The federal government has many programs to support small businesses in winning government contracts, including government IT contracts, federal and state construction engagements, defense projects, defense contract management, and more. One of the most powerful is the Mentor-Protégé Program (MPP).
Mentor-Protégé Program (MPP)
Several agencies, including the SBA (Small Business Administration), have mentor-protégé programs. There will be variations in the rules and qualifications for each mentor-protégé program. However, the overall structure and goal are the same for all MPPs. The Mentor-Protégé program is designed to motivate and encourage large business prime contractor firms to provide mutually beneficial developmental assistance to small businesses, including those seeking government IT bids, defense contracts, state building contracts, and more, helping to increase participation and maximize opportunities for small businesses in the government market.
Advantages of MPP
Mentor
- For acquisitions that contain the requirement for a subcontracting plan, mentors are eligible to receive credit in the source selection/evaluation criteria process.
- They are allowed to form an MPP Joint Venture with the protégé and bid on contracts set aside for small businesses they normally would not be able to bid on.
- Finding quality subcontractors can be challenging. Since the Prime contractor is supporting the small business, including those involved in government contracting, they know the small business will be able to meet its responsibility.
- The MPP minimizes the risk of violating affiliation rules, which is crucial for small businesses engaging in federal procurement.
Protégé
The protégé can receive many benefits including those related to federal procurement:
- Technical, financial management, and developmental assistance from an established Department of Energy prime contractor to gain the knowledge, skills, and capabilities needed to successfully compete for prime contracts.
- Advice and mentorship on program and project management, information technology, business equipment, and workspaces, especially for small businesses and government contracts.
- Long-term relationships with small and/or large businesses to form teaming arrangements and/or joint ventures, enhancing opportunities in government IT contracts for small businesses.
- Eligibility to receive possible non-competitive subcontracts from the Department of Energy and other federal agencies with MPP at 8(a) program thresholds of $7M for manufacturing NAICs and $4M for all others.
- The MPP minimizes the risk of violating affiliation rules.
Agencies
- Mentor-Protégé arrangements may provide the Agencies with greater assurance that a protégé subcontractor will be able to perform under a contract than a similarly situated non-protégé subcontractor.
- Protégé firms gain opportunities to seek and perform government and commercial contracts through the guidance and support of mentor firms that may not have been available to them without the mentor-protégé program.
- Acquiring an expanded base of qualified small businesses.
- Mitigating the effects of necessary and justified contract bundling.
- Strengthening subcontracting opportunities.
- Achieving a potential increase in small business program goal accomplishments.
General Eligibility Requirements for Protégé
- Be a small business with industry experience. A startup company will not qualify as a protégé. You can find out if your business qualifies as small by using the Size Standards Tool, or by referencing SBA’s table of small business size standards. Both the tool and the table help you find the small business classification requirements according to primary NAICS code.
- Be organized for profit or as an agricultural cooperative.
- Have a proposed mentor prior to applying for the program.
Note: Each agency will have different requirements, for example, the DoD MPP requires a small business to have less than half the size standard corresponding to its primary NAICS code. For the DoE, a protégé should have already worked with the agency prior to applying for the MPP.
General Eligibility Requirements for Mentor
- Be organized for profit or as an agricultural cooperative.
- Be able to carry out its responsibilities to assist the protégé.
- Possess good character, crucial for success in government procurement.
- Does not appear on the federal list of debarred or suspended contractors.
- Be able to 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.
Rules Concerning Affiliation
Business concerns, organizations, or individuals are affiliates of each other if, directly or indirectly, either one controls or has the power to control the other; or a third party controls or has the power to control both.
Indications of control include, but are not limited to, interlocking management or ownership, identity of interests among family members, shared facilities and equipment, common use of employees, or a business entity organized following the debarment, suspension, or proposed debarment of a contractor which has the same or similar management, ownership, or principal employees as the contractor that was debarred, suspended, or proposed for debarment.
These rules are designed to prevent unfair advantages in winning government contracts and to ensure a level playing field in federal procurement.
For an established business with solid past performance, especially in the government market and federal procurement, the Mentor-Protégé program would be perfect for you. If you would like help learning more about the Mentor-Protégé program, or any aspect of government contracting, please check out our website at Government Contractors Association.
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