DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 12

Legislation

COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN

Mentor Protege Program (Section 831)
Defense contractors act as mentors to SDB proteges by providing training and technical assistance. Mentors
may have more than one protege, but proteges are limited to one mentor. A Protege must be either an SDB
or a qualified organization employing the disabled. Mentors will be eligible for reimbursement from the
federal government. Some of the contractor’s costs can be applied toward the 5% goal. Prospective mentor
companies apply to DOD for program participation.
Under terms of the Program, mentors may:
• award noncompetitive contracts to their proteges.
• provide loans or invest in ownership of protege companies not to exceed 10%.
• make progress payments of up to 100% of cost incurred.
Prime contractors (mentors) may credit the cost of developing the capability of the SDB (protege) toward the
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SDB contracting goal, or receive reimbursement for these costs, or a combination of both. Mentors and
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proteges enter into an agreement (approved by DOD) indicating the types of assistance to be provided,
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assessment factors, and anticipated subcontracts that will be awarded. Once approved, mentors can award for m
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noncompetitive, sole source subcontracts to the protege. There are three options for reimbursing mentorsm
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for costs of developing proteges:
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• contract line item added to existing DOD contract;
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• separate contract, or other agreement with DOD;
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• through costs allocated to an indirect expense pool.
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NOTE: The above is only a brief outline of the program. For complete information, obtain a copy of the
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Defense Federal Acquisition Regulations (DFAR) and the Department of Defense policy on the Mentor
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Protege Program.
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Public Law 102-486 Comprehensive National Energy Policy Actes
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Requires not less than 10% of federal contracts and subcontracts awarded for energy conservation in
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government buildings, purchase of natural gas-powered vehicles and energy research and development be
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awarded to minority and women-owned businesses.
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Public Law 103-355 Federal Acquisitionr tStreamlining Act
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Major provisions include:
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• 5% government-wide contracting goal for small disadvantaged businesses. Authorize set-asides or 10%
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