[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67419-67420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32006]


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DEPARTMENT OF DEFENSE
48 CFR Parts 19 and 52

[FAC 90-43; FAR Case 93-308; Item VI]
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).

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ACTION: Interim rule adopted as final with a change.

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule continuing 
an interim rule which amended the FAR. The interim rule published as 
Item X of FAC 90-37 is finalized with minor clarifying revisions. This 
final rule permits a mentor firm under the DOD Pilot Mentor-Protege 
Program to be granted credit toward subcontracting goals for certain 
costs incurred in providing developmental assistance to its Proteg3 
firms and to award subcontracts on a noncompetitive basis to its 
Protege firms. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993, and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: February 18, 1997.

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 4035, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-43, FAR case 93-308.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule implements Section 814(c) of Public Law 102-190, which 
amended

[[Page 67420]]

the Small Business Act at 15 U.S.C. 637(d)(11) to authorize certain 
costs incurred by mentor firms under the DOD Pilot 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 DOD or 
other contracts. An interim rule was published in the Federal Register 
on January 26, 1996 (61 FR 2637). One comment was received in response 
to the interim rule. As a result, in the second sentence of 19.702(d), 
the word ``firms'' was revised to read ``Protege agreement'', and the 
address and telephone number were corrected. The clause at 52.244-5 is 
adopted as final without change.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a 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 rule only applies 
to participants in the DOD Pilot Mentor-Protege Program. Presently, 
approximately 100 mentor firms and 240 protege firms are enrolled in 
the program.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 19 and 52

    Government procurement.

    Dated: December 11, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Accordingly, the interim rule amending 48 CFR Parts 19 and 52 and 
published at 61 FR 2637, January 26, 1996, is adopted as a final rule 
with the following changes:
    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 revising the last sentence of 
paragraph (d) to read as follows:


Sec. 19.702  Statutory requirement.

* * * * *
    (d) * * * However, the mentor-Protege agreement must have been 
approved by the Office of Small and Disadvantaged Business Utilization, 
Office of the Deputy Under Secretary of Defense (International and 
Commercial Programs) DUSD(I&CP)SADBU, Room 2A338, 3061 Defense 
Pentagon, Washington, DC 20301-3061, (703) 697-9383, before 
developmental assistance costs may be credited against subcontract 
goals.

PART 52-SOLICITATION PROVISIONS AND CONTRACT CLAUSES


Sec. 52.244-5  [Amended]

    3. The clause date for 52.244-5 is revised to read ``(DEC 1996)''.

[FR Doc. 96-32006 Filed 12-19-96; 8:45 am]
BILLING CODE 6820-EP-P