Attachment 10 - DoD Protege Pilot Initiative Procedure Guidelines 14Nov24.docx

Department of Defense Mentor-Protégé Program

Protégé Pilot Initiative Procedure Guidelines

Page 1 of 5 Revised 11/14/24

Page 1 of 5 Revised 11/14/24

INDEX

TITLE PAGE

I Introduction 3

II Eligibility Criteria 3

III Development Activities Covered 3

IV Reimbursements 4

V Application and Approval 4

VI Funding 4

VII Reporting Requirements 4

VIII Other 5

VIIII Attachments 5

Page 2 of 5 Revised 11/14/24

I. Introduction

The Department of Defense (DoD) Pilot Protégé Initiative (PPI) was established under Pub. L. 117-63, div. A, title VIII, §856 (d), Dec. 23, 2022, 136 Stat, 2726. This pilot initiative provides Proteges in DoD reimbursable agreements as of July 1, 2023, an opportunity to propose projects supporting the advancement of engineering, software development, or manufacturing customization in support of the War Fighter. Proposals are limited to a maximum of up to 25% of the annual budget of the respective reimbursable agreement. Successful applications will result in a Not to Exceed, Zero Fee line item added to the Mentor’s Agreement. The proposed amount will be used exclusively by the Protégé for the project.

II. Eligibility Criteria

a. To participate in the pilot initiative, a protégé firm must first meet the existing eligibility requirements for the DoD Mentor-Protégé Program. Additionally, the protégé firm must demonstrate the intent to develop capabilities that align with DoD program requirements essential for integration into DoD systems.

b. The mentor firm involved in the PPI must have a current approved Mentor-Protégé Agreement with the protégé firm and be eligible to receive reimbursement or credit under the existing Mentor-Protégé Program guidelines.

c. The MPA must be active and support developmental activities associated with engineering, software development, or manufacturing customization.

d. Any MPA that meets the criteria mentioned above is in good standing, has an acceptable annual performance review rating determined by DCMAs, and is actively performing a DoD MPA as of July 1, 2023, is eligible to be considered for the pilot program.

III. Developmental Activities Covered

a. The pilot initiative supports reimbursement for developmental activities related to engineering, software development, or manufacturing customization by the protégé firm. These activities must be directly related to supporting the technology developed by the protégé firm for integration into a DoD program or system.

b. The protégé firm will be responsible for identifying the activities to be evaluated individually, and the Component MPP PM and the DoD MPP Director will make the final determination.

i. Costs eligible for reimbursement under the pilot initiative shall be within the scope of the existing MPA between the mentor and protégé firms. All reimbursable expenses must be reasonable, allocable, and allowable under applicable Federal regulations and policies.

ii. Any management costs for the Mentor associated with managing this reimbursement should be identified and included in the overall MPA proposal costs (Management costs associated with this pilot shall not exceed 3% of the reimbursement). An additional fee will not be allowable on the other direct cost (ODC) contract line item (CLIN) associated with this reimbursement.

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IV. Reimbursement Amount

a. Under the PPI, a protégé firm may receive up to 25% of the reimbursement amount the mentor firm is eligible for under the approved MPA and MPP. Reimbursement eligibility will be determined based on the nature of the proposed development activities and the potential impact of technology on DoD programs or systems. This 25% is an additional cost to the total MPA and will NOT affect the amount of reimbursement approved and provided to the Mentor firm.

b. The protégé firm must diligently track and document the eligible expenses incurred by the protégé firm during the execution of the approved developmental activities and provide that information to the mentor firm monthly. Therefore, each agreement will have a separate CLIN available for this purpose.

c. These records must be maintained and made available as required by invoicing, contract reporting, audits, or upon request.

V. Application and Approval Process

a. To participate in PPI, mentor and protégé teams must submit a proposal outlining the specific development activities related to this reimbursement request. The proposal must demonstrate the strategic value and relevance of the technology being developed to the DoD program requirements and provide a detailed outline with defined work plans along with associated estimated reimbursement amounts and timelines for each item.

i. New agreements: the proposal is due at the time of submission of the agreement.

ii. Existing agreement: a proposal can be submitted to modify the existing agreement.

b. The Service/Agency Mentor-Protégé, Program Manager (PM), will evaluate and approve/disapprove the proposal. The cognizant Contracting Officer will review for reasonableness, allowability, and allocability. If approved, the determination will be forwarded to the DoD MPP Director for final approval, and applicants will be notified accordingly regarding the approval of the request for participation in the PPI.

VI. Funding Process

a. The Protégé through the Mentor, must submit a cost proposal (including a memorandum from the Mentor for their additional proposed cost with an explanation of use – not to exceed 3% of Protege cost) memorandum from the Mentor for their additional proposed cost with an explanation of use – not to exceed 3% of Protégé costs) Request the Service/Agency MP PM for review and approval. If approved, a funding action will be initiated through the DoD MPP Director, and funds for the approved amount will be provided.

VII. Reporting Requirements

a. Mentor firms participating in the pilot program must submit periodic progress reports detailing the status of the developmental activities, expenses incurred, and the impact on the protégé firm’s capabilities associated with the proposed reimbursement activities within the existing established reporting requirements. Activities under this effort will be included as part of all DCMA required reviews both during the MPA performance and after its completion.

b. The Director of the Office of Small Business Programs will conduct periodic reviews of the pilot program’s effectiveness and may request additional reports or data from participating mentor firms to assess its success in accordance with congressional inquiries.

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VIII. Other

a. The mentor has no liability regarding how the protégé uses the funding

b. The mentor will not be held responsible if the protégé fails to meet milestones after receiving funding.

c. The mentor will record and report the funding used in the monthly report.

d. The completion of milestones, tasks, and use of funds will be used to evaluate the protégé’s performance under the initiative.

e. The protégé’s use of the funding will not impact the mentor’s DCMA risk rating.

f. The protégé will be responsible for responding to DCMA annual review questions that align with the activities that align with the milestones and the use of funds under the pilot initiative.

g. Protégé data rights regarding the technology they are developing will not be affected by the funding they receive under this initiative.

h. The protégé is not responsible for providing the US government with a piece of technology upon completion of the MPA.

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