[Federal Register Volume 88, Number 194 (Tuesday, October 10, 2023)]
[Rules and Regulations]
[Pages 69883-69887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21983]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1801, 1819, and 1852

RIN 2700-AE65


NASA Federal Acquisition Regulation Supplement: NASA Mentor-
Prot[eacute]g[eacute] Program

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: NASA is finalizing amendments to the NASA Federal Acquisition 
Regulation Supplement (NFS)to reflect updates to NASA's Small Business 
Mentor Prot[eacute]g[eacute] Program (MPP).

DATES: Effective November 9, 2023.

FOR FURTHER INFORMATION CONTACT: R. Todd Lacks, NASA HQ, Office of

[[Page 69884]]

Procurement Management and Policy Division, LP-011, 300 E Street SW, 
Washington, DC 20456-0001. Telephone 202-358-0799 and; facsimile 202-
358-3082.

SUPPLEMENTARY INFORMATION: 

I. Background

    NASA published a proposed rule in the Federal Register at 88 FR 
9421 on February 13, 2023, to update NASA's Small Business Mentor 
Prot[eacute]g[eacute] Program (MPP). Amendments discussed included the 
requirement of Small Business Specialists' concurrence on the signed 
letter of endorsement; requirements associated with credit received 
towards subcontracting goals; changes to the MPP reporting requirement 
from semi-annually to annually and editorial changes for clarity. NASA 
also proposed amendments to reflect the annual negotiation of its small 
business percentage goals. Finally, these revisions will emphasize 
collaboration among representatives from the Office of Small Business 
Programs, Office of Procurement, and Program Offices to reduce barriers 
to entry and to opportunities for all small business concerns and 
Historically Black Colleges and Universities or Minority Institutions.

II. Discussion

    NASA received no public comments and is finalizing this rule with 
no changes.

III. Applicability to Commercial Item Acquisitions, Including 
Commercially Available Off-The-Shelf (COTS) Items, and Acquisitions 
Below the Simplified Acquisition Threshold (SAT)

    The final rule implements updates to NASA's MPP. Subpart 1819.72 
does not limit the application of the program requirements to non-
commercial contracts or contracts above the simplified acquisition 
threshold. Consistent with 41 U.S.C. 1905, 1906 and 1907, the NASA 
Assistant Administrator for Procurement has determined that it is in 
the best interest of NASA to apply this policy change to the 
acquisition of commercial items, including COTS items, and those 
requirements below the SAT.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This rule is not a significant regulatory action as defined in E.O. 
12866 and was not reviewed by the Office of Management and Budget 
(OMB).

V. Regulatory Flexibility Act

    NASA does not expect this rule to have a significant economic 
impact on small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq. No comments were received on the 
initial regulatory flexibility analysis and NASA is finalizing it with 
no changes. A summary is provided below.
    The final rule will apply to all current and future participants of 
the MPP. While the final rule will apply to all classes of small 
business, it will not necessarily affect all those businesses because 
the final rule only applies to those that are a part of the MPP. As 
reported by NASA's Office of Small Business Programs (OSBP), NASA has 
entered 6, 1, and 3 mentor prot[eacute]g[eacute] agreements in 2018, 
2019, and 2020, respectively. Therefore, this policy will have minimal 
impact on small businesses at large.

VI. Paperwork Reduction Act

    This rule contains information collection requirements requiring 
the approval of OMB under the Paperwork Reduction Act (44 U.S.C. 
chapter 35). As part of the proposed rule, NASA requested comments on a 
reinstatement with change for OMB 2700-0078, Mentor Protege Program 
Small Business and Small Disadvantaged Business Concerns. In the 
proposed rule, NASA discussed decreasing the collection requirement 
from semi-annual to annual as the Agency conducts semi-annual Mentor 
Prot[eacute]g[eacute] performance reviews, which are more effective in 
tracking milestones over the life of the agreement than the submission 
of semi-annual reports. This change will reduce the reporting 
requirement on small businesses from semi-annual to annual and still 
capture necessary information from the semi-annual performance reviews. 
No comments were received on this change.

List of Subjects in 48 CFR Parts 1801, 1819, and 1852

    Government procurement.

Erica Jones,
NASA FAR Supplement Manager.
    Accordingly, NASA amends 48 CFR parts 1801, 1819, and 1852 as 
follows:

0
1. The authority citation for parts 1801, 1819, and 1852 continue to 
read as follows:

    Authority:  51 U.S.C. 20113(a) and 48 CFR chapter 1.

PART 1801--FEDERAL ACQUISITION REGULATIONS SYSTEM

Subpart 1801.1--Purpose, Authority, Issuance

0
2. Revise section 1801.106 to read as follows:


1801.106  Office of Management and Budget (OMB) approval under the 
Paperwork Reduction Act.

    The following OMB control numbers apply:

------------------------------------------------------------------------
                                                             OMB control
                        NFS segment                              No.
------------------------------------------------------------------------
1819.......................................................    2700-0078
1823.......................................................    2700-0089
1827.......................................................    2711-0052
1843.......................................................    2700-0054
1852.223-70................................................    2700-0160
NF533......................................................    2700-0003
NF1018.....................................................    2700-0017
------------------------------------------------------------------------

PART 1819--SMALL BUSINESS PROGRAMS

Subpart 1819.2--Policies

0
3. Amend section 1819.201 by revising the section heading and paragraph 
(a)(ii) to read as follows:


1819.201  General policy.

    (a) * * *
    (ii) NASA annually negotiates Agency 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, 
representatives from the Office of Small Business Programs, Office of 
Procurement, and Program Offices will collaborate to reduce barriers to 
entry and to increase opportunities for small business concerns, 
identified in paragraph (a)(i) of this section, and Historically Black 
Colleges and Universities or Minority Institutions.

Subpart 1819.72--NASA Mentor-Prot[eacute]g[eacute] Program

0
4. Amend section 1819.7201 by:
0
a. Revising paragraph (a) introductory text; and
0
b. In paragraph (b), adding the acronym ``(MPA)'' after the words 
``mentor-prot[eacute]g[eacute] agreements''.
    The revision reads as follows:

[[Page 69885]]

1819.7201  Scope of subpart.

    (a) This subpart implements the NASA Mentor-Prot[eacute]g[eacute] 
Program (hereafter referred to as the Program) as authorized by the 
Small Business Administration in accordance with 13 CFR 125.10. The 
purpose of the program is to:
* * * * *

0
5. Revise section 1819.7202 to read as follows:


1819.7202  Eligibility.

    (a) To be eligible as a mentor, an entity must be--
    (1) A large business prime contractor or research institution 
performing with at least one approved subcontracting plan (other than a 
commercial plan) negotiated with NASA, pursuant to FAR subpart 19.7. A 
contractor may apply to become a mentor if they currently are not 
performing under a NASA contract, as long as they are currently 
performing another Federal agency contract with an approved 
subcontracting plan. However, the NASA MPA will not be approved until 
the mentor company is performing under a NASA contract with an approved 
subcontracting plan.
    (2) Eligible for receipt of Government contracts. An entity will 
not be approved for participation in the program if, at the time of 
submission of the application to the NASA Mentor Prot[eacute]g[eacute] 
Program Office (MPPO), the entity is debarred or suspended from 
contracting with the Federal Government pursuant to FAR subpart 9.4.
    (b) To be eligible to participate as a prot[eacute]g[eacute], an 
entity must be eligible for award of Federal contracts in accordance 
with FAR subpart 9.4, i.e., entities cannot be suspended or debarred at 
the time of application for the program and must be classified as one 
of more of the following entities or socio-economic categories as 
defined by FAR part 2:
    (1) Small disadvantaged business;
    (2) Women-owned small or economically disadvantaged women-owned 
concern;
    (3) Veteran-owned or service-disabled veteran-owned small business 
concern;
    (4) Historically underutilized business zone concern;
    (5) Historically Black College and University or Minority-Serving 
Institution;
    (6) Current NASA Small Business Innovation Research (SBIR)/Small 
Business Technology Transfer (STTR) Phase II Company; or
    (7) An entity participating in the AbilityOne Program.
    (c) A prot[eacute]g[eacute] firm may self-certify to a mentor firm 
that it meets the requirements set forth in paragraph (b) of this 
section. Mentors may rely in good faith on written representations by 
potential prot[eacute]g[eacute]s that they meet the specified 
eligibility requirements.

0
6. Revise section 1819.7203 to read as follows:


1819.7203  Mentor-prot[eacute]g[eacute] advanced payments.

    If advance payments are contemplated, the mentor must first have 
the advance payments approved by the contracting officer in accordance 
with FAR subpart 32.4.

0
7. Amend section 1819.7204 by:
0
a. Revising paragraphs (a) introductory text and (a)(1) and (3);
0
b. Removing paragraph (a)(4);
0
c. Redesignating paragraph (a)(5) as paragraph (a)(4);
0
d. Removing paragraph (c);
0
e. Redesignating paragraph (b) as paragraph (c); and
0
e. Adding a new paragraph (b).
    The revisions and addition read as follows:


1819.7204  Agreement submission and approval process.

    (a) To participate in the Program, entities approved as mentors, 
will submit a complete agreement package to the contracting officer, 
contracting officer's representative (COR), and the cognizant Small 
Business Specialist (SBS) at the NASA Center. The submission package 
must include the following:
    (1) A signed MPA;
* * * * *
    (3) The estimated cost of the developmental assistance to be 
provided, broken out per year and per task, in a separate cost volume; 
and
* * * * *
    (b) The NASA MPPO may require additional information as requested 
upon agreement submission.
* * * * *

0
8. Amend section 1819.7205 by:
0
a. Revising the section heading and paragraph (a);
0
b. Removing paragraph (c)(4);
0
c. Redesignating paragraphs (c)(5) and (6) as paragraphs (c)(4) and 
(5); and
0
d. Revising paragraph (d).
    The revisions read as follows:


1819.7205  Award Fee Program.

    (a) Mentors may be eligible to earn a separate award fee associated 
with the provision of developmental assistance to NASA SBIR/STTR Phase 
II Prot[eacute]g[eacute]s only. The award fee will be assessed at each 
award fee determination period.
* * * * *
    (d) The Award Fee Program is an addition to the credit agreement, 
reference 1819.7206. Participants that are eligible for award fee may 
also receive credit under their individual contract's award fee plan.

0
9. Add section 1819.7206 to read as follows:


1819.7206  Credit agreement.

    In a MPA (as referenced in section 6 ``Agreements'' of the MPP 
Guidebook), a mentor receives credit toward its subcontracting goals. 
The credit agreement only applies to mentors with an Individual 
Subcontract Plan.
    (a) Costs incurred under a credit agreement are applied on a one-
to-one basis toward applicable subcontracting goals, under a Federal 
agency subcontracting plan (FAR subpart 19.7).
    (b) The credit is reported on the mentor's individual 
subcontracting report (ISR) in the comments section twice a year and in 
the Summary Subcontract Report (SSR) once a year. The MPPO will verify 
the dollars contained in the annual reports.

0
10. Amend section 1819.7212 by revising paragraphs (a), (b), (c) 
introductory text, and (d) through (g) to read as follows:


1819.7212  Reporting requirements.

    (a) Mentors must report on the progress made under active MPA 
annually throughout the term of the agreement.
    (b) Reports are due 30 days after the end of each 12-month period 
of performance commencing with the start of the agreement.
    (c) Each annual report must include the following data on 
performance under the MPA:
* * * * *
    (d) Annually the prot[eacute]g[eacute] must provide an 
independently developed progress report using the annual report 
template, on the progress made during the prior twelve months by the 
prot[eacute]g[eacute] in employment, revenues, and participation in 
NASA contracts during each year of the Program participation term. The 
prot[eacute]g[eacute] must also provide an additional post-agreement 
report for each of the two years following the expiration of the 
Program participation term.
    (e) The prot[eacute]g[eacute] annual report required by paragraph 
(d) of this section must be submitted separately from the mentor's 
annual report submission.
    (f) Reports for all agreements must be submitted to the NASA Mentor 
Prot[eacute]g[eacute] Program Manager, the mentor's cognizant 
administrative Contracting Officer, and their Small Business 
Specialist.
    (g) Templates for the annual report and the Post-Agreement report 
and

[[Page 69886]]

guidance for their submission are available at: https://www.nasa.gov/osbp/mentor-protege-program.

0
11. Add section 1819.7213 to read as follows:


1819.7213  Reporting allowances.

    The mentor may include its developmental expenditures from the 
annual report, reference 1819.7212, in its reported dollars in its 
Summary Subcontracting Report (SSR) in the Electronic Subcontracting 
Reporting System (eSRS).
    (a) If the prot[eacute]g[eacute] is also the mentor's immediate 
next-tier subcontractor under a NASA contract that contains a 
subcontracting plan, the mentor may also include its developmental 
expenditures in its Individual Subcontracting Report (ISR) for that 
contract. Expenditures may be applied to each socio-economic 
subcategory on the SSR and ISR for which the prot[eacute]g[eacute] 
qualifies.
    (b) Developmental expenditures included in SSR's and ISR's must 
also be separately reported and explained (including the actual dollar 
amount) in the ``Remarks'' section of each report.
    (c) Expenditures for AbilityOne prot[eacute]g[eacute]s cannot be 
included in SSR's or ISR's since there is no such reporting category 
for SSR's or ISR's.

0
12. Amend section 1819.7215 by revising paragraph (a) to read as 
follows:


1819.7215  Solicitation provision and contract clauses.

    (a) The contracting officer shall insert the clause at 1852.219-77, 
NASA Mentor-Prot[eacute]g[eacute] Program, in any contract that 
includes the clause at FAR 52.219-9, Small Business Subcontracting 
Plan.
* * * * *

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 1852.2--Texts of Provisions and Clauses

0
13. Amend section 1852.219-77 by revising the date of the clause and 
paragraphs (b) through (d) to read as follows:


1852.219-77  NASA Mentor-Prot[eacute]g[eacute] Program.

* * * * *

NASA MENTOR-PROT[Eacute]G[Eacute] PROGRAM (OCT 2023)

* * * * *
    (b) The Program consists of--
    (1) Mentors, which are large business prime or research 
institution with at least one approved NASA subcontracting plan;
    (2) Prot[eacute]g[eacute]s, which qualify as one or more of the 
following:
    (i) Small Business Concern, as defined in FAR part 2, 
Definitions of Parts and Terms, including: Women-Owned or 
Economically-Owned Concern; Veteran-Owned or Service-Disabled 
Veteran-Owned Small Business Concern; Historically Underutilized 
Business Zone Concern;
    (ii) Historically Black College and University or Minority-
Serving Institution;
    (iii) Current NASA SBIR/STTR Phase II Company; or
    (iv) An Entity Participating in the AbilityOne Program;
    (3) MPA endorsed by the cognizant NASA centers and approved by 
the NASA MPPO; and
    (4) In contracts with award fee incentives, potential for 
payment of an award fee for voluntary participation and successful 
performance in the Mentor-Prot[eacute]g[eacute] Program, in 
accordance with NFS 1819.7205.
    (c) Mentor participation in the program, described in NFS 
1819.72, means providing technical, managerial, and financial 
assistance to aid prot[eacute]g[eacute]s in developing requisite 
high-tech expertise and business systems to compete for and 
successfully perform NASA, as well as other Federal and commercial 
contracts and subcontracts.
    (d) Eligible businesses and research institutions interested in 
participating in the program are encouraged to contact the NASA 
MPPO.
* * * * *

0
14. Amend section 1852.219-79 by:
0
a. Revising the date of the clause and paragraph (a);
0
b. Removing the undesignated text following paragraph (a);
0
c. Redesignating paragraphs (b) through (f) as paragraphs (c) through 
(g);
0
d. Adding a new paragraph (b);
0
e. Revising newly redesignated paragraphs (c) introductory text and 
(c)(3) and (4);
0
f. Removing newly redesignated paragraph (c)(5); and
0
g. Revising newly redesignated paragraphs (d) through (g).
    The revisions and addition read as follows:


1852.219-79  Mentor requirements and evaluation.

* * * * *

MENTOR REQUIREMENTS AND EVALUATION (OCT 2023)

    (a) The purpose of the NASA Mentor-Prot[eacute]g[eacute] Program 
is for a NASA prime contractor to provide developmental assistance 
to:
    (1) Provide incentives to NASA contractors, performing under at 
least one active approved subcontracting plan negotiated with NASA 
to assist prot[eacute]g[eacute]s in enhancing their capabilities to 
perform as viable NASA, other Government, and commercial suppliers 
on contract and subcontract requirements;
    (2) Increase the overall participation of prot[eacute]g[eacute]s 
as subcontractors and suppliers under NASA contracts, other Federal 
agency contracts, and commercial contracts; and
    (3) Foster the establishment of long-term business relationships 
between prot[eacute]g[eacute]s and mentors.
    (b) The Mentor shall comply with the annual reporting 
requirements detailed in NASA FAR Supplement 1819.7212.
    (c) NASA will evaluate the Mentor's performance on the following 
factors in the subcontracting element of the annual Contractor 
Performance Assessment Report (CPAR). If this contract includes an 
award fee incentive, this evaluation will also be included as part 
of the subcontracting element in the award fee evaluation process.
* * * * *
    (3) The extent to which the mentor and prot[eacute]g[eacute] 
have met the developmental milestones outlined in the agreement; and
    (4) The extent to which the mentor has contributed to advancing 
the prot[eacute]g[eacute]'s technical readiness level. This factor 
only applies if the prot[eacute]g[eacute] is a current NASA SBIR/
STTR Phase II contractor.
    (d) Annual reports shall be submitted by the Mentor and the 
Prot[eacute]g[eacute] to the MPPO, following the annual report 
template found on the website at www.nasa.gov/osbp.
    (1) Except for as noted in paragraph (d)(4) of this section, the 
Mentor may include its developmental expenditures from the annual 
report, reference 1819.7212, Reporting Requirements, in its reported 
dollars in its Summary Subcontracting Report (SSR) in eSRS.
    (2) If the prot[eacute]g[eacute] is also the mentor's immediate 
next-tier subcontractor under a NASA contract that contains a 
subcontracting plan, the Mentor may also include its developmental 
expenditures in its Individual Subcontracting Report (ISR) for that 
contract. Expenditures may be applied to each socio-economic 
subcategory on the SSR and ISR for which the prot[eacute]g[eacute] 
qualifies.
    (3) Developmental expenditures included in SSR's and ISR's must 
also be separately reported and explained (including the actual 
dollar amount) in the ``Remarks'' section of each report.
    (4) Expenditures for AbilityOne prot[eacute]g[eacute]s cannot be 
included in SSR's or ISR's, since there is no such reporting 
category for SSR's or ISR's.
    (e) The mentor will notify the cognizant NASA center and NASA 
OSBP in writing, at least 30 days in advance of the Mentor's intent 
to voluntarily withdraw from the program or upon receipt of a 
prot[eacute]g[eacute]'s notice to withdraw from the Program.
    (f) Every six months, the Mentor and Prot[eacute]g[eacute], as 
appropriate, will formally brief the MPPO, and the contracting 
officer during a formal program review regarding program 
accomplishments, as it pertains to the approved agreement.

[[Page 69887]]

    (g) NASA may terminate MPA for good cause, thereby excluding 
mentors or prot[eacute]g[eacute]s from participating in the program. 
These actions shall be approved by the MPPO. NASA shall terminate an 
agreement by delivering to the contractor a letter 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 prot[eacute]g[eacute]. A plan for 
accomplishing the subcontract effort should the agreement be 
terminated shall be submitted with the agreement.
* * * * *
[FR Doc. 2023-21983 Filed 10-6-23; 8:45 am]
BILLING CODE 7510-13-P