It sounds more like a scene from “All the President’s Men” than the factual background of a GAO bid protest. In McTech Corporation, B-406100, B-406100.2 (Feb. 8, 2012), an anonymous caller tipped off a procuring agency that McTech had an apparent organizational conflict of interest, leading to McTech’s exclusion from the competition. The resulting GAO bid protest didn’t bring down a presidential administration, but it does provide a cautionary tale on the intersection of SBA mentor-protégé agreements and OCIs.
Tag Archives: Mentor-Protege Programs
8(a) Mentor-Protege Joint Ventures and Subcontracts: An Underused Practice?
The revised 8(a) program regulations adopted in March 2011 contained so many significant changes that some of them seem to have gotten lost in the shuffle. One of these unheralded changes allows a joint venture comprised of an 8(a) mentor firm and its SBA-approved protégé to joint venture as a small business for federal subcontracts. It’s a major change because under the old rule, SBA 8(a) mentor-protege joint ventures could only joint venture as “small” for prime contracts.
So, why aren’t more 8(a) firms taking advantage of this new mentor-protege joint venturing capability?
8(a) Mentor-Protégé Agreements and Graduation: The Beat Goes On?
After a participant in the SBA’s 8(a) Program graduates, can its mentor-protégé agreement be reapproved for another full year? Surprisingly, the answer may be “yes.” At least, this is what happened in the Armed Services Board of Contract Appeals’ decision in HMRTECH2 LLC, ASBCA No. 56829 (2009). However, subsequent rule changes indicate that the benefits of any such post-graduation re-approval will be limited to contracts obtained prior to graduation.