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DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement to implement section 872 of the National Defense Authorization Act for Fiscal Year 2020, which reauthorizes and improves the DoD Mentor-Protege Program.

Statement of Need:

This rule is necessary to amend the DFARS to implement the reauthorization of and amendments to the Mentor Protégé Program provided by section 872 of the National Defense authorization act (NDAA) of Fiscal Year (FY) 2020.  

Summary of the Legal Basis:

The legal basis for this rule is section 872 of the NDAA for FY 2020 (Pub. L. 116-92).

Alternatives:

There are no alternatives that would meet the requirements of the statute. 

Anticipated Costs and Benefits:

This rule is expected to be of significant benefit to small businesses accepted as protégés under the program, as well as the firms that mentor such small businesses, by bringing more small businesses into DoD's supply chain.  DoD’s Mentor-Protégé Program is the oldest continuously operating Federal mentor-protégé program in existence. DoD’s Mentor-Protégé Program has successfully helped more than 190 small businesses fill unique niches and become part of the military’s supply chain.  Many mentors have made the Program an integral part of their sourcing plans. Protégés have used their involvement in the Program to develop technical capabilities. Successful mentor-protégé agreements provide a winning relationship for the protégé, the mentor, and DoD.

Risks:

Failure to implement section 872 and extend DoD's Mentor-Protégé Program would significantly inhibit the Department's ability to provide incentives for DoD contractors to assist small businesses in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts.