[Federal Register Volume 59, Number 161 (Monday, August 22, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-20539] [[Page Unknown]] [Federal Register: August 22, 1994] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Office of Economic Impact and Diversity Guidelines for Department of Energy Mentor Protege Initiative AGENCY: U.S. Department of Energy (DOE). ACTION: Notice of availability of guidelines and request for comment. ----------------------------------------------------------------------- SUMMARY: The Department of Energy is publishing and requests comments on its draft guidelines for its Mentor-Protege Pilot Initiative. The Mentor-Protege Pilot Initiative is designed to encourage Department of Energy management and operating contractors to assist energy related small disadvantaged and women-owned businesses in enhancing their business and technical capabilities to ensure full participation in the mission of the Department. DATES: Written comments on the draft guidelines and supporting materials are due on or before September 21, 1994. ADDRESSES: Written comments (3 copies) should be submitted to: U.S. Department of Energy, Office of Small and Disadvantaged Business Utilization, 1707 H Street, Room 915, Washington, DC 20585. FOR FURTHER INFORMATION CONTACT: Ms. Brenda DeGraffenreid at (202) 254- 5592. SUPPLEMENTARY INFORMATION: A. Purpose and Program Overview The Department Energy Mentor-Protege Pilot Initiative is designed to encourage Department of Energy management and operating contractors to assist energy related small disadvantaged businesses in enhancing their business and technical capabilities to ensure full participation in the mission of the Department. The use of this integrated working arrangement between companies will promote economic and technological growth, foster the establishment of long term business relationships and increase the number of small disadvantaged businesses that receive Department of Energy, other Federal and commercial contracts. B. General Policy (a) Department of Energy management and operating contractors who are approved as mentor firms may enter into agreements with eligible small disadvantaged businesses as protege firms to provide appropriate developmental assistance to enhance the business and technical capabilities of small disadvantaged businesses to perform as contractors, subcontractors and suppliers. (b) The mentor-protege initiatives described in these regulations constitutes a pilot program that will have a duration of two years with a one year option commencing from the date of the published final rule. During this period, management and operating contractors, which have received approval by the Department of Energy to participate in the program may enter into agreements with protege firms. C. Incentives for Mentor Participation (a) Active participation in the Department of Energy Mentor Protege Initiative may be a source selection factor in the awarding of Department of Energy contracts. (b) The award fee evaluation plans contained in all Department of Energy Performance-Based Management contracts may include a factor for evaluation of a contractor's performance associated with Mentor-Protege initiative participation. (c) Mentor firms shall receive credit toward Department of Energy subcontracting goals contained in their subcontracting plan. D. Mentor Firms Department of Energy mentor candidates must be: (1) Management and operating contractors (M&Os) of Department of Energy facilities. E. Protege Firms Department of Energy Protege candidates must be: (1) A small disadvantaged or women-owned small business concern as defined by Federal Acquisition Regulation; (2) Certified as small in the Standard Industrial Classification code for the services or supplies to be provided by the protege to the mentor; (3) Eligible for receipt of government contracts, and; (4) In operation and actively engaged in an energy related, technical or construction business field for two years prior to applying for participation in the Mentor-Protege Initiative. F. Selection of Protege Firms (a) Protege selection will be implemented through a tier development plan as provided in subsection (b) below. This tier development plan is intended as a guide from which an ``individualized'' plan can be developed for each protege. The tier development structure recognizes the protege firms current business capacity and sets the parameters of assistance for monitoring purposes. (b) Mentor firms are encouraged to select proteges from each of the following areas: (1) Small disadvantaged businesses that presently have contracts or subcontracts with the Department; (2) Small disadvantaged businesses that are presently 8(a) or 8(a) graduates under the Small Business Administration Program that have been actively engaged in business for at least five years; and (3) Emerging small disadvantaged business firms that possess energy related or technical capability and have been actively engaged in business for at least two years. (c) Once a protege firm has been selected for participation in the program, a Mentor-Protege Plan signed by the respective firms should be submitted to the Office of Small Disadvantaged Business Utilization for approval. At the minimum, the Plan should contain a description of the developmental assistance that is mutually agreed upon and in the best developmental interest of the protege firm. Such assistance may not include payment of any monies. The Mentor-Protege Plan shall also include information on the mentor's ability to provide developmental assistance, schedule for providing such assistance, and criteria for evaluating the protege's developmental success. The Plan shall include termination provisions complying with Notice and due process rights of both parties and a statement agreeing to submit periodic report reviews and cooperate in any studies or surveys as may be required by the Department in order to determine the extent of compliance with the terms of the agreement. G. Measurement of Program Success The overall success of the pilot program will be measured by the extent to which it results in: (a) An increase in the protege firm's technical and business capability, industrial competitiveness, client base expansion and improved financial stability. (b) An increase in the number of value of contracts, subcontracts and suppliers by small disadvantaged business protege firms in industry categories where small disadvantaged businesses have not traditionally participated within the mentor firm's activity. (c) The overall enhancement and development of protege firms as a competitive contractor, subcontractor, or supplier to the Department of Energy, other Federal agencies or commercial markets. (d) Proteges after successfully completing one year under the Mentor-Protege Initiative program may seek multiple mentors provided conflict of interest provisions would not prevent such an arrangement and the approval of the Office of Small and Disadvantaged Business Utilization is received. H. Office of Small and Disadvantaged Business Utilization (a) All information submitted shall be reviewed and approved by the Department of Energy's Office of Small and Disadvantaged Business Utilization. The Office of Small and Disadvantaged Business Utilization will provide a copy of the submitted information to the cognizant Department of Energy program manager and contracting officer for a parallel review and concurrence. (b) Upon agreement approval, the mentor may implement the developmental assistance under the program. I. Internal Controls by the Department (a) The Department of Energy's Office of Small and Disadvantaged Business Utilization will manage the program and establish internal controls to achieve the stated program objectives. Controls will include: (1) Reviewing and evaluating mentor-protege applications for realism, validity and accuracy of provided information; and (2) Reviewing semi-annual progress reports submitted by mentors and proteges on protege development to measure protege progress against the master plan contained in the approved agreement. (3) Assurance from the mentor and protege firms that they will submit periodic reports and cooperate in any studies or surveys as may be required by the Department in order to determine the extent of compliance with the terms of their agreement. (b) Failure of the mentor to meet the terms of the Mentor-Protege Plan may have an adverse affect on future award fee evaluation plans. (c) Failure of the protege to meet the terms of the Mentor-Protege Plan may result in exclusion from future participation in the Mentor- Protege Program. J. Program Review At the conclusion of each year in the Mentor-Protege Initiative the mentor prime contractor and protege will formally brief the Department of Energy Office of Small and Disadvantaged Business Utilization, the head of the contracting activity, and the contracting officer during a formal program review regarding program accomplishments as it pertains to the approved agreement. The Briefing may be held at either the Department of Energy Headquarters or the Mentor or Protege's site. Issued in Washington, DC on August 10, 1994. Corlis S. Moody, Director, Office of Economic Impact and Diversity. [FR Doc. 94-20539 Filed 8-19-94; 8:45 am] BILLING CODE 6450-01-P