[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 861 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 861
To enhance small business access to Federal contracting opportunities
and provide technical advice and support that small businesses need to
perform contracts awarded to them, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 10, 2001
Mr. Bond introduced the following bill; which was read twice and
referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To enhance small business access to Federal contracting opportunities
and provide technical advice and support that small businesses need to
perform contracts awarded to them, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Governmentwide Mentor-Protege
Program Act of 2001''.
SEC. 2. MENTOR-PROTEGE PROGRAM.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 36 as section 37; and
(2) by inserting after section 35 the following:
``SEC. 36. MENTOR-PROTEGE PROGRAM.
``(a) Establishment of Program.--The Administrator shall establish
a Program to be known as the `Governmentwide Mentor-Protege Program'.
``(b) Purposes.--The purposes of the Program are to provide--
``(1) incentives for major Federal contractors to assist
eligible small business concerns to enhance the capabilities of
eligible small business concerns to perform as subcontractors
and suppliers under Federal contracts in order to increase the
participation of eligible small business concerns as
subcontractors and suppliers under those contracts; and
``(2) Governmentwide criteria for partial reimbursement of
certain agency costs incurred in the administration of the
Program.
``(c) Program Participants.--
``(1) Mentor firms.--A mentor firm may enter into
agreements under subsection (e) and furnish assistance to
eligible small business concerns upon making application to the
head of the agency for which it is contracting and being
approved for participation in the Program by the head of the
agency.
``(2) Eligible small business concerns.--
``(A) In general.--An eligible small business
concern may obtain assistance from a mentor firm upon
entering into an agreement with the mentor firm to
become a protege firm, as provided in subsection (e).
``(B) Restriction.--A protege firm may not be a
party to more than one agreement to receive assistance
described in subparagraph (A) at any time.
``(3) Certification.--
``(A) In general.--Before receiving assistance from
a mentor firm under this section, a small business
concern shall furnish to the mentor firm--
``(i) if the Administration regularly
issues certifications of qualification for the
category of that small business concern listed
in subsection (k)(1), that certification; and
``(ii) if the Administration does not
regularly issue certifications of qualification
for the category of that small business concern
listed in subsection (k)(1), a statement
indicating that it is an eligible small
business concern.
``(B) Development of certification.--Nothing in
this section shall be construed to require the
Administration to develop a certification program for
any category of small business concern listed in
subsection (k)(1).
``(C) Assistance to non-eligible small business
concern.--If at any time, a small business concern is
determined by the Administration not to be an eligible
small business concern in accordance with this
section--
``(i) the small business concern shall
immediately notify the mentor firm of the
determination; and
``(ii) assistance furnished to that small
business concern by the mentor firm after the
date of the determination may not be considered
to be assistance furnished under the Program.
``(d) Mentor Firm Eligibility.--
``(1) In general.--Subject to subsection (c)(1), a mentor
firm that is eligible for award of Federal contracts may enter
into an agreement with one or more protege firms under
subsection (e) and provide assistance under the Program
pursuant to that agreement, if the mentor firm demonstrates to
the subject agency the capability to assist in the development
of protege firms.
``(2) Presumption of capability.--A mentor firm shall be
presumed to be capable under paragraph (1) if the total amount
of contracts and subcontracts that the mentor firm has entered
into with the subject agency exceeds an amount determined by
the Administrator, in consultation with the head of the subject
agency, to be significant relative to the contracting volume of
the subject agency.
``(e) Mentor-Protege Agreement.--
``(1) In general.--Before providing assistance to a protege
firm under the Program, a mentor firm shall enter into a
mentor-protege agreement with the protege firm regarding the
assistance to be provided by the mentor firm.
``(2) Contents of agreement.--The agreement required by
paragraph (1) shall include--
``(A) a developmental program for the protege firm,
in such detail as may be reasonable, including--
``(i) factors to assess the developmental
progress of the protege firm under the Program;
and
``(ii) the anticipated number and type of
subcontracts to be awarded to the protege firm;
``(B) a Program participation term of not longer
than 3 years, except that the term may be for a period
of not longer than 5 years if the Administrator
determines, in writing, that unusual circumstances
justify a Program participation term of longer than 3
years; and
``(C) procedures for the protege firm to terminate
the agreement voluntarily and for the mentor firm to
terminate the agreement for cause.
``(f) Forms of Assistance.--A mentor firm may provide to a protege
firm--
``(1) assistance using mentor firm personnel, in--
``(A) general business management, including
organizational management, financial management, and
personnel management, marketing, business development,
and overall business planning;
``(B) engineering and technical matters, including
production, inventory control, and quality assurance;
and
``(C) any other assistance designed to develop the
capabilities of the protege firm under the
developmental program referred to in subsection
(e)(2)(A);
``(2) the award of subcontracts on a noncompetitive basis
under Federal contracts;
``(3) progress payments for performance of the protege firm
under a subcontract referred to in paragraph (2), in amounts as
provided for in the subcontract, except that no such progress
payment may exceed 100 percent of the costs incurred by the
protege firm for the performance;
``(4) advance payments under subcontracts referred to in
paragraph (2);
``(5) loans;
``(6) cash in exchange for an ownership interest in the
protege firm, not to exceed 10 percent of the total ownership
interest;
``(7) assistance obtained by the mentor firm for the
protege firm from--
``(A) small business development centers
established pursuant to section 21;
``(B) entities providing procurement technical
assistance pursuant to chapter 142 of title 10, United
States Code; or
``(C) a historically Black college or university or
a minority institution of higher education.
``(g) Incentives for Mentor Firms.--
``(1) Reimbursement for progress or advance payment.--The
head of the agency for which a mentor firm is contracting may
provide to a mentor firm reimbursement for the total amount of
any progress payment or advance payment made under the Program
by the mentor firm to a protege firm in connection with a
Federal contract awarded to the mentor firm.
``(2) Reimbursement for mentoring assistance.--
``(A) Mentor firm.--The head of the agency for
which a mentor firm is contracting may provide to a
mentor firm reimbursement for the costs of the
assistance furnished to a protege firm pursuant to
paragraphs (1) and (7) of subsection (f), as provided
for in a line item in a Federal contract under which
the mentor firm is furnishing products or services to
the agency, subject to a maximum amount of
reimbursement specified in the contract, except that
this subparagraph does not apply in a case in which the
head of the agency determines in writing that unusual
circumstances justify reimbursement using a separate
contract.
``(B) Total amount of reimbursement.--The total
amount reimbursed under subparagraph (A) to a mentor
firm for costs of assistance furnished in a fiscal year
to a protege firm may not exceed $1,000,000, except in
a case in which the head of the subject agency
determines in writing that unusual circumstances
justify reimbursement of a higher amount.
``(C) Reimbursement to agency.--The head of an
agency may submit documentation to the Administrator
indicating the total amount of reimbursement that the
agency paid to each mentor firm under this paragraph,
and the agency shall be reimbursed by the
Administration for not more than 50 percent of that
total amount, as indicated in the documentation.
``(3) Costs not reimbursed.--
``(A) In general.--
``(i) Credit.--Costs incurred by a mentor
firm in providing assistance to a protege firm
that are not reimbursed pursuant to paragraph
(2) shall be recognized as credit in lieu of
subcontract awards for purposes of determining
whether the mentor firm attains a
subcontracting participation goal applicable to
the mentor firm under a Federal contract or
under a divisional or companywide
subcontracting plan negotiated with an agency.
``(ii) Subject agency authority.--Clause
(i) shall not be construed to authorize the
negotiation of divisional or companywide
subcontracting plans by an agency that did not
have such authority before the date of
enactment of the Governmentwide Mentor-Protege
Program Act of 2001.
``(B) Amount of credit.--The amount of the credit
given to a mentor firm for unreimbursed costs described
in subparagraph (A) shall be equal to--
``(i) 4 times the total amount of the
unreimbursed costs attributable to assistance
provided by entities described in subsection
(f)(7);
``(ii) 3 times the total amount of the
unreimbursed costs attributable to assistance
furnished by the employees of the mentor firm;
and
``(iii) 2 times the total amount of any
other unreimbursed costs.
``(C) Adjustment of credit.--Under regulations
issued by the Administrator pursuant to subsection (j),
the head of the subject agency shall adjust the amount
of credit given to a mentor firm pursuant to
subparagraphs (A) and (B) of this paragraph, if the
head of the subject agency determines that the
performance of the mentor firm regarding the award of
subcontracts to eligible small business concerns has
declined without justifiable cause.
``(h) Administrative Provisions.--
``(1) Developmental assistance.--For purposes of this Act,
no determination of affiliation or control (either direct or
indirect) may be found between a protege firm and its mentor
firm on the basis that the mentor firm has agreed to furnish
(or has furnished) to the protege firm pursuant to a mentor-
protege agreement under this section any form of developmental
assistance described in subsection (f).
``(2) Participation in program.--Notwithstanding section 8,
the Administration may not determine an eligible small business
concern to be ineligible to receive any assistance authorized
under this Act on the basis that the small business concern has
participated in the Program, or has received assistance
pursuant to any developmental assistance agreement authorized
under the Program.
``(3) Administration review.--
``(A) In general.--Upon determining that the
mentor-protege program administered by the subject
agency conforms to the standards set forth in the rules
issued under subsection (j)(1), the Administrator may
not require a small business concern that is entering
into, or has entered into, an agreement under
subsection (e) as a protege firm, or a firm that makes
an application under subsection (c)(1), to submit the
application, agreement, or any other document required
by the agency in the administration of the Program to
the Administration for review, approval, or any other
purpose.
``(B) Exception.--The Administrator may require
submission for review of an agreement entered into
under subsection (e), or application submitted under
subsection (c)(1), if the agreement or application
relates to--
``(i) a mentor-protege program administered
by the agency that does not conform to the
standards set forth in the rules issued under
subsection (j)(1); or
``(ii) a claim for reimbursement of costs
submitted by an agency to the Administration
under subsection (g)(2)(C) that the
Administrator has reason to believe is not
authorized under this section.
``(i) Participation in Program Not To Be a Condition for Award of a
Contract or Subcontract.--A mentor firm may not require a small
business concern to enter into an agreement with the mentor firm
pursuant to subsection (e) as a condition for being awarded a contract
by the mentor firm, including a subcontract under a contract awarded to
the mentor firm.
``(j) Regulations.--
``(1) Proposed rules.--Not later than 270 days after the
date of enactment of the Governmentwide Mentor-Protege Program
Act of 2001, the Administrator shall issue final rules to carry
out this section.
``(2) Proposed rules from the federal acquisition
regulatory council.--Not later than 180 days after the date of
issuance of the final rules of the Administration under
paragraph (1), the Federal Acquisition Regulatory Council shall
publish final rules that conform to the final rules issued by
the Administration.
``(k) Definitions.--In this section--
``(1) the term `eligible small business concern' means--
``(A) any qualified HUBZone small business concern,
as defined in section 3(p)(5);
``(B) any small business concern that is owned and
controlled by women, as defined in section 3(n);
``(C) any small business concern that is owned and
controlled by socially and economically disadvantaged
individuals, as defined in section 8(a)(4); and
``(D) any small business concern that is owned and
controlled by service-disabled veterans, as defined in
section 3(q)(2);
``(2) the term `historically Black college and university'
means any of the historically Black colleges and universities
referred to in section 2323 of title 10, United States Code;
``(3) the term `mentor firm' means a business concern
that--
``(A) meets the requirements of subsection (d); and
``(B) is approved for participation in the Program
under subsection (c)(1);
``(4) the term `minority institution of higher education'
means an institution of higher education with a student body
that reflects the composition specified in paragraphs (3), (4),
and (5) of section 312(b) of the Higher Education Act of 1965
(20 U.S.C. 1058(b)(3), (4), (5));
``(5) the term `Program' means the Mentor-Protege Program
established under this section;
``(6) the term `protege firm' means an eligible small
business concern that receives assistance from a mentor firm
under this section; and
``(7) the term `subcontracting participation goal', with
respect to a Federal Government contract, means a goal for the
extent of the participation by eligible small business concerns
in the subcontracts awarded under such contract, as established
by the Administrator and the subject agency head, in accordance
with the goals established pursuant to section 15(g).
``(l) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $30,000,000 for each of fiscal
years 2002 through 2004.''.
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