Set-Asides & Socioeconomic Programs

Joint Venture

A formal arrangement between firms to pursue a specific contract, allowed to qualify as small under set-aside rules.

A joint venture (JV) is an association of two or more firms formed by written agreement to pursue a specific contract or a limited number of related contracts. Under SBA rules a JV between an SDVOSB and another firm can compete for an SDVOSB set-aside if the SDVOSB partner owns at least 51% of the JV, a service-disabled veteran is the managing venturer, and the JV performs the required share of the work. An SBA-approved mentor-protégé JV is exempt from affiliation, allowing a small protégé and large mentor to bid together.

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Related Terms

In the FAQ Knowledge Base

Can an SDVOSB form a joint venture to pursue set-aside contracts?
How is size calculated for a joint venture bidding on a set-aside?

More in Set-Asides & Socioeconomic Programs

Limitations on SubcontractingRule of TwoSBA Mentor-Protégé ProgramSet-AsideSimilarly Situated EntitySole-Source AwardVeterans First Contracting Program

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