Defense Federal Acquisition Regulation Supplement (DFARS) Appendix I

Defense Federal Acquisition Regulation Supplement
Appendix I—Policy and Procedures for the DoD Pilot Mentor-Protege Program

POLICY AND PROCEDURES FOR THE
DOD PILOT MENTOR-PROTEGE PROGRAM
(Revised May 24, 2005)
I-100 Purpose.
(a) This Appendix I to 48 CFR Chapter 2 implements the Pilot Mentor-Protege
Program (hereafter referred to as the “Program”) established under Section 831 of Pub.
L. 101-510, the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C.
2302 note). The purpose of the Program is to—
(1) Provide incentives to major DoD contractors, performing under at least one
active approved subcontracting plan negotiated with DoD or another Federal agency, to
assist protege firms in enhancing their capabilities to satisfy DoD and other contract
and subcontract requirements;
(2) Increase the overall participation of protege firms as subcontractors and
suppliers under DoD contracts, other Federal agency contracts, and commercial
contracts; and
(3) Foster the establishment of long-term business relationships between
protege firms and such contractors.
(b) Under the Program, eligible companies approved as mentor firms will enter into
mentor-protege agreements with eligible protege firms to provide appropriate
developmental assistance to enhance the capabilities of the protege firms to perform as
subcontractors and suppliers. DoD may provide the mentor firm with either cost
reimbursement or credit against applicable subcontracting goals established under
contracts with DoD or other Federal agencies.
(c) DoD will measure the overall success of the Program by the extent to which the
Program results in—
(1) An increase in the dollar value of contract and subcontract awards to
protege firms (under DoD contracts, contracts awarded by other Federal agencies, and
commercial contracts) from the date of their entry into the Program until 2 years after
the conclusion of the agreement;
(2) An increase in the number and dollar value of subcontracts awarded to a
protege firm (or former protege firm) by its mentor firm (or former mentor firm); and
(3) An increase in the employment level of protege firms from the date of entry
into the Program until 2 years after the completion of the agreement.
(d) This policy sets forth the procedures for participation in the Program applicable
to companies that are interested in receiving—
(1) Reimbursement through a separate contract line item in a DoD contract or
a separate contract with DoD; or

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(2) Credit toward applicable subcontracting goals for costs incurred under the
Program.
I-101 Definitions.
I-101.1 Historically Black college or university.
An institution determined by the Secretary of Education to meet the requirements of 34
CFR 608.2. The term also means any nonprofit research institution that was an
integral part of such a college or university before November 14, 1986.
I-101.2 Minority institution of higher education.
An institution of higher education with a student body that reflects the composition
specified in section 312(b)(3), (4), and (5) of the Higher Education Act of 1965 (20 U.S.C.
1058(b)(3), (4), and (5)).
I-101.3 Eligible entity employing the severely disabled.
A business entity operated on a for-profit or nonprofit basis that—
(a) Uses rehabilitative engineering to provide employment opportunities for
severely disabled individuals and integrates severely disabled individuals into its
workforce;
(b) Employs severely disabled individuals at a rate that averages not less than 20
percent of its total workforce;
(c) Employs each severely disabled individual in its workforce generally on the basis
of 40 hours per week; and
(d) Pays not less than the minimum wage prescribed pursuant to section 6 of the
Fair Labor Standards Act (29 U.S.C. 206) to those employees who are severely disabled
individuals.
I-101.4 Severely disabled individual.
An individual who has a physical or mental disability which constitutes a substantial
handicap to employment and which, in accordance with criteria prescribed by the
Committee for the Purchase from the Blind and Other Severely Handicapped
established by the first section of the Act of June 25, 1938 (41 U.S.C. 46; popularly
known as the “Javits-Wagner-O’Day Act”) is of such a nature that the individual is
otherwise prevented from engaging in normal competitive employment.
I-101.5 Small disadvantaged business (SDB).
A small business concern that is—
(a) An SDB concern as defined at 219.001, paragraph (1) of the definition of "small
disadvantaged business concern";
(b) A business entity owned and controlled by an Indian tribe as defined in Section
8(a)(13) of the Small Business Act (15 U.S.C. 637(a)(13)); or
(c) A business entity owned and controlled by a Native Hawaiian Organization as
defined in Section 8(a)(15) of the Small Business Act.

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I-101.6 Women-owned small business.
A small business concern owned and controlled by women as defined in Section
8(d)(3)(D) of the Small Business Act (15 U.S.C. 637(d)(3)(D)).
I-101.7 HUBZone small business.
A qualified HUBZone small business concern as determined by the Small Business
Administration in accordance with 13 CFR Part 126.
I-101.8 Service-disabled veteran-owned small business.
A small business concern owned and controlled by service-disabled veterans as defined
in Section 8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)).
I-102 Participant eligibility.
(a) To be eligible to participate as a mentor, an entity must be—
(1) An entity other than small business, unless a waiver to the small business
exception has been obtained from the Director, Small and Disadvantaged Business
Utilization (SADBU), OUSD(AT&L), that is a prime contractor to DoD with an active
subcontracting plan; or
(2) A graduated 8(a) firm that provides documentation of its ability to serve as
a mentor; and
(3) Approved to participate as a mentor in accordance with I-105.
(b) To be eligible to participate as a protege, an entity must be-(1) An SDB, a women-owned small business, a HUBZone small business, a
service-disabled veteran-owned small business, or an eligible entity employing the
severely disabled;
(2) Eligible for the award of Federal contracts; and
(3) A small business according to the Small Business Administration (SBA) size
standard for the North American Industry Classification System (NAICS) code that
represents the contemplated supplies or services to be provided by the protege firm to
the mentor firm if the firm is representing itself as a qualifying entity under the
definition at I-101.5(a) or I-101.6.
(c) Mentor firms may rely in good faith on a written representation that the entity
meets the requirements of paragraph (a) of this section, except for a protege's status as
a small disadvantaged business concern (see FAR 19.703(b)).
(d) If at any time the SBA (or DoD in the case of entities employing the severely
disabled) determines that a protege is ineligible, assistance that the mentor firm
furnishes to the protege after the date of the determination may not be considered
assistance furnished under the Program.
(e) A company may not be approved for participation in the Program as a mentor
firm if, at the time of requesting participation in the Program, it is currently debarred

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or suspended from contracting with the Federal Government pursuant to FAR Subpart
9.4.
(f) If the mentor firm is suspended or debarred while performing under an approved
mentor-protege agreement, the mentor firm—
(1) May continue to provide assistance to its protege firms pursuant to
approved mentor-protege agreements entered into prior to the imposition of such
suspension or debarment;
(2) May not be reimbursed or take credit for any costs of providing
developmental assistance to its protege firm, incurred more than 30 days after the
imposition of such suspension or debarment; and
(3) Must promptly give notice of its suspension or debarment to its protege firm
and the cognizant Component Director, SADBU.
I-103 Program duration.
(a) New mentor-protege agreements may be submitted and approved through
September 30, 2010.
(b) Mentors incurring costs prior to September 30, 2013, pursuant to an approved
mentor-protege agreement may be eligible for—
(1) Credit toward the attainment of its applicable subcontracting goals for
unreimbursed costs incurred in providing developmental assistance to its protege
firm(s);
(2) Reimbursement pursuant to the execution of a separately priced contract
line item added to a contract; or
(3) Reimbursement pursuant to entering into a separate DoD contract upon
determination by the cognizant Component Director, SADBU, that unusual
circumstances justify using a separate contract.
I-104 Selection of protege firms.
(a) Mentor firms will be solely responsible for selecting protege firms. Mentor firms
are encouraged to identify and select concerns that are defined as emerging SDB,
women-owned small business, HUBZone small business, service-disabled veteranowned small business, or an eligible entity employing the severely disabled.
(b) The selection of protege firms by mentor firms may not be protested, except as in
paragraph (c) of this section.
(c) In the event of a protest regarding the size or disadvantaged status of an entity
selected to be a protege firm as defined in I-101.5, the mentor firm must refer the
protest to the SBA to resolve in accordance with 13 CFR Part 121 (with respect to size)
or 13 CFR Part 124 (with respect to disadvantaged status).

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(d) For purposes of the Small Business Act, no determination of affiliation or control
(either direct or indirect) may be found between a protege firm and its mentor firm on
the basis that the mentor firm has agreed to furnish (or has furnished) to its protege
firm, pursuant to a mentor-protege agreement, any form of developmental assistance
described in I-107(f).
(e) A protege firm may have only one active DoD mentor-protege agreement.
I-105 Mentor approval process.
(a) An entity seeking to participate as a mentor must apply to the cognizant
Component Director, SADBU, to establish its initial eligibility as a mentor. This
application may accompany its initial mentor-protege agreement.
(b) The application must provide the following information:
(1) A statement that the company is currently performing under at least one
active approved subcontracting plan negotiated with DoD or another Federal agency
pursuant to FAR 19.702, and that the company is currently eligible for the award of
Federal contracts or a statement that the entity is a graduated 8(a) firm.
(2) A summary of the company's historical and recent activities and
accomplishments under its small and disadvantaged business utilization program.
(3) The total dollar amount of DoD contracts and subcontracts that the
company received during the 2 preceding fiscal years. (Show prime contracts and
subcontracts separately per year.)
(4) The total dollar amount of all other Federal agency contracts and
subcontracts that the company received during the 2 preceding fiscal years. (Show
prime contracts and subcontracts separately per year.)
(5) The total dollar amount of subcontracts that the company awarded under
DoD contracts during the 2 preceding fiscal years.
(6) The total dollar amount of subcontracts that the company awarded under
all other Federal agency contracts during the 2 preceding fiscal years.
(7) The total dollar amount and percentage of subcontracts that the company
awarded to all SDB, women-owned small business, HUBZone small business, and
service-disabled veteran-owned small business firms under DoD contracts and other
Federal agency contracts during the 2 preceding fiscal years. (Show DoD subcontract
awards separately.) If the company presently is required to submit a Standard Form
(SF) 295, Summary Subcontract Report, the request must include copies of the final
reports for the 2 preceding fiscal years.
(8) Information on the company’s ability to provide developmental assistance to
its eligible proteges.
(c) A template of the mentor application is available at:
www.acq.osd.mil/sadbu/mentor_protege.

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(d) Companies that apply for participation and are not approved will be provided
the reasons and an opportunity to submit additional information for reconsideration.
I-106 Development of mentor-protege agreements.
(a) Prospective mentors and their proteges may choose to execute letters of intent
prior to negotiation of mentor-protege agreements.
(b) The agreements should be structured after completion of a preliminary
assessment of the developmental needs of the protege firm and mutual agreement
regarding the developmental assistance to be provided to address those needs and
enhance the protege’s ability to perform successfully under contracts or subcontracts.
(c) A mentor firm may not require a protege firm to enter into a mentor-protege
agreement as a condition for award of a contract by the mentor firm, including a
subcontract under a DoD contract awarded to the mentor firm.
(d) The mentor-protege agreement may provide for the mentor firm to furnish any
or all of the following types of developmental assistance:
(1) Assistance by mentor firm personnel in—
(i) General business management, including organizational management,
financial management, and personnel management, marketing, business development,
and overall business planning;
(ii) Engineering and technical matters such as production inventory control
and quality assurance; and
(iii) Any other assistance designed to develop the capabilities of the protege
firm under the developmental program.
(2) Award of subcontracts under DoD contracts or other contracts on a
noncompetitive basis.
(3) Payment of progress payments for the performance of subcontracts by a
protege firm in amounts as provided for in the subcontract; but in no event may any
such progress payment exceed 100 percent of the costs incurred by the protege firm for
the performance of the subcontract. Provision of progress payments by a mentor firm to
a protege firm at a rate other than the customary rate for the firm must be
implemented in accordance with FAR 32.504(c).
(4) Advance payments under such subcontracts. The mentor firm must
administer advance payments in accordance with FAR Subpart 32.4.
(5) Loans.
(6) Investment(s) in the protege firm in exchange for an ownership interest in
the protege firm, not to exceed 10 percent of the total ownership interest. Investments
may include, but are not limited to, cash, stock, and contributions in kind.

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(7) Assistance that the mentor firm obtains for the protege firm from one or
more of the following:
(i) Small Business Development Centers established pursuant to Section 21
of the Small Business Act (15 U.S.C. 648).
(ii) Entities providing procurement technical assistance pursuant to 10
U.S.C. Chapter 142 (Procurement Technical Assistance Centers).
(iii) Historically Black colleges and universities.
(iv) Minority institutions of higher education.
(e) Pursuant to FAR 31.109, approved mentor firms seeking either reimbursement
or credit are strongly encouraged to enter into an advance agreement with the
contracting officer responsible for determining final indirect cost rates under FAR
42.705. The purpose of the advance agreement is to establish the accounting treatment
of the costs of the developmental assistance pursuant to the mentor-protege agreement
prior to the incurring of any costs by the mentor firm. An advance agreement is an
attempt by both the Government and the mentor firm to avoid possible subsequent
dispute based on questions related to reasonableness, allocability, or allowability of the
costs of developmental assistance under the Program. Absent an advance agreement,
mentor firms are advised to establish the accounting treatment of such costs and to
address the need for any changes to their cost accounting practices that may result
from the implementation of a mentor-protege agreement, prior to incurring any costs,
and irrespective of whether costs will be reimbursed or credited.
(f) Developmental assistance provided under an approved mentor-protege
agreement is distinct from, and must not duplicate, any effort that is the normal and
expected product of the award and administration of the mentor firm's subcontracts.
Costs associated with the latter must be accumulated and charged in accordance with
the contractor's approved accounting practices; they are not considered developmental
assistance costs eligible for either credit or reimbursement under the Program.
I-107 Elements of a mentor-protege agreement.
Each mentor-protege agreement will contain the following elements:
(a) The name, address, e-mail address, and telephone number of the mentor and
protege points of contact;
(b) The NAICS code(s) that represent the contemplated supplies or services to be
provided by the protege firm to the mentor firm and a statement that, at the time the
agreement is submitted for approval, the protege firm, if an SDB, a women-owned
small business, a HUBZone small business, or a service-disabled veteran-owned small
business concern, does not exceed the size standard for the appropriate NAICS code;
(c) A statement that the protege firm is eligible to participate in accordance with I102(b);
(d) A statement that the mentor is eligible to participate in accordance with I-102;
(e) A preliminary assessment of the developmental needs of the protege firm;
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(f) A developmental program for the protege firm specifying the type of assistance
the mentor will provide to the protege and how that assistance will-(1) Increase the protege’s ability to participate in DoD, Federal, and/or
commercial contracts and subcontracts; and
(2) Increase small business subcontracting opportunities in industry categories
where eligible proteges or other small business firms are not dominant in the
company’s vendor base;
(g) Factors to assess the protege firm's developmental progress under the Program,
including specific milestones for providing each element of the identified assistance;
(h) An estimate of the dollar value and type of subcontracts that the mentor firm
will award to the protege firm, and the period of time over which the subcontracts will
be awarded;
(i) A statement from the protege firm indicating its commitment to comply with the
requirements for reporting and for review of the agreement during the duration of the
agreement and for 2 years thereafter;
(j) A program participation term for the agreement that does not exceed 3 years.
Requests for an extension of the agreement for a period not to exceed an additional 2
years are subject to the approval of the cognizant Component Director, SADBU. The
justification must detail the unusual circumstances that warrant a term in excess of 3
years;
(k) Procedures for the mentor firm to notify the protege firm in writing at least 30
days in advance of the mentor firm's intent to voluntarily withdraw its participation in
the Program. A mentor firm may voluntarily terminate its mentor-protege
agreement(s) only if it no longer wants to be a participant in the Program as a mentor
firm. Otherwise, a mentor firm must terminate a mentor-protege agreement for cause;
(l) Procedures for the mentor firm to terminate the mentor-protege agreement for
cause which provide that—
(1) The mentor firm must furnish the protege firm a written notice of the
proposed termination, stating the specific reasons for such action, at least 30 days in
advance of the effective date of such proposed termination;
(2) The protege firm must have 30 days to respond to such notice of proposed
termination, and may rebut any findings believed to be erroneous and offer a remedial
program;
(3) Upon prompt consideration of the protege firm's response, the mentor firm
must either withdraw the notice of proposed termination and continue the protege
firm's participation, or issue the notice of termination; and
(4) The decision of the mentor firm regarding termination for cause, conforming
with the requirements of this section, will be final and is not reviewable by DoD;

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(m) Procedures for a protege firm to notify the mentor firm in writing at least 30
days in advance of the protege firm's intent to voluntarily terminate the mentor-protege
agreement;
(n) Additional terms and conditions as may be agreed upon by both parties; and
(o) Signatures and dates for both parties to the mentor-protege agreement.
I-108 Submission and approval of mentor-protege agreements.
(a) Upon solicitation or as determined by the cognizant DoD component, mentors
will submit—
(1) A mentor application pursuant to I-105, if the mentor has not been
previously approved to participate;
(2) A signed mentor-protege agreement pursuant to I-107;
(3) A statement as to whether the mentor is seeking credit or reimbursement of
costs incurred;
year;

(4) The estimated cost of the technical assistance to be provided, broken out per

(5) A justification if program participation term is greater than 3 years (Term of
agreements may not exceed 5 years); and
(6) For reimbursable agreements, a specific justification for developmental costs
in excess of $1,000,000 per year.
(b) When seeking reimbursement of costs, cognizant DoD components may require
additional information.
(c) The mentor-protege agreement must be approved by the cognizant Component
Director, SADBU, prior to incurring costs eligible for credit.
(d) The cognizant DoD component will execute a contract modification or a separate
contract, if justified pursuant to I-103(b)(3), prior to the mentor’s incurring costs eligible
for reimbursement.
(e) Credit agreements that are not associated with an existing DoD program and/or
component will be submitted for approval to Director, SADBU, Defense Contract
Management Agency (DCMA), via the mentor’s cognizant administrative contracting
officer.
(f) A prospective mentor that has identified Program funds to be made available
from a DoD program manager must provide the information in paragraph (a) of this
section through the program manager to the cognizant Component Director, SADBU,
with a letter signed by the program manager indicating the amount of funding that has
been identified for the developmental assistance program.
I-109 Reimbursement agreements.
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The following provisions apply to all reimbursable mentor-protege agreements:
(a) Assistance provided in the form of progress payments to a protege firm in excess
of the customary progress payment rate for the firm will be reimbursed only if
implemented in accordance with FAR 32.504(c).
(b) Assistance provided in the form of advance payments will be reimbursed only if
the payments have been provided to a protege firm under subcontract terms and
conditions similar to those in the clause at FAR 52.232-12, Advance Payments.
Reimbursement of any advance payments will be made pursuant to the inclusion of the
clause at DFARS 252.232-7005, Reimbursement of Subcontractor Advance Payments-DoD Pilot Mentor-Protege Program, in appropriate contracts. In requesting
reimbursement, the mentor firm agrees that the risk of any financial loss due to the
failure or inability of a protege firm to repay any unliquidated advance payments will
be the sole responsibility of the mentor firm.
(c) The primary forms of developmental assistance authorized for reimbursement
under the Program are identified in I-106(d). On a case-by-case basis, Component
Directors, SADBU, at their discretion, may approve additional incidental expenses for
reimbursement, provided these expenses do not exceed 10 percent of the total estimated
cost of the agreement.
(d) The total amount reimbursed to a mentor firm for costs of assistance furnished
to a protege firm in a fiscal year may not exceed $1,000,000 unless the cognizant
Component Director, SADBU, determines in writing that unusual circumstances justify
reimbursement at a higher amount. Request for authority to reimburse in excess of
$1,000,000 must detail the unusual circumstances and must be endorsed and
submitted by the program manager to the cognizant Component Director, SADBU.
(e) Developmental assistance costs that are incurred pursuant to an approved
reimbursable mentor-protege agreement, and have been charged to, but not reimbursed
through, a separate contract, or through a separately priced contract line item added to
a DoD contract, will not be otherwise reimbursed, as either a direct or indirect cost,
under any other DoD contract, irrespective of whether the costs have been recognized
for credit against applicable subcontracting goals.
I-110 Credit agreements.
I-110.1 Program provisions applicable to credit agreements.
(a) Developmental assistance costs incurred by a mentor firm for providing
assistance to a protege firm pursuant to an approved credit mentor-protege agreement
may be credited as if the costs were incurred under a subcontract award to that protege,
for the purpose of determining the performance of the mentor firm in attaining an
applicable subcontracting goal established under any contract containing a
subcontracting plan pursuant to the clause at FAR 52.219-9, Small Business
Subcontracting Plan, or the provisions of the DoD Comprehensive Subcontracting Plan
Test Program. Unreimbursed developmental assistance costs incurred for a protege
firm that is an eligible entity employing the severely disabled may be credited toward
the mentor firm's small disadvantaged business subcontracting goal, even if the protege
firm is not a small disadvantaged business concern.

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(b) Costs that have been reimbursed through inclusion in indirect expense pools
may also be credited as subcontract awards for determining the performance of the
mentor firm in attaining an applicable subcontracting goal established under any
contract containing a subcontracting plan. However, costs that have not been
reimbursed because they are not reasonable, allocable, or allowable will not be
recognized for crediting purposes.
(c) Other costs that are not eligible for reimbursement pursuant to I-106(d) may be
recognized for credit only if requested, identified, and incorporated in an approved
mentor-protege agreement.
(d) The amount of credit a mentor firm may receive for any such unreimbursed
developmental assistance costs must be equal to—
(1) Four times the total amount of such costs attributable to assistance
provided by small business development centers, historically Black colleges and
universities, minority institutions, and procurement technical assistance centers.
(2) Three times the total amount of such costs attributable to assistance
furnished by the mentor's employees.
(3) Two times the total amount of other such costs incurred by the mentor in
carrying out the developmental assistance program.
I-110.2 Credit adjustments.
(a) Adjustments may be made to the amount of credit claimed if the Director,
SADBU, OUSD(AT&L), determines that—
(1) A mentor firm's performance in the attainment of its subcontracting goals
through actual subcontract awards declined from the prior fiscal year without
justifiable cause; and
(2) Imposition of such a limitation on credit appears to be warranted to prevent
abuse of this incentive for the mentor firm's participation in the Program.
(b) The mentor firm must be afforded the opportunity to explain the decline in
small business subcontract awards before imposition of any such limitation on credit.
In making the final decision to impose a limitation on credit, the Director, SADBU,
OUSD(AT&L), must consider⎯
(1) The mentor firm's overall small business participation rates (in terms of
percentages of subcontract awards and dollars awarded) as compared to the
participation rates existing during the 2 fiscal years prior to the firm's admission to the
Program;
(2) The mentor firm's aggregate prime contract awards during the prior 2 fiscal
years and the total amount of subcontract awards under such contracts; and
(3) Such other information the mentor firm may wish to submit.

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(c) The decision of the Director, SADBU, OUSD(AT&L), regarding the imposition of
a limitation on credit will be final.
I-111 Agreement terminations.
(a) Mentors and/or proteges must send a copy of any termination notices to the
cognizant Component Director, SADBU, that approved the agreement, and the DCMA
administrative contracting officer responsible for conducting the annual review
pursuant to I-113.
(b) For reimbursable agreements, mentors must also send copies of any
termination to the program manager and to the contracting officer.
(c) Termination of a mentor-protege agreement will not impair the obligations of the
mentor firm to perform pursuant to its contractual obligations under Government
contracts and subcontracts.
(d) Termination of all or part of the mentor-protege agreement will not impair the
obligations of the protege firm to perform pursuant to its contractual obligations under
any contract awarded to the protege firm by the mentor firm.
(e) Mentors and proteges will follow provisions of the mentor-protege agreement
developed in compliance with I-107(k) through (m).
I-112 Reporting requirements.
I-112.1 Reporting requirements applicable to SF294/SF295 reports.
(a) Amounts credited toward applicable subcontracting goal(s) for unreimbursed
costs under the Program must be separately identified on the appropriate SF294/SF295
reports from the amounts credited toward the goal(s) resulting from the award of actual
subcontracts to protege firms. The combination of the two must equal the mentor firm's
overall accomplishment toward the applicable goal(s).
(b) A mentor firm may receive credit toward the attainment of an SDB
subcontracting goal for each subcontract awarded by the mentor firm to an entity that
qualifies as a protege firm pursuant to I-101.3 or I-101.5.
(c) For purposes of calculating any incentives to be paid to a mentor firm for
exceeding an SDB subcontracting goal pursuant to the clause at FAR 52.219-26, Small
Disadvantaged Business Participation Program--Incentive Subcontracting, incentives
will be paid only if an SDB subcontracting goal has been exceeded as a result of actual
subcontract awards to SDBs (i.e., excluding credit).
I-112.2 Program specific reporting requirements.
(a) Mentors must report on the progress made under active mentor-protege
agreements semiannually for the periods ending March 31st and September 30th
throughout the Program participation term of the agreement. The September 30th
report must address the entire fiscal year.
(b) Reports are due 30 days after the close of each reporting period.
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(c) Each report must include the following data on performance under the mentorprotege agreement:
(1) Dollars obligated (for reimbursable agreements).
(2) Expenditures.
(3) Dollars credited, if any, toward applicable subcontracting goals as a result of
developmental assistance provided to the protege and a copy of the SF294 and/or SF295
for each contract where developmental assistance was credited.
(4) The number and dollar value of subcontracts awarded to the protege firm.
(5) Description of developmental assistance provided, including milestones
achieved.
(6) Impact of the agreement in terms of capabilities enhanced, certifications
received, and/or technology transferred.
(d) A recommended reporting format and guidance for its submission are available
at: www.acq.osd.mil/sadbu/mentor_protege.
(e) The protege must provide data, annually by October 31st, on the progress made
during the prior fiscal year by the protege in employment, revenues, and participation
in DoD contracts during—
(1) Each fiscal year of the Program participation term; and
(2) Each of the 2 fiscal years following the expiration of the Program
participation term.
(f) The protege report required by paragraph (e) of this section may be provided as
part of the mentor report for the period ending September 30th required by paragraph
(a) of this section.
(g) Progress reports must be submitted—
(1) For credit agreements, to the cognizant Component Director, SADBU, that
approved the agreement, and the mentor’s cognizant DCMA administrative contracting
officer; and
(2) For reimbursable agreements, to the cognizant Component Director,
SADBU, the contracting officer, the DCMA administrative contracting officer, and the
program manager.
I-113 Performance reviews.
(a) DCMA will conduct annual performance reviews of the progress and
accomplishments realized under approved mentor-protege agreements. These reviews
must verify data provided on the semiannual reports and must provide information as
to—
1998 EDITION

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Defense Federal Acquisition Regulation Supplement
Appendix I—Policy and Procedures for the DoD Pilot Mentor-Protege Program

(1) Whether all costs reimbursed to the mentor firm under the agreement were
reasonably incurred to furnish assistance to the protege in accordance with the mentorprotege agreement and applicable regulations and procedures; and
(2) Whether the mentor and protege accurately reported progress made by the
protege in employment, revenues, and participation in DoD contracts during the
Program participation term and for 2 fiscal years following the expiration of the
Program participation term.
(b) A checklist for annual performance reviews is available at
www.acq.osd.mil/sadbu/mentor_protege.

1998 EDITION

I-14