SDOSB JOINT VENTURE RULES

[mfk]

I have reviewed the regulations for SDVOSB and VOSB joint ventures. My question is regarding 38 CFR Sec. 74.1 For VA contracts, a joint venture must be in the form of a separate legal entity.

Q: Does the VA require that this "separate legal entity" be incorporated (LLC or corp) in the state where the JV is located OR can the JV be unincorporated (thus treated as a general partnership)

In other words, will the VA accept that a SDVOSB joint venture as a "separate legal entity" if the JV has an written agreement in place, obtains a tax id and plans to be treated a a general partnership for tax purposes? OR does the VA take the position that it does not recognize an unincorporated JV as a "separate legal entity"

[mfk]

Thanks but I know the requirements for the SDVOSB joint ventures. However, the only issue is interpreting the regulation at 38 C.F.R. Sec. 74.1 that states "For VA contracts, a joint venture must be in the form of a separate legal entity. However the V.A. does not define separate legal entity nor do they use the words "formal" or "informal" JV.

Under recent SBA cases, for non VA related projects, a JV has the right to determine whether it wants to incorporate in a state or not. (See Costruction Engineering Services, LLC VET 213). However, there is no such guidance for the VA rules that I can locate.

If anyone else has had any experience with SDVOSB JV rejections based upon not incorporating as an LLC or corp. it would be great to hear from you. Thank you.

[Guest Vern Edwards]

See this: http://www.va.gov/oal/docs/library/ils/il06-4.pdf