[Congressional Record Volume 147, Number 64 (Thursday, May 10, 2001)]
[Senate]
[Pages S4828-S4832]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BOND:
  S. 861. 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; to the Committee on Small Business.
  Mr. BOND. Mr. President, today I offer a bill to take a successful 
pilot program at the Department of Defense, make it permanent, and 
extend it governmentwide. For the past decade, DOD has had a program in 
place to try to develop and maintain small business vendors as a vital 
part of our Nation's defense industrial base. This program, the Mentor-
Protege program, has also been a principal source of opportunity for 
small business, to offset some of the other Federal procurement 
practices that have squeezed small business out of contracting.
  Those two goals, the enhanced vendor base and improved opportunity, 
are worth emphasizing before I discuss the specific provisions of this 
bill. Why is small business participation in contracting important?
  Far too often, small business is seen as just another social or 
economic development program. In Federal contracting, however, it is 
much more than that. Small business is a critical, vital, indispensable 
part of our nation's preparedness for its defense.

[[Page S4829]]

  We have been working here in the Senate toward trying to shore up our 
defense preparedness. For the better part of a decade, DOD has had more 
and more missions with fewer and fewer resources. Now that we are 
trying to overcome this neglect with additional funding, we must also 
ensure that our economic base is strong, as well. It will do little 
good to have the money to buy defense-related goods and services if 
there are no vendors available to sell them.
  The DOD Office of Small and Disadvantaged Business Utilization has an 
excellent slogan that drives this point home. ``Small Business: A 
Readiness Multiplier.''
  So, keeping small business involved in contracting is a matter of 
self-interest for our Nation. It is a matter of having the goods, the 
services, the resources for the warfighter to take into battle.
  Second, small business must have access to contracting as a matter of 
economic opportunity. The Government is an enormous customer. It 
averages about $180 to $190 billion worth of contracting every year. No 
one else has that kind of presence in the marketplace.
  If the Government spends the lion's share of its money on a handful 
of large insider corporations, it distorts the marketplace. It tends to 
give unfair advantage to the winning firms, purely because of the 
Government's enormous purchasing power.
  To avoid harming our economy with that kind of market distortion, the 
small business program seeks to disperse Government contracts among a 
variety of vendors. The small business program is not so much an 
intervention in the economy as it is a dilution of the distortion that 
would otherwise occur.
  Unfortunately, over the last decade the Government has increasingly 
squeezed small business out of contracting. As part of the 
``Reinventing Government'' effort, acquisition has been streamlined.
  Now, I don't mean to suggest that all acquisition reform has been 
harmful. In fact, burdensome processes and bureaucracy also tend to 
discourage small business. Large businesses are more likely to have 
lawyers and contracting staff to wade through the bureaucracy, so 
excessive emphasis on process tends to crowd out small business.
  But in some areas we have gone too far. Contract bundling is a good 
example of this. By rolling several small contracts into large 
packages, the Government has made things simpler and faster for the 
contracting officers. It is administratively simpler to handle one 
bundled contract than ten smaller ones.

  However, that often crowds out small business. A small business owner 
looks at one of these huge contracts and says, ``Even if I won that 
contract, I couldn't carry it out. It's too big, and the requirements 
are too complex.'' So she, and it is often women business owners that 
suffer, she doesn't even bother to bid.
  Those two issues, the need to improve opportunity and to strengthen 
our defense vendor base, show why we need to take specific steps to 
restore small business access to procurement opportunities.
  Fortunately, we have a successful model to build upon!
  In the Fiscal 1991 defense authorization bill, the Congress adopted a 
provision to help small firms develop the technical infrastructure 
necessary to perform Federal contracts effectively. This pilot program, 
the Mentor-Protege program, provided for prime contractors either to be 
reimbursed for their added costs in providing technical assistance to 
small firms, or to receive credit for accomplishing their 
subcontracting plans in lieu of reimbursement.
  Experience under the Mentor-Protege pilot program has been very 
positive. We have learned a lot about what it takes to get small 
businesses ready to be serious players in Federal procurement. For 
firms that are simply delivering a specific order for a product, 
performing on that delivery order is often simple enough.
  But longer term, larger contracts are more complex. They require 
sustained effort over many months or years. They require a firm to 
commit to and achieve intermediate milestones on time. They require the 
firm to maintain quality assurance standards month in and month out, 
year in and year out. This can be extraordinarily challenging.
  Mentor firms have demonstrated that they can help train small protege 
firms to develop that infrastructure, so necessary to be successful in 
larger Federal contracts.
  I have a case history right here that I call to the attention of my 
colleagues. Scott Ulvi, of Anteon Corporation, has written me about his 
experience in mentoring, and Ray Lopez, of Engineering Services 
Network, has written about the value of the training and assistance he 
received from Anteon. I call particular attention to Mr. Lopez' 
experience in successfully receiving Federal contracts, only to have 
the reality sink in that he was originally unprepared to carry them 
out. His experience is truly instructive of what small business owners 
encounter daily, and I call his letter to the attention of my 
colleagues. I will ask unanimous consent that both letters be inserted 
into the Record at the conclusion of my remarks.
  The bill I am offering today would build upon the experience with the 
DOD program and make it governmentwide. Specifically, the Administrator 
of the Small Business Administration would be charged with developing a 
governmentwide program that would provide assistance to all types of 
firms targeted for special procurement procedures under the Small 
Business Act.
  Now, it would not be possible for the SBA to manage every Mentor-
Protege relationship in the Federal Government. It would be 
administratively impossible. Thus, my bill calls for the Administrator 
to develop a core Mentor-Protege program, applicable across the 
Government, and to reimburse part of the expenses of agencies that 
agree to adopt the SBA program. Agencies would administer the program 
in-house, but would apply to be reimbursed for up to 50 percent of 
certain expenses incurred in a program that conforms to the 
Administrator's guidelines.
  The expenses to be partially reimbursed are those for which an agency 
reimburses the mentoring firms. Mentor firms can get reimbursed from 
the contracting office for added costs they incur in providing 
technical, managerial, and developmental assistance to the protege 
firm. Under this bill, up to 50 percent of these costs would then in 
turn be reimbursed to the agency from the SBA. The technical assistance 
provided through this reimbursable program is far and away the most 
valuable, as the letter from Scott Ulvi of Anteon Corporation 
describes. This program seeks to help agencies put together the 
resources they need to make such reimbursements.
  This program will help all agencies of the Government strengthen 
their vendor base, just as it has for the Department of Defense. It 
will help small businesses develop their abilities to compete for 
larger contracts, and the taxpayer will be the ultimate winner as a 
result of that competition. It also meets one of the Bush 
administration's goals, as described in the recent budget submission, 
of reducing fragmentation among Federal programs by ensuring a uniform, 
core Mentor-Protege program across the Government.
  Nothing succeeds like success. The DOD Mentor-Protege program, 
adopted as a pilot in 1991, has been such a success. Now we need to 
learn from that success and make it available across the Government. My 
bill proposes to do exactly that and I ask unanimous consent that the 
text of the bill and supporting letters be printed in the Record.
  There being no objection, the additional material was ordered to be 
printed in the Record, as follows:

                                 S. 861

       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

[[Page S4830]]

     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

[[Page S4831]]

     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.''.
                                  ____



                                           Anteon Corporation,

                                      Fairfax, VA, April 30, 2001.
     Senator Christopher S. Bond,
     Chairman, Small Business Committee, Russell Senator Office 
         Building, Washington, DC.
       Dear Senate Bond: Anteon Corporation is a mid-sized 
     Government contractor that has been a Department of Defense 
     Mentor since 1997. This program has enabled Anteon to provide 
     valuable assistance to seven small disadvantaged businesses 
     at critical points in their development. We are committed to 
     the success of our protege firms and the Mentor-Protege 
     Program overall. The responsibility of a mentor is a serious 
     one. We recognize this and have established a separate 
     Mentor-Protege organization dedicated to delivering the 
     highest quality mentoring services. This has been made 
     possible primarily by the reimbursement provided under our 
     Mentor-Protege Agreements within the DOD. The financial 
     incentives from DOD's program have produced significant 
     results in several of Anteon's Mentor-Protege Agreements:
       Anteon and Engineering Services Network, Inc.--March 2001, 
     DoD Nunn-Perry Award winning team--240% Growth in Revenues in 
     18 months; 178% Growth in employees; 1,281% return on 
     investment (ROI) since March 1999.
       Anteon and CETECH, Inc.--422% Growth in Revenues in 36 
     months; 400% Growth in employees; 452% ROI over 36 months.
       Anteon and DaySys, Inc.--217% improvement in Revenues; 128% 
     improvement in profit from 1999 to 2001 (projected).
       While each firm is certainly unique, the common denominator 
     for the success realized under this program, is the owner's 
     recognition of the value of a mentor and a willingness to 
     accept assistance. Anteon's success as a mentor comes from 
     our commitment and dedication to our protege and the program. 
     Our experience has taught us that a truly successful program 
     must focus on technical development while effectively 
     balancing the infrastructure support so important to small 
     businesses. Technical development is unquestionably the most 
     important component of this program because it increases the 
     value and competitive posture of the protege to the customer. 
     As a result of the DOD Mentor-Protege Program our proteges 
     have been able to receive technical development in such 
     critical areas as: ISO 9000 Quality Management System 
     Certification; Software Engineering Institute Capability 
     Maturity Model preparation; and other high technology 
     development in the disciplines of engineering and information 
     technology. These important skills produce significant return 
     to the Federal Government in terms of increased efficiency, 
     lower costs and higher project success rates.
       The success of our program is the direct result of 
     knowledge, experience and a great deal of hard work, work 
     that would not have been possible without the support 
     afforded this program by the DOD, both financially and 
     otherwise. This program is what it is today because of the 
     tremendous support and vision of its leaders past and 
     present. Mr. Robert Neal, Mr. George Schultz, and Ms. Janet 
     Koch have shown relentless commitment to the success of the 
     Mentor-Protege program in DOD and deserve the lion's share of 
     recognition for the program's success. The support of the 
     Congress in reauthorizing this program every year for the 
     last decade speaks volumes of the support received by our 
     Nation's leaders. The support for this program must continue 
     and the program must grow to reach the multitude of deserving 
     small businesses that desperately need the assistance.
       Mentor firms like Anteon receive considerable business, 
     social and political value from this program. That value 
     translates directly to the bottom line by taking part in the 
     growth and success of our proteges as business partners and 
     through our active participation in the small business 
     community. My mentor once told me that the highest calling of 
     a leader is to develop others--I truly believe that. My 
     reward for being a mentor is the gratification of knowing 
     that my efforts have helped to develop the business leaders 
     of tomorrow.
       Anteon stands ready to assist the Department of Defense, 
     the Congress and the Federal Government in any way possible 
     to ensure the continued success and growth of this most 
     important program.
           Sincerely,
                                                  M.N. Scott Ulvi,
     Director, Mentor-Protege Programs.
                                  ____

                                              Engineering Services


                                                Network, Inc.,

                                    Arlington, VA, April 27, 2001.
     Senator Christopher S. Bond,
     Chairman, Small Business Committee, Russell Senate Office 
         Building, Washington, DC.
       Dear Senator Bond: I would like to make you aware of what I 
     consider to be the most important small business program 
     currently available to small businesses whether they be 
     minority owned, veteran owned, woman owned, or otherwise. The 
     Mentor-Protege Program is so important that it transcends 
     personalities, race, creed, color or religion. This program 
     has enabled my firm, Engineering Services Network, Inc., to 
     realize remarkable success in a very short period of time. 
     The Mentor-Protege Program deserves continued and increasing 
     support from the Federal government and our Executive Branch.
       After my retirement from the U.S. Navy in 1994, I 
     considered a career coaching in the secondary education 
     system, I also had an interest in providing high technology 
     services to my former fellow shipmates and the patriots of 
     this great nation. My wife and I made the decision that the 
     transition to a business life would be easier if I could 
     provide services to the organization that meant so much to me 
     for thirty years. Little did I realize the amount of 
     headwork, legwork, anxiety and mental toughness required to 
     enter the field of business. Our first few years became the 
     toughest challenge of our lives. Although I was technically 
     astute in Command, Control, Communication, Combat Systems and 
     the various operational aspects of the United States Navy, I 
     soon realized that I was ill prepared for the challenges 
     presented by owning your own business. I enjoyed a gift that 
     enabled me to bring in business, but quickly found that we 
     lacked the necessary skills and experience within the firm to 
     manage and grow the work that I'd captured. We needed to 
     learn the basic skills of pricing, contract management, and

[[Page S4832]]

     project management in order to perform successfully. On the 
     business side, the basic and key concepts of developing a 
     solid business plan were foreign to me. The significance and 
     meaning of operating assets and liabilities were as 
     unfamiliar to me as the standard operational procedures of an 
     M1 Tank. I was a warrior, not a businessman.
       After two years of slowly building the organization to 18 
     employees, surviving delivery order to delivery order, and 
     continually asking ourselves whether the effort was worth the 
     reward, two pivotal events occurred:
       1. The company received its 8(a) status from the Small 
     Business Administration.
       2. We entered into an informal Mentor-Protege relationship 
     with Anteon Corporation.
       The 8(a) program was instrumental in opening doors to 
     market areas in which our corporation would not normally 
     compete. Our informal mentor protege relationship with Anteon 
     provided us access to training resources that allowed us to 
     understand some of the basic concepts of doing business in 
     the DOD arena. This was an important asset for ESN at such a 
     critical point in our business life.
       In 1999 ESN and Anteon took the next natural step in 
     advancing our relationship by entering into a formal Mentor-
     Protege relationship through the Defense Information Systems 
     Agency (DISA). In the short four years since its birth, the 
     company had grown to 28 employees and had limped along with 
     limited and inexperienced infrastructure.
       The formal Mentor-Protege relationship established a far 
     more structured and focused approach to assisting ESN with 
     its developmental needs. Our mentor introduced to us cutting 
     edge and critical ideas, not only in technology but in our 
     financial and other responsibilities as a company. They have 
     helped ESN to implement effective management controls 
     including budgeting and financial management and are largely 
     responsible for catalyzing ESN's commitment to achieve ISO 
     9000 certification in 2001. Our mentor has helped us build a 
     foundation that will take ESN far into the 21st century. 
     After only two short years in our formal Mentor-Protege 
     relationship with Anteon we employ 87 people, which would not 
     have been possible without our Mentor's help. Our progress 
     was recognized by the Department of Defense in March 2001 
     with the award of the prestigious Nunn-Perry Award. As a 
     result of the progress we have made, ESN is able to 
     contribute to the Gross National Product and provide 
     outstanding technical and engineering skills to our nation's 
     warfighters. I am now a businessman and former warrior.
       Without the Mentor-Protege Program there would be no 
     ``ESNs'' to contribute to the important cause of keeping our 
     nation safe and free by protecting our country and our 
     national security. As you can tell from this letter, I fully 
     believe in and support the Mentor-Protege Program, 
     established many years ago by our forward thinking leaders, 
     and willingly respond to any call that will help to continue 
     and improve this program.
           Sincerely,
                                            Raymond F. Lopez, Jr.,
                                                  President & CEO.
                                 ______