JV

Joint Venture

Business Terms

Definition

A business arrangement where two or more parties agree to combine resources for a specific project while retaining separate identities.

More Information

Joint ventures allow small businesses to compete for larger contracts by combining capabilities with other firms. In federal contracting, specific rules govern how JVs can be formed and claim small business status. An 8(a) JV mentor-protégé arrangement allows the JV to qualify as small even with a large business partner.

Example

An 8(a) firm forms a joint venture with a large prime contractor to compete for a $20 million construction project.