Defense Federal Acquisition Regulation Supplement: Amendment to Mentor-Protégé Program (DFARS Case 2016-D011), 12682-12685 [2018-05937]

Download as PDF 12682 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Rules and Regulations 252.213–7000 Notice to Prospective Suppliers on Use of Supplier Performance Risk System in Past Performance Evaluations. * * * * * reimbursement of fees assessed by the mentor firm. II. Discussion and Analysis One respondent submitted a public comment in response to the proposed rule. DoD reviewed the public comment in the development of the final rule. [FR Doc. 2018–05938 Filed 3–22–18; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE A. Summary of Significant Changes From the Proposed Rule Defense Acquisition Regulations System 48 CFR Part 219 and Appendix I to Chapter 2 There are no changes made to the final rule as a result of the public comment; however, one conforming change is made. [Docket DARS–2016–0033] B. Analysis of Public Comments RIN 0750–AJ05 Defense Federal Acquisition Regulation Supplement: Amendment ´ ´ to Mentor-Protege Program (DFARS Case 2016–D011) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that provides amendments to the DoD Pilot Mentor´ ´ Protege Program. DATES: Effective March 23, 2018. FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone 571– 372–6100. SUPPLEMENTARY INFORMATION: SUMMARY: amozie on DSK30RV082PROD with RULES I. Background DoD published a proposed rule in the Federal Register at 81 FR 65610 on September 23, 2016, to propose revisions to the DFARS to implement section 861 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (Pub. L. 114–92). Section 861 provides several amendments to the ´ ´ DoD Pilot Mentor-Protege Program (‘‘the Program’’), including new reporting requirements for mentor firms to provide information to DoD’s Office of Small Business Programs to support decisions regarding continuation of ´ ´ particular mentor-protege agreements. In addition, section 861 adds new eligibility criteria; adds limitations on a ´ ´ protege firm’s participation in the Program; adds new elements to mentor´ ´ protege agreements; extends the Program for three years to September 30, 2021; and amends requirements for business development assistance provided by a mentor firm and for VerDate Sep<11>2014 16:24 Mar 22, 2018 Jkt 244001 Comment: The respondent requested that DoD revise the Program’s eligibility ´ ´ criteria for protege firms to include Historically Black Colleges and Universities (HBCUs) and Minority Institutions (MIs). Allowing HBCUs and MIs to participate in the Program as ´ ´ proteges would provide the opportunity for teaming arrangements with DoD prime contractors, as well as good research opportunities. Response: The eligibility criteria are based on the statutory authority for the Program (10 U.S.C. 2302 note), which provides that a ‘‘disadvantaged small business concern’’ meeting certain ´ ´ criteria may participate as a protege in the Program. The statutory definition of ‘‘disadvantaged small business concern’’ does not include HBCUs or MIs. Therefore, the statute does not support the inclusion of HBCUs and MIs as ´ ´ proteges. However, HBCUs and MIs have a role in the Program as providers ´ ´ of assistance to protege firms. C. Other Changes From the Proposed Rule A conforming change is made to the definition of ‘‘nontraditional defense contractor’’ in Appendix I, Paragraph I– 101.2, to reflect the definition for this term that was established in the final rule ‘‘Procurement of Commercial Items (DFARS Case 2016–D006)’’ (see 83 FR 4431, dated January 31, 2018). Several Appendix I references are revised to reflect that, as of February 1, 2018, the Office of Small Business Programs is now organizationally located within DoD under Acquisition and Sustainment (A&S) in lieu of Acquisition Technology and Logistics (AT&L). PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This final rule does not add any new provisions or clauses or impact any existing provisions or clauses. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. V. Executive Order 13771 This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. VI. Regulatory Flexibility Act A final regulatory flexibility analysis (FRFA) has been prepared consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The FRFA is summarized as follows: This final rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 861 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, which provides amendments to the DoD Pilot Mentor´ ´ Protege Program (‘‘the Program’’). Specifically, section 861 provides new reporting requirements for mentor firms that will provide information to DoD’s Office of Small Business Programs to support decisions regarding continuation of particular mentor´ ´ protege agreements. In addition, section 861 adds new eligibility criteria; adds ´ ´ limitations on a protege firm’s participation in the Program; adds new ´ ´ elements to mentor-protege agreements; extends the Program for three additional years; and amends requirements for business development assistance provided by a mentor firm and for reimbursement of fees assessed by the mentor firm. The objectives of this rule are to implement statutory amendments to the Program and to provide DoD’s E:\FR\FM\23MRR1.SGM 23MRR1 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Rules and Regulations Office of Small Business Programs with information to support decisions regarding continuation of particular ´ ´ mentor-protege agreements. There were no issues raised by the public in response to the initial regulatory flexibility analysis provided in the proposed rule. The rule will apply to small entities that participate in the Program. There are currently 85 small entities ´ ´ participating in the Program as protege firms and six small entities participating as mentors. The rule imposes new reporting requirements on mentor firms, including mentors who are small businesses, regarding assistance they ´ ´ have provided to their protege firms and the success this assistance has had. ´ ´ Although protege firms are not required to submit these reports, the mentor firms will need to obtain supporting ´ ´ information from the protege firms in order to ascertain the success of the assistance provided. DoD has not identified any alternatives that are consistent with the stated objectives of the applicable statute. VII. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The rule contains information collection requirements. OMB has cleared this information collection requirement under OMB Control Number 0704–0332, titled: Defense Federal Acquisition Regulation Supplement (DFARS) Appendix I. List of Subjects in 48 CFR Part 219 and Appendix I to Chapter 2 Government procurement. Jennifer L. Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 219 and appendix I to chapter 2 are amended as follows: ■ 1. The authority citation for 48 CFR part 219 and appendix I to chapter 2 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 219—SMALL BUSINESS PROGRAMS amozie on DSK30RV082PROD with RULES 219.7100 [Amended] 2. Amend section 219.7100 by— a. Removing ‘‘Section 831’’ and adding ‘‘section 831’’ in its place; and ■ b. Adding the phrase ‘‘, as amended through November 25, 2015’’ to the end of the first sentence. ■ 3. Amend section 219.7102 by— ■ ■ VerDate Sep<11>2014 16:24 Mar 22, 2018 Jkt 244001 a. Revising paragraph (a); b. Removing paragraph (b); and c. Redesignating paragraphs (c) and (d) as paragraphs (b) and (c), respectively. ■ d. In the newly redesignated paragraph (c)(2), removing ‘‘Subpart’’ and adding ‘‘subpart’’ in its place. The revision reads as follows: ■ ■ ■ 219.7102 General. * * * * * ´ ´ (a) Mentor firms and protege firms that meet the criteria in Appendix I, section I–102. * * * * * 219.7103–2 [Amended] 4. Amend section 219.7103–2, in paragraph (e)(3), by removing ‘‘219.7102(d)(1)(ii)’’ and adding ‘‘219.7102(c)(1)(ii)’’ in its place. ■ 219.7104 [Amended] 5. Amend section 219.7104 by— a. In paragraph (b)— i. Removing ‘‘Advance agreements are encouraged.’’; ■ ii. Removing ‘‘before October 1, 2018’’ and adding ‘‘not later than September 30, 2021’’ in its place; and ■ b. In paragraph (d), removing ‘‘before October 1, 2018’’ and adding ‘‘not later than September 30, 2021’’ in its place. ■ 6. Amend Appendix I to Chapter 2 as follows: ■ a. In section I–100, revise paragraph (a). ■ b. Remove section I–101.1. ■ c. Redesignate section I–101.2 as section I–101.1. ■ d. Add new section I–101.2. ■ e. Revise section I–101.4. ■ f. Remove section I–101.5. ■ g. Redesignate section I–101.6 as section I–101.5. ■ h. In the newly redesignated section I– 101.5, remove ‘‘Section’’ and add ‘‘section’’ in its place. ■ i. Remove section I–101.7. ■ j. Redesignate section I–101.8 as section I–101.6. ■ k. In the redesignated section I–101.6, remove ‘‘Section’’ and add ‘‘section’’ in its place. ■ l. In section I–102, revise paragraphs (a) through (d). ■ m. Amend section I–103 by— ■ i. In paragraph (a), removing ‘‘September 30, 2015’’ and adding ‘‘September 30, 2018’’ in its place; and ■ ii. In paragraph (b), removing ‘‘September 30, 2018’’ and adding ‘‘September 30, 2021’’ in its place; ■ n. Amend section I–104 by— ■ i. Revising paragraph (a); ■ ii. In paragraph (c), removing ‘‘as defined in I–101.5’’; ■ ■ ■ PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 12683 iii. In paragraph (d), removing ‘‘I– 107(f)’’ and adding ‘‘I–106(d)’’ in its place; and ■ iv. Revising paragraph (e). ■ o. Amend section I–105 by— ■ i. Revising paragraph (b)(1); ■ ii. In paragraphs (b)(2) through (b)(6), removing ‘‘company’s’’ and ‘‘company’’ and adding ‘‘entity’s’’ and ‘‘entity’’, respectively in each place they appear; ■ iii. Revising paragraph (b)(7); and ■ iv. Revising paragraph (c); ■ p. Amend section I–106 by— ■ i. In paragraph (d)(1)(i), removing ‘‘business development, ’’; ■ ii. In paragraph (d)(1)(iii), adding ‘‘described in I–107(g)’’ to the end of the sentence; ■ iii. In paragraph (d)(2), removing ‘‘Award of subcontracts’’ and adding ´ ´ ‘‘Award of subcontracts to the protege firm’’ in its place; ■ iv. Removing paragraph (d)(6); and ■ v. Redesignating paragraph (d)(7) as (d)(6); ■ vi. In the newly redesignated paragraph (d)(6)(i), removing ‘‘Section’’ and adding ‘‘section’’ in its place. ■ q. Amend section I–107 by— ■ i. In the introductory text, removing ‘‘will contain the following elements:’’ and adding ‘‘shall contain—’’ in its place; ■ ii. Revising paragraph (b); ■ iii. In paragraph (d), removing ‘‘I– 102’’ and adding ‘‘I–102(a)’’ in its place; and ■ iv. Revising paragraphs (e), (f), and (g). ■ r. Amend section I–109 by— ■ i. Redesignating paragraph (e) as paragraph (f); and ■ ii. Adding new paragraph (e). ■ s. Amend section I–110.1, in paragraph (a), by removing ‘‘DoD Comprehensive Subcontracting Plan Test Program’’ and adding ‘‘DoD Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans’’ in its place; and removing ‘‘entity employing the severely disabled’’ and adding ‘‘entity employing severely disabled individuals’’ in its place. ■ t. Amend section I–110.2, in paragraphs (a) introductory text, (b) introductory text, and (c) by removing ‘‘OUSD(AT&L)’’ and adding ‘‘OUSD(A&S)’’ in each place. ■ u. Amend section I–112.1 by— ■ i. In the section heading, removing ‘‘SF 294s’’ and adding ‘‘Standard Forms 294’’ in its place; and ■ ii. In paragraph (b), removing ‘‘SDB’’ and adding ‘‘applicable’’ in its place; and removing ‘‘I–101.3 or I–101.5’’ and adding ‘‘I–102(b)’’ in its place. ■ v. Revise section I–112.2. The revisions and additions read as follows: ■ E:\FR\FM\23MRR1.SGM 23MRR1 12684 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Rules and Regulations Appendix I to Chapter 2—Policy and Procedures for the DOD Pilot Mentor ´ ´ Protege Program I–100 Purpose. (a) This Appendix I to 48 CFR chapter 2 ´ ´ implements the Pilot Mentor-Protege Program (hereafter referred to as the ‘‘Program’’) established under section 831 of Public Law 101–510, the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note), as amended through November 25, 2015. The purpose of the Program is to provide incentives to major DoD contractors to furnish eligible small business concerns with assistance designed to— (1) Enhance the capabilities of eligible small business concerns to perform as subcontractors and suppliers under DoD contracts and other contracts and subcontracts; and (2) Increase the participation of such business concerns as subcontractors and suppliers under DoD contracts, other Federal Government contracts, and commercial contracts. * * * * * I–101.2 Nontraditional Defense Contractor An entity that is not currently performing and has not performed any contract or subcontract for DoD that is subject to full coverage under the cost accounting standards prescribed pursuant to 41 U.S.C. 1502 and the regulations implementing such section, for at least the 1-year period preceding the solicitation of sources by DoD for the procurement (10 U.S.C. 2302(9)). * * * * * I–101.4 Severely Disabled Individual An individual who is blind or severely disabled as defined in 41 U.S.C. 8501. amozie on DSK30RV082PROD with RULES * * * * * I–102 Participant Eligibility (a) To be eligible to participate as a mentor, an entity must— (1) Be eligible for the award of Federal contracts; (2) Demonstrate that it— (i) Is qualified to provide assistance that will contribute to the purpose of the Program; (ii) Is of good financial health and character; and (iii) Is not on a Federal list of debarred or suspended contractors; and (3) Be capable of imparting value to a ´ ´ protege firm because of experience gained as a DoD contractor or through knowledge of general business operations and Government contracting, as demonstrated by evidence that such entity— (i) Received DoD contracts and subcontracts equal to or greater than $100 million during the previous fiscal year; (ii) Is an other-than-small business, unless a waiver to the small business exception has been obtained from the Director, Small Business Programs (SBP), OUSD(A&S); (iii) Is a prime contractor to DoD with an active subcontracting plan; or (iv) Has graduated from the 8(a) Business Development Program and provides VerDate Sep<11>2014 16:24 Mar 22, 2018 Jkt 244001 documentation of its ability to serve as a mentor. (b) To be eligible to participate as a ´ ´ protege, an entity must be— (1) A small business concern; (2) Eligible for the award of Federal contracts; (3) Less than half the Small Business Administration (SBA) size standard for its primary North American Industry Classification System (NAICS) code; (4) Not owned or managed by individuals or entities that directly or indirectly have stock options or convertible securities in the mentor firm; and (5) At least one of the following: (i) A qualified HUBZone small business concern. (ii) A women-owned small business concern. (iii) A service-disabled veteran-owned small business concern. (iv) An entity owned and controlled by an Indian tribe. (v) An entity owned and controlled by a Native Hawaiian organization. (vi) An entity owned and controlled by socially and economically disadvantaged individuals. (vii) A qualified organization employing severely disabled individuals. (viii) A nontraditional defense contractor. (ix) An entity that currently provides goods or services in the private sector that are critical to enhancing the capabilities of the defense supplier base and fulfilling key DoD needs. (c) Mentor firms may rely in good faith on a written representation that the entity meets the requirements of paragraph (b) of this section, except that a mentor firm is required ´ ´ to confirm a protege’s status as a HUBZone small business concern (see FAR 19.703(d)). (d) If at any time the SBA (or DoD in the case of entities employing severely disabled ´ ´ individuals) determines that a protege is ineligible, assistance that the mentor firm ´ ´ furnishes to the protege after the date of the determination may not be considered assistance furnished under the Program. * * * * * ´ ´ I–104 Selection of Protege Firms (a) Mentor firms will be solely responsible ´ ´ for selecting protege firms that qualify under I–102(b). Mentor firms are encouraged to identify and select concerns that have not previously received significant prime contract awards from DoD or any other Federal agency. * * * * * ´ ´ (e) A protege firm may not be a party to ´ ´ more than one DoD mentor-protege agreement at a time, and may only participate in the Program during the 5-year period ´ ´ beginning on the date the protege firm enters ´ ´ into its first mentor-protege agreement. I–105 * Mentor Approval Process * * * * (b) * * * (1) A statement that the entity meets the requirements in I–102(a), specifying the criteria in I–102(a)(3) under which the entity is applying. * PO 00000 * * Frm 00028 * Fmt 4700 * Sfmt 4700 (7) The total dollar amount and percentage of subcontracts that the entity awarded to firms qualifying under I–102(b)(5)(ii) through (viii) during the 2 preceding fiscal years. (Show DoD subcontract awards separately.) If the entity was required to submit a Summary Subcontract Report (SSR) in the Electronic Subcontracting Reporting System, the request must include copies of the final reports for the 2 preceding fiscal years. * * * * * (c) A template of the mentor application is available at: http://www.acq.osd.mil/osbp/sb/ programs/mpp/resources.shtml. * * * * * ´ ´ I–107 Elements of a Mentor-Protege Agreement * * * * * (b) The NAICS code(s) that represent the contemplated supplies or services to be ´ ´ provided by the protege firm to the mentor firm and a statement that, at the time the agreement is submitted for approval, the ´ ´ protege firm does not exceed the size standard in I–102(b)(3); * * * * * (e) Assurances that— (1) The mentor firm does not share, ´ ´ directly or indirectly, with the protege firm ´ ´ ownership or management of the protege firm; (2) The mentor firm does not have an agreement, at the time the mentor firm enters ´ ´ into a mentor-protege agreement, to merge ´ ´ with the protege firm; (3) The owners and managers of the mentor firm are not the parent, child, spouse, sibling, aunt, uncle, niece, nephew, grandparent, grandchild, or first cousin of an owner or ´ ´ manager of the protege firm; (4) The mentor firm has not, during the 2year period before entering into a mentor´ ´ protege agreement, employed any officer, director, principal stock holder, managing ´ ´ member, or key employee of the protege firm; (5) The mentor firm has not engaged in a ´ ´ joint venture with the protege firm during the 2-year period before entering into a mentor´ ´ protege agreement, unless such joint venture was approved by SBA prior to making any offer on a contract; (6) The mentor firm is not, directly or indirectly, the primary party providing ´ ´ contracts to the protege firm, as measured by the dollar value of the contracts; and (7) The SBA has not made a determination of affiliation or control; (f) A preliminary assessment of the ´ ´ developmental needs of the protege firm; (g) A developmental program for the ´ ´ protege firm including— (1) The type of assistance the mentor will ´ ´ provide to the protege and how that assistance will— ´ ´ (i) Increase the protege’s ability to participate in DoD, Federal, and/or commercial contracts and subcontracts; and (ii) 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; ´ ´ (2) Factors to assess the protege firm’s developmental progress under the Program, E:\FR\FM\23MRR1.SGM 23MRR1 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Rules and Regulations including specific milestones for providing each element of the identified assistance; (3) A description of the quantitative and qualitative benefits to DoD from the agreement, if applicable; and (4) Goals for additional awards for which ´ ´ the protege firm can compete outside the Program; * * I–109 * * * * Reimburseable Agreements * * * * (e) DoD may not reimburse any fee to the mentor firm for services provided to the ´ ´ protege firm pursuant to I–106(d)(6) or for business development expenses incurred by the mentor firm under a contract awarded to the mentor firm while participating in a joint ´ ´ venture with the protege firm. amozie on DSK30RV082PROD with RULES * * * * * I–112.2 Program Specific Reporting Requirements (a) Mentors must report on the progress ´ ´ made under active mentor-protege agreements semiannually for the periods ending March 31st and September 30th throughout the Program participation term of the agreement. The September 30th report must address the entire fiscal year. (1) Reports are due 30 days after the close of each reporting period. (2) Each report must include the following data on performance under the mentor´ ´ protege agreement: (i) Dollars obligated (for reimbursable agreements). (ii) Expenditures. (iii) Dollars credited, if any, toward applicable subcontracting goals as a result of developmental assistance provided to the ´ ´ protege and a copy of the ISR or SF 294 and/ or SSR for each contract where developmental assistance was credited. (iv) Any new awards of subcontracts on a competitive or noncompetitive basis to the ´ ´ protege firm under DoD contracts or other contracts, including the value of such subcontracts. (v) All technical or management assistance provided by mentor firm personnel for the purposes described in I–106(d). (vi) Any extensions, increases in the scope of work, or additional payments not previously reported for prior awards of subcontracts on a competitive or ´ ´ noncompetitive basis to the protege firm under DoD contracts or other contracts, including the value of such subcontracts. (vii) The amount of any payment of progress payments or advance payments ´ ´ made to the protege firm for performance under any subcontract made under the Program. (viii) Any loans made by the mentor firm ´ ´ to the protege firm. (ix) All Federal contracts awarded to the ´ ´ mentor firm and the protege firm as a joint venture, designating whether the award was a restricted competition or a full and open competition. (x) Any assistance obtained by the mentor ´ ´ firm for the protege firm from the entities listed at I–106(d)(6). (xi) Whether there have been any changes ´ ´ to the terms of the mentor-protege agreement. VerDate Sep<11>2014 17:02 Mar 22, 2018 Jkt 244001 (xii) A narrative describing the following: (A) The success assistance provided under I–106(d) has had in addressing the ´ ´ developmental needs of the protege firm. (B) The impact on DoD contracts. (C) Any problems encountered. ´ ´ (D) Any milestones achieved in the protege firm’s developmental program. (E) Impact of the agreement in terms of capabilities enhanced, certifications received, and technology transferred. (3) In accordance with section 861, paragraph (b)(2), of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114–92), the reporting requirements specified in paragraphs (a)(2)(iv) through (a)(2)(xii)(C) of this section apply ´ ´ retroactively to mentor-protege agreements that were in effect on November 25, 2015. Mentors must submit reports as described in paragraph (a) of this section. (4) A recommended reporting format and guidance for its submission are available at: http://www.acq.osd.mil/osbp/sb/programs/ mpp/resources.shtml. ´ ´ (b) The protege must provide data, annually by October 31st, on the progress made during the prior fiscal year by the ´ ´ protege in employment, revenues, and participation in DoD contracts during— (1) Each fiscal year of the Program participation term; and (2) Each of the 2 fiscal years following the expiration of the Program participation term. ´ ´ (c) The protege report required by paragraph (b) of this section may be provided as part of the mentor report for the period ending September 30th required by paragraph (a) of this section. (d) Progress reports must be submitted— (1) For credit agreements, to the cognizant Component Director, SBP, that approved the agreement, and the mentor’s cognizant DCMA administrative contracting officer; and (2) For reimbursable agreements, to the cognizant Component Director, SBP, the contracting officer, the DCMA administrative contracting officer, and the program manager. * * * * * [FR Doc. 2018–05937 Filed 3–22–18; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration 49 CFR Part 395 Hours of Service; Electronic Logging Devices; Limited 90-Day Waiver for the Transportation of Agricultural Commodities Federal Motor Carrier Safety Administration (FMCSA), DOT. ACTION: Notification; grant of waiver. AGENCY: FMCSA grants a limited 90day waiver from the Federal hours-ofservice (HOS) regulations pertaining to electronic logging devices (ELDs) for the transportation of agricultural SUMMARY: PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 12685 commodities as defined in the Federal Motor Carrier Safety Regulations (FMCSRs). The Agency has determined that the waiver is in the public interest and will likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption, based on the terms and conditions imposed. The waiver provides the Agency additional time to complete its analysis of the public responses to its December 20, 2017, notice of proposed regulatory guidance to clarify the applicability of the ‘‘Agricultural commodity’’ exception to the hours-of-service regulations and issue final guidance which in turn, would have an impact on which drivers transporting agricultural commodities are required to use ELDs, and the public responses to its October 31, 2017, document announcing receipt of the NPPC’s application for an exemption from the ELD requirements and to issue a decision whether to grant NPPC’s request for longer-term relief from the ELD rule. The Agency has determined through its preliminary analysis of the public comments submitted to the public dockets that the issues raised by transporters of agricultural commodities are more complex than those raised by other segments of the industry seeking relief from the ELD requirements and that it is appropriate to take additional time to bring these matters to closure. DATES: This waiver is applicable beginning March 18, 2018, and expires on June 18, 2018. FOR FURTHER INFORMATION CONTACT: Thomas L. Yager, Chief, Driver and Carrier Operations Division, Office of Bus and Truck Standards and Operations, Federal Motor Carrier Safety Administration, 1200 New Jersey Ave. SE, Washington, DC 20590. Email: MCPSD@dot.gov. Phone: (614) 942–6477. SUPPLEMENTARY INFORMATION: Legal Basis The Transportation Equity Act for the 21st Century (TEA–21) (Pub. L. 105– 178, 112 Stat. 107, June 9, 1998) provides the Secretary of Transportation (the Secretary) the authority to grant waivers from any of the FMCSRs issued under Chapter 313 of Title 49 of the United States Code or 49 U.S.C. 31136, to a person(s) seeking regulatory relief. (49 U.S.C. 31136(e), 31315(a)). The Secretary must make a determination that the waiver is in the public interest, and that it is likely to achieve a level of safety that is equivalent to, or greater than, the level of safety that would be obtained in the absence of the waiver. Individual waivers may be granted only E:\FR\FM\23MRR1.SGM 23MRR1

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[Federal Register Volume 83, Number 57 (Friday, March 23, 2018)]
[Rules and Regulations]
[Pages 12682-12685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05937]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 219 and Appendix I to Chapter 2

[Docket DARS-2016-0033]
RIN 0750-AJ05


Defense Federal Acquisition Regulation Supplement: Amendment to 
Mentor-Prot[eacute]g[eacute] Program (DFARS Case 2016-D011)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement a section of the 
National Defense Authorization Act for Fiscal Year 2016 that provides 
amendments to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program.

DATES: Effective March 23, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone 
571-372-6100.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 81 FR 
65610 on September 23, 2016, to propose revisions to the DFARS to 
implement section 861 of the National Defense Authorization Act (NDAA) 
for Fiscal Year (FY) 2016 (Pub. L. 114-92). Section 861 provides 
several amendments to the DoD Pilot Mentor-Prot[eacute]g[eacute] 
Program (``the Program''), including new reporting requirements for 
mentor firms to provide information to DoD's Office of Small Business 
Programs to support decisions regarding continuation of particular 
mentor-prot[eacute]g[eacute] agreements. In addition, section 861 adds 
new eligibility criteria; adds limitations on a prot[eacute]g[eacute] 
firm's participation in the Program; adds new elements to mentor-
prot[eacute]g[eacute] agreements; extends the Program for three years 
to September 30, 2021; and amends requirements for business development 
assistance provided by a mentor firm and for reimbursement of fees 
assessed by the mentor firm.

II. Discussion and Analysis

    One respondent submitted a public comment in response to the 
proposed rule. DoD reviewed the public comment in the development of 
the final rule.

A. Summary of Significant Changes From the Proposed Rule

    There are no changes made to the final rule as a result of the 
public comment; however, one conforming change is made.

B. Analysis of Public Comments

    Comment: The respondent requested that DoD revise the Program's 
eligibility criteria for prot[eacute]g[eacute] firms to include 
Historically Black Colleges and Universities (HBCUs) and Minority 
Institutions (MIs). Allowing HBCUs and MIs to participate in the 
Program as prot[eacute]g[eacute]s would provide the opportunity for 
teaming arrangements with DoD prime contractors, as well as good 
research opportunities.
    Response: The eligibility criteria are based on the statutory 
authority for the Program (10 U.S.C. 2302 note), which provides that a 
``disadvantaged small business concern'' meeting certain criteria may 
participate as a prot[eacute]g[eacute] in the Program. The statutory 
definition of ``disadvantaged small business concern'' does not include 
HBCUs or MIs. Therefore, the statute does not support the inclusion of 
HBCUs and MIs as prot[eacute]g[eacute]s. However, HBCUs and MIs have a 
role in the Program as providers of assistance to prot[eacute]g[eacute] 
firms.

C. Other Changes From the Proposed Rule

    A conforming change is made to the definition of ``nontraditional 
defense contractor'' in Appendix I, Paragraph I-101.2, to reflect the 
definition for this term that was established in the final rule 
``Procurement of Commercial Items (DFARS Case 2016-D006)'' (see 83 FR 
4431, dated January 31, 2018). Several Appendix I references are 
revised to reflect that, as of February 1, 2018, the Office of Small 
Business Programs is now organizationally located within DoD under 
Acquisition and Sustainment (A&S) in lieu of Acquisition Technology and 
Logistics (AT&L).

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This final rule does not add any new provisions or clauses or 
impact any existing provisions or clauses.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

V. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This final rule amends the Defense Federal Acquisition Regulation 
Supplement (DFARS) to implement section 861 of the National Defense 
Authorization Act (NDAA) for Fiscal Year (FY) 2016, which provides 
amendments to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program (``the 
Program''). Specifically, section 861 provides new reporting 
requirements for mentor firms that will provide information to DoD's 
Office of Small Business Programs to support decisions regarding 
continuation of particular mentor-prot[eacute]g[eacute] agreements. In 
addition, section 861 adds new eligibility criteria; adds limitations 
on a prot[eacute]g[eacute] firm's participation in the Program; adds 
new elements to mentor-prot[eacute]g[eacute] agreements; extends the 
Program for three additional years; and amends requirements for 
business development assistance provided by a mentor firm and for 
reimbursement of fees assessed by the mentor firm. The objectives of 
this rule are to implement statutory amendments to the Program and to 
provide DoD's

[[Page 12683]]

Office of Small Business Programs with information to support decisions 
regarding continuation of particular mentor-prot[eacute]g[eacute] 
agreements.
    There were no issues raised by the public in response to the 
initial regulatory flexibility analysis provided in the proposed rule.
    The rule will apply to small entities that participate in the 
Program. There are currently 85 small entities participating in the 
Program as prot[eacute]g[eacute] firms and six small entities 
participating as mentors.
    The rule imposes new reporting requirements on mentor firms, 
including mentors who are small businesses, regarding assistance they 
have provided to their prot[eacute]g[eacute] firms and the success this 
assistance has had. Although prot[eacute]g[eacute] firms are not 
required to submit these reports, the mentor firms will need to obtain 
supporting information from the prot[eacute]g[eacute] firms in order to 
ascertain the success of the assistance provided.
    DoD has not identified any alternatives that are consistent with 
the stated objectives of the applicable statute.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The 
rule contains information collection requirements. OMB has cleared this 
information collection requirement under OMB Control Number 0704-0332, 
titled: Defense Federal Acquisition Regulation Supplement (DFARS) 
Appendix I.

List of Subjects in 48 CFR Part 219 and Appendix I to Chapter 2

    Government procurement.

Jennifer L. Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 219 and appendix I to chapter 2 are amended 
as follows:

0
1. The authority citation for 48 CFR part 219 and appendix I to chapter 
2 continues to read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 219--SMALL BUSINESS PROGRAMS


219.7100  [Amended]

0
2. Amend section 219.7100 by--
0
a. Removing ``Section 831'' and adding ``section 831'' in its place; 
and
0
b. Adding the phrase ``, as amended through November 25, 2015'' to the 
end of the first sentence.

0
3. Amend section 219.7102 by--
0
a. Revising paragraph (a);
0
b. Removing paragraph (b); and
0
c. Redesignating paragraphs (c) and (d) as paragraphs (b) and (c), 
respectively.
0
d. In the newly redesignated paragraph (c)(2), removing ``Subpart'' and 
adding ``subpart'' in its place.
    The revision reads as follows:


219.7102  General.

* * * * *
    (a) Mentor firms and prot[eacute]g[eacute] firms that meet the 
criteria in Appendix I, section I-102.
* * * * *


219.7103-2  [Amended]

0
4. Amend section 219.7103-2, in paragraph (e)(3), by removing 
``219.7102(d)(1)(ii)'' and adding ``219.7102(c)(1)(ii)'' in its place.


219.7104  [Amended]

0
5. Amend section 219.7104 by--
0
a. In paragraph (b)--
0
i. Removing ``Advance agreements are encouraged.'';
0
ii. Removing ``before October 1, 2018'' and adding ``not later than 
September 30, 2021'' in its place; and
0
b. In paragraph (d), removing ``before October 1, 2018'' and adding 
``not later than September 30, 2021'' in its place.

0
6. Amend Appendix I to Chapter 2 as follows:
0
a. In section I-100, revise paragraph (a).
0
b. Remove section I-101.1.
0
c. Redesignate section I-101.2 as section I-101.1.
0
d. Add new section I-101.2.
0
e. Revise section I-101.4.
0
f. Remove section I-101.5.
0
g. Redesignate section I-101.6 as section I-101.5.
0
h. In the newly redesignated section I-101.5, remove ``Section'' and 
add ``section'' in its place.
0
i. Remove section I-101.7.
0
j. Redesignate section I-101.8 as section I-101.6.
0
k. In the redesignated section I-101.6, remove ``Section'' and add 
``section'' in its place.
0
l. In section I-102, revise paragraphs (a) through (d).
0
m. Amend section I-103 by--
0
i. In paragraph (a), removing ``September 30, 2015'' and adding 
``September 30, 2018'' in its place; and
0
ii. In paragraph (b), removing ``September 30, 2018'' and adding 
``September 30, 2021'' in its place;
0
n. Amend section I-104 by--
0
i. Revising paragraph (a);
0
ii. In paragraph (c), removing ``as defined in I-101.5'';
0
iii. In paragraph (d), removing ``I-107(f)'' and adding ``I-106(d)'' in 
its place; and
0
iv. Revising paragraph (e).
0
o. Amend section I-105 by--
0
i. Revising paragraph (b)(1);
0
ii. In paragraphs (b)(2) through (b)(6), removing ``company's'' and 
``company'' and adding ``entity's'' and ``entity'', respectively in 
each place they appear;
0
iii. Revising paragraph (b)(7); and
0
iv. Revising paragraph (c);
0
p. Amend section I-106 by--
0
i. In paragraph (d)(1)(i), removing ``business development, '';
0
ii. In paragraph (d)(1)(iii), adding ``described in I-107(g)'' to the 
end of the sentence;
0
iii. In paragraph (d)(2), removing ``Award of subcontracts'' and adding 
``Award of subcontracts to the prot[eacute]g[eacute] firm'' in its 
place;
0
iv. Removing paragraph (d)(6); and
0
v. Redesignating paragraph (d)(7) as (d)(6);
0
vi. In the newly redesignated paragraph (d)(6)(i), removing ``Section'' 
and adding ``section'' in its place.
0
q. Amend section I-107 by--
0
i. In the introductory text, removing ``will contain the following 
elements:'' and adding ``shall contain--'' in its place;
0
ii. Revising paragraph (b);
0
iii. In paragraph (d), removing ``I-102'' and adding ``I-102(a)'' in 
its place; and
0
iv. Revising paragraphs (e), (f), and (g).
0
r. Amend section I-109 by--
0
i. Redesignating paragraph (e) as paragraph (f); and
0
ii. Adding new paragraph (e).
0
s. Amend section I-110.1, in paragraph (a), by removing ``DoD 
Comprehensive Subcontracting Plan Test Program'' and adding ``DoD Test 
Program for Negotiation of Comprehensive Small Business Subcontracting 
Plans'' in its place; and removing ``entity employing the severely 
disabled'' and adding ``entity employing severely disabled 
individuals'' in its place.
0
t. Amend section I-110.2, in paragraphs (a) introductory text, (b) 
introductory text, and (c) by removing ``OUSD(AT&L)'' and adding 
``OUSD(A&S)'' in each place.
0
u. Amend section I-112.1 by--
0
i. In the section heading, removing ``SF 294s'' and adding ``Standard 
Forms 294'' in its place; and
0
ii. In paragraph (b), removing ``SDB'' and adding ``applicable'' in its 
place; and removing ``I-101.3 or I-101.5'' and adding ``I-102(b)'' in 
its place.
0
v. Revise section I-112.2.
    The revisions and additions read as follows:

[[Page 12684]]

Appendix I to Chapter 2--Policy and Procedures for the DOD Pilot Mentor 
Prot[eacute]g[eacute] Program

I-100 Purpose.

    (a) This Appendix I to 48 CFR chapter 2 implements the Pilot 
Mentor-Prot[eacute]g[eacute] Program (hereafter referred to as the 
``Program'') established under section 831 of Public Law 101-510, 
the National Defense Authorization Act for Fiscal Year 1991 (10 
U.S.C. 2302 note), as amended through November 25, 2015. The purpose 
of the Program is to provide incentives to major DoD contractors to 
furnish eligible small business concerns with assistance designed 
to--
    (1) Enhance the capabilities of eligible small business concerns 
to perform as subcontractors and suppliers under DoD contracts and 
other contracts and subcontracts; and
    (2) Increase the participation of such business concerns as 
subcontractors and suppliers under DoD contracts, other Federal 
Government contracts, and commercial contracts.
* * * * *

I-101.2 Nontraditional Defense Contractor

    An entity that is not currently performing and has not performed 
any contract or subcontract for DoD that is subject to full coverage 
under the cost accounting standards prescribed pursuant to 41 U.S.C. 
1502 and the regulations implementing such section, for at least the 
1-year period preceding the solicitation of sources by DoD for the 
procurement (10 U.S.C. 2302(9)).
* * * * *

I-101.4 Severely Disabled Individual

    An individual who is blind or severely disabled as defined in 41 
U.S.C. 8501.
* * * * *

I-102 Participant Eligibility

    (a) To be eligible to participate as a mentor, an entity must--
    (1) Be eligible for the award of Federal contracts;
    (2) Demonstrate that it--
    (i) Is qualified to provide assistance that will contribute to 
the purpose of the Program;
    (ii) Is of good financial health and character; and
    (iii) Is not on a Federal list of debarred or suspended 
contractors; and
    (3) Be capable of imparting value to a prot[eacute]g[eacute] 
firm because of experience gained as a DoD contractor or through 
knowledge of general business operations and Government contracting, 
as demonstrated by evidence that such entity--
    (i) Received DoD contracts and subcontracts equal to or greater 
than $100 million during the previous fiscal year;
    (ii) Is an other-than-small business, unless a waiver to the 
small business exception has been obtained from the Director, Small 
Business Programs (SBP), OUSD(A&S);
    (iii) Is a prime contractor to DoD with an active subcontracting 
plan; or
    (iv) Has graduated from the 8(a) Business Development Program 
and provides documentation of its ability to serve as a mentor.
    (b) To be eligible to participate as a prot[eacute]g[eacute], an 
entity must be--
    (1) A small business concern;
    (2) Eligible for the award of Federal contracts;
    (3) Less than half the Small Business Administration (SBA) size 
standard for its primary North American Industry Classification 
System (NAICS) code;
    (4) Not owned or managed by individuals or entities that 
directly or indirectly have stock options or convertible securities 
in the mentor firm; and
    (5) At least one of the following:
    (i) A qualified HUBZone small business concern.
    (ii) A women-owned small business concern.
    (iii) A service-disabled veteran-owned small business concern.
    (iv) An entity owned and controlled by an Indian tribe.
    (v) An entity owned and controlled by a Native Hawaiian 
organization.
    (vi) An entity owned and controlled by socially and economically 
disadvantaged individuals.
    (vii) A qualified organization employing severely disabled 
individuals.
    (viii) A nontraditional defense contractor.
    (ix) An entity that currently provides goods or services in the 
private sector that are critical to enhancing the capabilities of 
the defense supplier base and fulfilling key DoD needs.
    (c) Mentor firms may rely in good faith on a written 
representation that the entity meets the requirements of paragraph 
(b) of this section, except that a mentor firm is required to 
confirm a prot[eacute]g[eacute]'s status as a HUBZone small business 
concern (see FAR 19.703(d)).
    (d) If at any time the SBA (or DoD in the case of entities 
employing severely disabled individuals) determines that a 
prot[eacute]g[eacute] is ineligible, assistance that the mentor firm 
furnishes to the prot[eacute]g[eacute] after the date of the 
determination may not be considered assistance furnished under the 
Program.
* * * * *

I-104 Selection of Prot[eacute]g[eacute] Firms

    (a) Mentor firms will be solely responsible for selecting 
prot[eacute]g[eacute] firms that qualify under I-102(b). Mentor 
firms are encouraged to identify and select concerns that have not 
previously received significant prime contract awards from DoD or 
any other Federal agency.
* * * * *
    (e) A prot[eacute]g[eacute] firm may not be a party to more than 
one DoD mentor-prot[eacute]g[eacute] agreement at a time, and may 
only participate in the Program during the 5-year period beginning 
on the date the prot[eacute]g[eacute] firm enters into its first 
mentor-prot[eacute]g[eacute] agreement.

I-105 Mentor Approval Process

* * * * *
    (b) * * *
    (1) A statement that the entity meets the requirements in I-
102(a), specifying the criteria in I-102(a)(3) under which the 
entity is applying.
* * * * *
    (7) The total dollar amount and percentage of subcontracts that 
the entity awarded to firms qualifying under I-102(b)(5)(ii) through 
(viii) during the 2 preceding fiscal years. (Show DoD subcontract 
awards separately.) If the entity was required to submit a Summary 
Subcontract Report (SSR) in the Electronic Subcontracting Reporting 
System, the request must include copies of the final reports for the 
2 preceding fiscal years.
* * * * *
    (c) A template of the mentor application is available at: http://www.acq.osd.mil/osbp/sb/programs/mpp/resources.shtml.
* * * * *

I-107 Elements of a Mentor-Prot[eacute]g[eacute] Agreement

* * * * *
    (b) The NAICS code(s) that represent the contemplated supplies 
or services to be provided by the prot[eacute]g[eacute] firm to the 
mentor firm and a statement that, at the time the agreement is 
submitted for approval, the prot[eacute]g[eacute] firm does not 
exceed the size standard in I-102(b)(3);
* * * * *
    (e) Assurances that--
    (1) The mentor firm does not share, directly or indirectly, with 
the prot[eacute]g[eacute] firm ownership or management of the 
prot[eacute]g[eacute] firm;
    (2) The mentor firm does not have an agreement, at the time the 
mentor firm enters into a mentor-prot[eacute]g[eacute] agreement, to 
merge with the prot[eacute]g[eacute] firm;
    (3) The owners and managers of the mentor firm are not the 
parent, child, spouse, sibling, aunt, uncle, niece, nephew, 
grandparent, grandchild, or first cousin of an owner or manager of 
the prot[eacute]g[eacute] firm;
    (4) The mentor firm has not, during the 2-year period before 
entering into a mentor-prot[eacute]g[eacute] agreement, employed any 
officer, director, principal stock holder, managing member, or key 
employee of the prot[eacute]g[eacute] firm;
    (5) The mentor firm has not engaged in a joint venture with the 
prot[eacute]g[eacute] firm during the 2-year period before entering 
into a mentor-prot[eacute]g[eacute] agreement, unless such joint 
venture was approved by SBA prior to making any offer on a contract;
    (6) The mentor firm is not, directly or indirectly, the primary 
party providing contracts to the prot[eacute]g[eacute] firm, as 
measured by the dollar value of the contracts; and
    (7) The SBA has not made a determination of affiliation or 
control;
    (f) A preliminary assessment of the developmental needs of the 
prot[eacute]g[eacute] firm;
    (g) A developmental program for the prot[eacute]g[eacute] firm 
including--
    (1) The type of assistance the mentor will provide to the 
prot[eacute]g[eacute] and how that assistance will--
    (i) Increase the prot[eacute]g[eacute]'s ability to participate 
in DoD, Federal, and/or commercial contracts and subcontracts; and
    (ii) 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;
    (2) Factors to assess the prot[eacute]g[eacute] firm's 
developmental progress under the Program,

[[Page 12685]]

including specific milestones for providing each element of the 
identified assistance;
    (3) A description of the quantitative and qualitative benefits 
to DoD from the agreement, if applicable; and
    (4) Goals for additional awards for which the 
prot[eacute]g[eacute] firm can compete outside the Program;
* * * * *

I-109 Reimburseable Agreements

* * * * *
    (e) DoD may not reimburse any fee to the mentor firm for 
services provided to the prot[eacute]g[eacute] firm pursuant to I-
106(d)(6) or for business development expenses incurred by the 
mentor firm under a contract awarded to the mentor firm while 
participating in a joint venture with the prot[eacute]g[eacute] 
firm.
* * * * *

I-112.2 Program Specific Reporting Requirements

    (a) Mentors must report on the progress made under active 
mentor-prot[eacute]g[eacute] agreements semiannually for the periods 
ending March 31st and September 30th throughout the Program 
participation term of the agreement. The September 30th report must 
address the entire fiscal year.
    (1) Reports are due 30 days after the close of each reporting 
period.
    (2) Each report must include the following data on performance 
under the mentor-prot[eacute]g[eacute] agreement:
    (i) Dollars obligated (for reimbursable agreements).
    (ii) Expenditures.
    (iii) Dollars credited, if any, toward applicable subcontracting 
goals as a result of developmental assistance provided to the 
prot[eacute]g[eacute] and a copy of the ISR or SF 294 and/or SSR for 
each contract where developmental assistance was credited.
    (iv) Any new awards of subcontracts on a competitive or 
noncompetitive basis to the prot[eacute]g[eacute] firm under DoD 
contracts or other contracts, including the value of such 
subcontracts.
    (v) All technical or management assistance provided by mentor 
firm personnel for the purposes described in I-106(d).
    (vi) Any extensions, increases in the scope of work, or 
additional payments not previously reported for prior awards of 
subcontracts on a competitive or noncompetitive basis to the 
prot[eacute]g[eacute] firm under DoD contracts or other contracts, 
including the value of such subcontracts.
    (vii) The amount of any payment of progress payments or advance 
payments made to the prot[eacute]g[eacute] firm for performance 
under any subcontract made under the Program.
    (viii) Any loans made by the mentor firm to the 
prot[eacute]g[eacute] firm.
    (ix) All Federal contracts awarded to the mentor firm and the 
prot[eacute]g[eacute] firm as a joint venture, designating whether 
the award was a restricted competition or a full and open 
competition.
    (x) Any assistance obtained by the mentor firm for the 
prot[eacute]g[eacute] firm from the entities listed at I-106(d)(6).
    (xi) Whether there have been any changes to the terms of the 
mentor-prot[eacute]g[eacute] agreement.
    (xii) A narrative describing the following:
    (A) The success assistance provided under I-106(d) has had in 
addressing the developmental needs of the prot[eacute]g[eacute] 
firm.
    (B) The impact on DoD contracts.
    (C) Any problems encountered.
    (D) Any milestones achieved in the prot[eacute]g[eacute] firm's 
developmental program.
    (E) Impact of the agreement in terms of capabilities enhanced, 
certifications received, and technology transferred.
    (3) In accordance with section 861, paragraph (b)(2), of the 
National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 
114-92), the reporting requirements specified in paragraphs 
(a)(2)(iv) through (a)(2)(xii)(C) of this section apply 
retroactively to mentor-prot[eacute]g[eacute] agreements that were 
in effect on November 25, 2015. Mentors must submit reports as 
described in paragraph (a) of this section.
    (4) A recommended reporting format and guidance for its 
submission are available at: http://www.acq.osd.mil/osbp/sb/programs/mpp/resources.shtml.
    (b) The prot[eacute]g[eacute] must provide data, annually by 
October 31st, on the progress made during the prior fiscal year by 
the prot[eacute]g[eacute] in employment, revenues, and participation 
in DoD contracts during--
    (1) Each fiscal year of the Program participation term; and
    (2) Each of the 2 fiscal years following the expiration of the 
Program participation term.
    (c) The prot[eacute]g[eacute] report required by paragraph (b) 
of this section may be provided as part of the mentor report for the 
period ending September 30th required by paragraph (a) of this 
section.
    (d) Progress reports must be submitted--
    (1) For credit agreements, to the cognizant Component Director, 
SBP, that approved the agreement, and the mentor's cognizant DCMA 
administrative contracting officer; and
    (2) For reimbursable agreements, to the cognizant Component 
Director, SBP, the contracting officer, the DCMA administrative 
contracting officer, and the program manager.
* * * * *
[FR Doc. 2018-05937 Filed 3-22-18; 8:45 am]
BILLING CODE 5001-06-P