Mentor Protege Program for enhancing capabilities of protégé firms

1. Mentor-Protg Program

2. Regulations DFARS 219.71 DFARS Appendix I

3. Purpose Provide incentives to major DoD contractors to assist protg firms in enhancing their capabilities to satisfy DoD and other contract and subcontract reqmt Increase overall participation of protg firms as subktrs and suppliers Foster long-term business relationships b/w protg firms and such contractors

4. Mentors A mentor must Be a large business with an active subcontracting plan and eligible for Federal awards Or, be a graduated 8(a) firm

5. Protg a small disadvantaged business, or a woman-owned small business, or a HUBZone small business, or a Service-Disabled Veteran-owned SB, or a qualified organization employing the severely disabled

6. Mentor Incentives Reimbursement for development costs Separately priced contract line item on DoD contract, or A separate contract Limited to $1,000,000 per fiscal year Credit toward SDB subcontracting goals

7. Protg Assistance Assistance by mentor to protg Assistance from mentor personnel in General business management Engineering and technical matters (e.g., production inventory control and quality assurance) Other assistance to develop capabilities of protg Award of subcontracts under DoD contracts on a noncompetitive basis. Payment of progress payments (cannot exceed 100% of costs of performance of contract)

8. Protg Assistance Advance payments Loans Investments in protg firm in exchange for ownership interest (not to exceed 10% ownership) Assistance through Small Business Development Center (SBDC) Procurement Technical Assistance Center (PTAC) Historically Black colleges and universities Minority Institutions

9. Length of the agreement 3 years 5 years in unusual circumstances

10. 8(A) Business Development Mentor-Protg Program

11. SBA Mentor-Protg Program F What Is the Purpose of the Mentor- Protg Program? F To Encourage Approved Mentors to Provide Various Forms of Assistance to Eligible Participants. F To Serve As an Additional Developmental Tool for 8(a) Participants. F To Enhance the Capabilities of the Protg and to Improve Its Ability to Successfully Compete for Contracts.

12. SBA Mentor-Protg Program F What Type of Assistance Will the Mentor Provide the Protg? F Technical and Management Assistance F Financial Assistance in the Form of Equity Investments or Loans F Sub-contractual Support F Assistance in Performing Prime Contracts Through Joint Venture (JV) Arrangements

13. SBA Mentor-Protg Program F What Are the Requirements to Become a Mentor? F A Mentor Can Be an 8(a) Participant in the Transitional Stage, a Firm That Has Graduated From the 8(a) Program, Another Small Business, or a Large Business. A Mentor Must Show Both a Commitment and the Ability to Assist a Protg in the Program F A Mentor Must Demonstrate That It: Possesses Favorable Financial Health Possesses Good Character Is Not on the Federal Debarred or Suspended List Can Provide Valuable Support to a Protg

14. SBA Mentor-Protg Program What Are the Requirements to Become a Protg? To Qualify As a Protg, an 8(a) Participant Must: Be an 8(a) Participant That Is in the Program Developmental Stage, or Be an 8(a) Participant That Has Never Received an 8(a) Contract, or Is Less Than Half the Size Standard Corresponding to Its Primary SIC Code, and Be an 8(a) Participant in Good Standing

15. SBA Mentor-Protg Program How Many Protgs Can a Mentor Have? Unless Approved by the Associate Administrator for 8(a) Business Development (AA/8(a)BD), a Mentor Can Have Only One Protg at a Time. The AA/8(a) BD Will Authorize a Mentor to Have More Than One Protg Only If It Demonstrates That the Additional Mentor-protg Relationship(s) Will Not Adversely Affect the Development of Either Protg .

16. SBA Mentor-Protg Program What Are the Benefits of Participating in the Mentor-protg Program? Joint Venture Arrangements Mentor Financing of the Protg (up to 40% Equity Interest) The Protg Is Eligible for Other SBA Assistance As a Small Business (Including Financial) No Determination of Affiliation or Control May Be Found Based on the Agreement or Any Assistance Provided Pursuant to the Agreement

17. SBA Mentor-Protg Program Can a Large Business and Small Business Joint Venture on Projects Under the Mentor-Protg Program? Yes - In Accordance With 13 C.F.R. 124.513(b)(3) - a Joint Venture Between an Approved Mentor and a Protg Firm Will Be Deemed Small Provided the Protg Qualifies As Small for the Size Standard Corresponding to the SIC Code Assigned to the Procurement and Has Not Reached the Dollar Limit.

18. SBA Mentor-Protg Program Is There a Minimum Term for a Mentor-Protg Agreement? Yes. Under the agreement, the Mentor must provide assistance to the Protg for at least one year.

19. SBA Mentor-Protg Program What Must a Mentor-Protg Agreement Include? Must Be in Writing Must Include an Assessment of the Protgs Needs Must Include a Description of the Specific Assistance That the Mentor Will Provide to Address Those Needs Must be for at least one year Must include a provision that either party can terminate with 30 days advance notice to the other party and SBA

20. SBA Mentor-Protg Program Who Approves a Mentor-Protg Agreement and How Is It Approved? The Agreement is submitted to the BOS in the protgs District Office District Office Recommends Approval or Disapproval of the Agreement and forwards the Agreement to Headquarters Associate Administrator for 8(a)Business Development (Delorice Price Ford) approves or disapproves the Agreement

21. SBA Mentor-Protg Program When Will SBA Not Approve a Mentor-Protg Agreement? If the Assistance to be Provided is Not Sufficient to Promote Any Real Gains to the Protg If the Agreement is Just a Mechanism to Enable a Non-8(a) Participant to Receive 8(a) Contracts

22. SBA Mentor-Protg Program Can a Mentor-Protg Agreement Be Modified Without SBAs Approval? NO

23. SBA Mentor-Protg Program How Will SBA Annually Evaluate a Mentor-protg Relationship? In Its Annual Business Plan Update, the Protg Must Certify That the Mentor-protg Agreement Has Not Been Modified Without Prior SBA Approval. The DO Will Review the Mentor-protg Relationship Report As Part of the Annual Review of the Protgs Business Plan Reporting Requirements for Protg Firms: The Annual Update Must Describe: All Federal Contracts Awarded to the Mentor-protg Relationship As Joint Ventures

24. SBA Mentor-Protg Program How Will SBA Annually Evaluate a Mentor-protg Relationship? A Narrative Describing Mentors Success in Assisting Protg All Technical And/or Management Assistance Provided by Mentor; All Loans Received From, or Equity Investments Made by the Mentor; All Subcontracts Awarded by the Mentor, and the Value of Each of Each Subcontract;

25. SBA Mentor-Protg Program How Will SBA Annually Evaluate a Mentor-protg Relationship? If Continuation of the Agreement Is Recommended, Then the ADD/8(a)BD Will Forward Its Recommendation to the DD for Final Approval.

26. SBA Mentor-Protg Program QUESTIONS?