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Joint Venture
$2,500

A Joint Venture can increase a WOSBs capabilities as well as the firm's sales volumes. The main advantage is that the WOSB can work with a firm that has capabilities that either complement or surpass their own.

Because Trust and Rapport are very important in putting together a successful Joint-Venture generally firms must have some relationship with each other before they begin working on bidding on contracts.

Currently there are over 600 EDWOSB & WOSB Joint Venture and these JVs average almost $3 million per year in federal contracts. (See Table Below)

WOSB Industry Group Total WOSB Federal Sales Number of WOSB Firms Average WOSB Sales
EDWOSB Totals / Averages 1,077,138,337 369 2,919,074
WOSB Totals / Averages 761,037,937 274 2,777,510

Unique Characteristics of a WOSB JV

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  • 1
    The WOSB in the Joint Venture is required to receive at least 51% of the Revenue and Profits from the Arrangement.
  • 2
    Work can be subcontracted however the WOSB must perform as much work as its partner.
  • 3
    WOSB Joint Ventures do not have to be pre-approved by the SBA.
  • 4
    WOSB Joint Ventures get submitted to the SBA WOSB Program Repository, unlike other JVs that get submitted and approved by the SBA.
  • 5
    JV can often be used to obtain positions on GWAC, IDIQ, or BPAs.

Special Rules of WOSB JV

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  • 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).

Forming a JV can be a great way for WOSB firms to gain experience in federal contracting, build their past performance while gaining profitable business. Please feel free to give us a call if you have any questions about WOSB Joint Ventures.