Joint Venture Policy

A joint venture is an association of two or more persons or companies to carry on a commercial enterprise as co-owners. In a CalPERS Request For Proposal a joint venture is a partnership between people or companies formed to submit a proposal and perform work if awarded the contract.

CalPERS requires that full, clear, and precise information be provided. If you want to be considered for a contract based on combined or joint efforts, your proposal must clearly describe if you are forming a joint venture, using a "prime contractor/subcontractor" relationship, or using some other vehicle.

For a joint venture, you must provide:

  • A complete copy of the written joint venture agreement signed by each party.

  • A full, clear description of how you propose to divide the labor in fulfilling the CalPERS contract.

  • A full and clear description of the qualifications and characteristics of each party.

Failure to comply with these requirements may result in the immediate rejection of your proposal.

Joint ventures must meet minimum qualification (MQs) in one of several ways:

  • The joint venture, if formed as a separate legal entity, may itself fully satisfy all MQs.

  • Each member of the joint venture may separately satisfy all MQs.

  • Any one member of the joint venture may satisfy all MQs.

  • The venturers may "mix and match" their individual experience and qualifications to fully satisfy all MQs.

  • CalPERS may, in its sole discretion, require that specified services be performed by one of the ventures and not delegated to another.

Scoring criteria shall not reward organizational size or duration unless CalPERS determines, in its sole discretion, that such size or duration has a demonstrable relationship to the quality and cost-effectiveness of services being performed under the contract.

If a contract is awarded, the documentation submitted pursuant to CalPERS Joint Venture Policy shall be incorporated as part of the Agreement, and the Agreement shall provide that each participating venturer is jointly and severally liable to CalPERS.

Dated: 03-16-2006