D.C. Mun. Regs. r. 27-809

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-809 - APPLICATION FOR JOINT VENTURES

809.1

An applicant for certification as a joint venture shall:

(a) Submit a complete application, as prescribed by the Department, no later than fifteen (15) business days before the solicitation closes;

(b) 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 venture members is a certified business enterprise ("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) Contain a provision that all other agreements between the joint venture parties, concerning the joint venture and the joint venture seeking certification, has been provided to the Department;

(10) Specify the responsibilities of the parties in at least the areas of negotiations with the owners, subcontract negotiation, contract, and subcontract performance; and

(11) Indicate that the CBE shall perform services of the joint venture, receive profits of the joint venture, provide labor hours required of the joint venture, and 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.

(c) 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 (1)-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 joint venture wishes to be certified.

(d) Submit all other agreements between the parties regarding the operations of the joint venture;

(e) Submit the most current audited or certified financial statement for the non-CBE participant by an independent auditor that attests to the statement's compliance with generally accepted accounting principles.

(f) Submit its certified payroll upon request;

(g) Submit, if applicable, its bonding limit and the name of its bonding company; and

(h) Permit the Department to enter and conduct an onsite inspection or reinspection of the proposed joint venture's business premises.

809.2

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 members as a CBE.

809.3

Unless a joint venture's certification is revoked or relinquished pursuant to the Act and this chapter, a certified joint venture will retain its certification for the duration of the contract awarded through the solicitation for which it was certified, including any extension of the contract.

809.4

The Department shall deny certification of any joint venture whose joint venture agreement lacks any of the provisions in § 809.1.

809.5

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

809.6

Upon receipt of an application for certification as a joint venture, the Department will follow the process outlined in § 807.

809.7

If the joint venture, having the same participants and structure, has been certified by the Department on a previous government-assisted project within the last calendar year, and submits a complete application at least seven (7) business days before the solicitation closes, the Department will make an expedited determination, provided that:

(a) If the application is incomplete or lacks the required documentation and verification, the Department shall notify the joint venture that additional actions or materials are needed in order to complete the application; and

(b) Within three (3) calendar days of any notification from the Department requesting additional actions or materials under paragraph (a) of this subsection, the joint venture shall complete any requested actions and provide any requested materials.

809.8

Section 801. 5(a) of this chapter shall not apply to applications for joint venture certifications.

D.C. Mun. Regs. r. 27-809

Final Rulemaking published at 39 DCR 9052 (December 4, 1992); as amended by Final Rulemaking published at 56 DCR 8439 (October 23, 2009), incorporating by reference text of Proposed Rulemaking published at 56 DCR 5622, 5630 (July 10, 2009); amended by Final Rulemaking published at 70 DCR 10970 (8/11/2023)

Authority: Section 2372 of the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005 (Act), effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.72 )(2009 Supp.) and Mayor's Order 2009-58, dated April 15, 2009.