Thank you so much for your inputs, I appreciate it. Joel, Don, you are correct, it was a small business set aside. I agree with you Joel, concerning incorporation through the Christian Doctrine. Luckily enough, the contract fits under 13 CFR § 125.6(h)(i)
Where an offeror is exempt from affiliation under §121.103(h)(3) of this chapter and qualifies as a small business concern, the performance of work requirements set forth in this section apply to the cooperative effort of the joint venture, not its individual members.
13 CFR §121.103(h)(3) states:
(3) Exception to affiliation for certain joint ventures. (i) A joint venture of two or more business concerns may submit an offer as a small business for a Federal procurement without regard to affiliation under paragraph (h) of this section so long as each concern is small under the size standard corresponding to the NAICS code assigned to the contract, provided: (A) The procurement qualifies as a “bundled” requirement, at any dollar value, within the meaning of §125.2(d)(1)(i) of this chapter
Since §121.103(h)(3)(A) applies, our efforts with our only sub will comply with the 50% rule, regardless of it's presence in the contract.
And thanks to everyone for taking it easy on my first post.