{"data":{"id":"us-dc/d.c.-code-2-218.39a","jurisdiction":"us-dc","citation":"D.C. Code § 2-218.39a","heading":"Certified joint venture.","body":"(a)\nA joint venture shall be eligible for certification as a certified joint venture if the joint venture intends to submit a response to solicitation in which the joint venture will provide goods or perform services, and has a member that owns a majority or minority interest in the joint venture and meets the definition of a certified business enterprise pursuant to § 2-218.02(1D). A joint venture shall be certified for a specific solicitation. The Department shall promulgate regulations that provide for a simplified procedure for the certification of a joint venture if the joint venture, having the same participants and structure, has been certified by the Department on a previous government-assisted project.\n\n(a-1)\nThe Department shall have the authority to certify a joint venture for all public, public-private, and private projects.\n\n(b)\nFor the purposes of this section, the term:\n(1)\n“Majority interest” means:\n(A)\nMore than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or more than 50% of the total value of all of the joint venture business enterprise;\n(B)\nA financial contribution to the enterprise of more than 50%; and\n(C)\nMore than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise.\n(2)\n“Minority interest” means:\n(A)\nLess than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or less than 50% of the total value of all of the joint venture business enterprise;\n(B)\nA financial contribution to the enterprise of less than 50%; and\n(C)\nLess than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise.\n\n(c)\nIn determining whether a joint venture is eligible to be certified as a certified joint venture, the Department shall consider the totality of the circumstances, including the defined contributions and defined benefits provided by each member of the joint venture, which shall be demonstrated by the following information:\n(1)\nOrganizational documents of the joint venture, including the joint venture agreement, the operating agreement, and any other agreement between or among the members of the joint venture; and\n(2)\nDocumentation of the financial contribution of each joint venture member, including access to bank records and organizational resolutions and agreements.\n\n(d)\nDecisions concerning the affairs of the business shall require the consent of those members with voting rights holding at least a majority interest in the business.\n\n(e)\nA joint venture shall relinquish its status as a certified joint venture if it has not been awarded the contract or if the solicitation has been withdrawn or cancelled.\n\n(f)\nUnless a joint venture’s certification is relinquished pursuant to subsection (e) of this section, a certified joint venture shall retain its certification for the duration of the contract awarded through the solicitation for which it was certified, including any extension of the contract.\n\n(g)\nA joint venture shall not be certified:\n(1)\nTo meet the small and certified business enterprise subcontracting requirements set forth in § 2-218.46; or\n(2)\nTo meet the small and certified business equity and development participation requirements set forth in § 2-218.49a.\n\n(h)\nA certified joint venture shall receive preference points or price reductions in accordance with § 2-218.43 as follows:\n(1)\nIf the Department determines that a certified business enterprise owns a majority interest in the joint venture, the joint venture shall receive the preference points or price reductions that the certified business enterprise would receive in accordance with § 2-218.43; provided, that if the certified joint venture is formed to serve as a general contractor on a project, the joint venture shall be required also to establish to the reasonable satisfaction of the Department that:\n(A)\nThe certified business enterprise owner with majority interest in the joint venture has bonding capacity equal to at least 51% of the total contract amount;\n(B)\nThe individual primarily responsible for project decisions, such as the project executive, shall be provided by the certified business enterprise; and\n(C)\nAt least 50% of the staff that the joint venture will devote to the project will be provided by the certified business enterprise.\n(2)\nIf the Department determines that a certified business enterprise owns a minority interest in the joint venture, the Department’s certification of the joint venture shall indicate such and specify the preference points or price reductions that the joint venture shall receive, but in no event shall the preference points or price reductions exceed 50% of the preference points or price reductions that would otherwise be applicable to the certified business joint venture partner.\n(3)\nSimilar to the requirements set forth in paragraph (1)(A), (B), and (C) of this subsection, the Department may adopt regulations that establish additional industry-specific requirements for the certification of a joint venture that has a majority interest held by a certified business enterprise.\n\n(i)\n(1)\nNo later than 60 days after the end of each operating quarter of the calendar year, a joint venture shall submit quarterly income statements to the Department showing all income and contract receipts and expenses, including the:\n(A)\nFees for services and labor;\n(B)\nSalaries of the principals of the joint venture; and\n(C)\nDistribution of profits.\n(2)\nNo later than 45 days after the completion of the project, the joint venture shall submit a project-end income statement to the Department with a statement of final profit distribution.","path":["Title 2. Government Administration.","Chapter 2. Government Contracts and Business Development.","Subchapter IX-A. Small and Local Business Enterprise Development and Assistance.","Part D. Programs for Certified Business Enterprises.","Subpart 1. Certified business enterprises."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/2-218.39a","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"55199c48fd0f5f089d4c6d9c4fda8ce5efd4ae58a7561296aa61771eb5e47987","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-2-218.39","next":"us-dc/d.c.-code-2-218.41"},"notice":"GroundRules: Original legal text. Not legal advice."}