83 FR 19677 - Defense Federal Acquisition Regulation Supplement: Mentor-Protégé Program Modifications (DFARS Case 2017-D016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 83, Issue 87 (May 4, 2018)

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Year 2017 that provide modifications to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program.

[Federal Register Volume 83, Number 87 (Friday, May 4, 2018)]
[Proposed Rules]
[Pages 19677-19679]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09487]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 219 and Appendix I to Chapter 2

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


Defense Federal Acquisition Regulation Supplement: Mentor-
Prot[eacute]g[eacute] Program Modifications (DFARS Case 2017-D016)

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

ACTION: Proposed rule.

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

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before July 3, 2018, to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2017-D016, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2017-D016'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2017-D016.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2017-D016'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2017-D016 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Jennifer D. 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).

[[Page 19678]]


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

SUPPLEMENTARY INFORMATION: 

I. Background

    This rule proposes to revise the DFARS to implement section 1823 
and paragraph (b) of section 1813 of the National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2017 (Pub. L. 114-328). Sections 1823 
and 1813 provide modifications to the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program (``the Program''). Section 1823 revises 
the definition and requirements associated with affiliation between 
mentor firms and their prot[eacute]g[eacute] firms. Both sections add 
new types of assistance for mentor firms to provide to their 
prot[eacute]g[eacute] firms.

II. Discussion and Analysis

    This rule proposes amendments to DFARS subpart 219.71 and Appendix 
I as summarized in the following paragraphs:
    A. Subpart 219.71, Pilot Mentor-Prot[eacute]g[eacute] Program. 
Section 219.7100, Scope, is amended to reflect the date of the most 
recent statutory changes to the Program.
    B. Appendix I, Policy and Procedures for the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program.
     Section I-101, Definitions, is amended to add the 
definition of ``affiliation'' provided in section 1823.
     Section I-102, Participant eligibility, is amended to add 
new paragraph (e), which specifies that a mentor firm may not enter 
into an agreement with a prot[eacute]g[eacute] firm if the Small 
Business Administration (SBA) has made a determination of affiliation. 
In addition, paragraph (e) addresses the conditions under which DoD 
will request a determination from SBA regarding affiliation.
     Section I-106, Development of mentor-prot[eacute]g[eacute] 
agreements, is amended to add women's business centers under 15 U.S.C. 
656 as a form of assistance that a mentor firm can obtain for a 
prot[eacute]g[eacute] firm.
     Section I-107, Elements of a mentor-prot[eacute]g[eacute] 
agreement, is amended to add new paragraph (h), which implements the 
requirement provided in section 1813 for mentor-prot[eacute]g[eacute] 
agreements to include assistance the mentor firm will provide to the 
prot[eacute]g[eacute] firm in understanding Federal contract 
regulations, including the FAR and DFARS.

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

    This rule does not propose to create 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, Reducing Regulation and 
Controlling Regulatory Costs, because this rule is not a significant 
regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because of the relatively small number of small entities who 
participate in the DoD Pilot Mentor-Prot[eacute]g[eacute] Program. 
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 1823 and paragraph 
(b) of section 1813 of the National Defense Authorization Act (NDAA) 
for Fiscal Year (FY) 2017 (Pub. L. 114-328), which provide 
modifications to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program 
(``the Program''). Specifically, section 1823 revises the definition 
and requirements associated with affiliation between mentor firms and 
their prot[eacute]g[eacute] firms. Both sections add new types of 
assistance for mentors to provide to their prot[eacute]g[eacute]s.
    The objective of this rule is to implement statutory modifications 
to the Program. The legal basis for the modifications is sections 1823 
and paragraph (b) of section 1813 of the NDAA for FY 2017.
    The rule will apply to small entities that participate in the 
Program. There are currently 85 small entities participating in the 
Program.
    The rule does not impose any reporting or recordkeeping 
requirements on any small entities.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known, significant, alternative approaches to the 
proposed rule that would meet the requirements of the applicable 
statute.
    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 2017-D016), in 
correspondence.

VII. Paperwork Reduction Act

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

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

    Government procurement.

Amy G. Williams,
Deputy, 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 removing ``November 25, 2015'' and adding 
``December 23, 2016'' in its place.
0
3. Amend appendix I to chapter 2 as follows:
0
a. In section I-101 by--
0
i. Redesignating sections I-101.1 through I-101.6 as sections I-101.2 
through I-101.7, respectively; and
0
ii. Adding new section I-101.1.
0
b. In section I-102 by--

[[Page 19679]]

0
i. Redesignating paragraphs (e) and (f) as paragraphs (f) and (g), 
respectively;
0
ii. Adding new paragraph (e); and
0
iii. In newly redesignated paragraph (f), removing ``Subpart 9.4'' and 
adding ``subpart 9.4'' in its place.
0
c. In section I-106 by adding paragraph (d)(6)(v).
0
d. In section I-107 by--
0
i. Redesignating paragraphs (h) through (o) as paragraphs (i) through 
(p), respectively; and
0
ii. Adding new paragraph (h).
    The additions read as follows:

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

* * * * *

I-101.1 Affiliation.

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

I-102 Participant eligibility.

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

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

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

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

* * * * *
    (h) The assistance the mentor will provide to the 
prot[eacute]g[eacute] firm in understanding Federal contract 
regulations, including the FAR and DFARS, after award of a 
subcontract under the Program, if applicable;
* * * * *
[FR Doc. 2018-09487 Filed 5-3-18; 8:45 am]
 BILLING CODE 5001-06-P