[Federal Register: January 23, 2006 (Volume 71, Number 14)]
[Rules and Regulations]               
[Page 3414-3415]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ja06-6]                         

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DEPARTMENT OF DEFENSE

48 CFR Part 219 and Appendix I to Chapter 2

[DFARS Case 2004-D028]

 
Defense Acquisition Regulations System; Defense Federal 
Acquisition Regulation Supplement; DoD Pilot Mentor-
Prot[eacute]g[eacute] Program

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD has adopted as final, without change, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement Sections 841 and 842 of the National Defense Authorization 
Act for Fiscal Year 2005. Section 841 extends the length of the DoD 
Pilot Mentor-Prot[eacute]g[eacute] Program for 5 additional years. 
Section 842 expands the Program to permit service-disabled veteran-
owned small business concerns and HUBZone small business concerns to 
participate in the Program as prot[eacute]g[eacute] firms.

EFFECTIVE DATE: January 23, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Tronic, Defense 
Acquisition Regulations System, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; 
facsimile (703) 602-0350. Please cite DFARS Case 2004-D028.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD published an interim rule at 70 FR 29644 on May 24, 2005, to 
implement Sections 841 and 842 of the National Defense Authorization 
Act for Fiscal Year 2005 (Pub. L. 108-375). Section 841 extends, 
through September 30, 2010, the period during which companies may enter 
into agreements under the DoD Pilot Mentor-Prot[eacute]g[eacute] 
Program; and extends, through September 30, 2013, the period during 
which mentor firms may incur costs that are eligible for reimbursement 
or credit under the Program. Section 842 expands the Program to permit 
service-disabled veteran-owned small business concerns and HUBZone 
small business concerns to participate in the Program as 
prot[eacute]g[eacute] firms.
    One source submitted comments on the interim rule. The respondent 
supported the rule, but recommended that DoD amend the rule to permit 
historically black colleges and universities and minority institutions 
(HBCU/MIs) to participate in the Program as prot[eacute]g[eacute] 
firms. DoD was unable to adopt this recommendation, as there is 
presently no statutory authority that would permit expanding the 
Program to include HBCU/MIs. Therefore, DoD has adopted the interim 
rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

[[Page 3415]]

B. Regulatory Flexibility Act

    DoD has prepared a final regulatory flexibility analysis consistent 
with 5 U.S.C. 604. A copy of the analysis may be obtained from the 
point of contact specified herein. The analysis is summarized as 
follows:
    This final rule implements Sections 841 and 842 of the National 
Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-375). 
Section 841 extends, through September 30, 2010, the period during 
which companies may enter into agreements under the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program; and extends, through September 30, 2013, 
the period during which mentor firms may incur costs that are eligible 
for reimbursement or credit under the Program. Section 842 expands the 
Program to permit service-disabled veteran-owned small business 
concerns and HUBZone small business concerns to participate in the 
Program as prot[eacute]g[eacute] firms. The Program provides incentives 
for DoD contractors to assist prot[eacute]g[eacute] firms in enhancing 
their capabilities and increasing their participation in Government and 
commercial contracts.
    DoD received no public comments in response to the initial 
regulatory flexibility analysis. However, DoD received a comment in 
response to the interim rule that recommended amendment of the rule to 
permit historically black colleges and universities and minority 
institutions (HBCU/MIs) to participate in the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program as prot[eacute]g[eacute] firms. DoD was 
unable to adopt this recommendation, as there is presently no statutory 
authority that would permit expanding the Program to include HBCU/MIs.
    Presently, there are 5,737 service-disabled veteran-owned small 
business concerns and 12,281 HUBZone small business concerns registered 
in the Central Contractor Registration database; and presently, there 
are 134 active mentor-prot[eacute]g[eacute] agreements. Each 
prot[eacute]g[eacute] firm must provide data to its mentor firm, 
annually for submission to the Government, regarding the progress of 
the prot[eacute]g[eacute] firm in employment, revenues, and 
participation in DoD contracts. The data is required for each fiscal 
year of the Program participation term and for each of the two fiscal 
years following the expiration of the Program participation term. This 
information should be readily available to a company as part of its 
normal business practices.
    The rule is expected to have a beneficial impact on service-
disabled veteran-owned small business concerns and HUBZone small 
business concerns. There are no known significant alternatives to the 
rule. Participation in the DoD Pilot Mentor-Prot[eacute]g[eacute] 
Program is voluntary.

C. Paperwork Reduction Act

    The information collection requirements of the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program have been approved by the Office of 
Management and Budget under Control Number 0704-0332, for use through 
May 31, 2007.

List of Subjects in 48 CFR Part 219

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

Interim Rule Adopted as Final Without Change

    Accordingly, the interim rule amending 48 CFR Part 219 and Appendix 
I to Chapter 2, which was published at 70 FR 29644 on May 24, 2005, is 
adopted as a final rule without change.

[FR Doc. 06-568 Filed 1-20-06; 8:45 am]

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