[Federal Register: December 20, 2004 (Volume 69, Number 243)]
[Rules and Regulations]               
[Page 76355-76356]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Part 19

[FAC 2001-26; FAR Case 2003-010; Item V]
RIN 9000-AJ90

Federal Acquisition Regulation; Mentor Prot[eacute]g[eacute] 
Program--Delegation of Approval Authority for Mentor 
Prot[eacute]g[eacute] Agreements

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.


SUMMARY: TheCivilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to change the 
approval authority of Mentor Prot[eacute]g[eacute] Agreements to the 
DoD Military Departments or Defense Agencies.

DATES: Effective Date: January 19, 2005.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755 
for information pertaining to status or publication schedules. For 
clarification of content, contact Ms. Rhonda Cundiff, Procurement 
Analyst, at (202) 501-0044. Please cite FAC 2001-26, FAR case 2003-010.


A. Background

    This final rule amends FAR 19.702, Statutory Requirements, to 
change the approval authority of Mentor Prot[eacute]g[eacute] 
Agreements to the DoD Military Departments or Defense Agencies. This 
change is being made in order for DOD to streamline and transform 
itself to more effectively achieve its mission. The Pilot Mentor-
Prot[eacute]g[eacute] Program was established under Section 831 of Pub. 
L. 101-510, the National Defense Authorization Act for Fiscal Year 1991 
(10 U. S. C. 2302 note). The purpose of the Program is to provide 
incentives to major Department of Defense (DoD) contractors to assist 
prot[eacute]g[eacute] firms in

[[Page 76356]]

enhancing their capabilities to satisfy DoD and other contract and 
subcontract requirements. Under the Mentor-Prot[eacute]g[eacute] 
Program, eligible companies approved as mentor firms will enter into 
mentor-prot[eacute]g[eacute] agreements with eligible 
prot[eacute]g[eacute] firms to provide appropriate developmental 
assistance to enhance the capabilities of the prot[eacute]g[eacute] 
firms to perform as subcontractors and suppliers. DoD may provide the 
mentor firm with either cost reimbursement or credit against applicable 
subcontracting goals established under contracts with DoD or other 
Federal agencies.
    The Department of Defense, in an effort to streamline and transform 
itself in order to more effectively achieve its mission and in 
recognition that the Military Departments have the necessary expertise 
to manage programs efficiently, is transferring the management of the 
Mentor Prot[eacute]g[eacute] program to the Military Departments and 
Defense Agencies. The Office of the Secretary of Defense will maintain 
oversight and policy development responsibilities.
    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 69 FR 18244, April 6, 2004, with request for comments. One 
respondent submitted a comment that was outside the scope of the rule 
and no action was taken. The Councils agreed to convert the proposed 
rule to a final rule.
    Accordingly, the FAR is amended to state that the Director, Small 
and Disadvantaged Business Utilization of the cognizant DoD Military 
Department or Defense Agency, will be the approval authority for 
mentor-prot[eacute]g[eacute] agreements.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not 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 the rule removes a 
restriction, thus allowing DoD to make a minor policy change.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Part 19

    Government procurement.

    Dated: December 9, 2004.
Laura Auletta,
Director, Contract Policy Division.

Therefore, DoD, GSA, and NASA amend 48 CFR part 19 as set forth below:
1. The authority citation for 48 CFR part 19 is revised to read as 


    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

2. Amend section 19.702 by revising paragraph (d) to read as follows:

19.702   Statutory requirements.

* * * * *
    (d) As authorized by 15 U.S.C. 637(d)(11), certain costs incurred 
by a mentor firm in providing developmental assistance to a 
prot[eacute]g[eacute] firm under the Department of DefensePilot Mentor-
Prot[eacute]g[eacute] Program, may be credited as if they were 
subcontract awards to a prot[eacute]g[eacute] firm for the purpose of 
determining whether the mentor firm attains the applicable goals under 
any subcontracting plan entered into with any executive agency. 
However, the mentor-prot[eacute]g[eacute] agreement must have been 
approved by the Director, Small and Disadvantaged Business Utilization 
of the cognizant DoD military department or defense agency, before 
developmental assistance costs may be credited against subcontract 
goals. A list of approved agreements may be obtained at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acq.osd.mil/sadbu/mentor_protege/
 or by calling (703) 588-8631.

[FR Doc. 04-27637 Filed 12-17-04; 8:45 am]