New Mentor Protégé Programs in HHS and GSA

The Department of Health and Human Services recently proposed and the General Service Administration recently issued final rules establishing mentor-protégé programs to encourage prime contractors to help small businesses qualify for its contracts and subcontracts. Both departments state the purposes are to increase the base of small businesses eligible for prime contracts and subcontracts, increase actual amount of such contracts and to foster long term business relationships between prime and small business entities. The form of mentor assistance to protégés include financial management and overall organizational management and planning as well as technical assistance, rent-free use of facilities or equipment, loans, property, temporary assignment of personnel for training purposes and any other “mutually beneficial assistance.” Incentives for mentors may include additional evaluation points toward award of contracts, credit toward attaining subcontracting goals and annual nonmonetary awards for supporting protégés. Mentors may have more than one protégé where protégés must be small business concerns, independently owned and operated and not dominate in their fields (Fed. Reg. Nos. 36487 for HHS and 41060 for GSA).

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