Mentor-Protege Joint Ventures, GSA Schedules, and Exemption from Affiliation

[contractor100]

A mentor protege joint venture (MPJV) has been awarded a GSA schedule, despite having been in existence for only 8 months.

The MPJV certified itself s small for the schedule, under all SINs.

After the JV receives a contract, it has two years before the JV parties will be deemed affiliated. The parties can then form another identical JV. 13 CFR § 121.103 (h)

Questions:

1 Does the GSA award count as a contract, starting the two-year clock?  (Assume not, based on Kingdomware.)

2 As readers will know, GSA schedule holders continue eligible for setasides for five years on GSA contracts, even if they have outgrown the revenues standard, unless there is a merger, novation etc, or a CO requests a recertification. So, may this JV continue to bid on such GSA setasides after the two year period is up? Here is the language from the reg cited above:

"Once a joint venture receives a contract, it may submit additional offers for a period of two years from the date of that first award. An individual joint venture may be awarded one or more contracts after that two-year period as long as it submitted an offer including price prior to the end of that two-year period. SBA will find joint venture partners to be affiliated, and thus will aggregate their receipts and/or employees in determining the size of the joint venture for all small business programs, where the joint venture submits an offer after two years from the date of the first award. The same two (or more) entities may create additional joint ventures, and each new joint venture entity may submit offers for a period of two years from the date of the first contract to the joint venture without the partners to the joint venture being deemed affiliates."

3. Does it matter if the parties form another JV after the two year period has expired?

 

Thanks for any ideas. 

[Neil Roberts]

Could you perhaps clarify your post?

It looks like three questions were intended. What is the question in number 1 and 2?

In question number 3, what are you referring to with respect to "[d]oes it matter?"

Ideas about what?

[joel hoffman]

C100, Isn’t it possible to ask these questions of GSA?  You’re  asking questions regarding the GSA regulations and policies…

[contractor100]

Question 1. Will the SBA find the joint venture partners affiliated two years from the date of the award of the GSA schedule? Under the reg language quoted, this would require the GSA schedule award to be a "contract," which Kingdomware says it is not.

Question 2. Two years after the first contract award to the JV, SBA will consider the parties to the JV affiliated, and combine their revenues. The JV will not be eligible to receive setaside awards if the combined revenues exceed the size standard for the setaside.

The JV can continue to bid for setasides on its GSA contract for five years from the date of award (for the NAICa to which it certified on award) even if it outgrows that NAICs. 13 CFR § 121.404 Assume that, after the two year period, the JV's aggregated revenues exceed the size standard for those NAICs. Will SBA allow the JV to be awarded setaside contracts on the GSA schedule after the two years have elapsed? 

Question 3. The parties to the JV can form a new JV after the two year period has run.  That new JV will be exempt from affiliation for the same period, two years from award of first contract. But that JV will not be the entity to which the GSA schedule was awarded. Is there any way the old JV could transfer to GSA schedule to the new JV, so that five year period could continue to run and the JV partners can continue small for the initial five year period. 

 

Joel, I think questions 1 and 2 are not about GSA policies, but are about SBA policies, which seem to conflict.

 

Thanks!

[Neil Roberts]

I was unable to locate language in 13 CFR 121.404 that would help me respond to your posting. You may wish to consider contacting SBA directly.

[joel hoffman]

19 hours ago, contractor100 said:

Joel, I think questions 1 and 2 are not about GSA policies, but are about SBA policies, which seem to conflict.

Yes, sorry about that. But I agree with Neil’s suggestion to contact the SBA directly.  

[Vern Edwards]

21 hours ago, contractor100 said:

Question 1. Will the SBA find the joint venture partners affiliated two years from the date of the award of the GSA schedule? Under the reg language quoted, this would require the GSA schedule award to be a "contract," which Kingdomware says it is not.

Where does Kingdomware say that a "GSA schedule award" is not a contract? On what page? Provide a quote.

[contractor100]

It does not say that. I am mistaken

[Vern Edwards]

@contractor100 Thankyou.