Minority & Women Business Enterprise
Joint Venture Program
The overall intent and objective of a joint venture program is to "combine" two companies that can best complement each other's unique capabilities for the purpose of performing on a contract. This process can greatly and more effectively assist the district in providing a technical assistance vehicle for minority and women-owned firms to acquire "on-the-job" training, experience, and expertise.
The joint venture program can offer several benefits to minority and women-owned companies that will serve to enhance their capabilities and qualifications more readily, such as:
- Increase contract awards
- Increase gross revenues and annual profits
- Offer an opportunity to work on larger projects, which may have been out of reach previously
- Gain valuable experience and expertise from contract participation
- Offer opportunity to expand and/or diversify business services
- Promote networking and business development capabilities and relationships
- Provide growth and development in managerial and technical skills. The joint venture program is presented as an educational, business development, and training program for minority and women-owned businesses.
Joint Venture Program Objectives
The objective of the district's joint venture program is to further the development, growth, and capabilities of minority and women-owned businesses through "teaming arrangements" that allow such businesses to offer the district the best combination of performance, cost, and delivery of service.
Joint Venture Program Requirements
The district's joint venture program shall operate under the following requirements:
- A joint venture shall be an association of two or more companies combining their resources to form a new company, as a separate entity from the existing companies, for the sole purpose of performing a contract.
- The minority and women-owned participant(s) of the joint venture must be certified.
- The joint venture program does not replace a prime contractor's responsibility to satisfy applicable M/WBE Program requirements, including contract specific goals.
- District representatives may inspect the records of the joint venture.
- Any and all changes to a joint venture agreement must be forwarded to the district's M/WBE Department.
- The district shall require all joint venture program participants to submit a joint venture agreement. The agreement sets forth the purpose and operational aspects of the joint venture relationship.
A joint venture agreement should address and include at a minimum the following provisions:
- Set forth the purpose of the joint venture.
- Specifically designate the minority and woman-owned company as a managing partner of the joint venture, and an employee of the managing partner as a project manager responsible for performance on the contract.
- Clearly identify the respective roles and specific responsibilities of all parties to the joint venture with regard to contract performance, source of labor, and contract negotiation.
- Provide for the establishment and administration of a special bank account in the name of the joint venture.
- Itemize all major equipment, facilities, and other resources to be furnished by each party to the joint venture.
- A provision obligating all parties to the joint venture to perform and complete performance on the joint venture contract despite withdrawal of any member for any reason.