Incentives for Prime Contractor Participation

(a)Under the Small Business Act, 15 U.S.C. 637 (d) (4) (E), 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.

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:

  1. evaluating the quality of a proposed subcontracting plan under FAR 19.704-5; and
  2. 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).

(b)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.

(c)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.