PART 1819

SMALL BUSINESS PROGRAMS

 

TABLE OF CONTENTS

 

1819.001                               Definitions.

 

SUBPART          1819.2         POLICIES

1819.201                               General policy.

       

SUBPART          1819.3         DETERMINATION OF SMALL BUSINESS STATUS FOR SMALL BUSINESS PROGRAMS

1819.302                                  Protesting a small business representation. 

 

SUBPART          1819.5       SET-ASIDES FOR SMALL BUSINESS

1819.502                               Setting aside acquisitions.

1819.502-70                         Non-initiation of set-asides.

1819.502-3                           Partial set-asides.

1819.502-370                       NASA reporting requirements.

1819.505                               Rejecting Small Business Administration recommendations.

 

SUBPART          1819.6         CERTIFICATES OF COMPETENCY AND DETERMINATIONS OF RESPONSIBILITY

1819.602                               Procedures.

1819.602-1                           Referral.

1819.602-3                           Resolving differences between the agency and the Small Business Administration.

1819.602-370                       NASA procedures.

 

SUBPART       1819.7         THE SMALL BUSINESS SUBCONTRACTING PROGRAM

1819.705-2                              Determining the need for a subcontracting plan.

1819.705-4                              Reviewing the subcontracting plan.

1819.705-470                       Acquisition-specific subcontracting goals.

1819.708                               Contract clauses.

1819.708-70                         NASA solicitation provision and contract clause.

 

SUBPART          1819.8       CONTRACTING WITH THE SMALL BUSINESS ADMINISTRATION (THE 8(a) PROGRAM)

1819.800                                 General

1819.804                                  Evaluation, offering, and acceptance.

1819.804-1                              Agency evaluation.

1819.812                                 Contract Administration

 

SUBPART          1819.10       SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM

1819.1005                              Applicability.

 

SUBPART          1819.70      NASA  8  PERCENT GOAL

1819.7000                              General.

1819.7002                              Contracting officer responsibility.

1819.7003                             Contract clause.

 

SUBPART          1819.71      NASA RURAL AREA SMALL BUSINESS PLAN

1819.7101                              Definition.

1819.7102                              General.

1819.7103                              Solicitation provision and contract clause.

 

SUBPART          1819.72      NASA MENTOR-PROTÉGÉ PROGRAM

1819.7201                              Scope of subpart.           

1819.7202                              Definitions.

1819.7203                              Non-affiliation.

1819.7204                              Transportability of features from the Department of Defense

                                                 (DOD) Mentor-Protégé program to NASA contractors.

1819.7205                              General policy.

1819.7206                              Incentives for prime contractor participation.

1819.7207                              Measurement of Program success.

1819.7208                              Mentor firms.

1819.7209                              Protégé firms.

1819.7210                              Selection of protégé firms.

1819.7211                              Application process for mentor firms to participate in the Program.

1819.7212                              OSDBU review and approval process of agreement.

1819.7213                              Agreement contents.

1819.7214                              Developmental assistance.

1819.7215                              Obligation.

1819.7216                              Internal controls.

1819.7217                              Reports.

1819.7218                              Program review.

1819.7219                              Solicitation provision and contract clauses.

 

 

SUBPART          1819.73       SMALL BUSINESS INNOVATION RESEARCH (SBIR) AND SMALL BUSINESS

                                                   TECHNOLOGY TRANSFER (STTR) PROGRAMS

1819.7301                               Scope of subpart.

1819.7302                               NASA contract clauses.

 

 

 

PART 1819

SMALL BUSINESS PROGRAMS

 

1819.001  Definitions.

   “High-Tech” as used in this part means research and/or development efforts that are within or advance the state-of-the-art in a technology discipline and are performed primarily by professional engineers, scientists, and highly skilled and trained technicians or specialists.

 

Subpart 1819.2--Policies

 

1819.201  General policy.

   (a)(i) NASA is committed to providing to small, veteran-owned small business, service-disabled veteran-owned small business, HUBZone, small disadvantaged, and women-owned small business concerns, maximum practicable opportunities to participate in Agency acquisitions at the prime contract level.  The participation of NASA prime contractors in providing subcontracting opportunities to such entities is also an essential part of the Agency's commitment.  The participation of these entities is particularly emphasized in high-technology areas where they have not traditionally dominated.

       (ii) NASA annually negotiates Agency small, service-disabled veteran-owned small business, HUBZone, small disadvantaged, and women-owned small business prime and subcontracting goals with the Small Business Administration pursuant to section 15(g) of the Small Business Act (15 U.S.C. 644).  In addition, NASA has the following statutory goals based on the total value of prime and subcontract awards:

               (A)  Under Public Laws 101-144, 101-507, and 102-389, an annual goal of at least 8 percent for prime and subcontract awards to small disadvantaged business (SDB) concerns, Historically Black Colleges and Universities (HBCUs), minority institutions (MIs), and women-owned small businesses (WOSBs) (see 1819.7000); and

               (B)  Under 10 U.S.C. 2323, an annual goal of 5 percent for prime and subcontract awards to SDBs, HBCUs, and WOSBs.

   (d) The Assistant Administrator for Small and Disadvantaged Business Utilization is the Agency official responsible for carrying out the duties in FAR 19.201(d). 

   (e)(i)    The center director shall designate a qualified individual in the contracting office as a small business specialist to provide a central point of contact to which small business concerns may direct inquiries concerning small business matters and participation in NASA acquisitions.  The small business specialist shall also perform other functions specifically set forth in this section 1819.201 or that the procurement officer may prescribe, with the concurrence of the Assistant Administrator for Small and Disadvantaged Business Utilization, for implementing the Small Business Program.  When the center director considers that the volume of acquisitions or the functions relating to acquisitions at the center do not warrant a full-time small business specialist, these duties may be assigned to procurement personnel on a part-time basis.  However, whether full-time or part-time, that assigned individual, when performing the duties of a small business specialist, shall report directly to the Procurement Officer.

 

       (ii)  Small business specialists appointed under paragraph (d)(i) of this section shall perform the following duties, as the procurement officer determines appropriate to the installation:

             (A)   Maintain a program designed to locate capable small business sources, including those located in labor surplus areas, for current and future acquisitions.

             (B)   Coordinate inquiries and requests for advice from small business concerns on acquisition matters.

             (C)   Before issuance of solicitations or contract modifications for additional supplies or services, determine that small business concerns will receive adequate consideration, including making recommendations for initiation of set-asides (see FAR 19.5  and 19.8) and for taking action in accordance with FAR 19.506(b)  and 1819.502-70.  Participate and provide input early in the acquisition planning phase of proposed acquisitions, including procurement strategy meetings.

             (D)   If small business concerns cannot be given an opportunity to compete because adequate specifications or drawings are not available, work with appropriate technical and contracting personnel to ensure that necessary specifications or drawings for current or future acquisitions will be available.

             (E)   Review acquisitions for possible breakout of items suitable for acquisition from small business concerns.

             (F)    Advise small business concerns regarding financial assistance available under laws and regulations, assist such concerns in applying for such assistance, and ensure that small business concerns' requests for financial assistance are not treated as a handicap in securing the award of contracts.

             (G)   Participate in responsibility determinations (see FAR 9.103) when small business concerns are involved.

             (H)   Participate in the evaluation of prime contractors' small business subcontracting programs (see FAR 19.705-4).

             (I) Review and make appropriate recommendations to the contracting officer on any proposal to furnish Government-owned facilities to a contractor if such action may hurt the Small Business Program.

             (J)    Ensure that participation of small business concerns is accurately reported.

             (K)   Make available to SBA copies of solicitations when requested.

             (L)   Act as liaison between contracting officers and SBA area offices and representatives in connection with set-asides, certificates of competency, and any other matters in which the Small Business Program may be involved.

             (M)  In cooperation with contracting officers and technical personnel, seek and develop information on the technical competence of small business concerns for research and development contracts.  Regularly bring to the attention of contracting officers and technical personnel descriptive data, brochures, and other information regarding small business concerns that are apparently competent to perform research and development work in fields in which NASA is interested.

             (N)   When a small business concern's offer has been rejected for nonresponsiveness or nonresponsibility, assist that concern, upon its request, in understanding such requirements for future awards.

             (O)   Advise center personnel, as necessary, on new Governmentwide and Agency-approved small business programs and initiatives.

   (f)(1)    The NASA Ombudsman, the Director of the Contract Management Division, is the designated official for determining whether the use of the SDB mechanism in FAR Subpart 19.11 has resulted in an undue burden on non-SDB firms in the Department of Commerce designated NAICS Major Groups, or is otherwise inappropriate.

 

Subpart 1819.3--Determination of Small Business Status for Small Business Programs

 

1819.302  Protesting a small business representation. 

   (d)(1) The contracting officer shall not make awards of small business set-aside acquisitions before the expiration of the period for receipt of a size standard protest.

 

Subpart 1819.5--Set-Asides for Small Business

 

1819.502  Setting aside acquisitions.

 

1819.502-70  Non-initiation of set-asides.  

   (a) All cases involving the non-initiation of a set-aside, whether resulting from a joint decision of the small business specialist and the contracting officer or a decision by the contracting officer alone, require referral to the SBA representative (if one is assigned and available) for review.

   (b) If the small business specialist recommends that an individual acquisition or a class of acquisitions, or a portion thereof, be set aside, the contracting officer shall promptly either concur in or disapprove the recommendation, stating in writing the reasons for disapproval.

   (c) When an SBA representative is assigned and available and the contracting officer disapproves the small business specialist's recommendation, the contracting officer shall promptly refer the case to the SBA representative for review.  The small business specialist shall take no further appeal action.  The SBA representative must either concur with the decision or appeal the case to the procurement officer under FAR 19.505.  If the procurement officer approves the contracting officer’s decision and the SBA appeals under FAR 19.505(c), the procurement officer shall forward the required written justification, including a history of discussions between the center and the SBA and rationale for the decision, to the Headquarters Office of Procurement, Program Operations Division (HS).

   (d) The contracting officer shall prepare, sign, and retain in the contract file a memorandum of nonconcurrence in a recommended set-aside action.

 

1819.502-3  Partial set-asides.

 

1819.502-370  NASA Reporting Requirements.

   The contracting officer shall separately report, in accordance with Subpart 1804.6, awards of the non-set-aside portions of small business set-aside acquisitions.

 

1819.505  Rejecting Small Business Administration recommendations.

   See 1819.502-70.

 

Subpart 1819.6--Certificates of Competency and Determinations of Responsibility

 

1819.602  Procedures.

 

1819.602-1  Referral.   

   (a) On proposed awards exceeding the simplified acquisition threshold, the contracting officer should consider requesting a preaward survey (see FAR 9.106) before determining that a responsive small business firm is not responsible.  The scope of the preaward survey request should be limited to those elements of responsibility that are questioned.     

       (2) The contracting officer shall forward a copy of the referral to SBA through the procurement officer to the Headquarters Office of Small and Disadvantaged Business Utilization  (Code K).

 

1819.602-3  Resolving differences between the agency and the Small Business Administration.

 

1819.602-370  NASA Procedures. 

   (a) When agreement cannot be reached between the contracting officer and the SBA Area Office, the contracting officer shall forward to the Headquarters Office of Procurement (Code HS) on an expedited basis, a complete case file with a request that the case be considered for appeal to SBA Headquarters.  The contracting officer shall include the data already furnished to SBA, SBA's rationale for proposing to issue a COC, and the contracting officer's comments.  The contracting officer shall suspend acquisition action until informed by Code HS of the final decision in the case.

   (b) If the Office of Procurement concludes that the referral to SBA should be withdrawn and a contract awarded without benefit of a COC, Code HS shall inform the contracting officer.

   (c) If the Office of Procurement agrees with the contracting officer's recommended appeal action, the Assistant Administrator for Procurement shall forward the appeal through the Office of Small and Disadvantaged Business Utilization (Code K) to SBA Headquarters.

 

Subpart 1819.7--The Small Business Subcontracting Program

 

1819.705-2  Determining the need for a subcontracting plan.   

   (d) Solicitations for competitive negotiated acquisitions shall require proposed subcontracting plans with initial proposals (see 1819.708(b)(1)).  For sole source negotiated acquisitions, the contractor shall be required to submit a proposed subcontracting plan with the proposal. 

 

1819.705-4  Reviewing the subcontracting plan.

 

1819.705-470  Acquisition-specific subcontracting goals.

   Section 1819.201 addresses Agencywide goals at the combined prime and subcontract levels.  Appropriate subcontracting goals for an individual acquisition, however, are to be independently determined on the basis of the specific circumstances of the acquisition, consistent with FAR 19.705-4 and 1819.7002(b), and not on the basis of an Agencywide or center goal.  Acquisition-specific subcontracting goals should reflect maximum practicable opportunities for all categories of small business concerns to participate in NASA programs, consistent with efficient performance.  The methods outlined in NASA Policy Directive (NPD) 5000.2, Uniform Methodology for Determination of Small Disadvantaged Subcontracting Goals, may also be useful in establishing reasonable subcontracting goals for small, veteran-owned small business, service-disabled veteran-owned small business, HUBZone, and women-owned small business concerns.

 

1819.708  Contract clauses. 

   (b)(1) The contracting officer shall use the clause at FAR 52.219-9 with its Alternate II when contracting by negotiation.

 

1819.708-70  NASA solicitation provision and contract clause. 

   (a) The contracting officer shall insert the provision at 1852.219-73, Small Business Subcontracting Plan, in invitations for bids containing the clause at FAR 52.219-9 with its Alternate I. Insert in the last sentence the number of calendar days after request that the offeror must submit a complete plan.

   (b) The contracting officer shall insert the clause at 1852.219-75, Small Business Subcontracting Reporting, in solicitations and contracts containing the clause at FAR 52.219-9, except for contracts covered by an approved commercial plan.

 

Subpart 1819.8--Contracting with the Small Business Administration

(The 8(a) Program)

 

1819.800 General.

   (f) NASA and the Small Business Administration maintain a Partnership Agreement (PA) to allow direct contracting with 8(a) firms by NASA.  Specific guidance on the implementation of the PA through a class deviation to certain requirements set forth in Subpart 19.8 is set forth in Procurement Information (PIC) 08-06.  Centers are to refer to the PIC to determine if direct contracting is currently authorized.

 

1819.804  Evaluation, offering, and acceptance.

 

1819.804-1  Agency evaluation.

   The small business specialist shall review and evaluate all acquisition requirements to determine their suitability for offering to SBA for 8(a) acceptance and make a recommendation to the contracting officer concerning award to SBA.

 

1819.812 Contract Administration.

   (d) The Small Business Act, at 15 USC 637(a)(21)(A), requires a contract awarded under the 8(a) Program to be performed by the concern that initially received the contract. If the owner(s) upon whom eligibility was based subsequently relinquishes ownership or control, or enters into any agreement to relinquish ownership or control, the contract shall be terminated for convenience unless a request for waiver is submitted by the contractor, or by NASA.  Only the Small Business Administration (SBA) may waive this requirement.  Contracting Officers must coordinate any planned requests for waiver of an 8(a) contract termination with the Headquarters Office of Procurement (Program Operations Division).  The Headquarters Office of Procurement will review and coordinate the package with Headquarters offices, as appropriate, and will either forward the request to the Administrator for signature or will advise the Contracting Officer of the decision not to submit the request to the SBA.  

 

Subpart 1819.10--Small Business Competitiveness Demonstration Program

 

1819.1005 Applicability.

   (b) The targeted industry categories for NASA and their North American Industry Classification System (NAICS) codes are:

 

NAICS Code

Industry Category

334111

Electronic Computer Manufacturing

334418

Printed Circuit Assembly (Electronic Assembly) Manufacturing

334613

Magnetic and Optical Recording Media Manufacturing

334119

Other Computer Peripheral Equipment Manufacturing

33422

Radio and Television Broadcasting and Wireless Communication Equipment Manufacturing

336415

Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing

336419

Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

334511

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Instrument Manufacturing

333314

Optical Instrument and Lens Manufacturing

541511

Custom Computer Programming Services        

541512

Computer Systems Design Services

51421

Data Processing Services

541519

Other Computer Related Services

 

Subpart 1819.70--NASA 8 Percent Goal

 

1819.7000  General.

   Public Laws 101-144, 101-507, and 102-389 require the NASA Administrator to ensure, to the fullest extent possible, that at least 8 percent of Federal funding for prime and subcontracts awarded in support of authorized programs, including the space station by the time operational status is obtained, be made available to small disadvantaged business concerns, Historically Black Colleges and Universities, minority institutions, and women-owned small business concerns.

 

1819.7002  Contracting officer responsibility. 

   (a) Contracting officers must seek out as potential sources small disadvantaged business concerns, women-owned small business concerns, historically black colleges or universities and minority institutions, and give full consideration to these entities to satisfy NASA requirements.  The participation of NASA prime contractors is also essential to meeting the Agency’s 8 percent goal.

   (b) NASA Policy Directive (NPD) 5000.2, Uniform Methodology for Determination of Small Disadvantaged Subcontracting Goals, contains guidance on developing realistic goals.  It is applicable to acquisitions expected to exceed $50 million, including options.  The methodology may be used for lesser value acquisitions.

 

1819.7003  Contract clause.

   The contracting officer shall insert the clause at 1852.219-76, NASA 8 Percent Goal, in all solicitations and contracts other than those below the simplified acquisition threshold or when the contract, together with all its subcontracts, is to be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the Trust Territory of the Pacific Islands.

 

Subpart 1819.71--NASA Rural Area Small Business Plan

 

1819.7101  Definition.

   "Rural area" means a county with a population of fewer than twenty thousand individuals.

 

1819.7102  General.

   Pursuant to Public Law 100-590, NASA established a Rural Area Business Enterprise Development Plan, including methods for encouraging prime and subcontractors to use small business concerns located in rural areas as subcontractors and suppliers.  One method is to encourage the contractor to use its best efforts to comply with the intent of the statute. 

 

1819.7103  Solicitation provision and contract clause.

   The contracting officer shall insert the clause at 1852.219-74, Use of Rural Area Small Businesses, in solicitations and contracts that offer subcontracting possibilities or that are expected to exceed $550,000 ($1,000,000 for construction of public facility) unless the contract, together with all its subcontracts, is to be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the Trust Territory of the Pacific Islands.

 

Subpart 1819.72--NASA Mentor-Protégé Program

 

1819.7201  Scope of subpart.           

   The NASA Mentor-Protégé Program is designed to incentivize NASA prime contractors to assist small disadvantaged business (SDB) concerns, Historically Black Colleges and Universities (HBCUs), minority institutions (MIs), and women-owned small business (WOSB) concerns, in enhancing their capabilities to perform NASA contracts and subcontracts, foster the establishment of long-term business relationships between these entities and NASA prime contractors, and increase the overall number of these entities that receive NASA contract and subcontract awards.

 

1819.7202  Definition.

   “High-Tech” is defined in 1819.001.

 

1819.7203  Non-affiliation.

   For purposes of the Small Business Act, a protégé firm may not be considered an affiliate of a mentor firm solely on the basis that the protégé firm is receiving developmental assistance referred to in 1819.7214 from such mentor firm under the Program.  In addition, NASA shall not consider partial ownership, up to 10 percent, of a Department of Defense (DOD)-sanctioned protégé firm by its DOD mentor to constitute affiliation.

 

1819.7204  Transportability of features from the Department of Defense (DOD) Mentor-Protégé Program to NASA contractors. 

   (a) In accordance with the benefits authorized by the DOD Mentor-Protégé Program (Public Law 101-510, Section 831, as amended by Public Law 102-190, Section 814), a NASA contractor who is also an approved DOD mentor can transfer credit features to their NASA contracts.

   (b) NASA prime contractors, who are approved DOD mentors, can award subcontracts noncompetitively under their NASA contracts to the protégés which they are assisting under the DOD Program (Public Law 101-510, Section 831(f)(2)).

   (c) NASA prime contractors may count the costs of developmental assistance provided to protégés being assisted under the DOD Program toward meeting the goals in their subcontracting plans under their NASA prime contracts (Public Law 102-190, Section 814). Limitations which may reduce the value of this benefit include:     

       (1) Credit toward attaining subcontracting goals is available only to the extent that the developmental assistance costs have not been reimbursed to the contractor by DOD as direct or indirect costs; or 

       (2) The credit is available to meet the goals of a NASA subcontracting plan only to the extent that it has not been applied to a DOD subcontracting plan.  The same unreimbursed developmental assistance costs cannot be counted toward meeting the subcontracting goals of more than one prime contract.  These costs would accrue from credit for the multiples attributed to assistance provided by Small Business Development Centers, Historically Black Colleges and Universities and minority institutions. 

   (d) The features identified in paragraphs (a), (b) and (c) of this section point out the portability of features from the DOD Mentor-Protégé Program to NASA prime contractors.  NASA mentors will be held to show "good faith" by providing actual developmental assistance beyond transferring credit from activity in the DOD Program to NASA subcontracting plans.

 

1819.7205  General policy. 

   (a) Eligible large business prime contractors, not included on the "List of Parties Excluded from Federal Procurement and Nonprocurement Programs", who have at least one active subcontracting plan, and who are approved as mentor firms may enter into agreements with eligible entities (as defined in 1819.7209) as protégés to provide appropriate developmental assistance to enhance the capabilities of protégés to perform as subcontractors and suppliers.  Eligible small business prime contractors, not included on the "List of Parties Excluded from Federal Procurement and Nonprocurement Programs", and that are capable of providing developmental assistance to protégés, may also be approved as mentors.  An active mentor-protégé arrangement requires the protégé to be a subcontractor under the mentor's prime contract with NASA. 

   (b) The Mentor-Protégé program may be used in cost reimbursement type contracts and contracts that include an award fee incentive. Costs incurred by a mentor to provide the developmental assistance described in 1819.7214 are allowable.  Except for cost-plus-award-fee contracts, such proposed costs shall not be included in the cost base used to develop a fee objective or to negotiate fee.  On contracts with an award fee incentive, a contractor’s Mentor-Protégé efforts shall be evaluated under the award fee evaluations.

 

1819.7206  Incentives for prime contractor participation. 

   (a) Proposed mentor-protégé efforts, except for the extent of participation of protégés as subcontractors, shall be evaluated under the Mission Suitability factor .   The participation of SDB protégés as subcontractors shall be evaluated separately as a Mission Suitability subfactor (see FAR 15.304(c)(4) and 19.1202).  The participation of other categories of protégés as subcontractors may be evaluated separately as part of the evaluation of proposed subcontracted efforts.

   (b) Under contracts with award fee incentives, approved mentor firms shall be eligible to earn award fee associated with their performance as a mentor by performance evaluation period.  For purposes of earning award fee, the mentor firm's performance shall be evaluated against the criteria described in the clause at 1852.219-79, Mentor Requirements and Evaluation.  This award fee evaluation shall not include assessment of the contractor’s achievement of FAR 52.219-9 subcontracting plan SDB goals or proposed monetary targets for SDB subcontracting (see FAR 19.1203).

 

1819.7207  Measurement of Program success.

   The overall success of the NASA Mentor-Protégé Program encompassing all participating mentors and protégés will be measured by the extent to which it results in:

       (a)  An increase in the number, dollar value and percentage of subcontracts awarded to protégés by mentor firms under NASA contracts since the date of entry into the Program;

       (b) An increase in the number and dollar value of contract and subcontract awards to protégé firms since the time of their entry into the Program (under NASA contracts, contracts awarded by other Federal agencies and under commercial contracts);

       (c) An increase in the number and dollar value of subcontracts awarded to a protégé firm by its mentor firm; and

       (d) An increase in subcontracting with protégé firms in industry categories where they have not traditionally participated within the mentor firm's activity.

 

1819.7208  Mentor firms. 

   (a) Eligibility:     

       (1) Contractors eligible for receipt of government contracts;

       (2) Large prime contractors performing under contracts with at least one negotiated subcontracting plan as required by FAR 19.7; and

       (3) Small business prime contractors that can provide developmental assistance to enhance the capabilities of protégés to perform as subcontractors and suppliers.

   (b) Mentors will be encouraged to identify and select as protégés:     

       (1) A broad base of firms including those defined as emerging firms (e.g., a protégé whose size is no greater than 50 percent of the size standard applicable to the NAICS code assigned to a contracting opportunity);    

       (2) Firms in addition to those with whom they have established business relationships; and

       (3) High-tech firms.

 

1819.7209  Protégé firms. 

   (a) For selection as a protégé, a firm must be:      

       (1) An SDB in the NAICS Major Groups as determined by the Department of Commerce (see FAR 19.201(b)), HBCU, MI, or WOS;

       (2) Certified as small in the NAICS code for the services or supplies to be provided by the protégé under its subcontract to the mentor; and

       (3) Eligible for receipt of government contracts.  

   (b) Except for SDBs, a protégé firm may self-certify to a mentor firm that it meets the requirements set forth in paragraph (a) of this section.  Mentors may rely in good faith on written representations by potential protégés that they meet the specified eligibility requirements.  SDB status eligibility and documentation requirements are determined according to FAR 19.304.

   (c) Protégés may have multiple mentors.  Protégés participating in mentor-protégé programs in addition to the NASA Program should maintain a system for preparing separate reports of mentoring activity for each agency's program.

 

1819.7210  Selection of protégé firms. 

   (a) Mentor firms will be solely responsible for selecting protégé firms.  The mentor is encouraged to identify and select the types of protégé firms listed in 1819.7208(b).

   (b) Mentor firms may have more than one protégé.

   (c) The selection of protégé firms by mentor firms may not be protested, except for a protest regarding the size or eligibility status of an entity selected by a mentor to be a protégé.  Such protests shall be handled in accordance with FAR 19.703(b). The contracting officer shall notify the Headquarters Office of Small and Disadvantaged Business Utilization (OSDBU) (Code K) of the protest.

 

1819.7211  Application process for mentor firms to participate in the Program. 

   (a) Prime contractors interested in becoming a mentor firm must submit a request to the NASA OSDBU to be approved under the Program.  The application will be evaluated on the extent to which the company plans to provide developmental assistance.  The information required in paragraph (b) of this section must be submitted to be considered for approval as a mentor firm.

   (b) A proposed mentor must submit the following information to the NASA OSDBU:     

       (1) A statement that the mentor firm is currently performing under at least one active approved subcontracting plan (small business exempted) and that they are eligible, as of the date of application, for the award of Federal contracts;     

       (2) The cognizant NASA contract number(s), type of contract, period of performance (including options), title of technical program effort, name of NASA Program Manager (including contact information) and name of the NASA field center where support is provided;           

       (3) The number of proposed mentor-protégé arrangements;

       (4) Data on all current NASA contracts and subcontracts to include the contract/subcontract number(s), period of performance, awarding NASA installation or contractor and contract/subcontract value(s) including options;  

       (5) Data on total number and dollar value of subcontracts awarded under NASA prime contracts within the past 2 years and the number and dollar value of such subcontracts awarded to entities defined as protégés.

       (6) Information on the proposed types of developmental assistance.  For each proposed mentor-protégé relationship include information on the company's ability to provide developmental assistance to the identified protégé firm and how that assistance will potentially increase subcontracting opportunities for the protégé firm, including subcontracting opportunities in industry categories where these entities are not dominant in the company's current subcontractor base; and

       (7) A Letter of Intent signed by both parties.  At a minimum, the Letter of Intent must include the stated commitment that the parties intend to enter into a mentor-protégé agreement under the NASA Program, that they intend to cooperate in the establishment of a suitable developmental assistance program to meet their respective needs, and that they agree to comply with the obligations in 1819.7215 and all other provisions governing the Program.

 

1819.7212  OSDBU review and approval process of agreement. 

   (a) The information specified in 1819.7211(b) is reviewed by the NASA OSDBU.  This review will be completed no later than 30 days after receipt by the OSDBU.  The OSDBU will provide a copy of the submitted information to the cognizant NASA technical program manager and contracting officer for a parallel review and concurrence. 

   (b) If OSDBU approves the application, then the mentor     

       (1) Negotiates an agreement with the protégé; and

       (2) Submits an original and two (2) copies of the agreement to the OSDBU for approval by the NASA Mentor-Protégé program manager, the NASA technical program manager, and the contracting officer.   

   (c) Upon agreement approval, the mentor may implement a developmental assistance program.

   (d) An approved agreement will be incorporated into the mentor's contract with NASA.  It should be added to the subcontracting plan in contracts which contain such a plan.

   (e) If OSDBU disapproves the application, then the mentor may provide additional information for reconsideration.  The review of any supplemental material will be completed within 30 days after receipt by the OSDBU.  Upon finding deficiencies that NASA considers correctable, the OSDBU will notify the mentor and request information to be provided within 30 days that may correct the deficiencies.

 

1819.7213  Agreement contents.

   The contents of the agreement must contain:

       (a) Names and addresses of mentor and protégé firms and a point of contact within both firms who will oversee the agreement;

       (b) Procedures for the mentor firm to notify the protégé firm, OSDBU, and the contracting officer, in writing, at least 30 days in advance of the mentor firm's intent to voluntarily withdraw from the Program;

       (c) Procedures for a protégé firm to notify the mentor firm in writing at least 30 days in advance of the protégé firm's intent to voluntarily terminate the mentor-protégé agreement.  The mentor shall notify the OSDBU and the contracting officer immediately upon receipt of such notice from the protégé;

       (d) A description of the type of developmental program that will be provided by the mentor firm to the protégé firm, to include a description of the subcontract work, and a schedule for providing assistance and criteria for evaluation of the protégé’s developmental success;

       (e) A listing of the number and types of subcontracts to be awarded to the protégé firm;

       (f) Program participation term;

       (g) Termination procedures;

       (h) Plan for accomplishing work should the agreement be terminated; and

       (i)  Other terms and conditions, as appropriate.

 

1819.7214  Developmental assistance.

   The forms of developmental assistance a mentor can provide to a protégé include:

  (a)  Management guidance relating to --                             

(1)  Financial management,

(2)  Organizational management,

(3)  Overall business management/planning, and

(4)  Business development; 

       (b) Engineering and other technical assistance;

       (c) Noncompetitive award of subcontracts under NASA contracts;

       (d) Progress payments based on costs.  The customary progress payment rate for all NASA contracts with small disadvantaged businesses is 95 percent.  This customary progress payment rate for small disadvantaged businesses may be used by prime contractors;

       (e) Advance payments.  While a mentor can make advance payments to its protégés who are performing as subcontractors, the mentor will only be reimbursed by NASA for these costs if advance payments have been authorized in accordance with 1832.409-170;

       (f) Loans;

       (g) Rent-free use of facilities and/or equipment; and

       (h) Temporary assignment of personnel to the protégé for purpose of training.

 

1819.7215  Obligation. 

   (a) The mentor or protégé may voluntarily withdraw from the Program as mutually agreed by both mentor and protégé.

   (b) Mentor and protégé firms will submit a "lessons learned" evaluation to the NASA OSDBU at the conclusion of each NASA contract subject to the approved Mentor-Protégé agreement.

 

1819.7216  Internal controls. 

   (a)  The NASA OSDBU will manage the Program.  Internal controls will be established by the OSDBU to achieve the stated program objectives (by serving as checks and balances against undesired actions or consequences) such as:     

       (1) Reviewing and evaluating mentor applications for realism, validity and accuracy of provided information; 

       (2) Reviewing any semi-annual progress reports submitted by mentors and protégés on protégé development to measure protégé progress against the master plan contained in the approved agreement.

       (3) Site visits to NASA installation where mentor-protégé activity is occurring. 

   (b) NASA may terminate mentor-protégé agreements for good cause and exclude mentor or protégé firms from participating in the NASA program.  These actions shall be approved by the NASA OSDBU. NASA shall terminate an agreement by delivering to the contractor a Notice specifying the reason for termination and the effective date.  Termination of an agreement does not constitute a termination of the subcontract between the mentor and the protégé. A plan for accomplishing the subcontract effort should the agreement be terminated shall be submitted with the agreement as required in NFS 1819.7213(h).

 

1819.7217  Reports. 

   (a) Semi-annual reports shall be submitted by the mentor to the NASA Mentor-Protégé program manager, the NASA OSDBU, to include information as outlined in 1852.219-79(b).

   (b) Protégés are encouraged to submit semi-annual reports to the OSDBU on Program progress pertaining to their mentor-protégé agreement.  However, costs associated with the preparation of these reports are unallowable costs under Government contracts and will not be reimbursed by the Government.

   (c) The NASA technical program manager shall include an assessment of the prime contractor's (mentor's) performance in the Mentor-Protégé Program in a quarterly 'Strengths and Weaknesses' evaluation report.  A copy of this assessment will be provided to the OSDBU and the contracting officer.

   (d) The NASA Mentor-Protégé program manager will submit semi-annual reports to the cognizant contracting officer regarding the participating prime contractor's performance in the Program for use in the award fee determination process. 

 

1819.7218  Program review.

   At the conclusion of each year in the Mentor-Protégé Program, the prime contractor and protégé, as appropriate, will formally brief the NASA OSDBU, the technical program manager, and the contracting officer regarding Program accomplishments pertaining to the approved agreement.  This review will be incorporated into the normal program review, where applicable.  A separate review will be scheduled for other contracts to be held at the NASA work site location.

 

1819.7219  Solicitation provision and contract clauses.   

   (a) The contracting officer shall insert the clause at 1852.219-77, NASA Mentor-Protégé Program, in:           

       (1) Cost reimbursement solicitations and contracts, or solicitations and contracts with award fee incentives, that include the clause at FAR 52.219-9, Small Business Subcontracting Plan;

       (2) Small business set-asides of the contract types in (a)(1) of this section with values exceeding $550,000 ($1,000,000 for construction) that offer subcontracting opportunities. 

   (b) The contracting officer shall insert the clause at 1852.219-79, Mentor Requirements and Evaluation, in contracts where the prime contractor is a participant in the NASA Mentor-Protégé Program.

 

Subpart 1819.73--Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs

 

1819.7301 Scope of subpart.

 The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs were established and issued under the authority of the Small Business Act codified at 15 U.S.C. 631, as amended, and the Small Business Innovation Development Act of 1982 (Pub.L. 97-219), codified with amendments at 15 USC 638.  The Small Business Act requires that the Small Business Administration (SBA) issue SBIR and STTR Program Policy Directives for the general conduct of the SBIR/STTR Programs within the Federal Government.  The statutory purpose of the SBIR Program is to strengthen the role of innovative small business concerns (SBCs) in federally-funded research or research and development (R/R&D). Specific program purposes are to: stimulate technological innovation; use small business to meet Federal R/R&D needs; foster and encourage participation by socially and economically disadvantaged SBCs, and by SBCs that are 51 percent owned and controlled by women, in technological innovation; and increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity and economic growth. Federal agencies participating in the SBIR/STTR Programs (SBIR/STTR agencies) are obligated to follow the guidance provided by the SBA Policy Directive.  NASA is required to ensure its policies, regulations, and guidance on the SBIR/STTR Programs are consistent with SBA’s Policy Directive.  Contracting officers are required to insert the applicable clauses identified in 1819.7302 in all SBIR and STTR contracts.

1819.7302 NASA contract clauses.

   (a) Contracting officers shall insert the clause at 1852.219-80, Limitation on Subcontracting – SBIR Phase I Program, in all Phase I contracts awarded under the Small Business Innovation Research (SBIR) Program established pursuant to Pub.L. 97-219 (the Small Business Innovation Development Act of 1982). 

   (b) Contracting officers shall insert the clause at 1852.219-81, Limitation on Subcontracting – SBIR Phase II Program, in all Phase II contracts awarded under the Small Business Innovation Research (SBIR) Program established pursuant to Pub.L. 97-219 (the Small Business Innovation Development Act of 1982). 

   (c) Contracting officers shall insert the clause at 1852.219-82, Limitation on Subcontracting – STTR Program, in all contracts awarded under the Small Business Technology Transfer (STTR) Program established pursuant to Pub.L. 97-219 (the Small Business Innovation Development Act of 1982). 

   (d) Contracting officers shall insert the clause at 1852.219-83, Limitation of the Principal Investigator – SBIR Program, in all contracts awarded under the Small Business Innovation Research (SBIR) Program established pursuant to Pub.L. 97-219 (the Small Business Innovation Development Act of 1982). 

   (e) Contracting officers shall insert the clause at 1852.219-84, Limitation of the Principal Investigator – STTR Program, in all contracts awarded under the Small Business Technology Transfer (STTR) Program established pursuant to Pub.L. 97-219 (the Small Business Innovation Development Act of 1982).

   (f) Contracting officers shall insert the clause at 1852.219-85, Conditions for Final Payment - SBIR and STTR Contracts, in all contracts awarded under the Small Business Technology Transfer (STTR) Program and in all Phase I and Phase II contracts awarded under the Small Business Technology Transfer (STTR) Small Business Innovation Research (SBIR) Program established pursuant to Pub.L. 97-219 (the Small Business Innovation Development Act of 1982).