123:2-16-14 Joint venture.

 

 

 

123:2-16-14                 Joint venture.

 

 

 

(A)The equal opportunity division of the department of administrative services shall require the following criteria of two or more companies seeking certification as an EDGE joint venture business enterprise:

 

(1)At least one of two or more businesses partnered or otherwise joined together for obtaining a contract award pursuant to section 123.152 of the Revised Code is certified as an EDGE business enterprise.

 

(2)The companies created the joint venture pursuant to a joint venture agreement, as described in paragraph (B) (5) of this rule.

 

(3) The business relationship commercially benefits all parties to the joint venture.

 

(4)The EDGE certified business owner must control at least fifty-one per cent of the joint venture operations, including the management decisions and policies. The EDGE business owner shall have an interest in the capital, assets, and profits and losses of the joint venture at least proportionate to their capital investment in the venture, but not less than thirty per cent.

 

(B)The business partners seeking certification as an EDGE joint venture business enterprise shall submit an application to equal opportunity division of the department of administrative services on a form and in the manner prescribed by the division. All of the partners must sign the application and provide the following information:

 

(1)The name of the individual who has the power of attorney to act for and bind all of the joint venture partners.

 

(2) The mailing address and street address of the joint venture.

 

(3)The new internal revenue service issued tax identification number of the joint venture.

 

(4)Proof of bond or insurance, if required that binds the joint venture and jointly and severally binds all members of the joint venture.

 

(5) The joint venture agreement shall contain all of the following:

 

(a)Name of project and contract number, if known,

 

(b) Location of project,

 

(c) Bid date of project,

 

(d)Type of project,

 

 

 

 

(e) Description of job to be performed by other joint venture partners,

(f)Percentage of the project to be subcontracted, if any, and actual work being done by the subcontractor, or goods and services to be performed or bought,

(g) Approximate date contract will start if successful bidder and approximate completion date,

(h) Type of equipment to be used on a project, or the goods and services to be supplied and performed.

(i) Work composition by expertise or trade of all joint venture partners,

(j) Equipment to be used that is owned by the EDGE enterprise applicant,

(k) Equipment to be used that is owned by the other company or companies in the joint venture,

(l) Name of company from which joint venture will lease equipment,

(m) The amount of contribution provided by each joint venture partner,

(n) The name of the individual who has the power of attorney to act for and bind all of the joint venture partners,

(o) Narrative description of the business relationship of each party, including how management, business, and operational decision making will occur, the work composition of each party, the work to be performed by each party, and the source and use of shared resources and business equipment.

(C) Failure to provide requested information in a timely manner may delay the processing of the certification application.

(D) Except as otherwise required by law, all financial statements and records submitted by the applicants to the equal opportunity division shall be considered confidential and shall not be released to the public unless such documents are used in an administrative hearing, or appeals thereto, or the applicants approve, in writing, to the release of the statements and records.

(E) Upon determining that the business partners have demonstrated qualification for certification as a joint venture in the EDGE program, as outlined in this rule, the equal employment opportunity coordinator of the department of administrative services shall certify the business.

(F) If the equal employment opportunity coordinator of the department of administrative services determines that the joint venture does not meet the criteria set forth in this chapter, the division shall notify the applicants of its decision by mail. The notification shall include the applicant's appeal rights as set forth in Chapter 119. of the Revised Code.

(G) The equal opportunity division of the department of administrative services shall have the right to conduct on site inspections at any location of the businesses seeking joint venture certification. The division shall give appropriate notice.

(H) In order to facilitate prompt certification, the joint venture agreement may be submitted and approved prior to the issuance of a state bid or request for proposal. The joint venture shall be a for-profit entity and need not be in business one-year prior to submission of the application.

(I) The equal employment opportunity coordinator of the department of administrative services shall approve a joint venture application for a particular procurement category. The certification is for up to one year.

(J) If any change occurs that affects the joint venture as originally approved by the equal opportunity coordinator, the joint venture partners must provide the equal opportunity division of the department of administrative services with the information detailing the change in circumstances within three business days of that change, for decision review and approval.

Effective:                                11/26/2004 R.C. 119.032 review dates:                           11/26/2009

CERTIFIED ELECTRONICALLY

Certification

11/15/2004

Date

Promulgated Under:   119.03

Statutory Authority:   123.152

Rule Amplifies:           123.152