(2) A joint venture agreement is only permitted if a group 8 (a) does not have the capacity to perform the contract on its own and the agreement is fair and equitable and will be very useful for concern 8 (a). However, if the SBA concludes that a Group 8(a) brings very little expertise to the joint venture relationship in terms of resources and expertise, with the exception of its Status 8a, the SBA will not approve the joint venture agreement. 2. In an 8a Joint Undertaking, 8a participants shall carry out at least 40% of the work carried out by the Joint Undertaking. The work done by the 8 (a) participants of the Joint Undertaking must be more than just an administrative function. 4. The finding that the participant or participants of 8(a) must receive benefits from the Joint Undertaking corresponding to the work carried out by the 8(a) participants; The SBA estimates that the savings from eliminating this requirement will be approximately $59,500. There are currently about 4,500 8 (a) participants. About 10% of them are in a joint venture created to apply for an 8(a) distinction. The process of revising the Joint Undertaking Agreement is very factual and the time spent may vary. It is important to note that the proposed removal of the requirement that Joint Undertaking Agreements 8(a) must be approved by the SBA only applies to joint ventures applying for competitive awards of 8(a). Joint ventures benefiting from an allocation of exclusive resources in point 8(a) should submit their joint venture agreement for approval prior to allocation. The proposed rule justifies this distinction by stating that 8 (a) the attribution of exclusive sources does not allow for demonstrations of size and that, without any demonstration of size, the only way to ensure that a joint venture complies with Rules 8 (a) is to have the joint venture agreement approved prior to the award.
5. Provide for the establishment and management of a specific bank account in the name of the Joint Undertaking. This account must require the signature of all parties to the joint venture or trustees for payment purposes. All payments due to the Joint Undertaking for the performance of a contract 8 (a) shall be deposited in the special account; all costs incurred under the contract are also paid by the account; (i) the is a mentor and protégé 8(a) with a mentor-protégé agreement approved under Program 8(a); (j) Certification of conformity. . . . .