NASA Federal Acquisition Regulation Supplement: NASA Mentor-Protégé Program, 9421-9425 [2023-02468]

Agencies

• National Aeronautics and Space Administration

[Federal Register Volume 88, Number 30 (Tuesday, February 14, 2023)]
[Proposed Rules]
[Pages 9421-9425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02468]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1819 and 1852

RIN 2700-AE38


NASA Federal Acquisition Regulation Supplement: NASA Mentor-
Prot[eacute]g[eacute] Program

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: NASA is proposing to amend the NASA Federal Acquisition 
Regulation Supplement (NFS) to reflect updates to NASA's Mentor 
Prot[eacute]g[eacute] Program (MPP) including: the requirement of Small 
Business Specialists' concurrence on the signed letter of endorsement; 
requirements associated with credit received towards subcontracting 
goals; the change of the MPP reporting requirement from semi-annually 
to annually; identified the NASA Mentor Prot[eacute]g[eacute] Program 
Office; and clerical, semantic improvements. NASA also proposes to 
amend the NFS language to reflect the annual negotiation of its small 
business percentage goals. Lastly, the NFS will be amended to emphasize 
collaboration amongst representatives from the Office of Small Business 
Programs, Office of Procurement, and Program Offices to reduce barriers 
to entry and to opportunities for all small business concerns and 
Historically Black Colleges and Universities or Minority Institutions.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before April 17, 2023, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by NFS Case 2022-N018, Mentor 
Prot[eacute]g[eacute] Program using any of the following methods:
    [cir] Regulations.gov: https://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``NFS Case 2022-N018'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``NFS Case 
2022-N018'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``NFS Case 2022-N018'' on your attached document.
    [cir] Email: [email protected]. Include NFS Case 2022-N018 in 
the subject line of the message.
    [cir] Mail: National Aeronautics and Space Administration, 
Headquarters, Office of Procurement Management and Policy Division, 
Attn: Todd Lacks, LP-011, 300 E Street SW, Washington, DC 20546-0001.

FOR FURTHER INFORMATION CONTACT: R. Todd Lacks, NASA HQ, Office of 
Procurement Management and Policy Division, LP-011, 300 E Street SW, 
Washington, DC 20456-0001. Telephone 202-358-0799 and; facsimile 202-
358-3082.

SUPPLEMENTARY INFORMATION: 

I. Background

    NASA is proposing to revise the NFS to add new text that: requires 
concurrence of the Small Business Specialist on the signed letter of 
endorsement for the MPP; adds requirements associated with credit 
received towards subcontracting goals; changes the reporting 
requirement from semi-annually to annually; and makes clerical and 
other semantic improvements.

II. Discussion

    NFS parts 1819, Small Business Programs, and 1852, Solicitation 
Provisions and Contract Clauses, are being revised to add language to

[[Page 9422]]

implement updates to NASA's MPP at the request of the program's 
administering office, NASA's Office of Small Business Programs (OSBP).

III. Applicability to Commercial Item Acquisitions, Including 
Commercially Available Off-the-Shelf (COTS) Items, and Acquisitions 
Below the Simplified Acquisition Threshold (SAT)

    The objective of this proposed rule is to implement updates to 
NASA's MPP. Subpart 1819.72 does not limit the application of the 
program requirements to non-commercial contracts or contracts above the 
simplified acquisition threshold. Consistent with 41 U.S.C. 1905, 1906 
and 1907, the NASA Assistant Administrator for Procurement has 
determined that it is in the best interest of NASA to apply this policy 
change to the acquisition of commercial items, including COTS items, 
and those requirements below the SAT.

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 as defined in E.O. 12866 
and therefore, was not subject to review under section 6(b) of E.O. 
12866, Regulatory Planning and Review, dated September 30, 1993.

V. Regulatory Flexibility Act

    NASA does not expect this proposed rule to have a significant 
economic impact on small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq. An initial regulatory flexibility 
analysis has been prepared and is summarized below.
    The proposed rule will apply to all current and future participants 
of the MPP. While the proposed rule will apply to all classes of small 
business, it will not necessarily affect all those businesses because 
the proposed rule only applies to those that are a part of the MPP. As 
reported by NASA's OSBP, NASA has entered 6, 1 and 3 mentor 
prot[eacute]g[eacute] agreements in 2018, 2019 and 2020, respectively. 
Therefore, this policy will have minimal impact on small businesses at 
large.
    NASA invites comments from small business concerns and other 
interested parties on the expected impact of this proposed rule on 
small entities.

VI. Paperwork Reduction Act

    This proposed rule contains information collection requirements 
requiring the approval of the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act (44 U.S.C. chapter 35). As part of 
this proposed rule, NASA is also requesting comments on the 
reinstatement with change of a collection, OMB 2700-008, NASA Mentor-
Prot[eacute]g[eacute] Program Small Business and Small Disadvantaged 
Business Concerns Report.
    NASA, in coordination with its Office of Small Business Programs, 
initiated this proposed rule and is proposing to reinstate this 
collection to decrease the collection requirement from semi-annual to 
annual. NASA conducts semi-annual Mentor Prot[eacute]g[eacute] 
performance reviews, which are more effective in tracking milestones 
over the life of the agreement than the submission of semi-annual 
reports. This change will reduce the reporting requirement on small 
businesses from semi-annual to annual and still capture necessary 
information from the semi-annual performance reviews.
    Methods of Collection: NASA uses electronic methods to collect 
information from collection respondents.

Data

    Title: NASA Mentor-Prot[eacute]g[eacute] Program.
    OMB Number: 2700-0078.
    Type of Review: Reinstatement with change.
    Affected Public: Small Businesses.
    Estimated Annual Number of Activities: 1.
    Estimated Number of Respondents per Activity: 10.
    Annual Responses: 10.
    Estimated Time per Response: 1.5 hrs.
    Estimated Total Annual Burden Hours: 15.
    Estimated Total Annual Cost: $0.

IV. Request for Comments

    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
NASA, including whether the information collected has practical 
utility; (2) the accuracy of NASA's estimate of the burden (including 
hours and cost) of the proposed collection of information; (3) ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and (4) ways to minimize the burden of the collection of 
information on respondents, including automated collection techniques 
or the use of other forms of information technology. Comments submitted 
in response to this document will be summarized and included in the 
request for OMB approval of this information collection. They will also 
become a matter of public record.

List of Subjects in 48 CFR Parts 1819 and 1852

    Government procurement.

Erica Jones,
NASA FAR Supplement Manager.

    Accordingly, NASA proposes to amend 48 CFR parts 1819 and 1852 as 
follows:

0
1. The authority citation for parts 1819 and 1852 continue to read as 
follows:

    Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.

PART 1819--SMALL BUSINESS PROGRAMS

Subpart 1819.2--Policies

0
2. Amend section 1819.201 by revising the section heading and paragraph 
(a)(ii) to read as follows:


1819.201  General policy.

    (a) * * *
    (ii) NASA annually negotiates Agency small business prime and 
subcontracting goals with the Small Business Administration pursuant to 
section 15(g) of the Small Business Act (15 U.S.C. 644). In addition, 
representatives from the Office of Small Business Programs, Office of 
Procurement, and Program Offices will collaborate to reduce barriers to 
entry and to opportunities for small business concerns, identified in 
paragraph (a)(i) of this section, and Historically Black Colleges and 
Universities or Minority Institutions.

Subpart 1819.72--NASA Mentor-Prot[eacute]g[eacute] Program

0
3. Amend section 1819.7201 by:
0
a. Revising paragraph (a) introductory text; and
0
b. In paragraph (b), adding the acronym ``(MPA)'' after the words 
``mentor-prot[eacute]g[eacute] agreements''.
    The revision reads as follows:


1819.7201  Scope of subpart.

    (a) This subpart implements the NASA Mentor-Prot[eacute]g[eacute] 
Program (hereafter referred to as the Program) as authorized by the 
Small Business Administration in accordance with 13

[[Page 9423]]

CFR 125.10. The purpose of the program is to:
* * * * *
0
4. Amend section 1819.7202 by revising paragraphs (a) and (b) to read 
as follows:


1819.7202  Eligibility.

    (a) To be eligible as a mentor, an entity must be--
    (1) A large business prime contractor or research institution 
performing with at least one approved subcontracting plan (other than a 
commercial plan) negotiated with NASA, pursuant to FAR subpart 19.7. A 
contractor may apply to become a mentor if they currently are not 
performing under a NASA contract, as long as they are currently 
performing another Federal agency contract with an approved 
subcontracting plan. However, the NASA MPA will not be approved until 
the mentor company is performing under a NASA contract with an approved 
subcontracting plan.
    (2) Eligible for receipt of Government contracts. An entity will 
not be approved for participation in the program if, at the time of 
submission of the application to the NASA Mentor Prot[eacute]g[eacute] 
Program Office (MPPO), the entity is debarred or suspended from 
contracting with the Federal Government pursuant to FAR subpart 9.4.
    (b) To be eligible to participate as a prot[eacute]g[eacute], an 
entity must be eligible for award of Federal contracts in accordance 
with FAR subpart 9.4, i.e., entities cannot be suspended or debarred at 
the time of application for the program and must be classified as one 
of more of the following entities or socio-economic categories as 
defined by FAR part 2:
    (1) Small disadvantaged business;
    (2) Women-owned small or economically disadvantaged women-owned 
concern;
    (3) Veteran-owned or service-disabled veteran-owned small business 
concern;
    (4) Historically underutilized business zone concern;
    (5) Historically Black College and University or Minority-Serving 
Institution;
    (6) Current NASA Small Business Innovation Research (SBIR)/Small 
Business Technology Transfer (STTR) Phase II Company; or
    (7) An entity participating in the AbilityOne Program.
* * * * *
0
5. Revise section 1819.7203 to read as follows:


1819.7203  Mentor-prot[eacute]g[eacute] advanced payments.

    If advance payments are contemplated, the mentor must first have 
the advance payments approved by the contracting officer in accordance 
with FAR subpart 32.4.
0
6. Amend section 1819.7204 by:
0
a. Revising paragraph (a) introductory text and (a)(1) and (3);
0
b. Removing paragraph (a)(4);
0
c. Redesignating paragraph (a)(5) as paragraph (a)(4);
0
d. Removing paragraph (c);
0
e. Redesignating paragraph (b) as paragraph (c); and
0
e. Adding a new paragraph (b).
    The revisions and addition read as follows:


1819.7204  Agreement submission and approval process.

    (a) To participate in the Program, entities approved as mentors, 
will submit a complete agreement package to the contracting officer, 
contracting officer's representative (COR), and the cognizant Small 
Business Specialist (SBS) at the NASA Center. The submission package 
must include the following:
    (1) A signed MPA;
* * * * *
    (3) The estimated cost of the developmental assistance to be 
provided, broken out per year and per task, in a separate cost volume; 
and
* * * * *
    (b) The NASA MPPO may require additional information as requested 
upon agreement submission.
* * * * *
0
7. Amend section 1819.7205 by:
0
a. Revising the section heading and paragraph (a);
0
b. Removing paragraph (c)(4);
0
c. Redesignating paragraphs (c)(5) and (6) as paragraphs (c)(4) and 
(5); and
0
d. Revising paragraph (d).
    The revisions read as follows:


1819.7205  Award Fee Program.

    (a) Mentors may be eligible to earn a separate award fee associated 
with the provision of developmental assistance to NASA SBIR/STTR Phase 
II Prot[eacute]g[eacute]s only. The award fee will be assessed at each 
award fee determination period.
* * * * *
    (d) The Award Fee Program is an addition to the credit agreement, 
reference 1819.7206. Participants that are eligible for award fee may 
also receive credit under their individual contract's award fee plan.
0
8. Add section 1819.7206 to read as follows:


1819.7206  Credit agreement.

    In a MPA (as referenced in section 6 ``Agreements'' of the MPP 
Guidebook), a mentor receives credit toward its subcontracting goals. 
The credit agreement only applies to mentors with an Individual 
Subcontract Plan.
    (a) Costs incurred under a credit agreement are applied on a one-
to-one basis toward applicable subcontracting goals, under a Federal 
agency subcontracting plan (FAR subpart 19.7).
    (b) The credit is reported on the mentor's individual 
subcontracting report (ISR) in the comments section twice a year and in 
the Summary Subcontract Report (SSR) once a year. The MPPO will verify 
the dollars contained in the annual reports.
0
9. Amend section 1819.7212 by revising paragraphs (a), (b), (c) 
introductory text, and (d) through (g) to read as follows:


1819.7212  Reporting requirements.

    (a) Mentors must report on the progress made under active MPA 
annually throughout the term of the agreement.
    (b) Reports are due 30 days after the end of each 12-month period 
of performance commencing with the start of the agreement.
    (c) Each annual report must include the following data on 
performance under the MPA:
* * * * *
    (d) Annually the prot[eacute]g[eacute] must provide an 
independently developed progress report using the annual report 
template, on the progress made during the prior twelve months by the 
prot[eacute]g[eacute] in employment, revenues, and participation in 
NASA contracts during each year of the Program participation term. The 
prot[eacute]g[eacute] must also provide an additional post-agreement 
report for each of the two years following the expiration of the 
Program participation term.
    (e) The prot[eacute]g[eacute] annual report required by paragraph 
(d) of this section must be submitted separately from the mentor's 
annual report submission.
    (f) Reports for all agreements must be submitted to the NASA Mentor 
Prot[eacute]g[eacute] Program Manager, the mentor's cognizant 
administrative Contracting Officer, and their Small Business 
Specialist.
    (g) Templates for the annual report and the Post-Agreement report 
and guidance for their submission are available at: https://www.nasa.gov/osbp/mentor-protege-program.
0
10. Add section 1819.7213 to read as follows:

[[Page 9424]]

1819.7213  Reporting allowances.

    The mentor may include its developmental expenditures from the 
annual report, reference 1819.7212, in its reported dollars in its 
Summary Subcontracting Report (SSR) in the Electronic Subcontracting 
Reporting System (eSRS).
    (a) If the prot[eacute]g[eacute] is also the mentor's immediate 
next-tier subcontractor under a NASA contract that contains a 
subcontracting plan, the mentor may also include its developmental 
expenditures in its Individual Subcontracting Report (ISR) for that 
contract. Expenditures may be applied to each socio-economic 
subcategory on the SSR and ISR for which the prot[eacute]g[eacute] 
qualifies.
    (b) Developmental expenditures included in SSR's and ISR's must 
also be separately reported and explained (including the actual dollar 
amount) in the ``Remarks'' section of each report.
    (c) Expenditures for AbilityOne prot[eacute]g[eacute]s cannot be 
included in SSR's or ISR's since there is no such reporting category 
for SSR's or ISR's.
0
11. Amend section 1819.7215 by revising paragraph (a) to read as 
follows:


1819.7215  Solicitation provision and contract clauses.

    (a) The contracting officer shall insert the clause at 1852.219-77, 
NASA Mentor-Prot[eacute]g[eacute] Program, in any contract that 
includes the clause at FAR 52.219-9, Small Business Subcontracting 
Plan.
* * * * *

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. Amend section 1852.219-77 by revising the date of the clause and 
paragraphs (b) through (d) to read as follows:


1852.219-77  NASA Mentor-Prot[eacute]g[eacute] Program.

* * * * *
    NASA Mentor-Prot[eacute]g[eacute] Program (Abbreviated Month and 
Year of Publication in The Federal Register)
* * * * *
    (b) The Program consists of--
    (1) Mentors, which are large business prime or research institution 
with at least one approved NASA subcontracting plan;
    (2) Prot[eacute]g[eacute]s, which qualify as one or more of the 
following:
    (i) Small Business Concern, as defined in FAR part 2, Definitions 
of Parts and Terms, including: Women-Owned or Economically-Owned 
Concern; Veteran-Owned or Service-Disabled Veteran-Owned Small Business 
Concern; Historically Underutilized Business Zone Concern;
    (ii) Historically Black College and University or Minority-Serving 
Institution;
    (iii) Current NASA SBIR/STTR Phase II Company; or
    (iv) An Entity Participating in the AbilityOne Program;
    (3) MPA endorsed by the cognizant NASA centers and approved by the 
NASA MPPO; and
    (4) In contracts with award fee incentives, potential for payment 
of an award fee for voluntary participation and successful performance 
in the Mentor-Prot[eacute]g[eacute] Program, in accordance with NFS 
1819.7205.
    (c) Mentor participation in the program, described in NFS 1819.72, 
means providing technical, managerial and financial assistance to aid 
prot[eacute]g[eacute]s in developing requisite high-tech expertise and 
business systems to compete for and successfully perform NASA, as well 
as other Federal and commercial contracts and subcontracts.
    (d) Eligible businesses and research institutions interested in 
participating in the program are encouraged to contact the NASA MPPO.
* * * * *
0
13. Amend section 1852.219-79 by:
0
a. Revising the date of the clause and paragraph (a);
0
b. Removing the undesignated text following paragraph (a);
0
c. Redesignating paragraphs (b) through (f) as paragraphs (c) through 
(g);
0
d. Adding a new paragraph (b);
0
e. Revising newly redesignated paragraphs (c) introductory text and 
(c)(3) and (4);
0
f. Removing newly redesignated paragraph (c)(5); and
0
g. Revising newly redesignated paragraphs (d) through (g).
    The revisions and addition read as follows:


1852.219-79  Mentor requirements and evaluation.

* * * * *

Mentor Requirements and Evaluation (Abbreviated Month and Year of 
Publication in the Federal Register)

    (a) The purpose of the NASA Mentor-Prot[eacute]g[eacute] Program is 
for a NASA prime contractor to provide developmental assistance to:
    (1) Provide incentives to NASA contractors, performing under at 
least one active approved subcontracting plan negotiated with NASA to 
assist prot[eacute]g[eacute]s in enhancing their capabilities to 
perform as viable NASA, other Government, and commercial suppliers on 
contract and subcontract requirements;
    (2) Increase the overall participation of prot[eacute]g[eacute]s as 
subcontractors and suppliers under NASA contracts, other Federal agency 
contracts, and commercial contracts; and
    (3) Foster the establishment of long-term business relationships 
between prot[eacute]g[eacute]s and mentors.
    (b) The Mentor shall comply with the annual reporting requirements 
detailed in NASA FAR Supplement 1819.7212.
    (c) NASA will evaluate the Mentor's performance on the following 
factors in the subcontracting element of the annual Contractor 
Performance Assessment Report (CPAR). If this contract includes an 
award fee incentive, this evaluation will also be included as part of 
the subcontracting element in the award fee evaluation process.
* * * * *
    (3) The extent to which the mentor and prot[eacute]g[eacute] have 
met the developmental milestones outlined in the agreement; and
    (4) The extent to which the mentor has contributed to advancing the 
prot[eacute]g[eacute]'s technical readiness level. This factor only 
applies if the prot[eacute]g[eacute] is a current NASA SBIR/STTR Phase 
II contractor.
    (d) Annual reports shall be submitted by the Mentor and the 
Prot[eacute]g[eacute] to the MPPO, following the annual report template 
found on the website at www.nasa.gov/osbp.
    (1) Except for as noted in paragraph (d)(4) of this section, the 
Mentor may include its developmental expenditures from the annual 
report, reference 1819.7212, Reporting Requirements, in its reported 
dollars in its Summary Subcontracting Report (SSR) in eSRS.
    (2) If the prot[eacute]g[eacute] is also the mentor's immediate 
next-tier subcontractor under a NASA contract that contains a 
subcontracting plan, the Mentor may also include its developmental 
expenditures in its Individual Subcontracting Report (ISR) for that 
contract. Expenditures may be applied to each socio-economic 
subcategory on the SSR and ISR for which the prot[eacute]g[eacute] 
qualifies.
    (3) Developmental expenditures included in SSR's and ISR's must 
also be separately reported and explained (including the actual dollar 
amount) in the ``Remarks'' section of each report.
    (4) Expenditures for AbilityOne prot[eacute]g[eacute]s cannot be 
included in SSR's or ISR's, since there is no such reporting category 
for SSR's or ISR's.
    (e) The mentor will notify the cognizant NASA center and NASA OSBP 
in writing, at least 30 days in advance of the Mentor's intent to

[[Page 9425]]

voluntarily withdraw from the program or upon receipt of a 
prot[eacute]g[eacute]'s notice to withdraw from the Program.
    (f) Every six months, the Mentor and Prot[eacute]g[eacute], as 
appropriate, will formally brief the MPPO, and the contracting officer 
during a formal program review regarding program accomplishments, as it 
pertains to the approved agreement.
    (g) NASA may terminate MPA for good cause, thereby excluding 
mentors or prot[eacute]g[eacute]s from participating in the program. 
These actions shall be approved by the MPPO. NASA shall terminate an 
agreement by delivering to the contractor a letter specifying the 
reason for termination and the effective date. Termination of an 
agreement does not constitute a termination of the subcontract between 
the mentor and the prot[eacute]g[eacute]. A plan for accomplishing the 
subcontract effort should the agreement be terminated shall be 
submitted with the agreement.
* * * * *
[FR Doc. 2023-02468 Filed 2-13-23; 8:45 am]
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