sba mentor protege joint venture agreement

Sba mentor protege joint venture agreement how to#

By having an approved mentor protege agreement, both parties would be exempt from any attacks due to affiliation. You could well be on the way for qualifying for an exception under 13 CFR 121.103 h (3). If you have the right mentor protege joint venture attorney that understands the rules, you might be saved if you have submitted an offer on the challenged procurement as joint venturers. Your competition may try to file a size protest under the MPA joint venture agreement. You might be under more scrutiny if under an SBA-approved Mentor Protégé Agreement (MPA A ssistance Program) pursuant to 13 CFR 125.9 because, among other things, you will not be deemed affiliated with each solely because the protege receives assistance from the Mentor. However, the protege must receive a substantial benefit from the relationship. Both the mentor and the protege can benefit and take advantage of lucrative government contracts by relying on each other’s resources. The Mentor Protege relationship is designed so that the mentor, usually a large business can provide assistance to the small business where such assistance would be prohibited under normal procurement regulations. What are Some Benefits of the Mentor Protege Relationship?

An applicant protégé and its prospective mentor may not be affiliated at the time of application.

SBA must determine that the mentor-provided assistance will promote real developmental gains for the protégé, not just act as a vehicle to receive federal small business set-asides.

To Get SBA approval, the Mentor-Protégé Agreement:

Be able to impart value to a protégé firm due to lessons learned and practical experience gained or through its knowledge of general business operations and government contracting.

Not appear on the federal list of debarred or suspended contractors.

Be able to carry out its responsibilities to assist the protégé.

Have a proposed mentor prior to applying for the program.

Be organized for profit or as an agricultural cooperative.

See the SBA’s table of small business size standards.

Be a small business with specific industry experience.To qualify as a protégé under the Program, your small business must: What are SBA Mentor Protégé Program Requirements?

Sba mentor protege joint venture agreement how to#

Government contractors should be aware of the legal pitfalls and how to avoid them. The SBA also makes serious mistakes with its legal analysis of small business joint ventures involved in its mentoring programs. (Area Office erred in finding appellant: (i) was in a joint venture with two sister companies (ii) Area Office also erred in finding that the contractor was affiliated with its sister companies under ostensible subcontractor rule and the SBA’s misapplication of the common ownership, common management rules as it applied to performance of common administrative services. Size This is 2017 case where SBA OHA disagreed with the SBA. SIZ-5783 (2016) (Area Office correctly determined that a member of a purported SBA small business mentor protege program joint venture did not satisfy the requirement that it perform more than administrative and ministerial functions). Size Appeal of Sage Acquisitions, LLC, SBA No. The following SBA OHA decisions show that small businesses and large companies involved in SBA mentoring programs must be aware of the dangerous pitfalls and consequences for non-compliance with SBA Mentor Protege joint venture regulations.

They also cannot control the Protege to the extent that the relationship violates the statutory guidelines. Mentors, on the other hand, must also be aware that they have a strict role to play. However, there are still situations where small businesses can make serious legal mistakes and give up lucrative federal contracts as a result. The Small Business Administration 8a SBA Mentor Protégé Program Joint Venture rules have significant power when applied to submitting proposals for federal government contracts (13 CFR 124.513, 13 CFR 125.9 and 13 CFR 121.103). Get Help Positioning Your Company for GSA’s OASIS UNRESTRICTED Contract Program. Failure to Follow SBA Mentor Protege Program Joint Venture Rules 13 CFR 124.513, 13 CFR 125.8 and 13 CFR 125.9 Can Cost You the Contract.