DATE: April 6, 2004

SUBJECT: Federal Acquisition Regulation (FAR); Delegation of Approval Authority for Mentor-Protege Agreements

SOURCE: Federal Register, April 6, 2004, Vol. 69, No. 66, page 18243

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that FAR 19.702, Statutory Requirements, be amended to change the approval authority of Mentor-Protege Agreements for the DOD.

DATES: Comments are due on or before June 7, 2004.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405, or by e-mail to farcase.2003-010@gsa.gov. Cite "FAR Case 2003-010" in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Rhonda Cundiff, 202-501-0044.

SUPPLEMENTAL INFORMATION: The Pilot Mentor-Protege Program was established under Section 831 of Public Law 101-510, the National Defense Authorization Act for Fiscal Year 1991. The purpose of the program is to provide incentives to major DOD contractors ("mentors") to enter into agreements with small "protege" firms to provide appropriate developmental assistance that will enhance the protege firm's ability to satisfy contract and subcontract requirements. In return, DOD may provide the mentor firm with either cost reimbursement or credit against applicable subcontracting goals established under contracts with DOD or other federal agencies.

Currently, the DOD Office of Small and Disadvantaged Business Utilization (OSDBU) manages the Mentor-Protege program for DOD. DOD is proposing to transfer the management of the Mentor-Protege program to the OSDBUs of the military departments and defense agencies. However, the DOD OSDBU will maintain oversight and policy development responsibilities.

To implement this change, FAR 19.702(d) would be amended to read as follows:

"(d) As authorized by 15 U.S.C. 637(d)(11), certain costs incurred by a mentor firm in providing developmental assistance to a protege firm under the Department of Defense Pilot Mentor-Protege Program, may be credited as if they were subcontract awards to a protege firm for the purpose of determining whether the mentor firm attains the applicable goals under any subcontracting plan entered into with any executive agency. However, the mentor-protege agreement must have been approved by the Director, Small and Disadvantaged Business Utilization of the cognizant DOD military department or defense agency before developmental assistance costs may be credited against subcontract goals. A list of approved agreements may be obtained at http://www.acq.osd.mil/sadbu/mentor_protege/ or by calling (703) 588-8631."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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