-------
-------
OVERVIEW
The purpose of this document is to present the conceptual framework
and understanding of the Mentor-Protege Program (hereafter referred
to as the Program) within the United States Environmental Protection
Agency (EPA).
The Program is being introduced and developed within the EPA to
stimulate the participation of small disadvantaged businesses (SDBs) in
EPA contract requirements. The Program is designed to foster long
term relationships between large contractors and SDBs. By sharing
their managerial and technical expertise, the prime contractors will
help SDBs develop the necessary expertise to compete successfully for
EPA prime and subcontract opportunities.
The Program will be initiated by two program offices within EPA - the
Office of Solid Waste and Emergency Response (OSWER), and the
Office of Air and Radiation (OAR). Other program areas will be
considered for inclusion in the Program as the concept becomes
institutionalized within EPA. The Mentor-Protege Program, as written,
focuses on performance fee type contracts. However, contractors with
other types of contracting vehicles are not excluded. This participation
is expected to foster a broad range of experience that can be applied
across other Agency programs.
EPA's Appropriations Act of 1990 establishes a goal for participation
by SDBs in EPA prime contracts and subcontracts. The Clean Air Act
Amendments of 1990 also require that a percentage goal for the use of
SDBs be established within the Agency's air research program. This
Program is designed to help the Agency achieve these goals.
The Mentor-Protege Program plan was originally published in June
1992. The Office of Small and Disadvantaged Business Utilization
hosted a Mentor-Protege Program workshop with OSWER and OAR
contractors in September 1992 focusing on the Program's implementa-
tion. The text of this document has been modified to reflect the results
of that workshop.
U.S. Environ • . • ,, .. ,
Region 5 l[l- ' ctlon Agency
77 West Ja^: .
lii <;„.. '" •
-------
PURPOSE OF THE PROGRAM
• To increase the participation of SDBs as subcontractors, suppliers,
and ultimately as prime contractors;
• To establish a mutually beneficial relationship with SDBs and
EPA's large business prime contractors;
• To develop technical and corporate administrative expertise of the
SDB which will ultimately lead to greater success in competition
for contract opportunities;
• To promote the economic stability of SDBs;
• To aid in the achievement of goals for the use of SDBs in the
Agency's subcontracting activities.
PROGRAM EVALUATION
EPA will measure the overall success of the Program by the
extent to which the Program results in:
• an improvement in the quantity and quality of participation of
SDBs in EPA contracting and subcontracting opportunities that
can be attributed to the development of SDBs as Protege firms
under the Program;
• the development of Protege firms that effectively compete for
contract opportunities offered by private sector firms;
• the continued relationship between the Mentor and Protege in
commercial work and in work for other government agencies.
APPLICATION TO PARTICIPATE
IN THE PROGRAM
Any interested prime contractor holding an EPA performance fee prime
contract supporting OSWER or OAR may apply to participate in the
Program. Firms competing for future such contracts should also
indicate their interest in participating in the Program by contacting
OSDBU at EPA Headquarters, RTP or Cincinnati:
-------
Senior Program Manager, for Direct Procurement
Office of Small and Disadvantaged Business Utilization
U.S. Environmental Protection Agency
401 M Street, S.W. (A-149C)
Washington, D.C. 20460
Telephone: (703) 305-7305
Fax: (703)305-6462
Small Business Specialist
Contracts Management Division (MD-33)
U.S. Environmental Protection Agency
Research Triangle Park, NC 27711
Telephone: (919) 541-2249
Fax: (919)541-0611
Small Business Specialist
Contracts Management Division
U.S. Environmental Protection Agency
26 West Martin Luther King Drive
Cincinnati, OH 45268
Telephone: (512)684-7723
Fax: (513)569-7999
i DURATION OF PARTICIPATION
BY PROTEGE FIRMS
It is anticipated that a Protege firm will participate in the Program no
longer than five (5) years. Upon request from the Mentor-Protege
companies, OSDBU, in consultation with all appropriate EPA officials,
will determine in writing any circumstances which support extension of
a firm's eligibility beyond the five year period.
ELIGIBILITY REQUIREMENTS
A Program participant as a Protege will be a small disadvantaged
business which for purposes of this initiative is defined as a small
business concern:
• which is at least 51 percent owned by one or more socially and
economically disadvantaged individuals or, in the case of a
publicly traded company, at least 51 percent of the stock of which
is owned by one or more socially and economically disadvantaged
individuals; individuals shall be presumed to be socially disadvan-
taged if they are members of the following groups:
-------
(I) Black Americans
(II) Hispanic Americans
(III) Native Americans (including American Indians)
(IV) Asian Americans
(V) Eskimos
(VI) Aleuts
(VII) Native Hawaiians; and
economically disadvantaged individuals are socially disadvantaged
individuals whose ability to compete in the free enterprise system
has been impaired due to diminished capital and credit opportuni-
ties as compared to others in the same or similar line of business
who are not socially disadvantaged, and such diminished opportu-
nities have precluded or are likely to preclude such individuals
from successfully competing in the open market.
• the management and daily business operations of which are
controlled by such individuals; and
a business concern as defined by section 8 (d) (3) (C) of the Small
Business Act, 15 U.S.C. 637 (D) (3) (C);
a business concern that is eligible for the award of Federal con-
tracts;
a small business according to the SBA size standard in the Stan-
dard Industrial Code (SIC) applicable to the contemplated supplies
or services to be provided by the Protege firm to the Mentor firm.
SELF-CERTIFICATION BY PROTEGE FIRMS
A Protege firm may self-certify to a Mentor firm that it meets each of
the eligibility requirements above. Mentor firms may rely in good faith
on a written representation of a business concern that such business
concern meets the requirements mentioned above. The Protege firm's
eligibility to participate in the Program will be determined by the EPA
in consultation with the U.S. Small Business Administration.
SELECTION OF PROTEGE FIRMS
Mentor firms will be responsible for selecting Protege firms. EPA will
attempt to assist Mentor firms to identify eligible Protege firms. The
proposed Proteges must have proven to be viable and capable contrac-
tors who need additional support via this Program to launch the firm to
a competitive status in the environmental contracting marketplace.
4
-------
APPROVAL PROCESS FOR COMPANIES
TO PARTICIPATE IN THE PROGRAM AS
MENTOR FIRMS
A company interested in becoming a Mentor firm must submit an
application to the appropriate EPA official as noted above. The
application will be evaluated on the extent to which the company's
proposal addresses the previously listed items. To the maximum extent
possible, the request should be limited to not more than 10 pages,
double spaced. A company may identify more than one Protege in its
application for approval under the Program.
The application will be evaluated by OSDBU and to the maximum
extent possible, the applicant will be advised within thirty (30) calendar
days whether the request to participate in the Program is approved or
rejected.
If the firm is rejected because of deficiencies in the application,
OSDBU will notify the applicant and allow the firm to submit addi-
tional information for further consideration.
An application shall include the following information:
A statement and supporting documentation that the company is
currently performing under at least one active EPA contract with
an approved subcontracting plan and is eligible for the award of
Federal contracts;
A summary of the company's historical and recent activities and
accomplishments under their SDB program. The company is
encouraged to include any initiatives or outreach information
believed to be pertinent to approval as a Mentor firm;
The total dollar amount of EPA contracts and subcontracts
received by the company during the two preceding fiscal years
(showing prime contracts and subcontracts separately for each
year);
• The total dollar amount and percentage of subcontract awards
made to all SDB firms under EPA contracts during the two
preceding fiscal years. If presently required to submit a SF 295,
provide copies of the two preceding year's end reports;
-------
The number and total dollar amount of subcontract awards made to
the identified Protege firm(s) during the two preceding fiscal years
(if any).
In addition to the information required above, companies must submit
the following information for each proposed Mentor-Protege relation-
ship:
Information on the company's ability to provide developmental
assistance to the identified Protege firm and how that assistance
will potentially increase contracting and subcontracting opportuni-
ties for the Protege firm, including subcontracting opportunities in
industry categories where SDBs are not dominant in the
company's vendor base;
• A letter of intent indicating that both the Mentor firm and the
Protege firm intend to enter into a contractual relationship under
which the Protege will perform as a subcontractor under an eligible
EPA prime contract and that the firms will negotiate a Mentor-
Protege agreement
The letter of intent must be signed by both parties and contain the
following information:
A statement that a prime/subcontractor relationship has not
existed between the SDB and the prime contractor on previous
contracts. In some cases where the proposed Mentor-Protege
relationship will develop areas not addressed through a
previous contracting arrangement, EPA will consider the letter
of intent to determine if a Mentor-Protege agreement would
benefit the protege firm's professional development. (This
assures the identification of new SDBs and expands the pool
of SDBs engaged in EPA contract and subcontracting activi-
ties nationwide. A prior prime/subcontractor relationship
between the SDB and the prime contractor on work for
another Federal agency or a commercial firm will not preclude
consideration of the application by EPA.)
The name, address, and phone number of both parties;
The Protege firm's business classification, based upon the SIC
code(s) applicable to the contemplated supplies or services to
be provided by the Protege firm to the Mentor firm;
A statement that the Protege firm meets the eligibility criteria;
6
-------
A preliminary assessment of the developmental needs of the
Protege firm and the proposed developmental assistance the
Mentor firm envisions providing the Protege. Address those
needs and how they will enhance the Protege. A schedule will
be developed to assess the needs of the Protege and criteria
established to evaluate the success in the Program.
If the Mentor or Protege firm is suspended or debarred while perform-
ing under an approved Mentor-Protege agreement, the firm shall
promptly give notice of its suspension or debarment to the Mentor and/
or Protege firm, OSDBU, the contracting officer and the appropriate
EPA program office. The agency will determine the course of action.
MENTOR-PROTEGE AGREEMENTS
Once approved for participation, each pair of companies shall sign a
Mentor-Protege agreement. Each agreement will be submitted for
approval by EPA and shall include:
• The name, address, telephone number and fax number of the
Mentor and Protege firms and a point of contact within both firms
who will oversee the Mentor-Protege agreement;
• The SIC code applicable to the contemplated supplies or services
to be provided by the Protege firm to the Mentor firm, and a
statement that at the time the agreement is submitted for approval,
the Protege firm does not exceed the size standard for the appropri-
ate SIC code;
Procedures for the Mentor firm to notify the Protege firm,
OSDBU, and the Contracting Officer in writing at least 30 days in
advance of the Mentor firm's intent to voluntarily withdraw from
the Program;
Procedures for a Protege firm to notify the Mentor firm in writing
at least 30 days in advance of the Protege firm's intent to voluntar-
ily terminate the Mentor-Protege agreement. The Mentor shall
notify OSDBU and the Contracting Officer within one week from
receipt of such notice from the Protege;
A description of the type of developmental assistance that will be
provided by the Mentor firm to the Protege firm, and a schedule
for providing assistance and criteria for evaluation of the Protege's
success in meeting the goals;
-------
Identify individual contracts in which there will be a Mentor-
Protege relationship and, in general terms, the type of training
program that will coincide with the contracts' periods of
performance;
In the event EPA exercises its options to extend the contract
period, the parties can agree to continue the Mentor-Protege
relationship for the contract;
If additional contracts are awarded to the prime contractor,
and there is to be a continued Mentor-Protege relationship,
then the Mentor-Protege agreement may be amended and
submitted to OSDBU;
Additional terms and conditions as may be agreed upon by both
parties;
Procedures for the Mentor and Protege firm to terminate the
Mentor-Protege agreement for cause which provide:
The firm seeking to terminate for cause shall issue a notice of
proposed termination specifying its justification for terminat-
ing the agreement for cause;
The firm receiving such notice shall have 30 days to respond
to the proposed termination, and may rebut any findings
believed to be erroneous and offer a remedial program;
Upon prompt consideration of the firm's response, the firm
seeking to terminate for cause shall either withdraw the notice
of proposed termination and continue the Mentor-Protege
relationship or issue a notice of termination;
A copy of any termination notice shall be sent by the Mentor
firm to OSDBU, the appropriate project officer, and the
contracting officer;
Termination of Mentor-Protege agreement shall not impair the obliga-
tions of the Mentor firm to perform pursuant to its contractual obliga-
tions under government contracts and subcontracts. Termination of the
Mentor-Protege agreement shall not impair the obligations of the
Protege firm to perform pursuant to the contractual obligations under
any contract awarded to the Protege firm by the Mentor firm.
-------
The Mentor-Protege agreement may provide for the Mentor firm to
furnish any or all other types of developmental assistance such as:
• General business management, including organizational manage-
ment and personnel management, marketing, business develop-
ment and overall business planning;
Engineering and technical matters such as production, inventory
control, quality assurance; and
Any other assistance designed to develop the capabilities of the
Protege firm under the developmental program.
Costs incurred to negotiate or consummate a Mentor-Protege agree-
ment and to carry out the terms for such an agreement are incurred by
both firms at their own risk. EPA will not reimburse such costs.1
A Mentor firm may not require a SDB concern to enter into a Mentor-
Protege agreement as a condition for being awarded a subcontract by
the Mentor firm.
INCENTIVE FOR PROGRAM PARTICIPATION
As partner firms learn from one another and develop an effective
working relationship, their combined efforts in seeking and performing
profitable ventures will benefit both firms. Nonetheless, the EPA
recognizes that full participation in the Program will place special
demands on the Mentor firm. The Mentor's active participation in the
Program demonstrates both a commitment to achieve the goal of its
contractual subcontracting plan and a commitment to help the EPA
achieve its goal to encourage greater participation of SDBs in EPA's
contracting. This commitment will be recognized in determining the
Mentor's performance fee.
The performance fee plan in all performance fee contracts serving
OS WER and OAR will include provisions for the evaluation of the
contractor's performance in promoting the participation of SDBs in
EPA contracting. A criterion in assessing that performance will be the
firm's decision to actively participate in the Mentor-Protege Program.
1 The issue of reimbursing Mentor firms for costs incurred during the Mentor-Protege
arrangement was brought up by potential Program participants in the September 9, 1992
Mentor-Protege Program Workshop. This issue has been re-evaluated by EPA. At this
time, however, due to legal constraints regarding the administration of contracts, Mentor
firms cannot be reimbursed for costs incurred reladng to the Mentor-Protege Program.
-------
The OSDBU will evaluate the contractor's performance as a member of
the Performance Evaluation Board. (See 48 CFR 1516-404) The
evaluation will consider the following:
• What specific actions has the contractor taken during this evalua-
tion period to increase the participation of the SDBs as subcontrac-
tors and suppliers?
What specific actions has the contractor taken during this evalua-
tion period to promote a mutually beneficial relationship with
SDBs?
• What specific actions has the contractor taken during this evalua-
tion period to develop the technical and corporate administrative
expertise of the SDBs?
What specific actions has the contractor taken during this evalua-
tion period to aid in the achievement of the socioeconomic goal(s)
for SDBs in the program media supported under this contract?
To what extent has the firms participation in the Mentor-Protege
Program resulted in the Protege receiving competitive contract(s)
and subcontract(s) from private firms and agencies other than the
Mentor?
• To what extent has the Protege met the developmental objectives
in the agreement?
To what extent has the Prime satisfied its (15%) goal?2
REPORTING REQUIREMENTS
AND PROGRAM REVIEWS
Mentor firms shall report on the progress made under active Mentor-
Protege agreements semi-annually, including an attachment to their SF
295 providing:
• The number of active Mentor-Protege agreements in effect; and
2 This point was added as a result of the September 9, 1992 Mentor-Protege Work-
shop. Active and meaningful participation in the Mentor-Protege Program will be
considered in evaluating the Mentor firm's efforts to comply with its contractual goals for
the utilization of small disadvantaged businesses. Performance under the Mentor-Protege
agreement will be evaluated separately.
10
-------
The progress in achieving the developmental assistance objectives
under each Mentor-Protege agreement, including whether the
objectives of the Program set forth in this Mentor-Protege plan
were met, any problem areas encountered, and any other appropri-
ate information.
The OSDBU will perform an annual review of the progress and
accomplishments of the Program and each Program participant.
THE ROLE OF OSDBU
OSDBU as lead office will provide guidance, information on Program
procedures, and direction prior to and during Program participation.
The RTF Contracts Office and the Cincinnati Contracts Office, along
with OSDBU, will serve as the Agency experts.
OSDBU may, upon request, assist the Mentor with recommendations of
Protege firms. The recommendations will be given in coordination
with the U.S. SBA and the U.S. EPA and the U.S. Department of
Commerce Minority Business Development Agency. OSDBU does not
endorse or guarantee the performance of any firms recommended.
An OSDBU representative will serve on the Performance Evaluation
Board for each covered contract to provide input relative to the quality
of assistance provided by the Mentor.
OSDBU will be responsible for public relations and assuring that the
Program is promoted at all appropriate levels within the public and
private sectors. This will be accomplished by developing brochures,
pamphlets, and all other written materials essential to promoting an
Agency program. OSDBU will also have the responsibility for
initiating briefings to EPA officials, contractors, the general public, and
other governmental officials.
OSDBU will coordinate and initiate an awards ceremony for outstand-
ing accomplishments in the Program. As appropriate, OSDBU will
utilize trade journals and associations to publicize the Program's
success.
OSDBU will oversee the overall monitoring and implementation of the
Program along with the Small Business Specialist at the RTP Contracts
Office and the Small Business Specialist at the Cincinnati Contracts
Office.
11
-------
OSDBU will refine and improve the Mentor-Protege Program as
appropriate based on reports received from both the Mentor and
Protege firms. Such requirements and improvements may consist of
extension of the Program to include other contracting methods and
EPA regional offices.
OSDBU will contact Mentor and Protege firms to ascertain success in
the Program and to validate performance review findings.
OSDBU will be responsible for assessing whether objectives of the
Program have been met prior to the "normal" 5 year period, and
determine if the Protege should be given an early graduation from the
Program.
CONCLUSION
The EPA is strongly committed to implementing a successful Mentor-
Protege Program directed at aiding SDBs to become more actively
involved in all areas of the Agency's contracting activities to the
maximum extent practical. The accomplishment of this Program will
be highlighted in an annual report submitted to the Administrator. This
report shall include a statistical analysis of the number of participants,
goal achievements, and overall impact.
The annual performance review and evaluation and periodic updating
will determine the need for further modification and/or revisions.
FOR MORE INFORMATION
Senior Program Manager for Direct Procurement
Office of Small and Disadvantaged Business Utilization
U.S. Environmental Protection Agency
401 M Street SW (A-149C)
Washington, DC 20460
Telephone: (703) 305-7305
Fax: (703)305-6462
U.S. Envi.-o iotection Agency
Region 5, L. , .«-•',_• 12 J)
77 West Jackson Boulevard, 12th Floor
Chicago, IL 60604-3590
*US GOVERNMENT PRINTING OFFICE 1993-0-339-064
12
-------
-------
------- |