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Joint venture (JV)

Also called: JV, joint venture agreement, SBA joint venture, mentor-protege joint venture, populated JV, unpopulated JV

A joint venture in government contracting is a separate entity formed by two or more firms to bid on and perform a contract together; SBA rules let a small business JV, including one with a large mentor, qualify as small for set-asides if the agreement meets specific requirements.

The size rules are 13 CFR 121.103(h), which treats JV partners as affiliated unless an exception applies, and the program rules are 13 CFR 125.8 (small business and SDVOSB), 124.513 (8(a)), 126.616 (HUBZone) and 127.506 (WOSB). Each requires a written JV agreement with set contents: the small firm as managing venturer, a project manager from the small firm, a profit split by workshare, and the small firm performing a stated share of the JV's work. The JV registers in SAM.gov with its own UEI and certifies size based on the partners.

What to check: that the JV agreement has every element the regulation lists (SBA size protests pick these apart), that the mentor-protege agreement is approved before the JV bids a set-aside under 13 CFR 125.9, how many contracts the JV may receive, and the past performance rules in 13 CFR 125.8(e) that let the partners' records count.

What it is not: a teaming agreement, which leaves one party as prime and the other as sub.

See also: Teaming agreement, SBA Mentor-Protege Program, Size standard, Set-aside

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