In this episode Jenny Clark talks about GovCon Joint Venture Accounting for All Small Mentor-Protégé Program.

 

 

What is a Joint Venture?

Joint Ventures in Federal Contracting

• Two (or more) Companies create a third company
• Usually a legal entity, new corporation
• Purpose to go after Federal Contractors with combined strength
• Joint Venture must meet criteria for federal contracting (SAMs registration, DCAA compliance, facility security clearance, etc.)

What is the All Small Mentor-Protege

All Small Mentor-Protégé Program

• Online Application for approval by SBA
• Turnaround usually 30 to 90 days
• Qualifications of the Protégé apply to the JV
• May have more than one Protégé
• Method for Small Business to lean on larger company for financial strength and organization
• Method for “Other Than Small” to team on small business and other statuses (WOSB, VOSB, Hubzone)
• 8A Mentor-Protégé still available with different rules

How Would a Joint Venture Help Your Company?

Benefits of Joint Ventures

• SUSTAINABILITY: Manage Your Size Standards – longer term contracts without exceeding your NAICS codes
• SCALABILITY: Combined strengths of JV Partners
• BANKABILITY: JV invoices and collects, but has minimal costs itself
• CREDIT ABILITY: PEERS – not Prime/Sub – MITIGATION of RISK
• EXTENDABILITY: Combined team to pursue other activities
• SHARE ABILITY: team stronger than individual members

How Would a Joint Venture Help Your Company?

• More Ways to Work with Partners on PEER level
• One More Strategy to Broaden Your Base
• Formalize Long Term Relationships

How does Joint Venture Accounting Work?

• Joint Venture WINS Contract
• ADMINISTRATIVE Function in the Joint Venture usually managed by one of the partner organizations
• Partner A performs monthly work and invoices JV
• Partner B performs monthly work and invoices JV
• ADMIN at JV combines invoices and submits for payment
• Customer pays invoices to JVs
• Payment deposits in JV account
• ADMIN processes payment to Partners for monthly invoices

Ask Yourself!!

Do you have business teaming relationships with larger companies who might consider a Joint Venture?

What would you need to learn about All Small Mentor Protégé to consider it fully?
 
Have you identified larger opportunities worth pursuing if you had a long term partner?

 

Would you want to participate in our JV Boot Camp Program?

E-mail me: jwclark@solvability.com

 

 

 

To contact Jenny W Clark

CEO, Solvability, Inc

www.solvability.com

Phone	256-882-6276
E-mail	jwclark@solvability.com
Linkedin	Solvabilityjwc
Twitter	Solvabilityjwc

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