15 U.S.C. § 657r — Mentor-protege programs

(a) Administration program. (1) The Administrator may establish a mentor-protege program for all small businesses. (2) It must be identical to the Administration’s section 637(a) program as it existed January 2, 2013, except for changes needed for the kinds of proteges included. (3) From August 13, 2018, until the Puerto Rico Oversight Board ends, the Administrator must identify possible incentives for a covered mentor that subcontracts to a covered protege, including positive treatment in past-performance reviews and counting training costs in the mentor’s section 637(d)(4) or (5) subcontracting plan. (4) From January 1, 2021, until 4 years after that date, the Administrator must identify the same kinds of incentives for a covered-territory mentor subcontracting to a covered-territory protege. (b) Programs of other agencies. (1) Except for paragraph (4), an agency may not operate a mentor-protege program unless its head submits a plan to the Administrator and the Administrator approves it. (2) The Administrator approves only if the program helps proteges compete for Federal prime contracts and subcontracts and follows the paragraph (3) rules. (3) Within 270 days after January 2, 2013, after notice and comment, the Administrator must issue rules ensuring that programs improve competition ability and addressing eligibility and relationship limits; developmental assistance and its effect on competitiveness; affiliation and small-business status; relationship length and contracting effects; mentor benefits; reporting during and after participation; whether a pair accepted by one agency must be accepted by all; protections against harm to the protege’s status or disproportionate mentor benefits; and assistance with post-award Federal-contract compliance. Up to two relationship limits do not apply to covered-protege/covered-mentor or covered-territory-protege/covered-territory-mentor relationships. (4) Approval is not required for Defense Department programs, SBIR or STTR mentoring, or—until 1 year after the rules issue—an agency program operating January 2, 2013. (c) Reporting. Within 2 years after January 2, 2013, and every year after, the Administrator must report to the House and Senate small-business committees, identifying each Federal program; the number of participants, including small businesses, service-disabled-veteran-owned businesses, HUBZone businesses, socially and economically disadvantaged businesses, and women-owned businesses; the assistance given to proteges; mentor benefits; and proteges’ progress competing for Federal contracts. Each agency must annually provide the needed information. (d) Definitions. “Mentor” means a for-profit concern of any size able and committed to help a protege compete for Federal prime contracts and subcontracts and meeting the Administrator’s other requirements. “Mentor-protege program” means a program pairing them for that purpose. “Protege” means an eligible small business that may enter Federal prime contracts and subcontracts and meets the Administrator’s other requirements. “Covered mentor” means a mentor with an agreement under this chapter or an approved program with a Puerto Rico business protege. “Covered territory mentor” and “covered territory protege” have the same relationship for a covered-territory business. (e) Current agreements. A mentor and protege with an approved agreement in a paragraph (b)(4)(C) program may continue under that agreement until its stated expiration. (f) Agency plans. Agencies operating such programs must submit their plans within 6 months after the rules are issued. The Administrator must give initial comments within 60 days after receipt and final approval or denial within 180 days.