Mentor-Protégé Agreements and Joint Ventures 8(a) Business Development Program.

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Mentor-Protégé Agreements and Joint Ventures 8(a) Business Development Program

Transcript of Mentor-Protégé Agreements and Joint Ventures 8(a) Business Development Program.

Page 1: Mentor-Protégé Agreements and Joint Ventures 8(a) Business Development Program.

Mentor-Protégé Agreements and

Joint Ventures

8(a) Business Development Program

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8(a) Business Development Program

• Business development program that helps socially and economically disadvantaged Americans gain access to economic opportunities

• 5% government-wide contracting goal as a small disadvantaged business

• Participants can receive 8(a) sole-source contracts:• Up to $4 million for goods and services• Up to $6.5 million for manufacturing

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MENTOR-PROTÉGÉ PROGRAM

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Mentor-Protégé Program

• Mentoring program offered under the 8(a) Business Development Program

• Enhances the capability of 8(a) participants to successfully compete for federal government contracts

• Encourages private-sector relationships and expands SBA’s efforts to identify and respond to the developmental needs of 8(a) clients

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Benefits of SBA’s Mentor-Protégé Program

• Business growth for mentor and protégé

• 8(a) firm will receive technical and management assistance from the mentor

• Mentors can enter into joint venture arrangements with protégés and compete as a small business for government contracts

• Mentors can own equity interest up to 40% in a protégé firm to help it raise capital

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Protégé Requirements

• Currently in the developmental stage of the 8(a) Business Development Program

• Have never received an 8(a) contract

• Have a size of less than half the size standard of the primary NAICS Code

• Must be in good standing with the 8(a) BD Program

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Mentor Requirements

• A business that has graduated from the 8(a) BD Program, a firm in the transitional stage of the program, a small or a large business

• Must make a commitment for at least one year

• Profitability for at least the last two years

• A federal contractor in good standing

• Can provide valuable support to a protégé

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JOINT VENTURES

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What is a Joint Venture?

• A Joint Venture (JV) is an agreement between an eligible 8(a) participant and one or more other business concerns to establish a new legal entity solely for the purpose of performing a specific 8(a) contract.• Contract is awarded to the JV entity rather than to an

individual participant(s)

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When are Joint Venture’s Permitted?

• 8(a) firm lacks capacity to perform contract independently

• Joint Venture (JV) arrangement is fair and equitable

• JV will be of substantial benefit to the 8(a) firm

• 8(a) firm brings something of value to the JV other than their 8(a) certification

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Size Standard Requirements: JV under Mentor/Protégé Program

• Joint Venture (JV) between a Protégé 8(a) firm and its approved Mentor will be deemed “small” provided that:• The Protégé is small for the NAICS code assigned to that

procurement.

• Mentor/Protégé Program: the combined size standard for Mentor and Protégé may exceed size standard of the applicable NAICS as long as the Protégé is small under that NAICS assigned to that procurement.

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Percentage of Work

• The Joint Venture must perform at least the following percentages of work on the awarded contract:• Services (non-construction): 50% of the cost of the contract

incurred for personnel with its own employees• Supplies or products: 50% of the cost of manufacturing the

supplies/products (not including cost of materials)• General Construction: 15% of the cost of contract with its own

employees (not including cost of materials)• Special Trade Construction: 25% of the cost of contract with its

own employees (not including cost of materials)

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Submission and Approval Requirements

• Joint Venture applicants must submit all required information to the managing 8(a) firm’s servicing SBA District Office no fewer than twenty (20) working days prior to the scheduled date for contract award/bid date

• Joint Venture Agreement (JVA) must be approved by SBA prior to award

• SBA must approve—in advance—all proposed amendments, modifications, or extensions to a JVA

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SBA Approval

• The servicing SBA District Office of the managing 8(a) firm is responsible for notifying the participant of the decision to approve or deny the Joint Venture (JV)• The SBA District Office will notify the managing 8(a) firm of

their decision prior to award of the contract to the JV.

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Teaming Arrangements

• A Teaming Arrangement (TA) means an arrangement in which:• Two (2) or more companies form a partnership or Joint

Venture (JV) to act as potential prime contractor; or• A potential prime contractor agree with one or more other

companies to have them act as its subcontractor under a specified Government contract/acquisitions Program

• The requirements under the limitations of subcontracting (percentage of work) must be maintained

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Teaming Arrangement vs. Joint Venture

• While 8(a) firms are encouraged to team with both 8(a) and non-8(a) firms, the SBA is not normally involved with Teaming Arrangements, thus the SBA is not required to review or approve them.

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Baltimore District Office

For more information on SBA’s programs and services, please contact:

Christine Mills Amber Blake

Business Opportunity Specialist Business Opportunity Specialist

410-244-3336 443-244-3321

[email protected] [email protected]

Or visit our office web site at www.sba.gov/md!

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