[Federal Register Volume 60, Number 111 (Friday, June 9, 1995)]
[Notices]
[Pages 30529-30530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14206]



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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: Final Guidelines.

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SUMMARY: On August 22, 1994, the Department of Energy (DOE) published 
proposed guidelines for its Mentor-Protege Pilot Initiative. The 
Mentor-Protege Pilot Initiatives is designed to encourage Department of 
Energy management and operating contractors, Environmental Restoration 
management contractors and DOE prime contractors to assist energy-
related small disadvantaged, (8a), and women-owned businesses in 
enhancing their business and technical capabilities to ensure full 
participation in the mission of the Department.

EFFECTIVE DATE: June 9, 1995.

FOR FURTHER INFORMATION CONTACT: Eugene Tates at (202) 586-4556.

SUPPLEMENTARY INFORMATION:

Purpose and Program Overview

    The Department of Energy Mentor-Protege Pilot Initiative is 
designed to encourage Department of Energy management and operating 
contractors, Environmental Restoration management contractors and DOE 
prime contractors, to assist energy related small disadvantaged, 8(a), 
and women-owned 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, 8(a), or women-owned businesses that 
receive Department of Energy, other Federal and commercial contracts.

Comments to Proposal Guidelines

    On August 22, 1994, the Department of Energy published proposed 
guidelines for its Mentor-Protege Pilot Initiative and requested 
written comments on the draft guidelines and supporting materials on or 
before September 21, 1994 (59 FR 43098). Although the Department 
received numerous telephone inquiries regarding the Initiative, only 22 
written responses or comments were received.
    Issues raised by respondents were distilled into the following 
relevant issues:
    (1) Expand the mentor base to include more than Department of 
Energy management and operating contractors.
    DOE reviewed the Mentor-Protege Pilot Initiative mentor 
participation limitations and decided to expand the mentor base to 
include Environmental Restoration management contractors and DOE prime 
contractors.
    (2) Separate funding to operate the Initiative should be provided 
to approved mentor firms.
    Unlike other mentor-protege programs which have appropriated funds, 
the Mentor-Protege Pilot Initiative is a program conceived by the 
Department of Energy and operated within the constraints of available 
resources. The Initiative does not have any appropriated funding. The 
Initiative does not provide cost reimbursement.
    (3) A clear definition of ``energy-related'' should be given when 
the final guidelines are published.
    ``Energy-related'' refers to any business relevant to the mission 
of the Department of Energy.

A. General Policy

    (1) Department of Energy management and operating contractors, 
Environmental Restoration management contractors and prime contractors 
who are approved as mentor firms may enter into agreements with 
eligible small disadvantaged, 8(a), and women-owned businesses as 
protege firms to provide appropriate developmental assistance to 
enhance the business and technical capabilities of small disadvantaged, 
8(a), and women-owned businesses to perform as contractors, 
subcontractors and suppliers.
    (2) The mentor-protege initiatives described in these regulations 
constitutes a pilot program that will have a duration of two years from 
the date of the published final notice. During this period, management 
and operating contractors, Environmental Restoration management 
contractors and prime contractors which have received approval by the 
Department of Energy to participate in the program may enter into 
agreements with protege firms.

B. Incentives for Mentor Participation

    (1) Active participation in the Department of Energy Mentor Protege 
Initiative may be a source selection factor in the awarding of 
Department of Energy contracts.
    (2) 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.
    (3) Mentor firms shall receive credit toward Department of Energy 
subcontracting goals contained in their subcontracting plan.

C. Incentives for Protege Firms

    (1) Protege firms may be eligible for noncompetitive subcontracting 
procurement opportunities with the Department.
    (2) Technical and developmental assistance provided by the mentor.
    (3) Development of business relationships with Department of 
Energy, its contractors, and procurement personnel.

D. Mentor Firms

    Department of Energy mentor candidates must be:
    (1) Management and operating contractors of Department of Energy 
facilities.
    (2) Environmental Restoration management contractors.
    (3) DOE prime contractors. [[Page 30530]] 

E. Protege Firms

    Department of Energy Protege candidates must be:
    (1) A small disadvantaged, 8(a), or woman-owned small business 
concern in operation for two years as defined by the Small Business 
Administration.
    (2) Eligible for receipt of government contracts, and;
    (3) In operation and actively engaged in an energy related, 
technical or construction business field for two years.

F. Selection of Protege Firms

    (1) Proteges may be selected from each of the following areas:
    (a) Small disadvantaged and women-owned businesses that presently 
have contracts or subcontracts with the Department;
    (b) Small disadvantaged and women-owned businesses that are 
presently 8(a) or 8(a) graduates under the Small Business 
Administration Program.
    (c) Emerging small disadvantaged and women-owned business firms 
that possess energy related or technical capability and have been 
actively engaged in business for at least two years.

G. Agreement Contents

    (1) Once a protege firm has been selected for participation in the 
program, a Mentor-Protege Plan signed by the respective firms shall be 
submitted to the Office of Economic Impact and Diversity/Office of 
Small Disadvantaged Business Utilization for approval. The Plan shall 
contain a description of the developmental assistance that is mutually 
agreed upon and in the best developmental interest of the protege firm, 
not to exceed ten (10) typed pages.
    (2) 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
    (3) The submitted Mentor-Protege Agreement shall be reviewed by a 
Department of Energy committee consisting of representatives of the 
Office of Procurement and Assistance Management, the Office of Economic 
Impact and Diversity, and a Small Business Manager affiliated with the 
DOE Field Operations Offices.
    The committee may recommend acceptance of the submitted Agreement 
if the Agreement is in compliance with Department of Energy Mentor-
Protege guidelines.

H. Measurement of Program Success

    The overall success of the Mentor-Protege Initiative will be 
measured by the extent to which it results in:
    (1) An increase in the protege firm's technical and business 
capability, industrial competitiveness, client base expansion and 
improved financial stability.
    (2) An increase in the number and value of contracts, subcontracts 
and suppliers by small disadvantaged business protege firms in industry 
categories where small disadvantaged businesses have not traditionally 
participated.
    (3) 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.

I. Review and Approval of Mentor-Protege Agreements

    (1) All mentor-protege agreements shall be reviewed and approved by 
the Department of Energy's Office of Economic Impact and Diversity/
Office of Small and Disadvantaged Business Utilization.
    (2) Upon agreement approval, the mentor may implement the 
developmental assistance under the program.
    (3) Proteges may seek multiple mentors provided, conflict of 
interest provisions would not prevent such an arrangement and the 
approval of the Office of Economic Impact and Diversity/Office of Small 
and Disadvantaged Business Utilization is received.

J. Internal Controls by the Department

    (1) The Department of Energy's Office of Economic Impact and 
Diversity/Office of Small and Disadvantaged Business Utilization will 
manage the program and establish internal controls to achieve the 
stated program objectives. Controls will include:
    (a) Reviewing and evaluating mentor-protege agreements for goals 
and objectives; and
    (b) Reviewing semi-annual progress reports submitted by mentors and 
proteges on protege development to measure protege progress against the 
approved agreement.
    (c) Requesting and reviewing periodic reports and any studies or 
surveys as may be required by the Department.

K. Non Performance

    (1) Failure of the mentor to meet the terms of the Mentor-Protege 
Agreement may have an adverse affect on future award fees.
    (2) Failure of the protege to meet the terms of the Mentor-Protege 
Agreement may result in termination of the agreement by the mentor and 
exclusion from future participation in the Mentor-Protege Initiative.

L. Program Review

    At the conclusion of each year in the Mentor-Protege Initiative the 
mentor and protege will formally brief the Department of Energy Office 
of Economic Impact and Diversity/Office of Small and Disadvantaged 
Business Utilization, 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 June 2, 1995.
Corlis S. Moody,
Director, Office of Economic Impact and Diversity.
[FR Doc. 95-14206 Filed 6-8-95; 8:45 am]
BILLING CODE 6450-01-P