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rae.story

SBA’s “Three-In-Two” rule for Joint Ventures

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I am hoping someone may be able to shed some light in regards to the SBA’s “Three-In-Two” rule for Joint Ventures? 

SBA’s current regulations provide that a joint venture can be awarded no more than three contracts over a two-year period. I understand that the SBA has proposed changes and is planning to keep the two-year lifespan for joint venture awards, however is planning to get rid of the three contract maximum. I don’t believe this has taken affect just yet?

Could someone confirm as to whether or not delivery orders and task orders awarded under an IDIQ, BPA or MAC are considered contracts? I am fairly confident that I know the answer, however there is some confusion which leads to the understanding that a joint venture could be awarded three (3) IDIQs, BPAs or MACs, and that the individual task orders/delivery orders awarded under those would not be considered contracts?

Thank you in advance for your time. 

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IDIQ contracts are considered contracts for purposes of limitations on contract awards to JVs.  The SBA does not consider BPAs to be contracts.  Instead, each order under a BPA is considered to be a contract.  See, 13 CFR 125.1.  What do you mean by MAC?  Not everyone gives that abbreviation the same meaning.

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Retreadfed; So to be clear. If a JV was awarded an IDIQ, would the orders that are awarded to the JV be considered individual contracts and count against the 3-in-2? 

MAC = Multiple Award Contract

 

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2 hours ago, rae.story said:

If a JV was awarded an IDIQ, would the orders that are awarded to the JV be considered individual contracts and count against the 3-in-2? 

No.  The IDIQ contract is considered the contract, not the individual orders.  A MAC is an IDIQ contract.  Therefore, the same rule applies to orders under such contracts.

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Are subcontracts awarded to the JV counted as part of the 3 maximum, or is it only where the JV is awarded as Prime? 

Thanks! 

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See, 13 CFR 121.103(h) "For purposes of this paragraph (h), contract refers to prime contracts, and any subcontract in which the joint venture is treated as a similarly situated entity as the term is defined in part 125 of this chapter."

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