Mentor_Protege_Program.pptx

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Business & Enterprise Systems Directorate

BES Small Business Director Ms. Denise Baylor Small Business Mentor-Protégé Program

Small Business Mentor-Protégé Program SBA has finalized its mentor-protégé program for all small businesses Final rule allows small businesses to obtain developmental assistance from larger mentors and form joint ventures with those mentors to pursue set-aside contracts New program name – “Small Business Mentor-Protégé Program” 13 C.F.R 125.9, entitled “What are the rules governing SBA’s small business mentor-protege program?” provides the framework

Small Business Mentor-Protégé Program purpose:

To enhance the capabilities of protégé firms by requiring mentors to provide business development assistance and to improve the protégé firms’ ability to successfully compete for federal contracts The assistance may include:

Technical and/or management assistance Financial assistance in the form of equity investments and/or loans Subcontracts (either from the mentor to the protégé or from the protégé to the mentor) Trade education And/or assistance in preforming prime contracts with the Gov through joint venture Mentors are encourage to provide assistance relating to the performance of contracts set aside or reserved for small business so that protégé firms may more fully develop their capabilities

Qualifications as Mentor:

Any concern that demonstrates a commitment and the ability to assist small business concerns may act as a mentor Mentors may be large or small businesses Mentor must demonstrate that is capable of meeting its commitments to the protégé SBA will evaluate the prospective mentor’s financial health A mentor must “possess good character” Mentor cannot appear of the government’s list of debarred or suspended contractors Once a mentor is approved, a mentor must “annually certify that it continues to possess good character and a favorable financial position.”

A mentor generally will have only one protégé at a time SBA my authorize a concern to mentor more than one protégé at a time where it can demonstrate that the additional mentor-protégé relationship will not adversely affect the development of either protégé “Three-protégé limit” is an aggregate of proteges under the small business mentor-protégé program and the separate 8(a) mentor-protégé program

SBA may authorize a small business to be both a protégé and a mentor at the same time where the firm can demonstrate that the second relationship will not compete with or otherwise conflict with the first mentor-protégé

Qualifications as Protégé A company must qualify as a small for the size standard corresponding to its primary NAICS code or identify that is seeking business development assistance with respect to a secondary NAICS code and qualify as small for the size standard corresponding to that NAICS code SBA will not approve a mentor-protégé relationship in a secondary NAICS code in which the firm has no prior experience A protégé ordinarily will have no more than one mentor at a time, although the SBA may approve a second mentor where certain conditions are met

Term of Mentor-Protégé A single mentor-protégé agreement may not exceed three years, but may be extended for a second three years Annual Reporting Small business protégés must make annual reports to SBA SBA will require the protégé to submit a final report after the mentor-protégé relationship has concluded If the protégé fails to submit the report, SBA will not approve a second mentor-protégé relationship, either under the small business mentor-protégé program or the 8(a) mentor-protégé program

Joint Venturing The small business mentor-protégé program allows the mentor and protégé to form a joint ventures and compete for any government prime contract or subcontract, provided the protégé qualifies as a small for the procurement Joint venture may seek any type of small business contract (i.e., small business set-aside, 8(a), HUBZone, SDVOS, or WOSB) for which the protégé firm qualifies

Joint Venturing The SBA must approve the joint venture agreement SBA exception – For contract with durations of more than five years (including options), a contract awarded to a joint venture between a protégé and mentor as a small business continues to qualify as an award to small business for the life of that contract and the joint venture remain obligated to continue performance on that contract For contracts with duration of more than five years, recertification will be required as provided in 13 C. F. R 124.404(g)(3)

Transfer of 8(a) Mentor-Protégé Agreements When a protégé graduates or otherwise leave the 8(a) Program, but continue to qualify as small, that protégé may transfer its 8(a) mentor-protégé relationship to a small business mentor-protégé relationship The mentor-protégé do not need to reapply, but inform SBA of the intent to transfer to the small business mentor-protégé program

Questions?

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