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MPJV -- Protege 40% Work Performed

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I am posting this for Teton who added it as a blog entry.

Quote

§125.8   What requirements must a joint venture satisfy to submit an offer for a procurement or sale set aside or reserved for small business?

(c) Performance of work. (1) For any contract set aside or reserved for small business that is to be performed by a joint venture between a small business protégé and its SBA-approved mentor authorized by §125.9, the joint venture must perform the applicable percentage of work required by §125.6 (easily done as 15% for JV self-perform), and the small business partner to the joint venture must perform at least 40% of the work performed by the joint venture.

How is the "40% of work performed" by the Protege calculated?sba

 

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Construction ? 

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Teton, does the above link provide enough information for you to be able to calculate the required amount of work that the protege must self perform? 

Did you ask the SBA?

I guess it may be appropriate to ask those who are supposed to implement and enforce the requirement.  However, in my experience and in following this Forum for many years, many contracting agencies appear to have a mediocre record of actually tracking and reinforcing the requirements for self-performed work. 

The SBA should be able to help you answer your question as the information is from their CFR. 

The reason that materials aren't included in the limitations on subcontracting is that prime contractors were often simply paying for materials that their subs were installing, then calling it self-performed work - even on unrestricted construction awards.

It's probably in 125 CFR somewhere, but the SBA Regional Office in Atlanta instructed me, a long time ago,  not to subtract any amount for materials from subcontract amounts, if a subcontractor doesn't identify the cost of materials in its proposal/quote, for purposes of calculating total contract cost of materials to exclude in the calculation. 

Buying materials for others to install isn't performing "work" on the site, "with its own organization", whether it be unrestricted, a sole source or set-aside construction contract.

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C & Joel ---   Thanks for the replies.    Yes, FAR 52.219-14 is still under revision but in final stages.   I have read the Federal Register comments (7-25-16) implementing the 13 CFR 121-127 rule changes.   Very interesting, but does not provide clarity on how to how to calculate the 40% protege requirement.    Major equipment provided by the Mentor could significantly impact the feasibility of the MPJV opportunity depending upon the calculation of the 125.8(c) "40% of the work performed" requirement.

I will move forward with the SBA.   Any advice as to which organization w/in the SBA to contact?

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One would have to research that info online or in an online phone book. Check with your Regional Office. I had KO contacts with the office in Atlanta who worked with us on the 8(a) program. 

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Thank you.     I have enjoyed this discussion group for years a valuable resource to exchange ideas 

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Good luck, Teton 

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