83 FR 54677 - Defense Federal Acquisition Regulation Supplement: Mentor-Protege Program Modifications (DFARS Case 2017-D016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 83, Issue 211 (October 31, 2018)

Page Range		54677-54679
FR Document		2018-23673

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

Federal Register, Volume 83 Issue 211 (Wednesday, October 31, 2018)

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


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 219 and Appendix I to Chapter 2

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


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

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

ACTION: Final rule.

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

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

DATES: Effective October 31, 2018.

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

SUPPLEMENTARY INFORMATION: 

I. Background

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

[[Page 54678]]

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

II. Discussion and Analysis

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

A. Summary of Significant Changes From the Proposed Rule

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

B. Analysis of Public Comments

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

C. Other Changes

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

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

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

IV. Executive Orders 12866 and 13563

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

V. Executive Order 13771

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

VI. Regulatory Flexibility Act

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

VII. Paperwork Reduction Act

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

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

    Government procurement.

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

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

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

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

PART 219--SMALL BUSINESS PROGRAMS


219.7100  [Amended]

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

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

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

* * * * *

I-101.1 Affiliation.

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

[[Page 54679]]

I-102 Participant eligibility.

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

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

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

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

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

Federal Register / Vol. 83, No. 211 / Wednesday, October 31, 2018 / Rules and Regulations 54677

Task Force to review and validate DoD contractors or offerors. This final rule is ■ 1. The authority citation for 48 CFR
regulations, including the DFARS. A not required to be published for public parts 211 and 252 continues to read as
public notice of the establishment of the comment, because DoD is not issuing a follows:
DFARS Subgroup to the DoD Regulatory new regulation; rather, this rule merely Authority: 41 U.S.C. 1303 and 48 CFR
Reform Task Force, for the purpose of removes an obsolete requirement from chapter 1.
reviewing DFARS provisions and the DFARS.
clauses, was published in the Federal PART 211—DESCRIBING AGENCY
Register at 82 FR 35741 on August 1, IV. Executive Orders 12866 and 13563
NEEDS
2017, and requested public input. The E.O. 12866, Regulatory Planning and
following public comment was received 211.002–70 [Removed]
Review, and E.O. 13563, Improving
on this clause: Regulation and Regulatory Review, ■ 2. Remove section 211.002–70.
Comment: The respondent states that direct agencies to assess all costs and
the clause is ineffective, because a benefits of available regulatory PART 252—SOLICITATION
contractor who has already been alternatives and, if regulation is PROVISIONS AND CONTRACT
awarded a contract may have a vested necessary, to select regulatory CLAUSES
interest in preserving the contract, as approaches that maximize net benefits
awarded, and may not be the best source 252.211–7000 [Removed and Reserved]
(including potential economic,
for innovation. Instead, the respondent environmental, public health and safety ■ 3. Remove and reserve section
suggests that targeted surveys sent to effects, distributive impacts, and 252.211–7000.
both successful and unsuccessful equity). E.O. 13563 emphasizes the [FR Doc. 2018–23678 Filed 10–30–18; 8:45 am]
offerors after award may be more importance of quantifying both costs BILLING CODE 5001–06–P
effective than a mandatory clause for a and benefits, of reducing costs, of
single awardee. harmonizing rules, and of promoting
Response: DoD will continue to flexibility. The Office of Management DEPARTMENT OF DEFENSE
encourage industry participation during and Budget, Office of Information and
the design and development of contract Regulatory Affairs, has determined that Defense Acquisition Regulations
requirements and through other this is not a significant regulatory action System
methods. as defined under section 3(f) of E.O.
The DoD Task Force reviewed the 12866 and, therefore, was not subject to 48 CFR Part 219 and Appendix I to
requirements of DFARS clause 252.211– review under section 6(b). This rule is Chapter 2
7000, Acquisition Streamlining, and not a major rule as defined at 5 U.S.C. [Docket DARS–2018–0019]
determined that the DFARS coverage 804(2).
was unnecessary and recommended RIN 0750–AJ25
removal. V. Executive Order 13771
Defense Federal Acquisition
II. Applicability to Contracts at or This rule is not an E.O. 13771 Regulation Supplement: Mentor-
Below the Simplified Acquisition regulatory action, because this rule is Protege Program Modifications
Threshold and for Commercial Items, not significant under E.O. 12866. (DFARS Case 2017–D016)
Including Commercially Available Off-
VI. Regulatory Flexibility Act AGENCY: Defense Acquisition
the-Shelf Items
Because a notice of proposed Regulations System, Department of
This rule only removes obsolete
rulemaking and an opportunity for Defense (DoD).
DFARS clause 252.211–7000,
Acquisition Streamlining. Therefore, the public comment are not required to be ACTION: Final rule.
rule does not impose any new given for this rule under 41 U.S.C.
1707(a)(1) (see section III. of this SUMMARY: DoD is issuing a final rule
requirements on contracts at or below amending the Defense Federal
the simplified acquisition threshold and preamble), the analytical requirements
of the Regulatory Flexibility Act (5 Acquisition Regulation Supplement
for commercial items, including (DFARS) to implement sections of the
commercially available off-the-shelf U.S.C. 601 et seq.) are not applicable.
Accordingly, no regulatory flexibility National Defense Authorization Act for
items. Fiscal Year 2017 that provide
analysis is required, and none has been
III. Publication of This Final Rule for prepared. modifications to the DoD Pilot Mentor-
Public Comment Is Not Required by Protégé Program.
Statute VII. Paperwork Reduction Act DATES: Effective October 31, 2018.
The statute that applies to the The rule does not contain any FOR FURTHER INFORMATION CONTACT: Ms.
publication of the FAR is the Office of information collection requirements that Jennifer D. Johnson, telephone 571–
Federal Procurement Policy statute require the approval of the Office of 372–6100.
(codified at title 41 of the United States Management and Budget under the SUPPLEMENTARY INFORMATION:
Code). Specifically, 41 U.S.C. 1707(a)(1) Paperwork Reduction Act (44 U.S.C.
requires that a procurement policy, chapter 35). I. Background
regulation, procedure, or form List of Subjects in 48 CFR Parts 211 and DoD published a proposed rule in the
(including an amendment or 252 Federal Register at 83 FR 19677 on May
modification thereof) must be published 4, 2018, to implement section 1823 and
for public comment if it relates to the Government procurement. paragraph (b) of section 1813 of the
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expenditure of appropriated funds, and National Defense Authorization Act
Jennifer Lee Hawes,
has either a significant effect beyond the (NDAA) for Fiscal Year (FY) 2017.
Regulatory Control Officer, Defense
internal operating procedures of the Sections 1823 and 1813 provide
Acquisition Regulations System.
agency issuing the policy, regulation, modifications to the DoD Pilot Mentor-
procedure, or form, or has a significant Therefore, 48 CFR parts 211 and 252 Protégé Program (‘‘the Program’’).
cost or administrative impact on are amended as follows: Section 1823 revises the definition and

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Federal Register / Vol. 83, No. 211 / Wednesday, October 31, 2018 / Rules and Regulations 54679

I–102 Participant eligibility. associated clause prescription at DFARS The removal of this DFARS provision
* * * * * 228.170. The Miller Act (40 U.S.C. 3131 supports a recommendation from the
(e) A mentor firm may not enter into an to 3134) requires contractors on certain DoD Regulatory Reform Task Force. On
agreement with a protégé firm if SBA has construction contracts to post bonds February 24, 2017, the President signed
made a determination of affiliation. If SBA that guarantee performance of the Executive Order (E.O.) 13777,
has not made such a determination and if the contract and payment to subcontractors ‘‘Enforcing the Regulatory Reform
DoD Office of Small Business Programs and suppliers. Several Federal Agenda,’’ which established a Federal
(OSBP) has reason to believe, based on SBA’s
regulations regarding affiliation, that the
Acquisition Regulation (FAR) clauses policy ‘‘to alleviate unnecessary
mentor firm is affiliated with the protégé are available to implement these regulatory burdens’’ on the American
firm, then DoD OSBP will request a requirements on construction contracts. people. In accordance with E.O. 13777,
determination regarding affiliation from SBA. While the guarantees of the Miller Act DoD established a Regulatory Reform
* * * * * do not apply to contracts for demolition, Task Force to review and validate DoD
dismantling, or removal of regulations, including the DFARS. A
I–106 Development of mentor-protégé improvements, FAR 37.302 permits the public notice of the establishment of the
agreements. contracting officer to require a DFARS Subgroup to the DoD Regulatory
* * * * * performance bond or other security, in Reform Task Force, for the purpose of
(d) * * * accordance with FAR 28.103, on such reviewing DFARS provisions and
(6) * * * contracts when it is necessary to ensure clauses, was published in the Federal
(v) Women’s business centers described in
section 29 of the Small Business Act (15
completion of the work or protect Register at 82 FR 35741 on August 1,
U.S.C. 656). property or payment of suppliers. 2017, and requested public input. No
For DoD, when performance bonds or public comments were received on this
* * * * *
other securities are necessary for provision. The DoD Task Force
I–107 Elements of a mentor-protégé contracts that involve dismantling, reviewed the requirements of DFARS
agreement. demolition, or removal of provision 252.228–7004, Bonds and
* * * * * improvements, this DFARS provision is Other Security, and determined that the
(h) The assistance the mentor will provide included in the solicitation. The DFARS coverage was unnecessary and
to the protégé firm in understanding Federal provision requires offerors to furnish a recommended removal.
contract regulations, including the FAR and bid guarantee with their offer; advises
DFARS, after award of a subcontract under II. Applicability to Contracts at or
the Program, if applicable;
that, upon notice of award, the Below the Simplified Acquisition
successful offeror shall provide the Threshold and for Commercial Items,
* * * * * Government with the performance bond
[FR Doc. 2018–23673 Filed 10–30–18; 8:45 am] Including Commercially Available Off-
and any payment due within a set the-Shelf Items
BILLING CODE 5001–06p–P
timeframe; and, identifies the acceptable
sureties that can be used to support the This rule only removes obsolete
DEPARTMENT OF DEFENSE bond. DFARS provision 252.228–7004, Bonds
In reviewing existing FAR provisions or Other Security. Therefore, the rule
Defense Acquisition Regulations and clauses, it was determined that FAR does not impose any new requirements
System clause 52.228–16, Performance and on contracts at or below the simplified
Payment Bonds—Other than acquisition threshold and for
48 CFR Parts 228 and 252 Construction, and FAR provision commercial items, including
52.228–1, Bid Guarantee, provide the commercially available off-the-shelf
[Docket DARS–2018–0049] information contained in the DFARS items.
RIN 0750–AJ98 provision and can be included in III. Publication of This Final Rule for
solicitations and contracts that involve Public Comment Is Not Required by
Defense Federal Acquisition dismantling, demolition, or removal of Statute
Regulation Supplement: Repeal of improvements. The FAR clause ensures
DFARS Provision ‘‘Bonds or Other completion of the work; protects The statute that applies to the
Security’’ (DFARS Case 2018–D036) property associated with the contract publication of the FAR is Office of
effort; requires the offeror to furnish a Federal Procurement Policy statute
AGENCY: Defense Acquisition performance bond within a set amount (codified at title 41 of the United States
Regulations System, Department of of time after receiving a notice of award; Code). Specifically, 41 U.S.C. 1707(a)(1)
Defense (DoD). and, specifies that bonds must be requires that a procurement policy,
ACTION: Final rule. supported by specific sureties. The FAR regulation, procedure, or form
provision requires offerors to provide a (including an amendment or
SUMMARY: DoD is issuing a final rule
bid guarantee prior to the opening of modification thereof) must be published
amending the Defense Federal
bids; includes the form and amount of for public comment if it relates to the
Acquisition Regulation Supplement
the guarantee to be provided; advises expenditure of appropriated funds, and
(DFARS) to remove a provision that is
that a resultant contract may be has either a significant effect beyond the
no longer necessary.
terminated for failure to provide an internal operating procedures of the
DATES: Effective October 31, 2018. executed bond after contract award; agency issuing the policy, regulation,
FOR FURTHER INFORMATION CONTACT: Ms. and, states that the bid guarantee will be procedure, or form, or has a significant
Carrie Moore, telephone 571–372–6093. used to offset cost in the event of a cost or administrative impact on
amozie on DSK3GDR082PROD with RULES

SUPPLEMENTARY INFORMATION: termination for default. Since the FAR contractors or offerors. This final rule is
provision and clause can be used to not required to be published for public
I. Background provide the same information included comment, because DoD is not issuing a
DoD is amending the DFARS to in DFARS provision, this DFARS new regulation; rather, this rule merely
remove DFARS provision 252.228–7004, provision is no longer necessary and can removes an obsolete requirement from
Bonds or Other Security, and the be removed. the DFARS.

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Document Created: 2018-10-31 00:32:42
Document Modified: 2018-10-31 00:32:42

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 October 31, 2018.
Contact		Ms. Jennifer D. Johnson, telephone 571-372-6100.
FR Citation		83 FR 54677
RIN Number		0750-AJ25

83 FR 54677 - Defense Federal Acquisition Regulation Supplement: Mentor-Protege Program Modifications (DFARS Case 2017-D016)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 83, Issue 211 (October 31, 2018)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System