15 U.S.C. § 657r — Mentor-protege programs

Page 1075 TITLE 15—COMMERCE AND TRADE § 657r than $2,000,000, unless the senior procurement executive or Chief Acquisition Officer for the Federal agency, before carrying out the acqui- sition strategy— (A) conducts market research; (B) identifies any alternative contracting approaches that would involve a lesser de- gree of consolidation of contract require- ments; (C) makes a written determination that the consolidation of contract requirements is necessary and justified; (D) identifies any negative impact by the acquisition strategy on contracting with small business concerns; and (E) ensures that steps will be taken to in- clude small business concerns in the acquisi- tion strategy. (2) Determination that consolidation is nec- essary and justified (A) In general A senior procurement executive or Chief Acquisition Officer may determine that an acquisition strategy involving a consolida- tion of contract requirements is necessary and justified for the purposes of paragraph (1)(C) if the benefits of the acquisition strat- egy substantially exceed the benefits of each of the possible alternative contracting ap- proaches identified under paragraph (1)(B). (B) Savings in administrative or personnel costs For purposes of subparagraph (A), savings in administrative or personnel costs alone do not constitute a sufficient justification for a consolidation of contract requirements in a procurement unless the expected total amount of the cost savings, as determined by the senior procurement executive or Chief Acquisition Officer, is expected to be substantial in relation to the total cost of the procurement. (C) Notice Not later than 7 days after making a deter- mination that an acquisition strategy in- volving a consolidation of contract require- ments is necessary and justified under sub- paragraph (A), the senior procurement exec- utive or Chief Acquisition Officer shall pub- lish a notice on a public website that such determination has been made. Any solicita- tion for a procurement related to the acqui- sition strategy may not be published earlier than 7 days after such notice is published. Along with the publication of the solicita- tion, the senior procurement executive or Chief Acquisition Officer shall publish a jus- tification for the determination, which shall include the information in subparagraphs (A) through (E) of paragraph (1). (3) Benefits to be considered The benefits considered for the purposes of paragraphs (1) and (2) may include cost and, regardless of whether quantifiable in dollar amounts— (A) quality; (B) acquisition cycle; (C) terms and conditions; and (D) any other benefit. (Pub. L. 85–536, § 2[44], as added Pub. L. 111–240, title I, § 1313(a)(2), Sept. 27, 2010, 124 Stat. 2538; amended Pub. L. 112–239, div. A, title XVI, § 1671(a), (b), (c)(2), Jan. 2, 2013, 126 Stat. 2084, 2085; Pub. L. 113–291, div. A, title VIII, § 822(b), Dec. 19, 2014, 128 Stat. 3436; Pub. L. 114–92, div. A, title VIII, § 863(b), (c), Nov. 25, 2015, 129 Stat. 926, 927.) Editorial Notes PRIOR PROVISIONS A prior section 2[44] of Pub. L. 85–536 was renumbered section 2[49] and is set out as a note under section 631 of this title. AMENDMENTS 2015—Subsec. (c)(1). Pub. L. 114–92, § 863(c), sub- stituted ‘‘The head’’ for ‘‘Subject to paragraph (4), the head’’ in introductory provisions. Subsec. (c)(2)(C). Pub. L. 114–92, § 863(b), added subpar. (C). 2014—Subsec. (a)(1). Pub. L. 113–291, § 822(b)(1), in- serted ‘‘appointed or’’ before ‘‘designated’’ and sub- stituted ‘‘section 1702(a) of title 41’’ for ‘‘section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(a))’’. Subsec. (a)(3). Pub. L. 113–291, § 822(b)(2), substituted ‘‘section 1702(c) of title 41’’ for ‘‘section 16(c) of the Of- fice of Federal Procurement Policy Act (41 U.S.C. 414(c))’’. 2013—Subsec. (a)(2). Pub. L. 112–239, § 1671(a), sub- stituted ‘‘or a multiple award contract—’’ and subpars. (A) and (B) for ‘‘or a multiple award contract to satisfy 2 or more requirements of the Federal agency for goods or services that have been provided to or performed for the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited; and’’. Subsec. (c)(1)(E). Pub. L. 112–239, § 1671(b), substituted ‘‘ensures’’ for ‘‘certifies to the head of the Federal agency’’. Subsec. (c)(4). Pub. L. 112–239, § 1671(c)(2), struck out par. (4). Prior to amendment, text read as follows: ‘‘(A) IN GENERAL.—The Department of Defense and each military department shall comply with this sec- tion until after the date described in subparagraph (C). ‘‘(B) RULE.—After the date described in subparagraph (C), contracting by the Department of Defense or a military department shall be conducted in accordance with section 2382 of title 10. ‘‘(C) DATE.—The date described in this subparagraph is the date on which the Administrator determines the Department of Defense or a military department is in compliance with the Government-wide contracting goals under section 644 of this title.’’ § 657r. Mentor-protege programs (a) Administration program (1) Authority The Administrator is authorized to establish a mentor-protege program for all small busi- ness concerns. (2) Model for program The mentor-protege program established under paragraph (1) shall be identical to the mentor-protege program of the Administra- tion for small business concerns that partici- pate in the program under section 637(a) of this title (as in effect on January 2, 2013), ex- cept that the Administrator may modify the program to the extent necessary given the types of small business concerns included as proteges. Page 1076 TITLE 15—COMMERCE AND TRADE § 657r (3) Puerto Rico businesses During the period beginning on August 13, 2018, and ending on the date on which the Oversight Board established under section 2121 of title 48 terminates, the Administrator shall identify potential incentives to a covered men- tor that awards a subcontract to its covered protege, including— (A) positive consideration in any past per- formance evaluation of the covered mentor; and (B) the application of costs incurred for providing training to such covered protege to the subcontracting plan (as required under paragraph (4) or (5) of section 637(d) of this title) of the covered mentor. (4) Covered territory businesses During the period beginning on January 1, 2021, and ending on the date that is 4 years after such date, the Administrator shall iden- tify potential incentives to a covered territory mentor that awards a subcontract to its cov- ered territory protege, including— (A) positive consideration in any past per- formance evaluation of the covered territory mentor; and (B) the application of costs incurred for providing training to such covered territory protege to the subcontracting plan (as re- quired under paragraph (4) or (5) of section 637(d) of this title) of the covered territory mentor. (b) Programs of other agencies (1) Approval required Except as provided in paragraph (4), a Fed- eral department or agency may not carry out a mentor-protege program for small business concerns unless— (A) the head of the department or agency submits a plan to the Administrator for the program; and (B) the Administrator approves such plan. (2) Basis for approval The Administrator shall approve or dis- approve a plan submitted under paragraph (1) based on whether the program proposed— (A) will assist proteges to compete for Fed- eral prime contracts and subcontracts; and (B) complies with the regulations issued under paragraph (3). (3) Regulations Not later than 270 days after January 2, 2013, the Administrator shall issue, subject to no- tice and comment, regulations with respect to mentor-protege programs, which shall ensure that such programs improve the ability of pro- teges to compete for Federal prime contracts and subcontracts and which shall address, at a minimum, the following: (A) Eligibility criteria for program partici- pants, including any restrictions on the number of mentor-protege relationships per- mitted for each participant, except that such restrictions shall not apply to up to 2 mentor-protege relationships if such rela- tionships— (i) are between a covered protege and a covered mentor; or (ii) are between a covered territory pro- tege and a covered territory mentor. (B) The types of developmental assistance to be provided by mentors, including how the assistance provided shall improve the competitive viability of the proteges. (C) Whether any developmental assistance provided by a mentor may affect the status of a program participant as a small business concern due to affiliation. (D) The length of mentor-protege relation- ships. (E) The effect of mentor-protege relation- ships on contracting. (F) Benefits that may accrue to a mentor as a result of program participation. (G) Reporting requirements during pro- gram participation. (H) Postparticipation reporting require- ments. (I) The need for a mentor-protege pair, if accepted to participate as a pair in a men- tor-protege program of any Federal depart- ment or agency, to be accepted to partici- pate as a pair in all Federal mentor-protege programs. (J) Actions to be taken to ensure benefits for proteges and to protect a protege against actions by a mentor that— (i) may adversely affect the protege’s status as a small business concern; or (ii) provide disproportionate economic benefits to the mentor relative to those provided the protege. (K) The types of assistance provided by a mentor to assist with compliance with the requirements of contracting with the Fed- eral Government after award of a contract or subcontract under this section. (4) Limitation on applicability Paragraph (1) does not apply to the fol- lowing: (A) Any mentor-protege program of the Department of Defense. (B) Any mentoring assistance provided under a Small Business Innovation Research Program or a Small Business Technology Transfer Program. (C) Until the date that is 1 year after the date on which the Administrator issues reg- ulations under paragraph (3), any Federal department or agency operating a mentor- protege program in effect on January 2, 2013. (c) Reporting (1) In general Not later than 2 years after January 2, 2013, and annually thereafter, the Administrator shall submit to the Committee on Small Busi- ness of the House of Representatives and the Committee on Small Business and Entrepre- neurship of the Senate a report that— (A) identifies each Federal mentor-protege program; (B) specifies the number of participants in each such program, including the number of participants that are— (i) small business concerns; (ii) small business concerns owned and controlled by service-disabled veterans; Page 1077 TITLE 15—COMMERCE AND TRADE § 657s (iii) qualified HUBZone small business concerns; (iv) small business concerns owned and controlled by socially and economically disadvantaged individuals; or (v) small business concerns owned and controlled by women; (C) describes the type of assistance pro- vided to proteges under each such program; (D) describes the benefits provided to men- tors under each such program; and (E) describes the progress of proteges under each such program with respect to competing for Federal prime contracts and subcontracts. (2) Provision of information The head of each Federal department or agency carrying out a mentor-protege pro- gram shall provide to the Administrator, on an annual basis, the information necessary for the Administrator to submit a report required under paragraph (1). (d) Definitions In this section, the following definitions apply: (1) Mentor The term ‘‘mentor’’ means a for-profit busi- ness concern, of any size, that— (A) has the ability to assist and commits to assisting a protege to compete for Federal prime contracts and subcontracts; and (B) satisfies any other requirements im- posed by the Administrator. (2) Mentor-protege program The term ‘‘mentor-protege program’’ means a program that pairs a mentor with a protege for the purpose of assisting the protege to compete for Federal prime contracts and sub- contracts. (3) Protege The term ‘‘protege’’ means a small business concern that— (A) is eligible to enter into Federal prime contracts and subcontracts; and (B) satisfies any other requirements im- posed by the Administrator. (4) Covered mentor The term ‘‘covered mentor’’ means a mentor that enters into an agreement under this chap- ter, or under any mentor-protege program ap- proved under subsection (b)(1), with a covered protege. (5) Covered protege The term ‘‘covered protege’’ means a protege of a covered mentor that is a Puerto Rico busi- ness. (6) Covered territory mentor The term ‘‘covered territory mentor’’ means a mentor that enters into an agreement under this chapter, or under any mentor-protege pro- gram approved under subsection (b)(1), with a covered territory protege. (7) Covered territory protege The term ‘‘covered territory protege’’ means a protege of a covered territory mentor that is a covered territory business. (e) Current mentor protege agreements Mentors and proteges with approved agree- ment in a program operating pursuant to sub- section (b)(4)(C) shall be permitted to continue their relationship according to the terms speci- fied in their agreement until the expiration date specified in the agreement. (f) Submission of agency plans Agencies operating mentor protege programs pursuant to subsection (b)(4)(C) shall submit the plans specified in subsection (b)(1)(A) to the Ad- ministrator within 6 months of the promulga- tion of rules required by subsection (b)(3). The Administrator shall provide initial comments on each plan within 60 days of receipt, and final ap- proval or denial of each plan within 180 days after receipt. (Pub. L. 85–536, § 2[45], as added Pub. L. 112–239, div. A, title XVI, § 1641(2), Jan. 2, 2013, 126 Stat. 2077; amended Pub. L. 114–328, div. A, title XVIII, § 1813(e), Dec. 23, 2016, 130 Stat. 2653; Pub. L. 115–232, div. A, title VIII, § 861(d), (e), Aug. 13, 2018, 132 Stat. 1896, 1897; Pub. L. 116–283, div. A, title VIII, § 866(c), Jan. 1, 2021, 134 Stat. 3786.) Editorial Notes PRIOR PROVISIONS A prior section 2[45] of Pub. L. 85–536 was renumbered section 2[49] and is set out as a note under section 631 of this title. AMENDMENTS 2021—Subsec. (a)(4). Pub. L. 116–283, § 866(c)(1), added par. (4). Subsec. (b)(3)(A). Pub. L. 116–283, § 866(c)(2), sub- stituted ‘‘relationships—’’ and cls. (i) and (ii) for ‘‘rela- tionships are between a covered protege and covered mentor.’’ Subsec. (d)(6), (7). Pub. L. 116–283, § 866(c)(3), added pars. (6) and (7). 2018—Subsec. (a)(3). Pub. L. 115–232, § 861(d)(1), added par. (3). Subsec. (b)(3)(A). Pub. L. 115–232, § 861(e), inserted ‘‘, except that such restrictions shall not apply to up to 2 mentor-protege relationships if such relationships are between a covered protege and covered mentor’’ after ‘‘each participant’’. Subsec. (d)(4), (5). Pub. L. 115–232, § 861(d)(2), added pars. (4) and (5). 2016—Subsec. (b)(3)(K). Pub. L. 114–328 added subpar. (K). § 657s. Limitations on subcontracting (a) In general If awarded a contract under section 637(a), 637(m), 644(a), 657a, or 657f of this title, a covered small business concern— (1) in the case of a contract for services, may not expend on subcontractors more than 50 percent of the amount paid to the concern under the contract; (2) in the case of a contract for supplies (other than from a regular dealer in such sup- plies), may not expend on subcontractors more than 50 percent of the amount, less the cost of materials, paid to the concern under the con- tract; (3) in the case of a contract described in paragraphs (1) and (2)— (A) shall determine for which category, services (as described in paragraph (1)) or