NASA Revives Mentor-Protégé Program for Contractors

NASA recently announced that it is reviving and updating its mentor-protégé program for those who do business with the agency. In doing so, NASA joins other agencies such as the Departments of Defense and Homeland Security which offer similar mentor-protégé initiatives. This summer, the General Services Administration announced plans for a similar program. Like mentor-protégé programs in other agencies, NASA's initiative provides attractive incentives for large, established government contractors willing to offer developmental assistance to small protégé companies. These incentives may include receiving small business subcontracting credit, reimbursement of certain costs, and eligibility for fee awards. In reviving this program, NASA (which expended some $10 billion in FY 2007) has significantly expanded opportunities in the Federal market for both large and small businesses.

Mentor-Protégé Program Requirements
Virtually any NASA contractor with an approved subcontracting plan can serve as a mentor. Mentor companies can recruit as protégés small businesses that are otherwise qualified to be Federal contractors that fall into one of several categories, including: Small Disadvantaged Businesses, women-owned businesses, disabled veteran-owned businesses or HUBZone small businesses.

Mentors agree to assist protégé companies with:

• Business management (including organizational business management, financial management, personnel, marketing, business development and business planning;
• Engineering, technical matters, environmental matters;
• Financial assistance in the form of advance payments for subcontracts (if applicable), loans, investments in the protégé company (not to exceed 10 percent total ownership interest); and
• Any other assistance aimed at developing the protégé company's capabilities.

Benefits of Participating
In exchange for assistance, mentor companies may have certain costs reimbursed, receive an award fee, and receive small business subcontracting credit under their subcontracting plans. In some circumstances, they may serve as a subcontractor on a contract set aside for small businesses or for which their protégé may qualify as the prime contractor.

The mentor and protégé agreement is formalized through an agreement between the companies, and approved by the contracting agency. The agreement establishes business development milestones for the protégé company and describes how the mentor-protégé relationship will increase the protégé company's ability to compete in the Federal marketplace. Mentor companies periodically report to the government on progress made throughout the duration of an agreement. Agencies may conduct performance reviews to measure the program's success, and if the agreement is under the award fee pilot program, the assessment may be incorporated into the agency's fee evaluation.

A Potentially Good Deal For Mentor and Protégé Companies
The revival of NASA's mentor-protégé program reopens expanded opportunities for large and smaller companies in the Federal marketplace. Like every contractual arrangement, however, care must be given in selecting your partner, in negotiating the arrangement, and in selecting the projects on which the team is to work together.