Section 27-701. CERTIFICATION OF JOINT VENTURES

 

701.1The Commission shall determine the eligibility of a joint venture for certification on a contract-by-contract basis.

 

701.2The Commission may certify joint ventures involving a MBE where such an agreement will contribute to minority business development and will permit the offering of a proposal on a specific contract where a MBE by itself lacks the necessary capacity to fulfill the requirements of the proposed contract, due to factors including, but not limited to, an inability to secure adequate bonding or an inability to obtain financial or technical resources.

 

701.3The MBE participating in the joint venture shall represent not less than fifty percent (50%) each of the management aspect, control aspect, and ownership aspect of the joint venture, provided that where certification of the joint venture will further the MBE, the Commission may waive any or all of these requirements.

 

701.4A joint venture shall not be certified under this section unless the participating MBE has been individually certified in accordance with the provisions of the Act and the requirements of chapters 6 and 7 of this title.

 

701.5Individual certification of a MBE participating in a joint venture shall not automatically qualify the joint venture for certification.

 

701.6If a MBE has not been certified by the Commission prior to its participation in a joint venture, the applications for individual certification of the MBE and of the joint venture may be submitted to and reviewed by the Commission simultaneously.

 

701.7Every joint venture agreement shall include provisions which do the following:

 

(a)Specify the purpose of the joint venture;

 

(b)Identify parties to the joint venture and define their respective obligations and responsibilities;

 

(c)Provide that not less than fifty percent (50%) of the net operating profits after taxes earned by the joint venture will be distributed to the minority business enterprise;

 

(d)Provide for the establishment and administration of a special separate bank account in the name of the joint venture into which all funds received will be deposited and through which all expenses will be paid, and which requires all withdrawals and deposits to be signed by all members of the joint venture management committee;

 

(e)Contain an itemized description of all major equipment, facilities, and other resources to be furnished by each venturer with a detailed schedule of costs; and

 

(f)Specify the responsibilities of the parties in at least the areas of subcontract negotiation and contract and subcontract performance.

 

701.8The Commission may deny certification of any joint venture whose joint venture agreement lacks any of the provisions stipulated in §701.7.

 

701.9The joint venture shall make its records available to the Commission at any time deemed necessary by the Commission.

 

701.10The joint venture shall submit to the Commission quarterly financial statements showing cumulative contract receipts and expenditures (including salaries of the joint venture principals) no later than forty-five (45) days after the end of each operating quarter.

 

701.11The joint venture shall submit to the Commission a project-end profit and loss statement no later than ninety (90) days after completion of the contract with a statement of final profit distribution.

 

701.12The Commission may revoke certification if it determines that incorrect data was submitted to the Commission in the application or supporting documents.

 

source

Final Rulemaking published at 26 DCR 2771, 2781 (December 21, 1979); as amended by Final Rulemaking published at 33 DCR 5664 (September 12, 1986).