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H.R.3985: Building Better Business Partnerships Act of 2012

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Minority Business Development Agency

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Bill Jaffe
May 9, 2012
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Currently, some but not all federal agencies have mentor-protégé programs. When you’re procuring a contract with one of these agencies, being in a mentor-protégé relationship has several benefits and functions. Often the agency will give more credit to a mentor-protégé team than to a regular team, because there’s an established relationship and they know everyone is committed to sharing with each other in an appropriate fashion.

Here are three important aspects of the mentor-protégé process:

1) The mentor-protégé programs are unique to each agency, and therefore not portable. You can’t claim the benefits or use the benefits in an agency that didn’t sponsor you.

For example, TAPE, LLC has a mentor-protégé relationship with a small service-disabled 8(a) business called JAB Innovative Solutions. Our relationship was established through the GSA, and so doesn’t apply to any other agency. So if JAB and TAPE were to bid on, let’s say, an opportunity at HHS (Health and Human Services), we wouldn’t get credit for our mentor-protégé relationship

2) Only the Department of Defense reimburses mentors for training activities. The larger business, as the mentor, can define the training or other help they’re going to give to the smaller business, and they will get reimbursed for this just as if it were a contract with a customer. It is a very good thing that the government will pay for these benefits to the small business. However, none of the other agency mentor-protégé programs have money attached to them.

3) A joint venture between a mentor (large business) and a protégé (small business) takes on the designation of the small business, e.g., 8(a). A joint venture is an actual corporation registered in the CCR, but it’s owned by multiple parties. Ordinarily, joint ventures that include a large business take on the designation of the large business, and therefore would not be entitled to any of the money or opportunities set aside for small business. (We’ll speak further about the pros and cons of joint venture agreements in another post.)

If H.R.3985: Building Better Business Partnerships Act of 2012 is passed, a working committee under the SBA’s ownership would seek to establish how mentor-protégé agreements work, and to ensure portability of these agreements between agencies.

This bill was co-sponsored by Rep. Bobby Schilling (R-IL), Subcommittee on Contracting & Workforce Ranking Member and Rep. Judy Chu (D-CA).

Bill Jaffe is a co-founder and the Senior Vice President/General Manager for TAPE, LLC.

Related posts:

  1. The Small Business Advocate Act 2012
  2. Bill H.R. 3850 – Government Efficiency through Small Business Contracting Act of 2012
  3. H.R. 3893: Subcontracting Transparency and Reliability (STAR) Act of 2012
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The All-Small Mentor-Protégé Program

SBA had a well-established mentor-protégé program (MPP) for SBA 8(a) certified firms but lacked an MPP program for other small business concerns and specifically, one for specialized certified concerns such as WOSB, EDWOSB, SDVOSB, & HubZone. The 2010 Jobs Act and 2013 NDAA gave SBA the authorization to address this by establishing an all-encompassing mentor-protégé program. Ms. Sandi Clifford, deputy director of the All Small Mentor-Protégé Program (ASMPP), visited the Mid-Tier Advocacy (MTA) earlier this year to discuss the program. Here are some of the highlights of this candid and informative discussion: As Ms. Clifford explained, mentor services to protégés include: • Management and technical assistance (internal business management systems) • Financial assistance (in the form of equity investments and/or loans) • Contracting assistance (contracting processes, capabilities acquisitions and performance) • International trade education (learn how to export, international trade business plan, finding markets) • Business development assistance (strategy, finding contracting and partnership opportunities) • General and/or administrative assistance (business processes and support) As administrators of the program, SBA provides: • Central HQ as opposed to 8(a) distributive model • Online application – certify.sba.gov • Online course tutorial requirement • Annual review and evaluation • Template agreements, i.e., MPA (Mentor-Protégé Agreement) Other All-Small Mentor-Protégé Program (ASMPP) details: • A protégé may generally only have one mentor at a time; SBA may approve a second (two is the maximum) where no competition exists, or if the protégé registers under a new NAICS or otherwise requires new mentor skills.  • Both protégé and mentor must be for-profit (with exception of protégé being an agriculture cooperative). • A mentor may have no more than three protégés at same time (no lifetime limit). • A participant can be both a protégé and mentor at the same time, if there is no competition or conflict. • The ASMPP is self-certifying and is open to businesses who qualify as small in their primary NAICS code, or who are seeking business development assistance in a secondary NAICs where they also qualify as small.  • SBA will not authorize MPAs in second NAICS in which firm has never performed any work; or where firm would only bring “small” status to Mentor and nothing else. • Existing 8(a) firms in last 6 months of the 8(a) program may transfer their MPA to the ASMPP via the online application process. Coordinate with 8(a) office to fine tune the process but there is no reapplication required. • Application requirements include upload of business plan, but no financial statements or tax returns. • JV agreements: ASMPP will not review and approve joint venture agreements. How to apply for the ASMPP: • Applicants are required to register in the System for Award Management (SAM) prior to submitting their mentor/protégé application. • Complete your business profile in certify.SBA.gov. • Evaluate and select your mentor prior to applying. This is not a matching program. SBA will not find a mentor for you. • Begin the ASMPP application process. • Protégés and mentors must complete the online tutorial and have their certificate of completion and all other required documents ready for upload Thank you to Sandi Clifford, Deputy Director, All Small Mentor-Protégé Program, for this helpful overview. TAPE has mentored several small businesses over it’s life as a large business (we’re large in some NAICS codes, though still small in others) and it has been gratifying, satisfying, and integral to our success. As protégés ourselves, we have benefitted from working with some really classy large businesses, and have also had the experience of being a protégé and really getting no tangible benefits. We are currently working with two small businesses, and negotiating ASMPP agreements. You can learn more about the ASMPP on the SBA site. To join MTA and attend future events like this one, please visit www.midtier.org.
Bill Jaffe
August 23, 2017
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