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Five things you should know about past performance when teaming

May 7, 2021 By Andrew Smith

The government’s hard shift away from lowest-price, technically acceptable evaluations has magnified the importance of past performance in many competitive acquisitions.  For start-ups and other companies new to the federal marketplace, past performance requirements can present a significant barrier to success.

Oftentimes, companies with little or no past performance of their own can offer the past performance of another entity, such as a subcontractor or joint venture partner.  But the rules surrounding the use of another entity’s past performance are often misunderstood–and recently, the rules have evolved quickly.

Here are five things you should know about using the past performance of a subcontractor, joint venture partner, or affiliate.

Continue reading at:  SmallGovCon

Filed Under: Contracting Tips Tagged With: Joint Venture Agreements, Joint Ventures, subcontractor

If you plan to use the SBA’s template joint venture agreement, read this first

April 7, 2021 By Andrew Smith

If you’re setting up your first joint venture under the SBA’s rules, you may be tempted to download the SBA’s template joint venture agreement and use it as-is.

But, as of the date of this post, the SBA’s template joint venture agreement is outdated–and it also has some other quirks and potential problems you should know about. If you’re planning to use the SBA’s joint venture template, read this first.

Outdated Provisions

If you’ve been following my posts on SmallGovCon (and I hope you have!), you’ll recall that I have recently written about substantive changes the SBA made to the joint venture regulations in November 2020. For mentor-protégé joint ventures attempting to comply with the regulations under 13 C.F.R. 125.8, I believe that two of these changes–to the mandatory JV requirements governing bank accounts and recordkeeping, respectively–are substantive changes sufficiently at odds with the “old,” pre-November regulations such that a joint venture agreement will be non-compliant unless it includes these updates. As of the date of this post, these changes are not included in the SBA’s template.

The November 2020 regulations also made some other changes, not only to the small business joint venture regulations under 13 C.F.R. 125.8, but the separate joint venture regulations for the for 8(a), SDVOSB/VOSB, HUBZone, and EDWOSB/WOSB programs.  For instance, the SBA’s new regulations eliminate the term “Project Manager” in favor of the more-inclusive “Responsible Manager.”  These other changes may not be significant enough to render a joint venture non-compliant if it doesn’t enact them–but why take any risks?

Continue reading at:  SmallGovCon

Filed Under: Contracting Tips Tagged With: Joint Venture Agreements, JV, SBA

Roadmap to Joint Venture agreements: legal and accounting considerations

April 7, 2021 By Andrew Smith

Piliero Mazza and Baker Tilly recently gave a helpful webinar on Joint Venture Agreements.  Joint ventures (JVs) can be a powerful tool to improve a government contractor’s odds of winning federal contracts.  With the SBA’s Mentor Protégé Program facilitating JVs and large multiple award contracts making many firms form JVs, an understanding of how JVs work from a legal and accounting perspective is a must.

Watch the webinar on-demand at:  JD Supra

Filed Under: Contracting Tips Tagged With: joint venture, Joint Venture Agreements, Joint Ventures, JV, mentor-protege

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