What is a Joint Venture?
Also known as: JV
A joint venture (JV) is a separate business entity formed by two or more companies to pursue and perform contracts together as a single offeror. In federal contracting, JVs are commonly used to combine capabilities and — under SBA rules — to let small firms pursue larger work.
Why firms form JVs
A JV lets partners pool past performance, capacity, and resources to bid work neither could win alone. Under the SBA Mentor-Protégé Program, an approved JV between a mentor and a small protégé can be treated as small for set-aside purposes.
SBA rules govern how JVs are structured — ownership, management, profit splits, and work performance — to prevent large firms from misusing small-business status.
Frequently asked questions
Is a joint venture treated as small for set-asides?
Generally, a JV qualifies as small if each partner is small — or, under an approved mentor-protégé agreement, if the protégé is small — provided the JV meets SBA's structural and performance requirements.
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