[Federal Register Volume 64, Number 43 (Friday, March 5, 1999)]
[Rules and Regulations]
[Pages 10571-10572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5483]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1806, 1819, and 1852


NASA Mentor-Protege Program

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This is a final rule amending the NASA Federal Acquisition 
Regulation (FAR) Supplement (NFS) to eliminate the pilot status of the 
NASA Mentor-Protege Program and make it consistent with recent FAR 
changes on evaluation of small disadvantaged business (SDB) 
participation in acquisitions. Miscellaneous editorial revisions are 
also made to the Mentor-Protege coverage. In addition, the rule makes 
an internal administrative change to redesignate the competition 
advocate for NASA Headquarters acquisitions.

DATES: This rule is effective March 5, 1999.

ADDRESSES: Tom O'Toole, Code HK, NASA Headquarters, 300 E Street, SW, 
Washington, DC 20456-0001.

FOR FURTHER INFORMATION CONTACT: Tom O'Toole, (202) 358-0478, e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The NASA Mentor-Protege Program was established as a pilot program 
in March 1995 to incentivize NASA prime contractors to provide 
developmental assistance to SDB concerns, Historically Black Colleges 
and Universities, minority institutions, and women-owned small business 
concerns. The pilot program has proved successful, and the program will 
continue indefinitely. However, the FAR has recently been revised to 
specify the circumstances in which SDB participation may be evaluated 
in Government acquisitions. Only those SDBs in Standard Industrial 
Classification Major Groups as determined by the Department of Commerce 
may be included in the evaluation. The NASA Mentor-Protege Program 
addresses evaluation of SDBs, and changes are required to ensure 
conformance with the FAR.

Impact

Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Pub. L. 98-577, and publication for 
comments is not required. However, comments from small entities 
concerning the affected NFS coverage will be considered in accordance 
with 5 U.S.C. 610. Such comments may be submitted separately and should 
cite 5 U.S.C. 601, et seq.

Paperwork Reduction Act

    The Paperwork reduction Act does not apply because the changes to 
the NFS 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 1806, 1819, and 1852

    Government procurement.
Tom Luedtke,
Acting Associate Administrator for Procurement.

    Accordingly, 48 CFR Parts 1806, 1819, and 1852 are amended as 
follows:
    1. The authority citation for 48 CFR Parts 1806, 1819, and 1852 
continues to read as follows:

    Authority: 42 U.S.C. 2473(c)(1).

PART 1806--COMPETITION REQUIREMENTS

    2. In section 1806.501, paragraph (3) is revised to read as 
follows:


1806.501  Requirement.

* * * * *
    (3) The Headquarters Chief Financial Officer, Code CF, is the 
competition advocate for the Headquarters contracting activity.
* * * * *

PART 1819--SMALL BUSINESS PROGRAMS

    3. Section 1819.7201 is revised to read as follows:


Sec. 1819.7201  Scope of subpart.

    The NASA Mentor-Protege Program is designed to incentivize NASA 
prime contractors to assist small disadvantaged business (SDB) 
concerns, Historically Black Colleges and Universities (HBCUs), 
minority institutions (MIs), and women-owned small business (WOSB) 
concerns, in enhancing their capabilities to perform NASA contracts and 
subcontracts, foster the establishment of long-term business 
relationships between these entities and NASA prime contractors, and 
increase the overall number of these entities that receive NASA 
contract and subcontract awards.
    4. In section 1819.7205, paragraphs (c) and (d) are removed, and 
paragraph (b) is revised to read as follows:


Sec. 1819.7205  General policy.

* * * * *
    (b) The Mentor-Protege program may be used in cost reimbursement 
type contracts and contracts that include an award fee incentive. Costs 
incurred by a mentor to provide the developmental assistance described 
in 1819.7214 are allowable. Except for cost-plus-award-fee contracts, 
such proposed costs shall not be included in the cost base used to 
develop a fee objective or to negotiate fee. On contracts with an award 
fee incentive, a contractor's Mentor-Protege efforts shall be evaluated 
under the award fee evaluations.
    5. Section 1819.7206 is revised to read as follows:


Sec. 1819.7206  Incentives for prime contractor participation.

    (a) Proposed mentor-protege efforts, except for the extent of 
participation of proteges as subcontractors, shall be evaluated under 
the Mission Suitability factor as a subfactor or element. The 
participation of SDB proteges as subcontractors shall be evaluated 
separately as a Mission Suitability subfactor (see FAR 15.304(c)(4) and 
19.1202). The participation of other categories of proteges as 
subcontractors may be evaluated separately as part of the evaluation of 
proposed subcontracted efforts.
    (b) Under contracts with award fee incentives, approved mentor 
firms shall be eligible to earn award fee associated with their 
performance as a mentor by performance evaluation period. For purposes 
of earning award fee, the mentor firm's performance shall be evaluated 
against the criteria described in the clause at 1852.219-79, Mentor 
Requirements and Evaluation. This award fee evaluation shall not 
include assessment of the contractor's achievement of FAR 52.219-9 
subcontracting plan SDB goals or proposed monetary targets for SDB 
subcontracting (see FAR 19.1203).
    6. In section 1819.7209, paragraphs (a)(1) and (b) are revised to 
read as follows:


Sec. 1819.7209  Protege firms.

    (a) * * *
    (1) An SDB in the SIC Major Groups as determined by the Department 
of

[[Page 10572]]

Commerce (see FAR 19.201(b)), HBCU, MI, or WOSB;
* * * * *
    (b) Except for SDBs, a protege firm may self-certify to a mentor 
firm that it meets the requirements set forth in paragraph (a) of this 
section. Mentors may rely in good faith on written representations by 
potential proteges that they meet the specified eligibility 
requirements. SDB status eligibility and documentation requirements are 
determined according to FAR 19.304.
* * * * *
    7. In section 1819.7210, paragraph (d) is removed and paragraph (c) 
is revised to read as follows:


Sec. 1819.7210  Selection of protege firms.

* * * * *
    (c) The selection of protege firms by mentor firms may not be 
protested, except for a protest regarding the size or eligibility 
status of an entity selected by a mentor to be a protege. Such protests 
shall be handled in accordance with FAR 19.703(b). The contracting 
officer shall notify the Headquarters Office of Small and Disadvantaged 
Business Utilization (OSDBU) (Code K) of the protest.
    8. In section 1819.7214, paragraph (i) is removed and paragraphs 
(e), (g), and (h) are revised to read as follows:


Sec. 1819.7214  Developmental assistance.

* * * * *
    (e) Advance payments. While a mentor can make advance payments to 
its proteges who are performing as subcontractors, the mentor will only 
be reimbursed by NASA for these costs if advance payments have been 
authorized in accordance with 1832.409-170;
* * * * *
    (g) Rent-free use of facilities and/or equipment; and
    (h) Temporary assignment of personnel to the protege for purpose of 
training.
    9. In section 1819.7215, paragraph (b) is revised to read as 
follows:


Sec. 1819.7215  Obligation.

* * * * *
    (b) Mentor and protege firms will submit a ``lessons learned'' 
evaluation to the NASA OSDBU at the conclusion of each NASA contract 
subject to the approved Mentor-Protege agreement.
    10. In section 1819.7216, paragraphs (a)(2), (a)(3), and (b) are 
revised to read as follows:


Sec. 1819.7216  Internal controls.

    (a) * * *
    (2) Reviewing any 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) Site visits to NASA installation where mentor-protege activity 
is occurring.
    (b) NASA may terminate mentor-protege agreements for good cause and 
exclude mentor or protege firms from participating in the NASA program. 
These actions shall be approved by the NASA OSDBU. NASA shall terminate 
an agreement by delivering to the contractor a Notice specifying the 
reason for termination and the effective date. Termination of an 
agreement does not constitute a termination of the subcontract between 
the mentor and the protege. A plan for accomplishing the subcontract 
effort should the agreement be terminated shall be submitted with the 
agreement as required in NFS 1819.7213(h).
    11. In section 1819.7217, paragraph (c) is revised to read as 
follows:


Sec. 1819.7217  Reports.

* * * * *
    (c) The NASA technical program manager shall include an assessment 
of the prime contractor's (mentor's) performance in the Mentor-Protege 
Program in a quarterly `Strengths and Weaknesses' evaluation report. A 
copy of this assessment will be provided to the OSDBU and the 
contracting officer.
* * * * *
    12. In section 1819.7219, paragraph (a) is revised to read as 
follows:


Sec. 1819.7219  Solicitation provision and contract clauses.

    (a) The contracting officer shall insert the clause at 1852.219-77, 
NASA Mentor-Protege Program, in:
    (1) Cost reimbursement solicitations and contracts, or 
solicitations and contracts with award fee incentives, that include the 
clause at FAR 52.219-9, Small Business Subcontracting Plan;
    (2) Small business set-asides of the contract types in (a)(1) of 
this section with values exceeding $500,000 ($1,000,000 for 
construction) that offer subcontracting opportunities.
* * * * *

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    13. In the clause to section 1852.219-77, paragraphs (a), (b) 
introductory text, and (b)(4) are revised to read as follows:


1852.219-77  NASA Mentor-Protege program.

* * * * *

NASA Mentor-Protege Program (March 1999)

    (a) Prime contractors, including certain small businesses, are 
encouraged to participate in the NASA Mentor-Protege Program for the 
purpose of providing developmental assistance to eligible protege 
entities to enhance their capabilities and increase their 
participation in NASA contracts.
    (b) The Program consists of:
* * * * *
    (4) In contracts with award fee incentives, potential for 
payment of additional fee for voluntary participation and successful 
performance in the Mentor-Protege Program.
* * * * *
    14. In the clause to section 1852.219-79, paragraphs (b) 
introductory text, (e), and (f) are revised to read as follows:


1852.219-79  Mentor requirements and evaluation.

* * * * *

Mentor Requirements and Evaluation (March 1999)

* * * * *
    (b) NASA will evaluate the contractor's performance on the 
following factors. If this contract includes an award fee incentive, 
this assessment will be accomplished as part of the fee evaluation 
process.
* * * * *
    (e) Mentor and protege firms will submit a ``lessons learned'' 
evaluation to the NASA OSDBU at the conclusion of the contract. At 
the end of each year in the Mentor-Protege Program, the mentor and 
protege, as appropriate, will formally brief the NASA Mentor-Protege 
program manager, the technical program manager, and the contracting 
officer during a formal program review regarding Program 
accomplishments as pertains to the approved agreement.
    (f) NASA may terminate mentor-protege agreements for good cause 
and exclude mentor or protege firms from participating in the NASA 
program. These actions shall be approved by the NASA OSDBU. NASA 
shall terminate an agreement by delivering to the contractor a 
Notice specifying the reason for termination and the effective date. 
Termination of an agreement does not constitute a termination of the 
subcontract between the mentor and the protege. A plan for 
accomplishing the subcontract effort should the agreement be 
terminated shall be submitted with the agreement as required in NFS 
1819.7213(h).

(End of clause)

[FR Doc. 99-5483 Filed 3-4-99; 8:45 am]
BILLING CODE 7510-01-P