Question 1

How is an SDVOSB joint venture dissolved?

Accepted Answer

A JV is dissolved when its purpose is fulfilled (the contract is completed) or when both parties agree to dissolve. SBA requires JVs to be used for a specific procurement or a class of procurements — they should not be indefinite vehicles. Upon completion of all contracts, the JV should be wound down per its agreement and deregistered from SAM.gov. The JV's legal existence under state law varies by formation type.

Question 2

Can an SDVOSB form a joint venture to pursue set-aside contracts?

Accepted Answer

Yes. SDVOSBs can form joint ventures (JVs) to pursue set-aside contracts. The JV must be controlled by the SDVOSB member — meaning the SDVOSB must be the managing venturer and must perform at least 40% of the work. The SDVOSB must also be responsible for managing the JV on a day-to-day basis. The JV agreement must be in writing and meet SBA regulatory requirements.

Question 3

What must an SDVOSB joint venture agreement include?

Accepted Answer

SBA regulations at 13 CFR 125.18 specify what JV agreements must include: identification of the managing venturer (the SDVOSB), percentage of ownership and work each party will perform, designation of an SDVOSB as project manager, accounting and recordkeeping requirements, limitations on the JV's duration, and provisions for how profits and losses are shared. The JV must be registered in SAM.gov with its own UEI.

How is an SDVOSB joint venture dissolved?

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