“The SBA recently proposed a rule that would amend the infamous three-in-two (AKA 3-in-2) rule for joint ventures. SBA’s current regulations provide that a joint venture can be awarded no more than three contracts over a two-year period. While SBA plans to keep the two-year lifespan for joint venture awards, it plans to get rid of the three contract maximum.”
“The SBA released the proposed rule in November with the aim of streamlining small business regulations. The elimination of the three-in-two rule was just one of SBA’s major revisions to the regulations…”
“SBA explains that the three-in-two rule was put in place to “capture SBA’s intent on limited scope and duration,” as “SBA believes that a joint venture is not an on-going business entity, but rather something that is formed for a limited purpose and duration.”
“But it appears that SBA has realized that a limit on the lifespan of joint ventures alone is sufficient to meet this goal…”
“The rule was proposed in response to growing concerns within the government contracting industry that “the three-contract limit unduly restricts small business and can disrupt normal business operations.” And this was clearly not SBA’s intent…” Read the full post here.
Source: SBA Proposes to Remove the “Three” from the “Three-In-Two” Rule for Joint Ventures – By Nicole Pottroff, December 4, 2019. Koprince Law LLC.
