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Small business government contractors often seek to use joint ventures to get larger federal projects. However, the are legal pitfalls to watch out for.
13 CFR 121 and 13 CFR 124 sets the stage for basic compliance. However, bidders find out later that a competitor sometimes challenges the relationship.
This can lead to contractor affiliation and also result in government contracts being taken away.
- SBA JV compliance
- Avoid SBA affiliation decisions
- Protect your legal rights early in the process
With law offices in Washington, D.C. and Colorado, the joint venture agreement lawyers at Watson & Associates, LLC frequently provide concise and structured legal advice to clients throughout the United States when drafting and entering into prime and subcontractor relationships. Our goal is to help clients to avoid legal pitfalls with JV agreements and statutory compliance. Our government contract law attorneys aggressively represent small business when there are disputes.
- Our law firm is geographically positioned to help small business joint venture parties across the U.S.
- We offer over 30 years of federal procurement experience
SBA JV Law Help. Since the general rule is that two small businesses entering into joint ventures are automatically affiliated, contractors use our legal help to see if the exceptions to affiliation can apply to their relationship. The law firm helps clients to avoid adverse actions early in the joint partnership phase all the way through bidding and performance stages.
Joint Ventures and Bid Protest Help
When companies win federal contracts, competitors may file a size protest with the SBA. Whether your joint ventures relationship complies with 13 CFR 121 and 13 CFR 124 or whether there is a violation of the Ostensible Subcontractor Rule is the underlying basis of the bid protest. Our attorneys can help by:
- Providing legal assistance with filing a bid protest
- Intervening and defending size protests
- Providing strategic guidance throughout the litigation process.
Avoid Affiliation Under 13 CFR 121 With Your JV Contractual Agreement
Often in size determination disputes the SBA can find general affiliation under 13 CFR 121 and 13 CFR 124.513 between the parties of JV agreements. If the joint venture partnership relationship is longstanding or if there is unusual contractual dependence between the partners, courts tend to find affiliation. In addition to simply having a joint venture agreement executed, our lawyers help small businesses to be aware of the impact of exclusivity agreements and long-term relationships regarding the “three in two rule” under the SBA regulations.
Does Your Joint Venture Agreement Comply With Federal Regulations?
Although using a qualified joint venture partner is standard practice in government contracting, the SBA can still find small businesses affiliated based on a joint venture relationship unless an exception applies. Government contractors entering a joint venture agreement or partnership contract outside of the SBA 8(a) Program must still meet the requirements of 13 CFR 124.513(c) to get the benefit of any exception.
Help With Government Contracting Proposals: When companies are seeking gain the advantage of using JV agreements in bid proposals, our government contracting attorneys provide legal advice and guidance with size standard requirements and compliance with regulations involving SBA Mentor Protégé arrangements.
Understand the rules before forming a business partnership under SBA rules: Our lawyers help clients to understand the various nuances of mentor protégé and joint venture agreement rules. This includes populated and unpopulated JV agreements.
Appealing SBA Rejection of Your Joint Venture Agreement: Sometimes you may find that the SBA rejects your contractual agreement with your . However, OHA does not have jurisdiction over the SBA’s rejection of the agreement until the contracting agency has identified the offeror as the apparent successful offeror.” 13 CFR 121.1004(e). Our lawyers can help you to assess the specific facts so that you do not spend unnecessary legal fees in a useless appeal.
Performance of Work by Joint Venture JV Partners
Performing the legal amount of work in the joint venture relationship is critical. Failure to perform the required amounts can cause suspicion and investigations by the government into fraudulent JV relationships.
A small business that is in the SBA 8(a) Program, offering an unpopulated joint venture or a joint venture populated only with one or more administrative personnel, the 8(a) partner(s) to the joint venture must perform at least 40% of the work.
- This must be more than administrative or ministerial functions
In an unpopulated joint venture, when both 8a and non-8a companies are actually subcontractors to the JV, the amount of work done by the partners will be aggregated and the work done by the 8(a) partner(s) must be at least 40% of the total done by all partners.
Call Our JV Agreement & Government Small Business Lawyers
If you are a small business seeking to draft a contractual joint venture agreement to meet SBA rules under 13 CFR 124 and federal contract teaming agreement laws, call our government contract lawyers s at 1-866-601-5518 for a free initial consultation.