[Federal Register Volume 87, Number 39 (Monday, February 28, 2022)]
[Proposed Rules]
[Pages 11009-11013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04012]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Chapter 2

[Docket DARS-2022-0002]
RIN 0750-AK96


Defense Federal Acquisition Regulation Supplement: 
Reauthorization and Improvement of Mentor-Prot[eacute]g[eacute] Program 
(DFARS Case 2020-D009)

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

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a section of the National 
Defense Authorization Act for Fiscal Year 2020 that reauthorizes and 
modifies the DoD Mentor-Prot[eacute]g[eacute] Program.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before April 29, 2022 to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS 2020-D009, using any of 
the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for ``DFARS Case 2020-D009'' in the search box and select 
``Search.'' Select ``Comment'' and follow the instructions to submit a 
comment. Please include your name, company name (if any), and ``DFARS 
Case 2020-D009'' on any attached document.
    [cir] Email: [email protected]. Include DFARS Case 2020-D009 in 
the subject line of the message.
    Comments received generally will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Ms. Jeanette Snyder, 571-372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to revise the DFARS to implement section 872 of 
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 
(Pub. L. 116-92). Section 872 modifies subsection (j) of section 831 of 
the NDAA for FY 1991 (Pub. L. 101-510; 10 U.S.C. 2302 note) to 
reauthorize and improve the DoD Mentor-Prot[eacute]g[eacute] Program. 
Section 872 extends the date for entering into a mentor-
prot[eacute]g[eacute] agreement, extends the date for reimbursement of 
mentors, limits the term for program participation, extends the date 
for a mentor to receive credit toward the attainment of small business 
subcontracting goals, and expands eligibility for prot[eacute]g[eacute] 
firms.

II. Discussion and Analysis

    This proposed rule includes changes to DFARS subpart 219.71 and 
DFARS appendix I to implement section 872 of the NDAA for FY 2020 to 
reauthorize and improve the DoD Mentor-Prot[eacute]g[eacute] Program 
(the Program). This proposed rule--

--Reauthorizes the Program by extending the date for entering into a 
mentor-prot[eacute]g[eacute] agreement from September 30, 2018, to 
September 30, 2024;
--Extends the date for mentor reimbursements to be paid for 
developmental assistance costs incurred under the Program from 
September 30, 2021, to September 30, 2026;
--Extends the date for a mentor to receive, for developmental 
assistance costs incurred under the Program, credit toward attainment 
of the subcontracting goals in its small business subcontracting plan 
from September 30, 2021, to September 30, 2026;
--Limits the program participation term to two years, unless approval 
is otherwise obtained for an additional period not to exceed three 
years;
--Expands the eligibility of a prot[eacute]g[eacute] by aligning its 
size with the size standard of its primary North American Industry 
Classification System (NAICS) code; and
--Adds a DoD Office of Small Business Programs cybersecurity readiness 
assessment that will be provided to prot[eacute]g[eacute]s.

    In addition, proposed amendments to appendix I include--

--Updated definitions to align with the statute;
--Addition of DoD's right to terminate agreements for convenience; and
--Other administrative and conforming changes.

[[Page 11010]]

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

    This rule does not create any new solicitation provisions or 
contract clauses. It does not impact any existing provisions or clauses 
or their applicability to contracts at or below the simplified 
acquisition threshold, acquisitions of commercial products including 
commercially available off-the-shelf items, and acquisitions of 
commercial services.

IV. Expected Impact of the Rule

    This rule reauthorizes and improves the DoD Mentor-
Prot[eacute]g[eacute] program. The purpose of the program is to provide 
incentives to major DoD contractors to furnish eligible small business 
concerns with assistance designed to--
    (1) Enhance the capabilities of small business concerns to perform 
as subcontractors and suppliers under DoD contracts and other contracts 
and subcontracts; and
    (2) Increase the participation of such business concerns as 
subcontractors and suppliers under DoD contracts, other Federal 
Government contracts, and commercial contracts.
    Therefore, this rule will benefit small business concerns by 
extending the opportunity to enter into DoD mentor-
prot[eacute]g[eacute] agreements. In addition, the eligibility of small 
business concerns is expanded as this rule removes prior restrictions 
for eligibility by aligning the size of the small business with the 
size standard associated with its primary NAICS code. This rule is 
expected to benefit large entities and the Government, as well, by 
expanding the defense industrial base.

V. 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.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. This rule is not 
anticipated to be a major rule under 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    DoD does not expect this proposed rule to 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 this rule is expected to impact a limited number of small 
entities. However, an initial regulatory flexibility analysis has been 
performed and is summarized as follows:
    This proposed rule is necessary in order to implement section 872 
of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 
2020 (Pub. L. 116-92). Section 872 modifies subsection (j) of section 
831 of the NDAA for FY 1991 (Pub. L. 101-510; 10 U.S.C. 2302 note) to 
reauthorize and improve the DoD Mentor-Prot[eacute]g[eacute] Program 
(the Program).
    The objective of this rule is to implement the reauthorization and 
improvements to the Program authorized by section 872. The authority 
for entering into new agreements expired on September 30, 2018. This 
rule extends the date for new mentor-prot[eacute]g[eacute] agreements 
to September 30, 2024. In addition, the date for reimbursement of 
incurred costs under the Program is extended to September 30, 2026, as 
is the date for costs to be applied to a mentor's subcontracting goals 
under its small business subcontracting plan. The eligibility of a 
small business concern, as related to the Program, is modified to align 
with the size standard associated with its primary NAICS code. The 
legal basis for the rule is section 872 of the NDAA for FY 2020.
    The number of ongoing DoD mentor-prot[eacute]g[eacute] agreements 
in FY 2018 and FY 2019 was 90, four of which expired in FY 2019. No new 
agreements were entered into in FY 2019 since the authority to enter 
into agreements expired on September 30, 2018. The number of ongoing 
agreements in FY 2020 was 86, 29 of which expired. As of June 2021, 
there were 57 ongoing agreements, 50 new agreements, and 12 expiring 
agreements, with a total of 95. DoD estimates 66 new agreements will be 
entered into in FY 2022, 82 in FY 2023, and 98 in FY 2024.
    This rule does not impose any new reporting, recordkeeping, or 
other compliance requirements for small entities.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    DoD did not identify any significant alternatives that would 
minimize or reduce the impact on small entities. Any impact is expected 
to be beneficial.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2020-D009), in 
correspondence.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; 
however, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved under OMB Control Number 0704-0332.

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

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

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

PART 219--SMALL BUSINESS PROGRAMS

0
1. The authority citation for 48 CFR part 219 is revised to read as 
follows:

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

0
2. Revise section 219.7100 to read as follows:


219.7100   Scope.

    This subpart implements the Pilot Mentor-Prot[eacute]g[eacute] 
Program (referred to as the Program) established under section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 
101-510; 10 U.S.C. 2302 note). The purpose of the Program is to provide 
incentives for DoD contractors to assist prot[eacute]g[eacute] firms in 
enhancing

[[Page 11011]]

their capabilities and to increase participation of such firms in 
Government and commercial contracts.
0
3. Amend section 219.7102 by--
0
a. In paragraphs (a) and (b), removing the periods and adding 
semicolons in their places;
0
b. Redesignating paragraph (c) as paragraph (d);
0
c. Adding a new paragraph (c); and
0
d. Revising newly redesignated paragraphs (d) introductory text and 
(d)(1)(ii).
    The addition and revisions read as follows:


219.7102   General.

* * * * *
    (c) A preliminary assessment of the prot[eacute]g[eacute] firm's 
cybersecurity readiness. The DoD Office of Small Business Programs 
(OSBP), Office of the Under Secretary of Defense, Acquisition and 
Sustainment (OUSD (A&S)), provides this preliminary assessment, which 
is a benefit of program participation; and
    (d) Incentives that DoD may provide to mentor firms, which 
include--
    (1) * * *
    (ii) A separate contract, upon written determination by the 
Director, OSBP, of the cognizant military department or defense agency 
that unusual circumstances justify reimbursement using a separate 
contract; or
* * * * *
0
4. Revise section 219.7103-1 to read as follows:


219.7103-1   General.

    The procedures for application, acceptance, and participation in 
the Program are in appendix I, Policy and Procedures for the DoD Pilot 
Mentor-Prot[eacute]g[eacute] Program. The Mentor-Prot[eacute]g[eacute] 
Program Director, OSBP, OUSD (A&S), has the authority to approve 
contractors as mentor firms. The Director, OSBP, of each military 
department or defense agency has the authority to approve mentor-
prot[eacute]g[eacute] agreements and forward approved mentor-
prot[eacute]g[eacute] agreements to the contracting officer when 
funding is available.
    5. Amend section 219.7103-2 by--
0
a. In the introductory text, removing ``must'' and adding ``shall'' in 
its place; and
0
b. Revising paragraphs (d)(1), (e)(3), (f), and (h).
    The revisions read as follows:


219.7103-2   Contracting officer responsibilities.

* * * * *
    (d) * * *
    (1) A DoD program manager or the Director, OSBP, of the cognizant 
military department or defense agency has made funds available for that 
purpose; and
* * * * *
    (e) * * *
    (3) The Director, OSBP, of the military department or defense 
agency has made a determination in accordance with 219.7102(d)(1)(ii).
    (f) Not authorize reimbursement for costs of assistance furnished 
to a prot[eacute]g[eacute] firm in excess of $1 million in a fiscal 
year unless a written determination from the Director, OSBP, of the 
military department or defense agency is obtained.
* * * * *
    (h) Provide a copy of the approved mentor-prot[eacute]g[eacute] 
agreement to the Defense Contract Management Agency (DCMA) small 
business professional responsible for conducting the annual performance 
review (see appendix I, section I-113).


219.7104   [Amended]

0
6. Amend section 219.7104 in paragraphs (b) and (d) by removing 
``September 30, 2021'' and adding ``September 30, 2026'' in its place.


219.7106   [Amended]

0
7. Amend section 219.7106 by removing ``The Defense Contract Management 
Agency'' and adding ``DCMA'' in its place.

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

0
9. Add an authority citation at the end of appendix I to chapter 2 to 
read as follows:

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

0
10. Amend appendix I to chapter 2 by--
0
a. In section I-100--
0
i. Revising paragraph (a) introductory text;
0
ii. In paragraph (c)(1), removing ``2 years'' and adding ``5 years'' in 
its place;
0
iii. Revising paragraph (c)(3); and
0
iv. Adding paragraph (c)(4).
0
b. Revising section I-101.
0
c. In section I-102--
0
i. In paragraph (a)(2)(ii), removing the word ``and'' at the end of the 
paragraph;
0
ii. Adding paragraph (a)(2)(iv);
0
iii. Revising paragraph (a)(3);
0
iv. In paragraph (b)(3), removing ``Less than half'' and adding ``Not 
more than'' in its place;
0
v. In paragraph (e), removing ``Office of Small Business Programs 
(OSBP)'' and adding ``OSBP'' in its place;
0
vi. In paragraph (g)(1), removing ``pursuant to approved mentor-
prot[eacute]g[eacute] agreements'' and adding ``in accordance with the 
approved mentor-prot[eacute]g[eacute] agreement'' in its place;
0
vii. In paragraph (g)(3), removing ``cognizant Component Director, 
SBP'' and adding ``Director, OSBP, of the cognizant military department 
or defense agency'' in its place; and
0
viii. Adding paragraph (h).
0
d. In section I-103--
0
i. In paragraph (a), removing ``September 30, 2018'' and adding 
``September 30, 2024'' in its place;
0
ii. In paragraph (b) introductory text, removing ``prior to September 
30, 2021'' and adding ``through September 30, 2026'' in its place; and
0
iii. In paragraph (b)(3), removing ``cognizant Component Director, 
SBP,'' and adding ``Director, OSBP, of the cognizant military 
department or defense agency'' in its place.
0
e. In section I-104, revising paragraph (c).
0
f. In section I-105, revising paragraphs (a) and (c).
0
g. In section I-106--
0
i. In paragraph (d)(1)(i), removing ``marketing'' and adding 
``marketing and technology commercialization, compliance systems'' in 
its place;
0
ii. In paragraph (d)(1)(ii), removing ``quality assurance'' and adding 
``quality assurance; acquisition or transfer of hardware, tooling, or 
software; and technology transfer and transition'' in its place;
0
iii. In paragraph (d)(2), removing ``firmunder'' and adding ``firm 
under'' in its place;
0
iv. In paragraph (d)(4), removing ``Subpart'' and adding ``subpart'' in 
its place; and
0
v. Adding paragraph (g).
0
h. In section I-107--
0
i. In paragraph (a), removing ``email'' and adding ``email'' in its 
place;
0
ii. In paragraph (j), removing ``2 years'' and adding ``5 years'' in 
its place; and
0
iii. Revising paragraph (k).
0
i. In section I-108--
0
i. In paragraph (a) introductory text, removing ``DoD component'' and 
adding ``military department or defense agency'' in its place;
0
ii. In paragraph (a)(5), removing ``3 years (Term of agreements may not 
exceed 5 years)'' and adding ``2 years (agreements may not exceed 5 
years) (see I-107(k))'' in its place;
0
iii. In paragraph (a)(6), removing ``$1,000,000'' and adding ``$1 
million'' in its place;
0
iv. In paragraph (b), removing ``cognizant DoD components'' and adding 
``the military department or defense agency'' in its place;
0
v. In paragraph (c), removing ``cognizant Component Director, SBP, 
prior'' and adding ``Director, OSBP, of

[[Page 11012]]

the military department or defense agency prior'' in its place;
0
vi. In paragraph (d), removing ``cognizant DoD component'' and adding 
``military department or defense agency'' in its place;
0
vii. In paragraph (e), removing ``component'' and ``Director, SBP'' and 
adding ``military department or defense agency'' and ``the Director, 
OSBP'' in their places, respectively; and
0
viii. In paragraph (f), removing ``cognizant Component Director, SBP,'' 
and adding ``Director, OSBP, of the military department or defense 
agency'' in its place.
0
j. In section I-109--
0
i. In the introductory text, removing ``agreements'' and adding 
``agreements including agreements that provide for both reimbursement 
and subcontracting credit'' in its place;
0
ii. In paragraph (c), removing ``Component Directors, SBP'' and adding 
``Directors, OSBP, of the military departments or defense agencies'' in 
its place; and
0
iii. In paragraph (d), removing ``$1,000,000'' and ``cognizant 
Component Director, SBP'' wherever they appear and adding ``$1 
million'' and ``Director, OSBP, of the military department or defense 
agency'' in their places, respectively.
0
k. In section I-110, adding introductory text.
0
l. In section I-110.1, paragraph (a), removing ``Plans .'' and adding 
``Plans.'' in its place.
0
m. In section I-110.2, paragraphs (a) introductory text, (b) 
introductory text, and (c), removing ``SBP'' and adding ``OSBP'' in its 
place.
0
n. In section I-111--
0
i. In paragraph (a), removing ``cognizant Component Director, SBP,'' 
and ``administrative contracting officer'' and adding ``Director, OSBP, 
of the cognizant military department or defense agency'' and ``small 
business professional'' in their places, respectively; and
0
ii. Adding paragraph (f).
0
o. In section I-112.2--
0
i. In paragraph (a)(2)(xii)(A), removing ``success assistance'' and 
adding ``success developmental assistance'' in its place;
0
ii. In paragraph (a)(2)(xii)(B), removing ``contracts'' and adding 
``contracts, including but not limited to the transition of innovative 
technology into a program of record'' in its place;
0
iii. In paragraph (a)(4), removing ``at: http://www.acq.osd.mil/osbp/
sb/programs/mpp/resources.shtml'' and adding ``at https://business.defense.gov/Programs/Mentor-Prot[eacute]g[eacute]-Program/MPP-
Resources/'' in its place;
0
iv. In paragraph (b)(2), removing ``2 fiscal years'' and adding ``5 
fiscal years'' in its place;
0
v. In paragraph (d)(1), removing ``cognizant Component Director, SBP,'' 
and adding ``Director, OSBP, of the military department or defense 
agency'' in its place; and
0
vi. In paragraph (d)(2), removing ``cognizant Component Director, 
SBP,'' and adding ``Director, OSBP, of the military department or 
defense agency,'' in its place.
0
p. Revising section I-113.
    The revisions and additions read as follows:

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

I-100 Purpose

    (a) This appendix implements the Pilot Mentor-Prot[eacute]g[eacute] 
Program (the Program) established under section 831 of the National 
Defense Authorization Act for Fiscal Year 1991 (Pub. L. 101-510; 10 
U.S.C. 2302 note). The purpose of the Program is to provide incentives 
to major DoD contractors to furnish eligible small business concerns 
with assistance designed to--
* * * * *
    (c) * * *
    (3) An increase in prot[eacute]g[eacute] participation in DoD 
science and technology programs; and
    (4) An increase in job creation of prot[eacute]g[eacute] firms from 
the date of execution of the mentor-prot[eacute]g[eacute] agreement 
until 5 years after completion of the mentor-prot[eacute]g[eacute] 
agreement.
* * * * *

I-101 Definitions

    As used in this appendix--
    Affiliation means, with respect to a relationship between a mentor 
firm and a prot[eacute]g[eacute] firm, a relationship described under 
13 CFR 121.103.
    Eligible entity employing the severely disabled means a business 
entity operated on a for-profit or nonprofit basis that--
    (1) Uses rehabilitative engineering to provide employment 
opportunities for severely disabled individuals and integrates severely 
disabled individuals into its workforce;
    (2) Employs severely disabled individuals at a rate that averages 
not less than 20 percent of its total workforce;
    (3) Employs each severely disabled individual in its workforce 
generally on the basis of 40 hours per week; and
    (4) Pays not less than the minimum wage prescribed pursuant to 
section 6 of the Fair Labor Standards Act (29 U.S.C. 206) to those 
employees who are severely disabled individuals.
    Minority institution of higher education means an institution of 
higher education with a student body that reflects the composition 
specified in sections 312(b)(3), (4), and (5) of the Higher Education 
Act of 1965 (20 U.S.C. 1058(b)(3), (4), and (5)).
    Service-disabled veteran-owned small business means a small 
business concern owned and controlled by service-disabled veterans as 
defined in section 8(d)(3) of the Small Business Act (15 U.S.C. 
637(d)(3)).
    Severely disabled individual means an individual who is blind or 
severely disabled as defined in 41 U.S.C. 8501.
    Women-owned small business means a small business concern owned and 
controlled by women as defined in section 8(d)(3)(D) of the Small 
Business Act (15 U.S.C. 637(d)(3)(D)).

I-102 Participant Eligibility

    (a) * * *
    (2) * * *
    (iv) Is an other than small business concern, unless approved by 
the Director of the Office of Small Business Programs (OSBP), Office of 
the Under Secretary of Defense, Acquisition and Sustainment (OUSD 
(A&S)), in accordance with 13 CFR 121.103 regarding ``affiliation and 
relationship''; and
    (3) Be capable of imparting value to a prot[eacute]g[eacute] firm 
because of experience gained as a DoD contractor or through knowledge 
of general business operations and Government contracting, as 
demonstrated by evidence that such entity--
    (i) Received DoD contracts and subcontracts equal to or greater 
than $100 million during the previous fiscal year;
    (ii) Is a prime contractor to DoD with an active subcontracting 
plan; or
    (iii) Has graduated from the 8(a) Business Development Program and 
provides documentation of its ability to serve as a mentor.
* * * * *
    (h) Within 30 days of any change in status affecting eligibility, 
mentors and prot[eacute]g[eacute]s must give notice and explanation of 
pertinent facts to each other, the Director of OSBP, OUSD (A&S), and 
the Director, OSBP, of the military department or defense agency.
* * * * *

I-104 Selection of Prot[eacute]g[eacute] Firms

* * * * *
    (c) Any interested party may file a protest of the selection of a 
prot[eacute]g[eacute] firm directly with the Director, OSBP, OUSD

[[Page 11013]]

(A&S) or the Director, OSBP, of the cognizant military department or 
defense agency. In the event of a protest regarding the size or status 
of an entity selected to be a prot[eacute]g[eacute] firm, the Director, 
OSBP, OUSD (A&S), or the Director, OSBP, of the military department or 
defense agency must refer the protest to the SBA to resolve in 
accordance with 13 CFR part 121 (with respect to size) or other parts 
of title 13 of the CFR or this appendix (with respect to the 
prot[eacute]g[eacute]'s socioeconomic status). The Director, OSBP, OUSD 
(A&S), or the Director, OSBP, of the military department or defense 
agency shall decide protests concerning all other aspects of a 
prot[eacute]g[eacute]'s eligibility for the Program (e.g., 
nontraditional defense contractor or entity employing the severely 
disabled).
* * * * *

I-105 Mentor Approval Process

    (a) An entity seeking to participate as a mentor must apply to the 
Mentor-Prot[eacute]g[eacute] Program Director, OSBP, OUSD (A&S), to 
establish its initial eligibility as a mentor.
* * * * *
    (c) A template of the mentor application is available at https://business.defense.gov/Programs/Mentor-Prot[eacute]g[eacute]-Program/MPP-
Resources/.
* * * * *

I-106 Development of Mentor-Prot[eacute]g[eacute] Agreements

* * * * *
    (g) The agreement shall demonstrate, through its execution, how it 
will contribute to the overall mission of DoD and/or fill or address an 
identified critical gap or vulnerability. Focus areas include, but are 
not limited to, manufacturing, research and development, and knowledge-
based services.

I-107 Elements of a Mentor-Prot[eacute]g[eacute] Agreement

* * * * *
    (k) A program participation term for the agreement that does not 
exceed 2 years. Requests for an extension of the agreement for a period 
not to exceed an additional 3 years are subject to the approval of the 
Director, OSBP, of the cognizant military department or defense agency. 
The justification must detail the unusual circumstances that warrant a 
term in excess of 2 years;
* * * * *

I-110 Credit Agreements

    Sections I-110.1 and I-110.2 apply to all credit agreements, 
including agreements that provide for both credit and reimbursement.
* * * * *

I-111 Agreement Terminations

* * * * *
    (f) The Director, OSBP, OUSD (A&S) or the Director, OSBP, of the 
military department or defense agency is authorized to terminate the 
mentor-prot[eacute]g[eacute] agreement for the convenience of the 
Government (to include national security grounds, funding limits, 
statutory requirements, or other considerations), as well as for cause 
upon written findings (e.g., either of the participants' failure to 
perform or provide adequate assurance of performance; failure to comply 
with laws, regulations, and policies; conflicts of interest; or default 
under any provisions of a DoD contract or agreement).
* * * * *

I-113 Performance Reviews

    DCMA will conduct annual performance reviews of the progress and 
accomplishments realized under approved mentor-prot[eacute]g[eacute] 
agreements. These reviews must verify data provided on the semiannual 
reports and must provide information as to--
    (a) Whether all costs reimbursed to the mentor firm under the 
agreement were reasonably incurred to furnish assistance to the 
prot[eacute]g[eacute] in accordance with the mentor-
prot[eacute]g[eacute] agreement and applicable regulations and 
procedures; and
    (b) Whether the mentor and prot[eacute]g[eacute] accurately 
reported progress made by the prot[eacute]g[eacute] in employment, 
revenues, and participation in DoD contracts during the Program 
participation term and for 5 fiscal years following the expiration of 
the Program participation term.

[FR Doc. 2022-04012 Filed 2-25-22; 8:45 am]
BILLING CODE 5001-06-P