All small businesses-women-owned small businesses (WOSB), service-disabled, veteran-owned small businesses (SDVOSB), HUBZone firms, and even “regular” small businesses not part of a designated SBA program-will now be eligible for the many benefits of this critical business development tool.Īs discussed previously after SBA issued its proposed rule, the purpose of the mentor-protégé program is to encourage approved mentors to provide various forms of business development assistance to protégé firms. On July 25, 2016, the Small Business Administration (SBA) issued a final rule expanding the 8(a) mentor-protégé program to include all businesses designated small, not just 8(a) program participants. Further, once SBA begins approving new mentor-protégé applications, contractors can expect that virtually every significant small business set-aside competition will involve one or more mentor-protégé joint ventures. WHAT DOES IT MEAN FOR INDUSTRY: Large business will now have a much wider selection of businesses to mentor (SBA anticipates having over 2,000 protégés), and small businesses outside the 8(a) program will have access to the mentor-protégé program’s many benefits.

WHEN: The final rule was issued on July 25, 2016.

The final rule is largely consistent with the proposed rule, but one underlying theme of many changes was a relaxing of participation and reporting requirements, to both encourage more participation and ease concerns over administrative burdens on participants and the SBA. Achieving a potential increase in small business program goal accomplishments.WHAT: The SBA issued a long-awaited final rule establishing a Government-wide mentor-protégé program for all small businesses.Strengthening subcontracting opportunities.Mitigating the effects of necessary and justified contract bundling.Acquiring an expanded base of qualified small businesses.Other benefits, which help support the Homeland Security mission, include: Further, protégé firms gain opportunities to seek and perform government and commercial contracts through the guidance and support of mentor firms that may not have been available to them without the mentor-protégé program. Additionally, mentor-protégé arrangements may provide the Department of Homeland Security with greater assurance that a protégé subcontractor will be able to perform under a contract than a similarly situated non-protégé subcontractor. The Department of Homeland Security – Benefits of moving from the traditional large business prime contractor/small business subcontractor model to a mentor-protégé relationship model based on mutual agreement, trust, and meaningful business development. The assistance could result in significant small business development. Protégé – In addition to the benefits available to mentors, protégés may receive technical, managerial, financial, or any other mutually agreed upon benefit from mentors including work that flows from a government or commercial contract through subcontracting or teaming arrangements.

Additionally, a post-award incentive for subcontracting plan credit is available by recognizing costs incurred by a mentor firm in providing assistance to a protégé firm and using this credit for purposes of determining whether the mentor firm attains a subcontracting plan participation goal applicable to the mentor firm under a Homeland Security contract. Mentor – For acquisitions that contain the requirement for a subcontracting plan, mentors are eligible to receive credit in the source selection/evaluation criteria process for mentor‑protégé participation.

Sba mentor protege program for sdvosb