On Friday, July 12, 2019, the U.S. House of Representatives passed its version of the 2020 National Defense Authorization Act.
While this passage may lead to an uncharacteristic political fight over appropriations, contractors will be watching whether the U.S. Senate and House bills ultimately agree upon the less politically-charged sections likely to impact their businesses.
On June 11, the House Armed Services Committee published its draft of the 2020 National Defense Authorization Act (NDAA), which was updated June 19. Among other proposed sections impacting small business contractors which will be discussed in future blog posts, the draft reduces the monetary threshold for comprehensive Department of Defense debriefings and renews the DoD’s Mentor-Protégé Program.
The DoD has issued a final rule making major changes in the DoD “Pilot” Mentor-Protege Program. The rule took effect on March 23, 2018.
Among the major changes, DoD has both expanded and contracted the universe of potential proteges–and has included a mandatory certification that seems to completely misunderstand the SBA’s joint venture rules and processes.
Here is my take on the good, the bad, and the ugly from the final rule.
The GAO estimates that 27 percent of DoD mentor-protege agreements are deficient.
In a comprehensive new report, the GAO says that many active DoD mentor-protege agreements are missing basic (and necessary) information, like the protege’s primary NAICS code. Also missing, in some cases: the parties’ signatures.
The 2017 National Defense Authorization Act gives certain small subcontractors a new tool to request past performance ratings from the government.
If the pilot program works as intended, it may ultimately improve those subcontractors’ competitiveness for prime contract bids, for which a documented history of past performance is often critical.
The Department of Defense is proposing a major overhaul of the regulations governing its “pilot” mentor-protege program for small businesses.
The proposed rule, which was published in the Federal Register on September 23, 2016, makes a number of important changes, including adding new eligibility criteria, placing limits on the amount of time a protege can participate in the program, adding new required elements to mentor-protege agreements, and much more.
With the finalization of the new SBA Small Business Mentor Protégé Program, other agencies without statutorily-authorized mentor-protege programs must seek SBA approval of their mentor-protege programs within one year, if they wish those programs to continue.
In a final rule scheduled to be effective August 24, 2016, the SBA questioned the need for other agencies (except the Department of Defense) to continue to operate their own mentor-protege programs, but provided a road map for agencies to preserve their separate mentor-protege programs if they wish.