[Federal Register Volume 65, Number 160 (Thursday, August 17, 2000)]
[Rules and Regulations]
[Pages 50149-50150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20957]


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DEPARTMENT OF DEFENSE

48 CFR Part 219 and Appendix I to Chapter 2

[DFARS Case 99-D307]


Defense Federal Acquisition Regulation Supplement; Mentor-Protege 
Program Improvements

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has adopted as final, with 
changes, an interim rule amending the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement Section 811 of the National 
Defense Authorization Act for Fiscal Year 2000. Section 811 amends 
statutory provisions pertaining to the DoD Pilot Mentor-Protege 
Program.

EFFECTIVE DATE: August 17, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Susan L. Schneider, Defense 
Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326; 
telefax (703) 602-0350. Please cite DFARS Case 99-D307.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD published an interim rule at 65 FR 6554 on February 10, 2000. 
The rule amended policy on the Mentor-Protege Program in DFARS Subpart 
219.71 and Appendix I to implement Section 811 of The National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65). This final 
rule contains additional clarifying amendments, to include 
clarification that progress reports required from protege firms may be 
submitted as part of the mentor firm's annual report.
    Three sources submitted comments on the interim rule. DoD 
considered all comments in the development of the final rule.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the rule changes procedures for administering and monitoring 
the Mentor-Protege Program, but maintains the primary objective of 
providing incentives for major DoD contractors to assist small 
disadvantaged business concerns and qualified organizations employing 
the severely disabled in enhancing their capabilities to satisfy 
Government and commercial contract requirements.

C. Paperwork Reduction Act

    The Office of Management and Budget (OMB) has approved the 
information collection requirements contained in this rule, for use 
through July 31, 2003, under OMB Clearance Number 0704-0412.

[[Page 50150]]

List of Subjects in 48 CFR Part 219

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

Interim Rule Adopted as Final With Changes

    Accordingly, the interim rule amending 48 CFR Part 219 and Appendix 
I to Chapter 2, which was published at 65 FR 6554 on February 10, 2000, 
is adopted as a final rule with the following changes:
    1. The authority citation for 48 CFR Part 219 and Appendix I to 
Subchapter I continues to read as follows:

    Authority:  41 U.S.C. 421 and 38 CFR Chapter 1.

PART 219--SMALL BUSINESS PROGRAMS

    2. Section 219.7103-2 is amended as follows:
    a. In paragraph (e) introductory text by adding the word ``only'' 
before the word ``if'';
    b. By revising paragraph (f); and
    c. In paragraph (h) by removing the word ``Command'' and adding in 
its place the word ``Agency''. The revised text reads as follows:


219.7103-2  Contracting officer responsibilities.

* * * * *
    (f) Not authorize reimbursement for costs of assistance furnished 
to a protege firm in excess of $1,000,000 in a fiscal year unless a 
written determination from the Director, SADBU, OUSD (AT&L), is 
obtained.
* * * * *

    3. Section 219.7106 is revised to read as follows:


219.7106  Performance reviews.

    The Defense Contract Management Agency will conduct annual 
performance reviews of all mentor-protege agreements as indicated in 
Appendix I, Section I-112. The determinations made in these reviews 
should be a major factor in determinations of amounts of reimbursement, 
if any, that the mentor firm is eligible to receive in the remaining 
years of the Program participation term under the agreement.

Appendix I--Policy and Procedures for the DoD Pilot Mentor-Protege 
Program


I-100  [Amended]

    4. Section I-100 is amended in paragraph (c)(1) by removing the 
word ``protege'' and adding in its place the abbreviation ``SDB''.

    5. Section I-106 is amended as follows:
    a. By removing paragraph (c)(4);
    b. In paragraph (d) introductory text by revising the last 
sentence;
    c. In paragraph (d)(1) by removing the semicolon and adding a 
period in its place; and
    d. In paragraph (d)(2) by removing ``;or'' and adding a period in 
its place. The revised text reads as follows:


I-106  Approval process for companies to participate in the Program as 
mentor firms.

* * * * *
    (d) * * * The company must submit a justification and endorsement 
from the cognizant Director, SADBU, when requesting any of the 
following unusual actions:
* * * * *

    6. Section I-107 is amended as follows:
    a. By redesignating paragraphs (b)(4) through (b)(8) as paragraphs 
(b)(5) through (b)(9), respectively;
    b. By adding a new paragraph (b)(4); and
    c. By revising paragraph (c). The added and revised text reads as 
follows:


I-107  Mentor-protege agreements.

* * * * *
    (b) * * *
    (4) A statement from the protege firm indicating its commitment to 
comply with the requirements for reporting and for review of the 
agreement during the duration of the agreement and for 2 years 
thereafter;
* * * * *
    (c) Mentor firms must send a copy of any termination notices to the 
Director, SADBU, OUSD (AT&L), the cognizant Director, SADBU, and the 
Defense Contract Management Agency administrative contracting officer 
responsible for conducting the annual performance review, and, where 
funding is made available through a DoD program manager, must provide a 
copy to the program manager and to the contracting officer.
* * * * *

    7. Section I-111 is amended as follows:
    a. By revising paragraph (b);
    b. In paragraph (c)(1) by removing ``Command (DCMC)'' and adding in 
its place ``Agency (DCMA)''; and
    c. In paragraph (c)(2) by removing ``DCMC'' and adding in its place 
``DCMA'', and by removing ``program office'' and adding in its place 
``program manager''. The revised text reads as follows:


I-111  Reporting requirements.

* * * * *
    (b) The mentor firm and the protege firm--
    (1) Must provide data on the progress made by the protege firm in 
employment, revenues, and participation in DoD contracts during--
    (i) Each fiscal year of the Program participation term; and
    (ii) Each of the 2 fiscal years following the expiration of the 
Program participation term;
    (2) Must provide the data by October 31st of each year to address 
the prior fiscal year; and
    (3) During the Program participation term, may provide the data as 
part of the mentor report required by paragraph (a) of this section for 
the period ending September 30th.
* * * * *


I-112  [Amended]

    8. Section I-112 is amended as follows:
    a. In the first sentence of the introductory text by removing the 
word ``Command'' and adding in its place the word ``Agency'';
    b. In paragraph (a) by adding the word ``and'' after the semicolon;
    c. In paragraph (b) by removing ``agreement; and'' adding in its 
place ``Program participation term.''; and
    d. By removing paragraph (c).

[FR Doc. 00-20957 Filed 8-16-00; 8:45 am]
BILLING CODE 5000-04-M