Small Business Joint Venture

Eligibility Requirements

• •All joint venture partners must individually qualify as small businesses
• •Joint venture agreement must comply with SBA's 13 CFR 125.8 requirements
• •The "3-in-2" rule limits the joint venture to three contract awards within two years
• •Each joint venture partner must perform a significant portion of the work
• •Joint venture must have a separate legal entity or partnership agreement
• •Populated joint venture (stand-alone entity) must separately register in SAM.gov

Certification Process

Joint ventures do not require pre-certification from SBA unless formed under the Mentor-Protege Program. The contracting officer evaluates joint venture compliance at time of offer. Joint venture agreements must include specific provisions required by 13 CFR 125.8 covering management, profit distribution, performance of work, and record-keeping. SBA may review JV compliance as part of a size protest.

Contracting Benefits

• +Combine capabilities and past performance of multiple small firms
• +Joint venture treated as small business for size determination purposes
• +Can compete for larger, more complex contracts than either firm alone
• +Shared risk and investment across joint venture partners
• +Each partner maintains independent small business status
• +Flexible structure allows project-specific partnerships