219.704 - Subcontracting plan requirements
(1) In those subcontracting plans which specifically identify small businesses, prime contractors shall notify the administrative contracting officer of any substitutions of firms that are not small business firms, for the small business firms specifically identified in the subcontracting plan. Notifications shall be in writing and shall occur within a reasonable period of time after award of the subcontract. Contractor-specified formats shall be acceptable.
(2) See 215.304 for evaluation of offers in acquisitions that require a subcontracting plan.
219.705 - Responsibilities of the contracting officer under the subcontracting assistance program
219.705-4 - Reviewing the subcontracting plan
(d)(i) Challenge any subcontracting plan that does not contain positive goals. A small disadvantaged business goal of less than five percent must be approved one level above the contracting officer.
(ii) The contracting officer may use the checklist at PGI 219.705-4 when reviewing subcontracting plans in accordance with FAR 19.705-4.
219.708 - Contract clauses
(b)(1)(A) Use the basic, alternate I, or alternate II clause at 252.219-7003 , Small Business Subcontracting Plan (DoD Contracts), in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that contain the clause at FAR 52.219-9, Small Business Subcontracting Plan.
(1) Use the basic clause at 252.219-7003 , when using the basic, alternate I, or alternate II of FAR 52.219-9.
(2) Use the alternate I clause at 252.219-7003 , when using Alternate III of FAR 52.219-9.
(3) Use the alternate II clause at 252.219-7003 when using the Demonstration Project described at 226.72.
(B) In contracts with contractors that have comprehensive subcontracting plans approved under the Test Program described in 219.702-70 , including contracts using FAR part 12 procedures for the acquisition of commercial items, use the clause at 252.219-7004 , Small Business Subcontracting Plan (Test Program), instead of the clauses at 252.219-7003 , Small Business Subcontracting Plan (DoD Contracts), FAR 52.219-9, Small Business Subcontracting Plan, and FAR 52.219-16, Liquidated Damages—Subcontracting Plan.
(2) In contracts with contractors that have comprehensive subcontracting plans approved under the Test Program described in 219.702-70 , do not use the clause at FAR 52.219-16, Liquidated Damages–Subcontracting Plan.
(c)(1) Do not use the clause at FAR 52.219-10, Incentive Subcontracting Program, in contracts with contractors that have comprehensive subcontracting plans approved under the Test Program described in 219.702-70 .
See DoD Class Deviation 2018-O0007, Small Business Subcontract Reporting, issued December 13, 2017. Use this class deviation in lieu of FAR 52.219-9, Alternate IV, and DFARS 252.219-7003 . The purpose of this class deviation is to (1) require submission of the Standard Form (SF) 294 in lieu of Individual Subcontract Reports (ISRs) in the Electronic Subcontracting Reporting System (eSRS) for orders against basic ordering agreements and blanket purchase agreements, and (2) change the entity to which the contractor submits the SSR from the DoD department or agency to DoD. This deviation is effective until incorporated in the DFARS or otherwise rescinded.
219.7100 - Scope
This subpart implements the Pilot Mentor-Protege Program (hereafter referred to as the “Program”) established under section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 101-510; 10 U.S.C. 2302 note), as amended through December 23, 2016. The purpose of the Program is to provide incentives for DoD contractors to assist protege firms in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts.
219.7101 - Policy
DoD policy and procedures for implementation of the Program are contained in Appendix I, Policy and Procedures for the DoD Pilot Mentor-Protege Program.
219.7102 - General
The Program includes—
(a) Mentor firms and protege firms that meet the criteria in Appendix I, section I-102.
(b) Mentor-protege agreements that establish a developmental assistance program for a protege firm.
(c) Incentives that DoD may provide to mentor firms, including:
(1) Reimbursement for developmental assistance costs through—
(i) A separately priced contract line item on a DoD contract; or
(ii) A separate contract, upon written determination by the cognizant Component Director, Small Business Programs (SBP), that unusual circumstances justify reimbursement using a separate contract; or
(2) Credit toward applicable subcontracting goals, established under a subcontracting plan negotiated under FAR subpart 19.7 or under the DoD Comprehensive Subcontracting Test Program, for developmental assistance costs that are not reimbursed.
219.7103 - Procedures
219.7103-1 - General
The procedures for application, acceptance, and participation in the Program are in APPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM , Policy and Procedures for the DoD Pilot Mentor-Protege Program. The Director, SBP, of each military department or defense agency has the authority to approve contractors as mentor firms, approve mentor-protege agreements, and forward approved mentor-protege agreements to the contracting officer when funding is available.
219.7103-2 - Contracting officer responsibilities
Contracting officers must -
(a) Negotiate an advance agreement on the treatment of developmental assistance costs for either credit or reimbursement if the mentor firm proposes such an agreement, or delegate authority to negotiate to the administrative contracting officer (see FAR 31.109).
(b) Modify (without consideration) applicable contract(s) to incorporate the clause at 252.232-7005, Reimbursement of Subcontractor Advance Payments - DoD Pilot Mentor-Protégé Program, when a mentor firm provides advance payments to a protégé firm under the Program and the mentor firm requests reimbursement of advance payments.
(c) Modify (without consideration) applicable contract(s) to incorporate other than customary progress payments for protégé firms in accordance with FAR 32.504(c) if a mentor firm provides such payments to a protégé firm and the mentor firm requests reimbursement.
(d) Modify applicable contract(s) to establish a contract line item for reimbursement of developmental assistance costs if -
(1) A DoD program manager or the cognizant Component Director, SBP, has made funds available for that purpose; and
(2) The contractor has an approved mentor-protégé agreement.
(e) Negotiate and award a separate contract for reimbursement of developmental assistance costs only if -
(1) Funds are available for that purpose;
(2) The contractor has an approved mentor-protégé agreement; and
(3) The cognizant Component Director, SBP, has made a determination in accordance with 219.7102(c)(1)(ii).
(f) Not authorize reimbursement for costs of assistance furnished to a protégé firm in excess of $1,000,000 in a fiscal year unless a written determination from the cognizant Component Director, SBP, is obtained.
(g) Advise contractors of reporting requirements in APPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM .
(h) Provide a copy of the approved Mentor-Protégé agreement to the Defense Contract Management Agency administrative contracting officer responsible for conducting the annual performance review (see appendix I, section I-113).
219.7104 - Developmental assistance costs eligible for reimbursement or credit
(a) Developmental assistance provided under an approved mentor-protege agreement is distinct from, and must not duplicate, any effort that is the normal and expected product of the award and administration of the mentor firm’s subcontracts. The mentor firm must accumulate and charge costs associated with the latter in accordance with its approved accounting practices. Mentor firm costs that are eligible for reimbursement are set forth in APPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM .
(b) Before incurring any costs under the Program, mentor firms must establish the accounting treatment of developmental assistance costs eligible for reimbursement or credit. To be eligible for reimbursement under the Program, the mentor firm must incur the costs not later than September 30, 2021.
(c) If the mentor firm is suspended or debarred while performing under an approved mentor-protege agreement, the mentor firm may not be reimbursed or credited for developmental assistance costs incurred more than 30 days after the imposition of the suspension or debarment.
(d) Developmental assistance costs, incurred by a mentor firm not later than September 30, 2021, that are eligible for crediting under the Program, may be credited toward subcontracting plan goals as set forth in APPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM .
219.7105 - Reporting
Mentor and protege firms must report on the progress made under mentor-protege agreements as indicated in APPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM , Section I-112.
219.7106 - Performance reviews
The Defense Contract Management Agency will conduct annual performance reviews of all mentor-protege agreements as indicated in APPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM , Section I-113. The determinations made in these reviews should be a major factor in determinations of amounts of reimbursement, if any, that the mentor firm is eligible to receive in the remaining years of the Program participation term under the agreement.