[Federal Register Volume 59, Number 161 (Monday, August 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20539]


[[Page Unknown]]

[Federal Register: August 22, 1994]


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DEPARTMENT OF ENERGY
Office of Economic Impact and Diversity

 

Guidelines for Department of Energy Mentor Protege Initiative

AGENCY: U.S. Department of Energy (DOE).

ACTION: Notice of availability of guidelines and request for comment.

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SUMMARY: The Department of Energy is publishing and requests comments 
on its draft guidelines for its Mentor-Protege Pilot Initiative. The 
Mentor-Protege Pilot Initiative is designed to encourage Department of 
Energy management and operating contractors to assist energy related 
small disadvantaged and women-owned businesses in enhancing their 
business and technical capabilities to ensure full participation in the 
mission of the Department.

DATES: Written comments on the draft guidelines and supporting 
materials are due on or before September 21, 1994.

ADDRESSES: Written comments (3 copies) should be submitted to: U.S. 
Department of Energy, Office of Small and Disadvantaged Business 
Utilization, 1707 H Street, Room 915, Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Ms. Brenda DeGraffenreid at (202) 254-
5592.

SUPPLEMENTARY INFORMATION:

A. Purpose and Program Overview

    The Department Energy Mentor-Protege Pilot Initiative is designed 
to encourage Department of Energy management and operating contractors 
to assist energy related small disadvantaged businesses in enhancing 
their business and technical capabilities to ensure full participation 
in the mission of the Department. The use of this integrated working 
arrangement between companies will promote economic and technological 
growth, foster the establishment of long term business relationships 
and increase the number of small disadvantaged businesses that receive 
Department of Energy, other Federal and commercial contracts.

B. General Policy

    (a) Department of Energy management and operating contractors who 
are approved as mentor firms may enter into agreements with eligible 
small disadvantaged businesses as protege firms to provide appropriate 
developmental assistance to enhance the business and technical 
capabilities of small disadvantaged businesses to perform as 
contractors, subcontractors and suppliers.
    (b) The mentor-protege initiatives described in these regulations 
constitutes a pilot program that will have a duration of two years with 
a one year option commencing from the date of the published final rule. 
During this period, management and operating contractors, which have 
received approval by the Department of Energy to participate in the 
program may enter into agreements with protege firms.

C. Incentives for Mentor Participation

    (a) Active participation in the Department of Energy Mentor Protege 
Initiative may be a source selection factor in the awarding of 
Department of Energy contracts.
    (b) The award fee evaluation plans contained in all Department of 
Energy Performance-Based Management contracts may include a factor for 
evaluation of a contractor's performance associated with Mentor-Protege 
initiative participation.
    (c) Mentor firms shall receive credit toward Department of Energy 
subcontracting goals contained in their subcontracting plan.

D. Mentor Firms

    Department of Energy mentor candidates must be:
    (1) Management and operating contractors (M&Os) of Department of 
Energy facilities.

E. Protege Firms

    Department of Energy Protege candidates must be:
    (1) A small disadvantaged or women-owned small business concern as 
defined by Federal Acquisition Regulation;
    (2) Certified as small in the Standard Industrial Classification 
code for the services or supplies to be provided by the protege to the 
mentor;
    (3) Eligible for receipt of government contracts, and;
    (4) In operation and actively engaged in an energy related, 
technical or construction business field for two years prior to 
applying for participation in the Mentor-Protege Initiative.

F. Selection of Protege Firms

    (a) Protege selection will be implemented through a tier 
development plan as provided in subsection (b) below. This tier 
development plan is intended as a guide from which an 
``individualized'' plan can be developed for each protege. The tier 
development structure recognizes the protege firms current business 
capacity and sets the parameters of assistance for monitoring purposes.
    (b) Mentor firms are encouraged to select proteges from each of the 
following areas:
    (1) Small disadvantaged businesses that presently have contracts or 
subcontracts with the Department;
    (2) Small disadvantaged businesses that are presently 8(a) or 8(a) 
graduates under the Small Business Administration Program that have 
been actively engaged in business for at least five years; and
    (3) Emerging small disadvantaged business firms that possess energy 
related or technical capability and have been actively engaged in 
business for at least two years.
    (c) Once a protege firm has been selected for participation in the 
program, a Mentor-Protege Plan signed by the respective firms should be 
submitted to the Office of Small Disadvantaged Business Utilization for 
approval. At the minimum, the Plan should contain a description of the 
developmental assistance that is mutually agreed upon and in the best 
developmental interest of the protege firm. Such assistance may not 
include payment of any monies.
    The Mentor-Protege Plan shall also include information on the 
mentor's ability to provide developmental assistance, schedule for 
providing such assistance, and criteria for evaluating the protege's 
developmental success. The Plan shall include termination provisions 
complying with Notice and due process rights of both parties and a 
statement agreeing to submit periodic report reviews and cooperate in 
any studies or surveys as may be required by the Department in order to 
determine the extent of compliance with the terms of the agreement.

G. Measurement of Program Success

    The overall success of the pilot program will be measured by the 
extent to which it results in:
    (a) An increase in the protege firm's technical and business 
capability, industrial competitiveness, client base expansion and 
improved financial stability.
    (b) An increase in the number of value of contracts, subcontracts 
and suppliers by small disadvantaged business protege firms in industry 
categories where small disadvantaged businesses have not traditionally 
participated within the mentor firm's activity.
    (c) The overall enhancement and development of protege firms as a 
competitive contractor, subcontractor, or supplier to the Department of 
Energy, other Federal agencies or commercial markets.
    (d) Proteges after successfully completing one year under the 
Mentor-Protege Initiative program may seek multiple mentors provided 
conflict of interest provisions would not prevent such an arrangement 
and the approval of the Office of Small and Disadvantaged Business 
Utilization is received.

H. Office of Small and Disadvantaged Business Utilization

    (a) All information submitted shall be reviewed and approved by the 
Department of Energy's Office of Small and Disadvantaged Business 
Utilization. The Office of Small and Disadvantaged Business Utilization 
will provide a copy of the submitted information to the cognizant 
Department of Energy program manager and contracting officer for a 
parallel review and concurrence.
    (b) Upon agreement approval, the mentor may implement the 
developmental assistance under the program.

I. Internal Controls by the Department

    (a) The Department of Energy's Office of Small and Disadvantaged 
Business Utilization will manage the program and establish internal 
controls to achieve the stated program objectives. Controls will 
include:
    (1) Reviewing and evaluating mentor-protege applications for 
realism, validity and accuracy of provided information; and
    (2) Reviewing semi-annual progress reports submitted by mentors and 
proteges on protege development to measure protege progress against the 
master plan contained in the approved agreement.
    (3) Assurance from the mentor and protege firms that they will 
submit periodic reports and cooperate in any studies or surveys as may 
be required by the Department in order to determine the extent of 
compliance with the terms of their agreement.
    (b) Failure of the mentor to meet the terms of the Mentor-Protege 
Plan may have an adverse affect on future award fee evaluation plans.
    (c) Failure of the protege to meet the terms of the Mentor-Protege 
Plan may result in exclusion from future participation in the Mentor-
Protege Program.

J. Program Review

    At the conclusion of each year in the Mentor-Protege Initiative the 
mentor prime contractor and protege will formally brief the Department 
of Energy Office of Small and Disadvantaged Business Utilization, the 
head of the contracting activity, and the contracting officer during a 
formal program review regarding program accomplishments as it pertains 
to the approved agreement. The Briefing may be held at either the 
Department of Energy Headquarters or the Mentor or Protege's site.

    Issued in Washington, DC on August 10, 1994.
Corlis S. Moody,
Director, Office of Economic Impact and Diversity.
[FR Doc. 94-20539 Filed 8-19-94; 8:45 am]
BILLING CODE 6450-01-P