Mentor-Protégé Program, 67518-67523 [E6-19707]
Download as PDF
<![CDATA[
67518
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Proposed Rules
303(q), 303(r), and the National
Environmental Policy Act of 1969, 42
U.S.C. 4321 et seq., this Notice of
Proposed Rulemaking is hereby
adopted.
55. It is further ordered that pursuant
to applicable procedures set forth in
sections 1.415 and 1.419 of the
Commission’s Rules, 47 CFR 1.415,
1.419, interested parties may file
comments on or before January 22, 2007
and reply comments on or before
February 20, 2007.
56. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Notice of Proposed Rulemaking,
including the Initial Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small
Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E6–19742 Filed 11–21–06; 8:45 am]
BILLING CODE 6712–01–P
AGENCY FOR INTERNATIONAL
DEVELOPMENT
48 CFR Part 719
RIN 0412–AA58
´ ´
Mentor-Protege Program
U.S. Agency for International
Development (USAID).
ACTION: Proposed rulemaking.
jlentini on PROD1PC65 with PROPOSAL
AGENCY:
SUMMARY: The United States Agency for
International Development (USAID) is
proposing to amend its acquisition
regulations to formally encourage
USAID prime contractors to assist small
disadvantaged firms certified by the
Small Business Administration under
Section 8(a) of the Small Business Act,
other small disadvantaged business,
Historically Black Colleges and
Universities and other minority
institutions of higher learning, and
women-owned small business in
enhancing their capabilities to perform
contracts and subcontracts for USAID
and other Federal agencies. The
program seeks to provide a Mentor´ ´
Protege Program that assists qualified
small business to receive developmental
assistance from USAID prime
contractors in order to increase the base
of small business eligible to perform
USAID contracts and subcontracts. The
program also seeks to foster long-term
business relationships between USAID
prime contractors and small business
entities and minority institutions of
VerDate Aug<31>2005
16:20 Nov 21, 2006
Jkt 211001
higher learning and to increase the
overall number of small business
entities and minority institutions that
receive USAID grants, cooperative
agreements, contracts, and subcontract
awards.
DATES: Written comments on the
proposed rulemaking must be received
on or before December 8, 2006.
ADDRESSES: Submit comments,
identified by the title of the proposed
action, Regulatory Information Number
(RIN), your name, title, organization,
postal address, telephone number, and
e-mail address in the text of the
message. Accepted methods of
submission include the following:
Federal eRulemaking portal: https://
www.regulations.gov. Follow the
instructions for submitting comments;
facsimile: 202–216–3056; mail:
addressed to, Rockfeler P. Herisse, Ph.D.
U.S. Agency for International
´ ´
Development, Attn. Mentor-Protege
Rulemaking, Office of Small and
Disadvantaged Business Utilization,
1300 Pennsylvania Avenue, NW,
Washington, DC 20523–7800, and Email: rherisse@usaid.gov. All comments
will be made available for public review
without change, including any personal
information provided, from three (3)
days after receipt to finalization of
action https://www.usaid.gov/policy/
regulations/.
With respect to proposed reporting
requirements and the Paperwork
Reduction Act, comments should be
addressed to Office of Information and
Regulatory Affairs, NEOB—Rm. 10202,
725 17th Street, NW., Washington DC
20503 Rm. 10202, or to Beverly Johnson,
Office of Administrative Services,
Information and Records Division, 1300
Pennsylvania Ave, NW., Washington,
DC 20523 (202)-712–1365 or by e-mail
to bjohnson@usaid.gov.
FOR FURTHER INFORMATION CONTACT:
´ ´
Tracy A. Scrivner, Mentor-Protege
Rulemaking, Office of Small and
Disadvantaged Business Utilization,
U.S. Agency for International
Development, 1300 Pennsylvania
Avenue, NW., Washington, DC 20523,
(202) 712–4983 or by e-mail to
tscrivner@usaid.gov.
SUPPLEMENTARY INFORMATION:
I. Background
II. Section By Section Analysis
III. Procedural Requirements
A. Review Under Executive Order 12866
B. Review Under Executive Order 12988
C. Review Under the Regulatory Flexibility
Act.
D. Review Under the Paperwork Reduction
Act
E. Review Under Executive Order 12612
F. Review Under the Unfunded Mandates
Reform Act of 1995
PO 00000
Frm 00052
Fmt 4702
Sfmt 4702
I. Background
On December 8, 1995, the Office of
Small and Disadvantaged Business
Utilization (OSDBU) commissioned a
thorough assessment of existing Mentor´ ´
Protege programs and the feasibility of
such a program for USAID. The
assessment concluded that
opportunities exist in such programs to
actually encourage meaningful and
successful business development
´ ´
between Mentors and Proteges. Mentor´ ´
Protege arrangements represent
opportunities for creating access for
small and disadvantaged business to
USAID contracts and awards. Both
OSDBU and the Office of Acquisition
and Assistance (OAA) believe that
´ ´
Mentor-Protege programs will afford
small and disadvantaged business
opportunities to develop their capacity
and competencies. Review and analysis
´ ´
of existing Mentor-Protege programs in
the private and public sector conclude
that they are effective against the
problems related to small business and
minority sub-contracting.
This program is similar to those
established by other federal agencies
such as the Department of State,
Department of Energy and the
Environmental Protection Agency. An
assessment of the best practices in
´ ´
Mentor-Protege programs identified
certain clear benefits for all parties
involved. A successful Program can
enable USAID to receive a lower price
offer from less expensive Mentor´ ´
Protege teams. USAID acknowledges
´ ´
that a structured Mentor-Protege
Program provides an opportunity for
dual benefits where small and
disadvantaged business are developed
to become prime contractors and
technically capable sub-contractors.
More importantly, the Program provides
a degree of confidence to Program
Officers that the Mentor firm stands
´ ´
behind the work of the Protege firm.
Therefore, risks associated with the
performance of the small and
disadvantaged business are mitigated.
II. Section-by-Section Analysis
This rulemaking proposes to add a
new Subpart 273 and amend Part 719 of
´ ´
the AIDAR to provide a Mentor-Protege
Program that assists qualified small
business to receive developmental
assistance from USAID prime
contractors in order to increase the base
of small business eligible to perform on
USAID grants, contracts and
subcontracts.
Proposed sections 719.273–2 and
719.273–4 define which types of entities
´ ´
are eligible to participate as Protege in
the Program. Those entities would
E:\FR\FM\22NOP1.SGM
22NOP1
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Proposed Rules
include Historically Black Colleges and
Universities and other minority
institutions of higher learning in
addition to 8(a) firms, other small
disadvantaged business, and womenowned small business. Proposed section
719.273–3 provides the USAID’s
´ ´
Mentor-Protege Program policy. Costs
incurred by a Mentor to provide
developmental assistance are not
chargeable to the contract but can be
used to offset subcontract goals to the
extent that they are incurred during the
performance of a contract identified in
´ ´
the Mentor-Protege Agreement, and
have not been credited or reimbursed by
the Government. This is an exception to
the general rule that USAID will not
reimburse Mentors for providing
´ ´
developmental assistance to Proteges,
which is set out in proposed section
719.273–3(b). Proposed section
719.273–4 outlines requirements for
Mentor eligibility.
Proposed section 719.273–3 states the
incentives for Mentoring firms.
Proposed section 719.273–4 outlines
´ ´
Protege eligibility requirements.
Proposed section 719.273–5 provides
´ ´
that selection of a Protege is solely at the
discretion of the proposed Mentor.
Section 719.273–6 describes the process
by which USAID contractors may seek
to participate in this program as
Mentors.
Proposed section 719.273–7 provides
the minimum requirements of a
´ ´
proposed Mentor-Protege agreement.
Proposed section 719.273–8 describes
forms of developmental assistance.
Proposed section 719.273–7 describes
the review process leading to USAID’s
´ ´
approval of a proposed Mentor-Protege
agreement. Proposed section 719.273–10
describes the various reports that this
program requires. Proposed section
719.273–11 provides for the inclusion of
a provision discussing the Mentor´ ´
Protege program in all solicitations
exceeding $550,000 ($1,000,000 for
construction) that offer subcontracting
opportunities. Proposed section
752.219–XX provides for the inclusion
of a provision discussing the
´ ´
establishment of the Mentor-Protege
Program.
III. Procedural Requirements
jlentini on PROD1PC65 with PROPOSAL
A. Review Under Executive Order 12866
This proposed rule has been
determined to be a ‘‘significant
regulatory action’’ under Executive
Order 12866, ‘‘Regulatory Planning and
Review’’ (58 FR 51735, October 4, 1993).
Accordingly, this proposed rule was
subject to review under that Executive
Order by the Office of Information and
VerDate Aug<31>2005
16:20 Nov 21, 2006
Jkt 211001
Regulatory Affairs of the Office of
Management and Budget (OMB).
B. Review Under Executive Order 12988
With respect to the review of existing
regulations and the promulgation of
new regulations, section 3(a) of
Executive Order 12988, ‘‘Civil Justice
Reform,’’ 61 FR 4729 (February 7, 1996),
imposes on Executive agencies the
general duty to adhere to the following
requirements: (1) Eliminate drafting
errors and ambiguity; (2) Write
regulations to minimize litigation; and
(3) Provide a clear legal standard for
affected conduct rather than a general
standard and promote simplification
and burden reduction. With regard to
the review required by section 3(a),
section 3(b) of Executive Order 12988
specifically requires that Executive
agencies make every reasonable effort to
ensure that the regulation: (1) Clearly
specifies the subject law’s preemptive
effect, if any; (2) Clearly specifies any
effect on existing Federal law or
regulation; (3) Provides a clear legal
standard for affected conduct while
promoting simplification and burden
reduction; (4) Specifies the retroactive
effect, if any; (5) Adequately defines key
terms; and (6) Addresses other
important issues affecting clarity and
general draftsmanship under any
guidelines issued by the Attorney
General. Section 3(c) of Executive Order
12988 requires Executive agencies to
review regulations in light of applicable
standards in section 3(a) and section
3(b) to determine whether they are met
or it is unreasonable to meet one or
more of them. USAID has completed the
required review and determined that
these proposed regulations meet the
relevant standards of Executive Order
12988.
C. Review Under the Regulatory
Flexibility Act
This proposed rule has been reviewed
under the Regulatory Flexibility Act of
1980, Public Law 96–354, that requires
preparation of an initial regulatory
flexibility analysis for any rule that
must be proposed for public comment
and that is likely to have significant
economic impact on a substantial
number of small entities. The entities to
which this rulemaking would apply are
large business and small business firms
that receive a form of incentive for
assuming the role of Mentor to 8(a)
firms, other small disadvantaged
business, small women-owned business,
Historically Black Colleges and
Universities, and other minority
institutions of higher education. It is the
expectation that at such time as this rule
´ ´
is finalized, those Protege entities would
PO 00000
Frm 00053
Fmt 4702
Sfmt 4702
67519
directly benefit from the forms of
Mentoring described in this proposed
rule. USAID believes there would not be
an adverse economic impact on small
contractors or subcontractors, but
requests comment from the public on
other possible impacts this rule may
have on small entities. Comments will
be used as a factual basis upon which
USAID would certify that this rule will
not have a significant economic impact
on a substantial number of small
entities.
D. Review Under the Paperwork
Reduction Act
This proposed rule would require
USAID contractors serving as Mentors to
submit an application (see proposed
Sec. 719.273–7) and annual progress
´ ´
reports to the USAID Mentor-Protege
Program Manager at USAID
Headquarters (see proposed Sec.
719.273–10). The information in the
reports is necessary to determine the
value of the developmental assistance
and if the schedules and developmental
assistance levels contained in Mentor´ ´
Protege Agreements are being met.
Performance under the Agreements is
the basis for providing proper
recognition to Mentor firms. The
proposed collection of information has
been submitted to the Office of
Management and Budget for review and
approval under the Paperwork
Reduction Act, 44 U.S.C. 3501, et seq.
USAID estimates the number of
respondent Mentor firms to be 30 and
the number of hours required for
recordkeeping and preparation of the
reports to be approximately 12 hours
per respondent annually. The total
annual burden hour from compliance is
expected to be 360 hours (30 × 12 hours
per year). The collection of information
contained in this proposed rule is
considered the least burdensome for
meeting the requirements and objectives
´ ´
of the USAID Mentor-Protege Program.
USAID invites public comments
concerning: (1) The need for the
reporting requirement; (2) the accuracy
of USAID’s estimate of the reporting
burden; (3) ways to enhance the quality,
utility, and clarity of the information to
be collected; and (4) ways to minimize
the burden of the collection of
information on respondents. Send
comments regarding this proposed
collection of information to the contact
persons named in the address section of
this notice.
E. Review Under Executive Order 12612
Executive Order 12612, (52 FR 41685,
October 30, 1987), requires that
regulations, rules, legislation, and any
other policy actions be reviewed for any
E:\FR\FM\22NOP1.SGM
22NOP1
67520
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Proposed Rules
substantial direct effects on States, on
the relationship between the Federal
Government and the States, or in the
distribution of power and
responsibilities among the various
levels of Government. If there are
sufficient substantial direct effects, then
the Executive Order requires the
preparation of a federalism assessment
to be used in all decisions involved in
promulgating and implementing a
policy action. This proposed rule
merely describes the USAID Mentor´ ´
Protege Program. States would not be
directly subject to this rule, since they
are not among the class of entities
´ ´
described as Mentors or Proteges.
USAID has determined that this
proposed rule would not have a
substantial direct effect on the
institutional interests or traditional
functions of the States.
F. Review Under the Unfunded
Mandates Reform Act of 1995
The Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4) generally
requires a Federal agency to perform a
detailed assessment of costs and
benefits of any rule imposing a federal
mandate with costs to State, local or
tribal governments, or to the private
sector of $100 million or more. This
proposed rulemaking would only affect
private sector entities, and the impact is
less than $100 million.
List of Subjects in 48 CFR Part 719
Government procurement.
For the reasons set out in the
preamble, USAID proposes to amend 48
CFR chapter 7 as set forth below:
PART 719—SMALL BUSINESS
PROGRAMS
1. The authority citation for part 719
is revised to read as follows:
Authority: 42 U.S.C. 7254, 40 U.S.C.
486(c), 42 U.S.C. 2201.
jlentini on PROD1PC65 with PROPOSAL
2. A new subpart 719.273 is added as
follows:
Subpart 719.273—The U.S. Agency for
´ ´
International Development Mentor-Protege
Program
719.273–1 Purpose.
719.273–2 Definitions.
719.273–3 Incentives for Prime Contractor
Participation.
´ ´
719.273–4 Eligibility of Mentor and Protege
Firms.
´ ´
719.273–5 Selection of Protege Firms.
719.273–6 Application Process.
719.273–7 OSDBU Review of Application.
719.273–8 Developmental Assistance.
719.273–9 Obligations Under the Mentor´ ´
Protege Program.
719.273–10 Internal Controls.
719.273–11 Solicitation Provision and
Contract Clause.
VerDate Aug<31>2005
16:20 Nov 21, 2006
Jkt 211001
Subpart 719.273—The United States
Agency for International Development
´ ´
(USAID) Mentor-Protege Program
719.273–1
Purpose.
´ ´
The USAID Mentor-Protege Program
is designed to motivate and encourage
firms and institutions of higher
education to provide business
development assistance to small
business and institutions of higher of
higher education in the United States
that either historically or currently have
ethnic minority student enrollments of
more than 25 percent. These institutions
are commonly known as Minority
Institutions or referred to in this
document as Minority Serving
Institutions (MSIs). The term ‘‘small
business’’ includes small business,
small disadvantaged business certified
by the Small Business Administration
under Section 8(a) of the Small Business
Act, women-owned small business,
HUBZone small business, veteranowned small business, and servicedisabled veteran-owned small business.
´ ´
The Mentor-Protege Program is also
designed to improve the performance of
USAID contractors and subcontractors
by providing developmental assistance
´ ´
to Protege entities, fostering the
establishment of long-term business
relationships between small business
and prime contractors and between
institutions of higher education with
MSIs, and increasing the overall number
of small business and MSIs that receive
USAID contract and subcontract awards.
For purposes of the Small Business Act,
´ ´
a Protege firm is not considered an
affiliate of a Mentor firm solely because
´ ´
the Protege firm is receiving
developmental assistance from said
Mentor firm under the Program. A firm’s
´ ´
status as a Protege under a USAID
contract shall not have an effect on the
firm’s eligibility to seek other prime
contracts or subcontracts. Mentors may
´ ´
have multiple Proteges. However,
USAID reserves the right to limit the
´ ´
total number of Proteges participating
´ ´
under the Mentor-Protege Program.
719.273–2
Definitions.
(a) Throughout, the term ‘‘small
business’’ includes all categories of
small firms on whose behalf OSDBU is
chartered to advocate, including small
business, small and disadvantaged
business, women-owned small business,
veteran-owned and service-disabled
veteran-owned small business and small
business located in HUBZones, as those
terms are defined in FAR 2.101.
(b) The term ‘‘MSIs’’ applies to
Historically Black Colleges and
Universities (HBCUs), Hispanic Serving
Institutions (HSIs) and Tribal Colleges
PO 00000
Frm 00054
Fmt 4702
Sfmt 4702
and Universities (TCUs). Here the term
is used interchangeably with the term
Minority Institution as defined in FAR
2.101.
(c) A ‘‘Mentor’’ is a prime contractor
that elects to promote and develop small
business subcontractors by providing
developmental assistance designed to
enhance the business success of the
´ ´
Protege. An institution of higher
education may also enter into Mentor´ ´
Protege Agreement as a Mentor with a
´ ´
small business or a MSI Protege.
(d) ‘‘Program’’ refers to the USAID
´ ´
Mentor-Protege Program as described in
this Chapter.
´ ´
(e) ‘‘Protege’’ means a small business,
small disadvantaged business, womenowned small business, HUBZone small
business, veteran-owned small business
or service-disabled veteran-owned small
business that is the recipient of
developmental assistance pursuant to a
´ ´
Mentor-Protege Agreement. A MSI can
´ ´
also enter into a Mentor-Protege
Arrangement with a business entity.
719.273–3 Incentives for Prime Contractor
Participation.
(a) Under the Small Business Act, 15
U.S.C. 637(d)(4)(E), USAID is authorized
to provide appropriate incentives to
encourage subcontracting opportunities
for small business consistent with the
efficient and economical performance of
the contract. This authority is limited to
negotiated procurements. FAR 19.202–1
provides additional guidance.
(b) Costs incurred by a Mentor to
provide developmental assistance as
described below in 719.273–8 can be
used to offset established subcontracting requirements, to the extent
that those costs are incurred during the
performance of a contract identified in
´ ´
the Mentor-Protege Agreement, and
have not been previously credited or
reimbursed by the Government.
(c) In addition to paragraph (b) of this
section, contracting officers may give
Mentors evaluation credit under FAR
15.101–1 considerations for
subcontracts awarded pursuant to their
´ ´
Mentor-Protege Agreements and their
subcontracting plans. Therefore:
(1) Contracting officers may evaluate
subcontracting plans containing Mentor´ ´
Protege arrangements more favorably
than subcontracting plans without
´ ´
Mentor-Protege Agreements.
(2) Contracting officers may assess the
prime contractor’s compliance with the
subcontracting plans submitted in
previous contracts as a factor in
evaluating past performance under FAR
15.305(a)(2)(v) and determining
contractor responsibility 19.705–5(a)(1).
(d) OSDBU Mentoring Award. A nonmonetary award will be presented
E:\FR\FM\22NOP1.SGM
22NOP1
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Proposed Rules
annually to the Mentoring firm
providing the most effective
´ ´
developmental support of a Protege. The
´ ´
Mentor-Protege Program Manager will
recommend an award winner to the
Director of the Office of Small and
Disadvantaged Business Utilization
(OSDBU).
´ ´
(e) OSDBU Mentor-Protege Annual
Conference. At the conclusion of each
´ ´
year in the Mentor-Protege Program,
Mentor firms will be invited to brief
contracting officers, program leaders,
office directors and other guests on
Program progress.
jlentini on PROD1PC65 with PROPOSAL
719.273–4 Eligibility of Mentor and
´ ´
Protege Firms.
Eligible business entities approved as
Mentors may enter into agreements
´ ´
(hereafter referred to as ‘‘Mentor-Protege
Agreement’’ or ‘‘Agreement’’ and
explained in 719.273–6) with eligible
´ ´
Proteges. Mentors provide appropriate
developmental assistance to enhance
´ ´
the capabilities of Proteges to perform as
contractors and/or subcontractors.
Eligible small business entities capable
of providing developmental assistance
´ ´
may be approved as Mentors. Proteges
may participate in the Program in
pursuit of a prime contract or as
subcontractors under the Mentor’s
prime contract with USAID.
(a) Eligibility. A Mentor:
(1) May be either a large or small
business entity;
(2) Must be eligible for award of
Government contracts;
(3) Must be able to provide
developmental assistance that will
´ ´
enhance the ability of Proteges to
perform as prime contractors or
subcontractors; and
(4) Will be encouraged to enter into
arrangements with entities with which
it has established business
relationships.
´ ´
(b) Eligibility. (1) A Protege:
(i) Must be a small business,
HUBZone, small disadvantaged
business, women-owned small business,
veteran-owned small business, small
disadvantaged veteran-owned small
business (as those terms are defined in
FAR 2.101) or a Minority Serving
Institution (MSI) (as defined in 719.273–
2);
(ii) Must be small as determined by
NAICS code for the services or supplies
´ ´
to be provided by the Protege to the
Mentor; and
(iii) Eligible for award of government
contracts.
´ ´
(2) A Protege firm may self-certify to
a Mentor firm that it meets the
requirements set forth in paragraph (b)
of this section. Mentors may rely in
good faith on written representations by
VerDate Aug<31>2005
16:20 Nov 21, 2006
Jkt 211001
´ ´
potential Proteges that they meet the
specified eligibility requirements. Small
disadvantaged business status eligibility
and documentation requirements are
determined according to FAR 19.304.
HUBZone status eligibility and
documentation requirements are
determined according to FAR 19.1303.
´ ´
(c) Proteges may have multiple
´ ´
Mentors. Proteges participating in
´ ´
Mentor-Protege programs in addition to
USAID’s Program should maintain a
system for preparing separate reports of
Mentoring activity so that results of the
USAID Program can be reported
separately from any other agency
program.
719.273–5
´ ´
Selection of Protege Firms.
(a) Mentor firms will be solely
´ ´
responsible for selecting Protege firms.
Mentors are encouraged to select from a
broad base of MSIs and small business
including small business, small
disadvantaged business, women-owned
small business, veteran-owned small
business, service-disabled veteranowned small business, and HUBZone
firms whose core competencies support
USAID’s mission.
(b) Mentors may have multiple
´ ´
Proteges. However, USAID reserves the
right to limit the total number of
´ ´
Proteges participating under each
´ ´
Mentor firm for the Mentor-Protege
Program.
´ ´
(c) The selection of Protege firms by
Mentor firms may not be protested,
except that any protest regarding the
size or eligibility status of an entity
selected by a Mentor shall be handled
in accordance with the Federal
Acquisition Regulation (FAR) and the
Small Business Administration
regulations.
719.273–6
Application Process.
Entities interested in becoming a
Mentor firm must apply in writing to
the USAID Office of Small and
Disadvantaged Business Utilization
(OSDBU) by submitting form AID XXXX
(OMB Approval number xxxxll). The
application shall contain the Mentor´ ´
Protege Agreement and shall be
evaluated for approval. Evaluations will
consider the nature and extent of
technical and managerial support as
well as any proposed financial
assistance in the form of equity
investment, loans, joint-venture, and
traditional subcontracting support. The
´ ´
Mentor-Protege Agreement must
contain:
(a) Names, addresses, phone numbers,
and e-mail addresses (if available) of
´ ´
Mentor and Protege firm(s) and a point
´ ´
of contact for both Mentor and Protege;
PO 00000
Frm 00055
Fmt 4702
Sfmt 4702
67521
(b) A description of the
developmental assistance that will be
´ ´
provided by the Mentor to the Protege,
including a description of the work or
product contracted for (if any), a
schedule for providing assistance, and
´ ´
criteria for evaluation of the Protege’s
developmental success.
(c) A listing of the number and types
of subcontracts to be awarded to the
´ ´
Protege;
(d) Duration of the Agreement,
including rights and responsibilities of
´ ´
both parties (Mentor and Protege);
(e) Termination procedures, including
procedures for the parties’ voluntary
withdrawal from the Program. The
Agreement shall require the Mentor or
´ ´
the Protege to notify the other firm in
writing at least 30 days in advance of its
intent to voluntarily terminate the
Agreement;
(f) Procedures requiring the parties to
notify OSDBU immediately upon
receipt of termination notice from the
other party;
(g) A plan for accomplishing the work
or product contracted for should the
Agreement be terminated; and
(h) Other terms and conditions, as
appropriate.
719.273–7
OSDBU Review of Application.
(a) OSDBU will review the
information to establish the Mentor and
´ ´
Protege eligibility and to ensure that the
information that is in Section 719.273–
6 is included. If the application relates
to a specific contract, then OSDBU will
consult with the responsible contracting
officer on the adequacy of the proposed
Agreement, as appropriate. OSDBU will
complete its review no later than 30
calendar days after receipt of the
application or after consultation with
the contracting officer, whichever is
later. Application for and enrollment
into the Program are free and open to
the public.
(b) After OSDBU completes its review
and provides written approval, the
Mentor may execute the Agreement and
implement the developmental
assistance as provided under the
Agreement. OSDBU will provide a copy
´ ´
of the Mentor-Protege Agreement to the
USAID contracting officer for any
USAID contracts affected by the
Agreement.
(c) The Agreement defines the
relationship between the Mentor and
´ ´
Protege firms only. The Agreement itself
does not create any privity of contract
or contractual relationship between the
´ ´
Mentor and USAID nor the Protege and
USAID.
(1) If the Mentor responding to a
solicitation wishes to receive credit for
an approved program arrangement, then
E:\FR\FM\22NOP1.SGM
22NOP1
67522
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Proposed Rules
the contracting officer must add the
´ ´
approved Mentor-Protege Agreement to
the subcontracting plan of any affected
contract. OSDBU will notify the
contracting officer of any changes to the
Agreement, particularly if either party
terminates the Agreement or OSDBU
rescinds its approval of the Agreement
per section 719.273–10.
(2) If the application is disapproved,
the Mentor may provide additional
information for reconsideration. OSDBU
will complete review of any
supplemental material no later than 30
days after its receipt. Upon finding
deficiencies that USAID considers
correctable, OSDBU will notify the
´ ´
Mentor and Protege and request
correction of deficiencies to be provided
within 15 days.
719.273–8
Developmental Assistance.
The forms of developmental
assistance a Mentor can provide to a
´ ´
Protege include and are not limited to
the following:
(a) Guidance relating to—
(1) Financial management;
(2) Organizational management;
(3) Overall business management/
planning;
(4) Business development; and
(5) Technical assistance.
(b) Loans;
(c) Rent-free use of facilities and/or
equipment;
(d) Property;
(e) Temporary assignment of
´ ´
personnel to a Protege for training; and
(f) Any other types of permissible,
mutually beneficial assistance.
jlentini on PROD1PC65 with PROPOSAL
719.273–9 Obligations Under the Mentor´ ´
Protege Program.
´ ´
(a) A Mentor or Protege may
voluntarily withdraw from the Program.
However, in no event shall such
withdrawal impact the contractual
requirements under any prime contract.
´ ´
(b) Mentor and Protege entities shall
submit to the USAID Office of Small
and Disadvantaged Business Utilization
(OSDBU) annual reports on progress
´ ´
under the Mentor-Protege Agreement.
Mentors required to submit Small
Business Subcontracting Plan reports (in
accordance with FAR 52.219–9) may
´ ´
submit the Mentor-Protege reports as
part of their subcontracting reporting
obligations. USAID will evaluate annual
reports by considering the following:
(1) Specific actions taken by the
Mentor during the evaluation period to
increase the participation of their
´ ´
Protege(s) as suppliers to the Federal
Government and to commercial entities;
(2) Specific actions taken by the
Mentor during the evaluation period to
develop technical and administrative
VerDate Aug<31>2005
16:20 Nov 21, 2006
Jkt 211001
´ ´
expertise of a Protege as defined in the
Agreement;
´ ´
(3) The extent to which the Protege
has met the developmental objectives in
the Agreement;
(4) The extent to which the Mentor’s
´ ´
participation in the Mentor-Protege
´ ´
Program impacted the Protege’(s) ability
to receive contract(s) and subcontract(s)
from private firms and Federal agencies
other than USAID; and, if deemed
necessary.
´ ´
(5) Input from the Protege on the
nature of the developmental assistance
provided by the Mentor.
(c) OSDBU will submit annual reports
to the relevant contracting officer
regarding participating prime
contractor(s)’ performance in the
Program.
´ ´
(d) Mentor and Protege firms shall
submit an evaluation to OSDBU at the
conclusion of the mutually agreed upon
Program period, the conclusion of the
contract, or the voluntary withdrawal by
either party from the Program,
whichever comes first.
719.273–10
Internal Controls.
(a) OSDBU will oversee the Program
and will work in concert with the
´ ´
Mentor-Protege Program Manager and
relevant contracting officers to achieve
Program objectives. OSDBU will
establish internal controls as checks and
balances applicable to the Program.
These controls will include:
(1) Reviewing and evaluating Mentor
applications for validity of the provided
information;
(2) Reviewing annual progress reports
´ ´
submitted by Mentors and Proteges on
´ ´
´ ´
Protege development to measure Protege
progress against the plan submitted in
the approved Agreement; and
(3) Reviewing and evaluating
financial reports and invoices submitted
by the Mentor to verify that USAID is
not charged by the Mentor for providing
´ ´
developmental assistance to the Protege.
(b) USAID may rescind approval of an
´ ´
existing Mentor-Protege Agreement if it
determines that such action is in
USAID’s best interest. The rescission
shall be in writing and sent to the
´ ´
Mentor and Protege after approval by
the Director of OSDBU. Rescission of an
Agreement does not change the terms of
any subcontract between the Mentor
´ ´
and the Protege.
719.273–11 Solicitation Provision and
Contract Clause.
(a) The Contracting Officer shall insert
the provision at AIDAR 752.219–70 in
all unrestricted solicitations exceeding
$550,000 ($1,000,000 for construction)
that offer subcontracting opportunities.
(b) The Contracting Officer shall
insert the clause at AIDAR 752.219–71
PO 00000
Frm 00056
Fmt 4702
Sfmt 4702
in all contracts where the prime
´ ´
contractor has signed a Mentor-Protege
Agreement with USAID.
PART 752—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. The authority citation for part 752
continues to read as follows:
Authority: Sec. 621, Pub. L. 87–195, 75
Stat. 445, (22 U.S.C. 2381) as amended; E.O.
12163, Sept. 29, 1979, 44 FR 566673; 3 CFR,
1979 Comp., p. 435.
4. Add section 752.219–270 to read as
follows:
´ ´
752.219–270 USAID Mentor-Protege
Program (XXXX 2007)
As prescribed in AIDAR 719.273–
11(a), insert the following provision:
´ ´
USAID Mentor-Protege Program
(a) Large and small business are
encouraged to participate in the USAID
´ ´
Mentor-Protege Program (the ‘‘Program’’).
Mentor firms provide eligible small business
´ ´
Proteges with developmental assistance to
enhance their business capabilities and
ability to obtain Federal contracts.
(b) Mentor firms are large prime
contractors or eligible small business capable
of providing developmental assistance.
´ ´
Protege firms can be either small business, as
defined in 13 CFR Parts 121, 124, and 126
or MSIs.
(c) Developmental assistance is technical,
managerial, financial, and other mutually
´ ´
beneficial assistance that aids Proteges. The
costs for developmental assistance are not
chargeable to the contract. Firms interested
in participating in the Program are
encouraged to contact the USAID OSDBU
(202–712–1500) for more information.
(End of provision)
5. Add section 752.219–271 to read as
follows:
752.219–71 Mentor Requirements and
Evaluation (XXXX 2007)
As prescribed in AIDAR 719.273–
11(b), insert the following clause:
Mentor Requirements and Evaluation
´ ´
(a) Mentor and Protege firms shall submit
an evaluation of the overall experience in the
Program to OSDBU at the conclusion of the
mutually agreed upon Program period, the
conclusion of the contract, or the voluntary
withdrawal by either party from the Program,
whichever occurs first. At the conclusion of
´ ´
each year in the Mentor-Protege Program, the
´ ´
Mentor and Protege will formally brief the
´ ´
USAID Mentor-Protege Program Manager
regarding Program accomplishments under
´ ´
their Mentor-Protege Agreement.
´ ´
(b) Mentor or Protege shall notify OSDBU
in writing, at least 30 calendar days in
advance of the effective date of the firm’s
withdrawal from the Program.
(End of clause)
E:\FR\FM\22NOP1.SGM
22NOP1
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Proposed Rules
Dated: November 9, 2006.
Marilyn Marton,
Director, Office of Small and Disadvantaged
Business Utilization (OSDBU).
[FR Doc. E6–19707 Filed 11–21–06; 8:45 am]
BILLING CODE 6116–01–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
49 CFR Part 604
[Docket No. FTA–2005–22657]
RIN 2132–AA85
Charter Service Negotiated
Rulemaking Advisory Committee
Federal Transmit
Administration (FTA), DOT.
ACTION: Notice of meeting location and
time of the meeting.
AGENCY:
SUMMARY: This notice lists the location
and time of the next Charter Bus
Negotiated Rulemaking Advisory
Committee (CBNRAC) meeting.
DATES: Effective Date: November 22,
2006.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Martineau, Attorney-Advisor,
Office of the Chief Counsel, Federal
Transmit Administration, 202–366–
1936 (elizabeth.martineau@dot.gov).
Her mailing address at the Federal
Transmit Administration at 400 Seventh
Street, SW., Room 9316, Washington,
DC 20590.
SUPPLEMENTARY INFORMATION:
Meeting Location
The Residence Inn Marriott, 550
Army Navy Drive, Arlington, VA 22202.
Meeting Time
December 6th, 9 a.m.–4:30 p.m.
December 7th, 8:30 a.m.–4 p.m.
Issued this 16th day of November, 2006, in
Washington, DC.
James S. Simpson,
Administrator.
[FR Doc. 06–9364 Filed 11–21–06; 8:45am]
BILLING CODE 4910–57–M
jlentini on PROD1PC65 with PROPOSAL
Public Availability of Information
National Transportation Safety
Board (NTSB).
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: The NTSB is proposing to
amend 49 Code of Federal Regulations
Jkt 211001
The NTSB seeks to amend § 801.1 in
order to clarify the NTSB’s
implementation of the provisions of the
Freedom of Information Act, and update
the relevant statutory citations.
Proposed Revision to § 801.2, Policy
The NTSB seeks to amend § 801.2 in
order to emphasize that persons seeking
information from the NTSB need not
submit a request under the FOIA, but
instead should first search for
information that is publicly available.
Although the NTSB makes ‘‘public
dockets’’ of investigative information
available to the public at the conclusion
of each investigation, the NTSB still
receives hundreds of FOIA requests
each year for the same or similar
information. Many FOIA requesters find
that the information they receive from
the NTSB, beyond that already in the
public docket, is not helpful to them.
Section 801.2 emphasizes this point and
encourages requesters to obtain the
public docket of investigative
information before they consider
submitting a FOIA request.
The NTSB seeks to amend § 801.3 in
order to update existing definitions, and
in order to include definitions for the
terms, ‘‘public docket’’ and ‘‘nondocket,’’ which are unique to the NTSB.
49 CFR Part 801
16:20 Nov 21, 2006
Proposed Revision to § 801.1,
Applicability
Proposed Revision to § 801.3,
Definitions
NATIONAL TRANSPORTATION
SAFETY BOARD
VerDate Aug<31>2005
(CFR) Part 801, ‘‘Public Availability of
Information,’’ to include updated
information regarding the availability of
NTSB records. This amendment updates
the NTSB regulations that implement
the Freedom of Information Act (FOIA)
and Privacy Act, notifies the public of
changes in the NTSB’s Freedom of
Information Act processing procedures
and, in general, advises the public on
the availability of information from
NTSB accident investigations.
DATES: Submit comments on or before
December 22, 2006.
ADDRESSES: Mail comments concerning
this proposed rule to Gary L. Halbert,
General Counsel, National
Transportation Safety Board, 490
L’Enfant Plaza, SW., Washington, DC
20594–2000.
FOR FURTHER INFORMATION CONTACT: Gary
L. Halbert, (202) 314–6080.
SUPPLEMENTARY INFORMATION:
Proposed Revision to § 801.10, General
The NTSB seeks to amend § 801.10 to
replace references to ‘‘Director, Bureau
of Administration’’ with ‘‘Chief, Records
Management Division.’’ The NTSB no
PO 00000
Frm 00057
Fmt 4702
Sfmt 4702
67523
longer has a Director, Bureau of
Administration.
In addition, the NTSB seeks to amend
§ 801.10 in order to update the deadline
by which the NTSB must respond to
requests for information under the
FOIA; Congress amended the FOIA in
1996 to expand the response deadline
from 10 working days to 20 working
days. 5 U.S.C. 552(a)(6)(A)(i). The
NTSB’s proposed amendment to
§ 801.10(b) reflects this change. In
updating this provision, however, the
NTSB notes that the FOIA does not
require an agency to search for records,
meet time deadlines, or release any
records until the agency has received a
FOIA request. A request for information
under the FOIA must comply with
published regulations before an agency
is required to consider it a proper FOIA
request.
The NTSB also seeks to amend
§ 801.10 to notify persons seeking
information that the NTSB will deny
requests for information related to an
ongoing investigation, in accordance
with the exemptions of the FOIA.
The other proposed amendments to
§ 801.10 clarify the general requirements
for submitting a FOIA request to the
NTSB.
Proposed Revision to § 801.11,
Segregability of Records
The NTSB seeks to amend § 801.11 in
order to update the title of the NTSB
employee who makes a segregability
determination. The amendments also
clarify the NTSB’s practice of
segregating exempt portions of a record
from non-exempt portions via redaction,
when possible.
Proposed Revision to § 801.12,
Protection of Records
The NTSB seeks to amend § 801.12 in
order to provide a cross-reference to
another relevant section within this
title, and to add to a quotation of 18
U.S.C. 641. In general, the NTSB intends
to retain the majority of this section as
the NTSB originally enacted it, in order
to cite the specific penalties that a
person will encounter if they attempt to
steal, alter, mutilate, obliterate, or
destroy an agency record.
Proposed Addition of § 801.20,
Processing of Records
The NTSB seeks to add § 801.20 to
this part, in order to notify persons
seeking information concerning the
NTSB FOIA Office’s ‘‘tracking’’ system
for processing requests. This system
allows the NTSB to process requests
more efficiently; rather than allowing a
complex, broad request to inhibit the
processing of simpler requests, the
E:\FR\FM\22NOP1.SGM
22NOP1
]]>Agencies
[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Proposed Rules]
[Pages 67518-67523]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19707]
=======================================================================
-----------------------------------------------------------------------
AGENCY FOR INTERNATIONAL DEVELOPMENT
48 CFR Part 719
RIN 0412-AA58
Mentor-Prot[eacute]g[eacute] Program
AGENCY: U.S. Agency for International Development (USAID).
ACTION: Proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The United States Agency for International Development (USAID)
is proposing to amend its acquisition regulations to formally encourage
USAID prime contractors to assist small disadvantaged firms certified
by the Small Business Administration under Section 8(a) of the Small
Business Act, other small disadvantaged business, Historically Black
Colleges and Universities and other minority institutions of higher
learning, and women-owned small business in enhancing their
capabilities to perform contracts and subcontracts for USAID and other
Federal agencies. The program seeks to provide a Mentor-
Prot[eacute]g[eacute] Program that assists qualified small business to
receive developmental assistance from USAID prime contractors in order
to increase the base of small business eligible to perform USAID
contracts and subcontracts. The program also seeks to foster long-term
business relationships between USAID prime contractors and small
business entities and minority institutions of higher learning and to
increase the overall number of small business entities and minority
institutions that receive USAID grants, cooperative agreements,
contracts, and subcontract awards.
DATES: Written comments on the proposed rulemaking must be received on
or before December 8, 2006.
ADDRESSES: Submit comments, identified by the title of the proposed
action, Regulatory Information Number (RIN), your name, title,
organization, postal address, telephone number, and e-mail address in
the text of the message. Accepted methods of submission include the
following: Federal eRulemaking portal: https://www.regulations.gov.
Follow the instructions for submitting comments; facsimile: 202-216-
3056; mail: addressed to, Rockfeler P. Herisse, Ph.D. U.S. Agency for
International Development, Attn. Mentor-Prot[eacute]g[eacute]
Rulemaking, Office of Small and Disadvantaged Business Utilization,
1300 Pennsylvania Avenue, NW, Washington, DC 20523-7800, and E-mail:
rherisse@usaid.gov. All comments will be made available for public
review without change, including any personal information provided,
from three (3) days after receipt to finalization of action https://
www.usaid.gov/policy/regulations/.
With respect to proposed reporting requirements and the Paperwork
Reduction Act, comments should be addressed to Office of Information
and Regulatory Affairs, NEOB--Rm. 10202, 725 17th Street, NW.,
Washington DC 20503 Rm. 10202, or to Beverly Johnson, Office of
Administrative Services, Information and Records Division, 1300
Pennsylvania Ave, NW., Washington, DC 20523 (202)-712-1365 or by e-mail
to bjohnson@usaid.gov.
FOR FURTHER INFORMATION CONTACT: Tracy A. Scrivner, Mentor-
Prot[eacute]g[eacute] Rulemaking, Office of Small and Disadvantaged
Business Utilization, U.S. Agency for International Development, 1300
Pennsylvania Avenue, NW., Washington, DC 20523, (202) 712-4983 or by e-
mail to tscrivner@usaid.gov.
SUPPLEMENTARY INFORMATION:
I. Background
II. Section By Section Analysis
III. Procedural Requirements
A. Review Under Executive Order 12866
B. Review Under Executive Order 12988
C. Review Under the Regulatory Flexibility Act.
D. Review Under the Paperwork Reduction Act
E. Review Under Executive Order 12612
F. Review Under the Unfunded Mandates Reform Act of 1995
I. Background
On December 8, 1995, the Office of Small and Disadvantaged Business
Utilization (OSDBU) commissioned a thorough assessment of existing
Mentor-Prot[eacute]g[eacute] programs and the feasibility of such a
program for USAID. The assessment concluded that opportunities exist in
such programs to actually encourage meaningful and successful business
development between Mentors and Prot[eacute]g[eacute]s. Mentor-
Prot[eacute]g[eacute] arrangements represent opportunities for creating
access for small and disadvantaged business to USAID contracts and
awards. Both OSDBU and the Office of Acquisition and Assistance (OAA)
believe that Mentor-Prot[eacute]g[eacute] programs will afford small
and disadvantaged business opportunities to develop their capacity and
competencies. Review and analysis of existing Mentor-
Prot[eacute]g[eacute] programs in the private and public sector
conclude that they are effective against the problems related to small
business and minority sub-contracting.
This program is similar to those established by other federal
agencies such as the Department of State, Department of Energy and the
Environmental Protection Agency. An assessment of the best practices in
Mentor-Prot[eacute]g[eacute] programs identified certain clear benefits
for all parties involved. A successful Program can enable USAID to
receive a lower price offer from less expensive Mentor-
Prot[eacute]g[eacute] teams. USAID acknowledges that a structured
Mentor-Prot[eacute]g[eacute] Program provides an opportunity for dual
benefits where small and disadvantaged business are developed to become
prime contractors and technically capable sub-contractors. More
importantly, the Program provides a degree of confidence to Program
Officers that the Mentor firm stands behind the work of the
Prot[eacute]g[eacute] firm. Therefore, risks associated with the
performance of the small and disadvantaged business are mitigated.
II. Section-by-Section Analysis
This rulemaking proposes to add a new Subpart 273 and amend Part
719 of the AIDAR to provide a Mentor-Prot[eacute]g[eacute] Program that
assists qualified small business to receive developmental assistance
from USAID prime contractors in order to increase the base of small
business eligible to perform on USAID grants, contracts and
subcontracts.
Proposed sections 719.273-2 and 719.273-4 define which types of
entities are eligible to participate as Prot[eacute]g[eacute] in the
Program. Those entities would
[[Page 67519]]
include Historically Black Colleges and Universities and other minority
institutions of higher learning in addition to 8(a) firms, other small
disadvantaged business, and women-owned small business. Proposed
section 719.273-3 provides the USAID's Mentor-Prot[eacute]g[eacute]
Program policy. Costs incurred by a Mentor to provide developmental
assistance are not chargeable to the contract but can be used to offset
subcontract goals to the extent that they are incurred during the
performance of a contract identified in the Mentor-
Prot[eacute]g[eacute] Agreement, and have not been credited or
reimbursed by the Government. This is an exception to the general rule
that USAID will not reimburse Mentors for providing developmental
assistance to Prot[eacute]g[eacute]s, which is set out in proposed
section 719.273-3(b). Proposed section 719.273-4 outlines requirements
for Mentor eligibility.
Proposed section 719.273-3 states the incentives for Mentoring
firms. Proposed section 719.273-4 outlines Prot[eacute]g[eacute]
eligibility requirements. Proposed section 719.273-5 provides that
selection of a Prot[eacute]g[eacute] is solely at the discretion of the
proposed Mentor. Section 719.273-6 describes the process by which USAID
contractors may seek to participate in this program as Mentors.
Proposed section 719.273-7 provides the minimum requirements of a
proposed Mentor-Prot[eacute]g[eacute] agreement. Proposed section
719.273-8 describes forms of developmental assistance. Proposed section
719.273-7 describes the review process leading to USAID's approval of a
proposed Mentor-Prot[eacute]g[eacute] agreement. Proposed section
719.273-10 describes the various reports that this program requires.
Proposed section 719.273-11 provides for the inclusion of a provision
discussing the Mentor-Prot[eacute]g[eacute] program in all
solicitations exceeding $550,000 ($1,000,000 for construction) that
offer subcontracting opportunities. Proposed section 752.219-XX
provides for the inclusion of a provision discussing the establishment
of the Mentor-Prot[eacute]g[eacute] Program.
III. Procedural Requirements
A. Review Under Executive Order 12866
This proposed rule has been determined to be a ``significant
regulatory action'' under Executive Order 12866, ``Regulatory Planning
and Review'' (58 FR 51735, October 4, 1993). Accordingly, this proposed
rule was subject to review under that Executive Order by the Office of
Information and Regulatory Affairs of the Office of Management and
Budget (OMB).
B. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Executive agencies the general duty to adhere to the following
requirements: (1) Eliminate drafting errors and ambiguity; (2) Write
regulations to minimize litigation; and (3) Provide a clear legal
standard for affected conduct rather than a general standard and
promote simplification and burden reduction. With regard to the review
required by section 3(a), section 3(b) of Executive Order 12988
specifically requires that Executive agencies make every reasonable
effort to ensure that the regulation: (1) Clearly specifies the subject
law's preemptive effect, if any; (2) Clearly specifies any effect on
existing Federal law or regulation; (3) Provides a clear legal standard
for affected conduct while promoting simplification and burden
reduction; (4) Specifies the retroactive effect, if any; (5) Adequately
defines key terms; and (6) Addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. Section 3(c) of Executive Order 12988 requires
Executive agencies to review regulations in light of applicable
standards in section 3(a) and section 3(b) to determine whether they
are met or it is unreasonable to meet one or more of them. USAID has
completed the required review and determined that these proposed
regulations meet the relevant standards of Executive Order 12988.
C. Review Under the Regulatory Flexibility Act
This proposed rule has been reviewed under the Regulatory
Flexibility Act of 1980, Public Law 96-354, that requires preparation
of an initial regulatory flexibility analysis for any rule that must be
proposed for public comment and that is likely to have significant
economic impact on a substantial number of small entities. The entities
to which this rulemaking would apply are large business and small
business firms that receive a form of incentive for assuming the role
of Mentor to 8(a) firms, other small disadvantaged business, small
women-owned business, Historically Black Colleges and Universities, and
other minority institutions of higher education. It is the expectation
that at such time as this rule is finalized, those
Prot[eacute]g[eacute] entities would directly benefit from the forms of
Mentoring described in this proposed rule. USAID believes there would
not be an adverse economic impact on small contractors or
subcontractors, but requests comment from the public on other possible
impacts this rule may have on small entities. Comments will be used as
a factual basis upon which USAID would certify that this rule will not
have a significant economic impact on a substantial number of small
entities.
D. Review Under the Paperwork Reduction Act
This proposed rule would require USAID contractors serving as
Mentors to submit an application (see proposed Sec. 719.273-7) and
annual progress reports to the USAID Mentor-Prot[eacute]g[eacute]
Program Manager at USAID Headquarters (see proposed Sec. 719.273-10).
The information in the reports is necessary to determine the value of
the developmental assistance and if the schedules and developmental
assistance levels contained in Mentor-Prot[eacute]g[eacute] Agreements
are being met. Performance under the Agreements is the basis for
providing proper recognition to Mentor firms. The proposed collection
of information has been submitted to the Office of Management and
Budget for review and approval under the Paperwork Reduction Act, 44
U.S.C. 3501, et seq. USAID estimates the number of respondent Mentor
firms to be 30 and the number of hours required for recordkeeping and
preparation of the reports to be approximately 12 hours per respondent
annually. The total annual burden hour from compliance is expected to
be 360 hours (30 x 12 hours per year). The collection of information
contained in this proposed rule is considered the least burdensome for
meeting the requirements and objectives of the USAID Mentor-
Prot[eacute]g[eacute] Program.
USAID invites public comments concerning: (1) The need for the
reporting requirement; (2) the accuracy of USAID's estimate of the
reporting burden; (3) ways to enhance the quality, utility, and clarity
of the information to be collected; and (4) ways to minimize the burden
of the collection of information on respondents. Send comments
regarding this proposed collection of information to the contact
persons named in the address section of this notice.
E. Review Under Executive Order 12612
Executive Order 12612, (52 FR 41685, October 30, 1987), requires
that regulations, rules, legislation, and any other policy actions be
reviewed for any
[[Page 67520]]
substantial direct effects on States, on the relationship between the
Federal Government and the States, or in the distribution of power and
responsibilities among the various levels of Government. If there are
sufficient substantial direct effects, then the Executive Order
requires the preparation of a federalism assessment to be used in all
decisions involved in promulgating and implementing a policy action.
This proposed rule merely describes the USAID Mentor-
Prot[eacute]g[eacute] Program. States would not be directly subject to
this rule, since they are not among the class of entities described as
Mentors or Prot[eacute]g[eacute]s. USAID has determined that this
proposed rule would not have a substantial direct effect on the
institutional interests or traditional functions of the States.
F. Review Under the Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally
requires a Federal agency to perform a detailed assessment of costs and
benefits of any rule imposing a federal mandate with costs to State,
local or tribal governments, or to the private sector of $100 million
or more. This proposed rulemaking would only affect private sector
entities, and the impact is less than $100 million.
List of Subjects in 48 CFR Part 719
Government procurement.
For the reasons set out in the preamble, USAID proposes to amend 48
CFR chapter 7 as set forth below:
PART 719--SMALL BUSINESS PROGRAMS
1. The authority citation for part 719 is revised to read as
follows:
Authority: 42 U.S.C. 7254, 40 U.S.C. 486(c), 42 U.S.C. 2201.
2. A new subpart 719.273 is added as follows:
Subpart 719.273--The U.S. Agency for International Development Mentor-
Prot[eacute]g[eacute] Program
719.273-1 Purpose.
719.273-2 Definitions.
719.273-3 Incentives for Prime Contractor Participation.
719.273-4 Eligibility of Mentor and Prot[eacute]g[eacute] Firms.
719.273-5 Selection of Prot[eacute]g[eacute] Firms.
719.273-6 Application Process.
719.273-7 OSDBU Review of Application.
719.273-8 Developmental Assistance.
719.273-9 Obligations Under the Mentor-Prot[eacute]g[eacute]
Program.
719.273-10 Internal Controls.
719.273-11 Solicitation Provision and Contract Clause.
Subpart 719.273--The United States Agency for International
Development (USAID) Mentor-Prot[eacute]g[eacute] Program
719.273-1 Purpose.
The USAID Mentor-Prot[eacute]g[eacute] Program is designed to
motivate and encourage firms and institutions of higher education to
provide business development assistance to small business and
institutions of higher of higher education in the United States that
either historically or currently have ethnic minority student
enrollments of more than 25 percent. These institutions are commonly
known as Minority Institutions or referred to in this document as
Minority Serving Institutions (MSIs). The term ``small business''
includes small business, small disadvantaged business certified by the
Small Business Administration under Section 8(a) of the Small Business
Act, women-owned small business, HUBZone small business, veteran-owned
small business, and service-disabled veteran-owned small business. The
Mentor-Prot[eacute]g[eacute] Program is also designed to improve the
performance of USAID contractors and subcontractors by providing
developmental assistance to Prot[eacute]g[eacute] entities, fostering
the establishment of long-term business relationships between small
business and prime contractors and between institutions of higher
education with MSIs, and increasing the overall number of small
business and MSIs that receive USAID contract and subcontract awards.
For purposes of the Small Business Act, a Prot[eacute]g[eacute] firm is
not considered an affiliate of a Mentor firm solely because the
Prot[eacute]g[eacute] firm is receiving developmental assistance from
said Mentor firm under the Program. A firm's status as a
Prot[eacute]g[eacute] under a USAID contract shall not have an effect
on the firm's eligibility to seek other prime contracts or
subcontracts. Mentors may have multiple Prot[eacute]g[eacute]s.
However, USAID reserves the right to limit the total number of
Prot[eacute]g[eacute]s participating under the Mentor-
Prot[eacute]g[eacute] Program.
719.273-2 Definitions.
(a) Throughout, the term ``small business'' includes all categories
of small firms on whose behalf OSDBU is chartered to advocate,
including small business, small and disadvantaged business, women-owned
small business, veteran-owned and service-disabled veteran-owned small
business and small business located in HUBZones, as those terms are
defined in FAR 2.101.
(b) The term ``MSIs'' applies to Historically Black Colleges and
Universities (HBCUs), Hispanic Serving Institutions (HSIs) and Tribal
Colleges and Universities (TCUs). Here the term is used interchangeably
with the term Minority Institution as defined in FAR 2.101.
(c) A ``Mentor'' is a prime contractor that elects to promote and
develop small business subcontractors by providing developmental
assistance designed to enhance the business success of the
Prot[eacute]g[eacute]. An institution of higher education may also
enter into Mentor-Prot[eacute]g[eacute] Agreement as a Mentor with a
small business or a MSI Prot[eacute]g[eacute].
(d) ``Program'' refers to the USAID Mentor-Prot[eacute]g[eacute]
Program as described in this Chapter.
(e) ``Prot[eacute]g[eacute]'' means a small business, small
disadvantaged business, women-owned small business, HUBZone small
business, veteran-owned small business or service-disabled veteran-
owned small business that is the recipient of developmental assistance
pursuant to a Mentor-Prot[eacute]g[eacute] Agreement. A MSI can also
enter into a Mentor-Prot[eacute]g[eacute] Arrangement with a business
entity.
719.273-3 Incentives for Prime Contractor Participation.
(a) Under the Small Business Act, 15 U.S.C. 637(d)(4)(E), USAID is
authorized to provide appropriate incentives to encourage
subcontracting opportunities for small business consistent with the
efficient and economical performance of the contract. This authority is
limited to negotiated procurements. FAR 19.202-1 provides additional
guidance.
(b) Costs incurred by a Mentor to provide developmental assistance
as described below in 719.273-8 can be used to offset established sub-
contracting requirements, to the extent that those costs are incurred
during the performance of a contract identified in the Mentor-
Prot[eacute]g[eacute] Agreement, and have not been previously credited
or reimbursed by the Government.
(c) In addition to paragraph (b) of this section, contracting
officers may give Mentors evaluation credit under FAR 15.101-1
considerations for subcontracts awarded pursuant to their Mentor-
Prot[eacute]g[eacute] Agreements and their subcontracting plans.
Therefore:
(1) Contracting officers may evaluate subcontracting plans
containing Mentor-Prot[eacute]g[eacute] arrangements more favorably
than subcontracting plans without Mentor-Prot[eacute]g[eacute]
Agreements.
(2) Contracting officers may assess the prime contractor's
compliance with the subcontracting plans submitted in previous
contracts as a factor in evaluating past performance under FAR
15.305(a)(2)(v) and determining contractor responsibility 19.705-
5(a)(1).
(d) OSDBU Mentoring Award. A non-monetary award will be presented
[[Page 67521]]
annually to the Mentoring firm providing the most effective
developmental support of a Prot[eacute]g[eacute]. The Mentor-
Prot[eacute]g[eacute] Program Manager will recommend an award winner to
the Director of the Office of Small and Disadvantaged Business
Utilization (OSDBU).
(e) OSDBU Mentor-Prot[eacute]g[eacute] Annual Conference. At the
conclusion of each year in the Mentor-Prot[eacute]g[eacute] Program,
Mentor firms will be invited to brief contracting officers, program
leaders, office directors and other guests on Program progress.
719.273-4 Eligibility of Mentor and Prot[eacute]g[eacute] Firms.
Eligible business entities approved as Mentors may enter into
agreements (hereafter referred to as ``Mentor-Prot[eacute]g[eacute]
Agreement'' or ``Agreement'' and explained in 719.273-6) with eligible
Prot[eacute]g[eacute]s. Mentors provide appropriate developmental
assistance to enhance the capabilities of Prot[eacute]g[eacute]s to
perform as contractors and/or subcontractors. Eligible small business
entities capable of providing developmental assistance may be approved
as Mentors. Prot[eacute]g[eacute]s may participate in the Program in
pursuit of a prime contract or as subcontractors under the Mentor's
prime contract with USAID.
(a) Eligibility. A Mentor:
(1) May be either a large or small business entity;
(2) Must be eligible for award of Government contracts;
(3) Must be able to provide developmental assistance that will
enhance the ability of Prot[eacute]g[eacute]s to perform as prime
contractors or subcontractors; and
(4) Will be encouraged to enter into arrangements with entities
with which it has established business relationships.
(b) Eligibility. (1) A Prot[eacute]g[eacute]:
(i) Must be a small business, HUBZone, small disadvantaged
business, women-owned small business, veteran-owned small business,
small disadvantaged veteran-owned small business (as those terms are
defined in FAR 2.101) or a Minority Serving Institution (MSI) (as
defined in 719.273-2);
(ii) Must be small as determined by NAICS code for the services or
supplies to be provided by the Prot[eacute]g[eacute] to the Mentor; and
(iii) Eligible for award of government contracts.
(2) A Prot[eacute]g[eacute] firm may self-certify to a Mentor firm
that it meets the requirements set forth in paragraph (b) of this
section. Mentors may rely in good faith on written representations by
potential Prot[eacute]g[eacute]s that they meet the specified
eligibility requirements. Small disadvantaged business status
eligibility and documentation requirements are determined according to
FAR 19.304. HUBZone status eligibility and documentation requirements
are determined according to FAR 19.1303.
(c) Prot[eacute]g[eacute]s may have multiple Mentors.
Prot[eacute]g[eacute]s participating in Mentor-Prot[eacute]g[eacute]
programs in addition to USAID's Program should maintain a system for
preparing separate reports of Mentoring activity so that results of the
USAID Program can be reported separately from any other agency program.
719.273-5 Selection of Prot[eacute]g[eacute] Firms.
(a) Mentor firms will be solely responsible for selecting
Prot[eacute]g[eacute] firms. Mentors are encouraged to select from a
broad base of MSIs and small business including small business, small
disadvantaged business, women-owned small business, veteran-owned small
business, service-disabled veteran-owned small business, and HUBZone
firms whose core competencies support USAID's mission.
(b) Mentors may have multiple Prot[eacute]g[eacute]s. However,
USAID reserves the right to limit the total number of
Prot[eacute]g[eacute]s participating under each Mentor firm for the
Mentor-Prot[eacute]g[eacute] Program.
(c) The selection of Prot[eacute]g[eacute] firms by Mentor firms
may not be protested, except that any protest regarding the size or
eligibility status of an entity selected by a Mentor shall be handled
in accordance with the Federal Acquisition Regulation (FAR) and the
Small Business Administration regulations.
719.273-6 Application Process.
Entities interested in becoming a Mentor firm must apply in writing
to the USAID Office of Small and Disadvantaged Business Utilization
(OSDBU) by submitting form AID XXXX (OMB Approval number xxxx----). The
application shall contain the Mentor-Prot[eacute]g[eacute] Agreement
and shall be evaluated for approval. Evaluations will consider the
nature and extent of technical and managerial support as well as any
proposed financial assistance in the form of equity investment, loans,
joint-venture, and traditional subcontracting support. The Mentor-
Prot[eacute]g[eacute] Agreement must contain:
(a) Names, addresses, phone numbers, and e-mail addresses (if
available) of Mentor and Prot[eacute]g[eacute] firm(s) and a point of
contact for both Mentor and Prot[eacute]g[eacute];
(b) A description of the developmental assistance that will be
provided by the Mentor to the Prot[eacute]g[eacute], including a
description of the work or product contracted for (if any), a schedule
for providing assistance, and criteria for evaluation of the
Prot[eacute]g[eacute]'s developmental success.
(c) A listing of the number and types of subcontracts to be awarded
to the Prot[eacute]g[eacute];
(d) Duration of the Agreement, including rights and
responsibilities of both parties (Mentor and Prot[eacute]g[eacute]);
(e) Termination procedures, including procedures for the parties'
voluntary withdrawal from the Program. The Agreement shall require the
Mentor or the Prot[eacute]g[eacute] to notify the other firm in writing
at least 30 days in advance of its intent to voluntarily terminate the
Agreement;
(f) Procedures requiring the parties to notify OSDBU immediately
upon receipt of termination notice from the other party;
(g) A plan for accomplishing the work or product contracted for
should the Agreement be terminated; and
(h) Other terms and conditions, as appropriate.
719.273-7 OSDBU Review of Application.
(a) OSDBU will review the information to establish the Mentor and
Prot[eacute]g[eacute] eligibility and to ensure that the information
that is in Section 719.273-6 is included. If the application relates to
a specific contract, then OSDBU will consult with the responsible
contracting officer on the adequacy of the proposed Agreement, as
appropriate. OSDBU will complete its review no later than 30 calendar
days after receipt of the application or after consultation with the
contracting officer, whichever is later. Application for and enrollment
into the Program are free and open to the public.
(b) After OSDBU completes its review and provides written approval,
the Mentor may execute the Agreement and implement the developmental
assistance as provided under the Agreement. OSDBU will provide a copy
of the Mentor-Prot[eacute]g[eacute] Agreement to the USAID contracting
officer for any USAID contracts affected by the Agreement.
(c) The Agreement defines the relationship between the Mentor and
Prot[eacute]g[eacute] firms only. The Agreement itself does not create
any privity of contract or contractual relationship between the Mentor
and USAID nor the Prot[eacute]g[eacute] and USAID.
(1) If the Mentor responding to a solicitation wishes to receive
credit for an approved program arrangement, then
[[Page 67522]]
the contracting officer must add the approved Mentor-
Prot[eacute]g[eacute] Agreement to the subcontracting plan of any
affected contract. OSDBU will notify the contracting officer of any
changes to the Agreement, particularly if either party terminates the
Agreement or OSDBU rescinds its approval of the Agreement per section
719.273-10.
(2) If the application is disapproved, the Mentor may provide
additional information for reconsideration. OSDBU will complete review
of any supplemental material no later than 30 days after its receipt.
Upon finding deficiencies that USAID considers correctable, OSDBU will
notify the Mentor and Prot[eacute]g[eacute] and request correction of
deficiencies to be provided within 15 days.
719.273-8 Developmental Assistance.
The forms of developmental assistance a Mentor can provide to a
Prot[eacute]g[eacute] include and are not limited to the following:
(a) Guidance relating to--
(1) Financial management;
(2) Organizational management;
(3) Overall business management/planning;
(4) Business development; and
(5) Technical assistance.
(b) Loans;
(c) Rent-free use of facilities and/or equipment;
(d) Property;
(e) Temporary assignment of personnel to a Prot[eacute]g[eacute]
for training; and
(f) Any other types of permissible, mutually beneficial assistance.
719.273-9 Obligations Under the Mentor-Prot[eacute]g[eacute] Program.
(a) A Mentor or Prot[eacute]g[eacute] may voluntarily withdraw from
the Program. However, in no event shall such withdrawal impact the
contractual requirements under any prime contract.
(b) Mentor and Prot[eacute]g[eacute] entities shall submit to the
USAID Office of Small and Disadvantaged Business Utilization (OSDBU)
annual reports on progress under the Mentor-Prot[eacute]g[eacute]
Agreement. Mentors required to submit Small Business Subcontracting
Plan reports (in accordance with FAR 52.219-9) may submit the Mentor-
Prot[eacute]g[eacute] reports as part of their subcontracting reporting
obligations. USAID will evaluate annual reports by considering the
following:
(1) Specific actions taken by the Mentor during the evaluation
period to increase the participation of their Prot[eacute]g[eacute](s)
as suppliers to the Federal Government and to commercial entities;
(2) Specific actions taken by the Mentor during the evaluation
period to develop technical and administrative expertise of a
Prot[eacute]g[eacute] as defined in the Agreement;
(3) The extent to which the Prot[eacute]g[eacute] has met the
developmental objectives in the Agreement;
(4) The extent to which the Mentor's participation in the Mentor-
Prot[eacute]g[eacute] Program impacted the Prot[eacute]g[eacute]'(s)
ability to receive contract(s) and subcontract(s) from private firms
and Federal agencies other than USAID; and, if deemed necessary.
(5) Input from the Prot[eacute]g[eacute] on the nature of the
developmental assistance provided by the Mentor.
(c) OSDBU will submit annual reports to the relevant contracting
officer regarding participating prime contractor(s)' performance in the
Program.
(d) Mentor and Prot[eacute]g[eacute] firms shall submit an
evaluation to OSDBU at the conclusion of the mutually agreed upon
Program period, the conclusion of the contract, or the voluntary
withdrawal by either party from the Program, whichever comes first.
719.273-10 Internal Controls.
(a) OSDBU will oversee the Program and will work in concert with
the Mentor-Prot[eacute]g[eacute] Program Manager and relevant
contracting officers to achieve Program objectives. OSDBU will
establish internal controls as checks and balances applicable to the
Program. These controls will include:
(1) Reviewing and evaluating Mentor applications for validity of
the provided information;
(2) Reviewing annual progress reports submitted by Mentors and
Prot[eacute]g[eacute]s on Prot[eacute]g[eacute] development to measure
Prot[eacute]g[eacute] progress against the plan submitted in the
approved Agreement; and
(3) Reviewing and evaluating financial reports and invoices
submitted by the Mentor to verify that USAID is not charged by the
Mentor for providing developmental assistance to the
Prot[eacute]g[eacute].
(b) USAID may rescind approval of an existing Mentor-
Prot[eacute]g[eacute] Agreement if it determines that such action is in
USAID's best interest. The rescission shall be in writing and sent to
the Mentor and Prot[eacute]g[eacute] after approval by the Director of
OSDBU. Rescission of an Agreement does not change the terms of any
subcontract between the Mentor and the Prot[eacute]g[eacute].
719.273-11 Solicitation Provision and Contract Clause.
(a) The Contracting Officer shall insert the provision at AIDAR
752.219-70 in all unrestricted solicitations exceeding $550,000
($1,000,000 for construction) that offer subcontracting opportunities.
(b) The Contracting Officer shall insert the clause at AIDAR
752.219-71 in all contracts where the prime contractor has signed a
Mentor-Prot[eacute]g[eacute] Agreement with USAID.
PART 752--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. The authority citation for part 752 continues to read as
follows:
Authority: Sec. 621, Pub. L. 87-195, 75 Stat. 445, (22 U.S.C.
2381) as amended; E.O. 12163, Sept. 29, 1979, 44 FR 566673; 3 CFR,
1979 Comp., p. 435.
4. Add section 752.219-270 to read as follows:
752.219-270 USAID Mentor-Prot[eacute]g[eacute] Program (XXXX 2007)
As prescribed in AIDAR 719.273-11(a), insert the following
provision:
USAID Mentor-Prot[eacute]g[eacute] Program
(a) Large and small business are encouraged to participate in
the USAID Mentor-Prot[eacute]g[eacute] Program (the ``Program'').
Mentor firms provide eligible small business Prot[eacute]g[eacute]s
with developmental assistance to enhance their business capabilities
and ability to obtain Federal contracts.
(b) Mentor firms are large prime contractors or eligible small
business capable of providing developmental assistance.
Prot[eacute]g[eacute] firms can be either small business, as defined
in 13 CFR Parts 121, 124, and 126 or MSIs.
(c) Developmental assistance is technical, managerial,
financial, and other mutually beneficial assistance that aids
Prot[eacute]g[eacute]s. The costs for developmental assistance are
not chargeable to the contract. Firms interested in participating in
the Program are encouraged to contact the USAID OSDBU (202-712-1500)
for more information.
(End of provision)
5. Add section 752.219-271 to read as follows:
752.219-71 Mentor Requirements and Evaluation (XXXX 2007)
As prescribed in AIDAR 719.273-11(b), insert the following clause:
Mentor Requirements and Evaluation
(a) Mentor and Prot[eacute]g[eacute] firms shall submit an
evaluation of the overall experience in the Program to OSDBU at the
conclusion of the mutually agreed upon Program period, the
conclusion of the contract, or the voluntary withdrawal by either
party from the Program, whichever occurs first. At the conclusion of
each year in the Mentor-Prot[eacute]g[eacute] Program, the Mentor
and Prot[eacute]g[eacute] will formally brief the USAID Mentor-
Prot[eacute]g[eacute] Program Manager regarding Program
accomplishments under their Mentor-Prot[eacute]g[eacute] Agreement.
(b) Mentor or Prot[eacute]g[eacute] shall notify OSDBU in
writing, at least 30 calendar days in advance of the effective date
of the firm's withdrawal from the Program.
(End of clause)
[[Page 67523]]
Dated: November 9, 2006.
Marilyn Marton,
Director, Office of Small and Disadvantaged Business Utilization
(OSDBU).
[FR Doc. E6-19707 Filed 11-21-06; 8:45 am]
BILLING CODE 6116-01-P
