5/10/2023 0 Comments Sba mentor protege(ii) specify the specific responsibilities of the parties with respect to negotiation of the contract, the source of labor, and contract performance requirements and (i) itemize the equipment to be used in the performance of the contract SIZ-6049 (2020) OHA found that the parties’ mentor-protégé joint venture agreement failed to meet the requirements of 13 CFR 125.18(b)(2)(vi) and (vii) because the agreement failed to: For example, in the case of Size Appeal of KTS Solutions, Inc., SBA No. SBA OHA has ruled in many cases that your company must follow SBA Mentor Protege Joint Venture rules or lose the contract due to affiliation. Severe Consequences for Not Following the Rules ![]() Two firms that have SBA Mentor Protege Program approval under § 124.520 of the regulations may joint venture as a small business for any Federal government prime contract or subcontract, provided the protege qualifies as small for the size standard corresponding to the NAICS code assigned to the procurement and, for purposes of 8(a) sole source requirements, has not reached the dollar limit set forth in § 124.519 of the regulations. Find out What is a Mentor Under SBA Rules 13 CFR 124.520? ![]() One such exception is afforded to joint ventures formed by 8(a) BD program mentor protégé firms. Government contract law and SBA Mentor Protege Program regulations recognize several exceptions to the general rule. See information about forming strategic alliances with joint ventures. However, there are exceptions to the rule.Įxceptions to SBA Mentor Protege Program and Small Business Affiliation Under the Federal Mentor Protege Program, SBA rules suggest that firms submitting offers on a particular procurement as joint venturers are affiliates about that contract, and their revenues or employees will be aggregated for the purpose of determining the outcome of a small business size protest. ![]() Two firms that form a small business joint venture to perform a contract will be considered affiliates for purposes of that contract. SBA Mentor Protege Joint Venture Rules & SBA Joint Venture Agreements Nevertheless, as current court decisions show, you can be stuck with the bottom line – you have to get SBA approval before submitting your proposal. In many cases, the SBA does not give priority for mentor protege approval simply because there is a pending proposal evaluation or upcoming bid. Many companies lose out of lucrative contracts as a result. However, they are still required to meet the statutory requirements. Small businesses not in the 8a Program sometimes attempt to develop relationships outside of the SBA Mentor Protege approval rules. This requirement poses substantial problems for small businesses relying on the SBA to approve a mentor protege agreement when still faced with short proposal submission deadlines. SBA rules that require 8a companies to get prior approval. It should not be a crutch that prevents small businesses from seeking and performing those larger and more complex contracts on their own.When trying to get the benefit of the SBA Mentor Protege Program, there is a Joint Venture affiliation exception that you must be extremely careful about. The mentor-protege program should be a boost to a small business’s development that enables the small business to independently perform larger and more complex contracts in the future. Just like the longstanding and popular 8(a) mentor-protege program, the new small business mentor-protege program creates a framework under which mentor firms will provide a wide variety of potential benefits to their proteges. Mentors are encouraged to provide assistance relating to the performance of contracts set aside or reserved for small business so that protege firms may more fully develop their capabilities. This assistance may include technical and/or management assistance financial assistance in the form of equity investments and/or loans subcontracts (either from the mentor to the protege or from the protege to the mentor) trade education and/or assistance in performing prime contracts with the Government through joint venture arrangements. ![]() The small business mentor-protege program is designed to enhance the capabilities of protege firms by requiring approved mentors to provide business development assistance to protege firms and to improve the protege firms’ ability to successfully compete for federal contracts. If you’re not familiar with the program, here’s a brief description from the Small Business Adminstration:
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