[House Report 116-310]
[From the U.S. Government Publishing Office]


116th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                    {       116-310

======================================================================



 
   DEPARTMENT OF HOMELAND SECURITY MENTOR-PROTEGE PROGRAM ACT OF 2019

                                _______
                                

 November 22, 2019.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Thompson of Mississippi, from the Committee on Homeland Security, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4727]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 4727) to amend the Homeland Security Act of 2002 
to establish a mentor-protege program, and for other purposes, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and 
  Tax Expenditures...............................................     3
Federal Mandates Statement.......................................     3
Statement of General Performance Goals and Objectives............     3
Duplicative Federal Programs.....................................     3
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................
Advisory Committee Statement.....................................
Applicability to Legislative Branch..............................
Section-by-Section Analysis of the Legislation...................     4
Changes in Existing Law Made by the Bill, as Reported............     5

                          Purpose and Summary

    H.R. 4727, the ``Department of Homeland Security Mentor-
Protege Program Act of 2019,'' encourages large business prime 
contractors to mentor small businesses to help position them to 
effectively compete for future federal government contracts.
    This bill seeks to authorize the Department of Homeland 
Security's (DHS) mentor protege program in which large business 
prime contractors (mentor firms) provide assistance to small 
businesses (protege firms). The mentor protege program has been 
in existence at DHS since 2003 but has not been codified in 
law. Today, the mentor protege program incentivizes large 
businesses to provide developmental assistance and 
subcontracting opportunities to small businesses. Mentor firms 
are encouraged to offer technical, managerial, and financial 
assistance to protege firms through incentives, such as 
additional credit when being evaluated for future DHS 
contracts. The firms participating in the program commit to 
working in a mentor/protege relationship for a period of no 
less than three years, fostering the establishment of long-term 
business relationships between large and small businesses. To 
ensure that Congress monitors the effectiveness of the program, 
the bill requires DHS to report annually to Congress on program 
participation, including the benefits provided to small 
business participants.

                  Background and Need for Legislation

    The Federal trend towards favoring government-wide vehicles 
for procurements has implications on the availability of 
contracting opportunities for small businesses.\1\ While 
government-wide small business contracting goals as a 
percentage of overall procurements are generally met,\2\ the 
number of small businesses receiving prime contracts hit a 10 
year low in 2018.\3\ Specifically, Federal agencies awarded 
contracts to 32 percent fewer small businesses in fiscal year 
2018 than in fiscal year 2009.\4\ In contrast, the number of 
large vendors only fell by 4 percent.\5\ The mentor protege 
program is necessary to increase the ability of small 
businesses to compete for prime contracts and foster innovation 
and job growth. Building the capacity of small businesses 
increases the pool of qualified vendors to fulfill the 
Department of Homeland Security's contracting needs and enhance 
America's security.
---------------------------------------------------------------------------
    \1\Jason Miller, Number of small business prime contractors down by 
25 percent since 2010, Federal News Network, October 16, 2017, https://
federalnewsnetwork.com/reporters-notebook-jason-miller/2017/10/number-
of-small-business-prime-contractors-down-by-25-percent-since-2010/ 
(accessed November 20, 2019).
    \2\Small Business Administration, Federal Government Achieves Small 
Business Contracting Goal for Sixth Consecutive Year with Record-
Breaking $120 Billion to Small Businesses, June 25, 2019, https://
www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/
federal-government-achieves-small-business-contracting-goal-sixth-
consecutive-year-record-breaking (accessed November 18, 2019).
    \3\Bloomberg Government, Federal Supplier Base Continued to Shrink 
in Fiscal 2018, May 23, 2019, https://news.bloombergenvironment.com/
federal-contracting/federal-supplier-base-continued-to-shrink-in-
fiscal-2018 (accessed November 17, 2019).
    \4\Ibid.
    \5\Ibid.
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                                Hearings

    For the purposes of section 103(i) of H. Res 6. of the 
116th Congress, the following hearing was used to develop H.R. 
4727:
           On May 9, 2019, the Committee held a hearing 
        entitled ``FEMA Contracting: Reviewing Lessons Learned 
        from Past Disasters to Improve Preparedness.'' The 
        Committee received testimony from Brian Kamoie, 
        Associate Administrator for Mission Support, Federal 
        Emergency Management Agency; Marie Mak, Director, 
        Contracting and National Security Acquisitions, 
        Government Accountability Office; and Katherine 
        Trimble, Deputy Assistant Inspector General for Audits, 
        Department of Homeland Security Office of Inspector 
        General.

                        Committee Consideration

    The Committee met on October 23, 2019, with a quorum being 
present, to consider H.R. 4727 and ordered the measure to be 
reported to the House with a favorable recommendation, without 
amendment, by unanimous consent.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 4727.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

Congressional Budget Office Estimate New Budget Authority, Entitlement 
                    Authority, and Tax Expenditures

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office.

                       Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of rule XIII, the Committee finds 
that H.R. 4727 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the objective of H.R. 4727 is to 
increase the ability of small businesses to compete for federal 
government contracts and thereby expand the pool of qualified 
vendors to fulfill the Department of Homeland Security's 
contracting needs.

                          Advisory on Earmarks

    In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of the rule 
XXI.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides that this bill may be cited as the 
``Department of Homeland Security Mentor-Protege Program Act of 
2019.''

Sec. 2. Department of Homeland Security mentor-protege program

    This section amends title VIII of the Homeland Security Act 
of 2002 to authorize a mentor protege program within the 
Department of Homeland Security (DHS or Department) under which 
a mentor firm enters into an agreement with a protegee firm for 
the purpose of assisting the protegee firm to compete for prime 
contracts and subcontracts of the Department.
    This section requires the Secretary of Homeland Security 
to:
    (1) establish eligibility criteria for mentor and protege 
firms; and
    (2) establish a process for mentor and protege firms to 
jointly submit applications to participate in the program that 
include--
          (a) a description of the assistance to be provided by 
        the mentor firm;
          (b) a schedule with milestones to achieve the 
        assistance to be provided;
          (c) an estimate of the costs to be incurred by the 
        mentor firm for providing assistance;
          (d) a commitment to submit reports to the Secretary 
        to assist in evaluating the protege's developmental 
        progress; and
          (e) a commitment to inform the Secretary of a change 
        in participation eligibility or voluntary withdrawal.
    This section also requires the head of DHS's Office of 
Small and Disadvantaged Business Utilization to notify 
applicants of approval or disapproval, and in the case of 
disapproval, the process for resubmitting an application. The 
head of the Office of Small and Disadvantaged Business 
Utilization may rescind the approval of an application if in 
the best interest of the Department.
    This section requires that mentor and protege firms 
participate in the program for not less than 36 months. This 
section allows mentor firms to receive benefits including 
evaluation credit during the selection process when competing 
for DHS contracts. A protege firm may receive technical, 
managerial, financial, or any other mutually agreed upon 
benefits from a mentor firm, including a subcontract award. 
Further, the Secretary may identify additional benefits to be 
provided.
    Not later than one year after the date of the enactment of 
this Act, and annually thereafter, the head of the Office of 
Small and Disadvantaged Business Utilization shall submit to 
the Committees on Homeland Security and Small Business of the 
House of Representatives a report that:
    (1) identifies each agreement between a mentor firm and a 
protege firm, including the number of protege firms that are 
small business concerns, small business concerns owned and 
controlled by veterans, small business concerns owned and 
controlled by service-disabled veterans, qualified HUBZone 
small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged 
individuals, women-owned small business concerns, historically 
Black colleges and universities, and minority institutions of 
higher education;
    (2) describes the type of assistance provided by mentor 
firms;
    (3) identifies contracts within the Department in which a 
mentor firm serving as the prime contractor provided 
subcontracts to a protege firm under the mentor-protege 
program; and
    (4) assesses the degree to which there has been--
          (a) an increase in the technical capabilities of 
        protege firms; and
          (b) an increase in the quantity and estimated value 
        of prime contract and subcontract awards to protege 
        firms for the period covered by the report.
    The bill encourages the participation of Historically Black 
Colleges and Universities in the program, as is allowed in 
other mentor-protege programs at other Federal agencies, such 
as the National Aeronautics and Space Administration. The 
Committee believes that this program, as strengthened under 
this Act, can help reverse the downward trend in the number of 
small businesses participating in federal contracting.\6\
---------------------------------------------------------------------------
    \6\Ibid.
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         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeland 
Security Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

 TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
      UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

     * * * * * * *

                  Subtitle H--Miscellaneous Provisions

Sec. 871. Advisory committees.
     * * * * * * *
Sec. 890A. Cyber crimes center, child exploitation investigations unit, 
          computer forensics unit, and cyber crimes unit.
Sec. 890B. Mentor-protege program.

           *       *       *       *       *       *       *


TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           *       *       *       *       *       *       *


Subtitle H--Miscellaneous Provisions

           *       *       *       *       *       *       *


SEC. 890B. MENTOR-PROTEGE PROGRAM.

  (a) Establishment.--There is established in the Department a 
mentor-protege program (in this section referred to as the 
``Program'') under which a mentor firm enters into an agreement 
with a protege firm for the purpose of assisting the protege 
firm to compete for prime contracts and subcontracts of the 
Department.
  (b) Eligibility.--The Secretary shall establish criteria for 
mentor firms and protege firms to be eligible to participate in 
the Program, including a requirement that a firm is not 
included on any list maintained by the Federal Government of 
contractors that have been suspended or debarred.
  (c) Program Application and Approval.--
          (1) Application.--The Secretary, acting through the 
        Office of Small and Disadvantaged Business Utilization 
        of the Department, shall establish a process for 
        submission of an application jointly by a mentor firm 
        and the protege firm selected by the mentor firm. The 
        application shall include each of the following:
                  (A) A description of the assistance to be 
                provided by the mentor firm, including, to the 
                extent available, the number and a brief 
                description of each anticipated subcontract to 
                be awarded to the protege firm.
                  (B) A schedule with milestones for achieving 
                the assistance to be provided over the period 
                of participation in the Program.
                  (C) An estimate of the costs to be incurred 
                by the mentor firm for providing assistance 
                under the Program.
                  (D) Attestation that Program participants 
                will submit to the Secretary reports at times 
                specified by the Secretary to assist the 
                Secretary in evaluating the protege firm's 
                developmental progress.
                  (E) Attestations that Program participants 
                will inform the Secretary in the event of 
                change in eligibility or voluntary withdrawal 
                from the Program.
          (2) Approval.--Not later than 60 days after receipt 
        of an application pursuant to paragraph (1), the head 
        of the Office of Small and Disadvantaged Business 
        Utilization shall notify applicants of approval or, in 
        the case of disapproval, the process for resubmitting 
        an application for reconsideration.
          (3) Rescission.--The head of the Office of Small and 
        Disadvantaged Business Utilization may rescind the 
        approval of an application under this subsection if it 
        determines that such action is in the best interest of 
        the Department.
  (d) Program Duration.--A mentor firm and protege firm 
approved under subsection (c) shall enter into an agreement to 
participate in the Program for a period of not less than 36 
months.
  (e) Program Benefits.--A mentor firm and protege firm that 
enter into an agreement under subsection (d) may receive the 
following Program benefits:
          (1) With respect to an award of a contract that 
        requires a subcontracting plan, a mentor firm may 
        receive evaluation credit for participating in the 
        Program.
          (2) With respect to an award of a contract that 
        requires a subcontracting plan, a mentor firm may 
        receive credit for a protege firm performing as a first 
        tier subcontractor or a subcontractor at any tier in an 
        amount equal to the total dollar value of any 
        subcontracts awarded to such protege firm.
          (3) A protege firm may receive technical, managerial, 
        financial, or any other mutually agreed upon benefit 
        from a mentor firm, including a subcontract award.
          (4) Any other benefits identified by the Secretary.
  (f) Reporting.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the head of the 
Office of Small and Disadvantaged Business Utilization shall 
submit to the Committees on Homeland Security and Small 
Business of the House of Representatives a report that--
          (1) identifies each agreement between a mentor firm 
        and a protege firm entered into under this section, 
        including number of protege firm participants that 
        are--
                  (A) small business concerns;
                  (B) small business concerns owned and 
                controlled by veterans;
                  (C) small business concerns owned and 
                controlled by service-disabled veterans;
                  (D) qualified HUBZone small business 
                concerns;
                  (E) small business concerns owned and 
                controlled by socially and economically 
                disadvantaged individuals;
                  (F) women-owned small business concerns;
                  (G) historically Black colleges and 
                universities; and
                  (H) minority institutions of higher 
                education;
          (2) describes the type of assistance provided by 
        mentor firms to protege firms;
          (3) identifies contracts within the Department in 
        which a mentor firm serving as the prime contractor 
        provided subcontracts to a protege firm under the 
        Program; and
          (4) assesses the degree to which there has been--
                  (A) an increase in the technical capabilities 
                of protege firms; and
                  (B) an increase in the quantity and estimated 
                value of prime contract and subcontract awards 
                to protege firms for the period covered by the 
                report.
  (g) Definitions.--In this section:
          (1) Historically black college or university.--The 
        term ``historically Black college or university'' means 
        any of the historically Black colleges and universities 
        referred to in section 2323 of title 10, United States 
        Code, as in effect on March 1, 2018.
          (2) Mentor firm.--The term ``mentor firm'' means a 
        for-profit business concern that is not a small 
        business concern that--
                  (A) has the ability to assist and commits to 
                assisting a protege to compete for Federal 
                prime contracts and subcontracts; and
                  (B) satisfies any other requirements imposed 
                by the Secretary.
          (3) Minority institution of higher education.--The 
        term ``minority institution of higher education'' means 
        an institution of higher education with a student body 
        that reflects the composition specified in section 
        312(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1058(b)).
          (4) Protege firm.--The term ``protege firm'' means a 
        small business concern, a historically Black college or 
        university, or a minority institution of higher 
        education that--
                  (A) is eligible to enter into a prime 
                contract or subcontract with the Department; 
                and
                  (B) satisfies any other requirements imposed 
                by the Secretary.
          (5) Small business act definitions.--The terms 
        ``small business concern'', ``small business concern 
        owned and controlled by veterans'', ``small business 
        concern owned and controlled by service-disabled 
        veterans'', ``qualified HUBZone small business 
        concern'', and ``small business concern owned and 
        controlled by women'' have the meaning given such 
        terms, respectively, under section 3 of the Small 
        Business Act (15 U.S.C. 632). The term ``small business 
        concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the 
        meaning given such term in section 8(d)(3)(C) of the 
        Small Business Act (15 U.S.C. 637(d)(3)(C)).

           *       *       *       *       *       *       *


                                  [all]