[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)] [Rules and Regulations] [Pages 67419-67420] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-32006] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE 48 CFR Parts 19 and 52 [FAC 90-43; FAR Case 93-308; Item VI] RIN 9000-AG70 Federal Acquisition Regulation; Mentor Protege Program AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ----------------------------------------------------------------------- ACTION: Interim rule adopted as final with a change. SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule continuing an interim rule which amended the FAR. The interim rule published as Item X of FAC 90-37 is finalized with minor clarifying revisions. This final rule permits a mentor firm under the DOD Pilot Mentor-Protege Program to be granted credit toward subcontracting goals for certain costs incurred in providing developmental assistance to its Proteg3 firms and to award subcontracts on a noncompetitive basis to its Protege firms. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993, and is not a major rule under 5 U.S.C. 804. EFFECTIVE DATE: February 18, 1997. FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501- 4755. Please cite FAC 90-43, FAR case 93-308. SUPPLEMENTARY INFORMATION: A. Background This rule implements Section 814(c) of Public Law 102-190, which amended [[Page 67420]] the Small Business Act at 15 U.S.C. 637(d)(11) to authorize certain costs incurred by mentor firms under the DOD Pilot Mentor-Protege Program to be credited toward subcontracting goals for awards to small disadvantaged businesses. This rule also further implements Section 831(f)(2) of Public Law 101-510, which permits mentor firms to award subcontracts on a noncompetitive basis to its Proteges under DOD or other contracts. An interim rule was published in the Federal Register on January 26, 1996 (61 FR 2637). One comment was received in response to the interim rule. As a result, in the second sentence of 19.702(d), the word ``firms'' was revised to read ``Protege agreement'', and the address and telephone number were corrected. The clause at 52.244-5 is adopted as final without change. 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 only applies to participants in the DOD Pilot Mentor-Protege Program. Presently, approximately 100 mentor firms and 240 protege firms are enrolled in the program. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. List of Subjects in 48 CFR Parts 19 and 52 Government procurement. Dated: December 11, 1996. Edward C. Loeb, Director, Federal Acquisition Policy Division. Accordingly, the interim rule amending 48 CFR Parts 19 and 52 and published at 61 FR 2637, January 26, 1996, is adopted as a final rule with the following changes: 1. The authority citation for 48 CFR Parts 19 and 52 continues to read as follows: Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). PART 19-SMALL BUSINESS PROGRAMS 2. Section 19.702 is amended by revising the last sentence of paragraph (d) to read as follows: Sec. 19.702 Statutory requirement. * * * * * (d) * * * However, the mentor-Protege agreement must have been approved by the Office of Small and Disadvantaged Business Utilization, Office of the Deputy Under Secretary of Defense (International and Commercial Programs) DUSD(I&CP)SADBU, Room 2A338, 3061 Defense Pentagon, Washington, DC 20301-3061, (703) 697-9383, before developmental assistance costs may be credited against subcontract goals. PART 52-SOLICITATION PROVISIONS AND CONTRACT CLAUSES Sec. 52.244-5 [Amended] 3. The clause date for 52.244-5 is revised to read ``(DEC 1996)''. [FR Doc. 96-32006 Filed 12-19-96; 8:45 am] BILLING CODE 6820-EP-P