skip over the “basics” of SBA’s MPP (which you can read all about here) and instead, jump right into the last few common misconceptions surrounding the program (you can read about the first few in Part I).

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Webinar! Mentor Protégé and Legal Aspects To Be Mindful Of on June 5, 2024

Please join Federal government contracts attorneys John Holtz and Stephanie Ellis for this informative webinar, hosted by the Catalyst Center for Business & Entrepreneurship, on June 5 at 10:00 am CDT.

The SBA’s Mentor Protege Program allows two or more businesses to come together and form a joint venture to bid on small business set-aside government contracts. One of the most advantageous aspects of this program is the ability for a large business to mentor a small business through the use of a joint venture. When a large business mentors a small business, the SBA approved joint venture can obtain and perform small business set-aside contracts despite the size of the large business. Join us as we discuss the recent changes in the SBA’s Mentor Protege Program and explore how you can use this program as a tool for scaling your business (whether large or small). Register here.

GAO Says: SBA’s Rules for Mentor-Protégé Joint Venture Experience Evaluations May Limit Solicitation Terms

Contractors will often enter into mentor protégé relationships and joint ventures to leverage the experience and skills of multiple parties for various reasons. SBA regulations dictate how the capabilities, past performance, and experience of a mentor-protégé joint venture will be evaluated. But at the end of the day, what matters is, whether agencies will follow those regulations in their small business set-aside solicitations and evaluations thereunder. A recent GAO case addressed this issue, providing further guidance on the interplay of solicitation terms for experience evaluations and SBA’s rules for evaluating mentor-protégé joint ventures’ experience.

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