An 8(a) program protege was deemed affiliated with its mentor–and ineligible for a small business set-aside contract–because the joint venture agreement between the mentor and protege failed to comply with certain mandatory 8(a) joint venture requirements.

In a recent decision, the SBA Office of Hearings and Appeals concluded that an 8(a) mentor-protege joint venture was not entitled to take advantage of the special exception from affiliation because of the flaws in its joint venture agreement.  OHA’s decision is an important reminder to 8(a) mentors and proteges of the critical importance of strictly complying with the 8(a) joint venture regulation.

OHA’s decision in Kisan-Pike, A Joint Venture, SBA No. SIZ-5618 (2014) involved an Army Corps of Engineers solicitation for the design and construction of an Army Reserve Center.  The solicitation was issued as a small business set-aside.

Kisan-Pike, A Joint Venture, submitted a proposal.  Kisan-Pike was a joint venture between Kisan Engineering Company, P.C., an 8(a) program participant, and its large business mentor, The Pike Company, Inc.  Kisan and Pike had an active, approved 8(a) mentor-protege agreement at the time that Kisan-Pike submitted its proposal.  Kisan-Pike self certified as a small business based on the special exception from affiliation available to 8(a) mentor-protege joint ventures.

Keep reading this article at: http://smallgovcon.com/sbaohadecisions/8a-mentor-protege-jvs-faulty-jv-agreement-results-in-affiliation