Top 5 Reasons to start a Joint Venture with a Government Contracting Company

The Top 5 Reasons to Start a Joint Venture with a Government Contracting Company

by | Oct 6, 2022 | Blog

What is a joint venture (JV)? A JV is a business arrangement in which two or more parties agree to pool their resources in order to achieve a common goal. Government contractors often form joint ventures in order to bid on large projects because doing so can yield multiple benefits. If your company is looking for new opportunities in the government contracting (GovCon) space, you may be wondering whether or not to start a joint venture (JV) with a government contracting company to secure contracts. While there are many different ways to secure contracts many different kinds of contracts, and each have their pros and cons, we thought we would discuss the top 5 reasons to start with JV, especially when venturing into the world of GovCon for the first time.


1. Expertise and Knowledge of the Government Contracting Space

The first reason to use a government contracting company is because of their expertise and knowledge of the government contracting space specifically. While you may have the technical knowledge about the service you provide, there is a lot more that needs to go into applying for, winning, and maintaining government contracts. The process can be complex. confusing, and littered with bureaucratic red tape, but a good government contracting company will have the experience and knowledge, and perhaps more importantly the contacts, necessary to guide you through the process and ensure that your company is successful.


2. Access to a Wider Range of Opportunities

Another reason to use a government contracting company is because they have access to a wider range of opportunities than your company might be able to find on its own. There are millions of government contractors and even more contracts out there, so it can be difficult to know where to start when looking for new opportunities. A good government contracting company will have a database of contacts, potential clients, and projects that you can leverage, making it easier to find the right opportunity for your business.


3. Save Time & Money

Another benefit of using a government contracting company is that they can help you save time and money. The process of bidding on and winning government contracts can be time-consuming, so working with a government contracting company can free up valuable time for your company to focus on other aspects of your business. In addition, government contracting companies typically have established relationships with key decision-makers within the government, which can give your company an advantage when bidding on contracts.


4. Reduce Risk

The advantage of a joint venture is that it allows the parties to share the risks and costs associated with the project. If the project is successful, the parties can share in the profits. However, if the project fails, the parties can limit their losses by sharing them with the other members of the joint venture. This can help reduce the financial risks associated with pursuing new opportunities in the government contracting space.


5. Improve Your Chances of Success

Finally, working with a government contracting company can improve your chances of success when pursuing new opportunities in the government contracting space. This is especially important when starting out due to the ‘past performance’ requirement.


Government contractors are often required to submit information about their past performance as part of the bidding process. This information can be used by the government to evaluate the contractor’s capabilities and to determine whether they are likely to be successful on the project. The Small Business Administration (SBA) and the General Services Administration (GSA) are two of the agencies that oversee government contracting, with the SBA requiring contractors to submit information about their past performance on similar projects, as well as any relevant customer satisfaction data. The GSA also maintains a database of contractor performance information, which is available to government officials when they are considering awarding a contract.


By reviewing this information, officials can make sure that they are selecting a contractor who is likely to complete the project successfully and provide value for the taxpayers’ money. By applying for contracts via JVs, you give yourself higher chances of success because the officials will consider past performance for both companies, instead of just one.

Despite all the benefits of JVs, they, like most things in life, are not perfect. One potential downside of JVs is that they can create ethical and compliance risks, particularly for government contractors. Government contractors are subject to strict rules regarding conflicts of interest, so partnering with another company can create the appearance of impropriety. In addition, JVs can complicate the financial picture for both companies involved, making it more difficult to assess each company’s financial health.


For these reasons, companies considering a joint venture should carefully weigh the risks and benefits before moving forward. When done correctly, however, working with such firms can provide significant advantages and help improve your chances for success.

About Us

Founded in 2005, DIGITALSPEC Technologies is a minority-owned SBA 8(a) Native Hawaiian Organization (NHO) with 15+ years of supporting federal clients.

Our experienced and skilled professionals use pragmatic strategies that yield long-term results for our customers. We strive to expand innovation through excellence in communication, collaboration, transparency, and quality service delivery, all in service of our singular mission: to engineer success for all stakeholders by driving growth through customer-focused outcomes. Our vision is one where digital transformation can empower organizations everywhere – ensuring each client’s unique needs are met with world-class technology solutions that make progress more achievable than ever before!

For more information about our government contracts, federal clients, and/or services, please visit our website at or contact us here.

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