[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2637-2638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1024]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 19 and 52

[FAC 90-37; FAR Case 93-308; Item X]
RIN 9000-AG70


Federal Acquisition Regulation; Mentor Protege Program

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed to an interim rule to allow 
mentor firms under the Department of Defense Pilot Mentor-Protege 
Program to be granted credit toward subcontracting goals under small 
business subcontracting plans entered into with any executive agency. 
The rule also will permit mentor firms to award subcontracts on a 
noncompetitive basis to protege firms under Department of Defense or 
other contracts. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993.

DATES: Effective Date: January 26, 1996.
    Comment Due Date: To be considered in the formulation of a final 
rule, comments should be submitted to the address given below on or 
before March 26, 1996.

ADDRESSES: Comments should be submitted to: General Services 
Administration, FAR Secretariat, 18th & F Streets NW., Room 4037, 
Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 37, FAR 
case 93-308.

SUPPLEMENTARY INFORMATION: 

A. Background

    This rule implements Section 814(c) of Public Law 102-190, which 
amended the Small Business Act at 15 U.S.C. 637(d)(11) to authorize 
certain costs incurred by a mentor firm under the Department of Defense 
Mentor-Protege Program to be credited toward subcontracting goals for 
awards to small disadvantaged businesses. This rule also further 
implements Section 831(f)(2) of Public Law 101-510 which permits mentor 
firms to award subcontracts on a noncompetitive basis to its proteges 
under Department of Defense or other contracts.

B. Regulatory Flexibility Act

    The interim rule is not expected to have significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the 
revisions apply to mentor firms under the DOD Pilot Mentor-Protege 
Program, and these firms generally are not small entities. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments are invited from small businesses and other interested 
parties. Comments from small entities concerning the affected FAR parts 
will also be considered in accordance with 5 U.S.C. 610. Such comments 
must be submitted separately and cite 5 U.S.C. 601, et seq.  (FAC 90-
37, FAR case 93-308) in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any reporting or recordkeeping requirements which require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under authority of the Secretary of 
Defense (DOD), the Administrator of General Services (GSA); and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that, pursuant to 41 U.S.C. 418b, urgent and compelling reasons 
exist to publish an interim rule prior to affording the public an 
opportunity to comment. However, public comments received in response 

[[Page 2638]]
to this interim rule will be considered in formulating the final rule. 
The rule is necessary to further implement Section 814(c) of Public Law 
102-190, which amended the Small Business Act at 15 U.S.C. 637(d)(11) 
to authorize certain costs incurred by a Department of Defense Mentor-
Protege Program firm to be credited toward subcontracting goals for 
awards to small disadvantaged businesses, and Section 831(f)(2) of 
Public Law 101-510 which permits mentor firms to award subcontracts on 
a noncompetitive basis to its proteges under Department of Defense or 
other contracts.

List of Subjects in 48 CFR Parts 19 and 52

    Government procurement.

    Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR Parts 19 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 19 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 19--SMALL BUSINESS PROGRAMS

    2. Section 19.702 is amended by adding paragraph (d) to read as 
follows:


19.702  Statutory requirements.

* * * * *
    (d) As authorized by 15 U.S.C. 637(d)(11), certain costs incurred 
by a mentor firm in providing developmental assistance to a Protege 
firm under the Department of Defense Pilot Mentor-Protege Program, may 
be credited as subcontract awards to a small disadvantaged business for 
the purpose of determining whether the mentor firm attains a small 
disadvantaged business goal under any subcontracting plan entered into 
with any executive agency. However, the mentor firms must have been 
approved by the Office of Small and Disadvantaged Business Utilization, 
Office of the Under Secretary of Defense for Acquisition and 
Technology, OUSD (A&T)SADBU, Room 2A340, The Pentagon, Washington, DC 
20301-3061, (703) 697-1688, before developmental assistance costs may 
be credited against subcontract goals.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. 52.244-5 is amended by revising the clause to read as follows:


52.244-5  Competition in Subcontracting.

* * * * *

Competition in Subcontracting (Jan 1996)

    (a) The Contractor shall select subcontractors (including 
suppliers) on a competitive basis to the maximum practical extent 
consistent with the objectives and requirements of the contract.
    (b) If the Contractor is an approved mentor under the Department 
of Defense Pilot Mentor-Protege Program (Pub. L. 101-510, section 
831 as amended), the Contractor may award subcontracts under this 
contract on a noncompetitive basis to its proteges.

(End of clause)

[FR Doc. 96-1024 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M