[Senate Report 117-225]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 584
117th Congress     }                                     {      Report
                                 SENATE
 2d Session        }                                     {     117-225
_______________________________________________________________________

                                     


           DEPARTMENT OF HOMELAND SECURITY MENTOR-PROTEGE ACT

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                H.R. 408

             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]









                December 5, 2022.--Ordered to be printed 
                
                
                             _________
                              
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
39-010                   WASHINGTON : 2022
                
                
                
                
                
                
                
                
                
                
                
                
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
















                                                      Calendar No. 584
117th Congress     }                                     {      Report
                                 SENATE
 2d Session        }                                     {     117-225

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



 
           DEPARTMENT OF HOMELAND SECURITY MENTOR-PROTEGE ACT

                                _______
                                

                December 5, 2022.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 408]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (H.R. 408), to amend 
the Homeland Security Act of 2002 to establish a mentor-protege 
program, and for other purposes, having considered the same, 
reports favorably thereon with amendments and recommends that 
the bill, as amended, do pass.

                                CONTENTS

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

                         I. Purpose and Summary

    H.R. 408, the Department of Homeland Security Mentor-
Protege Program Act of 2021, provides statutory authority for 
the mentor-protege program of the Department of Homeland 
Security (DHS), under which a mentor firm enters into an 
agreement with a protege firm to assist the latter to compete 
for prime contracts and subcontracts with DHS. The bill also 
encourages the participation of Historically Black Colleges and 
Universities (HBCUs) and minority institutions of higher 
education in the program, and requires DHS to report annually 
to Congress on program data and accomplishments.

              II. Background and Need for the Legislation

    DHS has an existing Mentor-Protege Program with the purpose 
of encouraging large prime contracting firms to provide 
developmental assistance to small businesses, in order to 
improve the performance of DHS contracts and subcontracts, 
foster the establishment of long-term business relationships, 
and strengthen subcontracting opportunities and 
accomplishments.\1\ All firms participating must be in good 
standing in the federal marketplace, with any firms on the 
Federal List of Debarred or Suspended Contractors excluded from 
the program. A firm is eligible to be a ``Mentor'' firm by 
demonstrating its commitment and capability to assist in the 
development of small business proteges.\2\ Small businesses, 
including veteran-owned small businesses, service-disabled 
veteran-owned small businesses, HUBZone small businesses, small 
disadvantaged businesses, and women-owned small businesses, are 
eligible to be ``Protege'' firms in the program.\3\
---------------------------------------------------------------------------
    \1\Department of Homeland Security, Mentor-Protege Program 
(www.dhs.gov/mentor-protege-program) (accessed Oct. 15, 2021).
    \2\Id.
    \3\See FAR 2.101 and FAR 19 for definitions of ``small business 
concern,'' and information and references relating to various types of 
small businesses.
---------------------------------------------------------------------------
    H.R. 408 would also encourage the inclusion of HBCUs and 
minority institutions of higher education in the program, by 
including these entities in the definition of ``Protege'' as it 
pertains to the program, as well as in the participation data 
to be included in an annual report to Congress. Both the 
Department of Defense and the National Aeronautics and Space 
Administration include HBCUs and ``minority serving 
institutions'' among the types of entities that may participate 
as proteges in their mentor-protege programs.\4\
---------------------------------------------------------------------------
    \4\Army Office of Small Business Programs, Historically Black 
Colleges and Universities (HBCU) Minority Servicing Institutions (MSI) 
Outreach Program (https://osbp.army.mil/Programs/HBCU-Minority-
Institutions) (accessed Oct. 15, 2021); National Aeronautics and Space 
Administration, NASA Mentor-Protege Program, Eligibility (https://
www.nasa.gov/osbp/mentor-protege-program#Eligibility) (accessed Oct. 
15, 2021).
---------------------------------------------------------------------------
    Based on a legislative change that required agencies with 
mentor-protege programs to seek the Small Business 
Administration's (SBA) approval for continued use, SBA 
authorized DHS to continue operation of the DHS Mentor-Protege 
Program for five years commencing on February 20, 2018.\5\ This 
bill would provide permanent statutory authorization of the DHS 
Mentor-Protege Program and expand the categories of 
eligibility, which would ensure continuation of the program and 
help increase the pool of qualified vendors for fulfilling DHS 
contracting needs in order to enhance homeland security.
---------------------------------------------------------------------------
    \5\National Defense Authorization Act of 2013, Pub. L. No. 112-239, 
Sec. 45 (2013).
---------------------------------------------------------------------------

                        III. Legislative History

    H.R. 408 was introduced by Representative A. Donald 
McEachin (D-VA-4) on January 21, 2021, with Representatives 
Bennie Thompson (D-MS-2) and Van Taylor (R-TX-3), and was 
referred to the House Committee on Homeland Security. The bill 
was considered in the House of Representatives under suspension 
of the rules and passed the House on April 20, 2021. The bill 
was received in the Senate on April 22, 2021 and was referred 
to the Committee on Homeland Security and Governmental Affairs.
    The Committee considered H.R. 408 at a business meeting on 
July 14, 2021, and ordered the bill reported favorably by voice 
vote en bloc (Senator Scott was recorded as a ``No''). Senators 
present for the vote were: Peters, Hassan, Rosen, Padilla, 
Ossoff, Portman, Johnson, Lankford, Romney, Scott, and Hawley.

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


Section 1. Short title

    This section provides that the Act may be cited as the 
``Department of Homeland Security Mentor-Protege Act of 2021.''

Section 2. Department of Homeland Security mentor-protege program

    Section 2 amends the Homeland Security Act of 2002 (6 
U.S.C. 451 et seq.) to add a section establishing a mentor-
protege program within DHS, under which a mentor firm enters 
into an agreement with a protege firm to compete for prime 
contracts and subcontracts of the Department. The section 
requires DHS to establish eligibility criteria for the program, 
as well as application procedures that include the submittal of 
a description of assistance to be provided by the mentor firm, 
a schedule with milestones for achieving this assistance, an 
estimate of the costs to be incurred by the mentor firm, and 
certain attestations. The section requires the DHS Office of 
Small and Disadvantaged Business Utilization to notify an 
applicant to the program of the results of the application 
within 60 days. The section also requires a minimum duration 
for a mentor-protege agreement of 36 months, and allows for 
certain program benefits for participants.
    The section requires DHS to submit an annual report to 
relevant congressional committees that provides program data as 
well as an assessment of program results.
    The section provides definitions for the terms 
``historically Black college or university,'' ``mentor firm,'' 
``minority institution of higher education,'' ``protege firm,'' 
and references several Small Business Act definitions.

                   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 bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's (CBO) statement that the bill 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, September 7, 2021.
Hon. Gary C. Peters,
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. 408, the 
Department of Homeland Security Mentor-Protege Program Act of 
2021.
    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.

    
    

    H.R. 408 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 direct 
contracts and subcontracts with DHS. Large businesses that 
contract with DHS could apply to be mentor firms, while small 
businesses, historically black college or universities, or 
minority institutions of higher education could apply to be 
protege firms.
    DHS is currently carrying out activities similar to those 
required by this act, and any new activities required under the 
legislation would not necessitate substantial action by the 
department. Thus, CBO estimates that implementing H.R. 408 
would not have a significant cost; any spending would be 
subject to the availability of appropriated funds.
    The CBO staff contact for this estimate is Lindsay Wylie. 
The estimate was reviewed by Leo Lex, Deputy Director of Budget 
Analysis.

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

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, 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. 890A. * * *
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. 890A. CYBER CRIMES CENTER, CHILD EXPLOITATION INVESTIGATIONS UNIT, 
                    COMPUTER FORENSICS UNIT, AND CYBER CRIMES UNIT.

           *       *       *       *       *       *       *


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) 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 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.
    (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 Committee on Homeland Security and 
Governmental Affairs and the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Homeland 
Security and the Committee on 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) small business concerns owned and 
                controlled by women;
                  (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 may 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. 
        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 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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