Government Contracts SBA Rule Consolidates Mentor-Protégé Programs
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Tuesday, November 10, 2020

SBA Rule Consolidates Mentor-Protégé Programs

By Government Contracts Editorial Staff

The Small Business Administration has finalized, with changes, a proposed rule (¶70,425.636) merging the 8(a) Business Development Mentor-Protégé Program and the All Small Mentor-Protégé Program. The rule eliminates a separate 8(a) program but continues to allow any 8(a) participant to enter a mentor-protégé relationship through the ASMPP. Accordingly, the rule amends SBA 124.520 to recognize that an 8(a) participant may participate in the ASMPP. As a result of the rule, a mentor-protégé relationship approved by SBA through the 8(a) BDMPP will continue to operate as an SBA-approved mentor-protégé relationship under the ASMPP. It will continue to have the same remaining time in the ASMPP as it would have had under the 8(a) BDMPP if that program continued. Any mentor-protégé relationship approved under the 8(a) BDMPP will count as one of the two lifetime mentor-protégé relationships that a small business may have under the ASMPP.

Burdens Eased. This rule also eliminates the requirement that 8(a) participants seeking an 8(a) contract award as a joint venture submit the JV agreement to SBA for review and approval prior to contract award; revises several 8(a) BD program regulations to reduce unnecessary or excessive burdens on 8(a) participants; and clarifies other related regulatory provisions to eliminate confusion among small businesses and procuring activities. Further, in response to public comments, the final version of the rule revises SBA 121.404 to require a business concern to recertify its size and/or socioeconomic status for all set-aside orders under unrestricted multiple-award contracts, unless the contract authorized limited pools of concerns for which size and/or status was required. A complete listing of the regulations impacted by the rule appears in the regulation table below. SBA issued the rule pursuant to Executive Order 13771, Reducing Regulation and Controlling Regulatory Costs, to eliminate confusion and remove unnecessary duplication of functions within SBA. The rule goes into effect on November 16, 2020, with the exception of the changes to SBA 127.504, which went into effect on October 16, 2020. See ¶70,425.684 for the full text of the rule.

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