NASA Mentor-Protégé Program, 25671-25677 [E9-12487]
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Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations
GENERAL SERVICES
ADMINISTRATION
48 CFR Parts 547 and 552
[GSAR Amendment 2009–06; GSAR Case
2006–G518 (Change 34); Docket 2008–0007;
Sequence 2]
RIN 3090–AI52
General Services Administration
Acquisition Regulation; GSAR Case
2006–G518; Rewrite of GSAR Part 547,
Transportation
AGENCIES: General Services
Administration (GSA), Office of the
Chief Acquisition Officer.
ACTION: Final rule.
SUMMARY: The General Services
Administration (GSA) is amending the
General Services Administration
Acquisition Regulation (GSAR) by
deleting and reserving Part 547,
Transportation.
DATES:
Effective Date: June 29, 2009
A. Background
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GSA published a proposed rule, with
request for comments, in the Federal
Register at 73 FR 32277 on June 6, 2008.
No comments were received in response
to the proposed rule. Therefore, the
proposed rule is converted to final with
no change. The information contained
in Subpart 547.3—Transportation in
Supply Contracts, sections 547.300,
547.303, 547.304, 547.305, and 547.370,
is being deleted. In addition, clauses
552.247–70, Placarding Railcar
Shipments, and 552.247–71, Diversion
of Shipment Under f.o.b. Destination
Contracts, are being deleted from
552.547.
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 General Services Administration
certifies that this final rule will not have
a significant economic impact on a
substantial number of small entities
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C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the changes to the
GSAR do not impose recordkeeping or
information collection requirements, or
otherwise collect information from
offerors, contractors, or members of the
public that require approval of the
Office of Management and Budget under
44 U.S.C. Chapter 35, et seq.
List of Subjects in 48 CFR Parts 547 and
552
Government procurement.
Dated: March 6, 2009.
Rodney P. Lantier,
Acting, Senior Procurement Executive, Office
of the Chief Acquisition Officer, General
Services Administration.
Therefore, under the authority of 40
U.S.C. 121(c), GSA amends 48 CFR parts
547 and 552 as set forth below:
■
For
clarification of content, contact Jeritta
Parnell, Procurement Analyst, at (202)
501–4082. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat (VPR), Room
4041, GS Building, Washington, DC,
20405, (202) 501–4755. Please cite
Amendment 2009–06, GSAR case 2008–
G518 (Change 34).
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
VerDate Nov<24>2008
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule deletes information and
clauses that are deemed unnecessary
and therefore, has no impact.
PART—547 [Removed and Reserved]
1. Remove and reserve part 547.
2. The authority citation for 48 CFR
part 552 continues to read as follows:
■
■
Authority: 40 U.S.C. 121(c).
PART 552—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
552.247–70
■
552.247–71
■
[Removed]
3. Remove section 552.247–70.
[Removed]
4. Remove section 552.247–71.
[FR Doc. E9–12362 Filed 5–28–09; 8:45 am]
BILLING CODE 6820–61–S
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1819 and 1852
RIN 2700–AD41
´ ´
NASA Mentor-Protege Program
AGENCY: National Aeronautics and
Space Administration.
ACTION: Final rule.
SUMMARY: This final rule amends the
NASA FAR Supplement (NFS) to
update the procedures for NASA’s
´ ´
Mentor-Protege program. The changes
will streamline the program; align the
mentoring to technical skills; expand
the program to Veteran-owned,
HUBZone, and NASA Small Business
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25671
Innovation Research (SBIR) Phase II
small businesses; and include award fee
incentives.
DATES: Effective date: May 29, 2009.
Applicability date: NASA’s revised
´ ´
procedures for the Mentor-Protege
program will be effective for new
applications that are submitted on or
after May 29, 2009.
FOR FURTHER INFORMATION CONTACT:
Sandra Morris, Office of Procurement,
Contract Management Division, (202)
358–0532; e-mail:
Sandra.Morris@nasa.gov.
SUPPLEMENTARY INFORMATION:
A. Background
On September 19, 2008, the National
Aeronautics and Space Administration
(NASA) published in the Federal
Register (73 FR 54340–54345), a
proposed rule, with request for
comments, to amend its regulations
´ ´
governing the NASA Mentor-Protege
Program. This program is authorized
under Title 42, U.S.C., 2473(c)(1).
Specifically, the proposed rule defined
the new program’s eligibility
requirements, and agreement
submission and approval process. It also
introduced mentor award fee incentives
and explained the calculated
subcontracting credit pursuant to FAR
52.219–9, Small Business
Subcontracting Plan.
Discussion of Comments on the
Proposed Rule
The comment period for the proposed
rule closed on November 18, 2008.
NASA received substantive comments
from eight commenters. One of the
commenters opposed NASA’s approach
to implementation of the proposed rule,
and the remaining seven supported it.
The commenter who opposed NASA’s
approach as set forth in the proposed
rule felt that there are already adequate
numbers of specialized programs for
various small businesses, and stated that
they adversely impact the opportunities
for regular small business entities. Of
the seven commenters who generally
supported the proposed rule, about half
sought to be included in the mentoring
program or requested referrals, and the
other half requested that specific
language be added to the rule.
Based on NASA’s evaluation of the
comments and the purpose of the rule,
NASA modified the proposed rule in
response to issues raised in the
comments. As discussed below, this
final rule provides definitions and
´ ´
clarifications of NASA’s Mentor Protege
program. The following is an analysis of
the substantive comments and NASA’s
corresponding responses.
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Requirements To Qualify as a Protege
Three of the commenters expressed
the view that the proposed eligibility
requirements in section 1819.7202(b)
´ ´
Eligibility of Proteges, should be
expanded to include non-profit agencies
for the blind or a qualified nonprofit
agency for the severely disabled. The
suggestion was made to add the
following under paragraph (b)(1) ‘‘or a
qualified non-profit agency for the blind
or a qualified nonprofit agency for other
severely disabled as defined in 41 CFR
51–4 under the Ability One Program.’’
Response: NASA has modified section
1819.7202 ‘‘Eligibility’’ by adding under
´ ´
paragraph (b)(1) ‘‘Eligibility of Protege,
nonprofit agencies employing people
who are blind or severely disabled’’.
Award Fee
One commenter asked for additional
clarification regarding award fees.
According to this commenter, the new
rule appears to eliminate the existing
award fee provisions and introduces a
new award fee incentive for companies
´ ´
which mentor SBIR II protege firms. The
commenter states that 1819.7215(b)(4)
provides that ‘‘[i]n contracts with award
fee incentives, potential for payment of
an award fee for voluntary participation
and successful performance in the
´ ´
Mentor-Protege Program, in accordance
with NFS 1819.7209.’’ The commenter
further notes that the new 1819.7209
addresses credit agreements and
reimbursement of certain costs
associated with providing
developmental assistance, and asks
whether award fees will be limited to
arrangements with SBIR II companies,
or if preexisting award fees will still be
available. Could the agency mean that
when a prime contract contains an
award fee incentive, participation as a
mentor will be favorably factored into
the award fee determination?
Response: The correct citation for the
referenced language is 1852.219–77
rather than 1819.7215(b)(4). The award
fee evaluation criteria as stated in NFS
1816.405–274(g)(3) remains unchanged.
NFS 1816.405–274(g)(3) states that the
contractor’s achievements in
subcontracting high technology efforts
as well as the contractor’s performance
´ ´
under the Mentor-Protege Program may
be evaluated.
In addition to the award fee
evaluation criteria stated in NFS
1816.405–274(g)(3), the new Mentor´ ´
Protege program in 1819.7208 has been
´ ´
added and applies when the protege is
a NASA SBIR Phase II contractor.
´ ´
DOD Mentor-Protege Reciprocity
Another commenter asks whether
´ ´
reciprocity to the DOD Mentor-Protege
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program would be eliminated under the
proposed rule.
Response: This rule removes the DOD
reciprocity previously referenced in
1819.7204 ‘‘Transportability of features
from the Department of Defense (DOD)
´ ´
Mentor-Protege Program to NASA
contractors’’.
The information collection has been
approved by the Office of Management
and Budget under 44 U.S.C. 3501, et
seq. via control number 2007–0078.
Self-Certification
William P. McNally,
Assistant Administrator for Procurement.
One commenter requested
´ ´
confirmation that protege companies
will no longer be allowed to self-certify.
´ ´
Response: Protege companies are still
allowed to self-certify.
´ ´
Protege Selection Process
A commenter asked NASA to confirm
the change that mentors would be
´ ´
required to select protege companies
that are SDBs, WOSB, HUBZone SBs,
VO/SDVO SBs, HBCUs, MIs or SBIR II
companies. The preexisting rule stated
that it would ‘‘encourage’’ as opposed to
‘‘require’’ this selection.
´ ´
Response: Eligible protege companies
must be one of the types of companies
listed in section 1819.7202. In response
to comments received, NASA has added
nonprofit agencies employing people
who are blind or severely disabled to
´ ´
the list of eligible proteges.
´ ´
SBIR Phase II Protege
One commenter states that because
the rule requires that companies under
the award fee pilot have already been
selected for SBIR Phase II contracts with
NASA, it does not explain how a prime
contractor mentor subcontracts with a
´ ´
SBIR II protege, which is a prime
contractor in its own right.
Response: The SBIR Phase II
contractor can hold the SBIR
Phase II contract and be eligible for
developmental assistance in the form of
noncompetitive award of subcontracts
under NASA contracts in accordance
with 1819.7205(c)(2).
B. Regulatory Flexibility Act
NASA certifies that this proposed rule
will not 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 participation in the
´ ´
mentor protege program is voluntary
and does not impose an economic
impact beyond that addressed in the
FAC 2005–14 publication of the FAR
final rule.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub.
L. 104–13) is applicable because the
NFS changes impose information
collection requirements in the form of
applications and report submissions.
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List of Subjects in 48 CFR Parts 1819
and 1852
Government procurement.
Accordingly, 48 CFR parts 1819 and
1852 are amended as follows:
■ 1. The authority citation for 48 CFR
parts 1819 and 1852 continues to read
as follows:
■
Authority: 42 U.S.C. 2473(c)(1).
PART 1819—SMALL BUSINESS
PROGRAMS
2. Subpart 1819–72 is revised to read
as follows:
■
´ ´
Subpart 1819.72—NASA Mentor-Protege
Program
1819.7201 Scope of subpart.
1819.7202 Eligibility.
1819.7203 Mentor approval process.
´ ´
1819.7204 Protege selection.
´ ´
1819.7205 Mentor-protege agreements.
1819.7206 Agreement contents.
1819.7207 Agreement submission and
approval process.
1819.7208 Award Fee Pilot Program.
1819.7209 Credit agreements.
1819.7210 Agreement terminations.
1819.7211 Loss of eligibility.
1819.7212 Reporting requirements.
1819.7213 Performance reviews.
1819.7214 Measurement of program success
1819.7215 Solicitation provision and
contract clauses.
Subpart 1819.72—NASA Mentor´ ´
Protege Program
1819.7201
Scope of subpart.
(a) This subpart implements the
´ ´
NASA Mentor-Protege Program
(hereafter referred to as the Program)
established under the authority of Title
42, U.S.C., 2473(c)(1). The purpose of
the Program is to:
(1) Provide incentives to NASA
contractors, performing under at least
one active approved subcontracting plan
´ ´
negotiated with NASA to assist proteges
in enhancing their capabilities to satisfy
NASA and other contract and
subcontract requirements;
(2) Increase the overall participation
´ ´
of proteges as subcontractors and
suppliers under NASA contracts, other
Federal agency contracts, and
commercial contracts; and
(3) Foster the establishment of longterm business relationships between
´ ´
proteges and mentors.
(b) Under the Program, eligible
entities approved as mentors will enter
´ ´
into mentor-protege agreements with
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´ ´
eligible proteges to provide appropriate
developmental assistance to enhance
´ ´
the capabilities of the proteges to
perform as subcontractors and
suppliers. NASA may provide the
mentor award fee incentives.
Additionally, this subpart explains the
calculated subcontracting credit for a
´ ´
mentor-protege program pursuant to
FAR 52.219–9, Small Business
Subcontracting Plan.
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1819.7202
Eligibility.
(a) Eligibility of Mentors: To be
eligible to participate as a mentor, an
entity must be—
(1) A large prime contractor
performing under contracts with at least
one approved subcontracting plan
negotiated with NASA, pursuant to FAR
Subpart 19.7, The Small Business
Subcontracting Program. A contractor
may apply to become a mentor even if
they currently are not performing under
a NASA contract with an approved
subcontracting plan, if they are
currently performing for another Federal
Agency under a contract with an
approved subcontracting plan. A NASA
´ ´
mentor-protege agreement will not be
approved until such time the mentor
company is performing under a NASA
contract with an approved
subcontracting plan; and
(2) A contractor eligible for receipt of
Government contracts. (i) An entity may
not be approved for participation in the
Program as a mentor if, at the time of
requesting participation in the program,
it is currently debarred or suspended
from contracting with the Federal
Government pursuant to FAR Subpart
9.4, Debarment, Suspension, and
Ineligibility.
´ ´
(b) Eligibility of Proteges: To be
´ ´
eligible to participate as a protege, an
entity must—
(1) Be classified as a Small
Disadvantaged Business (SDB), a
women-owned small business, a
HUBZone small business, a veteranowned or service-disabled veteranowned small business, an historically
black college and university, minority
institution of higher education, as
defined in FAR Part 2, Definitions of
Parts and Terms, an active NASA SBIR
Phase II company, or a non-profit
agency employing people who are blind
or severely disabled as defined in 41
CFR Chapter 51.
(2) Be eligible for the award of Federal
contracts; and
(3) Be a small business according to
the Small Business Administration
(SBA) size standard for the North
American Industry Classification
System (NAICS) code that represents the
contemplated supplies or services to be
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´ ´
provided by the protege to the mentor
´ ´
if the protege is representing itself as a
women-owned small business,
HUBZone small business, or a veteranowned or service-disabled veteranowned small business.
´ ´
(4) Except for SDBs, a protege firm
may self-certify to a mentor firm that it
meets the requirements set forth in
paragraph (a) of this section. Mentors
may rely in good faith on written
´ ´
representations by potential proteges
that they meet the specified eligibility
requirements. SDB status eligibility and
documentation requirements are
determined according to FAR 19.304.
1819.7203
Mentor approval process.
(a) An entity seeking to participate as
a mentor must apply to the NASA
Headquarters Office of Small Business
Programs (OSBP), to establish its initial
eligibility and approval as a mentor,
´ ´
prior to submission of a mentor-protege
agreement.
(b) The application must provide the
following information:
(1) A statement that the entity is
currently performing under at least one
active approved subcontracting plan
negotiated with NASA pursuant to FAR
19.702, The Small Business
Subcontracting Program, and that the
entity is currently eligible for the award
of Government contracts.
(2) A summary of the entity’s
historical and recent activities and
accomplishments under its small and
disadvantaged business utilization
program.
(3) The total dollar amount of NASA
contracts and subcontracts that the
entity received during the two
preceding fiscal years. (Show prime
contracts and subcontracts separately
per year.)
(4) The total dollar amount of all other
Federal agency contracts and
subcontracts that the entity received
during the two preceding fiscal years.
(Show prime contracts and subcontracts
separately per year.)
(5) The total dollar amount of
subcontracts that the entity awarded
under NASA contracts during the two
preceding fiscal years.
(6) The total dollar amount of
subcontracts that the entity awarded
under all other Federal agency contracts
during the two preceding fiscal years.
(7) The total dollar amount and
percentage of subcontracts that the
entity awarded to all SDB, womenowned small businesses, HUBZone
small businesses, veteran-owned and
service-disabled veteran-owned small
businesses, Historically Black Colleges,
and Universities, minority institutions
of higher education and nonprofit
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25673
agencies employing people who are
blind and severely disabled under
NASA contracts and other Federal
agency contracts during the two
preceding fiscal years. If the entity is
presently required to submit a Summary
Subcontracting Report via the
Government Electronic Subcontracting
Reporting System (eSRS), the
application must include copies of the
final reports for the two preceding fiscal
years.
(8) Information on the entity’s ability
to provide developmental assistance to
´ ´
its eligible proteges.
(9) Any additional information as
requested by NASA OSBP.
(c) In accordance with the Small
Business Act, developmental assistance
as described in 1819.7205(c) and
´ ´
provided by a mentor to its protege
´ ´
pursuant to a mentor-protege agreement
may not be a basis for determining
affiliation or control (either direct or
indirect) between the parties.
(d) Entities that apply for
participation and are not approved will
be provided the reasons and an
opportunity to submit additional
information for reconsideration.
(e) Entities approved for participation
as a mentor in the NASA program must
resubmit a mentor application every six
(6) years for review and approval by
NASA OSBP.
(f) A template of the mentor
application is available at: https://
www.osbp.nasa.gov.
1819.7204
´ ´
Protege selection.
(a) Mentors will be solely responsible
´ ´
for selecting proteges. Mentors are
required to identify and select concerns
that are defined as an SDB, womenowned small business, HUBZone small
business, veteran-owned or servicedisabled veteran-owned small business,
Historically Black Colleges and
Universities, minority institutions of
higher education, an active NASA SBIR
Phase II company or a nonprofit agency
employing the blind or severely
disabled.
´ ´
(b) The selection of proteges by a
mentor may not be protested, except as
in paragraph (c) of this section.
(c) In the event of a protest regarding
the size or eligibility of an entity
´ ´
selected to be a protege, the mentor
must refer the protest to the SBA to
resolve in accordance with 13 CFR part
121 (with respect to size) or 13 CFR part
124 (with respect to disadvantaged
status).
´ ´
(d) A protege may have only one
´ ´
active NASA mentor-protege agreement,
and may not participate in the NASA
Program more than two times as a
´ ´
protege.
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´ ´
(e) Proteges will be required to submit
´ ´
a protege application concurrently with
the agreement submission. This
application will include the following
information:
(1) A summary of the entity’s
historical and recent activities,
including annual revenue and number
of employees.
(2) The total dollar amount of NASA
contracts and subcontracts that the
entity received during the two
preceding fiscal years. (Show prime
contracts and subcontracts separately
per year.)
(3) The total dollar amount of all other
Federal agency contracts and
subcontracts that the company received
during the two preceding fiscal years.
(Show prime contracts and subcontracts
separately per year.)
(4) The total dollar amount of
subcontracts that the company awarded
under NASA contracts during the two
preceding fiscal years.
(5) The total dollar amount of
subcontracts that the company awarded
under all other Federal agency contracts
during the two preceding fiscal years.
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1819.7205
´ ´
Mentor-protege agreements.
(a) The agreements shall be structured
after the mentor completes an
assessment of the developmental needs
´ ´
of the protege and a mutual agreement
is reached regarding the developmental
assistance to be permitted to address
´ ´
those needs and enhance the protege’s
ability to perform successfully under
contracts and/or subcontracts.
(b) A mentor shall not require a
´ ´
´ ´
protege to enter into a mentor-protege
agreement as a condition for award of a
contract by the mentor, including a
subcontract under a NASA contract
awarded to the mentor.
´ ´
(c) The mentor-protege agreement
may provide for the mentor to furnish
any or all of the following types of
developmental assistance:
(1) Assistance by the mentor’s
personnel in—
(i) General business management,
including organizational management,
financial management, personnel
management, marketing, business
development, and overall business
planning;
(ii) Engineering, environmental and
technical matters; and
(iii) Any other assistance designed to
´ ´
develop the capabilities of the protege
under the developmental program.
(2) Award of subcontracts under
NASA contracts or other contracts on a
noncompetitive basis.
(3) Advance payments under such
subcontracts. The mentor must
administer advance payments when first
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approved by NASA in accordance with
FAR Subpart 32.4, Advance Payments
for Non-Commercial Items.
(4) Loans.
´ ´
(5) Investment(s) in the protege in
exchange for an ownership interest in
´ ´
the protege, not to exceed 10 percent of
the total ownership interest.
Investments may include, but are not
limited to, cash, stock, and
contributions in kind.
(6) Assistance that the mentor obtains
´ ´
for the protege from one or more of the
following:
(i) Small Business Development
Centers established pursuant to Section
21 of the Small Business Act (15 U.S.C.
648).
(ii) Entities providing procurement
technical assistance pursuant to 10
U.S.C. Chapter 142 (Procurement
Technical Assistance Centers).
(iii) Historically Black Colleges and
Universities.
(iv) Minority institutions of higher
education.
(d) Developmental assistance
provided under an approved mentor´ ´
protege agreement is distinct from, and
must not duplicate, any effort that is the
normal and expected product of the
award and administration of the
mentor’s subcontracts. Costs associated
with the latter must be accumulated and
charged in accordance with the
contractor’s approved accounting
practices; they are not considered
developmental assistance costs eligible
for credit under the Program.
´ ´
(e) A template of the mentor-protege
agreement is available at https://
www.osbp.nasa.gov.
(f) A developmental program
specifying the type of assistance the
´ ´
mentor will provide to the protege and
how that assistance will—
´ ´
(1) Increase the protege’s ability to
participate in NASA, Federal, and/or
commercial contracts and subcontracts;
and
(2) Increase small business
subcontracting opportunities in industry
´ ´
categories where eligible proteges or
other small business firms are not
dominant in the company’s vendor base;
´ ´
(g) Factors to assess the protege’s
developmental progress under the
Program, including specific milestones
for providing each element of the
identified assistance;
(h) An estimate of the dollar value
and type of subcontracts that the mentor
´ ´
will award to the protege, and the
period of time over which the
subcontracts will be awarded;
(i) A statement from the mentor and
´ ´
protege indicating a commitment to
comply with the requirements for
reporting in accordance with 1819.7212
and for review of the agreement during
the duration of the agreement, and
´ ´
additionally for the protege, two years
thereafter;
(j) Procedures to terminate the
agreement in accordance with
1819.7210;
(k) A provision that the term for the
agreement will not exceed 3 years for a
credit agreement;
(l) Additional terms and conditions as
may be agreed upon by both parties; and
(m) Signatures and dates for both
´ ´
parties to the mentor-protege agreement.
1819.7206
1819.7207 Agreement submission and
approval process.
Agreement contents.
´ ´
Each mentor-protege agreement will
contain the following elements:
(a) The name, address, e-mail address,
and telephone number of the mentor
´ ´
and protege points of contact;
(b) The NAICS code(s) that represent
the contemplated supplies or services to
´ ´
be provided by the protege to the
mentor and a statement that, at the time
the agreement is submitted for approval,
´ ´
the protege, if an SDB, a women-owned
small business, a HUBZone small
business, or a veteran-owned, a servicedisabled veteran-owned small business
concern or a NASA SBIR Phase II
Company, does not exceed the size
standard for the appropriate NAICS
code;
(c) The DUNS number of the mentor
´ ´
and protege;
(d) A statement that the mentor is
eligible to participate in accordance
with 1819.7202(a);
´ ´
(e) A statement that the protege is
eligible to participate in accordance
with 1819.7202(b);
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(a) To participate in the Program,
entities approved as mentors in
accordance with 1819.7203, will submit
to a Small Business Specialist at a
NASA Center—
´ ´
(1) A signed mentor-protege
agreement pursuant to 1819.7206;
(2) The estimated cost of the technical
assistance to be provided, broken out
per year and per task, in a separate cost
volume; and
(3) NASA OSBP may require
additional information as requested
upon agreement submission.
´ ´
(b) The mentor-protege agreement
must be approved by the Assistant
Administrator, NASA OSBP, prior to the
mentor incurring eligible costs for
developmental assistance provided to
´ ´
the protege.
(c) The cognizant NASA center will
issue a contract modification, if justified
prior to the mentor incurring costs for
´ ´
developmental assistance to the protege.
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1819.7208
Award Fee Pilot Program.
(a) Mentors will be eligible to earn a
separate award fee associated with the
provision of developmental assistance
´ ´
to NASA SBIR Phase II Proteges only.
The award fee will be assessed at the
´ ´
end of the Mentor-Protege agreement
period.
(b) The overall developmental
assistance performance of NASA
contractors, in promoting the use of
small businesses as subcontractors, will
be a required evaluation factor in award
fee plans.
(c) Evaluation criteria to determine
the award fee would include:
(1) Active participation in the
Program;
(2) The amount and quality of
developmental assistance provided;
(3) Subcontracts awarded to small
businesses and others;
´ ´
(4) Success of the proteges in
increasing their business as a result of
receiving developmental assistance; and
(5) Accomplishment of any other
´ ´
activity as related to the mentor-protege
relationship.
(d) The Award Fee Pilot Program is an
addition to the credit agreement.
Participants that are eligible for award
fee will also receive credit as described
in 1819.7209.
tjames on PRODPC75 with RULES
1819.7209
Credit agreements.
(a) The credit permits the mentor to
include the cost it expends on a mentor´ ´
protege agreement as part of any
subcontracting plan pursuant to the
clause at FAR 52.219–9, Small Business
Subcontracting Plan. The following
provisions apply to all credit mentor´ ´
protege agreements:
(1) Developmental assistance costs
incurred by a mentor for providing
´ ´
assistance to a protege pursuant to an
´ ´
approved credit mentor-protege
agreement may be credited as if the
costs were incurred in a subcontract
´ ´
awarded to that protege. Credit is given
for the sole purpose of determining the
performance of the mentor in attaining
an applicable subcontracting goal
established under any contract
containing a subcontracting plan
pursuant to the clause at FAR 52.219–
9, Small Business Subcontracting Plan.
(2) Other costs that have been
reimbursed through inclusion in
indirect expense pools may also be
credited as subcontract awards for
determining the performance of the
mentor in attaining an applicable
subcontracting goal established under
any contract containing a subcontracting
plan.
(3) The amount of credit a mentor
may receive for developmental
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assistance costs must be reported on a
one-to-one basis for all dollars spent.
1819.7210
Agreement terminations.
(a) Agreements may be terminated for
cause or on a voluntary basis by the
´ ´
mentor or the protege. The procedures
for agreement termination are outlined
´ ´
in the mentor-protege agreement
template available at https://
www.osbp.nasa.gov.
(b) NASA OSBP maintains the right to
terminate an agreement if milestones
provided under the original agreement
submission, pursuant to 1819.7206(g),
are not satisfactorily achieved, or for
other reasons as determined necessary
by the NASA OSBP.
1819.7211
Loss of eligibility.
(a) If the mentor is suspended or
debarred while performing under an
´ ´
approved mentor-protege agreement, the
mentor—
(1) May not be reimbursed or take
credit for any costs of providing
´ ´
developmental assistance to its protege,
incurred more than 30 days after the
imposition of such suspension or
debarment; and
(2) Must promptly give notice of its
´ ´
suspension or debarment to its protege
and NASA OSBP.
´ ´
(b) If the protege is suspended or
debarred while performing under an
´ ´
approved mentor-protege agreement or
´ ´
the SBA determines that a protege is
ineligible according to program
eligibility requirements, then—
(1) The mentor shall not be able to
receive credit for any of the costs of
´ ´
providing assistance to the protege after
the date of the determination regarding
´ ´
the protege’s loss of eligibility; and
(2) The mentor shall not be eligible to
receive an award fee for the assistance
´ ´
provided to the protege after the date of
the determination regarding the
´ ´
protege’s suspension or debarment, if
participating in the Award Fee Pilot
Program.
´ ´
(c) If the protege is a Historically
Black College or University, or other
minority institution of higher education
that loses either their accredited or
minority status, then:
(1) The mentor shall not be able to
receive credit for any the costs of
´ ´
providing assistance to the protege after
the date of the determination regarding
´ ´
the protege’s status.
(2) The mentor shall not be eligible to
receive an award fee for the assistance
´ ´
provided to the protege after the date of
the determination regarding the
´ ´
protege’s loss of accreditation or
minority status.
PO 00000
Frm 00061
Fmt 4700
Sfmt 4700
1819.7212
25675
Reporting requirements.
(a) Mentors must report on the
progress made under active mentor´ ´
protege agreements semiannually
throughout the term of the agreement.
(b) Reports are due 30 days after the
end of each six-month period of
performance commencing with the start
of the agreement.
(c) Each semiannual report must
include the following data on
´ ´
performance under the mentor-protege
agreement:
(1) Expenditures by the mentor.
(2) The number and dollar value of
´ ´
subcontracts awarded to the protege.
(3) Description of developmental
assistance provided, including
milestones achieved.
(4) Impact of the agreement in terms
of capabilities enhanced, certifications
received, and/or technology transferred.
´ ´
(d) Semiannually, the protege must
provide an independently developed
progress report using the semiannual
report template, on the progress made
during the prior six months by the
´ ´
protege in employment, revenues, and
participation in NASA contracts during
each year of the Program participation
´ ´
term. The Protege must also provide an
additional post-agreement report for
each of the two years following the
expiration of the Program participation
term.
´ ´
(e) The protege semiannual report
required by paragraph (d) of this section
may be provided with the mentor
semiannual report required by
paragraph (a) of this section, or
submitted separately.
(f) Reports for all agreements must be
submitted to the NASA OSBP Mentor´ ´
Protege Program Manager, the mentor’s
cognizant administrative contracting
officer, and their cognizant center small
business specialist.
(g) Templates for the semiannual
report and the Post-Agreement report
and guidance for their submission are
available at: https://www.osbp.nasa.gov.
1819.7213
Performance reviews.
(a) NASA OSBP will conduct annual
performance reviews of the progress and
accomplishments realized under
´ ´
approved mentor-protege agreements.
These reviews will include verification
of—
(1) All costs incurred by the mentor
under the agreement to determine if
they were reasonable in the provision of
´ ´
developmental assistance to the protege
´ ´
in accordance with the mentor-protege
agreement and applicable regulations
and procedures; and
´ ´
(2) The mentor’s and protege’s
´ ´
reported progress made by the protege
in employment, revenues, and
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Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations
participation in NASA contracts during
the program participation term.
1819.7214
success.
Measurement of program
(a) NASA will measure the overall
success of the Program by the extent to
which the Program results in—
(1) An increase in the number and
dollar value of contracts and
´ ´
subcontract awards to proteges (under
NASA contracts, contracts awarded by
other Federal agencies, and commercial
contracts) from the date of their entry
into the program until two years after
the conclusion of the agreement;
(2) An increase in the number and
dollar value of subcontracts awarded to
´ ´
´ ´
a protege (or former protege) by its
mentor (or former mentor); and
´ ´
(3) An increase in the protege’s
number of employees from the date of
entry into the program until two years
after the completion of the agreement.
1819.7215 Solicitation provision and
contract clauses.
(a) The contracting officer shall insert
the clause at 1852.219–77, NASA
´ ´
Mentor-Protege Program, in:
(1) Any contract that includes the
clause at FAR 52.219–9, Small Business
Subcontracting Plan.
(b) The contracting officer shall insert
the clause at 1852.219–79, Mentor
Requirements and Evaluation, in
contracts where the prime contractor is
a participant in the NASA Mentor´ ´
Protege Program.
PART 1852—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Sections 1852.219–77 and
1852.219–79 are revised to read as
follows:
■
1852.219–77
Program.
´ ´
NASA Mentor-Protege
(1) Mentors, which are large
businesses and prime contractors with
at least one active and approved NASA
subcontracting plan;
´ ´
(2) Proteges, which are subcontractors
´ ´
to the prime contractor. Proteges must
qualify as certified small disadvantaged
business concerns, women-owned small
business concerns, veteran-owned or
service-disabled veteran-owned small
business concerns, HUBZone small
business concerns, Historically Black
Colleges and Universities, minority
institutions of higher education,
meeting the qualifications defined in
FAR Part 2, Definitions of Parts and
Term, active NASA SBIR Phase II
companies or nonprofit agencies
employing people who are blind or
severely disabled as defined in 41 CFR
Chapter 51.
´ ´
(3) Mentor-protege agreements
endorsed by the cognizant NASA
centers and approved by the NASA
Office of Small Business Programs
(OSBP);
(4) In contracts with award fee
incentives, potential for payment of an
award fee for voluntary participation
and successful performance in the
´ ´
Mentor-Protege Program, in accordance
with NFS 1819.7208.
(c) Mentor participation in the
Program, described in NFS 1819.72,
means providing technical, managerial
´ ´
and financial assistance to aid proteges
in developing requisite high-tech
expertise and business systems to
compete for and successfully perform
NASA contracts and subcontracts.
(d) Contractors interested in
participating in the program are
encouraged to contact the NASA OSBP,
Washington, DC 20546, (202) 358–2088,
for further information.
(End of clause)
1852.219–79
Evaluation.
Mentor Requirements and
As prescribed in 1819.7215, insert the
following clause:
As prescribed in 1819.7215, insert the
following clause:
´ ´
NASA Mentor-Protege Program (Month/
Year)
Mentor Requirements and Evaluation
(Month/Year)
(a) The purpose of the NASA Mentor´ ´
Protege Program is for a NASA prime
contractor to provide developmental
assistance to certain subcontractors
´ ´
qualifying as proteges.
´ ´
Eligible proteges include certified
small disadvantaged business concerns,
women-owned small business concerns,
tjames on PRODPC75 with RULES
(a) Prime contractors are encouraged
to participate in the NASA Mentor´ ´
Protege Program for the purpose of
providing developmental assistance to
´ ´
eligible protege entities to enhance their
capabilities and increase their
participation in NASA contracts.
(b) The Program consists of:
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15:25 May 28, 2009
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PO 00000
Frm 00062
Fmt 4700
Sfmt 4700
veteran-owned or service-disabled
veteran-owned small business concerns,
HUBZone small business concerns,
Historically Black Colleges and
Universities, minority institutions of
higher education, as defined in FAR
Part 2, Definitions of Parts and Terms,
active NASA SBIR Phase II companies
and nonprofit agencies employing the
blind or severely handicapped as
defined in 41 CFR Chapter 51.
(b) NASA will evaluate the
contractor’s performance on the
following factors. If this contract
includes an award fee incentive, this
assessment will be accomplished as part
of the fee evaluation process.
(1) Specific actions taken by the
contractor, during the evaluation period,
´ ´
to increase the participation of proteges
as subcontractors and suppliers;
(2) Specific actions taken by the
contractor during this evaluation period
to develop the technical and corporate
´ ´
administrative expertise of a protege as
defined in the agreement;
(3) To what extent the mentor and
´ ´
protege have met the developmental
milestones outlined in the agreement;
and
(4) To what extent the entities’
´ ´
participation in the Mentor-Protege
´ ´
Program resulted in the protege
receiving competitive contract(s) and
subcontract(s) from private firms and
agencies other than the mentor.
(c) Semiannual reports shall be
´ ´
submitted by the mentor and the protege
to the cognizant NASA center and
NASA Headquarters Office of Small
Business Programs (OSBP), following
the semiannual report template found
on the Web site at https://
www.osbp.nasa.gov.
(d) The mentor will notify the
cognizant NASA center and NASA
OSBP in writing, at least 30 days in
advance of the mentor’s intent to
voluntarily withdraw from the program
´ ´
or upon receipt of a protege’s notice to
withdraw from the Program;
(e) At the end of each year in the
´ ´
Mentor-Protege Program, the mentor
´ ´
and protege, as appropriate, will
´ ´
formally brief the NASA Mentor-Protege
program manager, the technical program
manager, and the contracting officer
during a formal program review
regarding Program accomplishments, as
it pertains to the approved agreement.
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tjames on PRODPC75 with RULES
(f) NASA may terminate mentor´ ´
protege agreements for good cause,
´ ´
thereby excluding mentors or proteges
from participating in the NASA Mentor´ ´
Protege program. These actions shall be
approved by the NASA OSBP. NASA
shall terminate an agreement by
VerDate Nov<24>2008
15:25 May 28, 2009
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delivering to the contractor a letter
specifying the reason for termination
and the effective date. Termination of an
agreement does not constitute a
termination of the subcontract between
´ ´
the mentor and the protege. A plan for
accomplishing the subcontract effort
PO 00000
Frm 00063
Fmt 4700
Sfmt 4700
25677
should the agreement be terminated
shall be submitted with the agreement.
(End of clause)
[FR Doc. E9–12487 Filed 5–28–09; 8:45 am]
BILLING CODE 7510–01–P
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]]>Agencies
[Federal Register Volume 74, Number 102 (Friday, May 29, 2009)]
[Rules and Regulations]
[Pages 25671-25677]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12487]
-----------------------------------------------------------------------
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1819 and 1852
RIN 2700-AD41
NASA Mentor-Prot[eacute]g[eacute] Program
AGENCY: National Aeronautics and Space Administration.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the NASA FAR Supplement (NFS) to update
the procedures for NASA's Mentor-Prot[eacute]g[eacute] program. The
changes will streamline the program; align the mentoring to technical
skills; expand the program to Veteran-owned, HUBZone, and NASA Small
Business Innovation Research (SBIR) Phase II small businesses; and
include award fee incentives.
DATES: Effective date: May 29, 2009.
Applicability date: NASA's revised procedures for the Mentor-
Prot[eacute]g[eacute] program will be effective for new applications
that are submitted on or after May 29, 2009.
FOR FURTHER INFORMATION CONTACT: Sandra Morris, Office of Procurement,
Contract Management Division, (202) 358-0532; e-mail:
Sandra.Morris@nasa.gov.
SUPPLEMENTARY INFORMATION:
A. Background
On September 19, 2008, the National Aeronautics and Space
Administration (NASA) published in the Federal Register (73 FR 54340-
54345), a proposed rule, with request for comments, to amend its
regulations governing the NASA Mentor-Prot[eacute]g[eacute] Program.
This program is authorized under Title 42, U.S.C., 2473(c)(1).
Specifically, the proposed rule defined the new program's eligibility
requirements, and agreement submission and approval process. It also
introduced mentor award fee incentives and explained the calculated
subcontracting credit pursuant to FAR 52.219-9, Small Business
Subcontracting Plan.
Discussion of Comments on the Proposed Rule
The comment period for the proposed rule closed on November 18,
2008. NASA received substantive comments from eight commenters. One of
the commenters opposed NASA's approach to implementation of the
proposed rule, and the remaining seven supported it.
The commenter who opposed NASA's approach as set forth in the
proposed rule felt that there are already adequate numbers of
specialized programs for various small businesses, and stated that they
adversely impact the opportunities for regular small business entities.
Of the seven commenters who generally supported the proposed rule,
about half sought to be included in the mentoring program or requested
referrals, and the other half requested that specific language be added
to the rule.
Based on NASA's evaluation of the comments and the purpose of the
rule, NASA modified the proposed rule in response to issues raised in
the comments. As discussed below, this final rule provides definitions
and clarifications of NASA's Mentor Prot[eacute]g[eacute] program. The
following is an analysis of the substantive comments and NASA's
corresponding responses.
[[Page 25672]]
Requirements To Qualify as a Prot[eacute]g[eacute]
Three of the commenters expressed the view that the proposed
eligibility requirements in section 1819.7202(b) Eligibility of
Prot[eacute]g[eacute]s, should be expanded to include non-profit
agencies for the blind or a qualified nonprofit agency for the severely
disabled. The suggestion was made to add the following under paragraph
(b)(1) ``or a qualified non-profit agency for the blind or a qualified
nonprofit agency for other severely disabled as defined in 41 CFR 51-4
under the Ability One Program.''
Response: NASA has modified section 1819.7202 ``Eligibility'' by
adding under paragraph (b)(1) ``Eligibility of Prot[eacute]g[eacute],
nonprofit agencies employing people who are blind or severely
disabled''.
Award Fee
One commenter asked for additional clarification regarding award
fees. According to this commenter, the new rule appears to eliminate
the existing award fee provisions and introduces a new award fee
incentive for companies which mentor SBIR II prot[eacute]g[eacute]
firms. The commenter states that 1819.7215(b)(4) provides that ``[i]n
contracts with award fee incentives, potential for payment of an award
fee for voluntary participation and successful performance in the
Mentor-Prot[eacute]g[eacute] Program, in accordance with NFS
1819.7209.'' The commenter further notes that the new 1819.7209
addresses credit agreements and reimbursement of certain costs
associated with providing developmental assistance, and asks whether
award fees will be limited to arrangements with SBIR II companies, or
if preexisting award fees will still be available. Could the agency
mean that when a prime contract contains an award fee incentive,
participation as a mentor will be favorably factored into the award fee
determination?
Response: The correct citation for the referenced language is
1852.219-77 rather than 1819.7215(b)(4). The award fee evaluation
criteria as stated in NFS 1816.405-274(g)(3) remains unchanged. NFS
1816.405-274(g)(3) states that the contractor's achievements in
subcontracting high technology efforts as well as the contractor's
performance under the Mentor-Prot[eacute]g[eacute] Program may be
evaluated.
In addition to the award fee evaluation criteria stated in NFS
1816.405-274(g)(3), the new Mentor-Prot[eacute]g[eacute] program in
1819.7208 has been added and applies when the prot[eacute]g[eacute] is
a NASA SBIR Phase II contractor.
DOD Mentor-Prot[eacute]g[eacute] Reciprocity
Another commenter asks whether reciprocity to the DOD Mentor-
Prot[eacute]g[eacute] program would be eliminated under the proposed
rule.
Response: This rule removes the DOD reciprocity previously
referenced in 1819.7204 ``Transportability of features from the
Department of Defense (DOD) Mentor-Prot[eacute]g[eacute] Program to
NASA contractors''.
Self-Certification
One commenter requested confirmation that prot[eacute]g[eacute]
companies will no longer be allowed to self-certify.
Response: Prot[eacute]g[eacute] companies are still allowed to
self-certify.
Prot[eacute]g[eacute] Selection Process
A commenter asked NASA to confirm the change that mentors would be
required to select prot[eacute]g[eacute] companies that are SDBs, WOSB,
HUBZone SBs, VO/SDVO SBs, HBCUs, MIs or SBIR II companies. The
preexisting rule stated that it would ``encourage'' as opposed to
``require'' this selection.
Response: Eligible prot[eacute]g[eacute] companies must be one of
the types of companies listed in section 1819.7202. In response to
comments received, NASA has added nonprofit agencies employing people
who are blind or severely disabled to the list of eligible
prot[eacute]g[eacute]s.
SBIR Phase II Prot[eacute]g[eacute]
One commenter states that because the rule requires that companies
under the award fee pilot have already been selected for SBIR Phase II
contracts with NASA, it does not explain how a prime contractor mentor
subcontracts with a SBIR II prot[eacute]g[eacute], which is a prime
contractor in its own right.
Response: The SBIR Phase II contractor can hold the SBIR
Phase II contract and be eligible for developmental assistance in
the form of noncompetitive award of subcontracts under NASA contracts
in accordance with 1819.7205(c)(2).
B. Regulatory Flexibility Act
NASA certifies that this proposed rule will not 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 participation in the mentor prot[eacute]g[eacute] program is
voluntary and does not impose an economic impact beyond that addressed
in the FAC 2005-14 publication of the FAR final rule.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 104-13) is applicable because
the NFS changes impose information collection requirements in the form
of applications and report submissions. The information collection has
been approved by the Office of Management and Budget under 44 U.S.C.
3501, et seq. via control number 2007-0078.
List of Subjects in 48 CFR Parts 1819 and 1852
Government procurement.
William P. McNally,
Assistant Administrator for Procurement.
0
Accordingly, 48 CFR parts 1819 and 1852 are amended as follows:
0
1. The authority citation for 48 CFR parts 1819 and 1852 continues to
read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1819--SMALL BUSINESS PROGRAMS
0
2. Subpart 1819-72 is revised to read as follows:
Subpart 1819.72--NASA Mentor-Prot[eacute]g[eacute] Program
1819.7201 Scope of subpart.
1819.7202 Eligibility.
1819.7203 Mentor approval process.
1819.7204 Prot[eacute]g[eacute] selection.
1819.7205 Mentor-prot[eacute]g[eacute] agreements.
1819.7206 Agreement contents.
1819.7207 Agreement submission and approval process.
1819.7208 Award Fee Pilot Program.
1819.7209 Credit agreements.
1819.7210 Agreement terminations.
1819.7211 Loss of eligibility.
1819.7212 Reporting requirements.
1819.7213 Performance reviews.
1819.7214 Measurement of program success
1819.7215 Solicitation provision and contract clauses.
Subpart 1819.72--NASA Mentor-Prot[eacute]g[eacute] Program
1819.7201 Scope of subpart.
(a) This subpart implements the NASA Mentor-Prot[eacute]g[eacute]
Program (hereafter referred to as the Program) established under the
authority of Title 42, U.S.C., 2473(c)(1). The purpose of the Program
is to:
(1) Provide incentives to NASA contractors, performing under at
least one active approved subcontracting plan negotiated with NASA to
assist prot[eacute]g[eacute]s in enhancing their capabilities to
satisfy NASA and other contract and subcontract requirements;
(2) Increase the overall participation of prot[eacute]g[eacute]s as
subcontractors and suppliers under NASA contracts, other Federal agency
contracts, and commercial contracts; and
(3) Foster the establishment of long-term business relationships
between prot[eacute]g[eacute]s and mentors.
(b) Under the Program, eligible entities approved as mentors will
enter into mentor-prot[eacute]g[eacute] agreements with
[[Page 25673]]
eligible prot[eacute]g[eacute]s to provide appropriate developmental
assistance to enhance the capabilities of the prot[eacute]g[eacute]s to
perform as subcontractors and suppliers. NASA may provide the mentor
award fee incentives. Additionally, this subpart explains the
calculated subcontracting credit for a mentor-prot[eacute]g[eacute]
program pursuant to FAR 52.219-9, Small Business Subcontracting Plan.
1819.7202 Eligibility.
(a) Eligibility of Mentors: To be eligible to participate as a
mentor, an entity must be--
(1) A large prime contractor performing under contracts with at
least one approved subcontracting plan negotiated with NASA, pursuant
to FAR Subpart 19.7, The Small Business Subcontracting Program. A
contractor may apply to become a mentor even if they currently are not
performing under a NASA contract with an approved subcontracting plan,
if they are currently performing for another Federal Agency under a
contract with an approved subcontracting plan. A NASA mentor-
prot[eacute]g[eacute] agreement will not be approved until such time
the mentor company is performing under a NASA contract with an approved
subcontracting plan; and
(2) A contractor eligible for receipt of Government contracts. (i)
An entity may not be approved for participation in the Program as a
mentor if, at the time of requesting participation in the program, it
is currently debarred or suspended from contracting with the Federal
Government pursuant to FAR Subpart 9.4, Debarment, Suspension, and
Ineligibility.
(b) Eligibility of Prot[eacute]g[eacute]s: To be eligible to
participate as a prot[eacute]g[eacute], an entity must--
(1) Be classified as a Small Disadvantaged Business (SDB), a women-
owned small business, a HUBZone small business, a veteran-owned or
service-disabled veteran-owned small business, an historically black
college and university, minority institution of higher education, as
defined in FAR Part 2, Definitions of Parts and Terms, an active NASA
SBIR Phase II company, or a non-profit agency employing people who are
blind or severely disabled as defined in 41 CFR Chapter 51.
(2) Be eligible for the award of Federal contracts; and
(3) Be a small business according to the Small Business
Administration (SBA) size standard for the North American Industry
Classification System (NAICS) code that represents the contemplated
supplies or services to be provided by the prot[eacute]g[eacute] to the
mentor if the prot[eacute]g[eacute] is representing itself as a women-
owned small business, HUBZone small business, or a veteran-owned or
service-disabled veteran-owned small business.
(4) Except for SDBs, a prot[eacute]g[eacute] firm may self-certify
to a mentor firm that it meets the requirements set forth in paragraph
(a) of this section. Mentors may rely in good faith on written
representations by potential prot[eacute]g[eacute]s that they meet the
specified eligibility requirements. SDB status eligibility and
documentation requirements are determined according to FAR 19.304.
1819.7203 Mentor approval process.
(a) An entity seeking to participate as a mentor must apply to the
NASA Headquarters Office of Small Business Programs (OSBP), to
establish its initial eligibility and approval as a mentor, prior to
submission of a mentor-prot[eacute]g[eacute] agreement.
(b) The application must provide the following information:
(1) A statement that the entity is currently performing under at
least one active approved subcontracting plan negotiated with NASA
pursuant to FAR 19.702, The Small Business Subcontracting Program, and
that the entity is currently eligible for the award of Government
contracts.
(2) A summary of the entity's historical and recent activities and
accomplishments under its small and disadvantaged business utilization
program.
(3) The total dollar amount of NASA contracts and subcontracts that
the entity received during the two preceding fiscal years. (Show prime
contracts and subcontracts separately per year.)
(4) The total dollar amount of all other Federal agency contracts
and subcontracts that the entity received during the two preceding
fiscal years. (Show prime contracts and subcontracts separately per
year.)
(5) The total dollar amount of subcontracts that the entity awarded
under NASA contracts during the two preceding fiscal years.
(6) The total dollar amount of subcontracts that the entity awarded
under all other Federal agency contracts during the two preceding
fiscal years.
(7) The total dollar amount and percentage of subcontracts that the
entity awarded to all SDB, women-owned small businesses, HUBZone small
businesses, veteran-owned and service-disabled veteran-owned small
businesses, Historically Black Colleges, and Universities, minority
institutions of higher education and nonprofit agencies employing
people who are blind and severely disabled under NASA contracts and
other Federal agency contracts during the two preceding fiscal years.
If the entity is presently required to submit a Summary Subcontracting
Report via the Government Electronic Subcontracting Reporting System
(eSRS), the application must include copies of the final reports for
the two preceding fiscal years.
(8) Information on the entity's ability to provide developmental
assistance to its eligible prot[eacute]g[eacute]s.
(9) Any additional information as requested by NASA OSBP.
(c) In accordance with the Small Business Act, developmental
assistance as described in 1819.7205(c) and provided by a mentor to its
prot[eacute]g[eacute] pursuant to a mentor-prot[eacute]g[eacute]
agreement may not be a basis for determining affiliation or control
(either direct or indirect) between the parties.
(d) Entities that apply for participation and are not approved will
be provided the reasons and an opportunity to submit additional
information for reconsideration.
(e) Entities approved for participation as a mentor in the NASA
program must resubmit a mentor application every six (6) years for
review and approval by NASA OSBP.
(f) A template of the mentor application is available at: https://www.osbp.nasa.gov.
1819.7204 Prot[eacute]g[eacute] selection.
(a) Mentors will be solely responsible for selecting
prot[eacute]g[eacute]s. Mentors are required to identify and select
concerns that are defined as an SDB, women-owned small business,
HUBZone small business, veteran-owned or service-disabled veteran-owned
small business, Historically Black Colleges and Universities, minority
institutions of higher education, an active NASA SBIR Phase II company
or a nonprofit agency employing the blind or severely disabled.
(b) The selection of prot[eacute]g[eacute]s by a mentor may not be
protested, except as in paragraph (c) of this section.
(c) In the event of a protest regarding the size or eligibility of
an entity selected to be a prot[eacute]g[eacute], the mentor must refer
the protest to the SBA to resolve in accordance with 13 CFR part 121
(with respect to size) or 13 CFR part 124 (with respect to
disadvantaged status).
(d) A prot[eacute]g[eacute] may have only one active NASA mentor-
prot[eacute]g[eacute] agreement, and may not participate in the NASA
Program more than two times as a prot[eacute]g[eacute].
[[Page 25674]]
(e) Prot[eacute]g[eacute]s will be required to submit a
prot[eacute]g[eacute] application concurrently with the agreement
submission. This application will include the following information:
(1) A summary of the entity's historical and recent activities,
including annual revenue and number of employees.
(2) The total dollar amount of NASA contracts and subcontracts that
the entity received during the two preceding fiscal years. (Show prime
contracts and subcontracts separately per year.)
(3) The total dollar amount of all other Federal agency contracts
and subcontracts that the company received during the two preceding
fiscal years. (Show prime contracts and subcontracts separately per
year.)
(4) The total dollar amount of subcontracts that the company
awarded under NASA contracts during the two preceding fiscal years.
(5) The total dollar amount of subcontracts that the company
awarded under all other Federal agency contracts during the two
preceding fiscal years.
1819.7205 Mentor-prot[eacute]g[eacute] agreements.
(a) The agreements shall be structured after the mentor completes
an assessment of the developmental needs of the prot[eacute]g[eacute]
and a mutual agreement is reached regarding the developmental
assistance to be permitted to address those needs and enhance the
prot[eacute]g[eacute]'s ability to perform successfully under contracts
and/or subcontracts.
(b) A mentor shall not require a prot[eacute]g[eacute] to enter
into a mentor-prot[eacute]g[eacute] agreement as a condition for award
of a contract by the mentor, including a subcontract under a NASA
contract awarded to the mentor.
(c) The mentor-prot[eacute]g[eacute] agreement may provide for the
mentor to furnish any or all of the following types of developmental
assistance:
(1) Assistance by the mentor's personnel in--
(i) General business management, including organizational
management, financial management, personnel management, marketing,
business development, and overall business planning;
(ii) Engineering, environmental and technical matters; and
(iii) Any other assistance designed to develop the capabilities of
the prot[eacute]g[eacute] under the developmental program.
(2) Award of subcontracts under NASA contracts or other contracts
on a noncompetitive basis.
(3) Advance payments under such subcontracts. The mentor must
administer advance payments when first approved by NASA in accordance
with FAR Subpart 32.4, Advance Payments for Non-Commercial Items.
(4) Loans.
(5) Investment(s) in the prot[eacute]g[eacute] in exchange for an
ownership interest in the prot[eacute]g[eacute], not to exceed 10
percent of the total ownership interest. Investments may include, but
are not limited to, cash, stock, and contributions in kind.
(6) Assistance that the mentor obtains for the
prot[eacute]g[eacute] from one or more of the following:
(i) Small Business Development Centers established pursuant to
Section 21 of the Small Business Act (15 U.S.C. 648).
(ii) Entities providing procurement technical assistance pursuant
to 10 U.S.C. Chapter 142 (Procurement Technical Assistance Centers).
(iii) Historically Black Colleges and Universities.
(iv) Minority institutions of higher education.
(d) Developmental assistance provided under an approved mentor-
prot[eacute]g[eacute] agreement is distinct from, and must not
duplicate, any effort that is the normal and expected product of the
award and administration of the mentor's subcontracts. Costs associated
with the latter must be accumulated and charged in accordance with the
contractor's approved accounting practices; they are not considered
developmental assistance costs eligible for credit under the Program.
(e) A template of the mentor-prot[eacute]g[eacute] agreement is
available at https://www.osbp.nasa.gov.
1819.7206 Agreement contents.
Each mentor-prot[eacute]g[eacute] agreement will contain the
following elements:
(a) The name, address, e-mail address, and telephone number of the
mentor and prot[eacute]g[eacute] points of contact;
(b) The NAICS code(s) that represent the contemplated supplies or
services to be provided by the prot[eacute]g[eacute] to the mentor and
a statement that, at the time the agreement is submitted for approval,
the prot[eacute]g[eacute], if an SDB, a women-owned small business, a
HUBZone small business, or a veteran-owned, a service-disabled veteran-
owned small business concern or a NASA SBIR Phase II Company, does not
exceed the size standard for the appropriate NAICS code;
(c) The DUNS number of the mentor and prot[eacute]g[eacute];
(d) A statement that the mentor is eligible to participate in
accordance with 1819.7202(a);
(e) A statement that the prot[eacute]g[eacute] is eligible to
participate in accordance with 1819.7202(b);
(f) A developmental program specifying the type of assistance the
mentor will provide to the prot[eacute]g[eacute] and how that
assistance will--
(1) Increase the prot[eacute]g[eacute]'s ability to participate in
NASA, Federal, and/or commercial contracts and subcontracts; and
(2) Increase small business subcontracting opportunities in
industry categories where eligible prot[eacute]g[eacute]s or other
small business firms are not dominant in the company's vendor base;
(g) Factors to assess the prot[eacute]g[eacute]'s developmental
progress under the Program, including specific milestones for providing
each element of the identified assistance;
(h) An estimate of the dollar value and type of subcontracts that
the mentor will award to the prot[eacute]g[eacute], and the period of
time over which the subcontracts will be awarded;
(i) A statement from the mentor and prot[eacute]g[eacute]
indicating a commitment to comply with the requirements for reporting
in accordance with 1819.7212 and for review of the agreement during the
duration of the agreement, and additionally for the
prot[eacute]g[eacute], two years thereafter;
(j) Procedures to terminate the agreement in accordance with
1819.7210;
(k) A provision that the term for the agreement will not exceed 3
years for a credit agreement;
(l) Additional terms and conditions as may be agreed upon by both
parties; and
(m) Signatures and dates for both parties to the mentor-
prot[eacute]g[eacute] agreement.
1819.7207 Agreement submission and approval process.
(a) To participate in the Program, entities approved as mentors in
accordance with 1819.7203, will submit to a Small Business Specialist
at a NASA Center--
(1) A signed mentor-prot[eacute]g[eacute] agreement pursuant to
1819.7206;
(2) The estimated cost of the technical assistance to be provided,
broken out per year and per task, in a separate cost volume; and
(3) NASA OSBP may require additional information as requested upon
agreement submission.
(b) The mentor-prot[eacute]g[eacute] agreement must be approved by
the Assistant Administrator, NASA OSBP, prior to the mentor incurring
eligible costs for developmental assistance provided to the
prot[eacute]g[eacute].
(c) The cognizant NASA center will issue a contract modification,
if justified prior to the mentor incurring costs for developmental
assistance to the prot[eacute]g[eacute].
[[Page 25675]]
1819.7208 Award Fee Pilot Program.
(a) Mentors will be eligible to earn a separate award fee
associated with the provision of developmental assistance to NASA SBIR
Phase II Prot[eacute]g[eacute]s only. The award fee will be assessed at
the end of the Mentor-Prot[eacute]g[eacute] agreement period.
(b) The overall developmental assistance performance of NASA
contractors, in promoting the use of small businesses as
subcontractors, will be a required evaluation factor in award fee
plans.
(c) Evaluation criteria to determine the award fee would include:
(1) Active participation in the Program;
(2) The amount and quality of developmental assistance provided;
(3) Subcontracts awarded to small businesses and others;
(4) Success of the prot[eacute]g[eacute]s in increasing their
business as a result of receiving developmental assistance; and
(5) Accomplishment of any other activity as related to the mentor-
prot[eacute]g[eacute] relationship.
(d) The Award Fee Pilot Program is an addition to the credit
agreement. Participants that are eligible for award fee will also
receive credit as described in 1819.7209.
1819.7209 Credit agreements.
(a) The credit permits the mentor to include the cost it expends on
a mentor-prot[eacute]g[eacute] agreement as part of any subcontracting
plan pursuant to the clause at FAR 52.219-9, Small Business
Subcontracting Plan. The following provisions apply to all credit
mentor-prot[eacute]g[eacute] agreements:
(1) Developmental assistance costs incurred by a mentor for
providing assistance to a prot[eacute]g[eacute] pursuant to an approved
credit mentor-prot[eacute]g[eacute] agreement may be credited as if the
costs were incurred in a subcontract awarded to that
prot[eacute]g[eacute]. Credit is given for the sole purpose of
determining the performance of the mentor in attaining an applicable
subcontracting goal established under any contract containing a
subcontracting plan pursuant to the clause at FAR 52.219-9, Small
Business Subcontracting Plan.
(2) Other costs that have been reimbursed through inclusion in
indirect expense pools may also be credited as subcontract awards for
determining the performance of the mentor in attaining an applicable
subcontracting goal established under any contract containing a
subcontracting plan.
(3) The amount of credit a mentor may receive for developmental
assistance costs must be reported on a one-to-one basis for all dollars
spent.
1819.7210 Agreement terminations.
(a) Agreements may be terminated for cause or on a voluntary basis
by the mentor or the prot[eacute]g[eacute]. The procedures for
agreement termination are outlined in the mentor-prot[eacute]g[eacute]
agreement template available at https://www.osbp.nasa.gov.
(b) NASA OSBP maintains the right to terminate an agreement if
milestones provided under the original agreement submission, pursuant
to 1819.7206(g), are not satisfactorily achieved, or for other reasons
as determined necessary by the NASA OSBP.
1819.7211 Loss of eligibility.
(a) If the mentor is suspended or debarred while performing under
an approved mentor-prot[eacute]g[eacute] agreement, the mentor--
(1) May not be reimbursed or take credit for any costs of providing
developmental assistance to its prot[eacute]g[eacute], incurred more
than 30 days after the imposition of such suspension or debarment; and
(2) Must promptly give notice of its suspension or debarment to its
prot[eacute]g[eacute] and NASA OSBP.
(b) If the prot[eacute]g[eacute] is suspended or debarred while
performing under an approved mentor-prot[eacute]g[eacute] agreement or
the SBA determines that a prot[eacute]g[eacute] is ineligible according
to program eligibility requirements, then--
(1) The mentor shall not be able to receive credit for any of the
costs of providing assistance to the prot[eacute]g[eacute] after the
date of the determination regarding the prot[eacute]g[eacute]'s loss of
eligibility; and
(2) The mentor shall not be eligible to receive an award fee for
the assistance provided to the prot[eacute]g[eacute] after the date of
the determination regarding the prot[eacute]g[eacute]'s suspension or
debarment, if participating in the Award Fee Pilot Program.
(c) If the prot[eacute]g[eacute] is a Historically Black College or
University, or other minority institution of higher education that
loses either their accredited or minority status, then:
(1) The mentor shall not be able to receive credit for any the
costs of providing assistance to the prot[eacute]g[eacute] after the
date of the determination regarding the prot[eacute]g[eacute]'s status.
(2) The mentor shall not be eligible to receive an award fee for
the assistance provided to the prot[eacute]g[eacute] after the date of
the determination regarding the prot[eacute]g[eacute]'s loss of
accreditation or minority status.
1819.7212 Reporting requirements.
(a) Mentors must report on the progress made under active mentor-
prot[eacute]g[eacute] agreements semiannually throughout the term of
the agreement.
(b) Reports are due 30 days after the end of each six-month period
of performance commencing with the start of the agreement.
(c) Each semiannual report must include the following data on
performance under the mentor-prot[eacute]g[eacute] agreement:
(1) Expenditures by the mentor.
(2) The number and dollar value of subcontracts awarded to the
prot[eacute]g[eacute].
(3) Description of developmental assistance provided, including
milestones achieved.
(4) Impact of the agreement in terms of capabilities enhanced,
certifications received, and/or technology transferred.
(d) Semiannually, the prot[eacute]g[eacute] must provide an
independently developed progress report using the semiannual report
template, on the progress made during the prior six months by the
prot[eacute]g[eacute] in employment, revenues, and participation in
NASA contracts during each year of the Program participation term. The
Prot[eacute]g[eacute] must also provide an additional post-agreement
report for each of the two years following the expiration of the
Program participation term.
(e) The prot[eacute]g[eacute] semiannual report required by
paragraph (d) of this section may be provided with the mentor
semiannual report required by paragraph (a) of this section, or
submitted separately.
(f) Reports for all agreements must be submitted to the NASA OSBP
Mentor-Prot[eacute]g[eacute] Program Manager, the mentor's cognizant
administrative contracting officer, and their cognizant center small
business specialist.
(g) Templates for the semiannual report and the Post-Agreement
report and guidance for their submission are available at: https://www.osbp.nasa.gov.
1819.7213 Performance reviews.
(a) NASA OSBP will conduct annual performance reviews of the
progress and accomplishments realized under approved mentor-
prot[eacute]g[eacute] agreements. These reviews will include
verification of--
(1) All costs incurred by the mentor under the agreement to
determine if they were reasonable in the provision of developmental
assistance to the prot[eacute]g[eacute] in accordance with the mentor-
prot[eacute]g[eacute] agreement and applicable regulations and
procedures; and
(2) The mentor's and prot[eacute]g[eacute]'s reported progress made
by the prot[eacute]g[eacute] in employment, revenues, and
[[Page 25676]]
participation in NASA contracts during the program participation term.
1819.7214 Measurement of program success.
(a) NASA will measure the overall success of the Program by the
extent to which the Program results in--
(1) An increase in the number and dollar value of contracts and
subcontract awards to prot[eacute]g[eacute]s (under NASA contracts,
contracts awarded by other Federal agencies, and commercial contracts)
from the date of their entry into the program until two years after the
conclusion of the agreement;
(2) An increase in the number and dollar value of subcontracts
awarded to a prot[eacute]g[eacute] (or former prot[eacute]g[eacute]) by
its mentor (or former mentor); and
(3) An increase in the prot[eacute]g[eacute]'s number of employees
from the date of entry into the program until two years after the
completion of the agreement.
1819.7215 Solicitation provision and contract clauses.
(a) The contracting officer shall insert the clause at 1852.219-77,
NASA Mentor-Prot[eacute]g[eacute] Program, in:
(1) Any contract that includes the clause at FAR 52.219-9, Small
Business Subcontracting Plan.
(b) The contracting officer shall insert the clause at 1852.219-79,
Mentor Requirements and Evaluation, in contracts where the prime
contractor is a participant in the NASA Mentor-Prot[eacute]g[eacute]
Program.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Sections 1852.219-77 and 1852.219-79 are revised to read as follows:
1852.219-77 NASA Mentor-Prot[eacute]g[eacute] Program.
As prescribed in 1819.7215, insert the following clause:
NASA Mentor-Prot[eacute]g[eacute] Program (Month/Year)
(a) Prime contractors are encouraged to participate in the NASA
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 NASA
contracts.
(b) The Program consists of:
(1) Mentors, which are large businesses and prime contractors with
at least one active and approved NASA subcontracting plan;
(2) Prot[eacute]g[eacute]s, which are subcontractors to the prime
contractor. Prot[eacute]g[eacute]s must qualify as certified small
disadvantaged business concerns, women-owned small business concerns,
veteran-owned or service-disabled veteran-owned small business
concerns, HUBZone small business concerns, Historically Black Colleges
and Universities, minority institutions of higher education, meeting
the qualifications defined in FAR Part 2, Definitions of Parts and
Term, active NASA SBIR Phase II companies or nonprofit agencies
employing people who are blind or severely disabled as defined in 41
CFR Chapter 51.
(3) Mentor-prot[eacute]g[eacute] agreements endorsed by the
cognizant NASA centers and approved by the NASA Office of Small
Business Programs (OSBP);
(4) In contracts with award fee incentives, potential for payment
of an award fee for voluntary participation and successful performance
in the Mentor-Prot[eacute]g[eacute] Program, in accordance with NFS
1819.7208.
(c) Mentor participation in the Program, described in NFS 1819.72,
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 NASA contracts
and subcontracts.
(d) Contractors interested in participating in the program are
encouraged to contact the NASA OSBP, Washington, DC 20546, (202) 358-
2088, for further information.
(End of clause)
1852.219-79 Mentor Requirements and Evaluation.
As prescribed in 1819.7215, insert the following clause:
Mentor Requirements and Evaluation (Month/Year)
(a) The purpose of the NASA Mentor-Prot[eacute]g[eacute] Program is
for a NASA prime contractor to provide developmental assistance to
certain subcontractors qualifying as prot[eacute]g[eacute]s.
Eligible prot[eacute]g[eacute]s include certified small
disadvantaged business concerns, women-owned small business concerns,
veteran-owned or service-disabled veteran-owned small business
concerns, HUBZone small business concerns, Historically Black Colleges
and Universities, minority institutions of higher education, as defined
in FAR Part 2, Definitions of Parts and Terms, active NASA SBIR Phase
II companies and nonprofit agencies employing the blind or severely
handicapped as defined in 41 CFR Chapter 51.
(b) NASA will evaluate the contractor's performance on the
following factors. If this contract includes an award fee incentive,
this assessment will be accomplished as part of the fee evaluation
process.
(1) Specific actions taken by the contractor, during the evaluation
period, to increase the participation of prot[eacute]g[eacute]s as
subcontractors and suppliers;
(2) Specific actions taken by the contractor during this evaluation
period to develop the technical and corporate administrative expertise
of a prot[eacute]g[eacute] as defined in the agreement;
(3) To what extent the mentor and prot[eacute]g[eacute] have met
the developmental milestones outlined in the agreement; and
(4) To what extent the entities' participation in the Mentor-
Prot[eacute]g[eacute] Program resulted in the prot[eacute]g[eacute]
receiving competitive contract(s) and subcontract(s) from private firms
and agencies other than the mentor.
(c) Semiannual reports shall be submitted by the mentor and the
prot[eacute]g[eacute] to the cognizant NASA center and NASA
Headquarters Office of Small Business Programs (OSBP), following the
semiannual report template found on the Web site at https://www.osbp.nasa.gov.
(d) The mentor will notify the cognizant NASA center and NASA OSBP
in writing, at least 30 days in advance of the mentor's intent to
voluntarily withdraw from the program or upon receipt of a
prot[eacute]g[eacute]'s notice to withdraw from the Program;
(e) At the end of each year in the Mentor-Prot[eacute]g[eacute]
Program, the mentor and prot[eacute]g[eacute], as appropriate, will
formally brief the NASA Mentor-Prot[eacute]g[eacute] program manager,
the technical program manager, and the contracting officer during a
formal program review regarding Program accomplishments, as it pertains
to the approved agreement.
[[Page 25677]]
(f) NASA may terminate mentor-prot[eacute]g[eacute] agreements for
good cause, thereby excluding mentors or prot[eacute]g[eacute]s from
participating in the NASA Mentor-Prot[eacute]g[eacute] program. These
actions shall be approved by the NASA OSBP. NASA shall terminate an
agreement by delivering to the contractor a letter specifying the
reason for termination and the effective date. Termination of an
agreement 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.
(End of clause)
[FR Doc. E9-12487 Filed 5-28-09; 8:45 am]
BILLING CODE 7510-01-P
