Defense Federal Acquisition Regulation Supplement: Reauthorization and Improvement of Mentor-Protégé Program (DFARS Case 2020-D009), 52348-52351 [2022-18225]

Download as PDF 52348 Federal Register / Vol. 87, No. 164 / Thursday, August 25, 2022 / Rules and Regulations adding ‘‘To an end item containing a covered material’’ in its place. The addition and revisions read as follows: 252.225–7052 Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten. As prescribed in 225.7018–5, use the following clause: Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten (Aug 2022) * * * * * (b) * * * (3) For production of tantalum metals of any kind and alloys, this restriction includes the reduction or melting of any form of tantalum to create tantalum metal including unwrought, powder, mill products, and alloys. The restriction also covers all subsequent phases of production of tantalum metals and alloys. * * * * * [FR Doc. 2022–18224 Filed 8–24–22; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Chapter 2 [Docket DARS–2022–0002] RIN 0750–AK96 Defense Federal Acquisition Regulation Supplement: Reauthorization and Improvement of Mentor-Prote´ge´ Program (DFARS Case 2020–D009) 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 2020 that reauthorizes and modifies the DoD Mentor-Prote´ge´ Program. DATES: Effective October 24, 2022. FOR FURTHER INFORMATION CONTACT: Ms. Jeanette Snyder, 703–508–7524. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with RULES SUMMARY: I. Background DoD published a proposed rule in the Federal Register at 87 FR 11009 on February 28, 2022, to revise the DFARS to implement section 872 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 (Pub. L. 116–92). Section 872 modifies VerDate Sep<11>2014 16:00 Aug 24, 2022 Jkt 256001 subsection (j) of section 831 of the NDAA for FY 1991 (Pub. L. 101–510) to reauthorize and improve the DoD Mentor-Prote´ge´ Program. Section 872 extends the date for entering into a mentor-prote´ge´ agreement, extends the date for reimbursement of mentors, limits the term for program participation, extends the date for a mentor to receive credit toward the attainment of small business subcontracting goals, and expands eligibility for prote´ge´ firms. One respondent submitted a public comment in response to the proposed rule. II. Discussion and Analysis DoD reviewed the public comment in the development of the final rule. A discussion of the comment follows: A. Summary of Significant Changes From the Proposed Rule No changes were made from the proposed rule as a result of the public comment received. B. Analysis of Public Comments Comment: One respondent indicated a conditional individual waiver(s) to the nonmanufacturing rule should be issued in conjunction with the extended DoD Mentor-Prote´ge´ Program through September 30, 2024. Response: This is outside the scope of the rule. Individual waivers to the nonmanufacturer rule are addressed at Federal Acquisition Regulation (FAR) 19.505(c)(4)(B) and 13 CFR 121.1203. C. Other Changes A change was made at DFARS Appendix I, I–101, Definitions, to delete the definitions for minority institution of higher education, women-owned small business, and service-disabled veteran-owned small business. These terms are already defined in FAR part 2, and the definitions in FAR part 2 apply to the DFARS unless otherwise stated. Minor editorial changes were made at DFARS 219.7101 and 219.7102. No other changes were made from the proposed rule. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Services and Commercial Products, Including Commercially Available Off-the-Shelf Items This rule does not create any new solicitation provisions or contract clauses. It does not impact any existing provisions or clauses or their applicability to contracts at or below the simplified acquisition threshold and acquisitions of commercial services and commercial products, including PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 commercially available off-the-shelf items. IV. Expected Impact of the Rule This rule implements section 872 of the NDAA for FY 2020, which reauthorizes and improves the DoD Mentor-Prote´ge´ program. 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 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. Therefore, this rule will benefit small business concerns by extending the opportunity to enter into DoD mentorprote´ge´ agreements. In addition, the eligibility of small business concerns is expanded as this rule removes prior restrictions for eligibility by aligning the size of the small business with the size standard associated with its primary North American Industry Classification System code. This rule is also expected to benefit large entities and the Government by expanding the defense industrial base. V. 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. VI. Congressional Review Act As required by the Congressional Review Act (5 U.S.C. 801–808) before an interim or final rule takes effect, DoD will submit a copy of the interim or final rule with the form, Submission of Federal Rules under the Congressional Review Act, to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States. A major rule under the Congressional Review Act cannot take E:\FR\FM\25AUR1.SGM 25AUR1 Federal Register / Vol. 87, No. 164 / Thursday, August 25, 2022 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs has determined that this rule is not a major rule as defined by 5 U.S.C. 804. VII. Regulatory Flexibility Act A final regulatory flexibility analysis has been prepared consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The final regulatory flexibility analysis is summarized as follows: This final rule is necessary to implement section 872 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 (Pub. L. 116–92). The objective of this rule is to implement section 872, which reauthorizes and improves the DoD Mentor-Prote´ge´ Program (Program). The authority for entering into new agreements expired on September 30, 2018. This rule extends the date for new mentor-prote´ge´ agreements to September 30, 2024. This rule also extends the date for reimbursement of incurred costs under the Program to September 30, 2026, as well as the date for costs to be applied to a mentor’s subcontracting plan goals. The eligibility of a small business concern, as related to the Program, is also modified to align with the size standard associated with its primary North American Industry Classification System code. No comments were received in response to the initial regulatory flexibility analysis. The number of ongoing DoD mentorprote´ge´ agreements in FY 2018 and FY 2019 was 90, four of which expired in FY 2019. No new agreements were entered into in FY 2019 since the authority to enter into agreements expired on September 30, 2018. The number of ongoing agreements in FY 2020 was 86, 29 of which expired. As of June 2021, there were 57 ongoing agreements, 50 new agreements, and 12 expiring agreements, with a total of 95. DoD estimates 66 new agreements will be entered into in FY 2022, 82 in FY 2023, and 98 in FY 2024. This rule does not impose any new reporting, recordkeeping, or other compliance requirements for small entities. DoD did not identify any significant alternatives that would minimize or reduce the impact on small entities. Any impact is expected to be beneficial. VIII. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; however, these changes to the DFARS do not impose additional information collection requirements to the VerDate Sep<11>2014 16:00 Aug 24, 2022 Jkt 256001 paperwork burden previously approved under OMB Control Number 0704–0332. List of Subjects in 48 CFR Part 219 and Appendix I to Chapter 2 Government procurement. Jennifer D. Johnson, Editor/Publisher, Defense Acquisition Regulations System. Therefore, 48 CFR part 219 and appendix I to chapter 2 are amended as follows: PART 219—SMALL BUSINESS PROGRAMS 1. The authority citation for 48 CFR part 219 is revised to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 2. Revise section 219.7100 to read as follows: ■ 219.7100 Scope. This subpart implements the Pilot Mentor-Prote´ge´ Program (referred to as the Program) established under section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 101–510; 10 U.S.C. 2302 note). The purpose of the Program is to provide incentives for DoD contractors to assist prote´ge´ firms in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts. 219.7101 [Amended] 3. Amend section 219.7101 by removing ‘‘Appendix I’’ and adding ‘‘appendix I’’ in its place. ■ 4. Amend section 219.7102 by— ■ a. In paragraph (a), removing ‘‘Appendix I’’ and adding ‘‘appendix I’’ in its place; ■ b. In paragraphs (a) and (b), removing the periods and adding semicolons in their places; ■ c. Redesignating paragraph (c) as paragraph (d); ■ d. Adding a new paragraph (c); and ■ e. Revising newly redesignated paragraphs (d) introductory text and (d)(1)(ii). The addition and revisions read as follows: ■ 219.7102 General. * * * * * (c) A preliminary assessment of the prote´ge´ firm’s cybersecurity readiness. The DoD Office of Small Business Programs (OSBP), Office of the Under Secretary of Defense, Acquisition and Sustainment (OUSD(A&S)), provides this preliminary assessment, which is a benefit of program participation; and (d) Incentives that DoD may provide to mentor firms, which include— PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 52349 (1) * * * (ii) A separate contract, upon written determination by the Director, OSBP, of the cognizant military department or defense agency that unusual circumstances justify reimbursement using a separate contract; or * * * * * ■ 4. Revise section 219.7103–1 to read as follows: 219.7103–1 General. The procedures for application, acceptance, and participation in the Program are in appendix I, Policy and Procedures for the DoD Pilot MentorProte´ge´ Program. The Mentor-Prote´ge´ Program Director, OSBP, OUSD(A&S), has the authority to approve contractors as mentor firms. The Director, OSBP, of each military department or defense agency has the authority to approve mentor-prote´ge´ agreements and forward approved mentor-prote´ge´ agreements to the contracting officer when funding is available. ■ 5. Amend section 219.7103–2 by— ■ a. In the introductory text, removing ‘‘must’’ and adding ‘‘shall’’ in its place; ■ b. Revising paragraphs (d)(1), (e)(3), and (f); ■ c. In paragraph (g), removing ‘‘Appendix I’’ and adding ‘‘appendix I’’ in its place; and ■ d. Revising paragraph (h). The revisions read as follows: 219.7103–2 Contracting officer responsibilities. * * * * * (d) * * * (1) A DoD program manager or the Director, OSBP, of the cognizant military department or defense agency has made funds available for that purpose; and * * * * * (e) * * * (3) The Director, OSBP, of the military department or defense agency has made a determination in accordance with 219.7102(d)(1)(ii). (f) Not authorize reimbursement for costs of assistance furnished to a prote´ge´ firm in excess of $1 million in a fiscal year unless a written determination from the Director, OSBP, of the military department or defense agency is obtained. * * * * * (h) Provide a copy of the approved mentor-prote´ge´ agreement to the Defense Contract Management Agency (DCMA) small business professional responsible for conducting the annual performance review (see appendix I, section I–113). E:\FR\FM\25AUR1.SGM 25AUR1 52350 219.7104 Federal Register / Vol. 87, No. 164 / Thursday, August 25, 2022 / Rules and Regulations [Amended] 6. Amend section 219.7104 in paragraphs (b) and (d) by removing ‘‘September 30, 2021’’ and adding ‘‘September 30, 2026’’ in its place. ■ 219.7106 [Amended] 7. Amend section 219.7106 by removing ‘‘The Defense Contract Management Agency’’ and adding ‘‘DCMA’’ in its place. ■ 8. Amend appendix I to chapter 2 by— ■ a. In section I–100— ■ i. Revising paragraph (a) introductory text; ■ ii. In paragraph (c)(1), removing ‘‘2 years’’ and adding ‘‘5 years’’ in its place; ■ iii. Revising paragraph (c)(3); and ■ iv. Adding paragraph (c)(4). ■ b. Revising section I–101. ■ c. In section I–102— ■ i. In paragraph (a)(2)(ii), removing the word ‘‘and’’ at the end of the paragraph; ■ ii. Adding paragraph (a)(2)(iv); ■ iii. Revising paragraph (a)(3); ■ iv. In paragraph (b)(3), removing ‘‘Less than half’’ and adding ‘‘Not more than’’ in its place; ■ v. In paragraph (e), removing ‘‘Office of Small Business Programs (OSBP)’’ and adding ‘‘OSBP’’ in its place; ■ vi. In paragraph (g)(1), removing ‘‘pursuant to approved mentor-prote´ge´ agreements’’ and adding ‘‘in accordance with the approved mentor-prote´ge´ agreement’’ in its place; ■ vii. In paragraph (g)(3), removing ‘‘cognizant Component Director, SBP’’ and adding ‘‘Director, OSBP, of the cognizant military department or defense agency’’ in its place; and ■ viii. Adding paragraph (h). ■ d. In section I–103— ■ i. In paragraph (a), removing ‘‘September 30, 2018’’ and adding ‘‘September 30, 2024’’ in its place; ■ ii. In paragraph (b) introductory text, removing ‘‘prior to September 30, 2021’’ and adding ‘‘through September 30, 2026’’ in its place; and ■ iii. In paragraph (b)(3), removing ‘‘cognizant Component Director, SBP,’’ and adding ‘‘Director, OSBP, of the cognizant military department or defense agency’’ in its place. ■ e. In section I–104, revising paragraph (c). ■ f. In section I–105, revising paragraphs (a) and (c). ■ g. In section I–106— ■ i. In paragraph (d)(1)(i), removing ‘‘marketing’’ and adding ‘‘marketing and technology commercialization, compliance systems’’ in its place; ■ ii. In paragraph (d)(1)(ii), removing ‘‘quality assurance’’ and adding ‘‘quality assurance; acquisition or transfer of khammond on DSKJM1Z7X2PROD with RULES ■ VerDate Sep<11>2014 16:00 Aug 24, 2022 Jkt 256001 hardware, tooling, or software; and technology transfer and transition’’ in its place; ■ iii. In paragraph (d)(2), removing ‘‘firmunder’’ and adding ‘‘firm under’’ in its place; ■ iv. In paragraph (d)(4), removing ‘‘Subpart’’ and adding ‘‘subpart’’ in its place; and ■ v. Adding paragraph (g). ■ h. In section I–107— ■ i. In paragraph (a), removing ‘‘email’’ and adding ‘‘email’’ in its place; ■ ii. In paragraph (j), removing ‘‘2 years’’ and adding ‘‘5 years’’ in its place; and ■ iii. Revising paragraph (k). ■ i. In section I–108— ■ i. In paragraph (a) introductory text, removing ‘‘DoD component’’ and adding ‘‘military department or defense agency’’ in its place; ■ ii. In paragraph (a)(5), removing ‘‘3 years (Term of agreements may not exceed 5 years)’’ and adding ‘‘2 years (agreements may not exceed 5 years) (see I–107(k))’’ in its place; ■ iii. In paragraph (a)(6), removing ‘‘$1,000,000’’ and adding ‘‘$1 million’’ in its place; ■ iv. In paragraph (b), removing ‘‘cognizant DoD components’’ and adding ‘‘the military department or defense agency’’ in its place; ■ v. In paragraph (c), removing ‘‘cognizant Component Director, SBP, prior’’ and adding ‘‘Director, OSBP, of the military department or defense agency prior’’ in its place; ■ vi. In paragraph (d), removing ‘‘cognizant DoD component’’ and adding ‘‘military department or defense agency’’ in its place; ■ vii. In paragraph (e), removing ‘‘component’’ and ‘‘Director, SBP’’ and adding ‘‘military department or defense agency’’ and ‘‘the Director, OSBP’’ in their places, respectively; and ■ viii. In paragraph (f), removing ‘‘cognizant Component Director, SBP,’’ and adding ‘‘Director, OSBP, of the military department or defense agency’’ in its place. ■ j. In section I–109— ■ i. In the introductory text, removing ‘‘agreements’’ and adding ‘‘agreements including agreements that provide for both reimbursement and subcontracting credit’’ in its place; ■ ii. In paragraph (c), removing ‘‘Component Directors, SBP’’ and adding ‘‘Directors, OSBP, of the military departments or defense agencies’’ in its place; and ■ iii. In paragraph (d), removing ‘‘$1,000,000’’ and ‘‘cognizant Component Director, SBP’’ wherever they appear and adding ‘‘$1 million’’ and ‘‘Director, OSBP, of the military department or defense agency’’ in their places, respectively. PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 k. In section I–110, adding introductory text. ■ l. In section I–110.1, at the end of the first sentence in paragraph (a), removing ‘‘Plans .’’ and adding ‘‘Plans.’’ in its place. ■ m. In section I–110.2, paragraphs (a) introductory text, (b) introductory text, and (c), removing ‘‘SBP’’ and adding ‘‘OSBP’’ in its place. ■ n. In section I–111— ■ i. In paragraph (a), removing ‘‘cognizant Component Director, SBP,’’ and ‘‘administrative contracting officer’’ and adding ‘‘Director, OSBP, of the cognizant military department or defense agency’’ and ‘‘small business professional’’ in their places, respectively; and ■ ii. Adding paragraph (f). ■ o. In section I–112.2— ■ i. In paragraph (a)(2)(xii)(A), removing ‘‘success assistance’’ and adding ‘‘success developmental assistance’’ in its place; ■ ii. In paragraph (a)(2)(xii)(B), removing ‘‘contracts’’ and adding ‘‘contracts, including but not limited to the transition of innovative technology into a program of record’’ in its place; ■ iii. In paragraph (a)(4), removing ‘‘at: https://www.acq.osd.mil/osbp/sb/ programs/mpp/resources.shtml’’ and adding ‘‘at https://business.defense.gov/ Programs/Mentor-Prote´ge´-Program/ MPP-Resources/’’ in its place; ■ iv. In paragraph (b)(2), removing ‘‘2 fiscal years’’ and adding ‘‘5 fiscal years’’ in its place; ■ v. In paragraph (d)(1), removing ‘‘cognizant Component Director, SBP,’’ and adding ‘‘Director, OSBP, of the military department or defense agency’’ in its place; ■ vi. In paragraph (d)(2), removing ‘‘cognizant Component Director, SBP,’’ and adding ‘‘Director, OSBP, of the military department or defense agency,’’ in its place; and ■ p. Revising section I–113. ■ q. Adding an authority citation at the end of the appendix. The revisions and additions read as follows: ■ Appendix I to Chapter 2—Policy and Procedures for the DoD Pilot MentorProte´ge´ Program I–100 Purpose (a) This appendix implements the Pilot Mentor-Prote´ge´ Program (the Program) established under section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 101–510; 10 U.S.C. 2302 note). The purpose of the Program is to provide incentives to major DoD contractors to furnish eligible small business concerns with assistance designed to— * E:\FR\FM\25AUR1.SGM * * 25AUR1 * * Federal Register / Vol. 87, No. 164 / Thursday, August 25, 2022 / Rules and Regulations (c) * * * (3) An increase in prote´ge´ participation in DoD science and technology programs; and (4) An increase in job creation of prote´ge´ firms from the date of execution of the mentor-prote´ge´ agreement until 5 years after completion of the mentor-prote´ge´ agreement. * * I–101 * * * Definitions As used in this appendix— Affiliation means, with respect to a relationship between a mentor firm and a prote´ge´ firm, a relationship described under 13 CFR 121.103. Eligible entity employing the severely disabled means a business entity operated on a for-profit or nonprofit basis that— (1) Uses rehabilitative engineering to provide employment opportunities for severely disabled individuals and integrates severely disabled individuals into its workforce; (2) Employs severely disabled individuals at a rate that averages not less than 20 percent of its total workforce; (3) Employs each severely disabled individual in its workforce generally on the basis of 40 hours per week; and (4) Pays not less than the minimum wage prescribed pursuant to section 6 of the Fair Labor Standards Act (29 U.S.C. 206) to those employees who are severely disabled individuals. Severely disabled individual means an individual who is blind or severely disabled as defined in 41 U.S.C. 8501. I–102 Participant Eligibility (a) * * * (2) * * * (iv) Is an other than small business concern, unless approved by the Director of the Office of Small Business Programs (OSBP), Office of the Under Secretary of Defense, Acquisition and Sustainment (OUSD(A&S)), in accordance with 13 CFR 121.103 regarding ‘‘affiliation and relationship’’; and (3) Be capable of imparting value to a prote´ge´ 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 a prime contractor to DoD with an active subcontracting plan; or (iii) Has graduated from the 8(a) Business Development Program and provides documentation of its ability to serve as a mentor. khammond on DSKJM1Z7X2PROD with RULES * * * * * (h) Within 30 days of any change in status affecting eligibility, mentors and prote´ge´s must give notice and explanation of pertinent facts to each other, the Director of OSBP, OUSD(A&S), and the Director, OSBP, of the military department or defense agency. * * * * * * Selection of Prote´ge´ Firms I–104 * * VerDate Sep<11>2014 * * 16:00 Aug 24, 2022 Jkt 256001 (c) Any interested party may file a protest of the selection of a prote´ge´ firm directly with the Director, OSBP, OUSD(A&S) or the Director, OSBP, of the cognizant military department or defense agency. In the event of a protest regarding the size or status of an entity selected to be a prote´ge´ firm, the Director, OSBP, OUSD(A&S), or the Director, OSBP, of the military department or defense agency must refer the protest to the SBA to resolve in accordance with 13 CFR part 121 (with respect to size) or other parts of title 13 of the CFR or this appendix (with respect to the prote´ge´’s socioeconomic status). The Director, OSBP, OUSD(A&S), or the Director, OSBP, of the military department or defense agency shall decide protests concerning all other aspects of a prote´ge´’s eligibility for the Program (e.g., nontraditional defense contractor or entity employing the severely disabled). * * * * * I–105 Mentor Approval Process (a) An entity seeking to participate as a mentor must apply to the Mentor-Prote´ge´ Program Director, OSBP, OUSD(A&S), to establish its initial eligibility as a mentor. * * * * * (c) A template of the mentor application is available at https://business.defense.gov/ Programs/Mentor-Prote´ge´-Program/MPPResources/. * * * * * 52351 statutory requirements, or other considerations), as well as for cause upon written findings (e.g., either of the participants’ failure to perform or provide adequate assurance of performance; failure to comply with laws, regulations, and policies; conflicts of interest; or default under any provisions of a DoD contract or agreement). * * * * * I–113 Performance Reviews DCMA will conduct annual performance reviews of the progress and accomplishments realized under approved mentor-prote´ge´ agreements. These reviews must verify data provided on the semiannual reports and must provide information as to— (a) Whether all costs reimbursed to the mentor firm under the agreement were reasonably incurred to furnish assistance to the prote´ge´ in accordance with the mentorprote´ge´ agreement and applicable regulations and procedures; and (b) Whether the mentor and prote´ge´ accurately reported progress made by the prote´ge´ in employment, revenues, and participation in DoD contracts during the Program participation term and for 5 fiscal years following the expiration of the Program participation term. Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. [FR Doc. 2022–18225 Filed 8–24–22; 8:45 am] BILLING CODE 5001–06–P I–106 Development of Mentor-Prote´ge´ Agreements * * * * * DEPARTMENT OF COMMERCE (g) The agreement shall demonstrate, through its execution, how it will contribute to the overall mission of DoD and/or fill or address an identified critical gap or vulnerability. Focus areas include, but are not limited to, manufacturing, research and development, and knowledge-based services. I–107 Elements of a Mentor-Prote´ge´ Agreement * * * * * (k) A program participation term for the agreement that does not exceed 2 years. Requests for an extension of the agreement for a period not to exceed an additional 3 years are subject to the approval of the Director, OSBP, of the cognizant military department or defense agency. The justification must detail the unusual circumstances that warrant a term in excess of 2 years; * * * * * I–110 Credit Agreements Sections I–110.1 and I–110.2 apply to all credit agreements, including agreements that provide for both credit and reimbursement. * * I–111 * * * * Agreement Terminations * * * * (f) The Director, OSBP, OUSD(A&S) or the Director, OSBP, of the military department or defense agency is authorized to terminate the mentor-prote´ge´ agreement for the convenience of the Government (to include national security grounds, funding limits, PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 National Oceanic and Atmospheric Administration 50 CFR Part 300 [Docket No. 220325–0079; RTID 0648– XC261] Pacific Halibut Fisheries; Catch Sharing Plan; Inseason Action National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Temporary rule; inseason adjustment; request for comments. AGENCY: This notice document announces additional season dates and increases the daily bag limit for some Pacific halibut recreational fisheries in the International Pacific Halibut Commission’s (IPHC) regulatory Area 2A off Washington, Oregon, and California. Specifically, this action adds season dates such that the Oregon Central Coast subarea will be open 7 days per week starting September 1, and increases the daily bag limit from one to two fish starting September 1 in the Oregon Central and Southern Coast subareas. This action also provides notice of the closure of the California SUMMARY: E:\FR\FM\25AUR1.SGM 25AUR1

Agencies

[Federal Register Volume 87, Number 164 (Thursday, August 25, 2022)]
[Rules and Regulations]
[Pages 52348-52351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18225]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Chapter 2

[Docket DARS-2022-0002]
RIN 0750-AK96


Defense Federal Acquisition Regulation Supplement: 
Reauthorization and Improvement of Mentor-Prot[eacute]g[eacute] Program 
(DFARS Case 2020-D009)

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 2020 that 
reauthorizes and modifies the DoD Mentor-Prot[eacute]g[eacute] Program.

DATES: Effective October 24, 2022.

FOR FURTHER INFORMATION CONTACT: Ms. Jeanette Snyder, 703-508-7524.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 87 FR 
11009 on February 28, 2022, to revise the DFARS to implement section 
872 of the National Defense Authorization Act (NDAA) for Fiscal Year 
(FY) 2020 (Pub. L. 116-92). Section 872 modifies subsection (j) of 
section 831 of the NDAA for FY 1991 (Pub. L. 101-510) to reauthorize 
and improve the DoD Mentor-Prot[eacute]g[eacute] Program. Section 872 
extends the date for entering into a mentor-prot[eacute]g[eacute] 
agreement, extends the date for reimbursement of mentors, limits the 
term for program participation, extends the date for a mentor to 
receive credit toward the attainment of small business subcontracting 
goals, and expands eligibility for prot[eacute]g[eacute] firms. One 
respondent submitted a public comment in response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comment in the development of the final 
rule. A discussion of the comment follows:

A. Summary of Significant Changes From the Proposed Rule

    No changes were made from the proposed rule as a result of the 
public comment received.

B. Analysis of Public Comments

    Comment: One respondent indicated a conditional individual 
waiver(s) to the nonmanufacturing rule should be issued in conjunction 
with the extended DoD Mentor-Prot[eacute]g[eacute] Program through 
September 30, 2024.
    Response: This is outside the scope of the rule. Individual waivers 
to the nonmanufacturer rule are addressed at Federal Acquisition 
Regulation (FAR) 19.505(c)(4)(B) and 13 CFR 121.1203.

C. Other Changes

    A change was made at DFARS Appendix I, I-101, Definitions, to 
delete the definitions for minority institution of higher education, 
women-owned small business, and service-disabled veteran-owned small 
business. These terms are already defined in FAR part 2, and the 
definitions in FAR part 2 apply to the DFARS unless otherwise stated. 
Minor editorial changes were made at DFARS 219.7101 and 219.7102. No 
other changes were made from the proposed rule.

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

    This rule does not create any new solicitation provisions or 
contract clauses. It does not impact any existing provisions or clauses 
or their applicability to contracts at or below the simplified 
acquisition threshold and acquisitions of commercial services and 
commercial products, including commercially available off-the-shelf 
items.

IV. Expected Impact of the Rule

    This rule implements section 872 of the NDAA for FY 2020, which 
reauthorizes and improves the DoD Mentor-Prot[eacute]g[eacute] program. 
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 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.
    Therefore, this rule will benefit small business concerns by 
extending the opportunity to enter into DoD mentor-
prot[eacute]g[eacute] agreements. In addition, the eligibility of small 
business concerns is expanded as this rule removes prior restrictions 
for eligibility by aligning the size of the small business with the 
size standard associated with its primary North American Industry 
Classification System code. This rule is also expected to benefit large 
entities and the Government by expanding the defense industrial base.

V. 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.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take

[[Page 52349]]

effect until 60 days after it is published in the Federal Register. The 
Office of Information and Regulatory Affairs has determined that this 
rule is not a major rule as defined by 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The final regulatory flexibility analysis is summarized as follows:
    This final rule is necessary to implement section 872 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 
(Pub. L. 116-92). The objective of this rule is to implement section 
872, which reauthorizes and improves the DoD Mentor-
Prot[eacute]g[eacute] Program (Program). The authority for entering 
into new agreements expired on September 30, 2018. This rule extends 
the date for new mentor-prot[eacute]g[eacute] agreements to September 
30, 2024. This rule also extends the date for reimbursement of incurred 
costs under the Program to September 30, 2026, as well as the date for 
costs to be applied to a mentor's subcontracting plan goals. The 
eligibility of a small business concern, as related to the Program, is 
also modified to align with the size standard associated with its 
primary North American Industry Classification System code.
    No comments were received in response to the initial regulatory 
flexibility analysis.
    The number of ongoing DoD mentor-prot[eacute]g[eacute] agreements 
in FY 2018 and FY 2019 was 90, four of which expired in FY 2019. No new 
agreements were entered into in FY 2019 since the authority to enter 
into agreements expired on September 30, 2018. The number of ongoing 
agreements in FY 2020 was 86, 29 of which expired. As of June 2021, 
there were 57 ongoing agreements, 50 new agreements, and 12 expiring 
agreements, with a total of 95. DoD estimates 66 new agreements will be 
entered into in FY 2022, 82 in FY 2023, and 98 in FY 2024.
    This rule does not impose any new reporting, recordkeeping, or 
other compliance requirements for small entities.
    DoD did not identify any significant alternatives that would 
minimize or reduce the impact on small entities. Any impact is expected 
to be beneficial.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; 
however, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved under OMB Control Number 0704-0332.

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

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

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

PART 219--SMALL BUSINESS PROGRAMS

0
1. The authority citation for 48 CFR part 219 is revised to read as 
follows:

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


0
2. Revise section 219.7100 to read as follows:


219.7100  Scope.

    This subpart implements the Pilot Mentor-Prot[eacute]g[eacute] 
Program (referred to as the Program) established under section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 
101-510; 10 U.S.C. 2302 note). The purpose of the Program is to provide 
incentives for DoD contractors to assist prot[eacute]g[eacute] firms in 
enhancing their capabilities and to increase participation of such 
firms in Government and commercial contracts.


219.7101  [Amended]

0
3. Amend section 219.7101 by removing ``Appendix I'' and adding 
``appendix I'' in its place.

0
4. Amend section 219.7102 by--
0
a. In paragraph (a), removing ``Appendix I'' and adding ``appendix I'' 
in its place;
0
b. In paragraphs (a) and (b), removing the periods and adding 
semicolons in their places;
0
c. Redesignating paragraph (c) as paragraph (d);
0
d. Adding a new paragraph (c); and
0
e. Revising newly redesignated paragraphs (d) introductory text and 
(d)(1)(ii).
    The addition and revisions read as follows:


219.7102  General.

* * * * *
    (c) A preliminary assessment of the prot[eacute]g[eacute] firm's 
cybersecurity readiness. The DoD Office of Small Business Programs 
(OSBP), Office of the Under Secretary of Defense, Acquisition and 
Sustainment (OUSD(A&S)), provides this preliminary assessment, which is 
a benefit of program participation; and
    (d) Incentives that DoD may provide to mentor firms, which 
include--
    (1) * * *
    (ii) A separate contract, upon written determination by the 
Director, OSBP, of the cognizant military department or defense agency 
that unusual circumstances justify reimbursement using a separate 
contract; or
* * * * *

0
4. Revise section 219.7103-1 to read as follows:


219.7103-1  General.

    The procedures for application, acceptance, and participation in 
the Program are in appendix I, Policy and Procedures for the DoD Pilot 
Mentor-Prot[eacute]g[eacute] Program. The Mentor-Prot[eacute]g[eacute] 
Program Director, OSBP, OUSD(A&S), has the authority to approve 
contractors as mentor firms. The Director, OSBP, of each military 
department or defense agency has the authority to approve mentor-
prot[eacute]g[eacute] agreements and forward approved mentor-
prot[eacute]g[eacute] agreements to the contracting officer when 
funding is available.

0
5. Amend section 219.7103-2 by--
0
a. In the introductory text, removing ``must'' and adding ``shall'' in 
its place;
0
b. Revising paragraphs (d)(1), (e)(3), and (f);
0
c. In paragraph (g), removing ``Appendix I'' and adding ``appendix I'' 
in its place; and
0
d. Revising paragraph (h).
    The revisions read as follows:


219.7103-2  Contracting officer responsibilities.

* * * * *
    (d) * * *
    (1) A DoD program manager or the Director, OSBP, of the cognizant 
military department or defense agency has made funds available for that 
purpose; and
* * * * *
    (e) * * *
    (3) The Director, OSBP, of the military department or defense 
agency has made a determination in accordance with 219.7102(d)(1)(ii).
    (f) Not authorize reimbursement for costs of assistance furnished 
to a prot[eacute]g[eacute] firm in excess of $1 million in a fiscal 
year unless a written determination from the Director, OSBP, of the 
military department or defense agency is obtained.
* * * * *
    (h) Provide a copy of the approved mentor-prot[eacute]g[eacute] 
agreement to the Defense Contract Management Agency (DCMA) small 
business professional responsible for conducting the annual performance 
review (see appendix I, section I-113).

[[Page 52350]]

219.7104  [Amended]

0
6. Amend section 219.7104 in paragraphs (b) and (d) by removing 
``September 30, 2021'' and adding ``September 30, 2026'' in its place.


219.7106  [Amended]

0
7. Amend section 219.7106 by removing ``The Defense Contract Management 
Agency'' and adding ``DCMA'' in its place.

0
8. Amend appendix I to chapter 2 by--
0
a. In section I-100--
0
i. Revising paragraph (a) introductory text;
0
ii. In paragraph (c)(1), removing ``2 years'' and adding ``5 years'' in 
its place;
0
iii. Revising paragraph (c)(3); and
0
iv. Adding paragraph (c)(4).
0
b. Revising section I-101.
0
c. In section I-102--
0
i. In paragraph (a)(2)(ii), removing the word ``and'' at the end of the 
paragraph;
0
ii. Adding paragraph (a)(2)(iv);
0
iii. Revising paragraph (a)(3);
0
iv. In paragraph (b)(3), removing ``Less than half'' and adding ``Not 
more than'' in its place;
0
v. In paragraph (e), removing ``Office of Small Business Programs 
(OSBP)'' and adding ``OSBP'' in its place;
0
vi. In paragraph (g)(1), removing ``pursuant to approved mentor-
prot[eacute]g[eacute] agreements'' and adding ``in accordance with the 
approved mentor-prot[eacute]g[eacute] agreement'' in its place;
0
vii. In paragraph (g)(3), removing ``cognizant Component Director, 
SBP'' and adding ``Director, OSBP, of the cognizant military department 
or defense agency'' in its place; and
0
viii. Adding paragraph (h).
0
d. In section I-103--
0
i. In paragraph (a), removing ``September 30, 2018'' and adding 
``September 30, 2024'' in its place;
0
ii. In paragraph (b) introductory text, removing ``prior to September 
30, 2021'' and adding ``through September 30, 2026'' in its place; and
0
iii. In paragraph (b)(3), removing ``cognizant Component Director, 
SBP,'' and adding ``Director, OSBP, of the cognizant military 
department or defense agency'' in its place.
0
e. In section I-104, revising paragraph (c).
0
f. In section I-105, revising paragraphs (a) and (c).
0
g. In section I-106--
0
i. In paragraph (d)(1)(i), removing ``marketing'' and adding 
``marketing and technology commercialization, compliance systems'' in 
its place;
0
ii. In paragraph (d)(1)(ii), removing ``quality assurance'' and adding 
``quality assurance; acquisition or transfer of hardware, tooling, or 
software; and technology transfer and transition'' in its place;
0
iii. In paragraph (d)(2), removing ``firmunder'' and adding ``firm 
under'' in its place;
0
iv. In paragraph (d)(4), removing ``Subpart'' and adding ``subpart'' in 
its place; and
0
v. Adding paragraph (g).
0
h. In section I-107--
0
i. In paragraph (a), removing ``email'' and adding ``email'' in its 
place;
0
ii. In paragraph (j), removing ``2 years'' and adding ``5 years'' in 
its place; and
0
iii. Revising paragraph (k).
0
i. In section I-108--
0
i. In paragraph (a) introductory text, removing ``DoD component'' and 
adding ``military department or defense agency'' in its place;
0
ii. In paragraph (a)(5), removing ``3 years (Term of agreements may not 
exceed 5 years)'' and adding ``2 years (agreements may not exceed 5 
years) (see I-107(k))'' in its place;
0
iii. In paragraph (a)(6), removing ``$1,000,000'' and adding ``$1 
million'' in its place;
0
iv. In paragraph (b), removing ``cognizant DoD components'' and adding 
``the military department or defense agency'' in its place;
0
v. In paragraph (c), removing ``cognizant Component Director, SBP, 
prior'' and adding ``Director, OSBP, of the military department or 
defense agency prior'' in its place;
0
vi. In paragraph (d), removing ``cognizant DoD component'' and adding 
``military department or defense agency'' in its place;
0
vii. In paragraph (e), removing ``component'' and ``Director, SBP'' and 
adding ``military department or defense agency'' and ``the Director, 
OSBP'' in their places, respectively; and
0
viii. In paragraph (f), removing ``cognizant Component Director, SBP,'' 
and adding ``Director, OSBP, of the military department or defense 
agency'' in its place.
0
j. In section I-109--
0
i. In the introductory text, removing ``agreements'' and adding 
``agreements including agreements that provide for both reimbursement 
and subcontracting credit'' in its place;
0
ii. In paragraph (c), removing ``Component Directors, SBP'' and adding 
``Directors, OSBP, of the military departments or defense agencies'' in 
its place; and
0
iii. In paragraph (d), removing ``$1,000,000'' and ``cognizant 
Component Director, SBP'' wherever they appear and adding ``$1 
million'' and ``Director, OSBP, of the military department or defense 
agency'' in their places, respectively.
0
k. In section I-110, adding introductory text.
0
l. In section I-110.1, at the end of the first sentence in paragraph 
(a), removing ``Plans .'' and adding ``Plans.'' in its place.
0
m. In section I-110.2, paragraphs (a) introductory text, (b) 
introductory text, and (c), removing ``SBP'' and adding ``OSBP'' in its 
place.
0
n. In section I-111--
0
i. In paragraph (a), removing ``cognizant Component Director, SBP,'' 
and ``administrative contracting officer'' and adding ``Director, OSBP, 
of the cognizant military department or defense agency'' and ``small 
business professional'' in their places, respectively; and
0
ii. Adding paragraph (f).
0
o. In section I-112.2--
0
i. In paragraph (a)(2)(xii)(A), removing ``success assistance'' and 
adding ``success developmental assistance'' in its place;
0
ii. In paragraph (a)(2)(xii)(B), removing ``contracts'' and adding 
``contracts, including but not limited to the transition of innovative 
technology into a program of record'' in its place;
0
iii. In paragraph (a)(4), removing ``at: https://www.acq.osd.mil/osbp/
sb/programs/mpp/resources.shtml'' and adding ``at https://business.defense.gov/Programs/Mentor-Prot[eacute]g[eacute]-Program/MPP-
Resources/'' in its place;
0
iv. In paragraph (b)(2), removing ``2 fiscal years'' and adding ``5 
fiscal years'' in its place;
0
v. In paragraph (d)(1), removing ``cognizant Component Director, SBP,'' 
and adding ``Director, OSBP, of the military department or defense 
agency'' in its place;
0
vi. In paragraph (d)(2), removing ``cognizant Component Director, 
SBP,'' and adding ``Director, OSBP, of the military department or 
defense agency,'' in its place; and
0
p. Revising section I-113.
0
q. Adding an authority citation at the end of the appendix.
    The revisions and additions read as follows:

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

I-100 Purpose

    (a) This appendix implements the Pilot Mentor-
Prot[eacute]g[eacute] Program (the Program) established under 
section 831 of the National Defense Authorization Act for Fiscal 
Year 1991 (Pub. L. 101-510; 10 U.S.C. 2302 note). The purpose of the 
Program is to provide incentives to major DoD contractors to furnish 
eligible small business concerns with assistance designed to--
* * * * *

[[Page 52351]]

    (c) * * *
    (3) An increase in prot[eacute]g[eacute] participation in DoD 
science and technology programs; and
    (4) An increase in job creation of prot[eacute]g[eacute] firms 
from the date of execution of the mentor-prot[eacute]g[eacute] 
agreement until 5 years after completion of the mentor-
prot[eacute]g[eacute] agreement.
* * * * *

I-101 Definitions

    As used in this appendix--
    Affiliation means, with respect to a relationship between a 
mentor firm and a prot[eacute]g[eacute] firm, a relationship 
described under 13 CFR 121.103.
    Eligible entity employing the severely disabled means a business 
entity operated on a for-profit or nonprofit basis that--
    (1) Uses rehabilitative engineering to provide employment 
opportunities for severely disabled individuals and integrates 
severely disabled individuals into its workforce;
    (2) Employs severely disabled individuals at a rate that 
averages not less than 20 percent of its total workforce;
    (3) Employs each severely disabled individual in its workforce 
generally on the basis of 40 hours per week; and
    (4) Pays not less than the minimum wage prescribed pursuant to 
section 6 of the Fair Labor Standards Act (29 U.S.C. 206) to those 
employees who are severely disabled individuals.
    Severely disabled individual means an individual who is blind or 
severely disabled as defined in 41 U.S.C. 8501.

I-102 Participant Eligibility

    (a) * * *
    (2) * * *
    (iv) Is an other than small business concern, unless approved by 
the Director of the Office of Small Business Programs (OSBP), Office 
of the Under Secretary of Defense, Acquisition and Sustainment 
(OUSD(A&S)), in accordance with 13 CFR 121.103 regarding 
``affiliation and relationship''; 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 a prime contractor to DoD with an active subcontracting 
plan; or
    (iii) Has graduated from the 8(a) Business Development Program 
and provides documentation of its ability to serve as a mentor.
* * * * *
    (h) Within 30 days of any change in status affecting 
eligibility, mentors and prot[eacute]g[eacute]s must give notice and 
explanation of pertinent facts to each other, the Director of OSBP, 
OUSD(A&S), and the Director, OSBP, of the military department or 
defense agency.
* * * * *

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

* * * * *
    (c) Any interested party may file a protest of the selection of 
a prot[eacute]g[eacute] firm directly with the Director, OSBP, 
OUSD(A&S) or the Director, OSBP, of the cognizant military 
department or defense agency. In the event of a protest regarding 
the size or status of an entity selected to be a 
prot[eacute]g[eacute] firm, the Director, OSBP, OUSD(A&S), or the 
Director, OSBP, of the military department or defense agency must 
refer the protest to the SBA to resolve in accordance with 13 CFR 
part 121 (with respect to size) or other parts of title 13 of the 
CFR or this appendix (with respect to the prot[eacute]g[eacute]'s 
socioeconomic status). The Director, OSBP, OUSD(A&S), or the 
Director, OSBP, of the military department or defense agency shall 
decide protests concerning all other aspects of a 
prot[eacute]g[eacute]'s eligibility for the Program (e.g., 
nontraditional defense contractor or entity employing the severely 
disabled).
* * * * *

I-105 Mentor Approval Process

    (a) An entity seeking to participate as a mentor must apply to 
the Mentor-Prot[eacute]g[eacute] Program Director, OSBP, OUSD(A&S), 
to establish its initial eligibility as a mentor.
* * * * *
    (c) A template of the mentor application is available at https://business.defense.gov/Programs/Mentor-Prot[eacute]g[eacute]-Program/
MPP-Resources/.
* * * * *

I-106 Development of Mentor-Prot[eacute]g[eacute] Agreements

* * * * *
    (g) The agreement shall demonstrate, through its execution, how 
it will contribute to the overall mission of DoD and/or fill or 
address an identified critical gap or vulnerability. Focus areas 
include, but are not limited to, manufacturing, research and 
development, and knowledge-based services.

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

* * * * *
    (k) A program participation term for the agreement that does not 
exceed 2 years. Requests for an extension of the agreement for a 
period not to exceed an additional 3 years are subject to the 
approval of the Director, OSBP, of the cognizant military department 
or defense agency. The justification must detail the unusual 
circumstances that warrant a term in excess of 2 years;
* * * * *

I-110 Credit Agreements

    Sections I-110.1 and I-110.2 apply to all credit agreements, 
including agreements that provide for both credit and reimbursement.
* * * * *

I-111 Agreement Terminations

* * * * *
    (f) The Director, OSBP, OUSD(A&S) or the Director, OSBP, of the 
military department or defense agency is authorized to terminate the 
mentor-prot[eacute]g[eacute] agreement for the convenience of the 
Government (to include national security grounds, funding limits, 
statutory requirements, or other considerations), as well as for 
cause upon written findings (e.g., either of the participants' 
failure to perform or provide adequate assurance of performance; 
failure to comply with laws, regulations, and policies; conflicts of 
interest; or default under any provisions of a DoD contract or 
agreement).
* * * * *

I-113 Performance Reviews

    DCMA will conduct annual performance reviews of the progress and 
accomplishments realized under approved mentor-prot[eacute]g[eacute] 
agreements. These reviews must verify data provided on the 
semiannual reports and must provide information as to--
    (a) Whether all costs reimbursed to the mentor firm under the 
agreement were reasonably incurred to furnish assistance to the 
prot[eacute]g[eacute] in accordance with the mentor-
prot[eacute]g[eacute] agreement and applicable regulations and 
procedures; and
    (b) Whether the mentor and prot[eacute]g[eacute] accurately 
reported progress made by the prot[eacute]g[eacute] in employment, 
revenues, and participation in DoD contracts during the Program 
participation term and for 5 fiscal years following the expiration 
of the Program participation term.

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
[FR Doc. 2022-18225 Filed 8-24-22; 8:45 am]
BILLING CODE 5001-06-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.