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. 

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.

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

 

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.

Retreadfed; Greatly appreciate your expertise and guidance.

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! 

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."

In addition to the question posed earlier, can anyone tell me whether a contract that comes with the purchase of a small business by a small business Joint Venture counts as one of the 3 that the JV is limited to "winning." I would think that it would not since the JV did not compete for the contract, but I am not sure. thanks