Joint Venture Guidance

In the Airport Concession Disadvantaged Business Enterprise (ACDBE) world, a Joint Venture (JV) refers to a collaborative business arrangement between an ACDBE-certified firm and one or more other firms. The purpose of a joint venture is to carry out a specific, profit-oriented business enterprise, combining the resources, expertise, and efforts of all parties involved.

Key Characteristics of an ACDBE Joint Venture:

1. Distinct Role of the ACDBE Firm: The ACDBE partner must have a well-defined and clearly documented role in the contract. This includes responsibility for a distinct portion of the work.
2. Proportional Participation: The ACDBE's contribution to the capital, control, management, risks, and profits must align with its ownership interest in the joint venture.
3. Collaborative Structure: Parties combine their assets, efforts, skills, and knowledge to achieve the goals of the business enterprise.
4. Non-Certification of the JV Entity: It is important to note that the joint venture entity itself does not receive ACDBE certification. Only the ACDBE partner within the joint venture is certified.

This structure ensures that the ACDBE firm has a genuine, active, and proportional role in the joint venture, fostering meaningful participation in airport concession opportunities.

Authority:

• 49 CFR 23.3: Joint Venture
• 49 CFR 23.29: What monitoring and compliance procedures must recipients follow?
• 49 CFR 23.55(d): How do recipients count ACDBE participation toward goals for items other than car rentals?

2025 ACDBE Joint Venture Guidance:

• 2025 ACDBE Joint Venture Guidance Training
• 2025 ACDBE Joint Venture Guidance Training PPT

Resource:

• USDOT FAA 2024 Joint Venture Guidance