81_FR_65795 81 FR 65610 - Defense Federal Acquisition Regulation Supplement: Amendment to Mentor-Protégé Program (DFARS Case 2016-D011)

81 FR 65610 - Defense Federal Acquisition Regulation Supplement: Amendment to Mentor-Protégé Program (DFARS Case 2016-D011)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 185 (September 23, 2016)

Page Range65610-65615
FR Document2016-22574

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 2016 that provides amendments to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program.

Federal Register, Volume 81 Issue 185 (Friday, September 23, 2016)
[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Proposed Rules]
[Pages 65610-65615]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22574]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 219 and Appendix I to Chapter 2

[Docket DARS-2016-0033]
RIN 0750-AJ05


Defense Federal Acquisition Regulation Supplement: Amendment to 
Mentor-Prot[eacute]g[eacute] Program (DFARS Case 2016-D011)

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

ACTION: Proposed rule.

-----------------------------------------------------------------------

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 2016 that provides amendments 
to the DoD Pilot 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 November 22, 2016, to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2016-D011, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Search for

[[Page 65611]]

``DFARS Case 2016-D011.'' Select ``Comment Now'' and follow the 
instructions provided to submit a comment. Please include ``DFARS Case 
2016-D011'' on any attached documents.
    [cir] Email: [email protected]. Include DFARS Case 2016-D011 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Jennifer Johnson, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense 
Pentagon, Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

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

SUPPLEMENTARY INFORMATION:

I. Background

    This rule proposes to revise the DFARS to implement section 861 of 
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 
(Pub. L. 114-92). Section 861 provides several amendments to the DoD 
Pilot Mentor-Prot[eacute]g[eacute] Program (``the Program''). In 
particular, section 861 provides for contractors who participate in the 
Program as mentors to report all technical or management assistance 
provided; any new awards of subcontracts to the prot[eacute]g[eacute] 
firm, including the value of such subcontracts; any extensions, 
increases in the scope of work, or additional, unreported payments to 
the prot[eacute]g[eacute] firm; the amount of any progress payments or 
advance payments made to the prot[eacute]g[eacute] firm for performance 
under any subcontract made under the Program; any loans made to the 
prot[eacute]g[eacute] firm; all Federal contracts awarded to the mentor 
and prot[eacute]g[eacute] firms as a joint venture; any assistance the 
mentor firm obtained for the prot[eacute]g[eacute] firm from small 
business development centers established under 15 U.S.C. 648, entities 
providing procurement technical assistance under 10 U.S.C. chapter 142, 
or historically Black colleges or universities or minority institutions 
of higher education; whether the terms of the mentor-
prot[eacute]g[eacute] agreement have changed; and a narrative 
describing the success assistance provided under the Program has had in 
addressing the prot[eacute]g[eacute] firm's developmental needs, the 
impact on DoD contracts, and addressing any problems encountered. These 
reporting requirements apply retroactively to mentor-
prot[eacute]g[eacute] agreements in effect on November 25, 2015, date 
of enactment of the NDAA for FY 2016. The new reporting requirements 
will provide information to DoD's Office of Small Business Programs to 
support decisions regarding continuation of particular mentor-
prot[eacute]g[eacute] agreements.
    In addition, section 861--
     Adds new eligibility criteria;
     Limits the number of mentor-prot[eacute]g[eacute] 
agreements to which a prot[eacute]g[eacute] firm may be a party;
     Limits the period of time during which a 
prot[eacute]g[eacute] firm may participate in mentor-
prot[eacute]g[eacute] agreements under the Program;
     Adds new elements to mentor-prot[eacute]g[eacute] 
agreements addressing the benefits of the agreement to DoD and goals 
for additional awards for which the prot[eacute]g[eacute] firm can 
compete outside the Program;
     Removes business development assistance using mentor firm 
personnel and cash in exchange for an ownership interest in the 
prot[eacute]g[eacute] firm from the types of assistance that a mentor 
firm may provide to a prot[eacute]g[eacute] firm;
     Prohibits reimbursement of any fee assessed by the mentor 
firm for certain services provided to the prot[eacute]g[eacute] firm 
while participating in a joint venture with the prot[eacute]g[eacute] 
firm;
     Revises the definitions of the terms ``small business 
concern'' and ``disadvantaged small business concern;''
     Adds definitions for ``severely disabled individual'' and 
``affiliated;'' and
     Extends the Program for three years.

II. Discussion and Analysis

    This rule proposes amendments to DFARS subpart 219.71 and Appendix 
I, and significant revisions are summarized in the following 
paragraphs:

A. Subpart 219.71, Pilot Mentor-Prot[eacute]g[eacute] Program

     219.7102, General. This section is amended to replace the 
list of Program eligibility criteria with a reference to the 
eligibility criteria located in Appendix I, section I-102.
     219.7104, Developmental assistance costs eligible for 
reimbursement or credit. This section is amended to revise the date by 
which a mentor firm must incur costs under the Program in order to be 
eligible for reimbursement or credit toward small business 
subcontracting goals.

B. Appendix I, Policy and Procedures for the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program

     I-100, Purpose. This section is amended to align more 
closely with the language in section 861 of the NDAA for FY 2016.
     I-101, Definitions. This section is amended to add the 
definition of ``nontraditional defense contractor'' provided in section 
861, and to delete the definition of ``historically Black college or 
university'' that repeated the definition in FAR 2.101.
     I-102, Participant eligibility. This section is amended to 
revise the mentor and prot[eacute]g[eacute] eligibility criteria in 
accordance with section 861.
     I-103, Program duration. This section is amended to revise 
the date by which new mentor-prot[eacute]g[eacute] agreements may be 
submitted and approved and the date by which a mentor firm must incur 
costs under the Program in order to be eligible for reimbursement or 
credit toward subcontracting goals.
     I-104, Selection of prot[eacute]g[eacute] firms. This 
section is amended to encourage mentor firms to select firms as 
prot[eacute]g[eacute]s that have not received significant prime 
contracts from a Federal agency. In addition, this section is amended 
to indicate the number of mentor-prot[eacute]g[eacute] agreements to 
which a prot[eacute]g[eacute] firm may be a party, and to implement the 
time limitation specified in section 861 for a prot[eacute]g[eacute] 
firm's participation in the Program.
     I-105, Mentor approval process. This section is amended to 
reflect the revised eligibility criteria.
     I-107, Elements of a mentor-prot[eacute]g[eacute] 
agreement. This section is amended to incorporate new requirements of 
section 861.
    [cir] New paragraph (e) is added to require assurances in mentor-
prot[eacute]g[eacute] agreements that the mentor and 
prot[eacute]g[eacute] firms are not affiliated as defined in section 
861. In addition, the existing paragraph (e) is renumbered as paragraph 
(f), and the existing paragraph (f) is renumbered as paragraph (g).
    [cir] New paragraphs (g)(3) and (4) are added to implement the 
section 861 requirement for mentor-prot[eacute]g[eacute] agreements to 
include the following:
    [ssquf] A description of the quantitative and qualitative benefits 
to DoD from the agreement, if applicable; and
    [ssquf] Goals for additional awards for which the 
prot[eacute]g[eacute] firm can compete outside the Program.
     I-109, Reimbursement agreements. This section is amended 
to implement the prohibition in section 861 of reimbursement of fees 
assessed by the mentor firm for certain services

[[Page 65612]]

provided to the prot[eacute]g[eacute] firm or reimbursement of business 
development expenses incurred by the mentor firm while participating in 
a joint venture with the prot[eacute]g[eacute] firm.
     I-112, Reporting requirements. This section is amended to 
include the new reporting requirements of section 861 and to specify 
that they apply retroactively in accordance with paragraph (b)(2) of 
section 861.

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

    This 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. 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. 
However, an initial regulatory flexibility analysis has been performed 
and is summarized as follows:
    This rule proposes to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement section 861 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, which 
provides amendments to the DoD Pilot Mentor-Prot[eacute]g[eacute] 
Program (``the Program''). Specifically, section 861 requires mentor 
firms to report a variety of information on the assistance they have 
provided to their prot[eacute]g[eacute] firms, the success this 
assistance has had in addressing the prot[eacute]g[eacute] firm's 
developmental needs, the impact on DoD contracts, and addressing any 
problems encountered. The new reporting requirements apply 
retroactively to mentor-prot[eacute]g[eacute] agreements that were in 
effect on the date of enactment of the NDAA for FY 2016 (enacted 
November 25, 2015). In addition, section 861 adds new eligibility 
criteria for mentor and prot[eacute]g[eacute] firms; limits the period 
of time a prot[eacute]g[eacute] firm can participate in the Program; 
limits the number of mentor-prot[eacute]g[eacute] agreements to which a 
prot[eacute]g[eacute] can be a party; extends the Program for three 
years; and makes several other amendments.
    The objectives of this rule are to implement statutory amendments 
to the Program and to provide DoD's Office of Small Business Programs 
with information to support decisions regarding continuation of 
particular mentor-prot[eacute]g[eacute] agreements. The legal basis for 
the amendments is section 861 of the NDAA for FY 2016.
    The rule will apply to small entities that participate in the 
Program. There are currently 85 small entities participating in the 
Program as prot[eacute]g[eacute] firms and six small entities 
participating as mentors.
    The rule imposes new reporting requirements on mentor firms, 
including mentors who are small businesses, regarding assistance they 
have provided to their prot[eacute]g[eacute] firms and the success this 
assistance has had. Although prot[eacute]g[eacute] firms are not 
required to submit these reports, the mentor firms will need to obtain 
supporting information from the prot[eacute]g[eacute] firms in order to 
ascertain the success of the assistance provided.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    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 2016-D011), in 
correspondence.

VI. Paperwork Reduction Act

    The rule contains information collection requirements that require 
the approval of the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act (44 U.S.C. chapter 35). OMB Control Number 
0704-0332, Defense Federal Acquisition Regulation Supplement (DFARS) 
Appendix I, is currently in place for the DoD Mentor 
Prot[eacute]g[eacute] program. This proposed rule, DFARS Case 2016-
D011, however, requires revision of OMB 0704-0332 to increase the 
burden hours to accommodate the increased reporting requirements 
resulting from this rule. Accordingly, DoD has submitted a request to 
OMB for approval of a revised information collection requirement as 
discussed below.

A. Public Reporting Burden for This Collection of Information is 
Estimated To Average Three Hours per Response, Including the Time for 
Reviewing Instructions, Searching Existing Data Sources, Gathering and 
Maintaining the Data Needed, and Completing and Reviewing the 
Collection of Information

    The annual reporting burden is estimated as follows:
    Respondents: 127.
    Responses per respondent: 2 approximately.
    Total annual responses: 255.
    Preparation hours per response: 2 hours.
    Total response Burden Hours: 595.

B. Request for Comments Regarding Paperwork Burden

    Written comments and recommendations on the proposed information 
collection, including suggestions for reducing this burden, should be 
sent to Ms. Jasmeet Seehra at the Office of Management and Budget, Desk 
Officer for DoD, Room 10236, New Executive Office Building, Washington, 
DC 20503, or email [email protected], with a copy to the 
Defense Acquisition Regulations System, Attn: Ms. Jennifer Johnson, 
OUSD (AT&L) DPAP/DARS, Room 3B941, 3060 Defense Pentagon, Washington, 
DC 20301-3060. Comments can be received from 30 to 60 days after the 
date of this notice, but comments to OMB will be most useful if 
received by OMB within 30 days after the date of this notice.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the DFARS, and will have practical utility; whether our 
estimate of the public burden of this collection of information is 
accurate, and based on valid assumptions and methodology; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways in which we can minimize the burden of the 
collection of information on those who are to respond, through the use 
of appropriate technological collection techniques or other forms of 
information technology.
    To request more information on this proposed information collection 
or to obtain a copy of the proposal and associated collection 
instruments, please write to the Defense Acquisition

[[Page 65613]]

Regulations System, Attn: Ms. Jennifer Johnson, OUSD(AT&L)DPAP/DARS, 
Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060, or email 
[email protected]. Include DFARS Case 2016-D011 in the subject line of 
the message.

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

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 219 and appendix I to chapter 2 are proposed 
to be 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--
0
a. Removing ``Section 831'' and adding ``section 831'' in its place; 
and
0
b. Adding the phrase ``, as amended through November 25, 2015'' to the 
end of the first sentence.
0
3. Amend section 219.7102 by--
0
a. Revising paragraph (a);
0
b. Removing paragraph (b); and
0
c. Redesignating paragraphs (c) and (d) as paragraphs (b) and (c), 
respectively.
    The revision reads as follows:


219.7102  General.

* * * * *
    (a) Mentor firms and prot[eacute]g[eacute] firms that meet the 
criteria in Appendix I, section I-102.
* * * * *


219.7103-2  [Amended]

0
4. Amend section 219.7103-2, in paragraph (e)(3), by removing 
``219.7102(d)(1)(ii)'' and adding ``219.7102(c)(1)(ii)'' in its place.


219.7104  [Amended]

0
5. Amend section 219.7104 by--
0
a. In paragraph (b)--
0
i. Removing ``Advance agreements are encouraged.'';
0
ii. Removing ``before October 1, 2018'' and adding ``not later than 
September 30, 2021'' in its place; and
0
b. In paragraph (d), removing ``before October 1, 2018'' and adding 
``not later than September 30, 2021'' in its place.

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

0
6. Amend appendix I to chapter 2 by--
0
a. In section I-100, revising paragraph (a);
0
b. Removing section I-101.1;
0
c. Redesignating section I-101.2 as section I-101.1;
0
d. Adding new section I-101.2;
0
e. Revising section I-101.4;
0
f. Removing section I-101.5;
0
g. Redesignating section I-101.6 as section I-101.5;
0
h. In the newly redesignated section I-101.5, removing ``Section'' and 
adding ``section'' in its place;
0
i. Removing section I-101-7;
0
j. Redesignating section I-101.8 as section I-101.6;
0
k. In section I-102, revising paragraphs (a), (b), (c), and (d);
0
l. Amend section I-103 by--
0
i. In paragraph (a), removing ``September 30, 2015'' and adding 
``September 30, 2018'' in its place;
0
ii. In paragraph (b), removing ``September 30, 2018'' and adding 
``September 30, 2021'' in its place;
0
m. Amend section I-104 by--
0
i. Revising paragraph (a);
0
ii. In paragraph (c), removing ``as defined in I-101.5'' '
0
iii. In paragraph (d) removing ``I-107(f)'' and adding ``I-106(d)'' in 
its place;
0
iv. Revising paragraph (e);
0
n. Amend section I-105 by--
0
i. Revising paragraph (b)(1);
0
ii. In paragraphs (b)(2), (b)(3), (b)(4), (b)(5), (b)(6), removing 
``company's'' and ``company'' and adding ``entity's'' and ``entity'', 
respectively in each place they appear;
0
iii. Revising paragraph (b)(7);
0
iv. Revising paragraph (c);
0
o. Amend section I-106 by--
0
i. In paragraph (d)(1)(i), removing ``business development, '';
0
ii. In paragraph (d)(1)(iii), adding ``described in I-107(g)'' to the 
end of the sentence;
0
iii. In paragraph (d)(2), removing ``Award of subcontracts'' and adding 
``Award of subcontracts to the prot[eacute]g[eacute] firm'' in its 
place;
0
iv. Removing paragraph (d)(6);
0
v. Redesignating paragraph (d)(7) as (d)(6);
0
p. Amend section I-107 by--
0
i. In the introductory text, removing ``will contain the following 
elements:'' and adding ``shall contain--'' in its place;
0
ii. Revising paragraph (b);
0
iii. In paragraph (d), removing ``I-102'' and adding ``I-102(a)'' in 
its place;
0
iv. Revising paragraphs (e), (f), and (g);
0
q. Amend section I-109 by--
0
i. Redesignating paragraph (e) as paragraph (f);
0
ii. Adding new paragraph (e);
0
r. Amend section I-110.1, in paragraph (a), by removing ``DoD 
Comprehensive Subcontracting Plan Test Program'' and adding ``DoD Test 
Program for Negotiation of Comprehensive Small Business Subcontracting 
Plans'' in its place; and removing ``entity employing the severely 
disabled'' and adding ``entity employing severely disabled 
individuals'' in its place;
0
s. Amend section I-112.1 by--
0
i. In the section heading, removing ``SF 294s'' and adding ``Standard 
Forms 294'' in its place;
0
ii. In paragraph (b), removing ``SDB'' and adding ``applicable'' in its 
place; and removing ``I-101.3 or I-101.5'' and adding ``I-102(b)'' in 
its place;
0
t. Revise section I-112.2.
    The revisions and additions read as follows:

I-100 Purpose.

    (a) This Appendix I to 48 CFR chapter 2 implements the Pilot 
Mentor-Prot[eacute]g[eacute] Program (hereafter referred to as the 
``Program'') established under section 831 of Public Law 101-510, 
the National Defense Authorization Act for Fiscal Year 1991 (10 
U.S.C. 2302 note), as amended through November 25, 2015. 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 eligible 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.
* * * * *

I-101.2 Nontraditional defense contractor.

    An entity that is not currently performing and has not performed 
any contract or subcontract for DoD that is subject to full coverage 
under the cost accounting standards prescribed pursuant to 41 U.S.C. 
1502 and the regulations implementing such section, for at least the 
1-year period preceding the solicitation of sources by DoD for the 
procurement or transaction (10 U.S.C. 2302(9)).
* * * * *

I-101.4 Severely disabled individual.

    An individual who is blind or severely disabled as defined in 41 
U.S.C. 8501.
* * * * *

I-102 Participant eligibility.

    (a) To be eligible to participate as a mentor, an entity must--

[[Page 65614]]

    (1) Be eligible for the award of Federal contracts;
    (2) Demonstrate that it--
    (i) Is qualified to provide assistance that will contribute to 
the purpose of the Program;
    (ii) Is of good financial health and character; and
    (iii) Is not on a Federal list of debarred or suspended 
contractors; 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 an other-than-small business, unless a waiver to the 
small business exception has been obtained from the Director, Small 
Business Programs (SBP), OUSD(AT&L);
    (iii) Is a prime contractor to DoD with an active subcontracting 
plan; or
    (iv) Has graduated from the 8(a) Business Development Program 
and provides documentation of its ability to serve as a mentor.
    (b) To be eligible to participate as a prot[eacute]g[eacute], an 
entity must be--
    (1) A small business concern;
    (2) Eligible for the award of Federal contracts;
    (3) Less than half the Small Business Administration (SBA) size 
standard for its primary North American Industry Classification 
System (NAICS) code;
    (4) Not owned or managed by individuals or entities that 
directly or indirectly have stock options or convertible securities 
in the mentor firm; and
    (5) At least one of the following:
    (i) A qualified HUBZone small business concern.
    (ii) A women-owned small business concern.
    (iii) A service-disabled veteran-owned small business concern.
    (iv) An entity owned and controlled by an Indian tribe.
    (v) An entity owned and controlled by a Native Hawaiian 
organization.
    (vi) An entity owned and controlled by socially and economically 
disadvantaged individuals.
    (vii) A qualified organization employing severely disabled 
individuals.
    (viii) A nontraditional defense contractor.
    (ix) An entity that currently provides goods or services in the 
private sector that are critical to enhancing the capabilities of 
the defense supplier base and fulfilling key DoD needs.
    (c) Mentor firms may rely in good faith on a written 
representation that the entity meets the requirements of paragraph 
(b) of this section, except that a mentor firm is required to 
confirm a prot[eacute]g[eacute]'s status as a HUBZone small business 
concern (see FAR 19.703(d)).
    (d) If at any time the SBA (or DoD in the case of entities 
employing severely disabled individuals) determines that a 
prot[eacute]g[eacute] is ineligible, assistance that the mentor firm 
furnishes to the prot[eacute]g[eacute] after the date of the 
determination may not be considered assistance furnished under the 
Program.
* * * * *

I-104 Selection of prot[eacute]g[eacute] firms.

    (a) Mentor firms will be solely responsible for selecting 
prot[eacute]g[eacute] firms that qualify under I-102(b). Mentor 
firms are encouraged to identify and select concerns that have not 
previously received significant prime contract awards from DoD or 
any other Federal agency.
* * * * *
    (e) A prot[eacute]g[eacute] firm may not be a party to more than 
one DoD mentor-prot[eacute]g[eacute] agreement at a time, and may 
only participate in the Program during the 5-year period beginning 
on the date the prot[eacute]g[eacute] firm enters into its first 
mentor-prot[eacute]g[eacute] agreement.

I-105 Mentor approval process.

* * * * *
    (b) * * *
    (1) A statement that the entity meets the requirements in I-
102(a), specifying the criteria in I-102(a)(3) under which the 
entity is applying.
* * * * *
    (7) The total dollar amount and percentage of subcontracts that 
the entity awarded to firms qualifying under I-102(b)(5)(ii) through 
(viii) during the 2 preceding fiscal years. (Show DoD subcontract 
awards separately.) If the entity was required to submit a Summary 
Subcontract Report (SSR) in the Electronic Subcontracting Reporting 
System, the request must include copies of the final reports for the 
2 preceding fiscal years.
* * * * *
    (c) A template of the mentor application is available at: http://www.acq.osd.mil/osbp/sb/programs/mpp/resources.shtml.
* * * * *

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

* * * * *
    (b) The NAICS code(s) that represent the contemplated supplies 
or services to be provided by the prot[eacute]g[eacute] firm to the 
mentor firm and a statement that, at the time the agreement is 
submitted for approval, the prot[eacute]g[eacute] firm does not 
exceed the size standard in I-102(b)(3);
* * * * *
    (e) Assurances that--
    (1) The mentor firm does not share, directly or indirectly, with 
the prot[eacute]g[eacute] firm ownership or management of the 
prot[eacute]g[eacute] firm;
    (2) The mentor firm does not have an agreement, at the time the 
mentor firm enters into a mentor-prot[eacute]g[eacute] agreement, to 
merge with the prot[eacute]g[eacute] firm;
    (3) The owners and managers of the mentor firm are not the 
parent, child, spouse, sibling, aunt, uncle, niece, nephew, 
grandparent, grandchild, or first cousin of an owner or manager of 
the prot[eacute]g[eacute] firm;
    (4) The mentor firm has not, during the 2-year period before 
entering into a mentor-prot[eacute]g[eacute] agreement, employed any 
officer, director, principal stock holder, managing member, or key 
employee of the prot[eacute]g[eacute] firm;
    (5) The mentor firm has not engaged in a joint venture with the 
prot[eacute]g[eacute] firm during the 2-year period before entering 
into a mentor-prot[eacute]g[eacute] agreement, unless such joint 
venture was approved by SBA prior to making any offer on a contract;
    (6) The mentor firm is not, directly or indirectly, the primary 
party providing contracts to the prot[eacute]g[eacute] firm, as 
measured by the dollar value of the contracts; and
    (7) The SBA has not made a determination of affiliation or 
control;
    (f) A preliminary assessment of the developmental needs of the 
prot[eacute]g[eacute] firm;
    (g) A developmental program for the prot[eacute]g[eacute] firm 
including--
    (1) The type of assistance the mentor will provide to the 
prot[eacute]g[eacute] and how that assistance will--
    (i) Increase the prot[eacute]g[eacute]'s ability to participate 
in DoD, Federal, and/or commercial contracts and subcontracts; and
    (ii) Increase small business subcontracting opportunities in 
industry categories where eligible prot[eacute]g[eacute]s or other 
small business firms are not dominant in the company's vendor base;
    (2) Factors to assess the prot[eacute]g[eacute] firm's 
developmental progress under the Program, including specific 
milestones for providing each element of the identified assistance;
    (3) A description of the quantitative and qualitative benefits 
to DoD from the agreement, if applicable; and
    (4) Goals for additional awards for which the 
prot[eacute]g[eacute] firm can compete outside the Program;
* * * * *

I-109 Reimburseable agreements.

* * * * *
    (e) DoD may not reimburse any fee to the mentor firm for 
services provided to the prot[eacute]g[eacute] firm pursuant to I-
106(d)(6) or for business development expenses incurred by the 
mentor firm under a contract awarded to the mentor firm while 
participating in a joint venture with the prot[eacute]g[eacute] 
firm.
* * * * *

I-112.2 Program specific reporting requirements.

    (a) Mentors must report on the progress made under active 
mentor-prot[eacute]g[eacute] agreements semiannually for the periods 
ending March 31st and September 30th throughout the Program 
participation term of the agreement. The September 30th report must 
address the entire fiscal year.
    (1) Reports are due 30 days after the close of each reporting 
period.
    (2) Each report must include the following data on performance 
under the mentor-prot[eacute]g[eacute] agreement:
    (i) Dollars obligated (for reimbursable agreements).
    (ii) Expenditures.
    (iii) Dollars credited, if any, toward applicable subcontracting 
goals as a result of developmental assistance provided to the 
prot[eacute]g[eacute] and a copy of the ISR or SF 294 and/or SSR for 
each contract where developmental assistance was credited.
    (iv) Any new awards of subcontracts on a competitive or 
noncompetitive basis to the prot[eacute]g[eacute] firm under DoD 
contracts or other contracts, including the value of such 
subcontracts.

[[Page 65615]]

    (v) All technical or management assistance provided by mentor 
firm personnel for the purposes described in I-106(d).
    (vi) Any extensions, increases in the scope of work, or 
additional payments not previously reported for prior awards of 
subcontracts on a competitive or noncompetitive basis to the 
prot[eacute]g[eacute] firm under DoD contracts or other contracts, 
including the value of such subcontracts.
    (vii) The amount of any payment of progress payments or advance 
payments made to the prot[eacute]g[eacute] firm for performance 
under any subcontract made under the Program.
    (viii) Any loans made by the mentor firm to the 
prot[eacute]g[eacute] firm.
    (ix) All Federal contracts awarded to the mentor firm and the 
prot[eacute]g[eacute] firm as a joint venture, designating whether 
the award was a restricted competition or a full and open 
competition.
    (x) Any assistance obtained by the mentor firm for the 
prot[eacute]g[eacute] firm from the entities listed at I-106(d)(6).
    (xi) Whether there have been any changes to the terms of the 
mentor-prot[eacute]g[eacute] agreement.
    (xii) A narrative describing the following:
    (A) The success assistance provided under I-106(d) has had in 
addressing the developmental needs of the prot[eacute]g[eacute] 
firm.
    (B) The impact on DoD contracts.
    (C) Any problems encountered.
    (D) Any milestones achieved in the prot[eacute]g[eacute] firm's 
developmental program.
    (E) Impact of the agreement in terms of capabilities enhanced, 
certifications received, and technology transferred.
    (3) In accordance with section 861, paragraph (b)(2), of the 
National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 
114-92), the reporting requirements specified in paragraphs 
(a)(2)(iv) through (a)(2)(xii)(C) of this section apply 
retroactively to mentor-prot[eacute]g[eacute] agreements that were 
in effect on November 25, 2015. Mentors must submit reports as 
described in paragraph (a) of this section.
    (4) A recommended reporting format and guidance for its 
submission are available at: http://www.acq.osd.mil/osbp/sb/programs/mpp/resources.shtml.
    (b) The prot[eacute]g[eacute] must provide data, annually by 
October 31st, on the progress made during the prior fiscal year by 
the prot[eacute]g[eacute] in employment, revenues, and participation 
in DoD contracts during--
    (1) Each fiscal year of the Program participation term; and
    (2) Each of the 2 fiscal years following the expiration of the 
Program participation term.
    (c) The prot[eacute]g[eacute] report required by paragraph (b) 
of this section may be provided as part of the mentor report for the 
period ending September 30th required by paragraph (a) of this 
section.
    (d) Progress reports must be submitted--
    (1) For credit agreements, to the cognizant Component Director, 
SBP, that approved the agreement, and the mentor's cognizant DCMA 
administrative contracting officer; and
    (2) For reimbursable agreements, to the cognizant Component 
Director, SBP, the contracting officer, the DCMA administrative 
contracting officer, and the program manager.

[FR Doc. 2016-22574 Filed 9-22-16; 8:45 am]
 BILLING CODE 5001-06-P



                                                 65610                 Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Proposed Rules

                                                    (d) Reports. (1) The Contractor shall report         reported by prime contractors and                     Contractor to pay liquidated damages to the
                                                 semiannually for the six-month periods                  subcontractors shall be limited to awards             Government in the amount identified in the
                                                 ending March 31 and September 30, the                   made to their immediate next-tier                     comprehensive subcontracting plan.
                                                 information in paragraphs (d)(1)(i) through             subcontractors. Credit cannot be taken for              (4) The Contractor shall have the right of
                                                 (v) of this section within 30 days after the            awards made to lower-tier subcontractors              appeal under the clause in this contract
                                                 end of the reporting period. Submit the                 unless the Contractor or subcontractor has            entitled ‘‘Disputes’’ from any final decision
                                                 report at https://www.esrs.gov.                         been designated to receive a small business           of the Contracting Officer.
                                                    (i) A list of contracts covered under its            or small disadvantaged business credit from             (g) The Contractor shall include in
                                                 comprehensive small business                            a member firm of the Alaska Native—                   subcontracts that offer subcontracting
                                                 subcontracting plan, to include the                     Corporations or an Indian tribe. Only                 opportunities, are expected to exceed
                                                 Commercial and Government Entity (CAGE)                 subcontracts involving performance in the             $700,000 ($1.5 million for construction of
                                                 code and Data Universal Numbering System                U.S. or its outlying areas should be included         any public facility), and are required to
                                                 (DUNS) number.                                          in these reports.                                     include the clause at 52.219–8, Utilization of
                                                    (ii) The amount of first-tier subcontract               (i) This report may be submitted on a              Small Business Concerns—
                                                 dollars awarded during the six-month period             corporate, company, or subdivision (e.g.,               (1) FAR 52.219–9, Small Business
                                                 covered by the report to covered small                  plant or division operating as a separate             Subcontracting Plan, and 252.219–7003
                                                 business concerns, with the information set             profit center) basis, as negotiated in the            Small Business Subcontracting Plan (DoD
                                                 forth separately by—                                    comprehensive subcontracting plan with the            Contracts)—Basic;
                                                    (A) North American Industrial                        Defense Contract Management Agency.                     (2) 52.219–9, Small Business
                                                 Classification System (NAICS) code;                        (ii) This report encompasses all                   Subcontracting Plan, with its Alternate III,
                                                    (B) Major defense acquisition program, as            subcontracting under prime contracts and              and 252.219–7003, Small Business
                                                 defined in 10 U.S.C. 2430(a);                           subcontracts with the Department of Defense,          Subcontracting Plan (DoD Contracts)—
                                                    (C) Contract number, if the contract is for          regardless of the dollar value of the                 Alternate I, to allow for submission of SF
                                                 maintenance, overhaul, repair, servicing,               subcontracts, and is based on the negotiated          294s in lieu of ISRs; or
                                                 rehabilitation, salvage, modernization, or              comprehensive subcontracting plan.                      (3) 252.219–7004, Small Business
                                                 modification of supplies, systems, or                      (iii) The report shall be submitted semi-          Subcontracting Plan (Test Program), in
                                                 equipment, and the total value of the                   annually for the six months ending March 31           subcontracts with subcontractors that
                                                 contract, including options, exceeds $100               and the twelve months ending September 30.            participate in the Test Program described in
                                                 million; and                                            Reports are due 30 days after the close of            DFARS 219.702–70.
                                                    (D) Military department.                             each reporting period.
                                                                                                                                                               (End of clause)
                                                    (iii) Total number of subcontracts active               (iv) The authority to acknowledge receipt
                                                 under the Test Program that would have                  or reject the SSR resides with the Defense            [FR Doc. 2016–22573 Filed 9–22–16; 8:45 am]
                                                 otherwise required a subcontracting plan.               Contract Management Agency.                           BILLING CODE 5001–06–P
                                                    (iv) Costs incurred in negotiating,                     (e) The failure of the Contractor or
                                                 complying with, and reporting on its                    subcontractor to comply in good faith with
                                                 comprehensive subcontracting plan.                      the clause of this contract entitled                  DEPARTMENT OF DEFENSE
                                                    (v) Costs avoided through the use of a               ‘‘Utilization of Small Business Concerns,’’ or
                                                 comprehensive subcontracting plan.                      an approved plan required by this clause,             Defense Acquisition Regulations
                                                    (2) The Contractor shall—                            shall be a material breach of the contract.           System
                                                    (i) Ensure that subcontractors with                     (f) Liquidated damages. The Contracting
                                                 subcontracting plans agree to submit an                 Officer designated to manage the
                                                                                                                                                               48 CFR Part 219 and Appendix I to
                                                 Individual Subcontract Report (ISR) and/or              comprehensive subcontracting plan will
                                                 Summary Subcontract Report (SSR) using the              exercise the functions of the Contracting             Chapter 2
                                                 Electronic Subcontracting Reporting System              Officer, as identified in paragraphs (f)(1)           [Docket DARS–2016–0033]
                                                 (eSRS).                                                 through (4), on behalf of all DoD departments
                                                    (ii) Provide its contract number, its DUNS           and agencies that awarded contracts covered           RIN 0750–AJ05
                                                 number, and the email address of the                    by the Contractor’s comprehensive
                                                 Contractor’s official responsible for                   subcontracting plan.                                  Defense Federal Acquisition
                                                 acknowledging or rejecting the ISR to all                  (1) To determine the need for liquidated           Regulation Supplement: Amendment
                                                 first-tier subcontractors, who will be required         damages, the Contracting Officer will                 to Mentor-Protégé Program (DFARS
                                                 to submit ISRs, so they can enter this                  conduct a compliance review during the                Case 2016–D011)
                                                 information into the eSRS when submitting               fiscal year after the close of the fiscal year for
                                                 their reports.                                          which the plan is applicable. The Contracting         AGENCY:  Defense Acquisition
                                                    (iii) Require that each subcontractor with a         Officer will compare the approved                     Regulations System, Department of
                                                 subcontracting plan provide the prime                   percentage or dollar goals to the total, actual       Defense (DoD).
                                                 contract number, its own DUNS number, and               subcontracting dollars covered by the plan.           ACTION: Proposed rule.
                                                 the email address of the subcontractor’s                   (2) If the Contractor has failed to meet its
                                                 official responsible for acknowledging or               approved subcontracting goal(s), the                  SUMMARY:   DoD is proposing to amend
                                                 rejecting the ISRs to its subcontractors with           Contracting Officer will provide the                  the Defense Federal Acquisition
                                                 subcontracting plans who will be required to            Contractor written notice specifying the              Regulation Supplement (DFARS) to
                                                 submit ISRs.                                            failure, advising of the potential for                implement a section of the National
                                                    (iv) Acknowledge receipt or reject all ISRs          assessment of liquidated damages, and
                                                                                                         permitting the Contractor to demonstrate
                                                                                                                                                               Defense Authorization Act for Fiscal
                                                 submitted by its subcontractors using eSRS.
                                                    (3) The Contractor shall submit SSRs using           what good faith efforts have been made. The           Year 2016 that provides amendments to
                                                 eSRS at http://www.esrs.gov. The reports                Contracting Officer may take the Contractor’s         the DoD Pilot Mentor-Protégé Program.
                                                 shall provide information on subcontract                failure to respond to the notice within 15            DATES: Comments on the proposed rule
                                                 awards to small business concerns, veteran-             working days (or longer period at the                 should be submitted in writing to the
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                                                 owned small business concerns, service-                 Contracting Officer’s discretion) as an               address shown below on or before
                                                 disabled veteran-owned small business                   admission that no valid explanation exists.           November 22, 2016, to be considered in
                                                 concerns, HUBZone small business concerns,                 (3) If, after consideration of all relevant        the formation of a final rule.
                                                 small disadvantaged business concerns, and              information, the Contracting Officer
                                                 women-owned small business concerns.                    determines that the Contractor failed to make         ADDRESSES: Submit comments
                                                 Purchases from a corporation, company, or               a good faith effort to comply with the                identified by DFARS Case 2016–D011,
                                                 subdivision that is an affiliate of the prime           comprehensive subcontracting plan, the                using any of the following methods:
                                                 Contractor or subcontractor are not included            Contracting Officer will issue a final decision         Æ Federal eRulemaking Portal: http://
                                                 in these reports. Subcontract award data                to the Contractor to that effect and require the      www.regulations.gov. Search for


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                                                                       Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Proposed Rules                                         65611

                                                 ‘‘DFARS Case 2016–D011.’’ Select                        protégé firm’s developmental needs, the             B. Appendix I, Policy and Procedures
                                                 ‘‘Comment Now’’ and follow the                          impact on DoD contracts, and                          for the DoD Pilot Mentor-Protégé
                                                 instructions provided to submit a                       addressing any problems encountered.                  Program
                                                 comment. Please include ‘‘DFARS Case                    These reporting requirements apply                       • I–100, Purpose. This section is
                                                 2016–D011’’ on any attached                             retroactively to mentor-protégé                     amended to align more closely with the
                                                 documents.                                              agreements in effect on November 25,                  language in section 861 of the NDAA for
                                                    Æ Email: osd.dfars@mail.mil. Include                 2015, date of enactment of the NDAA                   FY 2016.
                                                 DFARS Case 2016–D011 in the subject                     for FY 2016. The new reporting                           • I–101, Definitions. This section is
                                                 line of the message.                                    requirements will provide information                 amended to add the definition of
                                                    Æ Fax: 571–372–6094.                                 to DoD’s Office of Small Business                     ‘‘nontraditional defense contractor’’
                                                    Æ Mail: Defense Acquisition                          Programs to support decisions regarding
                                                                                                                                                               provided in section 861, and to delete
                                                 Regulations System, Attn: Ms. Jennifer                  continuation of particular mentor-
                                                                                                                                                               the definition of ‘‘historically Black
                                                 Johnson, OUSD(AT&L)DPAP/DARS,                           protégé agreements.
                                                                                                            In addition, section 861—                          college or university’’ that repeated the
                                                 Room 3B941, 3060 Defense Pentagon,
                                                                                                            • Adds new eligibility criteria;                   definition in FAR 2.101.
                                                 Washington, DC 20301–3060.
                                                                                                            • Limits the number of mentor-                        • I–102, Participant eligibility. This
                                                    Comments received generally will be
                                                                                                         protégé agreements to which a protégé             section is amended to revise the mentor
                                                 posted without change to http://
                                                                                                         firm may be a party;                                  and protégé eligibility criteria in
                                                 www.regulations.gov, including any
                                                 personal information provided. To                          • Limits the period of time during                 accordance with section 861.
                                                                                                         which a protégé firm may participate in                • I–103, Program duration. This
                                                 confirm receipt of your comment(s),
                                                                                                         mentor-protégé agreements under the                 section is amended to revise the date by
                                                 please check www.regulations.gov,
                                                                                                         Program;                                              which new mentor-protégé agreements
                                                 approximately two to three days after
                                                 submission to verify posting (except                       • Adds new elements to mentor-                     may be submitted and approved and the
                                                                                                         protégé agreements addressing the                   date by which a mentor firm must incur
                                                 allow 30 days for posting of comments
                                                                                                         benefits of the agreement to DoD and                  costs under the Program in order to be
                                                 submitted by mail).
                                                                                                         goals for additional awards for which                 eligible for reimbursement or credit
                                                 FOR FURTHER INFORMATION CONTACT: Ms.                                                                          toward subcontracting goals.
                                                                                                         the protégé firm can compete outside
                                                 Jennifer Johnson, telephone 571–372–                    the Program;                                             • I–104, Selection of protégé firms.
                                                 6100.                                                      • Removes business development                     This section is amended to encourage
                                                 SUPPLEMENTARY INFORMATION:                              assistance using mentor firm personnel                mentor firms to select firms as protégés
                                                                                                         and cash in exchange for an ownership                 that have not received significant prime
                                                 I. Background                                           interest in the protégé firm from the               contracts from a Federal agency. In
                                                    This rule proposes to revise the                     types of assistance that a mentor firm                addition, this section is amended to
                                                 DFARS to implement section 861 of the                   may provide to a protégé firm;                      indicate the number of mentor-protégé
                                                 National Defense Authorization Act                         • Prohibits reimbursement of any fee               agreements to which a protégé firm may
                                                 (NDAA) for Fiscal Year (FY) 2016 (Pub.                  assessed by the mentor firm for certain               be a party, and to implement the time
                                                 L. 114–92). Section 861 provides several                services provided to the protégé firm               limitation specified in section 861 for a
                                                 amendments to the DoD Pilot Mentor-                     while participating in a joint venture                protégé firm’s participation in the
                                                 Protégé Program (‘‘the Program’’). In                 with the protégé firm;                              Program.
                                                 particular, section 861 provides for                       • Revises the definitions of the terms                • I–105, Mentor approval process.
                                                 contractors who participate in the                      ‘‘small business concern’’ and                        This section is amended to reflect the
                                                 Program as mentors to report all                        ‘‘disadvantaged small business                        revised eligibility criteria.
                                                 technical or management assistance                      concern;’’                                               • I–107, Elements of a mentor-protégé
                                                 provided; any new awards of                                • Adds definitions for ‘‘severely                  agreement. This section is amended to
                                                 subcontracts to the protégé firm,                     disabled individual’’ and ‘‘affiliated;’’             incorporate new requirements of section
                                                 including the value of such                             and                                                   861.
                                                 subcontracts; any extensions, increases                    • Extends the Program for three years.                Æ New paragraph (e) is added to
                                                 in the scope of work, or additional,                    II. Discussion and Analysis                           require assurances in mentor-protégé
                                                 unreported payments to the protégé                       This rule proposes amendments to                   agreements that the mentor and protégé
                                                 firm; the amount of any progress                        DFARS subpart 219.71 and Appendix I,                  firms are not affiliated as defined in
                                                 payments or advance payments made to                    and significant revisions are                         section 861. In addition, the existing
                                                 the protégé firm for performance under                summarized in the following                           paragraph (e) is renumbered as
                                                 any subcontract made under the                          paragraphs:                                           paragraph (f), and the existing paragraph
                                                 Program; any loans made to the protégé                                                                      (f) is renumbered as paragraph (g).
                                                 firm; all Federal contracts awarded to                  A. Subpart 219.71, Pilot Mentor-Protégé                Æ New paragraphs (g)(3) and (4) are
                                                 the mentor and protégé firms as a joint               Program                                               added to implement the section 861
                                                 venture; any assistance the mentor firm                    • 219.7102, General. This section is               requirement for mentor-protégé
                                                 obtained for the protégé firm from small              amended to replace the list of Program                agreements to include the following:
                                                 business development centers                            eligibility criteria with a reference to the             D A description of the quantitative
                                                 established under 15 U.S.C. 648, entities               eligibility criteria located in Appendix I,           and qualitative benefits to DoD from the
                                                 providing procurement technical                         section I–102.                                        agreement, if applicable; and
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                                                 assistance under 10 U.S.C. chapter 142,                    • 219.7104, Developmental assistance                  D Goals for additional awards for
                                                 or historically Black colleges or                       costs eligible for reimbursement or                   which the protégé firm can compete
                                                 universities or minority institutions of                credit. This section is amended to revise             outside the Program.
                                                 higher education; whether the terms of                  the date by which a mentor firm must                     • I–109, Reimbursement agreements.
                                                 the mentor-protégé agreement have                     incur costs under the Program in order                This section is amended to implement
                                                 changed; and a narrative describing the                 to be eligible for reimbursement or                   the prohibition in section 861 of
                                                 success assistance provided under the                   credit toward small business                          reimbursement of fees assessed by the
                                                 Program has had in addressing the                       subcontracting goals.                                 mentor firm for certain services


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                                                 65612                 Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Proposed Rules

                                                 provided to the protégé firm or                       reporting requirements apply                          increase the burden hours to
                                                 reimbursement of business development                   retroactively to mentor-protégé                     accommodate the increased reporting
                                                 expenses incurred by the mentor firm                    agreements that were in effect on the                 requirements resulting from this rule.
                                                 while participating in a joint venture                  date of enactment of the NDAA for FY                  Accordingly, DoD has submitted a
                                                 with the protégé firm.                                2016 (enacted November 25, 2015). In                  request to OMB for approval of a revised
                                                   • I–112, Reporting requirements. This                 addition, section 861 adds new                        information collection requirement as
                                                 section is amended to include the new                   eligibility criteria for mentor and                   discussed below.
                                                 reporting requirements of section 861                   protégé firms; limits the period of time
                                                 and to specify that they apply                          a protégé firm can participate in the               A. Public Reporting Burden for This
                                                 retroactively in accordance with                        Program; limits the number of mentor-                 Collection of Information is Estimated
                                                 paragraph (b)(2) of section 861.                        protégé agreements to which a protégé             To Average Three Hours per Response,
                                                                                                         can be a party; extends the Program for               Including the Time for Reviewing
                                                 III. Applicability to Contracts at or                                                                         Instructions, Searching Existing Data
                                                                                                         three years; and makes several other
                                                 Below the Simplified Acquisition                                                                              Sources, Gathering and Maintaining the
                                                                                                         amendments.
                                                 Threshold and for Commercial Items,                        The objectives of this rule are to                 Data Needed, and Completing and
                                                 Including Commercially Available Off-                   implement statutory amendments to the                 Reviewing the Collection of Information
                                                 the-Shelf Items                                         Program and to provide DoD’s Office of                  The annual reporting burden is
                                                    This rule does not add any new                       Small Business Programs with                          estimated as follows:
                                                 provisions or clauses or impact any                     information to support decisions                        Respondents: 127.
                                                 existing provisions or clauses.                         regarding continuation of particular                    Responses per respondent: 2
                                                                                                         mentor-protégé agreements. The legal                approximately.
                                                 IV. Executive Orders 12866 and 13563                                                                            Total annual responses: 255.
                                                                                                         basis for the amendments is section 861
                                                    Executive Orders (E.O.s) 12866 and                   of the NDAA for FY 2016.                                Preparation hours per response: 2
                                                 13563 direct agencies to assess all costs                  The rule will apply to small entities              hours.
                                                 and benefits of available regulatory                    that participate in the Program. There                  Total response Burden Hours: 595.
                                                 alternatives and, if regulation is                      are currently 85 small entities                       B. Request for Comments Regarding
                                                 necessary, to select regulatory                         participating in the Program as protégé             Paperwork Burden
                                                 approaches that maximize net benefits                   firms and six small entities participating
                                                 (including potential economic,                          as mentors.                                             Written comments and
                                                 environmental, public health and safety                    The rule imposes new reporting                     recommendations on the proposed
                                                 effects, distributive impacts, and                      requirements on mentor firms,                         information collection, including
                                                 equity). E.O. 13563 emphasizes the                      including mentors who are small                       suggestions for reducing this burden,
                                                 importance of quantifying both costs                    businesses, regarding assistance they                 should be sent to Ms. Jasmeet Seehra at
                                                 and benefits, of reducing costs, of                     have provided to their protégé firms and            the Office of Management and Budget,
                                                 harmonizing rules, and of promoting                     the success this assistance has had.                  Desk Officer for DoD, Room 10236, New
                                                 flexibility. This is not a significant                  Although protégé firms are not required             Executive Office Building, Washington,
                                                 regulatory action and, therefore, was not               to submit these reports, the mentor                   DC 20503, or email Jasmeet_K._Seehra@
                                                 subject to review under section 6(b) of                 firms will need to obtain supporting                  omb.eop.gov, with a copy to the Defense
                                                 E.O. 12866, Regulatory Planning and                     information from the protégé firms in               Acquisition Regulations System, Attn:
                                                 Review, dated September 30, 1993. This                  order to ascertain the success of the                 Ms. Jennifer Johnson, OUSD (AT&L)
                                                 rule is not a major rule under 5 U.S.C.                 assistance provided.                                  DPAP/DARS, Room 3B941, 3060
                                                 804.                                                       The rule does not duplicate, overlap,              Defense Pentagon, Washington, DC
                                                                                                         or conflict with any other Federal rules.             20301–3060. Comments can be received
                                                 V. Regulatory Flexibility Act                                                                                 from 30 to 60 days after the date of this
                                                                                                            DoD invites comments from small
                                                    DoD does not expect this proposed                    business concerns and other interested                notice, but comments to OMB will be
                                                 rule to have a significant economic                     parties on the expected impact of this                most useful if received by OMB within
                                                 impact on a substantial number of small                 rule on small entities.                               30 days after the date of this notice.
                                                 entities within the meaning of the                         DoD will also consider comments                       Public comments are particularly
                                                 Regulatory Flexibility Act, 5 U.S.C. 601,               from small entities concerning the                    invited on: Whether this collection of
                                                 et seq. However, an initial regulatory                  existing regulations in subparts affected             information is necessary for the proper
                                                 flexibility analysis has been performed                 by this rule in accordance with 5 U.S.C.              performance of functions of the DFARS,
                                                 and is summarized as follows:                           610. Interested parties must submit such              and will have practical utility; whether
                                                    This rule proposes to amend the                      comments separately and should cite 5                 our estimate of the public burden of this
                                                 Defense Federal Acquisition Regulation                  U.S.C. 610 (DFARS Case 2016–D011), in                 collection of information is accurate,
                                                 Supplement (DFARS) to implement                         correspondence.                                       and based on valid assumptions and
                                                 section 861 of the National Defense                                                                           methodology; ways to enhance the
                                                 Authorization Act (NDAA) for Fiscal                     VI. Paperwork Reduction Act                           quality, utility, and clarity of the
                                                 Year (FY) 2016, which provides                            The rule contains information                       information to be collected; and ways in
                                                 amendments to the DoD Pilot Mentor-                     collection requirements that require the              which we can minimize the burden of
                                                 Protégé Program (‘‘the Program’’).                    approval of the Office of Management                  the collection of information on those
                                                 Specifically, section 861 requires                      and Budget (OMB) under the Paperwork                  who are to respond, through the use of
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                                                 mentor firms to report a variety of                     Reduction Act (44 U.S.C. chapter 35).                 appropriate technological collection
                                                 information on the assistance they have                 OMB Control Number 0704–0332,                         techniques or other forms of information
                                                 provided to their protégé firms, the                  Defense Federal Acquisition Regulation                technology.
                                                 success this assistance has had in                      Supplement (DFARS) Appendix I, is                        To request more information on this
                                                 addressing the protégé firm’s                         currently in place for the DoD Mentor                 proposed information collection or to
                                                 developmental needs, the impact on                      Protégé program. This proposed rule,                obtain a copy of the proposal and
                                                 DoD contracts, and addressing any                       DFARS Case 2016–D011, however,                        associated collection instruments,
                                                 problems encountered. The new                           requires revision of OMB 0704–0332 to                 please write to the Defense Acquisition


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                                                                        Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Proposed Rules                                              65613

                                                 Regulations System, Attn: Ms. Jennifer                   Appendix I to Chapter 2—Policy and                    ■  iv. Revising paragraphs (e), (f), and (g);
                                                 Johnson, OUSD(AT&L)DPAP/DARS,                            Procedures for The DOD Pilot Mentor                   ■  q. Amend section I–109 by—
                                                 Room 3B941, 3060 Defense Pentagon,                       Protégé Program                                     ■  i. Redesignating paragraph (e) as
                                                 Washington, DC 20301–3060, or email                                                                            paragraph (f);
                                                                                                          ■  6. Amend appendix I to chapter 2                   ■ ii. Adding new paragraph (e);
                                                 osd.dfars@mail.mil. Include DFARS                        by—
                                                 Case 2016–D011 in the subject line of                                                                          ■ r. Amend section I–110.1, in
                                                                                                          ■ a. In section I–100, revising paragraph             paragraph (a), by removing ‘‘DoD
                                                 the message.                                             (a);                                                  Comprehensive Subcontracting Plan
                                                 List of Subjects in 48 CFR Parts 219 and                 ■ b. Removing section I–101.1;                        Test Program’’ and adding ‘‘DoD Test
                                                 Appendix I to Chapter 2                                  ■ c. Redesignating section I–101.2 as                 Program for Negotiation of
                                                                                                          section I–101.1;                                      Comprehensive Small Business
                                                     Government procurement.                              ■ d. Adding new section I–101.2;                      Subcontracting Plans’’ in its place; and
                                                 Jennifer L. Hawes,                                       ■ e. Revising section I–101.4;                        removing ‘‘entity employing the
                                                 Editor, Defense Acquisition Regulations                  ■ f. Removing section I–101.5;                        severely disabled’’ and adding ‘‘entity
                                                 System.                                                  ■ g. Redesignating section I–101.6 as                 employing severely disabled
                                                                                                          section I–101.5;                                      individuals’’ in its place;
                                                   Therefore, 48 CFR part 219 and                         ■ h. In the newly redesignated section I–             ■ s. Amend section I–112.1 by—
                                                 appendix I to chapter 2 are proposed to                  101.5, removing ‘‘Section’’ and adding                ■ i. In the section heading, removing
                                                 be amended as follows:                                   ‘‘section’’ in its place;                             ‘‘SF 294s’’ and adding ‘‘Standard Forms
                                                 ■ 1. The authority citation for 48 CFR                   ■ i. Removing section I–101–7;                        294’’ in its place;
                                                 part 219 and appendix I to chapter 2                     ■ j. Redesignating section I–101.8 as                 ■ ii. In paragraph (b), removing ‘‘SDB’’
                                                 continues to read as follows:                            section I–101.6;                                      and adding ‘‘applicable’’ in its place;
                                                                                                          ■ k. In section I–102, revising                       and removing ‘‘I–101.3 or I–101.5’’ and
                                                   Authority: 41 U.S.C. 1303 and 48 CFR
                                                 chapter 1.                                               paragraphs (a), (b), (c), and (d);                    adding ‘‘I–102(b)’’ in its place;
                                                                                                          ■ l. Amend section I–103 by—                          ■ t. Revise section I–112.2.
                                                 PART 219—SMALL BUSINESS                                  ■ i. In paragraph (a), removing                          The revisions and additions read as
                                                 PROGRAMS                                                 ‘‘September 30, 2015’’ and adding                     follows:
                                                                                                          ‘‘September 30, 2018’’ in its place;                  I–100 Purpose.
                                                 219.7100    [Amended]                                    ■ ii. In paragraph (b), removing
                                                                                                                                                                   (a) This Appendix I to 48 CFR chapter 2
                                                 ■ 2. Amend section 219.7100 by—                          ‘‘September 30, 2018’’ and adding
                                                                                                                                                                implements the Pilot Mentor-Protégé
                                                 ■ a. Removing ‘‘Section 831’’ and                        ‘‘September 30, 2021’’ in its place;                  Program (hereafter referred to as the
                                                 adding ‘‘section 831’’ in its place; and                 ■ m. Amend section I–104 by—                          ‘‘Program’’) established under section 831 of
                                                                                                          ■ i. Revising paragraph (a);                          Public Law 101–510, the National Defense
                                                 ■ b. Adding the phrase ‘‘, as amended
                                                                                                          ■ ii. In paragraph (c), removing ‘‘as                 Authorization Act for Fiscal Year 1991 (10
                                                 through November 25, 2015’’ to the end                                                                         U.S.C. 2302 note), as amended through
                                                                                                          defined in I–101.5’’ ’
                                                 of the first sentence.                                                                                         November 25, 2015. The purpose of the
                                                                                                          ■ iii. In paragraph (d) removing ‘‘I–
                                                 ■ 3. Amend section 219.7102 by—                                                                                Program is to provide incentives to major
                                                                                                          107(f)’’ and adding ‘‘I–106(d)’’ in its
                                                 ■ a. Revising paragraph (a);                                                                                   DoD contractors to furnish eligible small
                                                                                                          place;                                                business concerns with assistance designed
                                                 ■ b. Removing paragraph (b); and                         ■ iv. Revising paragraph (e);                         to—
                                                 ■ c. Redesignating paragraphs (c) and                    ■ n. Amend section I–105 by—                             (1) Enhance the capabilities of eligible
                                                 (d) as paragraphs (b) and (c),                           ■ i. Revising paragraph (b)(1);                       small business concerns to perform as
                                                 respectively.                                            ■ ii. In paragraphs (b)(2), (b)(3), (b)(4),           subcontractors and suppliers under DoD
                                                                                                          (b)(5), (b)(6), removing ‘‘company’s’’ and            contracts and other contracts and
                                                   The revision reads as follows:                                                                               subcontracts; and
                                                                                                          ‘‘company’’ and adding ‘‘entity’s’’ and
                                                 219.7102    General.                                                                                              (2) Increase the participation of such
                                                                                                          ‘‘entity’’, respectively in each place they
                                                                                                                                                                business concerns as subcontractors and
                                                 *     *    *     *      *                                appear;                                               suppliers under DoD contracts, other Federal
                                                   (a) Mentor firms and protégé firms                   ■ iii. Revising paragraph (b)(7);                     Government contracts, and commercial
                                                 that meet the criteria in Appendix I,                    ■ iv. Revising paragraph (c);                         contracts.
                                                 section I–102.                                           ■ o. Amend section I–106 by—                          *        *   *     *      *
                                                                                                          ■ i. In paragraph (d)(1)(i), removing
                                                 *     *    *     *      *                                                                                      I–101.2 Nontraditional defense contractor.
                                                                                                          ‘‘business development, ’’;
                                                 219.7103–2       [Amended]                               ■ ii. In paragraph (d)(1)(iii), adding                  An entity that is not currently performing
                                                                                                          ‘‘described in I–107(g)’’ to the end of the           and has not performed any contract or
                                                 ■  4. Amend section 219.7103–2, in                                                                             subcontract for DoD that is subject to full
                                                 paragraph (e)(3), by removing                            sentence;
                                                                                                                                                                coverage under the cost accounting standards
                                                                                                          ■ iii. In paragraph (d)(2), removing
                                                 ‘‘219.7102(d)(1)(ii)’’ and adding                                                                              prescribed pursuant to 41 U.S.C. 1502 and
                                                 ‘‘219.7102(c)(1)(ii)’’ in its place.                     ‘‘Award of subcontracts’’ and adding                  the regulations implementing such section,
                                                                                                          ‘‘Award of subcontracts to the protégé              for at least the 1-year period preceding the
                                                 219.7104    [Amended]                                    firm’’ in its place;                                  solicitation of sources by DoD for the
                                                                                                          ■ iv. Removing paragraph (d)(6);                      procurement or transaction (10 U.S.C.
                                                 ■ 5. Amend section 219.7104 by—                                                                                2302(9)).
                                                                                                          ■ v. Redesignating paragraph (d)(7) as
                                                 ■ a. In paragraph (b)—
                                                                                                          (d)(6);                                               *        *   *     *      *
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                                                 ■ i. Removing ‘‘Advance agreements are                   ■ p. Amend section I–107 by—
                                                 encouraged.’’;                                                                                                 I–101.4 Severely disabled individual.
                                                                                                          ■ i. In the introductory text, removing
                                                 ■ ii. Removing ‘‘before October 1, 2018’’                                                                        An individual who is blind or severely
                                                                                                          ‘‘will contain the following elements:’’              disabled as defined in 41 U.S.C. 8501.
                                                 and adding ‘‘not later than September                    and adding ‘‘shall contain—’’ in its
                                                 30, 2021’’ in its place; and                             place;                                                *        *   *     *      *
                                                 ■ b. In paragraph (d), removing ‘‘before                 ■ ii. Revising paragraph (b);                         I–102 Participant eligibility.
                                                 October 1, 2018’’ and adding ‘‘not later                 ■ iii. In paragraph (d), removing ‘‘I–                  (a) To be eligible to participate as a mentor,
                                                 than September 30, 2021’’ in its place.                  102’’ and adding ‘‘I–102(a)’’ in its place;           an entity must—



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                                                 65614                 Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Proposed Rules

                                                   (1) Be eligible for the award of Federal              I–104 Selection of protégé firms.                     was approved by SBA prior to making any
                                                 contracts;                                                (a) Mentor firms will be solely responsible           offer on a contract;
                                                   (2) Demonstrate that it—                              for selecting protégé firms that qualify under           (6) The mentor firm is not, directly or
                                                   (i) Is qualified to provide assistance that           I–102(b). Mentor firms are encouraged to                indirectly, the primary party providing
                                                 will contribute to the purpose of the Program;          identify and select concerns that have not              contracts to the protégé firm, as measured by
                                                   (ii) Is of good financial health and                                                                          the dollar value of the contracts; and
                                                                                                         previously received significant prime
                                                 character; and                                                                                                     (7) The SBA has not made a determination
                                                                                                         contract awards from DoD or any other
                                                   (iii) Is not on a Federal list of debarred or                                                                 of affiliation or control;
                                                                                                         Federal agency.
                                                 suspended contractors; and                                                                                         (f) A preliminary assessment of the
                                                   (3) Be capable of imparting value to a                *       *       *      *       *
                                                                                                                                                                 developmental needs of the protégé firm;
                                                 protégé firm because of experience gained as            (e) A protégé firm may not be a party to
                                                                                                                                                                    (g) A developmental program for the
                                                 a DoD contractor or through knowledge of                more than one DoD mentor-protégé
                                                                                                         agreement at a time, and may only participate           protégé firm including—
                                                 general business operations and Government
                                                                                                         in the Program during the 5-year period                    (1) The type of assistance the mentor will
                                                 contracting, as demonstrated by evidence
                                                 that such entity—                                       beginning on the date the protégé firm enters         provide to the protégé and how that
                                                   (i) Received DoD contracts and                        into its first mentor-protégé agreement.              assistance will—
                                                 subcontracts equal to or greater than $100                                                                         (i) Increase the protégé’s ability to
                                                 million during the previous fiscal year;                I–105       Mentor approval process.                    participate in DoD, Federal, and/or
                                                   (ii) Is an other-than-small business, unless          *       *       *      *       *                        commercial contracts and subcontracts; and
                                                 a waiver to the small business exception has               (b) * * *                                               (ii) Increase small business subcontracting
                                                 been obtained from the Director, Small                     (1) A statement that the entity meets the            opportunities in industry categories where
                                                 Business Programs (SBP), OUSD(AT&L);                    requirements in I–102(a), specifying the                eligible protégés or other small business
                                                   (iii) Is a prime contractor to DoD with an            criteria in I–102(a)(3) under which the entity          firms are not dominant in the company’s
                                                 active subcontracting plan; or                          is applying.                                            vendor base;
                                                   (iv) Has graduated from the 8(a) Business             *       *       *      *       *                           (2) Factors to assess the protégé firm’s
                                                 Development Program and provides                           (7) The total dollar amount and percentage           developmental progress under the Program,
                                                 documentation of its ability to serve as a                                                                      including specific milestones for providing
                                                                                                         of subcontracts that the entity awarded to
                                                 mentor.                                                                                                         each element of the identified assistance;
                                                                                                         firms qualifying under I–102(b)(5)(ii) through
                                                   (b) To be eligible to participate as a                                                                           (3) A description of the quantitative and
                                                                                                         (viii) during the 2 preceding fiscal years.
                                                 protégé, an entity must be—                                                                                   qualitative benefits to DoD from the
                                                                                                         (Show DoD subcontract awards separately.) If
                                                   (1) A small business concern;                                                                                 agreement, if applicable; and
                                                   (2) Eligible for the award of Federal                 the entity was required to submit a Summary
                                                                                                         Subcontract Report (SSR) in the Electronic                 (4) Goals for additional awards for which
                                                 contracts;                                                                                                      the protégé firm can compete outside the
                                                   (3) Less than half the Small Business                 Subcontracting Reporting System, the request
                                                                                                         must include copies of the final reports for            Program;
                                                 Administration (SBA) size standard for its
                                                 primary North American Industry                         the 2 preceding fiscal years.                           *        *       *    *     *
                                                 Classification System (NAICS) code;                     *       *       *      *       *                        I–109        Reimburseable agreements.
                                                   (4) Not owned or managed by individuals                 (c) A template of the mentor application is
                                                 or entities that directly or indirectly have            available at: http://www.acq.osd.mil/osbp/sb/           *        *       *    *     *
                                                 stock options or convertible securities in the          programs/mpp/resources.shtml.                             (e) DoD may not reimburse any fee to the
                                                 mentor firm; and                                                                                                mentor firm for services provided to the
                                                                                                         *       *       *      *       *
                                                   (5) At least one of the following:                                                                            protégé firm pursuant to I–106(d)(6) or for
                                                   (i) A qualified HUBZone small business                I–107 Elements of a mentor-protégé                    business development expenses incurred by
                                                 concern.                                                agreement.                                              the mentor firm under a contract awarded to
                                                   (ii) A women-owned small business                     *       *       *      *       *                        the mentor firm while participating in a joint
                                                 concern.                                                   (b) The NAICS code(s) that represent the             venture with the protégé firm.
                                                   (iii) A service-disabled veteran-owned
                                                 small business concern.
                                                                                                         contemplated supplies or services to be                 *        *       *    *     *
                                                                                                         provided by the protégé firm to the mentor
                                                   (iv) An entity owned and controlled by an                                                                     I–112.2 Program specific reporting
                                                                                                         firm and a statement that, at the time the
                                                 Indian tribe.                                                                                                   requirements.
                                                                                                         agreement is submitted for approval, the
                                                   (v) An entity owned and controlled by a
                                                 Native Hawaiian organization.                           protégé firm does not exceed the size                   (a) Mentors must report on the progress
                                                   (vi) An entity owned and controlled by                standard in I–102(b)(3);                                made under active mentor-protégé
                                                 socially and economically disadvantaged                 *       *       *      *       *                        agreements semiannually for the periods
                                                 individuals.                                               (e) Assurances that—                                 ending March 31st and September 30th
                                                   (vii) A qualified organization employing                 (1) The mentor firm does not share,                  throughout the Program participation term of
                                                 severely disabled individuals.                          directly or indirectly, with the protégé firm         the agreement. The September 30th report
                                                   (viii) A nontraditional defense contractor.           ownership or management of the protégé                must address the entire fiscal year.
                                                   (ix) An entity that currently provides goods          firm;                                                     (1) Reports are due 30 days after the close
                                                 or services in the private sector that are                 (2) The mentor firm does not have an                 of each reporting period.
                                                 critical to enhancing the capabilities of the           agreement, at the time the mentor firm enters             (2) Each report must include the following
                                                 defense supplier base and fulfilling key DoD            into a mentor-protégé agreement, to merge             data on performance under the mentor-
                                                 needs.                                                  with the protégé firm;                                protégé agreement:
                                                   (c) Mentor firms may rely in good faith on               (3) The owners and managers of the mentor              (i) Dollars obligated (for reimbursable
                                                 a written representation that the entity meets          firm are not the parent, child, spouse, sibling,        agreements).
                                                 the requirements of paragraph (b) of this               aunt, uncle, niece, nephew, grandparent,                  (ii) Expenditures.
                                                 section, except that a mentor firm is required          grandchild, or first cousin of an owner or                (iii) Dollars credited, if any, toward
                                                 to confirm a protégé’s status as a HUBZone            manager of the protégé firm;                          applicable subcontracting goals as a result of
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                                                 small business concern (see FAR 19.703(d)).                (4) The mentor firm has not, during the 2-           developmental assistance provided to the
                                                   (d) If at any time the SBA (or DoD in the             year period before entering into a mentor-              protégé and a copy of the ISR or SF 294 and/
                                                 case of entities employing severely disabled            protégé agreement, employed any officer,              or SSR for each contract where
                                                 individuals) determines that a protégé is             director, principal stock holder, managing              developmental assistance was credited.
                                                 ineligible, assistance that the mentor firm             member, or key employee of the protégé firm;            (iv) Any new awards of subcontracts on a
                                                 furnishes to the protégé after the date of the           (5) The mentor firm has not engaged in a             competitive or noncompetitive basis to the
                                                 determination may not be considered                     joint venture with the protégé firm during the        protégé firm under DoD contracts or other
                                                 assistance furnished under the Program.                 2-year period before entering into a mentor-            contracts, including the value of such
                                                 *      *     *       *      *                           protégé agreement, unless such joint venture          subcontracts.



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                                                                       Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Proposed Rules                                         65615

                                                    (v) All technical or management assistance           contracting officer, the DCMA administrative          NMFS–2016–0081, by any of the
                                                 provided by mentor firm personnel for the               contracting officer, and the program manager.         following methods:
                                                 purposes described in I–106(d).                         [FR Doc. 2016–22574 Filed 9–22–16; 8:45 am]              • Electronic Submission: Submit all
                                                    (vi) Any extensions, increases in the scope          BILLING CODE 5001–06–P                                electronic public comments via the
                                                 of work, or additional payments not                                                                           Federal e-Rulemaking Portal. Go to
                                                 previously reported for prior awards of                                                                       www.regulations.gov/
                                                 subcontracts on a competitive or
                                                                                                         DEPARTMENT OF COMMERCE                                #!docketDetail;D=NOAA-NMFS-2016-
                                                 noncompetitive basis to the protégé firm
                                                                                                                                                               0081 click the ‘‘Comment Now!’’ icon,
                                                 under DoD contracts or other contracts,
                                                 including the value of such subcontracts.               National Oceanic and Atmospheric                      complete the required fields, and enter
                                                    (vii) The amount of any payment of                   Administration                                        or attach your comments.
                                                 progress payments or advance payments                                                                            • Mail: Submit written comments to
                                                 made to the protégé firm for performance              50 CFR Part 680                                       Glenn Merrill, Assistant Regional
                                                 under any subcontract made under the                                                                          Administrator, Sustainable Fisheries
                                                 Program.                                                [Docket No. 160617541–6541–01]                        Division, Alaska Region NMFS, Attn:
                                                    (viii) Any loans made by the mentor firm                                                                   Ellen Sebastian. Mail comments to P.O.
                                                                                                         RIN 0648–BG15
                                                 to the protégé firm.                                                                                        Box 21668, Juneau, AK 99802–1668.
                                                    (ix) All Federal contracts awarded to the            Fisheries of the Exclusive Economic                      Instructions: Comments sent by any
                                                 mentor firm and the protégé firm as a joint                                                                 other method, to any other address or
                                                                                                         Zone Off Alaska; Bering Sea and
                                                 venture, designating whether the award was                                                                    individual, or received after the end of
                                                 a restricted competition or a full and open
                                                                                                         Aleutian Islands Crab Rationalization
                                                                                                         Program                                               the comment period, may not be
                                                 competition.                                                                                                  considered by NMFS. All comments
                                                    (x) Any assistance obtained by the mentor            AGENCY:  National Marine Fisheries                    received are a part of the public record
                                                 firm for the protégé firm from the entities           Service (NMFS), National Oceanic and                  and will generally be posted for public
                                                 listed at I–106(d)(6).
                                                                                                         Atmospheric Administration (NOAA),                    viewing on www.regulations.gov
                                                    (xi) Whether there have been any changes
                                                                                                         Commerce.                                             without change. All personal identifying
                                                 to the terms of the mentor-protégé agreement.
                                                    (xii) A narrative describing the following:          ACTION: Proposed rule; request for                    information (e.g., name, address),
                                                    (A) The success assistance provided under            comments.                                             confidential business information, or
                                                 I–106(d) has had in addressing the                                                                            otherwise sensitive information
                                                 developmental needs of the protégé firm.              SUMMARY:    NMFS issues a proposed rule               submitted voluntarily by the sender will
                                                    (B) The impact on DoD contracts.                     to implement Amendment 47 to the                      be publicly accessible. NMFS will
                                                    (C) Any problems encountered.                        Fishery Management Plan for Bering                    accept anonymous comments (enter
                                                    (D) Any milestones achieved in the protégé         Sea/Aleutian Islands King and Tanner                  ‘‘N/A’’ in the required fields if you wish
                                                 firm’s developmental program.                           Crabs (Crab FMP) and to make minor                    to remain anonymous).
                                                    (E) Impact of the agreement in terms of              clarifications to regulations                            Electronic copies of Amendment 47 to
                                                 capabilities enhanced, certifications received,         implementing the Crab FMP. This                       the Crab FMP, the Regulatory Impact
                                                 and technology transferred.                             proposed rule addresses how individual                Review/Initial Regulatory Flexibility
                                                    (3) In accordance with section 861,                  processing quota (IPQ) use caps apply to              Analysis (RIR/IRFA) (collectively
                                                 paragraph (b)(2), of the National Defense               the Bering Sea Chionoecetes bairdi                    referred to as the ‘‘Analysis’’), and the
                                                 Authorization Act for Fiscal Year 2016 (Pub.            Tanner crab fisheries: The eastern C.                 Categorical Exclusion prepared for this
                                                 L. 114–92), the reporting requirements
                                                                                                         bairdi Tanner (EBT) and the western C.                proposed action are available from
                                                 specified in paragraphs (a)(2)(iv) through
                                                 (a)(2)(xii)(C) of this section apply
                                                                                                         bairdi Tanner (WBT). This proposed                    http://www.regulations.gov or from the
                                                 retroactively to mentor-protégé agreements            rule would exempt EBT and WBT IPQ                     NMFS Alaska Region Web site at http://
                                                 that were in effect on November 25, 2015.               crab that is custom processed at a                    alaskafisheries.noaa.gov.
                                                 Mentors must submit reports as described in             facility through contractual                             The Environmental Impact Statement
                                                 paragraph (a) of this section.                          arrangements with the processing                      (Program EIS), RIR (Program RIR), Final
                                                    (4) A recommended reporting format and               facility owners from being applied                    Regulatory Flexibility Analysis
                                                 guidance for its submission are available at:           against the IPQ use cap of the                        (Program FRFA), and Social Impact
                                                 http://www.acq.osd.mil/osbp/sb/programs/                processing facility owners, thereby                   Assessment prepared for the Crab
                                                 mpp/resources.shtml.                                    allowing a facility to process more crab              Rationalization Program are available
                                                    (b) The protégé must provide data,                 without triggering the IPQ use cap. This              from the NMFS Alaska Region Web site
                                                 annually by October 31st, on the progress               proposed exemption is necessary to                    at http://alaskafisheries.noaa.gov.
                                                 made during the prior fiscal year by the                allow all of the EBT and WBT Class A                  FOR FURTHER INFORMATION CONTACT:
                                                 protégé in employment, revenues, and                  individual fishing quota crab to be
                                                 participation in DoD contracts during—                                                                        Keeley Kent, 907–586–7228.
                                                                                                         processed at the facilities currently                 SUPPLEMENTARY INFORMATION: NMFS
                                                    (1) Each fiscal year of the Program
                                                 participation term; and                                 processing EBT and WBT crab, and                      manages the king and Tanner crab
                                                    (2) Each of the 2 fiscal years following the         would have significant positive                       fisheries in the U.S. exclusive economic
                                                 expiration of the Program participation term.           economic effects on the fishermen,                    zone of the Bering Sea and Aleutian
                                                    (c) The protégé report required by                 processors, and communities that                      Islands (BSAI) under the Fishery
                                                 paragraph (b) of this section may be provided           participate in the EBT and WBT                        Management Plan for Bering Sea/
                                                 as part of the mentor report for the period             fisheries. This proposed rule is intended             Aleutian Islands King and Tanner Crabs
                                                                                                         to promote the goals and objectives of
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                                                 ending September 30th required by
                                                                                                                                                               (Crab FMP). The North Pacific Fishery
                                                 paragraph (a) of this section.                          the Magnuson-Stevens Fishery
                                                    (d) Progress reports must be submitted—
                                                                                                                                                               Management Council (Council)
                                                                                                         Conservation and Management Act, the                  prepared, and NMFS approved, the Crab
                                                    (1) For credit agreements, to the cognizant          Crab FMP, and other applicable law.
                                                 Component Director, SBP, that approved the                                                                    FMP under the authority of the
                                                                                                         DATES: Submit comments on or before                   Magnuson-Stevens Fishery
                                                 agreement, and the mentor’s cognizant
                                                 DCMA administrative contracting officer; and            October 24, 2016.                                     Conservation and Management Act
                                                    (2) For reimbursable agreements, to the              ADDRESSES: You may submit comments                    (Magnuson-Stevens Act), 16 U.S.C. 1801
                                                 cognizant Component Director, SBP, the                  on this document, identified by NOAA–                 et seq. Regulations governing U.S.


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Document Created: 2016-09-23 01:43:30
Document Modified: 2016-09-23 01:43:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments on the proposed rule should be submitted in writing to
ContactMs. Jennifer Johnson, telephone 571- 372-6100.
FR Citation81 FR 65610 
RIN Number0750-AJ05

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