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Small Business Program Update Chuck Williams ORO Small Business Program Manager NCMA December 5, 2001
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What Can We Expect zNew DOE Acquisition Letter (AL-2001-05) yAffiliation Rules yUse of Price Evaluation Adjustment (PEA) ySBA Mentor Protégé Program zWomen-Owned Business Certification
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Affiliation Rule Exceptions zEach member individually meet the size standard and ythe procurement qualifies bundled or ythe procurement dollar value exceeds half of the size standard or yif the size standard is employee based the contract value must exceed $10M
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8(A) Exceptions zMust be qualified under SBA’s Mentor Protégé Program z8(a) must be substantially involved in the performance of the contract z8(a) must qualify as small under the size standard z13 CFR 124.519 Dollar Limit
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Price Evaluation Adjustment (PEA) zFAR 19.1101 zIn Competitive Acquisitions
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SBA Mentor-Protégé Program FWhat Is the Purpose of the Mentor- Protégé Program? FTo Encourage Approved Mentors to Provide Various Forms of Assistance to Eligible Participants. FTo Serve As an Additional Developmental Tool for 8(a) Participants. FTo Enhance the Capabilities of the Protégé and to Improve It’s Ability to Successfully Compete for Contracts
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SBA Mentor-Protégé Program FWhat Are the Requirements to Become a Mentor? FA Mentor Can Be an 8(a) Participant in the Transitional Stage, a Firm That Has Graduated From the 8(a) Program, Another Small Business, or a Large Business. A Mentor Must Show Both a Commitment and the Ability to Assist a Protégé in the Program FA Mentor Must Demonstrate That It: Possesses Favorable Financial Health Possesses Good Character Is Not on the Federal Debarred or Suspended List Can Provide Valuable Support to a Protégé
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SBA Mentor-Protégé Program FWhat Are the Requirements to Become a Mentor? FA Mentor Can Be an 8(a) Participant in the Transitional Stage, a Firm That Has Graduated From the 8(a) Program, Another Small Business, or a Large Business. A Mentor Must Show Both a Commitment and the Ability to Assist a Protégé in the Program FA Mentor Must Demonstrate That It: Possesses Favorable Financial Health Possesses Good Character Is Not on the Federal Debarred or Suspended List Can Provide Valuable Support to a Protégé
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SBA Mentor-Protégé Program zWhat Are the Requirements to Become a Protégé? yTo Qualify As a Protégé, an 8(a) Participant Must: x Be an 8(a) Participant That Is in the Program Developmental Stage, or xBe an 8(a) Participant That Has Never Received an 8(a) Contract, or Is Less Than Half the Size Standard Corresponding to Its Primary SIC Code, and xBe an 8(a) Participant in Good Standing
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SBA Mentor-Protégé Program zWhat Are the Benefits of Participating in the Mentor-protégé Program? yJoint Venture Arrangements yMentor Financing of the Protégé (up to 40% Equity Interest) yThe Protégé Is Eligible for Other SBA Assistance As a Small Business (Including Financial) yNo Determination of Affiliation or Control May Be Found Based on the Agreement or Any Assistance Provided Pursuant to the Agreement
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SBA Mentor-Protégé Program zCan a Large Business and Small Business Joint Venture on Projects Under the Mentor-Protégé Program? yYes - In Accordance With 13 C.F.R. 124.513(b)(3) - a Joint Venture Between an Approved Mentor and a Protégé Firm Will Be Deemed Small Provided the Protégé Qualifies As Small for the Size Standard Corresponding to the SIC Code Assigned to the Procurement and Has Not Reached the Dollar Limit.
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SBA Mentor-Protégé Program zWhat Must a Mentor-Protégé Agreement Include? yMust Be in Writing yMust Include an Assessment of the Protégé’s Needs yMust Include a Description of the Specific Assistance That the Mentor Will Provide to Address Those Needs yMust be for at least one year yMust include a provision that either party can terminate with 30 days advance notice to the other party and SBA
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