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Joint Venture (JV), Teaming Agreement (TA), and Special Business Units (SBU's)

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Interest has been increasing with many members on this topic. I have been receiving increasing requests for information pertaining to the cost, pricing, and audit considerations for JV's and TA's as well as clarification on what an SBU is.  So I have decided to share the many audit, cost and pricing issues to be considered.  And there are a lot!  As a result, this topic will be covered in several parts.  I would recommend you share the information with your CPA's, Audit/Accounting Staff, and Legal Representatives.


Often, firms go into great detail on the technical and legal side of these arrangements but fail to put the effort and resources in ensuring the arrangements will stand muster under potential future audit and review.  So, here I am to put this forth for your information and to show you where to go to find out for yourself what you and your support personnel need to know. 


In this part we will start by discussing the first four (4) of eleven (11) areas of consideration as outlined by DCAA in providing guidance to their auditors.  Remember my training class discussion on "subject to interpretation"?  Well there is much on this subject where interpretation applies.  So, do your homework, get proper and strong counsel, and be sure to include in your pricing any projected additional cost you may incur as a result of moving in this direction.


This information is not proprietary. 

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