Nationwide Help For SBA Mentor Protege Program Applications and With Small Business Compliance.
Entering into the DOD and SBA small business mentor protege program and establishing compliance 13 CFR 125.9 CFR 124.520 under 33 CFR 125.9, 13 CFR 124.520 means that you must comply with some complicated regulations.
When government contractors merely copy and paste 8a mentor protege agreements without understanding their legal obligations, they can become fertile ground for a challenge in a size appeal at the SBA Office of Hearings and Appeals.
HELP FOR LARGE MENTORS AND SMALL BUSINESS PROTEGES.
We help DOD small businesses and larger federal contractors to form legally compliant mentoring business relationships and develop compliance SBA applications that also meet the requirements of 13 CFR 121.103 and 13 CFR 124.520. When businesses are involved in Small Business Administration size protests and size appeal litigation, our government contracting attorneys provide aggressive legal representation.
SBA Mentor Protege Program Legal & Consulting Services
- Drafting Agreements
- 8a agreement compliance and disputes
SBA Mentor Protege Application help
- Statutory compliance with SBA new rules
- Disputes and litigation regarding mentor protege agreements
- Litigation of compliance violations and disputes
- Resolving allegations of affiliation
- SBA mentor protege program consulting services
- Compliance with JV and work percentages
- Assessing roles and responsibilities under the program
- Business development and government contract consulting
- Litigation regarding mentor protege relationships
Qualifications: For companies entering into an SBA Mentor Protege Program relationship, our government contract lawyers help companies to qualify for a small business set-aside procurement and meet the legal requirements of 13 CFR 125.9 and 13 CFR 124.520 of becoming a mentor.
SBA 8a Mentor Program Qualifications CFR 125.9: To meet the program’s protege definition, meaning and SBA Small Business Mentorship Program requirements, under SBA small business programs protégés must either:
- qualify as small for the size standard corresponding to their primary North American Industry Classification System (NAICS) code; or
- qualify as small under their secondary NAICs code(s) and identify that they are seeking business development assistance under that specific secondary code.
As of November 16, 2020, the 8a mentor protege program joint venture and the All Small Mentor-Protégé program have merged into one SBA Mentor-Protégé Program (MPP). Both former programs helped eligible small businesses (protégés) gain capacity and win government contracts through business partnerships with more experienced companies (mentors).
To meet the SBA’s definition of being a mentor, the proposed company must meet the following requirements.
- It must demonstrate that it is capable of carrying out its responsibilities to assist the protégé firm under the proposed mentor-protégé agreement;
- That it does not appear on the Federal list of debarred or suspended contractors; and
- That it can impart value to a protégé firm due to lessons learned and practical experience gained or through its knowledge of general business operations and government contracting.
Under the protege definition and to be a protégé firm, the SBA mentor protege application must meet several conditions.
- The firm must be a participant in the 8(a) BD Program.
- The firm must meet at least one of the following three conditions:
- Be in the developmental stage of the 8(a) BD Program, OR
- Have never received an 8(a) contract, OR
- Be less than half the size of the small business size standard corresponding to its primary NAICS code.
- The 8(a) firm must
- Be in good standing with SBA Program requirements, AND
- Be current with all SBA reporting requirements.
- Protégés may generally have only one mentor at a time.
- However, SBA may authorize a second mentor after reviewing of the request.
Purpose : As Per the GPO’s website, the SBA Mentor Protege Program is designed to the capabilities of protégé firms by requiring approved mentors to provide business development assistance to protégé firms and to improve the protégé firms’ ability to successfully compete for federal contracts. This assistance may include technical and/or management assistance; financial assistance in the form of equity investments and/or loans; subcontracts (either from the mentor to the protégé or from the protégé to the mentor); trade education; and/or assistance in performing prime contracts with the Government through joint venture arrangements. Mentors are encouraged to provide assistance relating to the performance of contracts set aside or reserved for small business so that protégé firms may more fully develop their capabilities.
Certification basics: Under the protege definition, small businesses may self-certify that they qualify as small for their primary or secondary NAICs code(s). If your business does not meet the size standard under its primary code and is seeking to qualify as a protégé under a secondary NAICs code, it must demonstrate how the mentor protege relationship is a logical business progression that will develop and expand their current capabilities.
Calculation of receipts: When considering SBA mentor protege agreement applications for the program, SBA considers the distribution of receipts, employees and costs of doing business among the different industries in which business operations occurred for the most recently completed fiscal year, in determining the primary industry in which a concern or a concern combined with its affiliates is engaged, the SBA may consider other factors such as the distribution of patents, contract awards, and assets.
The SBA will not approve a mentor-protégé relationship in a secondary code in which the business has no prior experience.
Companies bidding on DOD federal contracts that are not part of the 8(a) Program must extremely careful. Since the SBA is not required to review small business mentoring for non-8a set-asides, contractors can be more subject to litigation and size appeals. At Watson & Associates, our government contract law lawyers help companies to still meet the requirements of 13 CFR 124.520 for procurements not in the 8(a) Program.
Mentor Protege Joint Venture Requirements
When the two parties enter into a mentor protege relationship, there must also be a joint venture agreement between the companies. This avoids affiliation allegations when approved by the SBA. The two companies will qualify as a small business for any federal government procurement for which the protégé individually qualifies as small. If the protege happens to exceed its small business size under the NAICS code under which SBA approved its mentor-protégé relationship, then any joint venture between the mentor and protégé will not be small as to qualify for any additional government contracts or subcontracts as a small business for any NAICS code having the same or lower size standard. The mentor protege joint venture relationship can seek additional procurement opportunities for NAICS codes having a small business size standard for which the protégé continues to qualify as small.
Benefits of The SBA All Small Business Mentor Protege Program
The SBA has launched the new SBA All Small Mentor Protege Program where the protégé small business can legally get more valuable business development from large business mentors (small business mentors are also eligible).
Common areas that government contractors can get assistance in the form of unique contributions under the SBA Small Business Mentor Protégé Program include:
- Guidance on internal business management systems, accounting, marketing, manufacturing, and strategic planning
- Financial assistance such as equity investments, loans, and construction bonding
- Help to navigate federal contract bidding, acquisition, and performance process using 13 CFR 124.520
- Education about international trade, strategic planning, and finding markets
- Business development, including strategy and identifying contracting and teaming partnership opportunities
- General and administrative assistance, like human resource sharing or security clearance support
When your , you can form a joint venture and move ahead to get government contracts that the small business qualifies.
Call Watson’s SBA Mentor Protege Joint Venture Agreement Lawyers
If you are involved in a small business DOD mentor protege arrangement or need legal help or SBA mentor protege program consulting services, call our government contract attorneys at 1-866-601-5518 for immediate help.