NASA Mentor-Protege Program

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1806, 1819, and 1852

NASA Mentor-Protege Program

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This is a final rule amending the NASA Federal Acquisition

Regulation (FAR) Supplement (NFS) to eliminate the pilot status of the

NASA Mentor-Protege Program and make it consistent with recent FAR

changes on evaluation of small disadvantaged business (SDB)

participation in acquisitions. Miscellaneous editorial revisions are

also made to the Mentor-Protege coverage. In addition, the rule makes

an internal administrative change to redesignate the competition

advocate for NASA Headquarters acquisitions.

DATES: This rule is effective March 5, 1999.

ADDRESSES: Tom O'Toole, Code HK, NASA Headquarters, 300 E Street, SW,

Washington, DC 20456-0001.

FOR FURTHER INFORMATION CONTACT: Tom O'Toole, (202) 358-0478, e-mail:

[email protected].

SUPPLEMENTARY INFORMATION:

Background

The NASA Mentor-Protege Program was established as a pilot program

in March 1995 to incentivize NASA prime contractors to provide

developmental assistance to SDB concerns, Historically Black Colleges

and Universities, minority institutions, and women-owned small business

concerns. The pilot program has proved successful, and the program will

continue indefinitely. However, the FAR has recently been revised to

specify the circumstances in which SDB participation may be evaluated

in Government acquisitions. Only those SDBs in Standard Industrial

Classification Major Groups as determined by the Department of Commerce

may be included in the evaluation. The NASA Mentor-Protege Program

addresses evaluation of SDBs, and changes are required to ensure

conformance with the FAR.

Impact

Regulatory Flexibility Act

This final rule does not constitute a significant revision within

the meaning of FAR 1.501 and Pub. L. 98-577, and publication for

comments is not required. However, comments from small entities

concerning the affected NFS coverage will be considered in accordance

with 5 U.S.C. 610. Such comments may be submitted separately and should

cite 5 U.S.C. 601, et seq.

Paperwork Reduction Act

The Paperwork reduction Act does not apply because the changes to

the NFS do not impose recordkeeping or information collection

requirements, or collections of information from offerors, contractors,

or members of the public which require the approval of the Office of

Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 1806, 1819, and 1852

Government procurement.

Tom Luedtke,

Acting Associate Administrator for Procurement.

Accordingly, 48 CFR Parts 1806, 1819, and 1852 are amended as

follows:

1. The authority citation for 48 CFR Parts 1806, 1819, and 1852

continues to read as follows:

Authority: 42 U.S.C. 2473(c)(1).

PART 1806--COMPETITION REQUIREMENTS

2. In section 1806.501, paragraph (3) is revised to read as

follows:

1806.501 Requirement.

* * * * *

(3) The Headquarters Chief Financial Officer, Code CF, is the

competition advocate for the Headquarters contracting activity.

* * * * *

PART 1819--SMALL BUSINESS PROGRAMS

3. Section 1819.7201 is revised to read as follows:

Sec. 1819.7201 Scope of subpart.

The NASA Mentor-Protege Program is designed to incentivize NASA

prime contractors to assist small disadvantaged business (SDB)

concerns, Historically Black Colleges and Universities (HBCUs),

minority institutions (MIs), and women-owned small business (WOSB)

concerns, in enhancing their capabilities to perform NASA contracts and

subcontracts, foster the establishment of long-term business

relationships between these entities and NASA prime contractors, and

increase the overall number of these entities that receive NASA

contract and subcontract awards.

4. In section 1819.7205, paragraphs (c) and (d) are removed, and

paragraph (b) is revised to read as follows:

Sec. 1819.7205 General policy.

* * * * *

(b) The Mentor-Protege program may be used in cost reimbursement

type contracts and contracts that include an award fee incentive. Costs

incurred by a mentor to provide the developmental assistance described

in 1819.7214 are allowable. Except for cost-plus-award-fee contracts,

such proposed costs shall not be included in the cost base used to

develop a fee objective or to negotiate fee. On contracts with an award

fee incentive, a contractor's Mentor-Protege efforts shall be evaluated

under the award fee evaluations.

5. Section 1819.7206 is revised to read as follows:

Sec. 1819.7206 Incentives for prime contractor participation.

(a) Proposed mentor-protege efforts, except for the extent of

participation of proteges as subcontractors, shall be evaluated under

the Mission Suitability factor as a subfactor or element. The

participation of SDB proteges as subcontractors shall be evaluated

separately as a Mission Suitability subfactor (see FAR 15.304(c)(4) and

19.1202). The participation of other categories of proteges as

subcontractors may be evaluated separately as part of the evaluation of

proposed subcontracted efforts.

(b) Under contracts with award fee incentives, approved mentor

firms shall be eligible to earn award fee associated with their

performance as a mentor by performance evaluation period. For purposes

of earning award fee, the mentor firm's performance shall be evaluated

against the criteria described in the clause at 1852.219-79, Mentor

Requirements and Evaluation. This award fee evaluation shall not

include assessment of the contractor's achievement of FAR 52.219-9

subcontracting plan SDB goals or proposed monetary targets for SDB

subcontracting (see FAR 19.1203).

6. In section 1819.7209, paragraphs (a)(1) and (b) are revised to

read as follows:

Sec. 1819.7209 Protege firms.

(a) * * *

(1) An SDB in the SIC Major Groups as determined by the Department

of

[[Page 10572]]

Commerce (see FAR 19.201(b)), HBCU, MI, or WOSB;

* * * * *

(b) Except for SDBs, a protege firm may self-certify to a mentor

firm that it meets the requirements set forth in paragraph (a) of this

section. Mentors may rely in good faith on written representations by

potential proteges that they meet the specified eligibility

requirements. SDB status eligibility and documentation requirements are

determined according to FAR 19.304.

* * * * *

7. In section 1819.7210, paragraph (d) is removed and paragraph (c)

is revised to read as follows:

Sec. 1819.7210 Selection of protege firms.

* * * * *

(c) The selection of protege firms by mentor firms may not be

protested, except for a protest regarding the size or eligibility

status of an entity selected by a mentor to be a protege. Such protests

shall be handled in accordance with FAR 19.703(b). The contracting

officer shall notify the Headquarters Office of Small and Disadvantaged

Business Utilization (OSDBU) (Code K) of the protest.

8. In section 1819.7214, paragraph (i) is removed and paragraphs

(e), (g), and (h) are revised to read as follows:

Sec. 1819.7214 Developmental assistance.

* * * * *

(e) Advance payments. While a mentor can make advance payments to

its proteges who are performing as subcontractors, the mentor will only

be reimbursed by NASA for these costs if advance payments have been

authorized in accordance with 1832.409-170;

* * * * *

(g) Rent-free use of facilities and/or equipment; and

(h) Temporary assignment of personnel to the protege for purpose of

training.

9. In section 1819.7215, paragraph (b) is revised to read as

follows:

Sec. 1819.7215 Obligation.

* * * * *

(b) Mentor and protege firms will submit a ``lessons learned''

evaluation to the NASA OSDBU at the conclusion of each NASA contract

subject to the approved Mentor-Protege agreement.

10. In section 1819.7216, paragraphs (a)(2), (a)(3), and (b) are

revised to read as follows:

Sec. 1819.7216 Internal controls.

(a) * * *

(2) Reviewing any semi-annual progress reports submitted by mentors

and proteges on protege development to measure protege progress against

the master plan contained in the approved agreement.

(3) Site visits to NASA installation where mentor-protege activity

is occurring.

(b) NASA may terminate mentor-protege agreements for good cause and

exclude mentor or protege firms from participating in the NASA program.

These actions shall be approved by the NASA OSDBU. NASA shall terminate

an agreement by delivering to the contractor a Notice specifying the

reason for termination and the effective date. Termination of an

agreement does not constitute a termination of the subcontract between

the mentor and the protege. A plan for accomplishing the subcontract

effort should the agreement be terminated shall be submitted with the

agreement as required in NFS 1819.7213(h).

11. In section 1819.7217, paragraph (c) is revised to read as

follows:

Sec. 1819.7217 Reports.

* * * * *

(c) The NASA technical program manager shall include an assessment

of the prime contractor's (mentor's) performance in the Mentor-Protege

Program in a quarterly `Strengths and Weaknesses' evaluation report. A

copy of this assessment will be provided to the OSDBU and the

contracting officer.

* * * * *

12. In section 1819.7219, paragraph (a) is revised to read as

follows:

Sec. 1819.7219 Solicitation provision and contract clauses.

(a) The contracting officer shall insert the clause at 1852.219-77,

NASA Mentor-Protege Program, in:

(1) Cost reimbursement solicitations and contracts, or

solicitations and contracts with award fee incentives, that include the

clause at FAR 52.219-9, Small Business Subcontracting Plan;

(2) Small business set-asides of the contract types in (a)(1) of

this section with values exceeding $500,000 ($1,000,000 for

construction) that offer subcontracting opportunities.

* * * * *

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

13. In the clause to section 1852.219-77, paragraphs (a), (b)

introductory text, and (b)(4) are revised to read as follows:

1852.219-77 NASA Mentor-Protege program.

* * * * *

NASA Mentor-Protege Program (March 1999)

(a) Prime contractors, including certain small businesses, are

encouraged to participate in the NASA Mentor-Protege Program for the

purpose of providing developmental assistance to eligible protege

entities to enhance their capabilities and increase their

participation in NASA contracts.

(b) The Program consists of:

* * * * *

(4) In contracts with award fee incentives, potential for

payment of additional fee for voluntary participation and successful

performance in the Mentor-Protege Program.

* * * * *

14. In the clause to section 1852.219-79, paragraphs (b)

introductory text, (e), and (f) are revised to read as follows:

1852.219-79 Mentor requirements and evaluation.

* * * * *

Mentor Requirements and Evaluation (March 1999)

* * * * *

(b) NASA will evaluate the contractor's performance on the

following factors. If this contract includes an award fee incentive,

this assessment will be accomplished as part of the fee evaluation

process.

* * * * *

(e) Mentor and protege firms will submit a ``lessons learned''

evaluation to the NASA OSDBU at the conclusion of the contract. At

the end of each year in the Mentor-Protege Program, the mentor and

protege, as appropriate, will formally brief the NASA Mentor-Protege

program manager, the technical program manager, and the contracting

officer during a formal program review regarding Program

accomplishments as pertains to the approved agreement.

(f) NASA may terminate mentor-protege agreements for good cause

and exclude mentor or protege firms from participating in the NASA

program. These actions shall be approved by the NASA OSDBU. NASA

shall terminate an agreement by delivering to the contractor a

Notice specifying the reason for termination and the effective date.

Termination of an agreement does not constitute a termination of the

subcontract between the mentor and the protege. A plan for

accomplishing the subcontract effort should the agreement be

terminated shall be submitted with the agreement as required in NFS

1819.7213(h).

(End of clause)

[FR Doc. 99-5483 Filed 3-4-99; 8:45 am]

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