1. Basic history and facts behind the Mentor-Protégé Program
Established by Public Law 101-510 in the Fiscal Year 1991 through the Department of Defense (DoD) Authorization Act. It currently enjoys strong bipartisan support. This program authorizes DoD to approve Mentor-Protégé agreements, this was later delegated to the Services beginning in Fiscal Year 2004. The program gained extended approval of new agreements to September 30, 2010 by the National Defense Authorization Act during 2005, and to September 30, 2013 for incurred costs.
2. There are a number of steps that must be taken in order to apply
There are three rounds of proposals accepted during the Fiscal Year. December 15, April 15, and August 15. These agreements are for 1 – 3 years, and agreements are typically for $500,000 except for manufacturing contracts which may be funded higher with proper justification.
3. You must be eligible to become a protégé
In order to be classified as a protégé, there are a number of requirements that your business must meet. You must be certified by the Small Business Association to be either: a small disadvantaged business, an entity that employs the severely disabled, a Woman-Owned Small Business, a SBA 8(a) Certified Small Business, an Indian-Owned Small Business, a Native Hawaiian Organization-Owned Small Business, a HUBZone Small Business, or a Service-Disabled Veteran-Owned Small Business. These are set-aside codes for a contract, and your business must apply to the appropriate one that has been set-aside for small business. You also must be currently eligible for award of Federal contracts.
4. Your mentor must be eligible
In order to qualify as a mentor, the business must have at least one active approved subcontracting plan negotiated with DoD or another Federal Agency. They must also be eligible for award of Federal contracts. In order to be a mentor for an Army program, they must utilize the 8(a) Graduate Mentor-Protégé Pilot Program.
5. The three types of Mentor-Protégé Agreements
· Credit
o This allows mentor to receive credit against their subcontracting goals for costs incurred due to development assistance provided to the protégé.
· Direct Reimbursement
o This allows mentor to receive reimbursement of money of costs that were incurred due developmental assistance that was provided to the protégé.
· Hybrid
o Allows for the mentor to receive monetary reimbursement for one or two one-year options, while self-funding base year activities.
6. Both sides benefit from this program
· Mentor benefits
o Build a long-term relationship with a business partner.
o Become a qualified source at competitive prices.
o They have the ability to award subcontracts directly following completion.
o Receive assistance in achieving subcontracting goals.
o Can utilize protégé as a source of qualified employees from HCBU/MI
· Protégé benefits
o Gain technology transfer capabilities.
o Learn technical management skills.
o Build a long-term relationship with a mentor.
o Grow in competitiveness.
o Learn about new subcontracting opportunities.
o Can become a source of qualified employees form HBCU/MI
7. There is a unique evaluation process
Evaluation Criteria | Desired Outcome |
Subcontracting opportunities | Increased growth in revenue, employees, and customers |
Technical approach | Enhance small, disabled business capabilities |
HBCU/MI involvement | Involve schools, faculty, and students |
Relevance to Army and DoD programs | Shape and expand industrial base to support Army’s mission |
Corporate commitment | Facilitate the formation of long-term alliances |
Management plan | Metrics and methodologies to ensure success |
8. There is an approval process
First, the proposals go through a selection board that evaluates and ranks proposals. Whichever is recommended highest is rated for approval. It is then approved by the Army Director of the Small and Disadvantaged Business Utilization Office. Funding is then provided, and the contract is modified to incorporate the Mentor-Protégé agreement. Throughout the life of the contract, progress is monitored.
9. There are a variety of mentoring assistance programs provided under Army agreements
· Technology transfer
o This covers a wide-range of services in the field of technology, including manufacturing, engineering, air monitoring, waste minimization, chemical demilitarization, wireless communication, force protection, system integration, voice translation, and a number of wartime solutions such as military war-gaming and homeland security
· Business development
o While not as expansive as technology transfer, the Army provides mentoring assistance for a number of business development services, such as proposal writing, Deltek cost point accounting systems, human resources development, marketing analysis, and contract management.
10. There are a few impediments to success that must be avoided
Although the program itself can be very beneficial to all parties involved, there are a number of impediments to success that can arise throughout the life of the contract. These include not realizing subcontracting expectations, poor communication between the protégé and the mentor, remote geographical location difficulties, conflicting goals, lack of program integration and weak commitment, and an inordinate expense to the protégé. There are also unreimbursed costs for both the mentor and the protégé that should be noted, and avoided if possible.
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