SBA’s “Three-In-Two” rule for Joint Ventures
Started by rae.story · Mar 16, 2020 · 7 replies
- rOriginal post
rae.story
Mar 16, 2020 · 6y ago
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.
- R
Retreadfed
Mar 16, 2020 · 6y ago
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.
- r
rae.story
Mar 16, 2020 · 6y ago
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
- R
Retreadfed
Mar 16, 2020 · 6y 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.
- r
rae.story
Mar 16, 2020 · 6y ago
Retreadfed; Greatly appreciate your expertise and guidance.
- J
JDubs
May 28, 2020 · 6y ago
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!
- R
Retreadfed
May 29, 2020 · 6y ago
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."
- b
babs2523
Aug 20, 2020 · 5y ago
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