JV
Started by Contractor500 · Nov 18, 2022 · 4 replies
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Contractor500
Nov 18, 2022 · 3y ago
The company that I work for is bidding on something with a 16.5 M Size standard as a JV. They have an unpopulated JV. Is it the revenue itself, which would be zero for this JV with no work awarded to it - or does any of the past 5 years of revenue for each JV member come into play when bidding?
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Vern Edwards
Nov 18, 2022 · 3y ago
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Contractor500
Nov 18, 2022 · 3y ago
Thank you Vern! I did some searching but couldn't find the specific answer to my question until you sent the link. I appreciate you taking the time to help. Other than NCMA magazine and the FAR, what other reading materials do you find to be the most helpful?
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Vern Edwards
Nov 19, 2022 · 3y ago
Contractor500 said:
Other than NCMA magazine and the FAR, what other reading materials do you find to be the most helpful?
That would be a long list of reading materials. Any specific topic?
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here_2_help
Nov 19, 2022 · 3y ago
I'll add to Vern's informative link with a caution that many contracting officers do not fully understand how to deal with unpopulated JVs. Nor do many contractors that form them!
Questions to be answered ahead of time:
1. Which entity will do the accounting for the JV? Is that entity going to be submitting invoices on behalf of the JV? Does that entity have an adequate accounting system?
2. If the "subcontractors" to the JV are going to receive cost-type contracts, do they all have adequate accounting systems?
3. Does each "subcontractor" to the JV have the ability to calculate allowable indirect cost rates and to issue credible cost proposals suitable for negotiation?
4. How will profit be distributed to the JV members? How will any unallowable costs, incurred on behalf of the JV (rather than an individual member), be accounted for?
I could go on. These issues, and others, should be sorted ahead of time so that the proposal can clearly explain to the government how it's all going to work.