For many women owned business across the United States, a joint venture is like an everyday affair. Hence, a WOSB JV is quite popular in the federal marketplace. If you are wondering, how to start off as a WOSB venture when your funding is not so strong, you can start off as a WOSB JV with another small business.
In order to submit an offer as a JV, the WOSB must met the following requirements:
· Size: Collective annual receipts or employees of WOSB JV must meet NAICS code assigned to contract
· The primary managing venture is the Women owned business
· Project management responsibilities should rest upon the women venture
· Woman Owned Small Business must receive at least 51% of net profits
· Joint Venture must be in writing
· Joint Venture meets subcontracting limitations
· And, unlike other Small Business programs, these WOSB JV agreements do not have to be approved by SBA.
The Requirements
Keep in mind , though SBA does not oversee the WOSB JV, agreements, all these are monitored and regulated by the SBA. And, failure to adhere to the minimum standards will all but insure losing a protest should one be filed for affiliation in the event the joint venture is a challenged successful offer or.
The SBA finalized rules regarding the WO and EDWOSB program and set up the following procedures for forming a joint venture. A WOSB JV may submit an offer on an EDWOSB or WOSB requirement if the joint venture meets all of the following requirements:
1. Except as provided in §121.103(h)(3) and exceptions to the affiliation rule, the combined annual receipts or employees of the concerns entering into the joint venture must meet the applicable size standard corresponding to the NAICS code assigned to the contract
2. The WOSB participant of the joint venture must be designated in the Central Contractor Registry and the ORCA (Representations and Certifications) as an EDWOSB or WOSB
3. Both the parties of the WOSB JV must enter into a written joint venture agreement. The joint venture agreement must contain a provision.
4. The responsibilities of the parties with regard to contract performance, sources of labor, and negotiation of Contract should be specified.
5. Final and original records should be retained by the managing venturer upon the completion of contract as per the clauses mentioned in the WOSB JV agreements.
6. The joint venture must perform the applicable percentage of work required of the EDWOSB or WOSB offers in accordance with §125.6 of this chapter (limitations on subcontracting rule)
7. The procuring activity will execute the contract in the name of the WOSB or the WOSB joint venture.
8. The WOSB or EDWOSB must provide a copy of the joint venture agreement to the contracting officer.
Limitation of the WOSB JV Contract
As per the limitations mentioned in the Subcontracting agreement, the joint ventures for every Services other than Construction, must perform 50% of the labor dollars (cost of the contract after materials generally), 15% of the labor dollars of the contract for general construction and 25% of the contract for specialty construction (Specialty construction is generally defined as construction with a NAICS size limitation under $14 Million in annual gross receipts).
Last but not the Least
Do not forget to negotiate each and every detail of your WOSB JV contract before you actually sign up for the agreement. No matter what you are agreeing for, a joint venture, partnership or just leveraging a team, an agreement or a carefully drafted document will help you avoid disagreements down the road and assist in nurturing profitable partnerships in the long run. Remember to seek professional legal advices for streamlined operations.
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