Reference

Teaming, Joint Ventures & Subcontracting for SDVOSBs

No small firm wins the big set-asides alone — you team. But teaming is also where SDVOSBs most often destroy their own eligibility, because the SBA blesses some structures and treats others as affiliation. These plain-English pages take one arrangement at a time — the prime and the subcontractor, the FAR teaming agreement, the SDVOSB joint venture and the mentor-protégé joint venture that lets you partner with a large firm without being affiliated, the similarly situated entity that turns a teammate’s work into your own self-performance, and the traps that combine your size with someone else’s: the ostensible subcontractor rule and general affiliation. Each has an at-a-glance card, its controlling citation, when to use it, how to set it up, and the SDVOSB-specific angle — the map of who the SBA lets you team with, and how each arrangement is measured.

Last updated Jul 10, 2026Update cadence: Quarterly, plus on SBA (13 CFR) or FAR amendment

Compiled from: 13 CFR Part 125 (§ 125.6 similarly situated entities, § 125.9 mentor-protégé, § 125.18 JVs) and Part 128 (§ 128.402 SDVOSB JV) · 13 CFR § 121.103 (affiliation and the ostensible subcontractor rule) · Federal Acquisition Regulation (Title 48 CFR, Subpart 9.6 team arrangements, Subpart 19.7 and 52.219-9 subcontracting plans, Subpart 44.2 and 52.212-5 flow-downs)

Change log (1)

Jul 10, 2026
LaunchedPublished the federal teaming, joint venture & subcontracting arrangements reference covering how an SDVOSB works with other firms on a set-aside — the prime contractor and subcontractor roles, the FAR Subpart 9.6 contractor team arrangement (teaming agreement), the SDVOSB joint venture (13 CFR § 128.402), the SBA mentor-protégé joint venture (13 CFR § 125.9), the similarly situated entity that counts a sub's work as self-performance (13 CFR § 125.6), the ostensible subcontractor rule (13 CFR § 121.103(h)), general affiliation (13 CFR § 121.103), the small business subcontracting plan (FAR Subpart 19.7 / 52.219-9), and flow-down clauses (FAR 52.212-5 / Subpart 44.2) — each with an at-a-glance quick-facts card, a when-you-use-it list, a key-features table, an SDVOSB-specific angle, a how-to-set-it-up checklist, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source citations, and cross-links into the glossary, regulation explainers, how-to guides, set-aside comparisons, FAQ, clauses, forms, and the limitations-on-subcontracting, subcontracting-goal, set-aside eligibility, and size-standard calculators.

Prime & Subcontractor Roles

Prime

Prime ContractorThe firm that signs the contract with the government and is legally responsible for the whole job. On an SDVOSB set-aside, the prime must be a certified SDVOSB and must self-perform the minimum share the limitations on subcontracting require.

Subcontractor

SubcontractorA firm that performs part of the work under a contract with the prime rather than with the government. Subcontracting lets an SDVOSB add capacity as a prime — or win federal work as a sub — but the prime, not the government, is the sub's customer.

Teaming Agreement

Contractor Team Arrangement (Teaming Agreement)A written agreement in which two or more firms agree to team on a specific opportunity — usually one primes and the others subcontract — so they can combine strengths to compete. FAR Subpart 9.6 recognizes team arrangements; a teaming agreement is not itself a joint venture.

Joint Ventures

SDVOSB JV

SDVOSB Joint VentureA joint venture between an SDVOSB and one or more partners that can compete for SDVOSB set-asides as a single offeror. The SBA rules are strict: the SDVOSB must manage the JV, own at least 51%, receive at least 40% of profits, and the JV must meet the limitations on subcontracting.

MPP JV

SBA Mentor-Protégé Joint VentureA joint venture between a small-business protégé and its SBA-approved mentor. The headline benefit: the mentor can be large, yet the JV still qualifies as small — and as SDVOSB — for a set-aside, because the SBA exempts the approved relationship from affiliation.

Compliance Guardrails

SSE

Ostensible Sub

Ostensible Subcontractor RuleAn SBA affiliation rule that treats a prime and its subcontractor as joint venturers — and therefore affiliated for size — when the subcontractor performs the contract's primary and vital requirements or the prime is unusually reliant on it. It is the classic way a small-business prime loses a size protest.

Affiliation

AffiliationThe SBA doctrine that combines the size (receipts or employees) of firms that control, or have the power to control, one another. Affiliation is how a firm that looks small on its own can be found too large for a set-aside — and it's why teaming structure matters.

Subcontracting Plans & Flow-Downs

SubK Plan

Small Business Subcontracting PlanA plan a large-business prime must adopt on a sufficiently large contract with subcontracting possibilities, setting goals for subcontracting to small businesses — including SDVOSBs. Small-business primes are exempt from the plan, and SDVOSBs are the intended beneficiaries as subcontractors.

Flow-Downs

Flow-Down ClausesThe FAR clauses a prime is required to include in its subcontracts so that statutory and regulatory obligations reach every tier. Getting flow-downs right protects the prime; getting them wrong leaves the prime — not the sub — answering to the government.

Team without breaking the self-performance rules

The firms that survive a size protest structure the team before they bid — the prime performs the primary and vital work, similarly situated partners carry the rest, and the numbers clear the limitations on subcontracting. Model your self-performance, check your eligibility, and let the weekly Brief surface the set-asides that fit your certification.

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