Mentor-Protégé Program, 32540-32546 [E7-11093]
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the results of the reviewed plant and
animal metabolism studies.
Currently, there are existing
tolerances for residues of diuron on
peppermint, hay at 2 ppm. The
petitioner proposed tolerances be
established on mint at 1.5 ppm. The
EPA has determined that the preferred
commodity terms are spearmint, tops
and peppermint, tops and based on the
residue field trial data the appropriate
tolerance level for spearmint and
peppermint should be 1.5 ppm. The
EPA has also determined the preferred
commodity terms should be cactus and
fish - freshwater finfish, farm raised.
Therefore, these tolerances are
established for combined residues of
diuron (3-(3,4-dichlorophenyl)-1,1dimethylurea and its metabolites
convertible to 3,4-dichloroaniline on
cactus at 0.05 ppm, spearmint, tops at
1.5 ppm, peppermint, tops at 1.5 ppm
and fish - freshwater finfish, farm raised
at 2.0 ppm.
VI. Statutory and Executive Order
Reviews
This final rule establishes a tolerance
under section 408(d) of FFDCA in
response to a petition submitted to the
Agency. The Office of Management and
Budget (OMB) has exempted these types
of actions from review under Executive
Order 12866, entitled Regulatory
Planning and Review (58 FR 51735,
October 4, 1993). Because this rule has
been exempted from review under
Executive Order 12866, this rule is not
subject to Executive Order 13211,
Actions Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use (66 FR 28355, May
22, 2001) or Executive Order 13045,
entitled Protection of Children from
Environmental Health Risks and Safety
Risks (62 FR 19885, April 23, 1997).
This final rule does not contain any
information collections subject to OMB
approval under the Paperwork
Reduction Act (PRA), 44 U.S.C. 3501 et
seq., nor does it require any special
considerations under Executive Order
12898, entitled Federal Actions to
Address Environmental Justice in
Minority Populations and Low-Income
Populations (59 FR 7629, February 16,
1994).
Since tolerances and exemptions that
are established on the basis of a petition
under section 408(d) of FFDCA, such as
the tolerance in this final rule, do not
require the issuance of a proposed rule,
the requirements of the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601 et
seq.) do not apply.
This final rule directly regulates
growers, food processors, food handlers
and food retailers, not States or tribes,
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nor does this action alter the
relationships or distribution of power
and responsibilities established by
Congress in the preemption provisions
of section 408(n)(4) of FFDCA. As such,
the Agency has determined that this
action will not have a substantial direct
effect on States or tribal governments,
on the relationship between the national
government and the States or tribal
governments, or on the distribution of
power and responsibilities among the
various levels of government or between
the Federal Government and Indian
tribes. Thus, the Agency has determined
that Executive Order 13132, entitled
Federalism (64 FR 43255, August 10,
1999) and Executive Order 13175,
entitled Consultation and Coordination
with Indian Tribal Governments (65 FR
67249, November 6, 2000) do not apply
to this rule. In addition, This rule does
not impose any enforceable duty or
contain any unfunded mandate as
described under Title II of the Unfunded
Mandates Reform Act of 1995 (UMRA)
(Public Law 104–4).
This action does not involve any
technical standards that would require
Agency consideration of voluntary
consensus standards pursuant to section
12(d) of the National Technology
Transfer and Advancement Act of 1995
(NTTAA), Public Law 104–113, section
12(d) (15 U.S.C. 272 note).
VII. Congressional Review Act
The Congressional Review Act, 5
U.S.C. 801 et seq., generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report to each House of
the Congress and to the Comptroller
General of the United States. EPA will
submit a report containing this rule and
other required information to the U.S.
Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to
publication of this final rule in the
Federal Register. This final rule is not
a ‘‘major rule’’ as defined by 5 U.S.C.
804(2).
List of Subjects in 40 CFR Part 180
Environmental protection,
Administrative practice and procedure,
Agricultural commodities, Pesticides
and pests, Reporting and recordkeeping
requirements.
Dated: May 31, 2007.
Donald R. Stubbs,
Acting Director, Registration Division, Office
of Pesticide Programs.
Therefore, 40 CFR chapter I is
amended as follows:
I
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PART 180—[AMENDED]
1. The authority citation for part 180
continues to read as follows:
I
Authority: 21 U.S.C. 321(q), 346a and 371.
2. Section 180.106 is amended by
redesignating the text in paragraph (a) as
(a)(1); by adding paragraph (a)(2); and
by adding text to paragraph (c) to read
as follows:
I
§ 180.106
Diuron; tolerances for residues.
(a) (1) * * *
(2) Tolerances are established for the
combined residues of the herbicide
diuron (3-(3,4-dichlorophenyl)-1,1dimethylurea and its metabolites
convertible to 3,4-dichloroaniline, in or
on the following raw agricultural
commodities:
Commodity
Parts per million
Fish - freshwater
finfish, farm raised
Peppermint, tops
Spearmint, tops
2.0
1.5
1.5
*
*
*
*
*
(c) Tolerances with regional
registrations. Tolerances with a regional
registration as defined in § 180.1(n) are
established for the combined residues of
the herbicide diuron (3-(3,4dichlorophenyl)-1,1-dimethylurea and
its metabolites convertible to 3,4dichloroaniline) in or on the raw
agricultural commodities:
Commodity
Parts per million
Cactus
*
0.05
*
*
*
*
[FR Doc. E7–11205 Filed 6–12–07; 8:45 am]
BILLING CODE 6560–50–S
AGENCY FOR INTERNATIONAL
DEVELOPMENT
48 CFR Parts 719 and 752
RIN 0412–AA58
´ ´
Mentor-Protege Program
U.S. Agency for International
Development (USAID).
ACTION: Final Rule.
AGENCY:
SUMMARY: The United States Agency for
International Development (USAID) is
issuing this final rule to amend its
acquisition regulations to formally
encourage USAID prime contractors to
assist small business, including veteranowned small business, service-disabled
veteran-owned small business,
HUBZone, small socially and
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economically disadvantaged business,
and women-owned small business, in
enhancing their capabilities to perform
contracts and subcontracts for USAID
and other Federal agencies. The
program seeks 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 to increase the overall
number of small business entities that
receive USAID contracts, and
subcontract awards.
DATES: Effective Date: This rule will take
effect July 13, 2007.
FOR FURTHER INFORMATION CONTACT:
Rockfeler P. Herisse, Ph.D., U.S. Agency
for International Development, Attn.
´ ´
Mentor-Protege Program, Office of Small
and Disadvantaged Business Utilization,
1300 Pennsylvania Avenue, NW.,
Washington, DC 20523–7800,
Telephone: 202–712–0064, and E-mail:
rherisse@usaid.gov.
SUPPLEMENTARY INFORMATION:
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I. Background
II. Resolution of Comments
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 November 22, 2006, the U.S.
Agency for International Development
(USAID) published a notice of proposed
rulemaking (71 FR 67518), which
proposed to develop a program that
encouraged USAID prime contractors to
assist small business, including veteranowned small business, service-disabled
small business, HUBZone, small
socially and economically
disadvantaged business, and womenowned small business in enhancing
their capabilities to perform contracts
and subcontracts for USAID and other
Federal agencies. Comments on this
proposed rule were extended to and
closed on February 22, 2007 (71 FR
70939).
´ ´
Successful Mentor-Protege
arrangements represent opportunities
for creating access for small business to
USAID contracts and awards let through
negotiated procurements. USAID
received comments on the proposed
rule suggesting the Agency clarify the
eligible participants in the Program and
the types of incentives USAID may
provide to prime contractors for
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providing developmental assistance to
´ ´
proteges. After careful consideration of
the public comments received on the
notice of proposed rulemaking, USAID
today publishes a final rule.
II. Resolution of Comments
Fourteen comments were received in
response to the proposed rule. The
comments and USAID’s responses are as
follows:
Comment: USAID’s implementation
´ ´
of its Mentor-Protege Program must be
narrowly tailored within SBA’s
statutory and regulatory constraints,
absent USAID-specific statutory
authority.
Response: USAID agrees that its
´ ´
Mentor-Protege Program must stay
within SBA regulations and USAIDspecific statutory authority.
USAID received two comments
related to Minority Serving Institutions
in the proposed rule.
Comment 1 states: We support the
inclusion of Minority Serving
´ ´
Institutions (MSIs) as eligible proteges
but recommend that the expanded
description of MSIs in this (the Purpose)
section be deleted since it is specifically
covered as a definition in section
719.273–2(b) and in FAR 2.101–2.
Comment 2 states: We support the
inclusion of Minority Serving
Institutions (MSIs) as eligible mentors,
but question USAID’s authority to use
MSIs as small business concern
´ ´
proteges.
Response: USAID intended to include
MSIs in the scope of this program.
However, doing so would be outside its
statutory authority. USAID agrees that it
does not currently have the statutory
authority for this provision and has
deleted this requirement from the
´ ´
Mentor-Protege Program regulations.
References to MSIs as mentors or
´ ´
proteges have been deleted from the
final rule.
USAID received two comments
related to the treatment of ‘‘affiliation’’
in the proposed rule.
Comment 1 states: We appreciate the
affirmation included in this (Purpose)
´ ´
section that a protege firm is not
considered an affiliate of a mentor
solely because of the developmental
´ ´
assistance the protege receives under
the Program but recommend that this
statement be moved to section 719.273–
2(a) where it more appropriately relates
to the definition of a ‘‘small business.’’
Comment 2 states: We do not believe
that [USAID] has the authority to waive
the SBA’s affiliation requirements, as set
forth in 13 CFR 121.103.
Response: USAID does not intend to
establish affiliate relationships or waive
the SBA affiliation requirements, as
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32541
doing so is not within the USAID
statutory authority. The final rule is
clarified in section 719.273–2.
Comment: We strongly support the
formulation that a mentor may have
´ ´
more than one protege providing that
each relationship complies with the
terms and conditions of the regulations
and the mentor can demonstrate that it
has the capacity to provide
developmental assistance appropriate to
´ ´
the specific protege. However, this
language is already more appropriately
addressed in sections 719.273–4(b) and
719.273–5(b) and thus should be deleted
from this [Purpose] section.
Response: USAID agrees with this
comment and has modified the final
rule.
Comment: The commenter cites a
portion of section 719.273–1 which
concludes with a statement that USAID
reserves the right ‘‘to limit the total
´ ´
number of proteges participating’’ in the
Program. The Agency has not disclosed
why it has an interest in establishing
limits on participation in the program.
It is also unclear whether this statement
means that the Agency would limit the
´ ´
number of proteges a mentor could have
or whether it is intended to operate as
an overall limit of the number of mentor
firms in the Program. For example,
[Section] 719.273–5(b) states that
USAID reserves the right to limit the
´ ´
number of proteges participating under
each mentor firm * * * By contrast, in
the Paperwork Reduction Act
discussion in the Background section
accompanying the rule the Agency
‘‘estimates’’ that there would be a total
of thirty firms required to complete the
application form. Regardless, we believe
the issue of any Agency imposed limits,
if there are to be any, is more
appropriately addressed elsewhere in
the substantive provisions of the rule.
Response: The commenter addresses
several attributes of the Program, some
of which are clarified in the final rule.
USAID confirms its intent to reserve the
right to limit the total number of
participants in the Program, as
expressed in section 719.273–4, in order
to insure its effective management of the
Program. The formulation in section
719.273–5(b) is clear in its intent to
reserve the right to limit the number of
´ ´
proteges participating under each
mentor under the Program, in order for
USAID to effectively manage the
Program, to conduct due diligence on all
´ ´
Mentor-Protege Agreements, and to
assure the developmental assistance
proposed in the Agreements is being
provided by the mentor to the
´ ´
protege(s). The discussion on the
Paperwork Reduction Act in the
Background section is intended to
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Federal Register / Vol. 72, No. 113 / Wednesday, June 13, 2007 / Rules and Regulations
provide an estimate of the number of
participants from the U.S. business
community to participate in the
Program and was not intended to set a
predetermined limit on the number of
participants in the Program. USAID will
monitor the number of Agreements
endorsed (participants accepted into the
Program) and in effect between the firms
within a given period of time. These
Agreements will be entered by firms in
the public domain outside the controls
of the USAID, but USAID imposes these
measures to potentially limit
participation in the Program to assure
´ ´
the integrity of the Mentor-Protege
Program. USAID agrees to reflect this
concern in the Internal Controls section
719.273–10(a)(4) of the final rule.
Comment: Addressing the definitions
in section 719.273–2, commenter noted
that the categories of firms eligible to
participate in the Program are already
covered in a more inclusive manner as
a defined term in paragraph (a) of this
Section and recommended deleting the
listing in paragraph (e).
Response: USAID disagrees with this
comment and believes that there is
merit in listing the categories of small
business firms in both the new
introductory paragraph of the section
and in the specific definition of a
´ ´
Protege.
Comment: (Referring to the last
sentence of undesignated first paragraph
of section 719.273–4) We recognize that
´ ´
the goal of the Mentor-Protege Program
is to expand the opportunities for small
businesses to participate in USAID
procurements. However, based on the
´ ´
capabilities of the prospective protege
firm and the developmental assistance it
may need, it may be unreasonable to
expect a prospective mentor firm to
´ ´
include the prospective protege in the
subcontracts at the outset of an
Agreement. We believe USAID intended
the scope of opportunities for
prospective firms to be as broad as
possible and that the Agency did not
´ ´
intend to restrict prospective proteges to
only those firms that are already
qualified as potential prime contractors
or as subcontractors under a mentor’s
prime contract * * *. We encourage
USAID to clarify this important issue of
eligibility in this paragraph.
Response: USAID does not expect nor
will it require a prospective mentor firm
´ ´
to include the prospective protege in the
subcontracts at the onset of an
Agreement. USAID has clarified this
issue of eligibility in the final rule.
Comment: The commenter, citing the
Federal Acquisition Regulation, states
that USAID relies on 15 U.S.C.
637(d)(4)(E) for its authority to provide
appropriate incentives to encourage
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subcontracting opportunities for small
business consistent with the efficient
and economical performance of the
contract * * * [A]lthough USAID could
provide certain evaluation preferences
´ ´
to mentors and proteges with an
approved Agreement, [commenter did]
not see how USAID can provide the
subcontracting credit that is set forth in
the proposed rule, noting that the
Department of Defense needed specific
statutory authority for their Mentor´ ´
Protege Program to provide for
subcontracting credits.
Response: USAID agrees that it
currently does not have statutory
authority to permit credit for
subcontracting and has modified the
final rule accordingly, to refine the
language in 719.273–3(b). We are
concerned about making the Program
´ ´
attractive to mentors and proteges
through allowable incentives under its
statutory authority. After reviewing
incentives offered by other U.S.
Government agencies and as permitted
by our regulations, we revised this
section, using the Environmental
Protection Agency (EPA) program as a
model. Under the same Small Business
Act authority cited above, EPA has
provided certain ‘‘incentives’’ for
mentors, as codified in 48 CFR
1552.219–71(j); their regulation states
that costs incurred by the offeror in
´ ´
fulfilling their agreement with a protege
firm are not reimbursable as a direct
cost under the contract, but if EPA is the
responsible audit agency, these costs
will be considered in determining
indirect cost rates. In the final rule,
USAID’s ‘‘incentive’’ is similar to one
provided by EPA.
Comment: When referencing a term
such as ‘‘small business,’’ HUBZone,
etc., USAID should be referring the
reader to SBA’s regulations rather than
the FAR. The term as used in USAID’s
regulation should also be consistent
with the term as defined in 13 CFR.
Response: USAID has modified the
final rule accordingly.
We received two comments on section
719.273–4(b)(1)(ii). The first commenter
noted that the section provides that the
applicable NAICS code for determining
small business status is the services or
´ ´
supplies to be provided by the Protege
to the mentor, but that ‘‘the January
2006 application form prescribes that
small business eligibility is based on the
primary NAICS code for the small
business concern. These two differing
standards must be reconciled. We
support the formulation used in the
rule.’’ The second commenter asked that
´ ´
USAID clarify that the protege must be
small for the NAICS codes assigned to
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the subcontract by the prime contractor
(13 CFR 121.405).
Response: In the final rule, USAID
´ ´
indicates that the protege must be small
for the NAICS codes designated by the
mentor, based on the supplies or
´ ´
services the protege may provide to the
mentor under a subcontract, in cases
where there is a subcontract. USAID is
´ ´
not limiting protege eligibility to only
those small businesses that have a
subcontract with the mentor, so we do
not want the final rule to appear to
make such a limitation. The comment
about the application form is outside the
scope of the proposed and this final
rule.
Comment: The Summary of the
proposed rule is not in agreement with
the language in the proposed regulation
and may be misleading.
Response: USAID agrees and has
modified the rule to harmonize the
summary and the language of the
regulation.
Comment: The clause reference
752.219–270 should be 752.219–70.
Response: USAID agrees and deleted
the number ‘‘2’’ from clause reference
752.219–70.
Comment: In section 719.273–4
´ ´
Eligibility of Mentor and Protege Firms
(b)(2), please clarify that the applicable
certifications must be in accordance
with SBA’s Program regulations
contained in 13 CFR 124 and 126.
Response: USAID agrees and has
modified the final rule accordingly.
III. Procedural Requirements
A. Review Under Executive Order 12866
Today’s regulatory action 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 final 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),
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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 final 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. Small entities
include small business, small
organizations, and small governmental
jurisdictions.
For purposes of assessing the impact
of today’s rule on small entities, small
entity is defined as: (1) A small business
that meets the definition of a small
business found in the Small Business
Act and codified in 13 CFR 121.201; (2)
a small governmental jurisdiction that is
a government of a city, county, town
school district or special district with a
population of less than 50,000; or (3) a
small organization that is any not-forprofit enterprise which is independently
owned and operated and is not
dominant in its field.
After considering the economic
impacts of today’s rule on small entities,
I certify that this action will not have a
significant economic impact on a
substantial number of small entities. In
determining whether a rule has a
significant economic impact on a
substantial number of entities, the
impact of concern is any significant
adverse economic impact on small
entities, since the primary purpose of
the regulatory flexibility analyses is to
identify and address regulatory
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alternatives ‘‘which minimize any
significant economic impact of the
proposed rule on small entities.’’ (5
U.S.C. 603 and 604) Thus, an agency
may certify that a rule will not have a
significant economic impact on a
substantial number of small entities if
the rule relieves regulatory burden, or
otherwise has a positive economic effect
on all of the small entities subject to the
rule. In fact, the purpose of the USAID
´ ´
Mentor-Protege Program is to increase
small business accessibility to USAID
contracting. This rule streamlines
USAID internal operating procedures
and will therefore not have a significant
economic impact on small entities.
D. Review Under the Paperwork
Reduction Act
This rule requires USAID Mentor´ ´
Protege Program participants to submit
an application (see section 719.273–7)
and annual progress reports to the
´ ´
USAID Mentor-Protege Program
Manager at USAID Headquarters (see
section 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. USAID
submitted the proposed collection of
information to the Office of
Management and Budget for review and
approval under the Paperwork
Reduction Act, 44 U.S.C. 3501, et seq.
The Office of Management and Budget
has not yet approved the collection of
information in this rule.
An agency may not conduct or
sponsor and a person is not required to
respond to a collection of information
unless it displays a currently valid OMB
control number (5 CFR 1320.5(b)).
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
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. States would not be
directly subject to this rule, since they
are not among the class of entities
´ ´
described as Mentors or Proteges.
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32543
USAID has determined that this 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
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.
I For the reasons set out in the
preamble, USAID amends 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:
I
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:
I
Subpart 719.273—The U.S. Agency for
International Development (USAID)
´ ´
Mentor-Protege Program
Sec.
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.
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 assist small business,
including veteran-owned small
business, service-disabled veteranowned small business, HUBZone, small
socially and economically
disadvantaged business, and womenowned small business in enhancing
their capabilities to perform contracts
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and sub-contracts for USAID and other
´ ´
Federal agencies. 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 increasing the overall
number of small business that receive
USAID contract and subcontract awards.
´ ´
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.
719.273–2
Definitions.
Throughout, the term ‘‘small
business’’ includes all categories of
small firms as defined by the Small
Business Administration (SBA) on
whose behalf the Office of Small and
Disadvantaged Business Utilization
(OSDBU) is chartered to advocate,
including small business, small
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 13 CFR part 124. The determination
of affiliation is a function of the SBA.
(a) 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.
(b) ‘‘Program’’ refers to the USAID
´ ´
Mentor-Protege Program as described in
this Chapter.
´ ´
(c) ‘‘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.
sroberts on PROD1PC70 with RULES
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 in 719.273–8 to fulfill the
terms of their agreement(s) with a
´ ´
Protege firm(s), are not reimbursable as
a direct cost under a USAID contract. If
USAID is the mentor’s responsible audit
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21:03 Jun 12, 2007
Jkt 211001
agency under FAR 42.703–1, USAID
will consider these costs in determining
indirect cost rates. If USAID is not the
responsible audit agency, mentors are
encouraged to enter into an advance
agreement with their responsible audit
agency on the treatment of such costs
when determining indirect cost rates.
(c) In addition to subparagraph (b)
above, 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
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.
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 section 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
the USAID, but are not required to be a
subcontractor to a USAID prime
contractor or be a USAID prime
contractor. Notwithstanding eligibility
requirements in this section, USAID
reserves the right to limit the number of
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Fmt 4700
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participants in the Program in order to
insure its effective management of the
´ ´
Mentor-Protege Program.
(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. A Protege:
(1) Must be a small business, veteranowned small business, service-disabled
veteran-owned small business,
HUBZone, small socially and
economically disadvantaged business,
and women-owned small business);
(2) Must meet the size standard
corresponding to the NAICS code that
the Mentor prime contractor believes
best describes the product or service
being acquired by the subcontract; and
(3) Eligible for award of government
contracts.
´ ´
(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.
´ ´
(d) A Protege firm shall self-certify to
a Mentor firm that it meets the
requirements set forth in paragraph (b)
of this section and possess related
certifications granted by the Small
Business Administration (e.g.,
HUBZone, 8(a), etc.). Mentors may rely
in good faith on written representations
´ ´
by potential Proteges that they meet the
specified eligibility requirements.
HUBZone and small disadvantaged
business status eligibility and
documentation requirements are
determined according to 13 CFR part
124.
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 small business including
small disadvantaged business, womenowned 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
´ ´
Proteges. However, to preserve the
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Federal Register / Vol. 72, No. 113 / Wednesday, June 13, 2007 / Rules and Regulations
integrity of the Program and assure the
quality of developmental assistance
´ ´
provided to Proteges, 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.
sroberts on PROD1PC70 with RULES
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 321–
1 (OMB Control number 0412–0574
approved on 5/22/2007). 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;
(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
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21:03 Jun 12, 2007
Jkt 211001
(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.
(d) 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.
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Fmt 4700
Sfmt 4700
32545
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.
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
´ ´
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;
(3) Reviewing and evaluating
financial reports and invoices submitted
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by the Mentor to verify that USAID is
not charged by the Mentor for providing
´ ´
developmental assistance to the Protege;
and
(4) Limiting the number of
´ ´
participants in the Mentor-Protege
Program within a reporting period, in
order to insure the effective
management of the Program.
(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
in all contracts where the prime
´ ´
contractor has signed a Mentor-Protege
Agreement with USAID.
PART 752—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Add section 752.219–70 to read as
follows:
´ ´
USAID Mentor-Protege
sroberts on PROD1PC70 with RULES
As prescribed in 719.273–11(a), insert
the following provision:
´ ´
USAID Mentor-Protege Program (July 13,
2007)
(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 are small business as defined
in 13 CFR parts 121, 124, and 126.
(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.
(d) Firms interested in participating in the
Program are encouraged to contact the
´ ´
USAID Mentor-Protege Program Manager
(202–712–1500) for more information.
(End of provision)
4. Add section 752.219–271 to read as
follows:
I
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21:03 Jun 12, 2007
Jkt 211001
As prescribed in AIDAR 719.273–
11(b), insert the following clause:
Mentor Requirements and Evaluation (July
13, 2007)
´ ´
(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)
Dated: May 31, 2007.
Robert K. Egge,
Acting Director, Office of Small and
Disadvantaged Business Utilization (OSDBU).
[FR Doc. E7–11093 Filed 6–11–07; 8:45 am]
BILLING CODE 6116–01–P
OFFICE OF MANAGEMENT AND
BUDGET
Office of Federal Procurement Policy
I
752.219–70
Program.
752.219–71 Mentor Requirements and
Evaluation.
48 CFR Part 9903
Cost Accounting Standards Board
(CAS); Applicability of Cost
Accounting Standards Coverage
Cost Accounting Standards
Board, Office of Federal Procurement
Policy, OMB.
ACTION: Final rule.
AGENCY:
SUMMARY: The Office of Federal
Procurement Policy, Cost Accounting
Standards (CAS) Board, has adopted,
without change from the interim rule, a
final rule revising the criteria applicable
to United Kingdom (UK) contractors for
filing a Disclosure Statement, Form No.
CASB DS–1. This rulemaking is
authorized pursuant to Section 26 of the
Office of Federal Procurement Policy
Act.
EFFECTIVE DATE: June 13, 2007.
FOR FURTHER INFORMATION CONTACT:
Laura Auletta, Manager, Cost
Accounting Standards Board, 725 17th
Street, NW., Room 9013, Washington,
DC 20503 (telephone: 202–395–3256).
SUPPLEMENTARY INFORMATION:
A. Background
On May 23, 2005, the Cost
Accounting Standards Board published
PO 00000
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Fmt 4700
Sfmt 4700
an interim rule with request for
comment (70 FR 29457) for the purpose
of revising the criteria applicable to
United Kingdom (UK) contractors for
filing a Disclosure Statement, Form No.
CASB DS–1. The interim rule was
adopted in order to comply with a
specific request by the UK Ministry of
Defence (MOD) to simplify the
compliance process with CAS Board
disclosure requirements for UK
contractors.
Unlike certain other foreign
contractors, UK contractors have been
required to file a CASB DS–1 in
accordance with CAS regulations. The
MOD initially approached the Board
with a request that UK contractors be
permitted to use the corresponding UK
form ‘‘Questionnaire on Method of
Allocation of Costs’’ (QMAC), in lieu of
the CASB DS–1. After a review of the
content of the QMAC, the UK and U.S.
representatives agreed that it did not
have the same scope as the CASB DS–
1. Therefore, it was agreed that to cover
the gap in the coverage a ‘‘Supplemental
QMAC’’ was needed.
Based upon the Board’s approval of a
Supplemental QMAC that is acceptable
to the MOD, the MOD requested that the
CAS Board allow UK contractors to
submit their basic QMAC, together with
the Supplemental QMAC, in lieu of the
DS–1. At its meeting on February 23,
2005, the Board agreed to change the
CAS requirements so that UK
contractors with CAS-covered contracts
may file the UK QMAC together with its
Supplement in lieu of the CASB DS–1
required of U.S. contractors. In
conjunction with this change, the Board
also agreed to eliminate the specific
paragraph addressing UK contractors at
9903.201–1(b)(12). As a result, UK
contractors are subject to the
requirements of 9903.201–1(b)(4), i.e.,
contracts and subcontracts with UK
contractors are exempt from CAS
‘‘insofar as the requirements of CAS
other than 9904.401 and 9904.402 are
concerned.’’ The May, 2005 interim rule
reflected these Board approved
revisions.
B. Public Comments
The Board received one set of public
comments in response to the Interim
Rule.
1. CAS Coverage for UK Contractors
Comment: The commenter requested
confirmation that the rule requires that
UK contractors comply only with CAS
401 and 402.
Response: The language in the final
rule requires that all UK contractors
performing U.S. Government contracts
and not otherwise exempt under 48 CFR
E:\FR\FM\13JNR1.SGM
13JNR1
]]>Agencies
[Federal Register Volume 72, Number 113 (Wednesday, June 13, 2007)]
[Rules and Regulations]
[Pages 32540-32546]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11093]
=======================================================================
-----------------------------------------------------------------------
AGENCY FOR INTERNATIONAL DEVELOPMENT
48 CFR Parts 719 and 752
RIN 0412-AA58
Mentor-Prot[eacute]g[eacute] Program
AGENCY: U.S. Agency for International Development (USAID).
ACTION: Final Rule.
-----------------------------------------------------------------------
SUMMARY: The United States Agency for International Development (USAID)
is issuing this final rule to amend its acquisition regulations to
formally encourage USAID prime contractors to assist small business,
including veteran-owned small business, service-disabled veteran-owned
small business, HUBZone, small socially and
[[Page 32541]]
economically disadvantaged business, and women-owned small business, in
enhancing their capabilities to perform contracts and subcontracts for
USAID and other Federal agencies. The program seeks 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 to increase the overall number of small business entities
that receive USAID contracts, and subcontract awards.
DATES: Effective Date: This rule will take effect July 13, 2007.
FOR FURTHER INFORMATION CONTACT: Rockfeler P. Herisse, Ph.D., U.S.
Agency for International Development, Attn. Mentor-
Prot[eacute]g[eacute] Program, Office of Small and Disadvantaged
Business Utilization, 1300 Pennsylvania Avenue, NW., Washington, DC
20523-7800, Telephone: 202-712-0064, and E-mail: rherisse@usaid.gov.
SUPPLEMENTARY INFORMATION:
I. Background
II. Resolution of Comments
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 November 22, 2006, the U.S. Agency for International Development
(USAID) published a notice of proposed rulemaking (71 FR 67518), which
proposed to develop a program that encouraged USAID prime contractors
to assist small business, including veteran-owned small business,
service-disabled small business, HUBZone, small socially and
economically disadvantaged business, and women-owned small business in
enhancing their capabilities to perform contracts and subcontracts for
USAID and other Federal agencies. Comments on this proposed rule were
extended to and closed on February 22, 2007 (71 FR 70939).
Successful Mentor-Prot[eacute]g[eacute] arrangements represent
opportunities for creating access for small business to USAID contracts
and awards let through negotiated procurements. USAID received comments
on the proposed rule suggesting the Agency clarify the eligible
participants in the Program and the types of incentives USAID may
provide to prime contractors for providing developmental assistance to
prot[eacute]g[eacute]s. After careful consideration of the public
comments received on the notice of proposed rulemaking, USAID today
publishes a final rule.
II. Resolution of Comments
Fourteen comments were received in response to the proposed rule.
The comments and USAID's responses are as follows:
Comment: USAID's implementation of its Mentor-Prot[eacute]g[eacute]
Program must be narrowly tailored within SBA's statutory and regulatory
constraints, absent USAID-specific statutory authority.
Response: USAID agrees that its Mentor-Prot[eacute]g[eacute]
Program must stay within SBA regulations and USAID-specific statutory
authority.
USAID received two comments related to Minority Serving
Institutions in the proposed rule.
Comment 1 states: We support the inclusion of Minority Serving
Institutions (MSIs) as eligible prot[eacute]g[eacute]s but recommend
that the expanded description of MSIs in this (the Purpose) section be
deleted since it is specifically covered as a definition in section
719.273-2(b) and in FAR 2.101-2.
Comment 2 states: We support the inclusion of Minority Serving
Institutions (MSIs) as eligible mentors, but question USAID's authority
to use MSIs as small business concern prot[eacute]g[eacute]s.
Response: USAID intended to include MSIs in the scope of this
program. However, doing so would be outside its statutory authority.
USAID agrees that it does not currently have the statutory authority
for this provision and has deleted this requirement from the Mentor-
Prot[eacute]g[eacute] Program regulations. References to MSIs as
mentors or prot[eacute]g[eacute]s have been deleted from the final
rule.
USAID received two comments related to the treatment of
``affiliation'' in the proposed rule.
Comment 1 states: We appreciate the affirmation included in this
(Purpose) section that a prot[eacute]g[eacute] firm is not considered
an affiliate of a mentor solely because of the developmental assistance
the prot[eacute]g[eacute] receives under the Program but recommend that
this statement be moved to section 719.273-2(a) where it more
appropriately relates to the definition of a ``small business.''
Comment 2 states: We do not believe that [USAID] has the authority
to waive the SBA's affiliation requirements, as set forth in 13 CFR
121.103.
Response: USAID does not intend to establish affiliate
relationships or waive the SBA affiliation requirements, as doing so is
not within the USAID statutory authority. The final rule is clarified
in section 719.273-2.
Comment: We strongly support the formulation that a mentor may have
more than one prot[eacute]g[eacute] providing that each relationship
complies with the terms and conditions of the regulations and the
mentor can demonstrate that it has the capacity to provide
developmental assistance appropriate to the specific
prot[eacute]g[eacute]. However, this language is already more
appropriately addressed in sections 719.273-4(b) and 719.273-5(b) and
thus should be deleted from this [Purpose] section.
Response: USAID agrees with this comment and has modified the final
rule.
Comment: The commenter cites a portion of section 719.273-1 which
concludes with a statement that USAID reserves the right ``to limit the
total number of prot[eacute]g[eacute]s participating'' in the Program.
The Agency has not disclosed why it has an interest in establishing
limits on participation in the program. It is also unclear whether this
statement means that the Agency would limit the number of
prot[eacute]g[eacute]s a mentor could have or whether it is intended to
operate as an overall limit of the number of mentor firms in the
Program. For example, [Section] 719.273-5(b) states that USAID reserves
the right to limit the number of prot[eacute]g[eacute]s participating
under each mentor firm * * * By contrast, in the Paperwork Reduction
Act discussion in the Background section accompanying the rule the
Agency ``estimates'' that there would be a total of thirty firms
required to complete the application form. Regardless, we believe the
issue of any Agency imposed limits, if there are to be any, is more
appropriately addressed elsewhere in the substantive provisions of the
rule.
Response: The commenter addresses several attributes of the
Program, some of which are clarified in the final rule. USAID confirms
its intent to reserve the right to limit the total number of
participants in the Program, as expressed in section 719.273-4, in
order to insure its effective management of the Program. The
formulation in section 719.273-5(b) is clear in its intent to reserve
the right to limit the number of prot[eacute]g[eacute]s participating
under each mentor under the Program, in order for USAID to effectively
manage the Program, to conduct due diligence on all Mentor-
Prot[eacute]g[eacute] Agreements, and to assure the developmental
assistance proposed in the Agreements is being provided by the mentor
to the prot[eacute]g[eacute](s). The discussion on the Paperwork
Reduction Act in the Background section is intended to
[[Page 32542]]
provide an estimate of the number of participants from the U.S.
business community to participate in the Program and was not intended
to set a predetermined limit on the number of participants in the
Program. USAID will monitor the number of Agreements endorsed
(participants accepted into the Program) and in effect between the
firms within a given period of time. These Agreements will be entered
by firms in the public domain outside the controls of the USAID, but
USAID imposes these measures to potentially limit participation in the
Program to assure the integrity of the Mentor-Prot[eacute]g[eacute]
Program. USAID agrees to reflect this concern in the Internal Controls
section 719.273-10(a)(4) of the final rule.
Comment: Addressing the definitions in section 719.273-2, commenter
noted that the categories of firms eligible to participate in the
Program are already covered in a more inclusive manner as a defined
term in paragraph (a) of this Section and recommended deleting the
listing in paragraph (e).
Response: USAID disagrees with this comment and believes that there
is merit in listing the categories of small business firms in both the
new introductory paragraph of the section and in the specific
definition of a Prot[eacute]g[eacute].
Comment: (Referring to the last sentence of undesignated first
paragraph of section 719.273-4) We recognize that the goal of the
Mentor-Prot[eacute]g[eacute] Program is to expand the opportunities for
small businesses to participate in USAID procurements. However, based
on the capabilities of the prospective prot[eacute]g[eacute] firm and
the developmental assistance it may need, it may be unreasonable to
expect a prospective mentor firm to include the prospective
prot[eacute]g[eacute] in the subcontracts at the outset of an
Agreement. We believe USAID intended the scope of opportunities for
prospective firms to be as broad as possible and that the Agency did
not intend to restrict prospective prot[eacute]g[eacute]s to only those
firms that are already qualified as potential prime contractors or as
subcontractors under a mentor's prime contract * * *. We encourage
USAID to clarify this important issue of eligibility in this paragraph.
Response: USAID does not expect nor will it require a prospective
mentor firm to include the prospective prot[eacute]g[eacute] in the
subcontracts at the onset of an Agreement. USAID has clarified this
issue of eligibility in the final rule.
Comment: The commenter, citing the Federal Acquisition Regulation,
states that USAID relies on 15 U.S.C. 637(d)(4)(E) for its authority to
provide appropriate incentives to encourage subcontracting
opportunities for small business consistent with the efficient and
economical performance of the contract * * * [A]lthough USAID could
provide certain evaluation preferences to mentors and
prot[eacute]g[eacute]s with an approved Agreement, [commenter did] not
see how USAID can provide the subcontracting credit that is set forth
in the proposed rule, noting that the Department of Defense needed
specific statutory authority for their Mentor-Prot[eacute]g[eacute]
Program to provide for subcontracting credits.
Response: USAID agrees that it currently does not have statutory
authority to permit credit for subcontracting and has modified the
final rule accordingly, to refine the language in 719.273-3(b). We are
concerned about making the Program attractive to mentors and
prot[eacute]g[eacute]s through allowable incentives under its statutory
authority. After reviewing incentives offered by other U.S. Government
agencies and as permitted by our regulations, we revised this section,
using the Environmental Protection Agency (EPA) program as a model.
Under the same Small Business Act authority cited above, EPA has
provided certain ``incentives'' for mentors, as codified in 48 CFR
1552.219-71(j); their regulation states that costs incurred by the
offeror in fulfilling their agreement with a prot[eacute]g[eacute] firm
are not reimbursable as a direct cost under the contract, but if EPA is
the responsible audit agency, these costs will be considered in
determining indirect cost rates. In the final rule, USAID's
``incentive'' is similar to one provided by EPA.
Comment: When referencing a term such as ``small business,''
HUBZone, etc., USAID should be referring the reader to SBA's
regulations rather than the FAR. The term as used in USAID's regulation
should also be consistent with the term as defined in 13 CFR.
Response: USAID has modified the final rule accordingly.
We received two comments on section 719.273-4(b)(1)(ii). The first
commenter noted that the section provides that the applicable NAICS
code for determining small business status is the services or supplies
to be provided by the Prot[eacute]g[eacute] to the mentor, but that
``the January 2006 application form prescribes that small business
eligibility is based on the primary NAICS code for the small business
concern. These two differing standards must be reconciled. We support
the formulation used in the rule.'' The second commenter asked that
USAID clarify that the prot[eacute]g[eacute] must be small for the
NAICS codes assigned to the subcontract by the prime contractor (13 CFR
121.405).
Response: In the final rule, USAID indicates that the
prot[eacute]g[eacute] must be small for the NAICS codes designated by
the mentor, based on the supplies or services the prot[eacute]g[eacute]
may provide to the mentor under a subcontract, in cases where there is
a subcontract. USAID is not limiting prot[eacute]g[eacute] eligibility
to only those small businesses that have a subcontract with the mentor,
so we do not want the final rule to appear to make such a limitation.
The comment about the application form is outside the scope of the
proposed and this final rule.
Comment: The Summary of the proposed rule is not in agreement with
the language in the proposed regulation and may be misleading.
Response: USAID agrees and has modified the rule to harmonize the
summary and the language of the regulation.
Comment: The clause reference 752.219-270 should be 752.219-70.
Response: USAID agrees and deleted the number ``2'' from clause
reference 752.219-70.
Comment: In section 719.273-4 Eligibility of Mentor and
Prot[eacute]g[eacute] Firms (b)(2), please clarify that the applicable
certifications must be in accordance with SBA's Program regulations
contained in 13 CFR 124 and 126.
Response: USAID agrees and has modified the final rule accordingly.
III. Procedural Requirements
A. Review Under Executive Order 12866
Today's regulatory action 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 final
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),
[[Page 32543]]
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 final 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. Small entities include small
business, small organizations, and small governmental jurisdictions.
For purposes of assessing the impact of today's rule on small
entities, small entity is defined as: (1) A small business that meets
the definition of a small business found in the Small Business Act and
codified in 13 CFR 121.201; (2) a small governmental jurisdiction that
is a government of a city, county, town school district or special
district with a population of less than 50,000; or (3) a small
organization that is any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.
After considering the economic impacts of today's rule on small
entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. In
determining whether a rule has a significant economic impact on a
substantial number of entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the proposed rule on small entities.'' (5 U.S.C. 603
and 604) Thus, an agency may certify that a rule will not have a
significant economic impact on a substantial number of small entities
if the rule relieves regulatory burden, or otherwise has a positive
economic effect on all of the small entities subject to the rule. In
fact, the purpose of the USAID Mentor-Prot[eacute]g[eacute] Program is
to increase small business accessibility to USAID contracting. This
rule streamlines USAID internal operating procedures and will therefore
not have a significant economic impact on small entities.
D. Review Under the Paperwork Reduction Act
This rule requires USAID Mentor-Prot[eacute]g[eacute] Program
participants to submit an application (see section 719.273-7) and
annual progress reports to the USAID Mentor-Prot[eacute]g[eacute]
Program Manager at USAID Headquarters (see section 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. USAID submitted the
proposed collection of information to the Office of Management and
Budget for review and approval under the Paperwork Reduction Act, 44
U.S.C. 3501, et seq. The Office of Management and Budget has not yet
approved the collection of information in this rule.
An agency may not conduct or sponsor and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number (5 CFR 1320.5(b)).
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 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. 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 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 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.
0
For the reasons set out in the preamble, USAID amends 48 CFR Chapter 7
as set forth below:
PART 719--SMALL BUSINESS PROGRAMS
0
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.
0
2. A new subpart 719.273 is added as follows:
Subpart 719.273--The U.S. Agency for International Development
(USAID) Mentor-Prot[eacute]g[eacute] Program
Sec.
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.
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
assist small business, including veteran-owned small business, service-
disabled veteran-owned small business, HUBZone, small socially and
economically disadvantaged business, and women-owned small business in
enhancing their capabilities to perform contracts
[[Page 32544]]
and sub-contracts for USAID and other Federal agencies. 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 increasing the overall number of
small business that receive USAID contract and subcontract awards. 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.
719.273-2 Definitions.
Throughout, the term ``small business'' includes all categories of
small firms as defined by the Small Business Administration (SBA) on
whose behalf the Office of Small and Disadvantaged Business Utilization
(OSDBU) is chartered to advocate, including small business, small
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 13 CFR part 124. The
determination of affiliation is a function of the SBA.
(a) 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].
(b) ``Program'' refers to the USAID Mentor-Prot[eacute]g[eacute]
Program as described in this Chapter.
(c) ``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.
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 in 719.273-8 to fulfill the terms of their agreement(s)
with a Prot[eacute]g[eacute] firm(s), are not reimbursable as a direct
cost under a USAID contract. If USAID is the mentor's responsible audit
agency under FAR 42.703-1, USAID will consider these costs in
determining indirect cost rates. If USAID is not the responsible audit
agency, mentors are encouraged to enter into an advance agreement with
their responsible audit agency on the treatment of such costs when
determining indirect cost rates.
(c) In addition to subparagraph (b) above, 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
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 section 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 the USAID, but
are not required to be a subcontractor to a USAID prime contractor or
be a USAID prime contractor. Notwithstanding eligibility requirements
in this section, USAID reserves the right to limit the number of
participants in the Program in order to insure its effective management
of the Mentor-Prot[eacute]g[eacute] Program.
(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. A Prot[eacute]g[eacute]:
(1) Must be a small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone, small socially
and economically disadvantaged business, and women-owned small
business);
(2) Must meet the size standard corresponding to the NAICS code
that the Mentor prime contractor believes best describes the product or
service being acquired by the subcontract; and
(3) Eligible for award of government contracts.
(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.
(d) A Prot[eacute]g[eacute] firm shall self-certify to a Mentor
firm that it meets the requirements set forth in paragraph (b) of this
section and possess related certifications granted by the Small
Business Administration (e.g., HUBZone, 8(a), etc.). Mentors may rely
in good faith on written representations by potential
Prot[eacute]g[eacute]s that they meet the specified eligibility
requirements. HUBZone and small disadvantaged business status
eligibility and documentation requirements are determined according to
13 CFR part 124.
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 small business including 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, to
preserve the
[[Page 32545]]
integrity of the Program and assure the quality of developmental
assistance provided to Prot[eacute]g[eacute]s, 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 321-1 (OMB Control number 0412-0574
approved on 5/22/2007). 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.
(d) 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. 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;
(3) Reviewing and evaluating financial reports and invoices
submitted
[[Page 32546]]
by the Mentor to verify that USAID is not charged by the Mentor for
providing developmental assistance to the Prot[eacute]g[eacute]; and
(4) Limiting the number of participants in the Mentor-
Prot[eacute]g[eacute] Program within a reporting period, in order to
insure the effective management of the Program.
(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
0
3. Add section 752.219-70 to read as follows:
752.219-70 USAID Mentor-Prot[eacute]g[eacute] Program.
As prescribed in 719.273-11(a), insert the following provision:
USAID Mentor-Prot[eacute]g[eacute] Program (July 13, 2007)
(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 are small business as defined in 13 CFR
parts 121, 124, and 126.
(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.
(d) Firms interested in participating in the Program are
encouraged to contact the USAID Mentor-Prot[eacute]g[eacute] Program
Manager (202-712-1500) for more information.
(End of provision)
0
4. Add section 752.219-271 to read as follows:
752.219-71 Mentor Requirements and Evaluation.
As prescribed in AIDAR 719.273-11(b), insert the following clause:
Mentor Requirements and Evaluation (July 13, 2007)
(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)
Dated: May 31, 2007.
Robert K. Egge,
Acting Director, Office of Small and Disadvantaged Business Utilization
(OSDBU).
[FR Doc. E7-11093 Filed 6-11-07; 8:45 am]
BILLING CODE 6116-01-P
