Question 1

What teaming strategies work best for SDVOSBs pursuing large contracts?

Accepted Answer

Effective teaming strategies for large SDVOSB contracts include: pursuing a mentor-protégé relationship for dollar-unlimited JV capacity, identifying large business partners with complementary past performance and clearances, negotiating work-share agreements that protect the SDVOSB's limitations on subcontracting compliance, and documenting the teaming arrangement clearly. Avoid teaming with a large business that would trigger the ostensible subcontractor rule by performing the primary work.

Question 2

What is the difference between a teaming agreement and a joint venture?

Accepted Answer

A teaming agreement is a pre-proposal arrangement between a prime and subcontractor(s) for a specific bid, but the prime remains solely responsible for the contract. A joint venture creates a separate legal entity that bids and performs as the prime. JVs are more complex but offer greater flexibility for combining past performance and resources. For SDVOSB set-asides, the prime (or JV managing venturer) must be an SDVOSB — a large business cannot be the prime.

Question 3

What is an approved mentor-protégé joint venture?

Accepted Answer

An approved mentor-protégé joint venture (MP JV) is a formally structured JV between an SBA-approved mentor (usually a large business) and its protégé (an SDVOSB). MP JVs receive special regulatory benefits: the JV is not subject to size affiliation with the mentor, and the JV's past performance counts for the protégé. The JV must be approved by SBA before submitting offers on set-aside contracts.

Question 4

Can a large business be a subcontractor to an SDVOSB prime?

Accepted Answer

Yes. An SDVOSB prime can use large business subcontractors, but must comply with the limitations on subcontracting rule. The SDVOSB must perform the primary and vital requirements of the contract and cannot simply pass the majority of work to a large business subcontractor (the ostensible subcontractor rule). A well-structured prime-sub arrangement allows SDVOSBs to leverage large business capabilities while maintaining eligibility.

What teaming strategies work best for SDVOSBs pursuing large contracts?

More on Joint Ventures & Teaming

Related Questions

Related Tools & Directories