SBA Proposed Rule: SDVOSB Joint Venture Mentor-Protégé Alignment
SBA finalized updates aligning SDVOSB joint venture rules with the SBA All Small Mentor-Protégé Program. Changes clarify how SDVOSB JVs qualify for set-asides, manage work share requirements, and report performance to maintain program compliance.
Change log (3)
- Data refreshRe-checked rule statuses and comment deadlines against the latest Federal Register postings.
- Structured dataCross-linked related rules and added affected-area tags to each change.
- LaunchedPublished the tracker covering major 2023–2025 SBA/VA/DoD/FAR rule changes affecting SDVOSBs.
| Agency | Small Business Administration |
| Rule Type | Proposed Rule |
| Status | Effective |
| Published | 2024-08-22 |
| Effective Date | 2025-01-06 |
| Comment Deadline | 2024-10-21 |
| FR Citation | 89 FR 67890 |
| Rule / Docket | RIN 3245-AH61 |
| Affected Areas | Joint VenturesMentor-ProtégéSet-Asides |
Rule Details
SBA issued a final rule clarifying and updating the joint venture rules for SDVOSB set-aside contracts, bringing them into alignment with the All Small Mentor-Protégé (ASMP) program regulations at 13 CFR Part 125. The rule addresses how SDVOSB joint ventures — including those formed through SBA-approved mentor-protégé agreements — qualify for set-aside awards.
Key provisions: (1) SDVOSB JVs for set-aside contracts must register in SAM.gov and self-represent as an SDVOSB in all offers. The SDVOSB member of the JV must be VetCert-certified. (2) Work share requirements: the SDVOSB partner must perform at least 40% of the work on services contracts (50% for construction). Mentor-protégé JVs are exempt from this limitation for the life of the approved agreement. (3) Annual reporting: SDVOSB JVs formed under mentor-protégé agreements must submit annual performance reports to SBA demonstrating that the protégé is receiving meaningful technical assistance and benefit from the relationship. (4) Withdrawal of SBA approval: SBA may withdraw approval of an SDVOSB JV's set-aside eligibility if reporting lapses or the work share requirement is not met.
The rule also clarifies that a protégé who achieves SDVOSB certification may form a JV with its mentor (even if the mentor is a large business) for SDVOSB set-aside contracts, provided the mentor is in the same or related NAICS code.
This rule is relevant to SDVOSBs pursuing large contract vehicles (GWACs, IDIQs) where teaming with a larger prime is strategically necessary but where the SDVOSB must maintain set-aside eligibility.
Frequently Asked Questions
What does SBA Proposed Rule: SDVOSB Joint Venture Mentor-Protégé Alignment mean for SDVOSBs?
SBA finalized updates aligning SDVOSB joint venture rules with the SBA All Small Mentor-Protégé Program. Changes clarify how SDVOSB JVs qualify for set-asides, manage work share requirements, and report performance to maintain program compliance.
When does this proposed rule take effect?
This rule has an effective date of 2025-01-06. SDVOSBs should update their compliance procedures and SAM.gov representations accordingly.
Where can I read the full text of 89 FR 67890?
The full text of this rule is published in the Federal Register under citation 89 FR 67890. You can search for it at federalregister.gov using the citation or docket number RIN 3245-AH61.