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Before we get started make sure you subscribe to our video channel we're going to publish more videos about important topics and federal government contracting that you won't want to miss many government contractors understand that using teaming agreements and joint ventures can increase your chances of getting federal government contracts however 31% of those companies are not quite familiar with the nuances and landmines that the competition can use to try to get the contract revoked in a bid protest here are four important tips to keep in mind when using teaming agreements and joint ventures number one be careful not to violate the limitations on subcontracting rules despite the new SBA rules in 2021 small businesses can still forfeit the contract award by not complying with the limitation on subcontracting rule generally the prime has to perform at least 51 percent of the contract cost but depending on your industry classification code it could be less - the new sba rules published in 2021 are not intended to completely eliminate small business size protests as many of you may already know the SBA revamped its small business teaming and joint venture rules to arguably minimize the possibility of affiliation however despite the more lacks requirements your company can still be found affiliated with the other company if that company exercises too much control over the contract 3 similarly situated small business rules are still relatively new you should be familiar with them as the prime contractor you can still avoid affiliation if you're teaming partner or joint venture partner is considered a similarly situated small business these are very fact-based relationships and should be approached with caution for joint ventures not part of the SBA 8a program must still meet the statutory requirements many companies mistakenly believe that if your company is not an 8 a company that any joint venture agreement will suffice this is far from the truth your joint venture is still subject to review and must still meet statutory requirements these are only a few of the key points that arise with teaming agreements and joint venture arrangements when it comes to federal government contracting to keep your contract or if you have grounds to challenge an award call our government contract lawyers at Watson & Associates LLC we help federal government contractors in all states.