Set-Aside Alert exclusive:

DOD M-P final rule

In effect on Oct. 24

      The Defense Dept. issued a final rule on Aug. 25 to extend and modify the Defense Mentor-Protege program, including limiting participation to two years, down from three years.

      The final rule implements provisions of Section 872 of the National Defense Authorization Act for Fiscal 2020, including language on the participation term.

      Features of the final rule include:

• Extending the date for entering into a new mentor-protege agreement from Sept. 30, 2018 to Sept. 30, 2024;
• Extending the date for reimbursement of mentors;
• Extending the date for a mentor to receive credit toward small business subcontracting goals;
• Limiting participation to two years; and
• Expanding eligibility for protege firms by aligning disadvantaged small business eligibility with the size standard used in the firm’s primary NAICS code.

      In the past, a small disadvantaged business seeking to be a protege was required to have less than half the size standard corresponding to its primary NAICS code.

      The final rule, which did not deviate from the proposed rule, goes into effect on Oct. 24.

      The final rule also gave an update on participation in the DOD mentor-protege program.

      The number of ongoing DoD mentor-protégé agreements in fiscal 2018 was 90. However, due to a lack of authority for new agreements there were no new agreements made in fiscal 2019 or 2020. Ongoing agreements dropped to 86 in fiscal 2019 and 2020, and to 57 in June 2021, the rule stated.

      In 2021, new agreements appeared. “As of June 2021, there were 57 ongoing agreements, 50 new agreements, and 12 expiring agreements,” the final rule states. It was not immediately clear how the new agreements were authorized since authorization of new agreements expired in Sept. 2018 and had not been renewed until the current final rule. Set-Aside Alert is following up.

      DOD estimates 66 new agreements will be entered into in fiscal 2022, 82 in fiscal 2023, and 98 in fiscal 2024.

More information:
Final rule: https://bit.ly/3wTOaOm

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