[Federal Register Volume 74, Number 140 (Thursday, July 23, 2009)]
[Notices]
[Pages 36487-36489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17584]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary


Acquisition Regulations in Fiscal Year 2009

AGENCY: Department of Health and Human Services (HHS).

ACTION: Notice.

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SUMMARY: The Department of Health and Human Services (HHS) is 
interested in encouraging HHS prime contractors to assist small 
businesses, small disadvantaged businesses, HUBZone businesses, 
veteran-owned businesses, service-disabled veteran-owned businesses, 
and woman-owned businesses, in enhancing their capabilities to perform 
contracts and subcontracts for HHS and other Federal agencies. The 
program seeks to provide a Mentor-Prot[eacute]g[eacute] Program that 
assists qualified small businesses to receive development assistance 
from HHS prime contractors in order to increase the base of small 
business eligible to perform HHS contracts and subcontracts.

DATES: The Department of Health and Human Services (HHS) is proposing 
to amend its acquisition regulations in Fiscal Year 2009. Due dates for 
written comments on the proposed rulemaking will be published at that 
time. The intent of this notice is to publicize the HHS' proposed 
mentor-prot[eacute]g[eacute] program, specific solicitation and 
contract guidance will be included in the proposed rulemaking.
    To be assured consideration, comments must be received at one of 
the addresses provided below, no later than 5 p.m. on August 24, 2009.

ADDRESSES: In commenting, please refer to the HHS Mentor-
Prot[eacute]g[eacute] Program. You may submit comments in one of four 
ways (please choose only one of the ways listed):
    1. By facsimile (FAX) transmission. You may submit FAX comments on 
this notice to (202) 260-4872.
    2. Electronically. You may submit electronic comments on this 
notice to [email protected].

[[Page 36488]]

    3. By express or overnight mail. You may send written comments to 
the following address ONLY: Department of Health and Human Services, 
Office of Small and Disadvantaged Business Utilization, 200 
Independence Ave, SW., Hubert H. Humphrey Building, Room 360G, 
Washington, DC 20201.
    Please allow sufficient time for mailed comments to be received 
before the close of the comment period.
    4. By regular mail. You may send written comments to the following 
address only: Department of Health and Human Services, Office of Small 
and Disadvantaged Business Utilization, 200 Independence Ave, SW., 
Hubert H. Humphrey Building, Room 360G, Washington, DC 20201. Please 
allow sufficient time for mailed comments to be received before the 
close of the comment period.

FOR FURTHER INFORMATION CONTACT: Nelia K. Holder, Office of Small and 
Disadvantaged Business Utilization, telephone (202) 690-6286, e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: 
    On September 15, 2008, the Office of Small and Disadvantaged 
Business Utilization (OSDBU) commissioned an assessment of existing 
Mentor-Prot[eacute]g[eacute] programs and the feasibility of such a 
program for HHS. The assessment concluded that opportunities exist in 
such programs to actually encourage meaningful and successful business 
development between Mentors and Prot[eacute]g[eacute]s. Mentor-
Prot[eacute]g[eacute] arrangements represent opportunities for creating 
access for small business, small disadvantaged business, veteran-owned 
small business, service-disabled veteran-owned small business, HUBZone 
small business, and woman-owned small business to HHS contracts and 
awards. The OSDBU believes that Mentor-Prot[eacute]g[eacute] programs 
will afford small and disadvantaged business opportunities to develop 
their capacity and competencies. Review and analysis of existing 
Mentor-Prot[eacute]g[eacute] programs in the public sector conclude 
that they are effective against the problems related to small business 
and minority sub-contracting.
    This program is similar to those established by other federal 
agencies such as the Department of Homeland Security and Department of 
Treasury. An assessment of best practices in Mentor-
Prot[eacute]g[eacute] programs identified certain clear benefits for 
all parties involved. A successful Program may enable HHS to receive a 
lower price offer from less expensive Mentor-Prot[eacute]g[eacute] 
teams. HHS acknowledges that a structured Mentor-Prot[eacute]g[eacute] 
program provides an opportunity for dual benefits where small and 
disadvantaged businesses are developed to become prime contractors and 
technically capable sub-contractors. More importantly, the Program 
provides a degree of confidence to Program Officers that the Mentor 
firm stands behind the work of the Prot[eacute]g[eacute] firm. 
Therefore, risks associated with the performance of the small and 
disadvantaged businesses are mitigated.

    Dated: July 17, 2009.
Debbie Ridgely,
Director, OSDBU, ASAM/OS.

1.0 The HHS Mentor-Prot[eacute]g[eacute] Program

1.1 Scope

    The HHS mentor-prot[eacute]g[eacute] program is designed to 
motivate and encourage large business prime contractor firms to 
provide mutually beneficial developmental assistance to small 
business, veteran-owned small business, service-disabled veteran-
owned small business, HUBZone small business, small disadvantaged 
business, and woman-owned small business concerns. The program is 
also designed to improve the performance of HHS contracts and 
subcontracts, foster the establishment of long-term business 
relationships between HHS large prime contractors and small business 
subcontractors, and strengthen subcontracting opportunities and 
accomplishments at HHS.

1.2 Definitions

    (a) MENTOR, as used in the Mentor-Prot[eacute]g[eacute] Program, 
means a large business concern that demonstrates the commitment and 
capability to assist in the development of a small business 
prot[eacute]g[eacute].
    (b) PROT[Eacute]G[Eacute], as used in the Mentor-
Prot[eacute]g[eacute] Program, means a small business concern that 
is independently owned and operated, not dominant in its field, and 
meets federal size standards in its primary NAICS code. This 
includes small business, veteran-owned small business, service-
disabled veteran-owned small business, HUBZone small business, small 
disadvantaged business, and woman-owned small business concerns.

1.3 Non-Affiliation

    For the purpose of qualifying as a small business as defined in 
Section 1.2, a prot[eacute]g[eacute] firm may not be considered an 
affiliate of a mentor firm solely on the basis that the 
prot[eacute]g[eacute] firm is receiving developmental assistance 
from the mentor firm under this program.

1.4 General Policy

    (a) Eligible large businesses (not included on the ``Debarred'' 
list) approved as mentor firms will enter into agreements with 
eligible entities as defined in Section 1.2 as 
prot[eacute]g[eacute]s. Mentors will provide appropriate 
developmental assistance to enhance the capabilities of 
prot[eacute]g[eacute]s to perform as prime contractors and/or 
subcontractors.
    (b) Mentor-Prot[eacute]g[eacute] activity will be available to 
any type of contract deemed appropriate by HHS when the requirement 
for a subcontracting plan is anticipated.

1.5 Incentives for Mentor Participation

    (a) Mentors may receive additional evaluation points (for 
Mentor-Prot[eacute]g[eacute] Program participation) toward the award 
of contracts during the evaluation of competitive offers.
    (b) Mentors may receive credit toward attaining subcontracting 
goals contained in the HHS subcontracting plan(s) for Mentor-
Prot[eacute]g[eacute] participation on a dollar by dollar basis by 
counting prot[eacute]g[eacute] developmental assistance costs in 
their various small business subcontracting categories, as 
appropriate, in addition to traditional subcontracts.
    (c) Mentors will be eligible for an annual non-monetary award 
presented to the mentor firm providing the most effective 
developmental support to a prot[eacute]g[eacute] at the conclusion 
of the 36-month Mentor-Prot[eacute]g[eacute] Agreement. The OSDBU, 
in consultation with senior HHS management, will solicit nominations 
from participating mentors and determine the award winner.

1.6 Measurement of Program Success

    The overall success of the HHS Mentor-Prot[eacute]g[eacute] 
program, encompassing all participating mentors and 
prot[eacute]g[eacute]s will be measured by the extent to which it 
results in:
    (a) An increase in the quality of the technical capabilities of 
the prot[eacute]g[eacute] firm.
    (b) An increase in the number and dollar value of contract and 
subcontract awards to prot[eacute]g[eacute] firms since the time of 
their entry into the program attributable to the mentor-
prot[eacute]g[eacute] relationship (under HHS contracts, contracts 
awarded by other Federal agencies and under commercial contracts).

1.7 Mentor Firms

    (a) Large firms eligible for receipt of federal contracts may 
apply.
    (b) Mentors will be encouraged to identify and select:
    (1) A broad base of small business firms whose core competencies 
support the HHS mission; and
    (2) Prot[eacute]g[eacute]s in addition to firms with whom they 
have established business relationships.
    (c) Mentors may have multiple prot[eacute]g[eacute]s. Mentors 
participating in the Mentor-Prot[eacute]g[eacute] programs in 
addition to the HHS program should maintain a system for preparing 
separate reports of mentoring activity for each agency's program.

1.8 Prot[eacute]g[eacute] Firms

    (a) For selection as a prot[eacute]g[eacute], a firm must be:
    (1) Eligible as defined in Section 1.2 and
    (2) Eligible for receipt of government contracts.
    (b) A prot[eacute]g[eacute] firm may declare to a mentor firm 
that it meets the requirements set forth in paragraph (a) of this 
section. Mentor firms may rely in good faith on written business 
declarations consistent with the guidance cited in FAR 52.219-1 by 
potential prot[eacute]g[eacute]s as evidence of eligibility to 
participate.
    (c) The prot[eacute]g[eacute] may not have more than one mentor 
at a time. However, prot[eacute]g[eacute]s participating in Mentor-
Prot[eacute]g[eacute] programs in

[[Page 36489]]

addition to the HHS program should maintain a system for preparing 
separate reports of mentoring activity for each agency's program.

1.9 Selection of Prot[eacute]g[eacute] Firms

    (a) Mentor firms will be solely responsible for selecting 
prot[eacute]g[eacute] firms. The mentor is encouraged to identify 
and select the types of prot[eacute]g[eacute] firms listed in 
Section 1.8.
    (b) The selection of prot[eacute]g[eacute] firms by mentor firms 
may not be protested, except as in paragraph (c) of this section.
    (c) Any dispute regarding the size or eligibility status of an 
entity selected by a mentor to be a prot[eacute]g[eacute] shall be 
referred to the HHS OSDBU for referral to SBA for resolution.

1.10 Application and Agreement Process for Mentor-
Prot[eacute]g[eacute] Teams To Participate in the Program

    (a) Firms interested in becoming approved mentor-
prot[eacute]g[eacute] participants must submit a joint written HHS 
Mentor-Prot[eacute]g[eacute] Agreement to the OSDBU for review and 
approval. The Mentor-Prot[eacute]g[eacute] Agreement will be 
evaluated on the extent to which the mentor firm plans to provide 
developmental assistance. The information required in Section 1.10 
(b) may be submitted electronically or in hard copy to be considered 
for approval of the Mentor-Prot[eacute]g[eacute] Agreement.
    (b) The Mentor-Prot[eacute]g[eacute] Agreement must contain:
    (1) Name and address of mentor and prot[eacute]g[eacute] firm 
and a point of contact within both firms who will oversee the 
agreement;
    (2) A statement from the prot[eacute]g[eacute] representing that 
the firm is currently eligible as a small business to participate in 
the Mentor-Prot[eacute]g[eacute] program;
    (3) A description of the type of developmental program that will 
be provided by the mentor firm to the prot[eacute]g[eacute] firm, to 
include a description of the subcontract work;
    (4) A schedule with milestones for providing assistance;
    (5) Criteria for evaluation of the prot[eacute]g[eacute]'s 
developmental success to measure the effectiveness of the 
capabilities and how the mentor's assistance will potentially 
increase contracting and subcontracting opportunities for the 
prot[eacute]g[eacute] firm;
    (6) An estimate of the total cost provided to the 
prot[eacute]g[eacute] by the mentor;
    (7) Program participation term of 36 months with a mid-term 
review at the 18 month interval;
    (8) A listing of the anticipated number and types of 
subcontracts to be awarded to the prot[eacute]g[eacute] firm;
    (9) Termination procedures including procedures for the mentor 
firm to notify the prot[eacute]g[eacute] firm, OSDBU, and the 
contracting officer, in writing, at least 30 days in advance of the 
mentor firm's intent to voluntarily withdraw from the program; and 
the procedures for a prot[eacute]g[eacute] firm to notify the mentor 
firm in writing at least 30 days in advance of the 
prot[eacute]g[eacute] firm's intent to voluntarily terminate the 
Mentor-Prot[eacute]g[eacute] Agreement;
    (10) Plan for accomplishing work should the agreement be 
terminated;
    (11) Other terms and conditions as appropriate;
    (12) Signed agreement with signatures and dates.

1.11 HHS Review and Approval of Mentor-Prot[eacute]g[eacute] 
Application and Agreement

    (a) The information specified in Section 1.10 is reviewed by the 
HHS OSDBU. This review will be completed no later than 45 days after 
receipt by the OSDBU, and written approval of the Mentor-
Prot[eacute]g[eacute] Agreement will be provided to each party.
    (b) Upon agreement approval, the mentor may implement the 
development assistance program.
    (c) If the application is disapproved, the mentor-
prot[eacute]g[eacute] team may provide additional information for 
reconsideration. The review of any supplemental material will be 
completed within 30 days after receipt by the OSDBU.

1.12 Developmental Assistance

    The forms of developmental assistance a mentor firm can provide 
to a prot[eacute]g[eacute] firm include:
    (a) Management guidance related to--
    (1) Financial management
    (2) Organizational management
    (3) Overall business management/planning
    (4) Business development
    (b) Technical assistance
    (c) Rent-free use of facilities and/or equipment
    (d) Temporary assignment of personnel to the 
prot[eacute]g[eacute] firm for the purpose of training
    (e) Property
    (f) Loans
    (g) Any other types of mutually beneficial assistance.

1.13 Obligation

    (a) Mentor or prot[eacute]g[eacute] firms may voluntarily 
withdraw from the program as mutually agreed to by both the mentor 
and prot[eacute]g[eacute] firms. However, in no event shall such 
withdrawal impact the program mission and contract requirements 
under the prime contract.
    (b) Mentor and prot[eacute]g[eacute] firms shall submit a 
``lessons learned'' evaluation to the HHS OSDBU at the conclusion of 
their effort.

1.14 Internal Controls

    The HHS OSDBU, in conjunction with the HHS small business 
specialists, will manage the program. Internal controls will be 
established by the HHS OSDBU to achieve the stated program 
objectives (by serving as checks and balances against undesired 
actions or consequences) such as:
    (a) Reviewing and evaluating mentor applications for realism, 
validity, and accuracy of information provided;
    (b) Conducting a mid-term evaluation at an 18-month interval 
(out of a 36-month agreement) to measure prot[eacute]g[eacute] 
progress against the developmental plan contained in the approved 
agreement; and
    (c) Site visits, as appropriate, where Mentor-
Prot[eacute]g[eacute] activity is on-going.

1.15 Reports

    A written progress report shall be submitted by the mentor-
prot[eacute]g[eacute] team to the HHS OSDBU at the mid-term (18 
months) of the 36-month Mentor-Prot[eacute]g[eacute] Agreement.

1.16 Program Review

    (a) At the conclusion of the mid-term 18-month period of the 
Mentor-Prot[eacute]g[eacute] Program (out of a 36-month agreement), 
the mentor/large prime contractor and prot[eacute]g[eacute]/small 
business shall formally brief the HHS OSDBU regarding program 
accomplishments as pertains to the approved agreement.
    (b) Mentor and prot[eacute]g[eacute] firms shall submit a 
``lessons-learned'' evaluation to the HHS OSDBU at the conclusion of 
their effort.

[FR Doc. E9-17584 Filed 7-22-09; 8:45 am]
BILLING CODE 4151-17-P