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PART 1819

SMALL BUSINESS AND SMALL DISADVANTAGED

BUSINESS CONCERNS

TABLE OF CONTENTS

1819.001 Definitions.

SUBPART 1819.2 POLICIES

1819.201 General policy.

1819.202 Specific policies.

1819.202-4 Solicitation.

SUBPART 1819.3 DETERMINATION OF STATUS AS A SMALL

BUSINESS CONCERN

1819.302 Protesting a small business representation.

SUBPART 1819.4 COOPERATION WITH THE SMALL BUSINESS

ADMINISTRATION

1819.401 General.

SUBPART 1819.5 SET-ASIDES FOR SMALL BUSINESS

1819.501 General.

1819.502 Setting aside acquisitions.

1819.502-3 Partial set-asides.

1819.503 Setting aside a class of acquisitions.

1819.505 Rejecting Small Business Administration recommendations.

1819.505-70 Notification of SBA appeals.

SUBPART 1819.6 CERTIFICATES OF COMPETENCY AND

DETERMINATIONS OF ELIGIBILITY

1819.601 General.

1819.602 Procedures.

1819.602-1 Referral.

1819.602-3 Resolving differences between the agency and the Small

Business Administration.

1819.602-70 Reports on certificates of competency.

SUBPART 1819.7 SUBCONTRACTING WITH SMALL BUSINESS,

SMALL DISADVANTAGED BUSINESS AND WOMEN-OWNED SMALL BUSINESS CONCERNS

1819.705-4 Reviewing the subcontracting plan.

1819.707 The Small Business Administration's role in carrying out

the program.

1819.708 Solicitation provisions and contract clauses.

1819.708-70 NASA solicitation provision and contract clause.

SUBPART 1819.8 CONTRACTING WITH THE SMALL BUSINESS

ADMINISTRATION (THE 8(a) PROGRAM)

1819.804 Evaluation, offering, and acceptance.

SUBPART 1819.10 SMALL BUSINESS COMPETITIVENESS

DEMONSTRATION PROGRAM

1819.1005 Applicability.

SUBPART 1819.70 NASA SMALL DISADVANTAGED BUSINESS

CONTRACTING AND SUBCONTRACTING GOAL

1819.7001 Scope of subpart.

1819.7002 Definitions.

1819.7003 General policy.

1819.7004 Contract clause.

SUBPART 1819.71 NASA RURAL AREA SMALL BUSINESS PLAN

1819.7101 Definition.

1819.7102 General.

1819.7103 Solicitation provision and contract clause.

SUBPART 1819.72 THE NASA MENTOR-PROTEGE PROGRAM

1819.7201 Scope of subpart.

1819.7202 Definitions.

1819.7203 Non-affiliation.

1819.7204 Transportability of features from the Department of Defense (DOD) Mentor-Protege program to NASA contractors.

1819.7205 General policy.

1819.7206 Incentives for prime contractor participation.

1819.7207 Measurement of program success.

1819.7208 Mentor firms.

1819.7209 Protege firms.

1819.7210 Selection of protege firms.

1819.7211 Application process for mentor firms to participate in the program.

1819.7212 OSDBU review and approval process of agreement.

1819.7213 Agreement contents.

1819.7214 Developmental assistance.

1819.7215 Obligation.

1819.7216 Internal controls.

1819.7217 Reports.

1819.7218 Program review.

1819.7219 Solicitation provision and contract clauses.

PART 1819

SMALL BUSINESS AND SMALL DISADVANTAGED

BUSINESS CONCERNS

1819.001 Definitions.

"Small Business Specialist" means the person who --

(1) Is appointed by the Head of each NASA installation having procurement responsibilities; and

(2) Is the central point of contact for all small business and labor surplus area matters. See 1819.201(b) and (c) for a detailed description of this position. This person is synonymous with the Small and Disadvantaged Business Utilization Specialist (see FAR 19.201(d)).

Subpart 1819.2--Policies

1819.201 General policy.

(a) NASA Headquarters. The Associate Administrator for Small and Disadvantaged Business Utilization (Code K) is responsible for (1) the general supervision and coordi- nation of the NASA Small Business Program; (2) developing the policy and procedures for implementing the NASA Small Business Program, Minority Business Program, Women Owned Business Program, and Labor Surplus Area Program; (3) advising the Administrator and other NASA officials on these matters; and (4) representing NASA before other Government agencies and industry on matters related to the programs listed in (2) of this paragraph.

(b) Installations. The Head of each installation having procurement responsibilities shall designate a qualified individual in the contracting office as a Small Business Specialist to provide a central point of contact to which small business concerns may direct inquiries concerning small business matters and participation in the NASA procurement program. The Small Business Specialist shall also perform other functions specifically set forth in this section 1819.201 or that the Procurement Officer may prescribe for implementing the Small Business Program, including responsibility for the Labor Surplus Area Program described in FAR Part 20. When the Head of an installation considers that the volume of procurement or the functions relating to procurement at the installation do not warrant a full-time Small Business Specialist, these duties may be assigned to procurement personnel on a part-time basis.

(c) Small Business Specialists. Small Business Specialists appointed under paragraph (b) of this section shall perform the following duties, as the Procurement Officer determines appropriate to the installation:

(1) Maintain a program designed to locate capable small business sources for current and future procurements.

(2) Coordinate inquiries and requests for advice from small business concerns on procurement matters.

(3) Before issuance of solicitations or contract modifications for additional supplies or services, determine that small business concerns will receive adequate consideration, including initiation of set-asides (see FAR Subpart 19.5).

(4) If small business concerns cannot be given an opportunity to compete because adequate specifications or drawings are not available, initiate action (unless there are sufficient and valid reasons to the contrary), in writing, with appropriate technical and contracting personnel to ensure that necessary specifications or drawings for current or future procurements will be available.

(5) Review procurement programs for possible breakout of items suitable for procurement from small business concerns.

(6) Advise small business concerns regarding financial assistance available under laws and regulations, assist such concerns in applying for it, and ensure that small business concerns' requests for financial assistance are not treated as a handicap in securing the award of contracts.

(7) Participate in responsibility determinations (see FAR 9.103) whenever small business concerns are involved.

(8) Participate in the evaluation of prime contractors' small business subcontracting programs (see FAR 19.705- 4).

(9) Review and make appropriate recommendations to the contracting officer on any proposal to furnish Government-owned facilities to a contractor if such action may hurt the Small Business Program.

(10) Ensure that participation of small business concerns is accurately reported.

(11) Notify the Procurement Officer of possible contracting opportunities in labor surplus areas.

(12) Make available to SBA copies of solicitations when requested.

(13) Act as liaison between contracting officers and SBA field offices and representatives in connection with set-asides, certificates of competency, and any other matters in which the Small Business Program may be involved. Procurements in which certificates of competency are requested shall be reported in writing to the Director, Small and Disadvantaged Business Utilization, NASA Head- quarters, (Code K). The report should describe the requirement, list the offerors, and give the contract prices specified in the offers as submitted and the reason for the proposed rejection of an otherwise acceptable small business offer. Pertinent dates, such as the required date for the completion of the procurement and the date of the request for the certificate of competency, should also be furnished.

(14) In cooperation with contracting officers and technical personnel, seek and develop information on the technical competence of small business concerns for research and development contracts. Regularly bring to the attention of contracting officers and technical personnel descriptive data, brochures, and other information regarding small business concerns that are apparently competent to perform research and development work in fields in which NASA is interested.

(15) When a small business concern's offer has been rejected for nonresponsiveness or nonresponsibility, aid, counsel, and assist that concern, upon its request, in understanding requirements for responsiveness and responsibility so that the concern can qualify for future awards.

1819.202 Specific policies.

1819.202-4 Solicitation.

The contracting officer shall include in the solicitation mailing list the names of firms submitted by SBA, unless there is a valid reason for not so doing.

Subpart 1819.3--Determination of Status as a Small Business Concern

1819.302 Protesting a small business representation.

The contracting officer shall not make awards of small business set-aside procurements before (a) 5 working days after bid opening for sealed-bid acquisitions or (b) the deadline for submitting a protest that was included in the notification to apparently unsuccess- ful offerors. (See FAR 19.302(h)(1).)

Subpart 1819.4-- Cooperation with the Small Business Administration

1819.401 General.

Contracting officers shall consult and cooperate with SBA to carry out the purposes of the Small Business Act.

Subpart 1819.5--Set-Asides for Small Business

1819.501 General.

The Small Business Specialist (1) may make certain set-aside recommendations; (2) is responsible for reviewing those procurements not set aside; and (3) is responsible for taking action in accordance with FAR 19.506(b).

1819.502 Setting aside acquisitions.

1819.502-3 Partial set-asides.

(a)(1) Contracting officers shall require offers obtained from firms eligible for the set-aside portion of the requirement under the clause at FAR 52.219-7, Notice of Partial Small Business Set-Aside, to be in writing and to include agreement (i) on the price for the available set-aside quantity, (ii) on the delivery schedule, (iii) that all other terms and conditions of the solicitation apply to the set-aside award, and (iv) to include the clause at FAR 52.215-2, Audit and Records--Negotiation.

(2) When the non-set-aside portion has been awarded to a small business concern entitled to receive the set-aside portion, the set-aside portion may be added to the basic contract by supplemental agreement. The supplemental agreement shall (i) refer to the contractor's offer on the set-aside quantity, (ii) state the price and delivery schedule applicable to the set-aside quantity, and (iii) include the clauses at FAR 15.215-1 and 15.215-2. The contracting officer shall attach to the supplemental agreement copies of all pertinent documents, including the signed offer. The contracting officer shall also sign the supplemental agreement, but the contractor need not, since the contractor's signature on the attached offer is sufficient.

(3) When the non-set-aside portion has been awarded to a firm other than the concern entitled to receive the set-aside portion, the contracting officer shall award the set-aside portion using Standard Form 26. The offers obtained and the award form used shall reference and include the same data required by paragraphs (a)(1) and (2) of this section. Also, the award shall reference in Block 18 of SF 26 the applicable solicitation and the contractor's written offer. The contracting officer shall attach copies of the solicitation and offer and shall sign the SF 26, but the contractor need not, since the contractor's signature on the attached offer is sufficient.

(b) The contracting officer shall separately report awards of the non-set- aside portions of small business set- aside procurements (see Subpart 1804.6).

1819.503 Setting aside a class of acquisitions.

The contracting officer shall retain a copy of each class set-aside determination.

1819.505 Rejecting Small Business Administration recommendations.

(a) The Small Business Specialist may make a set-aside recommendation with respect to any individual or class set- aside except those on which an SBA representative has made a recommendation.

(b) If the Small Business Specialist recommends that an individual procurement or a class of procurements, or a portion thereof, be set aside, the contracting officer shall promptly either concur in or disapprove the recommendation, stating in writing the reasons for disapproval.

(c) If the contracting officer disapproves the Small Business Specialist's recommendation, the contracting officer shall promptly refer the case to the SBA representative (if one is assigned and available) for review. The Small Business Specialist shall take no further appeal action. If an SBA representative is not assigned or available, resolution of disagreements on set-asides between the Small Business Specialist and the contracting officer shall be accomplished in accordance with the procedures in paragraph (e) of this section.

(d) All cases involving the non-initiation of a set-aside, whether resulting from (i) a joint decision of the Small Business Specialist and the contracting officer or (ii) a determination by the contracting officer alone, require referral to the SBA representative (if one is assigned and available) for review. The SBA representative must either concur with the decision or determination or appeal the case under FAR 19.505.

(e) When an SBA representative is not assigned or available and the contracting officer disagrees with the Small Business Specialist's recommendation on a small business set-aside for an individual procurement or a class of procurements, or a portion thereof, and so notifies the Small Business Specialist in writing, or if the Small Business Specialist disagrees with the contracting officer regarding withdrawal or modification of a set-aside determination, the Small Business Specialist may appeal in writing to the procurement officer (see 1819.201(b)) for a decision, which shall be final. The contracting officer shall place a memorandum of the procurement officer's decision in the contract file. If the decision approves the contracting officer's action, the Small Business Specialist shall forward complete documentation of the case to the Associate Administrator for Small and Disadvantaged Business Utilization, NASA Headquarters, Code K.

(f) The contracting officer shall prepare, sign, and retain in the contract file a memorandum of any withdrawal or modification or of nonconcurrence in a recommended set-aside action.

1819.505-70 Notification of SBA appeals.

The SBA representative may appeal the contracting officer's decision as described in 1819.505(c) or (d) to the procurement officer, who may support the contracting officer's decision. Upon later review of the procurement officer's decision approving the contracting officer's determination described in 1819.505(e), SBA may disagree with the procurement officer's decision not to set aside a procurement for small business. If the SBA appeals the procurement officer's decision, Code H should be notified in writing as soon as SBA appeals this decision. This notification should include a history of the center and SBA discussions on the procurement as well as any actions the center has taken.

Subpart 1819.6-- Certificates of Competency and Determination of Eligibility

1819.601 General.

On proposed awards exceeding the small purchase limitation, the contracting officer shall request a preaward survey (see FAR 9.106) before determining that a responsive small business firm is not responsible.

1819.602 Procedures.

1819.602-1 Referral.

The contracting officer shall forward a copy of the communication referring the matter to SBA through the Procurement Officer to the Associate Administrator for Small and Disadvantaged Business Utilization, NASA Headquarters, (Code K).

1819.602-3 Resolving differences between the agency and the Small Business Administration.

(a) When there is a disagreement between the contracting officer and SBA, the contracting officer shall forward to the Associate Administrator for Procurement (Code H) through channels, on an expedited basis, a complete case file with a request that the case be considered for appeal to SBA Headquarters. The contracting officer shall include the data already furnished to SBA, SBA's rationale for proposing to issue a certificate of competency, and the contracting officer's comments. The contracting officer shall suspend procurement action until informed by the Associate Administrator for Procurement of the final decision in the case.

(b) If the Associate Administrator for Procurement concludes that the referral to SBA should be withdrawn and a contract awarded without benefit of a certificate of competency, the Associate Administrator for Procurement shall inform the contracting officer and provide written instructions on how to proceed with the procurement.

(c) If the Associate Administrator for Procurement agrees with the contracting officer's recommended appeal action, the contracting officer shall request SBA's Central Office to review the SBA Regional office's proposal to issue a certificate of competency.

1819.602-70 Reports on certificates of competency.

Small Business Specialists shall inform the Associate Administrator for Small and Disadvantaged Business Utilization, NASA Headquarters (Code K), quarterly in writing, of all certificate of competency cases initiated during the quarter and of the final disposition made on cases during the quarter, including the number and dollar value of certificates of competency issued during the period. The Small Business Specialist shall include the company name, item being procured, solicitation number, dollar value of the procurement, and date the case was submitted to SBA. In addition, the Small Business Specialist shall provide advice and data for all cases where (a) the small business concern elects not to file an application for a certificate of competency, (b) SBA declines to issue a certificate of competency, or (c) the contracting activity reverses the pre-award survey activity's negative finding on responsibility, withdraws the referral to SBA, and makes the award.

Subpart 1819.7-- Subcontracting with Small Business, Small Disadvantaged

Business and Women-Owned Small Business Concerns

1819.705-4 Reviewing the subcontracting plan.

(a) Subcontracting plans must reflect realistic and justifiable percentage and dollar goals for subcontracting with small business concerns and small disadvantaged business concerns. Prime contractors shall be encouraged to submit, when possible, positive goals (i.e., greater than zero) in their initial plans. In evaluating subcontracting plans, contracting officers shall challenge any unrealistically low and particularly any proposed zero goals to ascertain what opportunity exists for subcontracting with small and small disadvantaged firms. The evaluation may include a specific review of the factors used by the prime contractor to develop its goal, the past performance of the prime contractor on similar requirements, and the current procedures used by the prime to maximize the opportunities for small and small disadvantaged businesses to participate in its subcontracting program. The contract file shall be documented to reflect the review and the contracting officer's decision on the goal which is finally accepted.

(b) NASA contracting officers may accept as a element of a subcontracting plan the prime contractor's intention to use total small business, small disadvantaged business, women-owned business, historically black college and university, or minority educational institution set-asides in awarding subcontracts so long as such set-asides are competitive and awards are made at reasonable prices. Use of this procedure will be viewed as a good indication of an aggressive subcontracting plan. Set-asides may be encouraged but may not be required when negotiating subcontracting plans.

1819.707 The Small Business Administration's role in carrying out the program.

Under the provisions of FAR 19.707(a)(2) and (3), 5 days are allotted for SBA review of solicitations and contracts subject to the subcontracting program. In the absence of SBA request for the documents, the contracting officer may elect not to seek review.

1819.708 Solicitation provisions and contract clauses.

1819.708-70 NASA solicitation provision and contract clause.

(a) The contracting officer shall insert the provision at 1852.219-73, Small Business and Small Disadvantaged Business Subcontracting Plan, in solicitations containing the clause at FAR 52.219-9. Insert in the last sentence the number of calendar days after request that the offeror must submit a complete plan. When offerors are to include subcontracting plans in their initial offer as contemplated by FAR 19.705-2(d), or if a noncompetitive solicitation will be issued, the contracting officer may use the provision with its Alternate I.

(b) The contracting officer shall insert the clause at 1852.219-75, Small Business and Small Disadvantaged Business Subcontracting Reporting, in solicitations and contracts containing the clause at FAR 52.219-9. Those current contracts containing subcontracting plans and designated by NASA Headquarters (Code HC) shall be amended to require quarterly submission of the SF 295.

Subpart 1819.8--Contracting with the Small Business Administration

(The 8(a) Program)

1819.804 Evaluation, offering, and acceptance.

The Small Business Specialist shall review and evaluate all procurement requirements to determine their suitability for offering to SBA for 8(a) acceptance and make a recommendation to the contracting officer concerning award to SBA.

Subpart 1819.10--Small Business Competitiveness Demonstration Program

1819.1005 Applicability.

The targeted industry categories for NASA and their Standard Industrial Classification (SIC) codes are:

SIC Industry

Code Category

3571 Electronic Computers

3577 Computer Peripheral Equipment, not elsewhere classified

3663 Radio & TV Broadcasting and Communications Equipment

3764 Guided Missile and Space Vehicle Propulsion Units and Propulsion Unit Parts

3769 Guided Missile and Space Vehicle Parts and Auxiliary Equipment, not elsewhere classified

3812 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Instruments

3827 Optical Instruments and Lenses

7371 Computer Programming Services

7373 Computer Integrated Systems Design

7379 Computer Related Services, not elsewhere classified.

Subpart 1819.70-- NASA Small Disadvantaged Business Contracting

and Subcontracting Goal

1819.7001 Scope of subpart.

This subpart implements legislative provisions (Public Laws 101-507 and 101- 144)) which require the NASA Administrator to ensure, to the fullest extent possible, that at least 8 percent of Federal funding for prime and subcontracts awarded in support of authorized programs, including the space station by the time operational status is obtained, be made available to small business concerns or other organizations owned or controlled by socially and economically disadvantaged individuals (within the meaning of section 8(a)(5) and (6) of the Small Business Act (15 U.S.C. 637(a)(5) and (6)), including Historically Black Colleges and Universities and minority educational institutions. For purposes of this subpart, socially and economically disadvantaged individuals shall be deemed to include women.

1819.7002 Definitions.

"Historically Black Colleges and Universities," as used in this subpart, means institutions determined by the Secretary of Education to meet the requirements of 34 CFR section 608.2 and listed therein.

"Minority educational institutions," as used in this subpart, means institutions meeting the criteria established in 34 CFR 607.2 by the Secretary of Education.

"Small disadvantaged business concern," was used in this subpart, means a small business concern owned or controlled by individuals who are both socially and economically disadvantaged (within the meaning of section 8(a)(5) and (6) of the Small Business Act (15 U.S.C. 637(a)(5) and (6)). Socially and economically disadvantaged individuals shall be deemed to include women.

1819.7003 General policy.

The Congress has indicated its commitment to increasing the role of small disadvantaged concerns, including women-owned concerns, Historically Black Colleges and Universities, and minority educational institutions, in the aerospace industry, particularly in NASA-related procurement (Public Laws 101-507 and 101-144). The agency's goal is to award to such concerns and organizations 8 percent of the total value of prime and subcontracts in support of authorized programs by the end of fiscal year 1994. The participation of NASA prime contractors is essential to meet this goal.

1819.7004 Contract clause.

The contracting officer shall insert the clause at 1852.219-76, NASA Small Disadvantaged Business Goal, in all solicitations and contracts (other than those for small purchases).

Subpart 1819.71--NASA Rural Area Small Business Plan

1819.7101 Definition.

"Rural area" means a county with a population of fewer than twenty thousand individuals.

1819.7102 General.

Public Law 100-590 requires NASA to establish a Rural Area Business Enterprise Development Plan that includes methods for encouraging prime and subcontractors to use small business contractors located in rural areas as subcontractors. One method is to encourage the contractor to use its best efforts to comply with the intent of the statute.

1819.7103 Solicitation provision and contract clause.

The contracting officer shall insert the clause at 1852.219-74, Use of Rural Area Small Businesses, in solicitations and contracts that offer subcontracting possibilities or that are expected to exceed $500,000 ($1,000,000 for construction of public facility) unless the contract, together with all its subcontracts, is to be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

Subpart 1819.72--The NASA Mentor-Protege Program

1819.7201 Scope of subpart.

The NASA Mentor-Protege Program is designed to incentivize NASA prime contractors to assist Small Disadvantaged Business concerns, Historically Black Colleges and Universities, and Minority Institutions in enhancing their capabilities to perform NASA contracts and subcontracts, foster the establishment of long-term business relationships between these entities and NASA prime contractors, and increase the overall number of these entities that receive NASA contract and subcontract awards.

1819.7202 Definitions.

(a) Historically Black Colleges and Universities (HBCU), as used in this subpart, means institutions determined by the Secretary of Education to meet the requirements of 34 CFR 608.2 and listed therein. HBCUs include any nonprofit research institution that was an integral part of such a college or university before November 14, 1986.

(b) Minority Institutions (MI), as used in this subpart, means institutions verified by the Secretary of Education to meet the criteria set forth in 34 CFR 637.4. MIs include Hispanic-serving institutions as defined by 20 USC 1059c(b) (1).

(c) Small Disadvantaged Business concern (SDB), as used in this subpart, means small business concerns owned and controlled by socially and economically disadvantaged individuals (as those terms are used in section 8(a) of the Small Business Act (15 U.S.C. 637(a)(5) and (6)) and small business concerns owned and controlled by women (see section 8(d) of the Small Business Act (15 USC 637(d)) as amended by Public Law 103-355.

(d) High-Tech: As used in this subpart, means research and/or development efforts that are within or advances the state-of-the-art in a technology discipline and are performed primarily by professional engineers, scientists, and highly skilled and trained technicians or specialists.

1819.7203 Non-affiliation.

For purposes of the Small Business Act, a protege firm may not be considered an affiliate of a mentor firm solely on the basis that the protege firm is receiving developmental assistance referred to in 1819.7214 from such mentor firm under the program. Neither shall partial ownership, up to 10 percent of a Department of Defense (DOD) sanctioned Protege firm by its DOD mentor constitute affiliation by NASA.

1819.7204 Transportability of features from the Department of Defense (DOD) Mentor-Protege Program to NASA contractors.

(a) In accordance with the benefits authorized by the DOD Mentor-Protege program (Public Law 101-510, Section 831, as amended by Public Law 102-190, Section 814), a NASA contractor who is also an approved DOD Mentor can transfer credit features to their NASA contracts.

(b) NASA prime contractors, who are approved DOD mentors, can award subcontracts noncompetitively under their NASA contracts to the proteges which they are assisting under the DOD program (Public Law 101-510, Section 831(f)(2)).

(c) NASA prime contractors may count the costs of developmental assistance provided to proteges being assisted under the DOD program toward meeting the goals in their subcontracting plans under their NASA prime contracts (Public Law 102-190, Section 814). Limitations which may reduce the value of this benefit include:

(1) Credit toward attaining subcontracting goals is available only to the extent that the developmental assistance costs have not been reimbursed to the contractor by DOD as direct or indirect costs; or

(2) The credit is available to meet the goals of a NASA subcontracting plan only to the extent that it has not been applied to a DOD subcontracting plan. The same unreimbursed developmental assistance costs cannot be counted toward meeting the subcontracting goals of more than one prime contract. These costs would accrue from credit for the multiples attributed to assistance provided by Small Business Development Centers, Historically Black Colleges and Universities and Minority Educational Institutions.

(d) The features identified in paragraphs (a), (b) and (c) of this section point out the portability of features from the DOD Mentor-Protege Program to NASA prime contractors. NASA mentors will be held to show "good faith" by providing actual developmental assistance beyond transferring credit from activity in the DOD program to NASA subcontracting plans.

1819.7205 General policy.

(a) Eligible large business prime contractors, not included on the "Parties Excluded from Procurement Program" list, who have at least one active subcontracting plan, and who are approved as mentor firms will enter into agreements with eligible entities as defined in 1819.7202 as Proteges to provide appropriate developmental assistance to enhance the capabilities of Proteges to perform as subcontractors and suppliers. Eligible small business prime contractors, not included on the "Parties Excluded from Procurement Programs" list, and that are capable of providing developmental assistance to SDB's, may be approved as mentors. An active mentor-protege arrangement requires the protege to be a subcontractor under the mentor's prime contract with NASA.

(b) The pilot program has a duration of three years commencing from March 24, 1995. During this period, eligible mentor firms, which have received approval by NASA to participate in the program pursuant to section 1819.7212, may enter into agreements with protege firms.

(c) For the pilot phase of the program, mentor-protege activity will be limited to cost-plus-award-fee contracts.

(d) Costs incurred by a mentor to provide developmental assistance, technical or managerial assistance described in section 1819.7214, are allowable.

1819.7206 Incentives for prime contractor participation.

(a) During source selection, Mentor-Protege will be evaluated under SDB Utilization which is a stand-alone evaluation subfactor under the Mission Suitability.

(b) Under cost-plus-award fee contracts, approved mentor firms shall be eligible to earn award fee associated with their performance as a mentor by performance evaluation period. The award fee plans of all NASA contracts are structured such that 15 percent of the available award fee is allocated for Small Disadvantaged Business Utilization. Mentor-Protege performance will be evaluated under Small Disadvantaged Business Utilization as a separate element and allocated a separate 5 percent of the 15 percent award fee. For purposes of earning award fee, the Mentor firm's performance shall be evaluated to determine the degree to which the participation went beyond (exceeded) the negotiated SDB goals commitment. Specifically, the Mentor firm's performance will be evaluated against the criteria described in the NASA FAR Supplement provision at 1852.219-79.

1819.7207 Measurement of program success.

The overall success of the NASA Mentor-Protege program encompassing all participating Mentors and proteges will be measured by the extent to which it results in:

(a) An increase in the number, dollar value and percentage of subcontracts awarded to proteges by mentor firms under NASA contracts since the date of entry into the program;

(b) An increase in the number and dollar value of contract and subcontract awards to protege firms since the time of their entry into the program (under NASA contracts, contracts awarded by other Federal agencies and under commercial contracts);

(c) An increase in the number and dollar value of subcontracts awarded to a protege firm by its mentor firm; and

(d) An increase in subcontracting with protege firms in industry categories where they have not traditionally participated within the mentor firm's activity.

1819.7208 Mentor firms.

(a) Eligibility:

(1) Contractors eligible for receipt of government contracts;

(2) Large prime contractors performing under contracts with at least one negotiated subcontracting plan as required by 48 CFR (FAR) 19.7; and

(3) Small Business prime contractors that can provide developmental assistance to enhance the capabilities of proteges to perform as subcontractors and suppliers. A small business prime contractor performing under a NASA contract that does not contain a negotiated subcontracting plan may apply.

(b) Mentors will be encouraged to identify and select:

(1) A broad base of firms including those defined as emerging firms (e.g., a protege whose size is no greater than 50 percent of the size standard applicable to the SIC code assigned to a contracting opportunity); and

(2) Proteges in addition to firms with whom they have established business relationships.

(3) High-Tech firms as proteges.

1819.7209 Protege firms.

(a) For selection as a protege, a firm must be:

(1) An SDB, HBCU or MI as those terms are defined in 1819.7202:

(2) Certified as small in the SIC code for the services or supplies to be provided by the protege under its subcontract to the mentor; and

(3) Eligible for receipt of government contracts.

(b) A protege firm may self-certify to a mentor firm that it meets the requirements set forth in paragraph (a) of this section. Mentor may rely in good faith on written representations by potential proteges that they meet the specified eligibility requirements.

(c) Proteges may have multiple mentors. Proteges participating in mentor-protege programs in addition to the NASA program should maintain a system for preparing separate reports of mentoring activity for each agency's program.

1819.7210 Selection of protege firms.

(a) Mentor firms will be solely responsible for selecting protege firms. The mentor is encouraged to identify and select the types of protege firms listed in 1819.7208(b).

(b) Mentor firms may have more than one protege.

(c) The selection of protege firms by mentor firms may not be protested, except as in paragraph (d) of this section.

(d) Any protest regarding the size or eligibility status of an entity selected by a mentor to be a protege shall be referred solely to the Associate Administrator, Office of Small and Disadvantaged Business Utilization (OSDBU), NASA for resolution. In its discretion, NASA may seek an advisory opinion from the Small Business Administration.

1819.7211 Application process for mentor firms to participate in the program.

(a) Prime contractors interested in becoming a mentor firm must submit a request to the NASA OSDBU to be approved under the program. The application will be evaluated on the extent to which the company plans to provide developmental assistance. The information required in paragraph (b) of this section must be submitted to be considered for approval as a mentor form.

(b) A proposed mentor must submit the following information to the NASA OSDBU:

(1) A statement that the mentor firm is currently performing under at least one active approved subcontracting plan (small business exempted) and that they are eligible, as of the date of application, for the award of Federal contracts;

(2) The cognizant NASA contract number(s), type of contract, period of performance (including options), title of technical program effort, name of NASA Program Manager (including contact information) and name of NASA field center where support is provided;

(3) The number of proposed Mentor-Protege arrangements;

(4) Data on all current NASA contracts and subcontracts to include the contract/subcontract number(s), period of performance, awarding NASA installation or contractor and contract/subcontract value(s) including options;

(5) Data on total number and dollar of subcontracts awarded under NASA prime contracts within the past 2 years and the number of dollar value of such subcontracts awarded to entities defined as proteges.

(6) Information on the proposed types of developmental assistance. For each proposed Mentor-Protege relationship include information on the company's ability to provide developmental assistance to the identified protege firm and how that assistance will potentially increase subcontracting opportunities for the protege firm, including subcontracting opportunities in industry categories where these entities are not dominant in the company's current subcontractor base; and

(7) A Letter of Intent signed by both parties. At a minimum, the Letter of Intent must include the stated commitment that the parties intend to enter into a mentor-protege agreement under the NASA program, that they intend to cooperate in the developmental of a suitable developmental assistance program to meet their respective needs, and that they agree to comply with the obligations in section 1819.7215 and all other provisions governing the program.

1819.7212 OSDBU review and approval process of agreement.

(a) The information specified in 1819.7211(b) is reviewed by NASA OSDBU. The review by the NASA OSDBU will be completed no later than 30 days after receipt by the OSDBU. NASA OSDBU will provide a copy of the submitted information to the cognizant NASA technical program manager and contracting officer for a parallel review and concurrence.

(b) If OSDBU approves the application, then the mentor

(1) Negotiates agreement with the protege; and

(2) Submits an original and two (2) copies of the agreement to NASA OSDBU for approval by the NASA Mentor-Protege program manager, the NASA technical program manager and the contracting officer.

(c) Upon agreement approval, the mentor may implement developmental assistance program.

(d) An approved agreement will be incorporated into the mentor's contract with NASA. It should be added to the subcontracting plan in contracts which contain such a plan.

(e) If OSDBU disapproves the application, then the mentor may provide additional information for reconsideration. The review of any supplemental material will be completed within 30 days after receipt by the OSDBU. Upon finding deficiencies that NASA considers correctable, the OSDBU will notify the mentor and request information to be provided within 30 days that may correct the deficiencies.

1819.7213 Agreement contents.

The contents of the agreement must contain:

(a) Names and addresses of mentor and protege firms and a point of contact within both firms who will oversee the agreement;

(b) Procedures for the mentor firm to notify the protege firm, OSDBU and the contracting officer, in writing, at least 30 days in advance of the mentor firm's intent to voluntarily withdraw from the program;

(c) Procedures for a protege firm to notify the mentor firm in writing at least 30 days in advance of the protege firm's intent to voluntarily terminate the mentor-protege agreement. The mentor shall notify the OSDBU and the contracting officer immediately upon receipt of such notice from the protege;

(d) A description of the type of developmental program that will be provided by the mentor firm to the protege firm, to include a description of the subcontract work, and a schedule for providing assistance and criteria for evaluation of the protege's developmental success;

(e) A listing of the number and types of subcontracts to be awarded to the protege firm;

(f) Program participation term;

(g) Termination procedures;

(h) Plan for accomplishing work should the agreement be terminated; and

(i) Other terms and conditions, as appropriate.

1819.7214 Developmental assistance.

The forms of developmental assistance a mentor can provide to a protege include:

(a) Management guidance relating to --

(1) Financial management,

(2) Organizational management,

(3) Overall business management/planning, and

(4) Business development;

(b) Engineering and other technical assistance;

(c) Noncompetitive award of subcontracts under NASA contracts;

(d) Progress payments based on costs. The customary progress payment rate for all NASA contracts with small disadvantaged businesses is 95 percent. This customary progress payment rate for small disadvantaged businesses may be used by prime contractors;

(e) Advance payments. While a mentor can make advance payments to its proteges who are performing as subcontractors, the mentor will only be reimbursed by NASA for these costs if advance payments have been authorized in accordance with statute and regulation;

(f) Loans;

(g) Rent-free use of facilities and/or equipment;

(h) Property; and

(i) Temporary assignment of personnel to protege for purpose of training.

1819.7215 Obligation.

(a) Mentor or protege may voluntarily withdraw from the program as mutually agreed by both mentor and protege.

(b) Mentor and protege firms will submit a "lessons learned" evaluation to the NASA OSDBU at the conclusion of the pilot program period or the conclusion of their effort, whichever comes first.

1819.7216 Internal controls.

(a) The NASA OSDBU will manage the program. Internal controls will be established by NASA OSDBU to achieve the stated program objectives (by serving as checks and balances against undesired actions or consequences) such as:

(1) Reviewing and evaluating mentor applications for realism, validity and accuracy of provided information;

(2) Reviewing semi-annual progress reports submitted by mentors and proteges, if any, on protege development to measure protege progress against the master plan contained in the approved agreement.

(3) Site visits to NASA installation where Mentor-Protege activity is on-going.

(b) NASA may terminate Mentor-Protege agreements if NASA determines that such actions are in NASA's interest. These actions shall be approved by the NASA OSDBU. NASA will terminate an agreement or exclude a particular entity by sending a written notice to the affected party specifying the action being taken and the effective date of that action. Termination of an agreement does not constitute a termination of the subcontract between the Mentor and the Protege. A plan for accomplishing the subcontract effort should the agreement be terminated shall be submitted with the agreement, as required in 1819.7213(h).

1819.7217 Reports.

(a) Semi-annual reports shall be submitted by the mentor to the NASA mentor-protege program manager, NASA Headquarters OSDBU, to include information as outlined in 1819.7206(b).

(b) Proteges are encouraged to submit semi-annual reports, to the NASA mentor-protege program manager, on program progress as pertains to their mentor-protege agreement. However, costs associated with the preparation of these reports will not be reimbursed by the Government.

(c) The NASA technical program manager shall include an assessment of the Prime Contractor's (Mentor's) performance in the Mentor-Protege program in his quarterly 'Strengths and Weaknesses' evaluation report. A copy of these comments, as pertains to the technical effort and protege development, will be provided to NASA Headquarters OSDBU and the Contracting Officer.

(d) The NASA mentor-protege program manager will submit semi-annual reports to the cognizant contracting officer regarding participating prime contractor's performance in the program for use in the award fee determination process.

1819.7218 Program review.

At the conclusion of each year in the mentor-protege program, the prime contractor and protege, as appropriate, will formally brief the NASA mentor-protege program manager, the technical program manager and the contracting officer regarding program accomplishments as pertains to the approved agreement. This review will be incorporated into the normal program review, where applicable. A separate review will be scheduled for other contracts to be held at the NASA work site location.

1819.7219 Solicitation provision and contract clauses.

(a) The contracting officer shall insert the clause at 1852.219-77, NASA Mentor-Protege Program, in all solicitations and contracts with subcontracting plans or in the case of small business set-asides exceeding $500,000 ($1,000,000 for construction) that offer subcontracting opportunities.

(b) The contracting officer shall insert the provision at 1852.219-78, Evaluation of Prime Contractor Participation in the Mentor-Protege Program, in all solicitations containing the provisions at 1852.219-77, NASA Mentor-Protege Program and FAR 52.219-9, Small Business and Small Disadvantaged Business Subcontracting Plan.

(c) The contracting officer shall insert the clause at 1852.219-79, Mentor Requirements and Evaluation, in contracts where the prime contractor is a participant in the NASA Mentor-Protege Program.

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