Want To Start a WOSB Joint Venture? Then Fulfill All The Necessary Requirements

 Women-owned small businesses are growing gradually in the federal market of the United States. It is because they are getting enough support from the WOSB program which is developed by the U.S. government. The main goal of the government is to help WOSBs to thrive in the federal market by getting recognized. That is why the government has developed programs and provides other benefits to the businesses that fall under the category of the WOSB. However, in order to get support from the government, businesswomen need to make their companies fulfill all the requirements and must meet all the eligibility criteria before obtaining the required certifications. Due to all these support and government contracting opportunities, WOSBs can obtain federal contracts easily with fewer complications. If you are a female citizen of the United States and you own a small business then you should consider obtaining Women-owned business certifications. The government has set several categories where businesses can fit in. 




Women-owned small businesses in the United States can also start joint ventures. In order to form a WOSB joint venture, you will need to meet certain requirements and become eligible. All the agreements are monitored and regulated by the Small Business Administration (SBA) of the United States 

In this blog, we are going to discuss the minimum requirements that must be accomplished in order to form a WOSB joint venture. So keep reading…


Requirements for WOSB joint venture  



In 2010, the Small Business Administration (SBA) finalized rules regarding the women-owned businesses program and set up certain procedures for forming a joint venture. The job Act of 2010 and the new rewrite of the rules of SBA published in march 2011 contributed to an overall improvement of the administration of the small business programs and the protection afforded small businesses. 

A joint venture may submit an offer on a WOSB or EDWOSB requirement if the EDWOSB or WOSB joint venture meets all the following requirements:

The combined annual receipts or employees of the concerns entering into the WOSB joint venture must meet the applicable size standard which is corresponding to the NAICS code assigned to the contract. 

The WOSB or EDWOSB participant of the joint venture must be designated in the Central Contractor Registry and the ORCA as a WOSB or EDWOSB.

The parties to the joint venture should enter into a written joint venture agreement. The joint venture must contain a provision.

Setting the purpose of the joint venture. 

Designating WOSB or EDWOSB as the managing venture of the joint venture and an employee of the managing venture as the project manager responsible for the performance of the contract. 

State that not less than 51% of the net profits earned by the joint venture will be distributed to the WOSB or EDWOSB. 

Specifically mentioning the responsibilities of the parties with regard to the performance of the contract, sources of labor, and negotiation of the WOSB or EDWOSB contract.

Requiring the original final records be retained by the managing venturer upon completion of WOSB or EDWOSB contract performed by the joint venture. 

The joint venture must perform the applicable percentage of work that is required of the WOSB or EDWOSB offerors. 

The procuring activity will execute the contract in the name of the WOSB or EDWOSB or joint venture. 

The WOSB or EDWOSB entity should provide a copy of the joint venture agreement to the contracting officer. 

Limitations are set on subcontracting rule provides that for services other than construction the joint venture must perform 50% of the labor money, 15% of the labor money of the contract for general construction, and 25% of the contract for specialty construction. 

Please make sure to carefully negotiate any agreement that you enter into with another firm. A carefully drafted instrument whether a joint venture, subcontract, teaming agreement, or other documents will help avoid disagreements down the road and assist in a mutually beneficial business relationship that consists of cooperation and is hopefully profitable on both sides. Always consult with a competent legal advisor when drafting any legal agreement. 



Conclusion 


Simply follow the requirements that are mentioned above to start a WOSB joint venture. By starting a joint venture you may achieve faster growth in the federal market.  

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