Mentor Protege Agreements by rmg15963


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      Jennie Montgomery
Business Development Specialist
    What is the SBA Mentor-
      Protégé Program?
•   The SBA Mentor-Protégé Program is a program
    designed to encourage approved Mentors to
    provide various forms of assistance to eligible 8(a)
    Participants as Protégés established by the
    Mentor-Protégé Agreement (MPA).
What is the Purpose of the SBA
 Mentor-Protégé Program?
•   The purpose of the Mentor-Protégé relationship is
    to enhance the capabilities of the protégé and to
    improve its ability to successfully compete for
    Federal contracts.
The various assistance that a Mentor
 may provide to a Protégé include:
•   Technical and/or management assistance;
•   Financial assistance in the form of equity
    investments, and/or loans;
•   Offerings of subcontracts;
•   Assistance in the performance of prime contracts
    with the Federal government in the form of Joint
    Venture arrangements.
Eligibility & Qualifications
Eligibility for participation in the Mentor-Protégé
    Program is subject to the approval of the SBA.
•   Mentors: To be eligible as a Mentor, a concern must
    demonstrate a commitment and the ability to assist
    developing 8(a) Participants. The concern may have
    graduated from the 8(a) Program, or be in the Transitional
    Stage of the program. Other small businesses or large
    businesses with the same commitment and ability may also
    qualify to serve as Mentors.
To qualify as a Mentor, a concern
must demonstrate that it:
•   Possesses a favorable financial health, including profitability
    for at least the last two years;
•   Possesses a good character;
•   Does not appear on the Federal list of Debarred or
    Suspended Contractors; and
•   Can impart value to a Protégé firm due to lessons learned
    and practical experience gained through the 8(a) Program,
    or through its general knowledge of government contracting.
To initially qualify as a Protégé, a
firm must:
•   Be in the Developmental Stage of the 8(a) Program;
•   Have NOT yet received an 8(a) contract; or
•   Have a size that is less than half the Size Standard
    corresponding to its primary NAICS code.
•   The firm must also be in good standing in the 8(a) Program,
    i.e., the firm must not have termination or suspension
    proceedings against it, and is up-to-date with all reporting
    requirements .
The Benefits of Participating in
the Mentor-Protégé Program
•   Expertise, resources and capabilities of the Mentor are made
    available to the 8(a) Participant Protégé.
•   To aid the Protégé to raise capital (Mentors may own an equity
    interest up to 40% in the Protégé firm.).
•   No determination of affiliation or control may be found between a
    protégé firm and its mentor based on the mentor/protégé
    agreement or any assistance provided pursuant to the agreement.
•   The Protégé, due to the additional capabilities gained from the
    Mentor, may better qualify for other assistance as a small business,
    including SBA financial assistance.
More Benefits of Participating
in the Mentor-Protégé Program
   A Mentor and Protégé may joint venture as a small business for any
    government procurement, including procurements with a dollar value
    less than half the size standard code and 8(a) sole source contracts,
    provided the protégé qualifies as a small for the procurement and,
    for purposes of 8(a) sole source requirements, the protégé has not
    reached the dollar limit set forth in § 124.519.
   --- Revenue-based primary NAICS code at time of program entry,
          the limit is five times the size standard or $100 million
          whichever is less.
   --- Employee-based primary NAICS code is $100.0 million.
       Terms & Conditions for
       Program Participation
•   The SBA must approve both Mentors and Protégés in order
    to participate in the Program.
•   The Mentor and Protégé firms must enter into a written
    Agreement setting forth the needs of the Protégé and the
    assistance to be provided by the Mentor. The Agreement
    must be approved by the SBA; and thereafter, will be
    reviewed annually for continuation. All changes to Mentor-
    Protégé Agreements must be approved in advance.
   Terms & Conditions for
Program Participation Cont’d
•   The Agreement must provide that either the Protégé or the
    Mentor may terminate the relationship with 30-days advance
    notice to the other party and to SBA.
•   A Protégé firm may have only one Mentor at a time.
•   Generally, a Mentor will have no more than one Protégé at a
    time. The SBA must authorize any additional Protégés.
Evaluating the Mentor-Protégé
•   In its annual updated, the Protégé must report to SBA for
    the protégé’s preceding program year:
1. All technical and/or management assistance provided by the
   Mentor to the Protégé;
2. All loans to and/or equity investments made by the Mentor
   in the Protégé;
3. All subcontracts awarded to the Protégé by the Mentor, and
   the value of each subcontract;
  Further Evaluating the
Mentor-Protégé Relationship
4. All Federal contracts awarded to the Mentor-Protégé
   relationship ;
5. A narrative describing the success such assistance has had in
   addressing the development needs of the Protégé and
   addressing any problems encountered. All technical and/or
   management assistance provided by the Mentor to the
Mentor-Protégé Relationship
   Annual Requirements
1. The Protégé must annually certify to SBA whether there has
   been any change in the terms of the Agreement.
2. A copy of the Mentor’s and Protégé’s request to extend their
   Mentor-Protégé Agreement for another year to include any
   changes to the initial MPA; i.e., additional weaknesses to be
   addressed and how to be addressed by the Mentor.
3. A written narrative describing any problems encountered and
   how they were resolved since the Protégé’s last annual
   review (or since the Mentor-Protégé Agreement was
   approved, if less than a year).
Questions & Answers
       U.S. Small Business
 Dallas/Fort Worth District Office
4300 Amon Carter Blvd., Suite 114
      Fort Worth, TX 76155
         (817) 684-5500

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