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Effective October 28, 2022, new procedures will be required to verify joint venture parties through amended representations. The new procedures address a disconnect between Small Business Administration (SBA) and Federal Acquisition Regulation (FAR) regulations that came into force in October 2020. The new and revised language requires joint ventures to “enter the name and unique identifier of each party to the joint venture” when completing FAR 52.212-3 and/or 52.219-1 (87 FR58219).
However, the awards administration system (SAM.gov) has not yet fully integrated the new wording, and the interface between SAM.gov and SBA has not yet reflected the new wording.
To address this disconnect, on October 26, 2022, the Principal Director of Prices and Contracts at the Department of Defense issued Class Deviation 2023-O0001. Department of Defense (DoD) contracting officers are now directed to include the following statement in all solicitations:
Small business joint venture proponents must, along with their proposals, comply with FAR Solicitation Section 52.212-3, paragraph (c), Proponent’s Representations and Certifications – Commercial Products and Commercial Services, and FAR Solicitation Section 52.219, paragraph (c). You must submit the requested representations. -1, representation of small business programs under 52.204-8(d) and 52.212-3(b) in the following categories:
- small business;
- Disabled Veteran-Owned Small Businesses.
- Women-Owned Small Businesses (WOSB) under the WOSB program.
- Small businesses owned by economically disadvantaged women under the WOSB program.Also
- Small businesses in historically underutilized business zones.
Proposers should read the invitation carefully and respond accordingly. They should be prepared to identify each party to the joint venture by name and unique identifier. This allows the contracting officer to assess whether the joint venture should be referred to her SBA for size or socioeconomic status determinations.
The content of this article is intended to provide a general guide on the subject. You should seek professional advice for your particular situation.
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