83 FR 12682 - Defense Federal Acquisition Regulation Supplement: Amendment to Mentor-Protégé Program (DFARS Case 2016-D011)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 83, Issue 57 (March 23, 2018)

Page Range		12682-12685
FR Document		2018-05937
DoD is issuing a final rule amending 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 83 Issue 57 (Friday, March 23, 2018)
[Federal Register Volume 83, Number 57 (Friday, March 23, 2018)]
[Rules and Regulations]
[Pages 12682-12685]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05937]


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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: Final rule.

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

SUMMARY: DoD is issuing a final rule amending 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: Effective March 23, 2018.

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

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 81 FR 
65610 on September 23, 2016, to propose revisions to 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''), including new reporting requirements for 
mentor firms to 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; adds limitations on a prot[eacute]g[eacute] 
firm's participation in the Program; adds new elements to mentor-
prot[eacute]g[eacute] agreements; extends the Program for three years 
to September 30, 2021; and amends requirements for business development 
assistance provided by a mentor firm and for reimbursement of fees 
assessed by the mentor firm.

II. Discussion and Analysis

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

A. Summary of Significant Changes From the Proposed Rule

    There are no changes made to the final rule as a result of the 
public comment; however, one conforming change is made.

B. Analysis of Public Comments

    Comment: The respondent requested that DoD revise the Program's 
eligibility criteria for prot[eacute]g[eacute] firms to include 
Historically Black Colleges and Universities (HBCUs) and Minority 
Institutions (MIs). Allowing HBCUs and MIs to participate in the 
Program as prot[eacute]g[eacute]s would provide the opportunity for 
teaming arrangements with DoD prime contractors, as well as good 
research opportunities.
    Response: The eligibility criteria are based on the statutory 
authority for the Program (10 U.S.C. 2302 note), which provides that a 
``disadvantaged small business concern'' meeting certain criteria may 
participate as a prot[eacute]g[eacute] in the Program. The statutory 
definition of ``disadvantaged small business concern'' does not include 
HBCUs or MIs. Therefore, the statute does not support the inclusion of 
HBCUs and MIs as prot[eacute]g[eacute]s. However, HBCUs and MIs have a 
role in the Program as providers of assistance to prot[eacute]g[eacute] 
firms.

C. Other Changes From the Proposed Rule

    A conforming change is made to the definition of ``nontraditional 
defense contractor'' in Appendix I, Paragraph I-101.2, to reflect the 
definition for this term that was established in the final rule 
``Procurement of Commercial Items (DFARS Case 2016-D006)'' (see 83 FR 
4431, dated January 31, 2018). Several Appendix I references are 
revised to reflect that, as of February 1, 2018, the Office of Small 
Business Programs is now organizationally located within DoD under 
Acquisition and Sustainment (A&S) in lieu of Acquisition Technology and 
Logistics (AT&L).

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

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

IV. Executive Orders 12866 and 13563

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

V. Executive Order 13771

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

VI. Regulatory Flexibility Act

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This final rule amends 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 provides new reporting 
requirements for mentor firms that 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; adds limitations 
on a prot[eacute]g[eacute] firm's participation in the Program; adds 
new elements to mentor-prot[eacute]g[eacute] agreements; extends the 
Program for three additional years; and amends requirements for 
business development assistance provided by a mentor firm and for 
reimbursement of fees assessed by the mentor firm. The objectives of 
this rule are to implement statutory amendments to the Program and to 
provide DoD's

[[Page 12683]]

Office of Small Business Programs with information to support decisions 
regarding continuation of particular mentor-prot[eacute]g[eacute] 
agreements.
    There were no issues raised by the public in response to the 
initial regulatory flexibility analysis provided in the proposed rule.
    The rule will apply to small entities that participate in the 
Program. There are currently 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.
    DoD has not identified any alternatives that are consistent with 
the stated objectives of the applicable statute.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The 
rule contains information collection requirements. OMB has cleared this 
information collection requirement under OMB Control Number 0704-0332, 
titled: Defense Federal Acquisition Regulation Supplement (DFARS) 
Appendix I.

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

    Government procurement.

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

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

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

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

PART 219--SMALL BUSINESS PROGRAMS


219.7100  [Amended]

0
2. Amend section 219.7100 by--
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.
0
d. In the newly redesignated paragraph (c)(2), removing ``Subpart'' and 
adding ``subpart'' in its place.
    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.

0
6. Amend Appendix I to Chapter 2 as follows:
0
a. In section I-100, revise paragraph (a).
0
b. Remove section I-101.1.
0
c. Redesignate section I-101.2 as section I-101.1.
0
d. Add new section I-101.2.
0
e. Revise section I-101.4.
0
f. Remove section I-101.5.
0
g. Redesignate section I-101.6 as section I-101.5.
0
h. In the newly redesignated section I-101.5, remove ``Section'' and 
add ``section'' in its place.
0
i. Remove section I-101.7.
0
j. Redesignate section I-101.8 as section I-101.6.
0
k. In the redesignated section I-101.6, remove ``Section'' and add 
``section'' in its place.
0
l. In section I-102, revise paragraphs (a) through (d).
0
m. Amend section I-103 by--
0
i. In paragraph (a), removing ``September 30, 2015'' and adding 
``September 30, 2018'' in its place; and
0
ii. In paragraph (b), removing ``September 30, 2018'' and adding 
``September 30, 2021'' in its place;
0
n. 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; and
0
iv. Revising paragraph (e).
0
o. Amend section I-105 by--
0
i. Revising paragraph (b)(1);
0
ii. In paragraphs (b)(2) through (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); and
0
iv. Revising paragraph (c);
0
p. 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); and
0
v. Redesignating paragraph (d)(7) as (d)(6);
0
vi. In the newly redesignated paragraph (d)(6)(i), removing ``Section'' 
and adding ``section'' in its place.
0
q. 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; and
0
iv. Revising paragraphs (e), (f), and (g).
0
r. Amend section I-109 by--
0
i. Redesignating paragraph (e) as paragraph (f); and
0
ii. Adding new paragraph (e).
0
s. 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
t. Amend section I-110.2, in paragraphs (a) introductory text, (b) 
introductory text, and (c) by removing ``OUSD(AT&L)'' and adding 
``OUSD(A&S)'' in each place.
0
u. Amend section I-112.1 by--
0
i. In the section heading, removing ``SF 294s'' and adding ``Standard 
Forms 294'' in its place; and
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
v. Revise section I-112.2.
    The revisions and additions read as follows:

[[Page 12684]]

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

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 (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--
    (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(A&S);
    (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,

[[Page 12685]]

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.
    (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. 2018-05937 Filed 3-22-18; 8:45 am]
BILLING CODE 5001-06-P
12682 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Rules and Regulations

252.213–7000 Notice to Prospective reimbursement of fees assessed by the III. Applicability to Contracts at or
Suppliers on Use of Supplier Performance mentor firm. Below the Simplified Acquisition
Risk System in Past Performance Threshold and for Commercial Items,
Evaluations. II. Discussion and Analysis Including Commercially Available Off-
* * * * * the-Shelf Items
One respondent submitted a public
[FR Doc. 2018–05938 Filed 3–22–18; 8:45 am] This final rule does not add any new
comment in response to the proposed
BILLING CODE 5001–06–P
rule. DoD reviewed the public comment provisions or clauses or impact any
in the development of the final rule. existing provisions or clauses.
DEPARTMENT OF DEFENSE A. Summary of Significant Changes IV. Executive Orders 12866 and 13563
From the Proposed Rule Executive Orders (E.O.s) 12866 and
Defense Acquisition Regulations 13563 direct agencies to assess all costs
System There are no changes made to the and benefits of available regulatory
final rule as a result of the public alternatives and, if regulation is
48 CFR Part 219 and Appendix I to comment; however, one conforming necessary, to select regulatory
Chapter 2 change is made. approaches that maximize net benefits
[Docket DARS–2016–0033] (including potential economic,
B. Analysis of Public Comments
environmental, public health and safety
RIN 0750–AJ05 effects, distributive impacts, and
Comment: The respondent requested
Defense Federal Acquisition that DoD revise the Program’s eligibility equity). E.O. 13563 emphasizes the
Regulation Supplement: Amendment criteria for protégé firms to include importance of quantifying both costs
to Mentor-Protégé Program (DFARS Historically Black Colleges and and benefits, of reducing costs, of
Universities (HBCUs) and Minority harmonizing rules, and of promoting
Case 2016–D011)
flexibility. This is not a significant
Institutions (MIs). Allowing HBCUs and
AGENCY: Defense Acquisition regulatory action and, therefore, was not
MIs to participate in the Program as
Regulations System, Department of subject to review under section 6(b) of
protégés would provide the opportunity E.O. 12866, Regulatory Planning and
Defense (DoD).
for teaming arrangements with DoD Review, dated September 30, 1993. This
ACTION: Final rule.
prime contractors, as well as good rule is not a major rule under 5 U.S.C.
SUMMARY: DoD is issuing a final rule research opportunities. 804.
amending the Defense Federal Response: The eligibility criteria are V. Executive Order 13771
Acquisition Regulation Supplement based on the statutory authority for the
(DFARS) to implement a section of the Program (10 U.S.C. 2302 note), which This rule is not subject to E.O. 13771,
National Defense Authorization Act for provides that a ‘‘disadvantaged small because this rule is not a significant
Fiscal Year 2016 that provides business concern’’ meeting certain regulatory action under E.O. 12866.
amendments to the DoD Pilot Mentor- criteria may participate as a protégé in VI. Regulatory Flexibility Act
Protégé Program. the Program. The statutory definition of A final regulatory flexibility analysis
DATES: Effective March 23, 2018. ‘‘disadvantaged small business concern’’ (FRFA) has been prepared consistent
FOR FURTHER INFORMATION CONTACT: Ms. does not include HBCUs or MIs. with the Regulatory Flexibility Act, 5
Jennifer D. Johnson, telephone 571– Therefore, the statute does not support U.S.C. 601, et seq. The FRFA is
372–6100. the inclusion of HBCUs and MIs as summarized as follows:
SUPPLEMENTARY INFORMATION: protégés. However, HBCUs and MIs This final rule amends the Defense
have a role in the Program as providers Federal Acquisition Regulation
I. Background
of assistance to protégé firms. Supplement (DFARS) to implement
DoD published a proposed rule in the section 861 of the National Defense
Federal Register at 81 FR 65610 on C. Other Changes From the Proposed Authorization Act (NDAA) for Fiscal
September 23, 2016, to propose Rule Year (FY) 2016, which provides
revisions to the DFARS to implement amendments to the DoD Pilot Mentor-
section 861 of the National Defense A conforming change is made to the
Protégé Program (‘‘the Program’’).
Authorization Act (NDAA) for Fiscal definition of ‘‘nontraditional defense Specifically, section 861 provides new
Year (FY) 2016 (Pub. L. 114–92). Section contractor’’ in Appendix I, Paragraph I– reporting requirements for mentor firms
861 provides several amendments to the 101.2, to reflect the definition for this that will provide information to DoD’s
DoD Pilot Mentor-Protégé Program (‘‘the term that was established in the final Office of Small Business Programs to
Program’’), including new reporting rule ‘‘Procurement of Commercial Items support decisions regarding
requirements for mentor firms to (DFARS Case 2016–D006)’’ (see 83 FR continuation of particular mentor-
provide information to DoD’s Office of 4431, dated January 31, 2018). Several protégé agreements. In addition, section
Small Business Programs to support Appendix I references are revised to 861 adds new eligibility criteria; adds
decisions regarding continuation of reflect that, as of February 1, 2018, the limitations on a protégé firm’s
particular mentor-protégé agreements. Office of Small Business Programs is participation in the Program; adds new
In addition, section 861 adds new now organizationally located within elements to mentor-protégé agreements;
eligibility criteria; adds limitations on a DoD under Acquisition and extends the Program for three additional
protégé firm’s participation in the Sustainment (A&S) in lieu of years; and amends requirements for
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Program; adds new elements to mentor- Acquisition Technology and Logistics business development assistance
protégé agreements; extends the (AT&L). provided by a mentor firm and for
Program for three years to September 30, reimbursement of fees assessed by the
2021; and amends requirements for mentor firm. The objectives of this rule
business development assistance are to implement statutory amendments
provided by a mentor firm and for to the Program and to provide DoD’s

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Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Rules and Regulations 12683

Office of Small Business Programs with ■ a. Revising paragraph (a); ■ iii. In paragraph (d), removing ‘‘I–
information to support decisions ■ b. Removing paragraph (b); and 107(f)’’ and adding ‘‘I–106(d)’’ in its
regarding continuation of particular ■ c. Redesignating paragraphs (c) and place; and
mentor-protégé agreements. (d) as paragraphs (b) and (c), ■ iv. Revising paragraph (e).
There were no issues raised by the respectively. ■ o. Amend section I–105 by—
public in response to the initial ■ d. In the newly redesignated ■ i. Revising paragraph (b)(1);
regulatory flexibility analysis provided paragraph (c)(2), removing ‘‘Subpart’’ ■ ii. In paragraphs (b)(2) through (b)(6),
in the proposed rule. and adding ‘‘subpart’’ in its place. removing ‘‘company’s’’ and ‘‘company’’
The rule will apply to small entities The revision reads as follows: and adding ‘‘entity’s’’ and ‘‘entity’’,
that participate in the Program. There respectively in each place they appear;
are currently 85 small entities 219.7102 General. ■ iii. Revising paragraph (b)(7); and
participating in the Program as protégé * * * * * ■ iv. Revising paragraph (c);
firms and six small entities participating (a) Mentor firms and protégé firms ■ p. Amend section I–106 by—
as mentors. that meet the criteria in Appendix I, ■ i. In paragraph (d)(1)(i), removing
The rule imposes new reporting section I–102. ‘‘business development, ’’;
requirements on mentor firms, * * * * * ■ ii. In paragraph (d)(1)(iii), adding
including mentors who are small ‘‘described in I–107(g)’’ to the end of the
businesses, regarding assistance they 219.7103–2 [Amended] sentence;
have provided to their protégé firms and ■ 4. Amend section 219.7103–2, in ■ iii. In paragraph (d)(2), removing
the success this assistance has had. paragraph (e)(3), by removing ‘‘Award of subcontracts’’ and adding
Although protégé firms are not required ‘‘219.7102(d)(1)(ii)’’ and adding ‘‘Award of subcontracts to the protégé
to submit these reports, the mentor ‘‘219.7102(c)(1)(ii)’’ in its place. firm’’ in its place;
firms will need to obtain supporting ■ iv. Removing paragraph (d)(6); and
information from the protégé firms in 219.7104 [Amended] ■ v. Redesignating paragraph (d)(7) as
order to ascertain the success of the ■ 5. Amend section 219.7104 by— (d)(6);
assistance provided. ■ vi. In the newly redesignated
■ a. In paragraph (b)—
DoD has not identified any ■ i. Removing ‘‘Advance agreements are paragraph (d)(6)(i), removing ‘‘Section’’
alternatives that are consistent with the encouraged.’’; and adding ‘‘section’’ in its place.
stated objectives of the applicable ■ q. Amend section I–107 by—
■ ii. Removing ‘‘before October 1, 2018’’
statute. ■ i. In the introductory text, removing
and adding ‘‘not later than September
30, 2021’’ in its place; and ‘‘will contain the following elements:’’
VII. Paperwork Reduction Act and adding ‘‘shall contain—’’ in its
■ b. In paragraph (d), removing ‘‘before
The Paperwork Reduction Act (44 place;
October 1, 2018’’ and adding ‘‘not later
U.S.C. Chapter 35) applies. The rule ■ ii. Revising paragraph (b);
than September 30, 2021’’ in its place.
contains information collection ■ iii. In paragraph (d), removing ‘‘I–
requirements. OMB has cleared this ■ 6. Amend Appendix I to Chapter 2 as 102’’ and adding ‘‘I–102(a)’’ in its place;
information collection requirement follows: and
under OMB Control Number 0704–0332, ■ a. In section I–100, revise paragraph ■ iv. Revising paragraphs (e), (f), and (g).
titled: Defense Federal Acquisition (a). ■ r. Amend section I–109 by—
Regulation Supplement (DFARS) ■ b. Remove section I–101.1. ■ i. Redesignating paragraph (e) as
Appendix I. ■ c. Redesignate section I–101.2 as paragraph (f); and
section I–101.1. ■ ii. Adding new paragraph (e).
List of Subjects in 48 CFR Part 219 and ■ d. Add new section I–101.2. ■ s. Amend section I–110.1, in
Appendix I to Chapter 2 ■ e. Revise section I–101.4. paragraph (a), by removing ‘‘DoD
Government procurement. ■ f. Remove section I–101.5. Comprehensive Subcontracting Plan
■ g. Redesignate section I–101.6 as Test Program’’ and adding ‘‘DoD Test
Jennifer L. Hawes, section I–101.5. Program for Negotiation of
Regulatory Control Officer, Defense ■ h. In the newly redesignated section I– Comprehensive Small Business
Acquisition Regulations System. 101.5, remove ‘‘Section’’ and add Subcontracting Plans’’ in its place; and
Therefore, 48 CFR part 219 and ‘‘section’’ in its place. removing ‘‘entity employing the
appendix I to chapter 2 are amended as ■ i. Remove section I–101.7. severely disabled’’ and adding ‘‘entity
follows: ■ j. Redesignate section I–101.8 as employing severely disabled
■ 1. The authority citation for 48 CFR section I–101.6. individuals’’ in its place.
part 219 and appendix I to chapter 2 ■ k. In the redesignated section I–101.6, ■ t. Amend section I–110.2, in
continues to read as follows: remove ‘‘Section’’ and add ‘‘section’’ in paragraphs (a) introductory text, (b)
Authority: 41 U.S.C. 1303 and 48 CFR its place. introductory text, and (c) by removing
chapter 1. ■ l. In section I–102, revise paragraphs ‘‘OUSD(AT&L)’’ and adding
(a) through (d). ‘‘OUSD(A&S)’’ in each place.
PART 219—SMALL BUSINESS ■ m. Amend section I–103 by— ■ u. Amend section I–112.1 by—
PROGRAMS ■ i. In paragraph (a), removing ■ i. In the section heading, removing
‘‘September 30, 2015’’ and adding ‘‘SF 294s’’ and adding ‘‘Standard Forms
219.7100 [Amended] ‘‘September 30, 2018’’ in its place; and 294’’ in its place; and
■ 2. Amend section 219.7100 by— ■ ii. In paragraph (b), removing ■ ii. In paragraph (b), removing ‘‘SDB’’
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■ a. Removing ‘‘Section 831’’ and ‘‘September 30, 2018’’ and adding and adding ‘‘applicable’’ in its place;
adding ‘‘section 831’’ in its place; and ‘‘September 30, 2021’’ in its place; and removing ‘‘I–101.3 or I–101.5’’ and
■ b. Adding the phrase ‘‘, as amended ■ n. Amend section I–104 by— adding ‘‘I–102(b)’’ in its place.
through November 25, 2015’’ to the end ■ i. Revising paragraph (a); ■ v. Revise section I–112.2.
of the first sentence. ■ ii. In paragraph (c), removing ‘‘as The revisions and additions read as
■ 3. Amend section 219.7102 by— defined in I–101.5’’; follows:

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Document Created: 2018-11-01 08:53:48
Document Modified: 2018-11-01 08:53:48
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective March 23, 2018.
Contact		Ms. Jennifer D. Johnson, telephone 571-372-6100.
FR Citation		83 FR 12682
RIN Number		0750-AJ05
83 FR 12682 - Defense Federal Acquisition Regulation Supplement: Amendment to Mentor-Protégé Program (DFARS Case 2016-D011)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 83, Issue 57 (March 23, 2018)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
