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Union Calendar No. 526 

112TH CONGRESS 

2D SESSION H. R. 3985 

[Report No. 112–723] 

To amend the Small Business Act with respect to mentor-protege programs, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 8, 2012 

Mr. SCHILLING (for himself and Ms. CHU) introduced the following bill; which 

was referred to the Committee on Small Business 

DECEMBER 21, 2012 

Additional sponsors: Mr. CHABOT, Mr. GRAVES of Missouri, Mr. MULVANEY, 

Mr. WALSH of Illinois, Mr. HANNA, Mr. WEST, Mrs. ELLMERS, and Mr. 

CICILLINE

DECEMBER 21, 2012 

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Omit the part struck through and insert the part printed in italic] 

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A BILL 

To amend the Small Business Act with respect to mentorprotege programs, and for other purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Building Better Busi5 ness Partnerships Act of 2012’’. 

6 SEC. 2. MENTOR-PROTEGE PROGRAMS. 

7 The Small Business Act (15 U.S.C. 631 et seq.) is 

8 amended— 

9 (1) by redesignating section 45 as section 46; 

10 and 

11 (2) by inserting after section 44 the following: 

12 ‘‘SEC. 45. MENTOR-PROTEGE PROGRAMS. 

13 ‘‘(a) ADMINISTRATION PROGRAM.— 

14 ‘‘(1) AUTHORITY.—The Administrator is au15 thorized to establish a mentor-protege program for 

16 all small business concerns. 

17 ‘‘(2) MODEL FOR PROGRAM.—The mentor-pro18 tege program established under paragraph (1) shall 

19 be identical to the mentor-protege program of the 

20 Administration for small business concerns that par21 ticipate in the program under section 8(a) of this 

22 Act (as in effect on the date of enactment of the 

23 Building Better Business Partnerships Act of 2012), 

24 except that the Administrator may modify the promstockstill on DSK4VPTVN1PROD with 

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1 gram to the extent necessary given the types of 

2 small business concerns included as proteges. 

3 ‘‘(b) PROGRAMS OF OTHER AGENCIES.— 

4 ‘‘(1) APPROVAL REQUIRED.—Except as pro5 vided in this subsection, a Federal department or 

6 agency may not carry out a mentor-protege program 

7 for small business concerns unless— 

8 ‘‘(A) the head of the department or agency 

9 submits a plan to the Administrator for the 

10 program; and 

11 ‘‘(B) the Administrator approves such 

12 plan. 

13 ‘‘(2) BASIS FOR APPROVAL.—The Adminis14 trator shall approve or disapprove a plan submitted 

15 under paragraph (1) based on whether the program 

16 proposed— 

17 ‘‘(A) will assist proteges to compete for 

18 Federal prime contracts and subcontracts; and 

19 ‘‘(B) complies with the regulations issued 

20 under paragraph (3). 

21 ‘‘(3) REGULATIONS.—Not later than 270 days 

22 after the date of enactment of the Building Better 

23 Business Partnerships Act of 2012, the Adminis24 trator shall issue, subject to notice and comment, 

25 regulations with respect to mentor-protege promstockstill on DSK4VPTVN1PROD with 

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1 grams, which shall ensure that such programs im2 prove the ability of proteges to compete for Federal 

3 prime contracts and subcontracts and which shall 

4 address, at a minimum, the following: 

5 ‘‘(A) Eligibility criteria for program par6 ticipants, including any restrictions on the num7 ber of mentor-protege relationships permitted 

8 for each participant. 

9 ‘‘(B) The types of developmental assistance 

10 to be provided by mentors, including how the 

11 assistance provided shall improve the competi12 tive viability of the proteges. 

13 ‘‘(C) Whether any developmental assist14 ance provided by a mentor may affect the sta15 tus of a program participant as a small busi16 ness concern due to affiliation. 

17 ‘‘(D) The length of mentor-protege rela18 tionships. 

19 ‘‘(E) The effect of mentor-protege relation20 ships on contracting. 

21 ‘‘(F) Benefits that may accrue to a mentor 

22 as a result of program participation. 

23 ‘‘(G) Reporting requirements during pro24 gram participation. 

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1 ‘‘(H) Postparticipation reporting require2 ments. 

3 ‘‘(I) The need for a mentor-protege pair, if 

4 accepted to participate as a pair in a mentor5 protege program of any Federal department or 

6 agency, to be accepted to participate as a pair 

7 in all Federal mentor-protege programs. 

8 ‘‘(J) Actions to be taken to ensure benefits 

9 for proteges., and to protect proteges against ac10 tions by the mentor that— 

11 ‘‘(i) may adversely affect the proteges 

12 status as a small business; or 

13 ‘‘(ii) provide disproportionate eco14 nomic benefits to the mentor relative to 

15 those provided the protege. 

16 ‘‘(4) LIMITATION ON APPLICABILITY.—Notwith17 standing the provisions of subsection (b)(1), the pro18 visions of subsection (b)(1) shall apply to the fol19 lowing: 

20 ‘‘(A) Any mentor-protege program of the 

21 Department of Defense in effect on the date of 

22 enactment of the Building Better Business 

23 Partnerships Act of 2012. 

24 ‘‘(B) Any mentoring assistance provided 

25 under a Small Business Innovation Research 

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1 Program or a Small Business Technology 

2 Transfer Program. 

3 ‘‘(C) Until the date that is 1 year after the 

4 date on which the Administrator issues regula5 tions under paragraph (3), any Federal depart6 ment or agency operating a mentor-protege pro7 gram in effect on the date of enactment of the 

8 Building Better Business Partnerships Act of 

9 2012. 

10 ‘‘(c) REPORTING.— 

11 ‘‘(1) IN GENERAL.—Not later than 2 years 

12 after the date of enactment of the Building Better 

13 Business Partnerships Act of 2012, and annually 

14 thereafter, the Administrator shall submit to the 

15 Committee on Small Business of the House of Rep16 resentatives and the Committee on Small Business 

17 and Entrepreneurship of the Senate a report that— 

18 ‘‘(A) identifies each Federal mentor-pro19 tege program; 

20 ‘‘(B) specifies the number of participants 

21 in each such program, including the number of 

22 participants that are— 

23 ‘‘(i) small business concerns; 

24 ‘‘(ii) small business concerns owned 

25 and controlled by service-disabled veterans; 

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1 ‘‘(iii) qualified HUBZone small busi2 ness concerns; 

3 ‘‘(iv) small business concerns owned 

4 and controlled by socially and economically 

5 disadvantaged individuals; or 

6 ‘‘(v) small business concerns owned 

7 and controlled by women; 

8 ‘‘(C) describes the type of assistance pro9 vided to proteges under each such program; 

10 ‘‘(D) describes the benefits provided to 

11 mentors under each such program; and 

12 ‘‘(E) describes the progress of proteges 

13 under each such program with respect to com14 peting for Federal prime contracts and sub15 contracts. 

16 ‘‘(2) PROVISION OF INFORMATION.—The head 

17 of each Federal department or agency carrying out 

18 a mentor-protege program shall provide to the Ad19 ministrator, upon request, the information necessary 

20 for the Administrator to submit a report required 

21 under paragraph (1). 

22 ‘‘(d) DEFINITIONS.—In this section, the following 

23 definitions apply: 

24 ‘‘(1) MENTOR.—The term ‘mentor’ means a 

25 for-profit business concern, of any size, that— 

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1 ‘‘(A) has the ability to assist and commits 

2 to assisting a protege to compete for Federal 

3 prime contracts and subcontracts; and 

4 ‘‘(B) satisfies any other requirements im5 posed by the Administrator. 

6 ‘‘(2) MENTOR-PROTEGE PROGRAM.—The term 

7 ‘mentor-protege program’ means a program that 

8 pairs a mentor with a protege for the purpose of as9 sisting the protege to compete for Federal prime 

10 contracts and subcontracts. 

11 ‘‘(3) PROTEGE.—The term ‘protege’ means a 

12 small business concern that— 

13 ‘‘(A) is eligible to enter into Federal prime 

14 contracts and subcontracts; and 

15 ‘‘(B) satisfies any other requirements im16 posed by the Administrator. 

17 ‘‘(e) CURRENT MENTOR PROTEGE AGREEMENTS.— 

18 Mentors and proteges with approved agreement in a pro19 gram operating pursuant to subsection (b)(4)(C) shall be 

20 permitted to continue their relationship according to the 

21 terms specified in their agreement until the expiration date 

22 specified in the agreement. 

23 ‘‘(f) SUBMISSION OF AGENCY PLANS.—Agencies oper24 ating mentor protege programs pursuant to subsection 

25 (b)(4)(C) must submit the plans specified in subsection 

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1 (b)(1)(A) to the Administrator within 6 months of the pro2 mulgation of rules required by subsection (b)(3). The Ad3 ministrator shall provide initial comments on each plan 

4 within 60 days of receipt, and final approval or denial of 

5 each plan with 180 days of receipt.’’. 

6 SEC. 3. GOVERNMENT ACCOUNTABILITY OFFICE REPORT. 

7 Not later than the date that is 2 years after the agen8 cies operating subject to section 45(b)(4)(C) of the Small 

9 Business Act have their plans approved or denied by the 

10 Administrator, the Comptroller General of the United 

11 States shall conduct a study to— 

12 (1) update the study required by section 1345 of 

13 the Small Business Jobs Act of 2010 (Pub. Law 111- 

14 240); 

15 (2) examine whether potential affiliation issues 

16 between mentors and proteges under the prior pro17 grams have been resolved by enactment of this Act; 

18 and 

19 (3) examine whether the regulations issued pur20 suant to section 45(b)(3)(I) of the Small Business Act 

21 have increased opportunities for mentor-protege pairs, 

22 and if they have decreased the paperwork required for 

23 such pairs participating in programs at multiple 

24 agencies. 

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Union Calendar No. 526 

112TH CONGRESS 

2D SESSION H. R. 3985 

[Report No. 112–723] 

A BILL 

mentor-protege programs, and for other purposes. 

To amend the Small Business Act with respect to 

DECEMBER 21, 2012 

Reported with amendments, committed to the Committee 

dered to be printed of the Whole House on the State of the Union, and ormstockstill on DSK4VPTVN1PROD with