[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR125.15]



[Page 441]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 125_GOVERNMENT CONTRACTING PROGRAMS--Table of Contents

 

                  Subpart C_Contracting with SDVO SBCs

 

Sec. 125.15  What requirements must an SDVO SBC meet to submit an offer 

on a contract?



    (a) Representation of SDVO SBC status. An SDVO SBC must submit the 

following representations with its initial offer (which includes price) 

on a specific contract:

    (1) It is an SDVO SBC;

    (2) It is small under the NAICS code assigned to the procurement;

    (3) It will meet the percentage of work requirements set forth in 

Sec. 125.6;

    (4) If applicable, it is an eligible joint venture; and

    (5) If applicable, it is an eligible nonmanufacturer.

    (b) Joint ventures. An SDVO SBC may enter into a joint venture 

agreement with one or more other SBCs for the purpose of performing an 

SDVO contract.

    (1) Size of concerns to an SDVO SBC joint venture.

    (i) A joint venture of at least one SDVO SBC and one or more other 

business concerns may submit an offer as a small business for a 

competitive SDVO SBC procurement so long as each concern is small under 

the size standard corresponding to the NAICS code assigned to the 

contract, provided:

    (A) For a procurement having a revenue-based size standard, the 

procurement exceeds half the size standard corresponding to the NAICS 

code assigned to the contract; or

    (B) For a procurement having an employee-based size standard, the 

procurement exceeds $10 million;

    (ii) For sole source and competitive SDVO SBC procurements that do 

not exceed the dollar levels identified in paragraphs (b)(1)(i)(A) and 

(B) of this section, an SDVO SBC entering into a joint venture agreement 

with another concern is considered to be affiliated for size purposes 

with the other concern with respect to performance of the SDVO contract. 

The combined annual receipts or employees of the concerns entering into 

the joint venture must meet the size standard for the NAICS code 

assigned to the SDVO contract.

    (2) Contents of joint venture agreement. Every joint venture 

agreement to perform an SDVO contract must contain a provision:

    (i) Setting forth the purpose of the joint venture;

    (ii) Designating an SDVO SBC as the managing venturer of the joint 

venture, and an employee of the managing venturer as the project manager 

responsible for performance of the SDVO contract;

    (iii) Stating that not less than 51% of the net profits earned by 

the joint venture will be distributed to the SDVO SBC(s);

    (iv) Specifying the responsibilities of the parties with regard to 

contract performance, source of labor and negotiation of the SDVO 

contract;

    (v) Obligating all parties to the joint venture to ensure 

performance of the SDVO contract and to complete performance despite the 

withdrawal of any member;

    (vi) Requiring the final original records be retained by the 

managing venturer upon completion of the SDVO contract performed by the 

joint venture;

    (3) Performance of work. For any SDVO contract, the joint venture 

must perform the applicable percentage of work required by Sec. 124.510 

of this chapter.

    (4) Contract execution. The procuring activity will execute an SDVO 

contract in the name of the joint venture entity or SDVO SBC.

    (5) Inspection of records. SBA may inspect the records of the joint 

venture without notice at any time deemed necessary.

    (c) Non-manufacturers. An SDVO SBC which is a non-manufacturer may 

submit an offer on an SDVO contract for supplies if it meets the 

requirements of the non-manufacturer rule set forth at 

Sec. 121.406(b)(1) of this chapter.



[69 FR 25268, May 5, 2004, as amended at 70 FR 14527, Mar. 23, 2005]