WOSB and EDWOSB firms that are engaging in Joint Venture Activity are seeing a boost in their federal sales. See Table for Results for 2019:
| Type | Sales | Number of Firms | Average Sales |
|---|---|---|---|
| WOSB | 30,605,371,130 | 65,793 | 465,177 |
| EDWOSB | 9,160,053,157 | 24,271 | 377,407 |
| JV WOSB | 1,110,949,952 | 1,582 | 702,244 |
| JV EDWOSB | 902,381,663 | 886 | 1,018,489 |
Pertinent information regarding WOSB / EDWOSB JVs
1. Does the joint venture have to be approved by SBA?
No. Unlike in the 8(a) BD Program, the joint venture does not have to be pre-approved by SBA.
2. Does the joint venture get submitted to the WOSB Program Repository?
Yes.
3. What percentage of Profits is the EDWOSB or WOSB required to review as part of the JV?
51% or more.
4. Who is required to be the managing member of the JV venture?
The WOSB or EDWOSB firm.
5. Can the Joint Venture subcontract part of the contract and if so what amount?
Subcontracting - A WOSB or EDWOSB JV has to perform the same amount of work a WOSB or EDWOSB would have to perform on the same contract. The amount of work varies by industry type:
Service Contracts - (non-construction), the WOSB/EDWOSB must perform at least 50% of the cost of the contract for personnel with its own employees.
Supply Contracts - (if you are the manufacturer), the WOSB/EDWOSB must perform at least 50% of the cost of manufacturing the supplies or products (not including the cost of materials).
General Construction Contracts - the WOSB/EDWOSB must perform at least 15% of the cost of the contract with your own employees (not including cost of materials).
Specialty Construction contracts - the WOSB/EDWOSB must perform at least 25% of the cost of the contract with your own employees (not including cost of materials).
I hope this clears up misnomers about WOSB and EDWOSB JVs. If you would like to have a JV setup we would be happy to assist you.
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