Treasury's Mentor-Protégé Program

Treasury’s Mentor Protégé Program is currently being managed by Brian Watson. If you have questions regarding Treasury’s Mentor Protégé Program, please contact Brian Watson at Brian.watson@treasury.gov. If you experience any technical issues with the site please click here to complete a feedback form.

History
Program Details

Success Partnerships is designed to motivate and encourage firms to assist small businesses (SB), including HUBZone small businesses (HUBZone), small disadvantaged businesses (SDB), women-owned small businesses (WOSB), economically disadvantaged women-owned small businesses (EDWOSB), veteran-owned small businesses (VOSB), and service disabled veteran-owned small businesses (SDVOSB). The program is also designed to improve the performance of Department of the Treasury contracts and subcontracts, foster the establishment of long-term business relationships between these entities and Treasury prime contractors, and increase the overall number of these entities that receive Treasury contract and subcontract awards.

Benefits to the Department of the Treasury include, but are not limited to: acquiring an expanded base of qualified small businesses; obtaining more competitive pricing on procurement opportunities resulting in cost savings; and achieving a potential increase in small business program goal accomplishments.

For additional information on Treasury's Success Partnerships Mentor-Protégé Program, please contact:

Brian Watson
Mentor Protégé Program Manager
Department of the Treasury
Office of Small and Disadvantaged Business Utilization
Brian.Watson@treasury.gov

Table of Contents

The Mentor-Protégé Program is not a complex program,  but for ease of reading, the various topics discussed in the program are provided in a Table of Contents listed below.

Scope
Definitions
Non-Affiliation
General Policy
Incentives for Prime Contractor Participation
Measurement of Program Success
Mentor Firms
Protégé Firms
Selection of Protégé Firms
Application  Process
Review and Approval of the Application and Agreement
Developmental Assistance
Obligation
Internal Controls
Solicitation Provisions, Clauses, and Contract Guidance

Scope

The Mentor-Protégé Program is designed to motivate and encourage firms to assist small businesses (SB), including HUBZone small businesses (HUBZone), small disadvantaged businesses (SDB), women-owned small businesses (WOSB) and service disabled veteran-owned small businesses in enhancing their capabilities. The program is also designed to perform Department of the Treasury contracts and subcontracts, foster the establishment of long-term business relationships between these entities and Treasury prime contractors, and increase the overall number of these entities that receive Treasury contract and subcontract awards.

Definitions

  1. Small Business (SB) is a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business in their primary NAICS code under the criteria and size standards in 13 CFR Part 12.
  2. Small Disadvantaged Business (SDB) is a small business concern owned and controlled by socially and economically disadvantaged individuals as defined by Federal Acquisition Regulation (FAR) 19.001.
  3. Women-Owned Small Business (WOSB) is a small business concern where ownership and controlling interest (at least 51%) in the company is held by a woman or women as defined by FAR 19.001.
  4. HUBZone is a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the SBA.
  5. Service Disabled Veteran-Owned Small Business (SDVOSB) is a small business concern where ownership and controlling interest (at least 51%) in the company is held by a service disabled veteran as defined by FAR 19.001.
  6. Mentor is a prime contractor that elects, on a particular contract, to promote and develop small business subcontractors by providing developmental assistance designed to enhance the business success of the protégé.
  7. Protégé is a small business as defined in items 1 through 5 above who is the recipient of developmental assistance pursuant to a mentor-protégé arrangement on a particular contract. .
  8. The Department of the Treasury has designated the Director of the Office of Small and Disadvantaged Business Utilization (OSDBU) to assist and advise small, small disadvantaged, women-owned small business, HUBZone small business,  and Service Disabled Veteran-Owned small business concerns on procedures for doing business with Treasury.

 

Non-Affiliation

For purpose of the Small Business Act, a protégé firm is not considered an affiliate of a mentor firm solely on the basis that the protégé firm is receiving developmental assistance from such mentor firm under the program.

General Policy

Eligible business prime contractors, not included on the "Parties Excluded from Procurement Program" list, may enter into agreements with eligible proteges.  Mentors provide appropriate developmental assistance to enhance the capabilities of proteges to perform as contractors and/or subcontractors.

A firm's status as a protégé under a Treasury contract shall not have an effect on the firm's eligibility to seek other prime contracts or subcontracts.

Incentives for Prime Contractor Participation

  1. Under the Small Business Act, 15 U.S.C. 637 , Treasury is authorized to:
    provide appropriate incentives to encourage subcontracting opportunities for small businesses consistent with the efficient and economical performance of the contract. This authority is limited to negotiated procurement. FAR 19.202-1(d) provides additional guidance to encourage prime contractors to subcontract with small business concerns (see subpart 19.7).
    Before awarding a contract that requires a subcontracting plan, the existence of a mentor-protégé arrangement, and performance (if any) under an existing arrangement, may be considered by the Contracting Officer in:
    • evaluating the quality of a proposed subcontracting plan under FAR 19.704-5; and
    • assessing the prime contractor's compliance with the subcontracting plans submitted in previous contracts as a factor in determining contractor responsibility under FAR 19.705-5(a)(1).
  2. Mentor-Protégé arrangements may provide the Government with greater assurance that a protégé subcontractor will be able to perform under the contract than a similarly situated non-protégé subcontractor.
  3. OSDBU Mentor-Protégé Partnership Award. A non-monetary award is presented annually to the mentor firm providing the most effective developmental support to a Protégé. All nominations for the Mentor-Protege Partnership Award will be evaluated in accordance with established guidelines to determine the award recipient.

Measurement of Program Success

The success of the Treasury Mentor-Protégé program will be measured by:

(a) The increase in the number and dollar value of contracts awarded to protégé firms under Treasury Department contracts from the date the protégé enters the program.

(b) The increase in the number and dollar value of contract and subcontract awarded to the protégé under other Federal agencies and commercial contracts.

(c) The increase in the technical, managerial, financial or other capabilities of the protégé firm, as reported by the protégé, and the developmental assistance provided by the mentor firm.

(d) An increase in the quality of the technical capabilities of the protégé firm.

Mentor Firms

A mentor firm may be either a large or small business, eligible for award of a Government contract that can provide developmental assistance to enhance the capabilities of protégés to perform as subcontractors. Mentors will be encouraged to enter into arrangements with protégés in addition to firms with whom they have established business relationships.

Protégé Firms

In order to be eligible as a protégé in the program, the firm must be:

  1. A SB, WOSB, EDWOSB, SDB,  HUBZone, VOSB, or SDVOSB as described under the definitions section of this program.
  2. 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.

Except for SDB or HUBZone firms, a protégé firm may self-certify to a mentor firm that it meets the requirements listed above. The mentor may rely in good faith on written representations by potential protégés that they meet the specified eligibility requirements. 

Protégés may not have multiple mentors. Protégés participating in mentor-protégé programs in addition to the Treasury program should maintain a system for preparing separate reports of mentoring activity for each agency's program.

Selection of Protégé Firms

(a)    Mentor firms will be solely responsible for selecting protégé firms.

(b)    Mentors may have multiple protégés.

(c)    The selection of protégé firms by mentor firms may not be protested, except that any protest regarding the size or eligibility status of an entity selected by a mentor shall be handled in accordance with the FAR and the Small Business Administration regulations

Application Process for Mentor-Protégé Teams to Participate in the Program

Firms interested in becoming a mentor firm may apply in writing to the Department of the Treasury OSBDU The application will be evaluated based upon the description of the nature and extent of technical and managerial support proposed as well as the extent of financial assistance in the form of equity investment, loans, joint-venture support, and traditional subcontracting support proposed.

2022 Treasury Mentor Protégé Program

Treasury Mentor Application

Treasury Protégé Application

OSDBU Review of Agreement

OSDBU will review the application to ensure that the mentor and protégé are eligible, and that all of the information provided is complete. The OSDBU review will be completed no later than 7 business days after receipt by OSDBU.

Upon completion of the review, the OSBU will provide the mentor with a template for the mentor protégé agreement. The mentor will need to complete and submit the agreement back to the OSDBU. OSDBU will review the agreement to ensure all the information provided is complete. Upon completion of the review the OSDBU will notify the mentor that the agreement is active and that they may implement the developmental assistance program.

The agreement defines the relationship between the mentor and protégé firms only. The agreement itself does not create any privity of contract between the mentor or protégé and the Department of the Treasury.

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; and
  5. Technical assistance.

(b)   Loans;

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

(d)   Property;

(e)  Temporary assignment of personnel to protégé for purpose of training; and

(f)   Any other types of permissible mutually beneficial assistance

Obligation

(a)     A mentor or protégé firm may voluntarily withdraw from the program. However, in no event shall such withdrawal impact the program mission and contract requirements under the prime contract.

(b)    Annual reports shall be submitted by the mentor and protégé firms to the OSDBU on program progress as it pertains to their mentor-protégé agreement. Large business mentors may submit these reports as part of their Small/Small Disadvantaged Business Plan submission in accordance with the due date on the SF295.

The Department of the Treasury will evaluate these reports by considering the following:

1. Specific actions taken by the contractor, during the evaluation period, to increase the participation of protégés as suppliers to the Federal Government and to commercial entities;

2. Specific actions taken by the mentor, during the evaluation period, to develop the technical and corporate administrative expertise of a protégé as defined in the agreement;

3. To what extent the protégé has met the developmental objectives in the agreement; and

4. To what extent the mentor firm's participation in the Mentor-Protégé Program resulted in the protégé receiving contract(s) and subcontract(s) from private firms and agencies other than the Department of the Treasury.

(c)   The Department of the Treasury OSDBU will submit the annual reports to the Small Business Specialists and the cognizant contracting officer regarding participating prime contractor(s) performance in the program. The cognizant contracting officer shall forward a copy of the annual reports to the bureau small business specialist for their files.

(d)    Mentor and protégé firms shall submit an evaluation to the OSDBU at the conclusion of the mutually agreed upon program period, the conclusion of the contract, or the voluntary withdrawal by either party from the program, whichever comes first.

(e)    Protégé firms shall submit a post completion report 24 months after exiting the Mentor-Protégé Program.  The post completion report will assist the Department of the Treasury in assessing the progress of Protégé firms upon completion of the program.  The report can be found under the forms section.

Internal Controls

(a)    The OSDBU will oversee the program and will work with the cognizant Contracting Officer to achieve the program's objectives.

(b)    The Department of the Treasury may rescind approval of an existing Mentor-Protégé agreement if it determines that such actions are in Treasury's best interest. Recession shall be in writing and sent to the mentor and protégé after approval by the Director, OSDBU. Recession of an agreement does not change the terms of the subcontract between the mentor and the protégé or the prime contractor's obligations under its subcontracting plan.

Solicitation Provisions, Clauses, and Contract Guidance

The contracting officer shall insert the provision at 1052.219-73, Department of the Treasury Mentor-Protégé Program, in all unrestricted solicitations exceeding $750,000 ($1,500,000 for construction) that offer subcontracting possibilities. 

1052.219-73 Department of the Treasury Mentor-Protégé Program.

As described in 1019.202-70, insert the following provision:

DEPARTMENT OF THE TREASURY MENTOR PROTÉGÉ PROGRAM

(January 2000)

Large and small businesses are encouraged to participate in the Department of the Treasury Mentor-Protégé program. Mentor firms provide small business protégés with developmental assistance to enhance their business capabilities and ability to obtain federal contracts.

Mentor firms are large prime contractors or eligible small businesses capable of providing developmental assistance. Please note that small business size determinations and 8(a) business developmental / small disadvantaged business status determinations can be found at 13 CFR 121 and 124.

Developmental assistance is technical, managerial, financial, and other mutually beneficial assistance to aid protégés. Contractors interested in participating in the program are encouraged to contact the Department of the Treasury OSDBU.

(End of provision)

1052.219-75 Mentor Requirements and Evaluation

 As prescribed in 1019.22-70, insert the following clause:

MENTOR REQUIREMENTS AND EVALUATION (January 2000)

(a) Mentor and protégé firms shall submit an evaluation to the Department of the Treasury's OSDBU at the conclusion of the mutually agreed upon program period, the conclusion of the contract, or the voluntary withdrawal by either party from the program, whichever occurs first. At the conclusion of each year in the mentor-protégé program, the prime contractor and protégé will formally brief the Department of the Treasury Mentor-Protégé Program Manager regarding program accomplishments under their mentor-protégé agreement.

(b) A mentor or protégé shall notify the OSDBU and the Contracting Officer, in writing, at least 30 calendar days in advance of the effective date of the firm's withdrawal from the program. A mentor firm shall notify the OSDBU and the Contracting Officer upon receipt of a protégé's notice of withdrawal from the Program.

(End of clause)

History  

BusinessLINC - Business Learning, Information, Networking, and Collaboration - was launched to coordinate and encourage business-to-business linkages that may improve the economic competitiveness of smaller firms, including those located in economically distressed areas. The initiative's broad goal was to encourage more private sector business-to-business relationships in order to accelerate the success of business ventures.

To further this effort, the Department of the Treasury has implemented a Mentor-Protégé Program, called "Success Partnerships", which was implemented in three phases:

Phase I began with a Treasury/SBA partnership to use the 8(a) program and SBA's mentor-protégé program for developing 8(a) firms. A listing of current SBA approved 8(a) mentor-protégé agreement participants can be found on SBA's website.

Phase II encouraged agreements between large or mature small businesses who act as mentors. Under phase II, all small businesses were made eligible to participate in the program.

Phase III incorporated Service Disabled Veteran Owned Small Businesses as well as the HUB Zone program into Treasury's Mentor-Protégé Program.

In the past few years the SBA has managed Treasury's Mentor-Protégé Program. Starting in June 2022 Treasury OSDBU will manage all phases of Treasury's Mentor-Protégé Program.

Resources

Mentor-Protégé Annual Evaluation Form

Protégé Post Completion Report