Joint Venture Consultants Helping Federal Contractors Nationwide
Small businesses contemplating entering into a formal joint venture agreement should be aware of the pitfalls and complex SBA joint ventures regulations (13 CFR 124.513).
When bidding on, or after receipt of, a government contract award, the last thing a company needs is to defend against an affiliation or Ostensible Subcontractor Rule bid protest challenge. Although copying and pasting joint venture agreement templates tend to be a common practice, government contractors should be aware of liabilities and risk involved.
With law offices in Washington, D.C. and Colorado, the federal joint venture agreement consultants and government contract lawyers at Watson & Associates, LLC frequently provide drafting and review services to small businesses and potential JV partners.
Since the SBA has proposed new joint venture regulations, contractors should be particularly aware of the regulation changes., resolving JV agreement disputes for small businesses, and providing appellate legal support throughout the United States.
What We Do?
Watson’s government contract lawyers help small businesses at the beginning stages to understand the pros and conse of forming joint venture relationships. Whereas before all businesses entering a JV relationship would be automatically affiliated, the new rules have some benefits. At Watson, our small business attorneys help to:
- Assess the risks of entering into a JV relationship;
- Analyze the new rules to substantive adjustments to the company structure;
- Interpret the SBA’s regulation and provide sound legal direction.
- Litigate disputes
- Appeal adverse SBA decisions
For immediate help, call our procurement attorneys at 1-866-601-5518. FREE INITIAL CONSULTATION.
With over 30 years of federal government contracting experience, our Joint Venture attorneys understand the complex regulations. Members on our team have the privilege of having worked for federal contracting agencies. Our lawyers have litigated complex issues before the SBA and Office of Hearings and Appeals. Whether you are part of the SBA 8(a) Program, in a Mentor-protege relationship, or an SDVOSB seeking to enter into a JV agreement, Watson’s government contract lawyers can help.
What is a Joint Venture Contract?
Under SBA 8(a) regulations, 13 CFR 124. 513, and approved8(a) Program participant can enter into a Joint Venture agreement with one or more small businesses. When summarizing what is a joint venture contract for purposes of federal government contracting, if the managing small business brings very little to the table, the SBA may not approve the JV agreement.
- Even if you are a non-8(a) company, you still must follow SBA joint venture agreement requirements in 13 CFR 124.513 (c).
- Court decisions find that contractors still violate SBA joint venture contract regulations.
Formal and Informal Joint Venture Entities
The SBA’s new joint venture rules merely identify the consequences of forming an informal joint venture and should assist firms in determining what type of joint venture meets the parties’ needs in each case. The SBA suggested that if the joint venture partners do not want to be faced with the consequences of a business partnership, then it may want to form as a limited liability company. The SBA also stressed that regardless of the business entity formation, the parties should execute a joint venture agreement.
Populated and Unpopulated Joint Ventures
The new proposed joint venture rule suggests that if a joint venture exists as a formal separate legal entity, it may not be populated with individuals intended to perform contracts awarded to the joint venture.
Joint Venture Certification and Work Performance
The new SBA joint venture agreement rules mandate that partners involved in SDVOSB, HUBZone, WOSB, or small business set-aside procurements certify to the contracting officer that while performing the contract, they will comply with the joint venture regulations and also in compliance with the joint venture agreement. The JV partners would also have to report to the contracting officer how they are meeting the regulatory requirements.
The SBA expressed its concern that companies entering into a joint venture agreement under SBA regulations must benefit the small business. The focus is to prevent other government contractors from fraudulently benefiting from the small business programs. Government remedies for dealing with criminal or civil fraud can be suspension and debarment or stiff fines.
Basic Joint Venture Agreement JV Rules 13 CFR 124.513
Joint Venture Affiliation: Under the new SBA rules, small businesses subcontracting through a JV agreement can still be affiliated unless they meet one of the exceptions to affiliation.
Understand the rules before forming a business partnership under SBA rules: Our small business 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 Contract: Sometimes you may find that the SBA rejects your JV agreement. 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 JV lawyers can help you to assess the specific facts so that you do not spend unnecessary legal fees in a useless appeal.
What is the percentage of work to done between joint ventures? A small business that is in the SBA 8(a) Program, offering an unpopulated venture or populated joint ventures only with one or more administrative personnel, the 8(a) partner(s) must perform at least 40% of the work.
- This must be more than administrative or ministerial functions
The SBA has issued new rules regarding joint venture relationships and limitation on subcontracting. View here.
Additional Joint Venture Partnership Information
Call Our Federal Joint Venture Agreement Lawyers
If you are a small business seeking to draft a contractual SBA joint venture agreement to meet SBA rules under 13 CFR 124 and federal contract teaming agreement laws, call our government contract lawyers at 1-866-601-5518 for a free initial consultation.