Rule2023-21983
NASA Federal Acquisition Regulation Supplement: NASA Mentor-Protégé Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 10, 2023
Effective
November 9, 2023
Issuing agencies
National Aeronautics and Space Administration
Abstract
NASA is finalizing amendments to the NASA Federal Acquisition Regulation Supplement (NFS)to reflect updates to NASA's Small Business Mentor Prot[eacute]g[eacute] Program (MPP).
Full Text
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<title>Federal Register, Volume 88 Issue 194 (Tuesday, October 10, 2023)</title>
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[Federal Register Volume 88, Number 194 (Tuesday, October 10, 2023)]
[Rules and Regulations]
[Pages 69883-69887]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-21983]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1801, 1819, and 1852
RIN 2700-AE65
NASA Federal Acquisition Regulation Supplement: NASA Mentor-
Prot[eacute]g[eacute] Program
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: NASA is finalizing amendments to the NASA Federal Acquisition
Regulation Supplement (NFS)to reflect updates to NASA's Small Business
Mentor Prot[eacute]g[eacute] Program (MPP).
DATES: Effective November 9, 2023.
FOR FURTHER INFORMATION CONTACT: R. Todd Lacks, NASA HQ, Office of
[[Page 69884]]
Procurement Management and Policy Division, LP-011, 300 E Street SW,
Washington, DC 20456-0001. Telephone 202-358-0799 and; facsimile 202-
358-3082.
SUPPLEMENTARY INFORMATION:
I. Background
NASA published a proposed rule in the Federal Register at 88 FR
9421 on February 13, 2023, to update NASA's Small Business Mentor
Prot[eacute]g[eacute] Program (MPP). Amendments discussed included the
requirement of Small Business Specialists' concurrence on the signed
letter of endorsement; requirements associated with credit received
towards subcontracting goals; changes to the MPP reporting requirement
from semi-annually to annually and editorial changes for clarity. NASA
also proposed amendments to reflect the annual negotiation of its small
business percentage goals. Finally, these revisions will emphasize
collaboration among representatives from the Office of Small Business
Programs, Office of Procurement, and Program Offices to reduce barriers
to entry and to opportunities for all small business concerns and
Historically Black Colleges and Universities or Minority Institutions.
II. Discussion
NASA received no public comments and is finalizing this rule with
no changes.
III. Applicability to Commercial Item Acquisitions, Including
Commercially Available Off-The-Shelf (COTS) Items, and Acquisitions
Below the Simplified Acquisition Threshold (SAT)
The final rule implements updates to NASA's MPP. Subpart 1819.72
does not limit the application of the program requirements to non-
commercial contracts or contracts above the simplified acquisition
threshold. Consistent with 41 U.S.C. 1905, 1906 and 1907, the NASA
Assistant Administrator for Procurement has determined that it is in
the best interest of NASA to apply this policy change to the
acquisition of commercial items, including COTS items, and those
requirements below the SAT.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This rule is not a significant regulatory action as defined in E.O.
12866 and was not reviewed by the Office of Management and Budget
(OMB).
V. Regulatory Flexibility Act
NASA does not expect this rule to have a significant economic
impact on small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq. No comments were received on the
initial regulatory flexibility analysis and NASA is finalizing it with
no changes. A summary is provided below.
The final rule will apply to all current and future participants of
the MPP. While the final rule will apply to all classes of small
business, it will not necessarily affect all those businesses because
the final rule only applies to those that are a part of the MPP. As
reported by NASA's Office of Small Business Programs (OSBP), NASA has
entered 6, 1, and 3 mentor prot[eacute]g[eacute] agreements in 2018,
2019, and 2020, respectively. Therefore, this policy will have minimal
impact on small businesses at large.
VI. Paperwork Reduction Act
This rule contains information collection requirements requiring
the approval of OMB under the Paperwork Reduction Act (44 U.S.C.
chapter 35). As part of the proposed rule, NASA requested comments on a
reinstatement with change for OMB 2700-0078, Mentor Protege Program
Small Business and Small Disadvantaged Business Concerns. In the
proposed rule, NASA discussed decreasing the collection requirement
from semi-annual to annual as the Agency conducts semi-annual Mentor
Prot[eacute]g[eacute] performance reviews, which are more effective in
tracking milestones over the life of the agreement than the submission
of semi-annual reports. This change will reduce the reporting
requirement on small businesses from semi-annual to annual and still
capture necessary information from the semi-annual performance reviews.
No comments were received on this change.
List of Subjects in 48 CFR Parts 1801, 1819, and 1852
Government procurement.
Erica Jones,
NASA FAR Supplement Manager.
Accordingly, NASA amends 48 CFR parts 1801, 1819, and 1852 as
follows:
0
1. The authority citation for parts 1801, 1819, and 1852 continue to
read as follows:
Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.
PART 1801--FEDERAL ACQUISITION REGULATIONS SYSTEM
Subpart 1801.1--Purpose, Authority, Issuance
0
2. Revise section 1801.106 to read as follows:
1801.106 Office of Management and Budget (OMB) approval under the
Paperwork Reduction Act.
The following OMB control numbers apply:
------------------------------------------------------------------------
OMB control
NFS segment No.
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1819....................................................... 2700-0078
1823....................................................... 2700-0089
1827....................................................... 2711-0052
1843....................................................... 2700-0054
1852.223-70................................................ 2700-0160
NF533...................................................... 2700-0003
NF1018..................................................... 2700-0017
------------------------------------------------------------------------
PART 1819--SMALL BUSINESS PROGRAMS
Subpart 1819.2--Policies
0
3. Amend section 1819.201 by revising the section heading and paragraph
(a)(ii) to read as follows:
1819.201 General policy.
(a) * * *
(ii) NASA annually negotiates Agency small business prime and
subcontracting goals with the Small Business Administration pursuant to
section 15(g) of the Small Business Act (15 U.S.C. 644). In addition,
representatives from the Office of Small Business Programs, Office of
Procurement, and Program Offices will collaborate to reduce barriers to
entry and to increase opportunities for small business concerns,
identified in paragraph (a)(i) of this section, and Historically Black
Colleges and Universities or Minority Institutions.
Subpart 1819.72--NASA Mentor-Prot[eacute]g[eacute] Program
0
4. Amend section 1819.7201 by:
0
a. Revising paragraph (a) introductory text; and
0
b. In paragraph (b), adding the acronym ``(MPA)'' after the words
``mentor-prot[eacute]g[eacute] agreements''.
The revision reads as follows:
[[Page 69885]]
1819.7201 Scope of subpart.
(a) This subpart implements the NASA Mentor-Prot[eacute]g[eacute]
Program (hereafter referred to as the Program) as authorized by the
Small Business Administration in accordance with 13 CFR 125.10. The
purpose of the program is to:
* * * * *
0
5. Revise section 1819.7202 to read as follows:
1819.7202 Eligibility.
(a) To be eligible as a mentor, an entity must be--
(1) A large business prime contractor or research institution
performing with at least one approved subcontracting plan (other than a
commercial plan) negotiated with NASA, pursuant to FAR subpart 19.7. A
contractor may apply to become a mentor if they currently are not
performing under a NASA contract, as long as they are currently
performing another Federal agency contract with an approved
subcontracting plan. However, the NASA MPA will not be approved until
the mentor company is performing under a NASA contract with an approved
subcontracting plan.
(2) Eligible for receipt of Government contracts. An entity will
not be approved for participation in the program if, at the time of
submission of the application to the NASA Mentor Prot[eacute]g[eacute]
Program Office (MPPO), the entity is debarred or suspended from
contracting with the Federal Government pursuant to FAR subpart 9.4.
(b) To be eligible to participate as a prot[eacute]g[eacute], an
entity must be eligible for award of Federal contracts in accordance
with FAR subpart 9.4, i.e., entities cannot be suspended or debarred at
the time of application for the program and must be classified as one
of more of the following entities or socio-economic categories as
defined by FAR part 2:
(1) Small disadvantaged business;
(2) Women-owned small or economically disadvantaged women-owned
concern;
(3) Veteran-owned or service-disabled veteran-owned small business
concern;
(4) Historically underutilized business zone concern;
(5) Historically Black College and University or Minority-Serving
Institution;
(6) Current NASA Small Business Innovation Research (SBIR)/Small
Business Technology Transfer (STTR) Phase II Company; or
(7) An entity participating in the AbilityOne Program.
(c) A prot[eacute]g[eacute] firm may self-certify to a mentor firm
that it meets the requirements set forth in paragraph (b) of this
section. Mentors may rely in good faith on written representations by
potential prot[eacute]g[eacute]s that they meet the specified
eligibility requirements.
0
6. Revise section 1819.7203 to read as follows:
1819.7203 Mentor-prot[eacute]g[eacute] advanced payments.
If advance payments are contemplated, the mentor must first have
the advance payments approved by the contracting officer in accordance
with FAR subpart 32.4.
0
7. Amend section 1819.7204 by:
0
a. Revising paragraphs (a) introductory text and (a)(1) and (3);
0
b. Removing paragraph (a)(4);
0
c. Redesignating paragraph (a)(5) as paragraph (a)(4);
0
d. Removing paragraph (c);
0
e. Redesignating paragraph (b) as paragraph (c); and
0
e. Adding a new paragraph (b).
The revisions and addition read as follows:
1819.7204 Agreement submission and approval process.
(a) To participate in the Program, entities approved as mentors,
will submit a complete agreement package to the contracting officer,
contracting officer's representative (COR), and the cognizant Small
Business Specialist (SBS) at the NASA Center. The submission package
must include the following:
(1) A signed MPA;
* * * * *
(3) The estimated cost of the developmental assistance to be
provided, broken out per year and per task, in a separate cost volume;
and
* * * * *
(b) The NASA MPPO may require additional information as requested
upon agreement submission.
* * * * *
0
8. Amend section 1819.7205 by:
0
a. Revising the section heading and paragraph (a);
0
b. Removing paragraph (c)(4);
0
c. Redesignating paragraphs (c)(5) and (6) as paragraphs (c)(4) and
(5); and
0
d. Revising paragraph (d).
The revisions read as follows:
1819.7205 Award Fee Program.
(a) Mentors may be eligible to earn a separate award fee associated
with the provision of developmental assistance to NASA SBIR/STTR Phase
II Prot[eacute]g[eacute]s only. The award fee will be assessed at each
award fee determination period.
* * * * *
(d) The Award Fee Program is an addition to the credit agreement,
reference 1819.7206. Participants that are eligible for award fee may
also receive credit under their individual contract's award fee plan.
0
9. Add section 1819.7206 to read as follows:
1819.7206 Credit agreement.
In a MPA (as referenced in section 6 ``Agreements'' of the MPP
Guidebook), a mentor receives credit toward its subcontracting goals.
The credit agreement only applies to mentors with an Individual
Subcontract Plan.
(a) Costs incurred under a credit agreement are applied on a one-
to-one basis toward applicable subcontracting goals, under a Federal
agency subcontracting plan (FAR subpart 19.7).
(b) The credit is reported on the mentor's individual
subcontracting report (ISR) in the comments section twice a year and in
the Summary Subcontract Report (SSR) once a year. The MPPO will verify
the dollars contained in the annual reports.
0
10. Amend section 1819.7212 by revising paragraphs (a), (b), (c)
introductory text, and (d) through (g) to read as follows:
1819.7212 Reporting requirements.
(a) Mentors must report on the progress made under active MPA
annually throughout the term of the agreement.
(b) Reports are due 30 days after the end of each 12-month period
of performance commencing with the start of the agreement.
(c) Each annual report must include the following data on
performance under the MPA:
* * * * *
(d) Annually the prot[eacute]g[eacute] must provide an
independently developed progress report using the annual report
template, on the progress made during the prior twelve months by the
prot[eacute]g[eacute] in employment, revenues, and participation in
NASA contracts during each year of the Program participation term. The
prot[eacute]g[eacute] must also provide an additional post-agreement
report for each of the two years following the expiration of the
Program participation term.
(e) The prot[eacute]g[eacute] annual report required by paragraph
(d) of this section must be submitted separately from the mentor's
annual report submission.
(f) Reports for all agreements must be submitted to the NASA Mentor
Prot[eacute]g[eacute] Program Manager, the mentor's cognizant
administrative Contracting Officer, and their Small Business
Specialist.
(g) Templates for the annual report and the Post-Agreement report
and
[[Page 69886]]
guidance for their submission are available at: <a href="https://www.nasa.gov/osbp/mentor-protege-program">https://www.nasa.gov/osbp/mentor-protege-program</a>.
0
11. Add section 1819.7213 to read as follows:
1819.7213 Reporting allowances.
The mentor may include its developmental expenditures from the
annual report, reference 1819.7212, in its reported dollars in its
Summary Subcontracting Report (SSR) in the Electronic Subcontracting
Reporting System (eSRS).
(a) If the prot[eacute]g[eacute] is also the mentor's immediate
next-tier subcontractor under a NASA contract that contains a
subcontracting plan, the mentor may also include its developmental
expenditures in its Individual Subcontracting Report (ISR) for that
contract. Expenditures may be applied to each socio-economic
subcategory on the SSR and ISR for which the prot[eacute]g[eacute]
qualifies.
(b) Developmental expenditures included in SSR's and ISR's must
also be separately reported and explained (including the actual dollar
amount) in the ``Remarks'' section of each report.
(c) Expenditures for AbilityOne prot[eacute]g[eacute]s cannot be
included in SSR's or ISR's since there is no such reporting category
for SSR's or ISR's.
0
12. Amend section 1819.7215 by revising paragraph (a) to read as
follows:
1819.7215 Solicitation provision and contract clauses.
(a) The contracting officer shall insert the clause at 1852.219-77,
NASA Mentor-Prot[eacute]g[eacute] Program, in any contract that
includes the clause at FAR 52.219-9, Small Business Subcontracting
Plan.
* * * * *
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
Subpart 1852.2--Texts of Provisions and Clauses
0
13. Amend section 1852.219-77 by revising the date of the clause and
paragraphs (b) through (d) to read as follows:
1852.219-77 NASA Mentor-Prot[eacute]g[eacute] Program.
* * * * *
NASA MENTOR-PROT[Eacute]G[Eacute] PROGRAM (OCT 2023)
* * * * *
(b) The Program consists of--
(1) Mentors, which are large business prime or research
institution with at least one approved NASA subcontracting plan;
(2) Prot[eacute]g[eacute]s, which qualify as one or more of the
following:
(i) Small Business Concern, as defined in FAR part 2,
Definitions of Parts and Terms, including: Women-Owned or
Economically-Owned Concern; Veteran-Owned or Service-Disabled
Veteran-Owned Small Business Concern; Historically Underutilized
Business Zone Concern;
(ii) Historically Black College and University or Minority-
Serving Institution;
(iii) Current NASA SBIR/STTR Phase II Company; or
(iv) An Entity Participating in the AbilityOne Program;
(3) MPA endorsed by the cognizant NASA centers and approved by
the NASA MPPO; and
(4) In contracts with award fee incentives, potential for
payment of an award fee for voluntary participation and successful
performance in the Mentor-Prot[eacute]g[eacute] Program, in
accordance with NFS 1819.7205.
(c) Mentor participation in the program, described in NFS
1819.72, means providing technical, managerial, and financial
assistance to aid prot[eacute]g[eacute]s in developing requisite
high-tech expertise and business systems to compete for and
successfully perform NASA, as well as other Federal and commercial
contracts and subcontracts.
(d) Eligible businesses and research institutions interested in
participating in the program are encouraged to contact the NASA
MPPO.
* * * * *
0
14. Amend section 1852.219-79 by:
0
a. Revising the date of the clause and paragraph (a);
0
b. Removing the undesignated text following paragraph (a);
0
c. Redesignating paragraphs (b) through (f) as paragraphs (c) through
(g);
0
d. Adding a new paragraph (b);
0
e. Revising newly redesignated paragraphs (c) introductory text and
(c)(3) and (4);
0
f. Removing newly redesignated paragraph (c)(5); and
0
g. Revising newly redesignated paragraphs (d) through (g).
The revisions and addition read as follows:
1852.219-79 Mentor requirements and evaluation.
* * * * *
MENTOR REQUIREMENTS AND EVALUATION (OCT 2023)
(a) The purpose of the NASA Mentor-Prot[eacute]g[eacute] Program
is for a NASA prime contractor to provide developmental assistance
to:
(1) Provide incentives to NASA contractors, performing under at
least one active approved subcontracting plan negotiated with NASA
to assist prot[eacute]g[eacute]s in enhancing their capabilities to
perform as viable NASA, other Government, and commercial suppliers
on contract and subcontract requirements;
(2) Increase the overall participation of prot[eacute]g[eacute]s
as subcontractors and suppliers under NASA contracts, other Federal
agency contracts, and commercial contracts; and
(3) Foster the establishment of long-term business relationships
between prot[eacute]g[eacute]s and mentors.
(b) The Mentor shall comply with the annual reporting
requirements detailed in NASA FAR Supplement 1819.7212.
(c) NASA will evaluate the Mentor's performance on the following
factors in the subcontracting element of the annual Contractor
Performance Assessment Report (CPAR). If this contract includes an
award fee incentive, this evaluation will also be included as part
of the subcontracting element in the award fee evaluation process.
* * * * *
(3) The extent to which the mentor and prot[eacute]g[eacute]
have met the developmental milestones outlined in the agreement; and
(4) The extent to which the mentor has contributed to advancing
the prot[eacute]g[eacute]'s technical readiness level. This factor
only applies if the prot[eacute]g[eacute] is a current NASA SBIR/
STTR Phase II contractor.
(d) Annual reports shall be submitted by the Mentor and the
Prot[eacute]g[eacute] to the MPPO, following the annual report
template found on the website at <a href="http://www.nasa.gov/osbp">www.nasa.gov/osbp</a>.
(1) Except for as noted in paragraph (d)(4) of this section, the
Mentor may include its developmental expenditures from the annual
report, reference 1819.7212, Reporting Requirements, in its reported
dollars in its Summary Subcontracting Report (SSR) in eSRS.
(2) If the prot[eacute]g[eacute] is also the mentor's immediate
next-tier subcontractor under a NASA contract that contains a
subcontracting plan, the Mentor may also include its developmental
expenditures in its Individual Subcontracting Report (ISR) for that
contract. Expenditures may be applied to each socio-economic
subcategory on the SSR and ISR for which the prot[eacute]g[eacute]
qualifies.
(3) Developmental expenditures included in SSR's and ISR's must
also be separately reported and explained (including the actual
dollar amount) in the ``Remarks'' section of each report.
(4) Expenditures for AbilityOne prot[eacute]g[eacute]s cannot be
included in SSR's or ISR's, since there is no such reporting
category for SSR's or ISR's.
(e) The mentor will notify the cognizant NASA center and NASA
OSBP in writing, at least 30 days in advance of the Mentor's intent
to voluntarily withdraw from the program or upon receipt of a
prot[eacute]g[eacute]'s notice to withdraw from the Program.
(f) Every six months, the Mentor and Prot[eacute]g[eacute], as
appropriate, will formally brief the MPPO, and the contracting
officer during a formal program review regarding program
accomplishments, as it pertains to the approved agreement.
[[Page 69887]]
(g) NASA may terminate MPA for good cause, thereby excluding
mentors or prot[eacute]g[eacute]s from participating in the program.
These actions shall be approved by the MPPO. NASA shall terminate an
agreement by delivering to the contractor a letter specifying the
reason for termination and the effective date. Termination of an
agreement does not constitute a termination of the subcontract
between the mentor and the prot[eacute]g[eacute]. A plan for
accomplishing the subcontract effort should the agreement be
terminated shall be submitted with the agreement.
* * * * *
[FR Doc. 2023-21983 Filed 10-6-23; 8:45 am]
BILLING CODE 7510-13-P
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