Joint Ventures

The use of joint ventures to win U.S. Government contracts is increasing.

Based on evidence from recent awards, the U.S. Government appears very receptive to this type of structure.

One of the most significant challenges to a successful joint venture revolves around financing.

Neither partner wants to put capital into the joint venture, nor do they want to seek their bank’s approval to guarantee the joint venture’s debt.

And if financing is not structured appropriately, the joint venture partners run the risk of triggering affiliation rules that could jeopardize the award and lead to protests.

RCA specializes in financing joint ventures and teaming arrangements involving a small prime contractor and a large subcontractor teaming partner.

By using RCA’s program, the joint venture partners:

  • Do not need to commit capital
  • Do not need to seek their bank’s approval to guarantee debt
  • Eliminate the risk of triggering affiliation rules
  • Do not need to provide corporate or personal guarantees