Government and Industry IT: one vision, one community Small Business SIG Mentor / Protégé Programs Myth Busters June 9, 2011

2 Agenda: Some myth busters – up front Types of programs –Not addressing DoD programs Developmental Assistance areas Advantages to the Mentor Advantages to the Protégé Government facts & tidbits Success & Challenges discussion

3 Busting the Myths: Agencies do not give any monetary funding to Mentors for their Protégés MP agreements are not a promise of future work or guarantee work-share on any contract Mentors are not required to “pay” for any expense of the Protégé, or provide financial assistance (outside of the JV MP) Agreements can be rescinded at any time for non-participation

4 Mentor / Protégé Programs: Two distinct types SBA Business Development Joint Venture Relationship between a large, well established firm with a financial interest in a small, socio- economic firm for the purposes of increasing revenue in a SDB contracting environment –Joint Venture with a large & small, socio-economic firm –Mentor has a financial interest in the small firm’s success –Protégé receives specific support documentation from the SBA

5 Mentor / Protégé Programs: Two distinct types Teaming Relationship between a large, well established firm and a small, socio-economic or emerging technology organization with no direct affiliation for the purpose of: –Providing developmental assistance –To enhance Protégé’s capabilities –Prepare for exit from the small business program

Developmental Assistance Areas: Management guidance related to: –Financial Management –Organizational Management –Overall business management & planning –Business Development Technical Assistance (such as): –Business/Technology Certifications planning and execution –SME support –Training support 6

Developmental Assistance Areas: Rent-free use of facilities and/or equipment Property Loans Any other types of mutually beneficial assistance 7

Role of the Agency: Note: This doesn’t include agencies which only recognize the SBA 8(a) JV mentor / protégé program Develop the MP program guidelines Develop measurements for success Manage the participating firms; meet with mentors and protégés on a regular basis Develop and report metrics and findings Evaluate success of small business prime and subcontracting awards 8

Success Measurements: Increase in value of both prime and sub-contract awards to the protégé firm from the date the protégé enters the program Increase in technical, managerial, financial capabilities of the protégé firm, and the developmental assistance the mentor provided An increase in the quality of capabilities provided by the protégé firm 9

Advantages for the Mentor: The government’s primary avenue to increase their small business participation and achieve small business goals –Government views the Mentor as committed to supporting the Agency’s small business goals; and supporting small businesses to achieve growth –Eligible for specific awards for providing the most effective developmental support to a protégé (annual) 10

Advantages for the Mentor: Mentors can receive additional evaluation points for MP participation to contract awards –Example: FAA, Treasury, GSA, State Mentors can receive credit toward attaining sub- contracting goals by utilizing MP participation for their Prime bid Sub-K plans –Example: FAA, State, Treasury, GSA, DHS, 11

Advantages for the Mentor: Some Agencies authorize cost incurred for MP programs deliverables to be allowable as indirect costs under some contract awards –Example: FAA Procurements may be reserved exclusively for competition among respective Agency MP program participants –Example: FAA, Energy, Treasury, 12

Advantages for the Protégé: Build strong business techniques and practices early on; adopt processes at appropriate time in size and growth Gain stronger visibility to customers with Co- marketed events, opportunities, call plans Increased training with SMEs in various areas of performing and managing government business –Certifications, FAR requirements, teaming agreements, etc. 13

Advantages for the Protégé: Business Development & Forecast Pipeline –Build, develop a bid process Capture Support during proposal phases –Reduces cost of resources; assists in mitigating risk to compliance Agency can use the agreement as assurance that the Protégé firm will be able to perform under the contract than a similarly situated non- Protégé firm 14

15 Government facts & tidbits: SBA: –Has the longest standing MP program –Recommends both programs; manages and tracks only the first type – Joint Venture GSA: –Established a program in Aug 2009

16 Government facts and tidbits: FAA: A new program rolled out in 2010; can do directed awards and set-aside competitions for Mentors only NASA: A new program rolled out in Jun 2009 EPA: Likes Woman-Owned business as protégés Commerce: Uses their program to chart SB utilization numbers

17 Government facts & tidbits to be aware of: Treasury: Managed by the OSDBU; works with all the COs to achieve the program goals DHS: Very comprehensive program since 2005; OSDBU office manages with the mentor firms. Require a MP agreement for some contracts VA: New program rolled out in 2010; will have another submission and award in Aug Protégé’s must be SDVOSB or VOB

18 Government facts & tidbits: DOL and DOJ: Both use SBA guidelines for non JV program HUD: Recognizes SBA 8(a) support program Energy: Mentors can award sole-source contracts to any DOE protégé State

19 Challenges for the Protégé: Driving the relationship Leverage success – publicize the relationship within the mentor’s line orgs and customers Continue to develop customer relationship outside of the mentor Select a mentor that has similar work and aligns to your business plan Bring business to the mentor through set-asides and other SB contracts