A joint venture (JV) is an association of two or more businesses temporarily formed to carry out a single business activity or project for profit in which they combine their property, capital, efforts, skill and knowledge. The association is limited in scope and duration.
The benefit of forming a joint venture
If one or more of the businesses associated in a JV is a certified business enterprise (CBE), the JV may qualify to be certified under the Department of Small and Local Business Development's (DSLBD) CBE program.
Determination of a joint venture certification
The DSLBD determines the eligibility of a JV for certification on a contract-by-contract basis.
Important Notice: The Department does not certify joint ventures to meet small and certified business enterprise subcontracting requirements or to meet the small and certified business equity and development participation requirements.
How to apply
- Executed JV Agreement between companies;
- Executed Addendum to the JV Agreement (see exhibit 1);
- Work performance and Labor and Profit breakdown spreadsheet (see exhibit 2);
- Resumes for the key personnel of the joint venture;
- The most current audited financials for the non-CBE member(s) (e.g. audited statement for the year prior to the submission of the JV application);
- Documentation demonstrating past project performance of the businesses within the JV. Each member must demonstrate that the JV has the competence and expertise necessary to perform the type of work in connection with the opportunity the joint venture wishes to be certified (i.e. list of past or current projects that are similar to the project scope of the opportunity the JV wishes to pursue);
- Proof of bonding capacity for each member of the JV (i.e. letter from the bonding company that details on a single level what each party can bond). The CBE partner needs to demonstrate the ability to bond the percentage of the contract amount that is commensurate to their percentage interest in the JV (e.g. a 51% joint venture member needs to demonstrate the ability to bond at a minimum 51% of the contract amount)—if applicable;
- The bid bond (in the name of the JV)- if applicable;
- A copy of the solicitation the JV wishes to pursue; and
- Any other agreements between the parties regarding the operations of the JV.