[Federal Register Volume 59, Number 27 (Wednesday, February 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2876]
[[Page Unknown]]
[Federal Register: February 9, 1994]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1819 and 1852
Mentor-Protege Program
AGENCY: Office of Small and Disadvantaged Business Utilization (OSDBU),
National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: This proposed rule establishes NASA policy for the Mentor-
Protege Program which is designed to increase the overall participation
of Small Disadvantaged Businesses (SDBs) in NASA contracts and
subcontracts. The resultant increased participation of SDBs in NASA
contracts and subcontracts will enhance NASA's efforts to meet and
sustain the annual minimum eight (8) percent goal prescribed in Public
Law 101-144 and its amended version Public Law 101-507.
DATES: Comments are due no later than April 11, 1994.
ADDRESSES: Comments should be addressed to Ms. Rae C. Martel, NASA
Headquarters, NASA Office of Small and Disadvantaged Business
Utilization, (Code K), Washington, DC 20546. Comments should also be
addressed to the Office of Information and Regulatory Affairs of OMB,
ATTN: Desk Officer for NASA, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT:
Ms. Rae C. Martel, Telephone: (202) 358-2088 or 1800-2NASA-95.
SUPPLEMENTARY INFORMATION:
Background
The rule proposes NASA's policy on its Mentor-Protege Program. With
respect to prime contractors, it defines eligibility for participation,
allowable developmental assistance measures that will enhance the
capabilities of SDBs to perform NASA contracts and subcontracts, and
incentives for program participation. Further, it defines the
transportability of subcontracting goal credit features from the
Department of Defense (DOD) Mentor-Protege Program to NASA Contractors.
However, the effectiveness of a mentor under the NASA Program will be
evaluated by the measurable amount of developmental assistance provided
under NASA contracts. Participation in the program is voluntary.
With regard to SDBs, ``Socially And Economically Disadvantaged
Businesses'' include the eligible participants set forth in NASA's
Eight (8) percent legislation, Public Law 101-144 and the amended
provision in Public Law 101-507.
Availability of NASA FAR Supplement
The NASA FAR Supplement, of which this proposed coverage will
become a part, is codified in 48 CFR, chapter 18, and is available in
its entirety on a subscription basis from the Superintendent of
Documents, Government Printing Office, Washington, DC 20402. Cite GPO
Subscription Stock Number 933-003-00000-1. It is not distributed to the
public, whether in whole or in part, directly by NASA.
Impact
NASA certifies that this regulation will not have a significant
economic effect on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This proposed rule
imposes reporting or recordkeeping requirements subject to OMB approval
under the Paperwork Reduction Act, which will be requested separately.
List of Subjects in 48 CFR Parts 1819 and 1852
Government procurement.
Deidre A. Lee,
Associate Administrator for Procurement.
Accordingly, 48 CFR parts 1819 and 1852 are proposed to be amended
as follows:
1. The authority citation for 48 CFR parts 1819 and 1852 continues
to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1819--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS
2. Subpart 1819.72 is added to read as follows:
Subpart 1819.72 [Added]
Subpart 1819.72--The NASA Mentor-Protege Program
1819.7201 Scope of subpart.
1819.7202 Definitions.
1819.7203 Non-affiliation.
1819.7204 Transportability of features from the Department of
Defense (DOD) mentor-protege program to NASA contractors.
1819.7205 General policy.
1819.7206 Incentives for prime contractor participation.
1819.7207 Measurement of program success.
1819.7208 Mentor firms.
1819.7209 Protege firms.
1819.7210 Selection of protege firms.
1819.7211 Application process for mentor firms to participate in
the program.
1819.7212 OSDBU review and approval process of agreement.
1819.7213 Agreement contents.
1819.7214 Developmental assistance.
1819.7215 Obligation.
1819.7216 Internal controls.
1819.7217 Reports.
1819.7218 Program review.
1819.7219 Contract and solicitation clauses.
Subpart 1819.72--The NASA Mentor-Protege Program
1819.7201 Scope of subpart.
The NASA Mentor-Protege Program is designed to incentivize NASA
prime contractors to assist High Tech small disadvantaged businesses
(SDB)s in enhancing their capabilities to perform NASA contracts and
subcontracts, foster the establishment of long term business
relationships between SDBs and NASA prime contractors, and increase the
overall number of SDBs that receive NASA contract and subcontract
awards.
1819.7202 Definitions.
Historically Black Colleges and Universities, as used in this
subpart, means institutions determined by the Secretary of Education to
meet the requirements of 34 CFR 608.2 and listed therein.
Minority Educational Institutions, as used in this subpart, means
institutions meeting the criteria established in 34 CFR 607.2 by the
Secretary of Education.
Small Disadvantaged Business concern, as used in this subpart,
means a small business concern owned or controlled by individuals who
are both socially and economically disadvantaged (within the meaning of
section 8(a) (5) and (6) of the Small Business Act (15 U.S.C. 637(a)
(5) and (6))).
1819.7203 Non-affiliation.
For purposes of the Small Business Act, a protege firm may not be
considered an affiliate of a mentor firm solely on the basis that the
protege firm is receiving developmental assistance referred to in
1819.7214 from such mentor firm under the program.
1819.7204 Transportability of features from the Department of Defense
(DOD) mentor-protege program to NASA contractors.
(a) In accordance with the benefits authorized by the DOD Mentor-
Protege Program (Pub. L. 101-510, section 831, as amended by Pub. L.
102-190, section 814) a NASA contractor who is also an approved DOD
Mentor can transfer credit features to their NASA contracts.
(b) NASA prime contractors, who are approved DOD mentors, can award
subcontracts non-competitively under their NASA contracts to the
proteges which they are assisting under the DOD program (Pub. L. 101-
510, section 831(f)(2)).
(c) NASA prime contractors may count the costs of developmental
assistance provided to proteges being assisted under the DOD program
toward meeting the goals in their subcontracting plans under their NASA
prime contracts (Pub. L. 102-190, section 814). Limitations which may
reduce the value of this benefit include:
(1) Credit toward attaining subcontracting goals is available only
to the extent that the developmental assistance costs have not been
reimbursed to the contractor by DOD as direct or indirect costs; or
(2) The credit is available to meet the goals of a NASA
subcontracting plan only to the extent that it has not been applied to
a DOD subcontracting plan. The same unreimbursed developmental
assistance costs cannot be counted toward meeting the subcontracting
goals of more than one prime contract. These costs would accrue from
credit for the multiples attributed to assistance provided by Small
Business Development Centers, Historically Black Colleges and
Universities and minority educational institutions.
(d) The features identified in paragraphs (a), (b), and (c) of this
section point out the portability of features from the DOD Mentor-
Protege Program to NASA prime contractors. NASA mentors will be held to
show ``good faith'' by providing actual developmental assistance beyond
transferring credit from activity in the DOD activity to NASA
subcontracting plans.
1819.7205 General policy.
(a) Eligible large business prime contractors, not included on the
``Parties Excluded from Procurement Programs'' list, who have at least
one active subcontracting plan, and who are approved as mentor firms
will enter into agreements with eligible (SDBs) as protege firms to
provide appropriate developmental assistance to enhance the
capabilities of SDBs to perform as subcontractors and suppliers.
Eligible small business prime contractors, not included on the
``Parties Excluded from Procurement Programs'' list and that are
capable of providing developmental assistance to SDBs, may be approved
as mentors.
(b) The pilot program has a duration of three years commencing from
[the date of the published final rule]. During this period, eligible
mentor firms, which have received approval by NASA to participate in
the program pursuant to subpart 1819.9212, may enter into agreements
with protege firms.
(c) The award fee evaluation plans contained in all NASA cost-plus-
award-fee contracts may include a factor for evaluation of a
contractor's performance associated with Mentor-Protege Program
participation.
(d) Other contract types, including cost-plus-fixed-fee, with
subcontracting opportunities may include the clause at 52.219-10,
Incentive Subcontracting Program for Small and Small Disadvantaged
Business Concerns, for use in evaluating a contractor's performance
associated with Mentor-Protege Program participation when a
subcontracting plan is required.
(e) Costs incurred by a mentor to negotiate an agreement with a
protege and to implement the agreement are incurred by both parties at
their own risk. NASA will not reimburse these costs.
1819.7206 Incentives for prime contractor participation.
(a) Under cost-plus-award fee contracts, mentor firms may be
eligible to earn award fee associated with their performance as a
mentor by performance evaluation period. This performance may be
evaluated to determine the degree to which the participation went
beyond (exceeded) the negotiated SDB goals commitment.
(b) Under other contract types with subcontracting opportunities,
including cost-plus-fixed-fee, mentor firms may be eligible to earn fee
associated with their performance as a mentor. This performance may be
evaluated to determine the degree to which the participation went
beyond (exceeded) the negotiated SDB goals commitment.
(c) The overall developmental assistance performance of NASA
contractors, in promoting the use of SDBs as subcontractors, may be an
evaluation factor in award fee plans of all cost-plus-award-fee
contracts. Criteria under the factor could include:
(1) Active participation in the NASA Mentor Protege Program;
(2) Actions taken by the contractor to develop working
relationships with SDBs and others;
(3) The amount and quality of developmental assistance provided;
(4) Subcontracts awarded to SDBs and others;
(5) Success of the protege firms in increasing their business as a
result of receiving developmental assistance; and
(6) Accomplishment of any other activity as related to the Mentor-
Protege relationship.
1819.7207 Measurement of program success.
The overall success of the program will be measured by the extent
to which it results in:
(a) An increase in the number, dollar value and percentage of
subcontracts awarded to SDBs by mentor firms under NASA contracts since
the date of entry into the program;
(b) An increase in the number and dollar value of contract and
subcontract awards to protege firms since the time of their entry into
the program (under NASA contracts, contracts awarded by other Federal
agencies and under commercial contracts);
(c) An increase in the number and dollar value of subcontracts
awarded to a protege firm by its mentor firm; and
(d) An increase in subcontracting with SDB firms in industry
categories where SDBs have not traditionally participated within the
mentor firm's activity.
1819.7208 Mentor firms.
(a) Eligibility:
(1) Contractors eligible for receipt of government contracts;
(2) Large prime contractors performing under contracts with at
least one negotiated subcontracting plan as required by FAR 19.7; and
(3) Small Business prime contractors that can provide developmental
assistance to enhance the capabilities of SDBs to perform as
subcontractors and suppliers. A small business prime contractor
performing under a NASA contract that does not contain a negotiated
subcontracting plan may apply.
(b) Mentors will be encouraged to identify and select:
(1) A broad base of firms including those defined as emerging SDB
firms (e.g., an SDB whose size is no greater than 50% of the size
standard applicable to the SIC code assigned to a contracting
opportunity); and
(2) SDBs in addition to firms with whom they have established
business relationships.
Sec. 1819.7209 Protege firms.
(a) For selection as a protege, a firm must be:
(1) A small disadvantaged business concern as defined by FAR
19.001;
(2) Certified as small in the SIC code for the services or supplies
to be provided by the protege to the mentor; and
(3) Eligible for receipt of government contracts.
(b) A protege firm may self-certify to a mentor firm that it meets
each of the eligibility requirements in paragraphs (a) (1), (2) and (3)
of this section. Mentor firms may rely in good faith on a written
representation of a business concern that such business meets the
requirements in paragraphs (a) (1) and (2).
(c) Historically Black Colleges and Universities, minority
educational institutions, and small women-owned businesses are eligible
as proteges under this program.
(d) Proteges may have multiple mentors. Proteges should maintain a
system for developing reports of mentoring activity by federal agency.
Sec. 1819.7210 Selection of protege firms.
(a) Mentor firms will be solely responsible for selecting protege
firms. The mentor is encouraged to identify and select protege firms
that represent a balance in company size, e.g., start-up, emerging,
etc.
(b) Mentor firms may have more than one protege.
(c) The selection of protege firms by mentor firms may not be
protested, except as in paragraph (d) of this section.
(d) In the event of a protest regarding the size or disadvantaged
status of a business concern eligible to be a protege firm, the mentor
firm shall refer the protest to the Associate Administrator, NASA
Office of Small and Disadvantaged Business Utilization (OSDBU) for
resolution. When appropriate, NASA will seek an advisory option from
the SBA.
Sec. 1819.7211 Application process for mentor firms to participate in
the program.
(a) Prime contractors interested in becoming a mentor firm must
submit a request to the NASA OSDBU to be approved under the program.
The application will be evaluated on the extent to which the company
plans to provide developmental assistance and that a balance is
represented among the size and SDB status of such potential proteges.
The information required in paragraph (b) of this section must be
submitted to be considered for approval as a mentor firm.
(b) A proposed mentor must submit the following information to the
NASA OSDBU:
(1) Certification that the mentor firm is currently performing
under at least one active approved subcontracting plan (small business
exempted) and that they are currently eligible for the award of federal
contracts;
(2) The cognizant NASA contract number(s), type of contract,
performance (including options), title of technical program effort,
name of NASA Program Manager (including contact information) and name
of NASA field center where support is provided;
(3) The number of proposed Mentor-Protege arrangements;
(4) Data on all current NASA contracts and subcontracts to include
the contract/subcontract number(s), period of performance, awarding
NASA installation or contractor and contract/subcontract value(s)
including options;
(5) Data on total (NASA) subcontracts awarded and SDB awards.
(6) Information on the proposed types of developmental assistance.
For each proposed Mentor-Protege relationship include information on
the company's ability to provide developmental assistance to the
identified protege firm and how that assistance will potentially
increase subcontracting opportunities for the protege firm, including
subcontracting opportunities in industry categories where SDBs are not
dominant in the company's current subcontractor base; and
(7) A Letter of Intent signed by both the mentor and protege(s).
Sec. 1819.7212 OSDBU review and approval process of agreement.
(a) Information and Letter of Intent is reviewed by NASA OSDBU.
NASA OSDBU will provide a copy of the submitted information to the
cognizant NASA technical program manager and contracting officer for a
parallel review and concurrence.
(b) If OSDBU approves the application, then the mentor
(1) Negotiates agreement with the protege; and
(2) Submits an original and two (2) copies of the agreement to NASA
OSDBU for approval by the NASA Mentor-Protege program manager, the NASA
technical program manager and the contracting officer.
(c) Upon agreement approval, the mentor may implement development
assistance program.
(d) An approved agreement will become a part of the official
subcontracting plan, where applicable. Other agreements will be
incorporated into the contract.
(e) If OSDBU disapproves the application, then the mentor may
provide additional information for reconsideration.
Sec. 1819.7213 Agreement contents.
The contents of the agreement must contain:
(a) Names and addresses of mentor and protege firms and a point of
contact within both firms who will oversee the agreement;
(b) Procedures for the mentor firm to notify the protege firm,
OSDBU, and the contracting officer, in writing, at least 30 days in
advance of the mentor firm's intent to voluntarily withdraw from the
program;
(c) Procedures for a protege firm to notify the mentor firm in
writing at least 30 days in advance of the protege firm's intent to
voluntarily terminate the mentor-protege agreement. The mentor shall
notify the OSDBU and the contracting officer immediately upon receipt
of such notice from the protege;
(d) A description of the developmental program for the protege,
including the type of developmental assistance that will be provided by
the mentor firm to the protege firm, and a schedule for providing
assistance and criteria for evaluation of the protege's developmental
success;
(e) A listing of the number and types of subcontracts to be awarded
to the protege firm;
(f) Program participation term;
(g) Termination procedures;
(h) Plan for accomplishing work should the agreement be terminated;
and
(i) Other terms and conditions, as appropriate.
1819.7214 Developmental assistance.
The forms of developmental assistance a mentor can provide to a
protege include:
(a) Management guidance relating to
(1) Financial management,
(2) Organizational management,
(3) Overall business management/planning, and
(4) Business development;
(b) Engineering and other technical assistance;
(c) Noncompetitive award of subcontracts under NASA contractors;
(d) Progress payments based on costs. The customary progress
payment rate for all NASA contracts with small disadvantaged businesses
is 95 percent. This customary progress payment rate for SDBs may be
used by prime contractors;
(e) Advance payments. While a mentor can make advance payments to
its proteges who are performing as subcontractors, the mentor will only
be reimbursed by NASA for these costs if advance payments have been
authorized in accordance with statute and regulation; and
(f) Loans.
1819.7215 Obligation.
(a) Mentor or protege may voluntarily withdraw from the program as
mutually agreed by both mentor and protege.
(b) Mentor and protege firms will submit a ``lessons learned''
evaluation to the NASA OSDBU at the conclusion of the pilot program
period or the conclusion of their effort whichever comes first.
1819.7216 Internal controls.
The NASA OSDBU will manage the program. Internal controls will be
established by NASA OSDBU to achieve the stated program objectives (by
serving as checks and balances against undesired actions or
consequences) such as:
(a) Reviewing and evaluating mentor applications for realism,
validity and accuracy of provided information; and
(b) Reviewing quarterly progress reports submitted by mentors and
proteges on protege development to measure protege progress against the
master plan contained in the approved agreement.
1819.7217 Reports.
(a) Quarterly reports shall be submitted by the mentor to the NASA
mentor-protege program manager, NASA Headquarters OSDBU to include
information as outlined in 1819.7206(b).
(b) Proteges are encouraged to submit quarterly reports, to the
NASA mentor-protege program manager, on program progress as pertains to
their mentor-protege agreement.
(c) The NASA technical program manager shall submit quarterly
reports, for the purposes of award fee determination, assessing the
prime contractor's performance in the mentor-protege program as
pertains to the technical effort and protege development.
(d) The NASA mentor-protege program manager will submit quarterly
reports to the cognizant contracting officer regarding participating
prime contractor's performance in the program for use in the award fee
determination process.
1819.7218 Program review.
At the conclusion of each year in the mentor-protege program, the
prime contractor and protege will formally brief the NASA mentor-
protege program manager, the technical program manager, and the
contracting officer during a formal program review regarding program
accomplishments as pertains to the approved agreement.
1819.7219 Solication provisions and contract clause.
(a) The contracting officer shall insert the provision at 1852.219-
77, NASA Mentor-Protege Program, in all solicitations and contracts
with subcontracting plans or that offer subcontracting opportunities,
regardless of the dollar value of the prime contract.
(b) The contracting officer shall insert the provision at 1852.219-
78, Evaluation of Prime Contractor Participation in the Mentor-Protege
Program, in all solicitations containing the provisions at 1852.219-77,
NASA Mentor-Protege Program or FAR 52.219-9, Small Business and Small
Disadvantaged Business Subcontracting Plan.
(c) The contracting officer shall insert the clause at 1852.219-79,
Mentor Responsibility and Evaluation, in contracts where the prime
contractor is a participant in the NASA Mentor-Protege Program.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
a. Sections 1852.219-77, 1852.219-78, and 1852.219-79 are added to
read as follows:
1852.219-77 NASA Mentor-Protege Program.
As prescribed in 1819.7219(a), insert the following provision:
NASA Mentor-Protege Program (Jan 1994)
(a) Prime contractors, including certain small businesses, are
encouraged to participate in the NASA pilot mentor-protege program
for the purpose of providing developmental assistance to eligible
small disadvantaged businesses to enhance their capabilities and
increase their participation in NASA contracts.
(b) The pilot program consists of:
(1) Mentor firms, which are prime contractors with at least one
active subcontracting plan;
(2) Protege firms, which are small disadvantaged business (SDB)
concerns, include the eligible participants as set forth in Public
Law 101-144, as amended by Public Law 101-507, as follows:
``Small Business concerns or other organizations owned or
controlled by socially and economically disadvantaged individuals
(within the meaning of section 8(a) (5) and (6) of the Small
Business Act (15 U.S.C. 637(a) (5) and (6)), including Historically
Black Colleges and Universities and Minority Educational
Institutions''. For the purpose of this section economically and
socially disadvantaged individuals shall be deemed to include
women;''
(3) Mentor-Protege agreements, approved by the NASA Office of
Small and Disadvantaged Business Utilization;
(4) Potential of payment of additional award fee for voluntary
participation and successful performance in the mentor-protege
program.
(c) Mentor participation in the program, described in 48 CFR
1819.72, means providing technical, managerial and financial
assistance to aid SDBs in developing requisite high-tech expertise
and business systems to compete successfully for NASA contracts and
subcontracts.
(d) Contractors interested in participating in the pilot program
are encouraged to contact the NASA OSDBU, Washington, DC 20546,
(202) 358-2088, for further information.
(End of clause)
1852.219-78 Evaluation of Prime Contractor Participation in the NASA
Mentor-Protege Program.
As prescribed in 1819.7219(b), insert the following provision:
Evaluation of Prime Contractor Participation in the NASA Mentor-Protege
Program (Jan 1994)
This subfactor will consider the proposed participation and
extent of developmental assistance to be provided by a prime
contractor to small disadvantaged businesses.
1852-219-79 Mentor Requirements and Evaluation.
As prescribed in 1819-7219(c), insert the following provision:
Mentor Requirements and Evaluation (Jan 1994)
(a) The purpose of the NASA Mentor-Protege Program (Program) is
for a NASA prime contractor to provide developmental assistance to a
small disadvantaged business (SDB). The Mentor's active
participation in the Program, in compliance with the terms of the
negotiated Mentor-Protege Agreement, demonstrates both a commitment
to achieve the goal of its contractual subcontracting plan and a
commitment to increase the participation of SDBs in NASA contracts
and subcontracts. This commitment will be recognized in determining
the Mentor's performance fee.
(b) The OSDBU will evaluate the contractor's performance through
the Performance Evaluation process. The evaluation will consider the
following:
(1) Specific actions taken by the contractor, during the
evaluation period, to increase the participation of SDBs as
subcontractors and suppliers;
(2) Specific actions taken by the contractor during this
evaluation period to develop the technical and corporate
administrative expertise of the SDBs as defined in the agreement;
(3) To what extent the Protege has met the developmental
objectives in the agreement; and
(4) To what extent the firm's participation in the Mentor-
Protege Program resulted in the Protege receiving competitive
contract(s) and subcontract(s) from private firms and agencies other
than the Mentor.
(c) Quarterly reports shall be submitted by the mentor to the
NASA mentor-protege program manager, NASA Headquarters OSDBU to
include information as outlined in 1819.7206(b).
(d) The Mentor will notify the OSDBU and the contracting
officer, in writing, at least 30 days in advance of the mentor
firm's intent to voluntarily withdraw from the program or upon
receipt of a Protege's notice to withdraw from the Program;
(e) Mentor and protege firms will submit a ``lessons learned''
evaluation to the NASA OSDBU at the conclusion of the pilot program
period or the conclusion of their effort whichever comes first. At
the conclusion of each year in the mentor-protege program, the prime
contractor and protege will formally brief the NASA mentor-protege
program manager, the technical program manager, and the contracting
officer during a formal program review regarding program
accomplishments as pertains to the approved agreement.
(End of clause)
[FR Doc. 94-2876 Filed 2-8-94; 8:45 am]
BILLING CODE 7510-01-M
