Worker`s Work Performance – Current Work Performance Requirements for Mentor-Protégé Joint Ventures 8(a) As mentioned above, the FAR recognizes two different forms of association agreements – joint ventures and association agreements. These agreements can be mutually beneficial to small businesses and government, but they can also pose challenges for small businesses and their hopeful partners. Ownership can be a significant issue for joint ventures as the parties are automatically connected to each other in terms of contract performance. If companies still want to be able to compete for set-aside, a small business should only enter into a joint venture with another company if the combined size does not exceed the size standard. However, the presumption of affiliation is removed for joint ventures established under the SBA`s All Small Mentor Protégé program or the Mentor Protégé 8(a) program. As with all contractual disputes, each case revolves around the specific wording of the agreement, and the law varies from state to state, but in general, most association agreements require the parties to jointly submit a proposal and agree to enter into good faith negotiations on subcontracting when awarding a contract to the supervisor. The weight of the case law shows that a promise to negotiate in good faith is not sufficient to conclude a binding contract. In addition, the terms of an association agreement must be very specific in order to create a post-award obligation in most states. Don`t miss Richard Arnholt and Todd Overman, who will be attending the 2018 Florida GovCon Summit. His presentation provides strategic advice to help small businesses maximize their position within team relationships.
The Florida GovCon Summit 2018 will take place From February 28 to March 1 at the Ballroom on Church Street in Orlando, Florida. Further information and registration can be found on the Solvability website. The short article below was part of the presentations given during the webinar, but it was the real experiences of all the participants that really breathed life into the webinar. The article focuses on association agreements and joint ventures and Jon wanted to share this presentation in the hope that it would provide useful advice and suggestions for small businesses to participate in association agreements and do business with the federal government. Association agreements can be a valuable tool for small businesses, allowing companies to pool their resources, management skills and technical knowledge. All of these elements contribute to making a small business more competitive in the bidding process. However, if not properly implemented, the application of association agreements can have a negative impact on their ability to meet the size requirements of decommissioning contracts. Under the CDD Act, for example, the parties are not bound by prior agreements unless the evidence presented clearly indicates that they intended to be related at that time.
This usually means that the parties have taken steps to promote the negotiations. The SBA stated that under the terms of its programme 8(a), the SBA must approve a joint venture agreement before it can award a contract referred to in paragraph 8(a) to a joint venture. However, the SBA continued: “There is no similar prior approval requirement under the SBA regulations for [other] association agreements involving participants in paragraph 8(a) BD, and the SBA has no process or practice for reviewing such agreements.” For this reason, the SBA concluded, “it would have been impossible for suppliers affected by the Navy`s requests to meet this requirement as written.” However, the team is a different concept. Subpart 9.6 of the FAR defines a contractor team arrangement as an agreement in which: 1. two or more companies form a partnership or joint venture to act as potential prime contractor, or 2. A potential prime contractor agrees with one or more other companies to act as subcontractors under a particular government contract or acquisition program. The latter is essentially an agreement to develop an entrepreneur-subcontractor agreement for the specific acquisition once it has been awarded. Following SBA`s statement in The Matthews Group, Accent`s deal looks even cruder. However, I agree with the position of the SBA as set out in The Matthews Group. Nothing in Regulation 8(a) requires prior review or approval of Association Agreements and, to my knowledge, such a review is not part of the usual practice of the SBA. Hopefully, this means that Accent Services Company has been an outlier and that 8(a) other participants won`t have to fear termination due to unapproved association agreements. The Virginia Supreme Court considered the applicability of association agreements in the W.J.