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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 27. CONTRACTS AND PROCUREMENT |
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Chapter 27-8. LOCAL, SMALL AND DISADVANTAGED BUSINESS ENTERPRISES CONTRACTING |
Section 27-811. APPLICATION FOR JOINT VENTURES
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811.1 An applicant for certification as a joint venture shall:
(a) Submit an executed copy of the applicant’s joint venture agreement which must:
(1) Specify in reasonable detail the purpose of the joint venture, including the specific procurement, solicitation, or project the applicant wishes to be certified to perform;
(2) Identify the parties to the joint venture and define their respective obligations, rights, and responsibilities, including the management structure, control of the joint venture, financial contributions, bonding requirements, service and labor contributions, revenue or fees for services or labor, and distribution of profits;
(3) Demonstrate that one of the joint venturers is a CBE or an applicant for CBE certification;
(4) Provide for the establishment and administration of a 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 approved by the CBE member of the joint venture management committee;
(5) Contain an itemized description of all major equipment, facilities, and other resources to be furnished by each participant in the joint venture with a detailed schedule of costs;
(6) Contain a provision indicating that the CBE’s interest in the joint venture shall not be reduced or diluted;
(7) Contain a provision indicating that the CBE’s financial risk is commensurate with its percentage interest in the joint venture;
(8) Contain a provision indicating that the joint venture agreement is the controlling agreement between the parties regarding interest, ownership, control, responsibilities, duties, and functions of the parties and the joint venture agreement shall prevail if there is any conflict between the joint venture agreement and any other agreement between the parties;
(9) Specify the responsibilities of the parties in at least the areas of negotiations with the owners, subcontract negotiation, contract and subcontract performance; and
(10) Indicate that the CBE shall perform services of the joint, receive profits of the joint venture, provide labor hours required of the joint venture, or perform other work for the joint venture as approved by the Department that is at a minimum equal to its percentage of ownership interest in the joint venture.
(b) Submit additional information that must:
(1) Inform the Department of whether the CBE has relinquished its ownership interest in any joint venture within the one-year period prior to the application date; and
(2) Demonstrate that each participant in the joint venture has the competence and expertise necessary to perform the type of work in connection with which the applicant wishes to be certified.
(c) Submit all other agreements between the parties regarding the operations of the joint venture;
(d) Submit the most current audited financial statement for the non-CBE participant;
(e) Submit its certified payroll upon request; and
(f) Permit the Department to enter and conduct an onsite inspection or re-inspection of the applicant's business premises.
811.2 An application for joint venture certification may be submitted to and reviewed by the Department simultaneously with an application for certification of one or more of the individual venturers as a CBE.
811.3 The Department may deny certification of any joint venture whose joint venture agreement lacks any of the provisions in § 811.1.
811.4 The joint venture shall make its records available to the Department at any time deemed necessary by the Department.
811.5 The Commission may revoke the certification of a joint venture for failure to comply with the Act and these regulations.
811.6 Upon receipt of an application for certification as a joint venture, the Department will follow the process outlined in § 806.