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TITLE XVI--INDUSTRIAL BASE MATTERS
Subtitle C--Matters Relating to Small Business Concerns
P. L. 112-
House Conference Report 112-705
SEC. 1641. MENTOR-PROTEGE PROGRAMS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 45 as section 47; and
(2) by inserting after section 44 the following:
`SEC. 45. MENTOR-PROTEGE PROGRAMS.
`(a) Administration Program-
`(1) AUTHORITY- The Administrator is authorized to establish a mentor-protege program for all small business concerns.
`(2) MODEL FOR PROGRAM- The mentor-protege program established under paragraph (1) shall be identical to the mentor-protege program of the Administration for small business concerns that participate in the program under section 8(a) (as in effect on the date of enactment of this section), except that the Administrator may modify the program to the extent necessary given the types of small business concerns included as proteges.
`(b) Programs of Other Agencies-
`(1) APPROVAL REQUIRED- Except as provided in paragraph (4), a Federal 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 disapprove a plan submitted under paragraph (1) based on whether the program proposed--
`(A) will assist proteges to compete for Federal prime contracts and subcontracts; and
`(B) complies with the regulations issued under paragraph (3).
`(3) REGULATIONS- Not later than 270 days after the date of enactment of this section, the Administrator shall issue, subject to notice and comment, regulations with respect to mentor-protege programs, which shall ensure that such programs improve the ability of proteges to compete for Federal prime contracts and subcontracts and which shall address, at a minimum, the following:
`(A) Eligibility criteria for program participants, including any restrictions on the number of mentor-protege relationships permitted for each participant.
`(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 relationships.
`(E) The effect of mentor-protege relationships on contracting.
`(F) Benefits that may accrue to a mentor as a result of program participation.
`(G) Reporting requirements during program participation.
`(H) Postparticipation reporting requirements.
`(I) The need for a mentor-protege pair, if accepted to participate as a pair in a mentor-protege program of any Federal department or agency, to be accepted to participate 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.
`(4) LIMITATION ON APPLICABILITY- Paragraph (1) does not apply to the following:
`(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 regulations under paragraph (3), any Federal department or agency operating a mentor-protege program in effect on the date of enactment of this section.
`(1) IN GENERAL- Not later than 2 years after the date of enactment of this section, and annually thereafter, the Administrator shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship 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;
`(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 provided to proteges under each such program;
`(D) describes the benefits provided to mentors 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 program 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 business 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 imposed 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 subcontracts.
`(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 imposed by the Administrator.
`(e) Current Mentor Protege Agreements- Mentors and proteges with approved agreement in a program operating pursuant to subsection (b)(4)(C) shall be permitted to continue their relationship according to the terms specified 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 Administrator within 6 months of the promulgation of rules required by subsection (b)(3). The Administrator shall provide initial comments on each plan within 60 days of receipt, and final approval or denial of each plan within 180 days after receipt.'.
Mentor-Protege programs (sec. 1641)
The House bill contained a provision (sec. 1641) that would provide a statutory and regulatory framework for mentor-protege programs at federal agencies other than the Department of Defense (DOD). The provision would not apply to DOD programs, for which such a framework is already in place.
The Senate amendment contained no similar provision.
The Senate recedes.
House Report 112-479
SECTION 1641--MENTOR-PROTEGE PROGRAMS
This section would amend the Small Business Act (15 U.S.C. 644) by authorizing the Administrator of the Small Business Administration to establish a mentor-protege program for small business concerns. This section would also require the Administrator to issue, subject to notice and comment, regulations with respect to mentor-proteges programs at agencies other than the Department of Defense. The section would not apply to the Department of Defense mentor-proteges program or any mentoring assistance provided under a Small Business Innovation Research program or a Small Business Technology Transfer program.
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