As prescribed in 5319.508(e), insert the following clause, substantially as written, in Section I:
USE OF JOINT VENTURES IN MEETING THE LIMITATIONS ON SUBCONTRACTING REQUIREMENT (AFMC) (NOV 2007)
(a) The Small Business Administration (SBA) regulations allow the cooperative efforts of joint ventures (formal or informal) in meeting the subcontracting limitations requirements. An informal joint venture relationship must be evidenced by an agreement between the business concerns explaining that the relationship is a joint venture and meets the Code of Federal Regulation’s (CFR) definition of joint venture. (13 CFR 121.103(h) and 13 CFR 125.6(h)(i))
(b) The subcontracting limitations requirement of FAR 52.219-14 may be fulfilled by formal or informal joint ventures meeting the requirements of the CFR. A copy of a formal joint venture agreement shall be provided as part of the offeror’s proposal. An informal joint venture will require a written agreement between the parties, which shall also be provided in the offeror’s proposal. For an informal joint venture, the agreement shall include, as a minimum,
(1) The official names of the parties to the joint venture and the signature of an officer or other individual authorized to bind the company,
(2) A statement that the joint venture is informal,
(3) The purpose of the agreement, and
(4) The effective dates/performance period of the agreement.
(c) The contracting officer shall request the local legal office to review the written agreement. Failure by the offeror to supply this documentation can lead to a determination that the offeror is nonresponsive.
(End of clause)
