SBA Revises 8(a) JV Regulation–But Confusion Remains

Stating that populated joint ventures have now been eliminated, the SBA has revised its 8(a) joint venture regulations to reflect that change.

In a technical correction published today in the Federal Register, the SBA flatly states that an earlier major rulemaking eliminated populated joint venture, and tweaks the profit-sharing piece of its 8(a) joint venture regulation to remove an outdated reference to populated joint ventures.  But even following this technical correction, there are three important points of potential confusion that remain (at least in my mind) regarding the SBA’s new joint venture regulations.

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SDVOSB Updates: Free Webinar August 4, 2016

It’s been a year of big changes in the government’s SDVOSB programs.  First came the Kingdomware Supreme Court decision, which was soon followed by the SBA’s final rule adopting a new “universal” mentor-protege program–and imposing many new requirements on SDVOSB joint ventures.

On Thursday, August 4, 2016 at 1:00 p.m. Central, I will host a free webinar to discuss these important changes.  To register, just follow this link and complete the brief electronic form, or call Jen Catloth of Koprince Law LLC at (785) 200-8919.

See you online on Thursday!

SDVOSB Joint Ventures: SBA Overhauls Requirements

SDVOSB joint venture agreements will be required to look quite different after August 24, 2016.  That’s when a new SBA regulation takes effect–and the new regulation overhauls (and expands upon) the required provisions for SDVOSB joint venture agreements.

The changes made by this proposed rule will affect joint ventures’ eligibility for SDVOSB contracts.  It will be imperative that SDVOSBs understand that their old “template” JV agreements will be non-compliant after August 24, and that SDVOSBs and their joint venture partners carefully ensure that their subsequent joint venture agreements comply with all of the new requirements.

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8(a) Mentor-Protege JV Didn’t Qualify For SDVOSB Set-Aside, Says SBA OHA

An 8(a) mentor-protege joint venture didn’t qualify for an SDVOSB set-aside because the mentor firm was not a small business.

In a recent decision, the SBA Office of Hearings and Appeals held that a SDVOSB-specific regulation requires all members of an SDVOSB joint venture to be small–notwithstanding language in the SBA’s size regulations and 8(a) Program regulations specifying that an SBA-approved mentor-protege joint venture may bid, as a small business, on any government contractor or subcontract, provided that the protege is small.

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Thank You, Veterans!

I am back in Lawrence after two great days at the National Veterans Small Business Engagement in Pittsburgh.  I led three Learning Sessions at the NVSBE: the first on SDVOSB joint venturing and teaming, the second on the SBA’s proposed new “universal” mentor-protege program, and the third on the ins and outs of the non-manufacturer rule.

Thank you to all of the veterans, government representatives, and others who attended the sessions–the rooms were packed and the audiences were very engaged.  And thank you, as well, to the organizers of this great annual event, who kindly invited me to speak even though the VA and I don’t exactly see eye to eye on the Kingdomware case.

If you weren’t able to attend my sessions at the NVSBE, I am happy to send you a copy of the slides–just contact me.

Thank You, Southern California!

I am back in the Midwest after a trip to sunny Southern California, where I spoke at the 10th Annual Veteran Economic & Business Development Summit in Riverside.  My presentation, “Joint Ventures vs. Prime/Sub Teaming” covered the key legal distinctions between joint ventures and prime/sub teams, with a special focus on the SDVOSB joint venture rules.

A big “thank you” to Julie Padilla, Scott Rice, and the rest of the team from the Riverside Community College District Procurement Assistance Center, who put together an outstanding event.  And of course, extra thanks to the veterans and small business owners who attended (and asked some great questions).

If you were not able to make it to last Friday’s event, you don’t have to be left out.  Just contact me and I would be happy to provide you with a copy of my slides.

SDVOSB Joint Ventures: Supermajority Provision Defeats Eligibility, Says SBA OHA

A SDVOSB joint venture was not eligible for award of a SDVOB set-aside contract because its joint venture agreement called for certain decisions to be made by supermajority vote.

As explained by the SBA Office of Hearings and Appeals in its decision finding the SDVOSB joint venture ineligible, the supermajority provision undermined the regulatory requirement that a SDVOSB joint venture be managed by an eligible SDVOSB.

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