General Services Acquisition Regulation; GSAR Case 2006-G501; GSA Mentor-Protégé Program, 32669-32674 [E8-12923]

Agencies

• General Services Administration

[Federal Register Volume 73, Number 112 (Tuesday, June 10, 2008)]
[Proposed Rules]
[Pages 32669-32674]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12923]


=======================================================================
-----------------------------------------------------------------------

GENERAL SERVICES ADMINISTRATION

48 CFR Parts 519 and 552

[GSAR Case 2006-G501; Docket 2008-0007; Sequence 2]
RIN 3090-AI56


General Services Acquisition Regulation; GSAR Case 2006-G501; GSA 
Mentor-Prot[eacute]g[eacute] Program

AGENCY: Office of the Chief Acquisition Officer, General Services 
Administration (GSA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Acquisition Regulation (GSAR) to establish a 
GSA Mentor-Prot[eacute]g[eacute] Program. The GSA Mentor-
Prot[eacute]g[eacute] Program is designed to encourage GSA prime 
contractors to assist small businesses, small disadvantaged businesses, 
women-owned small businesses, veteran-owned small businesses, service-
disabled veteran-owned small businesses, and HUBZone small businesses 
in enhancing their capabilities to perform GSA contracts and 
subcontracts, foster the establishment of long-term business 
relationships between these small business entities and GSA prime 
contractors, and increase the overall number of small business entities 
that receive GSA contract and subcontract awards.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before August 11, 2008 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR Case 2006-G501 by any of 
the following methods:
     Regulations.gov: https://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by inputting ``GSAR Case 
2006-G501'' under the heading ``Comment or Submission''. Select the 
link ``Send a Comment or Submission'' that corresponds with GSAR Case 
2006-G501. Follow the instructions provided to complete the ``Public 
Comment and Submission Form''. Please include your name, company name 
(if any), and ``GSAR Case 2006-G501'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VPR), 1800 F Street, NW, Room 4041, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR Case 2006-
G501 in all correspondence related to this case. All comments received 
will be posted without change to https://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT For clarification of content, contact 
Ms. Rhonda Cundiff at (202) 501-0044. For information pertaining to the 
status or publication schedules, contact the Regulatory Secretariat 
(VPR), Room 4041, GS Building, Washington, DC 20405, (202) 501-4755. 
Please cite GSAR Case 2006-G501.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the General Services Administration 
Acquisition Regulation (GSAR) by adding a new Subpart, 519.70, GSA 
Mentor-Prot[eacute]g[eacute] Program, which outlines the Agency's 
Mentor-Prot[eacute]g[eacute] Program.
    Associated contract clauses are added at 552.219-75, GSA Mentor-
Prot[eacute]g[eacute] Program, and 552.219-76, Mentor Requirements and 
Evaluation. GSA strongly supports increasing opportunities for small 
business concerns, recognizing the continuing need to develop the 
capabilities of small business, small disadvantaged business, HUBZone 
small businesses, veteran-owned small businesses, service-disabled 
veteran-owned small businesses and women-owned small businesses to 
perform contracts and subcontracts for GSA.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The changes may have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because the rule will provide 
an opportunity for small business concerns to become 
prot[eacute]g[eacute]s and receive developmental assistance from GSA 
prime contractors under GSA contracts. The GSA Mentor-
Prot[eacute]g[eacute] Program is intended to provide subcontracting 
opportunities for prot[eacute]g[eacute]s to gain valuable experience 
and knowledge about Federal Government contracting.
    An Initial Regulatory Flexibility Analysis (IRFA) has been 
prepared. The analysis is summarized as follows:
    This proposed rule establishes a GSA Mentor-
Prot[eacute]g[eacute] Program to encourage GSA prime contractors to 
assist small businesses, small disadvantaged businesses, women-owned 
small businesses, veteran-owned small businesses, service-disabled 
veteran-owned small businesses, and HUBZone small businesses in 
enhancing their capabilities to perform GSA contracts and 
subcontracts, foster the establishment of long-term business 
relationships between these small business entities and GSA prime 
contractors, and increase the overall number of small business 
entities that receive GSA contract and subcontract awards.
    In accordance with the Small Business Act, it is the policy of 
the Government to provide maximum practicable opportunities in its 
acquisitions to these small business concerns and allow them to have 
the maximum practicable opportunity to participate as subcontractors 
in the contracts awarded by any executive agency, consistent with 
efficient contract performance. The General Services Administration 
Mentor-Prot[eacute]g[eacute] Program is designed to assist in this 
policy by encouraging GSA prime contractors to assist small 
businesses in enhancing their capabilities to perform contracts and 
subcontracts.
    The entities to which this rulemaking would apply are small 
business prot[eacute]g[eacute]s. It is estimated that there will be 
approximately 150 small business concerns impacted by this rule. The 
prot[eacute]g[eacute]s (small businesses) will be completing the 
Agreement with the mentor. In addition, the prot[eacute]g[eacute]s 
may complete voluntary reports pertaining to the GSA Mentor-
Prot[eacute]g[eacute] Program.
    The Regulatory Secretariat will be submitting a copy of the IRFA to 
the Chief Counsel for Advocacy of the Small Business Administration. A 
copy of the IRFA may be obtained from the Regulatory Secretariat. GSA 
will consider comments from small entities concerning the affected GSAR 
parts 519 and 552 in accordance with 5 U.S.C. 610. Comments must be 
submitted separately and should cite 5 U.S.C. 601, et seq. (GSAR Case 
2006-G501), in all correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) applies because the 
proposed rule contains information collection

[[Page 32670]]

requirements. Accordingly, the Regulatory Secretariat will be 
submitting a request for approval of a new information collection 
requirement concerning 3090-00XX, GSAR Case 2006-G501, GSA Mentor-
Prot[eacute]g[eacute] Program, to the Office of Management and Budget 
under 44 U.S.C. 3501, et seq.
    Annual Reporting Burden:
    Public reporting burden for this collection of information is 
estimated to average 3 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    The annual reporting burden is estimated as follows:
    Respondents: 300.
    Responses per respondent: 4.
    Total annual responses: 1200.
    Preparation hours per response: 3.
    Total response burden hours: 3600.

D. Request for Comments Regarding Paperwork Burden

    Submit comments, including suggestions for reducing this burden, 
not later than August 11, 2008 to: GSAR Desk Officer, OMB, Room 10102, 
NEOB, Washington, DC 20503, and a copy to the General Services 
Administration, Regulatory Secretariat (VPR), 1800 F Street, NW, Room 
4041, Washington, DC 20405.
    Public comments are particularly invited on: whether this 
collection of information is necessary for the proper performance of 
functions of the GSAR, and will have practical utility; whether our 
estimate of the public burden of this collection of information is 
accurate, and based on valid assumptions and methodology; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways in which we can minimize the burden of the 
collection of information on those who are to respond, through the use 
of appropriate technological collection techniques or other forms of 
information technology.
    Requester may obtain a copy of the justification from the General 
Services Administration, Regulatory Secretariat (VPR), Room 4041, 
Washington, DC 20405, telephone (202) 501-4755. Please cite OMB Control 
Number 3090-XXXX, GSAR Case 2006-G501, The GSA Mentor-
Prot[eacute]g[eacute] Program, in all correspondence.

List of Subjects in 48 CFR Parts 519 and 552

    Government procurement.

    Dated: June 3, 2008.
Al Matera,
Director, Office of Acquisition Policy.
    Therefore, GSA proposes to amend 48 CFR parts 519 and 552 as set 
forth below:
    1. The authority citation for 48 CFR parts 519 and 552 continues to 
read as follows:

    Authority:  40 U.S.C. 121(c).

PART 519--SMALL BUSINESS PROGRAMS

    2. Add Subpart 519.70 to read as follows:
Sec.
519.7001 Scope of subpart.
519.7002 Definitions.
519.7003 General policy.
519.7004 Incentives for prime contractor participation.
519.7005 Measurement of program success.
519.7006 Mentor firms.
519.7007 Prot[eacute]g[eacute] firms.
519.7008 Selection of prot[eacute]g[eacute] firms.
519.7009 Application process for mentor firms to participate in the 
Program.
519.7010 Application review and mentor-prot[eacute]g[eacute] 
Agreement process.
519.7011 Agreement contents.
519.7012 Developmental assistance.
519.7013 Obligation.
519.7014 Internal controls.
519.7015 Reports.
519.7016 Program review.
519.7017 Contract clauses.

Subpart 519.70--GSA Mentor-Prot[eacute]g[eacute] Program


519.7001   Scope of subpart.

    The GSA Mentor-Prot[eacute]g[eacute] Program is designed to 
encourage and motivate GSA prime contractors to assist small 
businesses, small disadvantaged businesses, women-owned small 
businesses, veteran-owned small businesses, service-disabled veteran-
owned small businesses, and HUBZone small businesses, and enhance their 
capabilities to perform GSA contracts and subcontracts, foster the 
establishment of long-term business relationships between these small 
business entities and GSA prime contractors, and increase the overall 
number of small business entities that receive GSA contract and 
subcontract awards.


519.7002   Definitions.

    The definitions of small business concern, small disadvantaged 
business concern, HUBZone small business concern, women-owned small 
business concern, veteran-owned small business concern, and service-
disabled veteran-owned small business concern are the same as found in 
FAR 2.101. (Also, see 13 CFR Parts 121, 124, 125 and 126 of the Small 
Business Administration Regulation.)
    (a) Mentor as used in the GSA Mentor-Prot[eacute]g[eacute] Program 
is a prime contractor that elects, on a specific GSA contract, to 
promote and develop small business subcontractors by providing 
developmental assistance designed to enhance the business success of 
the prot[eacute]g[eacute].
    (b) Mentor-Prot[eacute]g[eacute] Program Manager means the head of 
the Office of Small Business Utilization (OSBU (E)).
    (c) Prot[eacute]g[eacute] as used in the GSA Mentor-
Prot[eacute]g[eacute] Program is a small business who is the recipient 
of developmental assistance pursuant to a mentor-prot[eacute]g[eacute] 
arrangement on a specific contract.


519.7003   General policy.

    (a) A large business prime contractor which meets the requirements 
at 519.7006 and is approved as a mentor firm by the Mentor-
Prot[eacute]g[eacute] Program Manager may enter into an Agreement with 
a small business, small disadvantaged business, women-owned small 
business, veteran-owned small business and HUBZone small business which 
meets the requirements for being a prot[eacute]g[eacute] (see 519.7007) 
to provide appropriate developmental assistance to enhance the 
capabilities of the prot[eacute]g[eacute] to perform as a subcontractor 
and supplier.
    (b) A small business prime contractor which is capable of providing 
developmental assistance to prot[eacute]g[eacute]s, may also be 
approved as a mentor.
    (c) An active mentor-prot[eacute]g[eacute] arrangement requires the 
Prot[eacute]g[eacute] to be a subcontractor under the mentor's prime 
contract with GSA.
    (d) A firm's status as a prot[eacute]g[eacute] under a GSA contract 
shall not have an effect on the firm's ability to seek other prime 
contracts or subcontracts.
    (e) Mentors may join the GSA Mentor-Prot[eacute]g[eacute] Program 
at any time as long as they meet the requirements at 519.7006.


519.7004   Incentives for prime contractor participation.

    (a) Under the Small Business Act, 15 U.S.C. 637(d)(4)(E), the GSA 
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.
    (b) Costs incurred by a mentor to provide developmental assistance, 
as described in 519.7012 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 GSA contract. If

[[Page 32671]]

GSA is the mentor's responsible audit agency under FAR 42.703-1, GSA 
will consider these costs in determining indirect cost rates. If GSA 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 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] Agreements more favorablythan 
subcontracting plans without Mentor-Prot[eacute]g[eacute] Agreements; 
and
    (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 certain 
circumstances (see FAR 15.304(b)(3), and 15.305(a)(2)(v)), and 
determining contractor responsibility 19.705-5(a)(1).
    (d) OSBU Mentoring Award. A non-monetary award may 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 GSA Administrator.
    (e) OSBU Mentor-Prot[eacute]g[eacute] Annual Conference. At the 
conclusion of each year in the GSA 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. Participation is voluntary.


519.7005   Measurement of program success.

    The overall success of the GSA Mentor-Prot[eacute]g[eacute] Program 
encompassing all participating mentors and prot[eacute]g[eacute]s will 
be measured by the extent to which it results in--
    (a) An increase in the number, dollar value and percentage of 
subcontracts awarded to prot[eacute]g[eacute]s by mentor firms under 
GSA contracts since the date of entry into the Program;
    (b) An increase in the number and dollar value of contract and 
subcontract awards to prot[eacute]g[eacute] firms since the time of 
their entry into the Program (under GSA contracts, contracts awarded by 
other Federal agencies, and under commercial contracts);
    (c) An increase in the number and dollar value of subcontracts 
awarded to a prot[eacute]g[eacute] firm by its mentor firm; and
    (d) An increase in subcontracting with prot[eacute]g[eacute] firms 
in industry categories where they have not traditionally participated 
within the mentor firm's activity.


519.7006   Mentor firms.

    (a) Mentors must be--
    (1) A large business prime contractor that is currently, or has 
performed under at least one approved subcontracting plan awarded under 
a negotiated contract within the last five years, as required by FAR 
Subpart 19.7; Small business mentors are exempted; or
    (2) A small business prime contractor that can provide 
developmental assistance to enhance the capabilities of 
prot[eacute]g[eacute]s to perform as subcontractors and suppliers;
    (b) Must be eligible (not listed in the ``Excluded Parties List 
System'') for U.S. Government contracts and not excluded from the GSA 
Mentor-Prot[eacute]g[eacute] Program under 519.7014(b);
    (c) Must be able to provide developmental assistance that will 
enhance the ability of prot[eacute]g[eacute] to perform as 
subcontractors; and
    (d) Must provide semi-annual reports detailing the assistance 
provided and the cost incurred in supporting prot[eacute]g[eacute]s.


519.7007   Prot[eacute]g[eacute] firms.

    (a) For selection as a prot[eacute]g[eacute], a firm must be--
    (1) A small business concern, small disadvantaged business concern, 
veteran-owned small business concern, service-disabled veteran-owned 
small business concern, HUBZone small business concern, or women-owned 
small business concern;
    (2) Small for the NAICS code the prime contractor/mentor assigns to 
the subcontract; and
    (3) Eligible (not listed in the ``Excluded Parties List System'') 
for U.S. Government contracts and not excluded from the GSA Mentor-
Prot[eacute]g[eacute] Program under 519.7014(b);
    (b) A prot[eacute]g[eacute] firm may self-represent to a mentor 
firm that it meets the requirements set forth in paragraph (a) of this 
section. Mentors may check the Central Contractor Registration (CCR) at 
www.ccr.gov to verify the self-representations of the potential 
prot[eacute]g[eacute]s that they meet the specified small business and 
socioeconomic category eligibility requirements (see 19.703(b) and 
(d)). HUBZone and small disadvantaged business status eligibility and 
documentation requirements are determined according to 13 CFR parts 124 
and 126.
    (c) A prot[eacute]g[eacute] firm must not have another formal, 
active mentor-prot[eacute]g[eacute] relationship under GSA's Mentor-
Prot[eacute]g[eacute] Program but may have an active mentor-
prot[eacute]g[eacute] relationship in another agency's program.


519.7008   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 small business.
    (b) Mentor firms may have more than one prot[eacute]g[eacute].
    (c) The selection of prot[eacute]g[eacute] firms by mentor firms 
may not be protested, except for a protest regarding the size or 
eligibility status of an entity selected by a mentor to be a 
prot[eacute]g[eacute]. Such protests shall be handled in accordance 
with FAR 19.703(b). The contracting officer shall notify the Office of 
Small Business Utilization (OSBU) of the protest.


519.7009   Application process for mentor firms to participate in the 
Program.

    (a) Prime contractors interested in becoming a mentor firm must 
submit a request to be approved under the Program to the GSA Mentor-
Prot[eacute]g[eacute] Program Manager, at GSA Office of Small Business 
Utilization (E), Washington, DC 20405. The Application will be 
evaluated on the extent to which the company plans to provide 
developmental assistance.
    (b) The request must contain--
    (1) A statement that the mentor firm is currently performing under 
at least one active approved subcontracting plan (small business 
exempted) and that they are eligible, as of the date of Application, 
for the award of Federal contracts;
    (2) The number of proposed prot[eacute]g[eacute] arrangements;
    (3) Data on all current GSA contracts, and subcontracts to include 
the contract/subcontract number(s), type of contract(s), period of 
performance (including options), contract/subcontract value(s) 
including options, technical Program effort(s) (Program title), name of 
GSA Project Manager or Contracting Officer's Representative (including 
contact information), name of contracting officer(s)and contact 
information, and awarding GSA installation;
    (4) Data on total number and dollar value of subcontracts awarded 
under GSA prime contracts within the past 2 years and the number and 
dollar value of such subcontracts awarded to entities who are proposed 
prot[eacute]g[eacute]s;
    (5) Information on the proposed types of developmental assistance. 
For each

[[Page 32672]]

proposed mentor-prot[eacute]g[eacute] relationship include information 
on the company's ability to provide developmental assistance to the 
identified prot[eacute]g[eacute] firm and how that assistance will 
potentially increase subcontracting opportunities for the 
prot[eacute]g[eacute] firm, including subcontracting opportunities in 
industry categories where these entities are not dominant in the 
company's current subcontractor base; and
    (6) A Letter of Intent signed by both parties. At a minimum, the 
Letter of Intent must include the stated commitment that the parties 
intend to enter into a mentor-prot[eacute]g[eacute] Agreement under the 
GSA Program, that they intend to cooperate in the establishment of a 
suitable developmental assistance Program to meet their respective 
needs, and that they agree to comply with the obligations in 519.7013 
and all other applicable provisions governing the Program.


519.7010   Application review and mentor-prot[eacute]g[eacute] 
Agreement process.

    (a)(1) Application process. The information specified in 
519.7009(b) is reviewed by the GSA Mentor-Prot[eacute]g[eacute] Program 
Manager. This review will be completed no later than 30 days after 
receipt by the Mentor-Prot[eacute]g[eacute] Program Manager OSBU. The 
Mentor-Prot[eacute]g[eacute] Program Manager will provide a copy of the 
submitted information to the contracting officer and if applicable the 
cognizant GSA technical Program Manager for a parallel review and 
concurrence.
    (2) If the Mentor-Prot[eacute]g[eacute] Program Manager approves 
the Application, then the mentor--
    (i) Negotiates a mentor-prot[eacute]g[eacute] Agreement with the 
prot[eacute]g[eacute]; and
    (ii) Submits an original and two (2) copies of the Agreement to the 
GSA Mentor-Prot[eacute]g[eacute] Program Manager for approval.
    (3) If Mentor-Prot[eacute]g[eacute] Program Manager disapproves the 
application, then the mentor may provide additional information for 
reconsideration. The review of any supplemental material will be 
completed within 30 days after receipt by the Mentor-
Prot[eacute]g[eacute] Program Manager. Upon finding deficiencies that 
GSA considers correctable, the Mentor-Prot[eacute]g[eacute] Program 
Manager will notify the mentor and request information to be provided 
within 30 days that may correct the deficiencies.
    (b) The Mentor-Prot[eacute]g[eacute] Program Manager will provide a 
copy of the Agreement to the contracting officer, and if applicable the 
cognizant GSA technical Program Manager, for a parallel review and 
concurrence. The Mentor-Prot[eacute]g[eacute] Program Manager, the GSA 
technical Program Manager, and the contracting officer must approve or 
disapprove the Agreement within 60 days.
    (c) Upon notification by the Mentor-Prot[eacute]g[eacute] Program 
Manager that all the GSA parties have approved the Agreement, the 
mentor may implement a developmental assistance Program.
    (d) The contracting officer will incorporate an approved Agreement 
into the mentor's contract(s) with GSA. It should be added to the 
subcontracting plan.


519.7011   Agreement contents.

    The contents of the Agreement must contain--
    (a) Names, addresses (including facsimile, e-mail, and homepage) 
and telephone numbers of mentor and prot[eacute]g[eacute] firms and the 
name, telephone number, and position title within both firms of the 
person who will oversee the Agreement;
    (b) An eligibility statement from the prot[eacute]g[eacute] stating 
that it is a small business, its primary NAICs code, and when 
applicable the type of small business (small disadvantaged business 
concern, HUBZone small business concern, women-owned small business 
concern, veteran-owned small business concern, service-disabled 
veteran-owned small business concern);
    (c) A description of the type of developmental Program that will be 
provided by the mentor firm to the prot[eacute]g[eacute] firm (see 
519.7012);
    (d) Milestones for providing the identified developmental 
assistance;
    (e) Factors to assess the prot[eacute]g[eacute] firms developmental 
progress under the Program;
    (f) The anticipated dollar value and type of subcontracts that may 
be awarded to the prot[eacute]g[eacute] firm consistent with the extent 
and nature of mentor firm's business, and the period of time over which 
they may be awarded;
    (g) Program participation term. State the period of time over which 
the developmental assistance will be performed;
    (h) Mentor termination procedures. Describe the procedures for the 
mentor firm to notify the Prot[eacute]g[eacute] firm, in writing, at 
least 30 days in advance of the mentor firm's intent to voluntarily 
withdraw its participation in the Program, or to terminate the 
Agreement;
    (i) Prot[eacute]g[eacute] Termination From the Program. Describe 
the procedures for a prot[eacute]g[eacute] firm to notify the mentor 
firm, in writing, at least 30 days in advance of the 
prot[eacute]g[eacute] firm's intent to terminate the mentor-
prot[eacute]g[eacute] Agreement;
    (j) Plan for accomplishing contract work should the Mentor-
Prot[eacute]g[eacute] Agreement be terminated or a party excluded under 
519.7014(b). The mentor prime's contract with GSA continues even if the 
Mentor-Prot[eacute]g[eacute] Agreement or the GSA Mentor-
Prot[eacute]g[eacute] Program is discontinued;
    (k) The prot[eacute]g[eacute] must agree to provide input into the 
mentor firm's semi-annual reports (see 519.7015). The 
prot[eacute]g[eacute] must submit a ``lessons learned'' evaluation 
along with the mentor firm at the conclusion of the Mentor-
Prot[eacute]g[eacute] agreement; and
    (l) Other terms and conditions, as appropriate.


519.7012   Developmental assistance.

    The forms of developmental assistance a mentor can provide to a 
prot[eacute]g[eacute] include--
    (a) Management guidance relating to--
    (1) Financial management;
    (2) Organizational management;
    (3) Overall business management/planning; and
    (4) Business development;
    (b) Engineering and other technical assistance;
    (c) Loans;
    (d) Rent-free use of facilities and/or equipment;
    (e) Temporary assignment of personnel to the prot[eacute]g[eacute] 
for purpose of training;
    (f) Subcontracts awarded to prot[eacute]g[eacute] firms under this 
Program are exempt from competition requirements, notwithstanding 
52.244-5. However, price reasonableness should still be determined; or
    (g) Any other types of permissible, mutually beneficial assistance.


519.7013   Obligation.

    (a) The mentor or prot[eacute]g[eacute] may terminate the Agreement 
in accordance with 519.7011. The mentor will notify the Mentor-
Prot[eacute]g[eacute] Program Manager and the contracting officer, in 
writing, at least 30 days in advance of the mentor firm's intent to 
voluntarily withdraw from the Program or to terminate the Agreement, or 
upon receipt of a prot[eacute]g[eacute]'s notice to withdraw from the 
Program.
    (b) Mentor and prot[eacute]g[eacute] firms will submit a ``lessons 
learned'' evaluation to the GSA Mentor-Prot[eacute]g[eacute] Program 
Manager at the conclusion of each Mentor-Prot[eacute]g[eacute] 
Agreement.


519.7014   Internal controls.

    (a) The GSA Mentor-Prot[eacute]g[eacute] Program Manager will 
manage the Program. Internal controls will be established by the 
Mentor-Prot[eacute]g[eacute] Program Manager to achieve the stated 
Program objectives (by serving as checks and balances

[[Page 32673]]

against undesired actions or consequences) such as the following:
    (1) Reviewing and evaluating mentor Applications for realism, 
validity and accuracy of provided information.
    (2) Reviewing any semi-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 master plan 
contained in the approved Agreement.
    (b) GSA has the authority to exclude mentor or 
prot[eacute]g[eacute] firms from participating in the GSA Program.
    (1) The contracting officer or technical Program Manager can 
recommend exclusion and the length of exclusion from the Program. These 
actions shall be approved by the GSA Mentor-Prot[eacute]g[eacute] 
Program Manager.
    (2) If GSA has good cause to exclude a mentor or a 
prot[eacute]g[eacute] from the Program, the GSA Office of Small 
Business Utilization will deliver to the contractor a Notice specifying 
the reason for Program exclusion and the effective date.
    (3) The exclusion from the Program does not constitute a 
termination of the subcontract between the mentor and the 
prot[eacute]g[eacute].


519.7015   Reports.

    (a) Semi-annual reports shall be submitted by the mentor to the GSA 
Mentor-Prot[eacute]g[eacute] Program Manager to include information as 
outlined in 552.219-76(c).
    (b) Prot[eacute]g[eacute]s must agree to provide input into the 
mentor firm's semi-annual reports detailing the assistance provided and 
goals achieved since agreement inception. However, for cost 
reimbursable contracts, costs associated with the preparation of these 
reports are unallowable costs under these Government contracts and will 
not be reimbursed by the Government.
    (c) The GSA contracting officer, or if applicable the technical 
Program Manager, shall include an assessment of the prime contractor's 
(mentor's) performance in the Mentor-Prot[eacute]g[eacute] Program in a 
quarterly `Strengths and Weaknesses' evaluation report. A copy of this 
assessment will be provided to the Mentor-Prot[eacute]g[eacute] Program 
Manager and to the mentor and prot[eacute]g[eacute].


519.7016   Program review.

    At the conclusion of each year in the GSA Mentor-
Prot[eacute]g[eacute] Program (anniversary date of the GSA Mentor-
Prot[eacute]g[eacute] Program), the prime contractor and 
prot[eacute]g[eacute], as appropriate, will formally brief the GSA 
Mentor-Prot[eacute]g[eacute] Program Manager, the technical Program 
Manager, and the contracting officer regarding Mentor-
Prot[eacute]g[eacute] Program accomplishments pertaining to the 
approved Agreement.


519.7017   Contract clauses.

    (a) The contracting officer shall insert the clause at 552.219-75, 
GSA Mentor-Prot[eacute]g[eacute] Program, in all unrestricted 
solicitations and contracts that exceed the simplified acquisition 
threshold.
    (b) The contracting officer shall insert the clause at 552.219-76, 
Mentor Requirements and Evaluation, in contracts anticipated to exceed 
the simplified acquisition threshold.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Add sections 552.219-XX and 552.219-YY to read as follows:


552.219-XX   GSA Mentor-Prot[eacute]g[eacute] Program.

    As prescribed in 519.7017(a), insert the following clause:
    GSA Mentor-Prot[eacute]g[eacute] Program (DATE)
    (a) Prime Contractors, including small businesses, are encouraged 
to participate in the GSA Mentor-Prot[eacute]g[eacute] Program for the 
purpose of providing developmental assistance to eligible 
prot[eacute]g[eacute] entities to enhance their capabilities and 
increase their participation in GSA contracts.
    (b) The Program consists of--
    (1) Mentor firms, which are large prime Contractors with at least 
one active subcontracting plan, or which are eligible small businesses;
    (2) Prot[eacute]g[eacute]s, which are subcontractors to the prime 
Contractor, include small business concerns, small disadvantaged 
business concerns, veteran-owned small business concerns, service-
disabled veteran-owned small business concerns, HUBZone small business 
concerns, and women-owned small business concerns meeting the 
qualifications specified in Subpart 519.70; and
    (3) Mentor-prot[eacute]g[eacute] Applications and Agreements, 
approved by the Mentor-Prot[eacute]g[eacute] Program Manager in the GSA 
Office of Small Business Utilization (OSBU).
    (c) Mentor participation in the Program means providing technical, 
managerial and financial assistance to aid prot[eacute]g[eacute]s in 
developing requisite high-tech expertise and business systems to 
compete for and successfully perform GSA contracts and subcontracts.
    (d) Contractors interested in participating in the Program are 
encouraged to read GSAR Subpart 19.7 and to contact the GSA Office of 
Small Business Utilization (E), Washington, DC 20405, (202) 501-1021, 
for further information.
    (End of clause)


552.219-YY   Mentor Requirements and Evaluation.

    As prescribed in 519.7017(b), insert the following clause:
    Mentor Requirements and Evaluation (DATE)
    (a) The purpose of the GSA Mentor-Prot[eacute]g[eacute] Program is 
for a GSA prime Contractor to provide developmental assistance to 
certain subcontractors qualifying as prot[eacute]g[eacute]s. Eligible 
prot[eacute]g[eacute]s include small business concerns, small 
disadvantaged business concerns, veteran-owned small business concerns, 
service-disabled veteran-owned small business concerns, HUBZone small 
business concerns, and women-owned small business concerns meeting the 
qualifications specified in 519.7007. The Program requires an 
Application process and an Agreement between the mentor and the 
prot[eacute]g[eacute]. See GSAR Subpart 519.70 for more information.
    (b) GSA will evaluate a GSA mentor's performance on the following 
factors:
    (1) Specific actions taken by the Contractor, during the evaluation 
period, to increase the participation of its prot[eacute]g[eacute] as a 
subcontractor and supplier.
    (2) Specific actions taken by the Contractor during this evaluation 
period to develop the technical and corporate administrative expertise 
of its prot[eacute]g[eacute] as defined in the Agreement.
    (3) To what extent the prot[eacute]g[eacute] has met the 
developmental objectives in the Agreement.
    (4) To what extent the firm's participation in the GSA Mentor-
Prot[eacute]g[eacute] Program resulted in the prot[eacute]g[eacute] 
receiving competitive contract(s) and subcontract(s) from private firms 
other than the mentor, and from agencies.
    (c) Semi-annual reports shall be submitted by a GSA the mentor to 
the GSA Mentor-Prot[eacute]g[eacute] Program Manager, GSA Office of 
Small Business Utilization (E), Washington, DC 20405. The reports must 
include information as outlined in paragraph (b) of this clause.
    (d) A GSA mentor will notify the GSA Mentor-Prot[eacute]g[eacute] 
Program Manager and the Contracting Officer, in writing, at least 30 
days in advance of the mentor firm's intent to voluntarily withdraw 
from the GSA Program or terminate the Agreement, or upon receipt of a 
prot[eacute]g[eacute]'s notice to withdraw from the Program.
    (e) GSA mentor and prot[eacute]g[eacute] firms will submit a 
``lessons learned'' evaluation to the GSA Mentor-Prot[eacute]g[eacute] 
Program Manager at the conclusion of the Mentor-Prot[eacute]g[eacute] 
Agreement. At the end of each year in the GSA Mentor-
Prot[eacute]g[eacute] Program, the mentor and prot[eacute]g[eacute], as 
appropriate, will formally brief the GSA Mentor-Prot[eacute]g[eacute] 
Program Manager, the

[[Page 32674]]

technical Program Manager, and the Contracting Officer during a formal 
Program review regarding Program accomplishments as pertains to the 
approved Agreement.
    (f) GSA has the authority to exclude mentor or 
prot[eacute]g[eacute] firms from participating in the GSA Program. The 
Contracting Officer or technical Program Manager can recommend 
exclusion and the length of exclusion from the Program. These actions 
shall be approved by the GSA Mentor-Prot[eacute]g[eacute] Program 
Manager. If GSA has good cause to exclude a mentor or a 
prot[eacute]g[eacute] from the Program, the GSA Office of Small 
Business Utilization will deliver to the Contractor a Notice specifying 
the reason for Program exclusion and the effective date. The exclusion 
from the Program does not constitute a termination of the subcontract 
between the mentor and the prot[eacute]g[eacute]. A plan for 
accomplishing the subcontract effort should the Agreement be terminated 
shall be submitted with the Agreement as required in 519.7011(j).
    (g) Subcontracts awarded to GSA prot[eacute]g[eacute] firms under 
this Program are exempt from competition requirements, notwithstanding 
52.244-5. However, price reasonableness should still be determined.
    (End of clause)
[FR Doc. E8-12923 Filed 6-9-08; 8:45 am]
BILLING CODE 6820-61-S