[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR125.15]

[Page 442-443]
 
                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:

[[Page 443]]

    (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]