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Joint Ventures and GSA Schedules


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If Government Agency ABC is going to fulfill its IT requirements by using/soliciting small business GSA Schedule holders only, and my company is large business partner in a Joint Venture with a small 8a company, and the joint venture is considered small by the SBA,

- does the JV have to have a GSA Schedule in order to participate in a GSA solicitation issued by Agency ABC? I don't think a JV can obtain a GSA schedule, can it ?

-Does the small business partner in the JV have to have a GSA schedule in order for the JV to parcipate in the soliciation Agency ABC?

-Can we as the large business partner of the JV use its GSA schedule to respond to the solicitation if the small business partner does not have a GSA schedule?

Isn't it true that as a large business, it is not necessary to use the JV at all (if there isn't a need to), and it would be better to simply team with other small GSA schedule holders ( via CTAs) and sub to a small business GSA holder in order to obtain contract awards from Govt Agency ABC?

Any thoughts, comments to the above scenario would be appreciated.

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My thoughts/comments.

- does the JV have to have a GSA Schedule in order to participate in a GSA solicitation issued by Agency ABC? I don't think a JV can obtain a GSA schedule, can it? Since the agency is soliciting Schedule contractors only, it would be apparent to me that the JV would have to have a Schedule contract to participate. I know of no reason that a JV could not have a Schedule. Please note there are some Schedule requirements (example, 2 years of financial statements) that would lead me to believe that the JV would have to have been in business for a couple of years before they could apply for a Schedule contract.

-Does the small business partner in the JV have to have a GSA schedule in order for the JV to parcipate in the soliciation Agency ABC? The entity submitting the response to the RFQ would need to have a Schedule contract (whether it be the JV, or the small business independently).

-Can we as the large business partner of the JV use its GSA schedule to respond to the solicitation if the small business partner does not have a GSA schedule? Not if it was done as a small business set-aside. The only entities that the agency should accept/evaluate offers from is small businesses with a Schedule contract.

Isn't it true that as a large business, it is not necessary to use the JV at all (if there isn't a need to), and it would be better to simply team with other small GSA schedule holders ( via CTAs) and sub to a small business GSA holder in order to obtain contract awards from Govt Agency ABC? This appears to be 2 questions. 1) A CTA would not be eligible if it contained a large business (since it is set-aside for small). 2) A large business could sub for a small business, but the small business would need to have a Schedule contract, have those products/services on their Schedule contract, and could only charge up to the amount as stated on their Schedule contract.

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According to the FAR, it is illegal to create a joint venture for the sole purpose of obtaining a GSA contract.

That being said, a small business with a GSA contract can sub-contract to anyone. Notice I said sub-cntract and not partner.

You cannot partner with a GSA contract holder, unless both have a GSA contract. If both do, it is call a CTA, contract teaming arrangement.

Hope this helps.

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Guest Vern Edwards
According to the FAR, it is illegal to create a joint venture for the sole purpose of obtaining a GSA contract.

Where does FAR say that?

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