Barry McVay's FEDERAL CONTRACTS DISPATCH
DATE: February 10, 2000
FROM: Barry McVay, CPCM
SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Mentor-Protege Program Improvements
SOURCE: Federal Register, February 10, 2000, Vol. 65, No. 28, page 6554
AGENCIES: Department of Defense (DOD)
ACTION: Interim Rule
SYNOPSIS: DOD is amending the DFARS to implement Section 811 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65), which extends the DOD Pilot Mentor-Protege Program and amends various related statutory provisions.
DATE: The interim rule is effective February 10, 2000. Comments on the interim rule should be submitted on or before April 10, 2000, to be considered in the formation of the final rule.
ADDRESSES: Submit comments to Defense Acquisition Regulations Council, Attn: Ms. Susan Schneider, PDUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062, fax: 703-602-0350. E-mail comments should be addressed to: firstname.lastname@example.org. Cite DFARS Case 99-D307 in all correspondence related to this interim rule.
FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, 703-602-0326.
SUPPLEMENTAL INFORMATION: This interim rule revises DFARS Subpart 219.71, Pilot Mentor-Protege Program, and DFARS Appendix I, Policy and Procedures for the DOD Pilot Mentor-Protege Program, to extend the period for entering into mentor-protege agreements from September 30, 1999, until September 30, 2002; extend the period during which mentor firms may incur costs under the program from September 30, 2002, until September 30, 2005; revise the procedures for reimbursement of costs to mentor firms for assistance provided to protege firms; require both mentor and protege firms to submit progress reports; and require the Defense Contract Management Command (DCMC) to conduct annual performance reviews of mentor-protege agreements.
Among the notable changes are:
- DFARS 219.7102, General, and DFARS 219.7103-2, Contracting Officer Responsibilities, are revised to authorize contracting officers to negotiate and award a separate contract for reimbursement of developmental assistance cost if the Director, Small and Disadvantaged Business Utilization (SADBU) determines that unusual circumstances justify reimbursement using a separate contract. In addition, DFARS 219.7103-2 limits the reimbursement of assistance costs to a protege firm to $1,000,000 per fiscal year unless the Director, SADBU determines that unusual circumstances justify the reimbursement.
- DFARS 219.7106, Performance Reviews, is added to state that DCMC will conduct annual performance reviews of all mentor-protege agreements.
- DFARS I-103, Program Duration, is revised to extend the deadline entering into mentor-protege agreements to September 30, 2002, and to extend the deadline for incurring costs under the program to September 30, 2005. Also, for mentor-protege agreements executed on or after October 1, 1999, it deletes the provision that allows mentors to include developmental costs in indirect expense pools.
- Paragraph (b)(4) of DFARS I-107, Mentor-Protege Agreements, revises the program participation term for the protege firm from nine years to three years. "Requests for an extension of the agreement for a period not to exceed an additional 2 years are subject to the approval of the Director, SADBU, OUSD(AT&L), and are contingent upon the endorsement and submission of justification for such an extension from the cognizant Director, SADBU. The justification must detail the unusual circumstances that warrant a term in excess of 3 years..."
- Paragraph (a) of DFARS I-108, Reimbursement Procedures, states that "for agreements entered into on or after October 1, 1999, DOD will provide reimbursement only through a separately priced contract line item in a DOD contract; or through a separate contract if the Director, SADBU, OUSD(AT&L), determines the unusual circumstances justify reimbursement using a separate contract. No other means for the reimbursement of the costs of developmental assistance provided...are authorized under the Program." Also, paragraph (f) states that "the total amount reimbursed to a mentor firm for costs of assistance furnished to a protege firm in a fiscal year may not exceed $1,000,000 unless the Director, SADBU, OUSD(AT&L), determines in writing that unusual circumstances justify reimbursement at a higher amount. Request for authority to reimburse in excess of $1,000,000 must detail the unusual circumstances and must be endorsed and submitted by the program manager and the cognizant Director, SADBU."
- DFARS I-111, Reporting Requirements, requires mentors to report on their mentor-protege programs within 30 days after the periods ending March 31 and September 30. The September 30 report must address the entire fiscal year. It states that "a recommended format and guidance for this submission are available via the Internet at http://www.acq.osd.mil/sadbu/mentor_protege".
- DFARS I-112, Agreement Reviews, is added. It states that the DCMC will conduct annual reviews of mentor-protege programs to determine whether all costs incurred by the mentor firm are reasonable, whether the mentor and protege firms accurately reported progress by the protege firm, and the amount of reimbursement the mentor firm is eligible to receive.
FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.
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