[Senate Report 116-287]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 579

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-287

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

   DEPARTMENT OF HOMELAND SECURITY MENTOR-PROTEGE PROGRAM ACT OF 2019

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                               H.R. 4727

             TO AMEND THE HOMELAND SECURITY ACT OF 2002 TO
       ESTABLISH A MENTOR-PROTEGE PROGRAM, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                November 9, 2020.--Ordered to be printed
                
                              __________               
               
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                           WASHINGTON : 2020                     
          
-----------------------------------------------------------------------------------                  
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio                    GARY C. PETERS, Michigan
RAND PAUL, Kentucky                  THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma             MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah                    KAMALA D. HARRIS, California
RICK SCOTT, Florida                  KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming             JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri

                Gabrielle D'Adamo Singer, Staff Director
                   Joseph C. Folio III, Chief Counsel
            Christopher S. Boness, Professional Staff Member
               David M. Weinberg, Minority Staff Director
               Zachary I. Schram, Minority Chief Counsel
         Alexa E. Noruk, Minority Director of Homeland Security
              Michelle M. Benecke, Minority Senior Counsel
                     Laura W. Kilbride, Chief Clerk
                     
                     
                                                  Calendar No. 579

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-287

======================================================================
 
                    DEPARTMENT OF HOMELAND SECURITY 
                             MENTOR-PROTEGE

                                _______
                                

                November 9, 2020.--Ordered to be printed

                                _______
                                

 Mr. Johnson, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                        [To accompany H.R. 4727]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the Act (H.R. 4727), to amend 
the Homeland Security Act of 2002 to establish a mentor-protege 
program, and for other purposes, reports favorably thereon with 
amendments and recommends that the Act, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................3
  V. Evaluation of Regulatory Impact..................................4
 VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Act, as Reported.............5

                         I. Purpose and Summary

    H.R. 4727, the Department of Homeland Security Mentor-
Protege Program Act of 2019, amends the Homeland Security Act 
to codify a mentor-protege program within the Department of 
Homeland Security (DHS). The program is designed to encourage 
large business prime contractor firms to provide mutually 
beneficial developmental assistance to small businesses, to 
improve the performance of contracts and subcontracts, and to 
strengthen subcontracting opportunities. The Act requires the 
Secretary to develop eligibility requirements, establish an 
application and approval process, and other aspects of the 
program to include the program's duration and benefits.

              II. Background and the Need for Legislation

    In 2016, the Small Business Administration (SBA) created 
the All Small Mentor-Protege Program to increase the pool of 
small businesses contracting with the Federal Government and to 
increase small business capabilities.\1\ The SBA also allows 
for other agencies to create their own mentor-protege program, 
and DHS took the opportunity to create their own program. The 
mission of DHS's mentor-protege program is ``to motivate and 
encourage large business prime contractors to provide mutually 
beneficial developmental assistance to small businesses.''\2\ 
The program also attempts to bolster contracts with veteran-
owned businesses, women-owned businesses, minority-owned 
businesses, service-disabled veteran-owned small businesses, 
and other businesses that are typically underrepresented in 
contracts with agencies.\3\
---------------------------------------------------------------------------
    \1\13 CFR Sec. 125.9 (2016).
    \2\Mentor-Protege Program, U.S. Dep't of Homeland Security, https:/
/www.dhs.gov/mentor-protege-program (last updated June 22, 2018).
    \3\Id.
---------------------------------------------------------------------------
    Mentors and proteges mutually benefit from the mentor-
protege program in numerous ways. Mentors are able to receive 
credit in criteria areas during the application process for 
contracts.\4\ Proteges also receive credits for the contract 
application process as well as technical, financial, and 
managerial benefits in contracting.\5\ DHS also benefits by 
expanding the pool of small businesses it does business with 
and strengthening the performance of the small businesses in 
contracts.
---------------------------------------------------------------------------
    \4\Id.
    \5\Id.
---------------------------------------------------------------------------
    The SBA works with each agency and establishes goals for 
each agency.\6\ DHS has a long history of working well with 
small businesses and meeting or exceeding the goals that the 
SBA has set for the agency. For more than a decade, DHS has 
scored top marks on the SBA Annual Small Business procurement 
scorecard.\7\ For Fiscal Year 2018, DHS awarded 34.5 percent of 
its contracting dollars to small businesses.\8\ However, the 
number of small businesses across the Federal Government 
receiving prime contracts is at the lowest number in a decade--
a 27 percent drop from Fiscal Year 2009.\9\ This Act codifies 
the DHS mentor-protege program in order to strengthen the 
program and spell out Congress' intent for how the program 
should function effectively.
---------------------------------------------------------------------------
    \6\Press Release, U.S. Small Bus. Admin., 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; Small Business Procurement--
FINAL FY2019 Goals - as of 12/14/18, U.S. Small Bus. Admin., https://
www.sba.gov/sites/default/files/2019-05/FY19PrimeSUBFinalGoals_1.pdf 
(last visited Aug. 3, 2020).
    \7\Press Release, U.S. Dep't of Homeland Sec., Acquisition 
Excellence: DHS Receives an ``A+'' Grade on SBA's Annual Small Business 
Procurement Scorecard (June 26, 2019), https://www.dhs.gov/news/2019/
06/26/acquisition-excellence-dhs-receives-grade-sba-s-annual-small-
business-
procurement#: cents:text=Last%20fiscal%20year%2C%20the%20Depa
rtment,approximately
%207%2C800%20were%20small%20businesses.
    \8\Id.
    \9\Federal Supplier Base Continued to Shrink in Fiscal 2018, 
Bloomberg L. (May 23, 2019, 
1:41 PM), https://news.bloomberglaw.com/federal-contracting/federal-
supplier-base-continued-to-shrink-in-fiscal-2018.
---------------------------------------------------------------------------

                        III. Legislative History

    Representatives Donald McEachin (D-VA-4) and Bennie 
Thompson (D-MS-2) introduced H.R. 4727 on October, 17, 2019. 
Representative Donald Payne, Jr. (D-NJ-10) joined as a co-
sponsor on May 14, 2019. The House of Representatives 
considered H.R. 4727 on December 09, 2019, under suspension of 
the rules and it passed by voice vote. The Act was referred to 
the Committee on Homeland Security and Governmental Affairs on 
December 10, 2019.
    The Committee considered H.R. 4727 at a business meeting on 
July 22, 2020. Chairman Johnson and Ranking Member Peters 
offered an amendment adding a rule of construction to ensure 
that DHS is able to carry out their mentor-protege program 
without conflict. The amendment and the Act as amended were 
reported favorably by voice vote en bloc with Senators Johnson, 
Portman, Paul, Lankford, Romney, Scott, Enzi, Hawley, Peters, 
Carper, Hassan, Harris, and Rosen present. Senators Paul and 
Scott asked to be recorded as having voted ``No'' for the 
record.
    Pursuant to Committee Rules, the Act is reported with a 
technical amendment at the agreement of the Chairman and 
Ranking Member.

        IV. Section-by-Section Analysis of the Act, as Reported


Sec 1. Short title

    This section names the Act as the ``Department of Homeland 
Security Mentor-Protege Program Act of 2019''.

Sec. 2. Department of Homeland Security Mentor-Protege Program

    Subsection (a) adds a new section to the Homeland Security 
Act of 2002 codifying the mentor-protege program within DHS 
titled ``Sec. 890B. Mentor-Protege Program.''
    New section 890B, subsection (a) establishes the program. 
New section 890B, subsection (b) requires the Secretary of 
Homeland Secretary to establish eligibility requirements for 
the program, including a requirement that no firm already 
suspended or debarred can be eligible for the program.
    New section 890B, subsection (c) requires the Secretary, 
through the Office of Small and Disadvantaged Business 
Utilization within DHS, to establish an application process 
that includes a description of assistance that will be provided 
by the mentor, milestones, costs to the mentor, a list of 
reports required to DHS, and a notification requirement if 
there are any changes in eligibility or if the mentor withdraws 
from the program. This subsection also requires DHS to notify 
applicants within 60 days of approval or denial into the 
program. It also allows DHS to rescind approval should it be 
necessary. Subsection (d) stipulates that the mentor and 
protege firm must agree to participate in the program for at 
least 36 months.
    New section 890B, subsection (e) describes the benefits 
that the mentor and protege firm may receive through the 
program, including evaluation credits for mentor firms.
    New section 890B, subsection (f) requires the head of the 
Office of Small and Disadvantaged Business Utilization to 
submit a report to Congress after a year after enactment and 
every year afterwards that identifies the number of agreements, 
the types of assistance being provided, and contracts awarded 
under this program. Subsection (g) of the new section 
stipulates that nothing in this Act should limit DHS's ability 
to participate in a mentor-protege program carried out by or 
requiring approval from the Small Business Administration. 
However, should any provision of this section conflict with 
another provision of law, regulation or policy, this section 
shall control.
    New section 890B, subsection (h) provides definitions for 
terms in this Act including ``Historically black college or 
university;'' ``Mentor firm;'' ``Minority institution of higher 
education;'' ``Protege firm;'' and other small business 
definitions.
    Subsection (b) of the Act provides a technical amendment to 
the table of contents within Homeland Security Act of 2002 to 
reflect the additional section.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this Act and determined 
that the Act will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the Act contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 29, 2020.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4727, the 
Department of Homeland Security Mentor-Protege Program.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lindsay 
Wylie.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    H.R. 4727 would direct the Department of Homeland Security 
(DHS) to establish a program for mentor firms to enter into 
agreements with protege firms to help them compete for prime 
contracts and subcontracts.
    DHS is currently carrying out activities similar to those 
required by this act, and any new activities required under the 
legislation would not require substantial action by the 
department. Thus, CBO estimates that implementing H.R. 4727 
would not have a significant cost; any spending would be 
subject to the availability of appropriated funds.
    On December 20, 2019, CBO transmitted a cost estimate for 
H.R. 4727, the Department of Homeland Security Mentor-Protege 
Program Act of 2019, as passed by the House of Representatives 
on December 9, 2019. The two acts are similar and CBO's 
estimates of their budgetary effects are the same.
    The CBO staff contact for this estimate is Lindsay Wylie. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

       VII. Changes in Existing Law Made by the Act, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the Act, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

HOMELAND SECURITY ACT OF 2002

           *       *       *       *       *       *       *


SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) * * *
    (b) Table of Contents.--The table of contents for this Act 
is as follows:
Sec. 1. Short title; table of contents.
     * * * * * * *
    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 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) Attestations 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 a 
                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 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 a 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 1 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 Committee on Homeland Security and Governmental 
Affairs and the Committee on Small Business and 
Entrepreneurship of the Senate and 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 the 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) Rule of Construction.--Nothing in this section shall be 
construed to limit, diminish, impair, or otherwise affect the 
authority of the Department to participate in any program 
carried out by or requiring approval of the Small Business 
Administration or adopt or follow any regulation or policy that 
the Administrator of the Small Business Administration may 
promulgate, except that, to the extent that any provision of 
this section (including subsection (h)) conflicts with any 
other provision of law, regulation, or policy, this section 
shall control.
    (h) 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. 
        1508(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--
                  (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 meanings 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)).

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