[Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)]
[Rules and Regulations]
[Pages 54677-54679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23673]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 219 and Appendix I to Chapter 2

[Docket DARS-2018-0019]
RIN 0750-AJ25


Defense Federal Acquisition Regulation Supplement: Mentor-Protege 
Program Modifications (DFARS Case 2017-D016)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement sections of the 
National Defense Authorization Act for Fiscal Year 2017 that provide 
modifications to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program.

DATES: Effective October 31, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone 
571-372-6100.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 83 FR 
19677 on May 4, 2018, to implement section 1823 and paragraph (b) of 
section 1813 of the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017. Sections 1823 and 1813 provide modifications to 
the DoD Pilot Mentor-Prot[eacute]g[eacute] Program (``the Program''). 
Section 1823 revises the definition and

[[Page 54678]]

requirements associated with affiliation between mentor firms and their 
prot[eacute]g[eacute] firms. Both sections add new types of assistance 
for mentor firms to provide to their prot[eacute]g[eacute] firms.

II. Discussion and Analysis

    One respondent submitted a public comment in response to the 
proposed rule. DoD reviewed the public comment in the development of 
the final rule.

A. Summary of Significant Changes From the Proposed Rule

    There are no changes made to the final rule as a result of the 
public comment.

B. Analysis of Public Comments

    Comment: The respondent recommended a change to the proposed text 
in Appendix I, section I-107, paragraph (h). Specifically, the 
respondent proposed limiting the assistance to be provided by the 
mentor firm regarding Federal contract regulations to ``guidance in 
obtaining training to enable understanding Federal contract 
regulations'' instead of ``assistance the mentor will provide to the 
prot[eacute]g[eacute] firm in understanding Federal contract 
regulations'' as stated in the proposed rule. The rationale was that 
the text in the proposed rule could potentially expose the mentor firm 
to liability when inevitable misunderstandings occur due to the 
complexity of the regulations.
    Response: In drafting the text of I-107 paragraph (h), DoD used 
language that was very close to the text of section 1813 of the NDAA 
for FY 2017. The statutory language and, consequently, the draft DFARS 
text add to the mentor-prot[eacute]g[eacute] agreement an element in 
which the mentor will identify the assistance it will provide to the 
prot[eacute]g[eacute] in an effort to facilitate the 
prot[eacute]g[eacute]'s understanding of Federal contract regulations. 
Such assistance could include guidance in obtaining training on the 
regulations, but it also could include other forms of assistance.

C. Other Changes

    The final rule includes a minor editorial change. In section I-111, 
paragraph (e) is revised to update the reference to renumbered 
paragraphs in I-107.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This final rule does not add any new provisions or clauses or 
impact any existing provisions or clauses.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

V. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This final rule is necessary to implement statutory modifications 
to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program (``the 
Program''). This rule amends the Defense Federal Acquisition Regulation 
Supplement (DFARS) to implement section 1823 and paragraph (b) of 
section 1813 of the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017, which provide modifications to the Program. 
Specifically, section 1823 revises the definition and requirements 
associated with affiliation between mentor firms and their 
prot[eacute]g[eacute] firms. Both sections add new types of assistance 
for mentors to provide to their prot[eacute]g[eacute]s.
    There were no issues raised by the public in response to the 
initial regulatory flexibility analysis provided in the proposed rule.
    The rule will apply to small entities that participate in the 
Program. There are currently 72 small entities participating in the 
Program as prot[eacute]g[eacute] firms and six small entities 
participating as mentors.
    The rule does not impose any reporting or recordkeeping 
requirements on any small entities.
    DoD has not identified any alternatives that would meet the 
requirements of the applicable statute.

VII. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 219 and Appendix I to Chapter 2

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 219 and appendix I to chapter 2 are amended 
as follows:

0
1. The authority citation for 48 CFR part 219 and appendix I to chapter 
2 continues to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 219--SMALL BUSINESS PROGRAMS


219.7100  [Amended]

0
2. Amend section 219.7100 by removing ``November 25, 2015'' and adding 
``December 23, 2016'' in its place.

0
3. Amend appendix I to chapter 2 as follows:
0
a. In section I-101 by--
0
i. Redesignating sections I-101.1 through I-101.6 as sections I-101.2 
through I-101.7, respectively; and
0
ii. Adding new section I-101.1.
0
b. In section I-102 by--
0
i. Redesignating paragraphs (e) and (f) as paragraphs (f) and (g), 
respectively;
0
ii. Adding new paragraph (e); and
0
iii. In newly redesignated paragraph (f), removing ``Subpart 9.4'' and 
adding ``subpart 9.4'' in its place.
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c. In section I-106 by adding paragraph (d)(6)(v).
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d. In section I-107 by--
0
i. Redesignating paragraphs (h) through (o) as paragraphs (i) through 
(p), respectively; and
0
ii. Adding new paragraph (h).
0
e. Amending section I-111 by removing ``I-107(k) through (m)'' from 
paragraph (e) and adding ``I-107(l) through (n)'' in its place.
    The additions read as follows:

Appendix I to Chapter 2--Policy and Procedures for the DoD Pilot Mentor 
Prot[eacute]g[eacute] Program

* * * * *

I-101.1 Affiliation.

    With respect to a relationship between a mentor firm and a 
prot[eacute]g[eacute] firm, a relationship described under 13 CFR 
121.103.
* * * * *

[[Page 54679]]

I-102 Participant eligibility.

* * * * *
    (e) A mentor firm may not enter into an agreement with a 
prot[eacute]g[eacute] firm if SBA has made a determination of 
affiliation. If SBA has not made such a determination and if the DoD 
Office of Small Business Programs (OSBP) has reason to believe, 
based on SBA's regulations regarding affiliation, that the mentor 
firm is affiliated with the prot[eacute]g[eacute] firm, then DoD 
OSBP will request a determination regarding affiliation from SBA.
* * * * *

I-106 Development of mentor-prot[eacute]g[eacute] agreements.

* * * * *
    (d) * * *
    (6) * * *
    (v) Women's business centers described in section 29 of the 
Small Business Act (15 U.S.C. 656).
* * * * *

I-107 Elements of a mentor-prot[eacute]g[eacute] agreement.

* * * * *
    (h) The assistance the mentor will provide to the 
prot[eacute]g[eacute] firm in understanding Federal contract 
regulations, including the FAR and DFARS, after award of a 
subcontract under the Program, if applicable;
* * * * *
[FR Doc. 2018-23673 Filed 10-30-18; 8:45 am]
 BILLING CODE 5001-06p-P