DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
October 18,1996

 
ACQUISITION AND
 TECHNOLOGY

DP(DAR)

                                                                  In reply refer to
                                                                  DFARS Case: 96-D317
                                                                  D. L. 96-018



MEMORANDUM FOR  DIRECTORS OF DEFENSE AGENCIES
                    DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                      ASN(RD&A)/ABM
                    DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                      (CONTRACTING), SAF/AQC
                    DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                    DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS
                      AGENCY



SUBJECT:        Pilot Mentor-Protégé Program


     We have revised the Defense Federal Acquisition Regulation Supplement (DFARS)
language on the Pilot Mentor-Protégé Program to implement section 802 of the 
National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-201).


     We revised DFARS 219.7104 and Appendix I-103(b) to reflect the current
statutory deadline of September 30, 1999, by which mentor firms must incur costs 
in order to be eligible for reimbursement under the Program.  We revised Appendix 
I-102(a) and (b) and Appendix I-103(a) to extend, to September 30, 1998, the date 
by which mentor firms may apply for participation in the Program.


     The attached final rule is effective immediately and will be published 
in a future Defense Acquisition Circular.





                                                    /s/

                                             Eleanor R. Spector
                                             Director, Defense Procurement

Attachment

cc: DSMC, Ft. Belvoir

SUBPART 219.71 -- PILOT MENTOR-PROTÉGÉ PROGRAM

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219.7104 Developmental assistance costs eligible for reimbursement or credit.

* * * * *

(b) Before incurring any costs under the Program, mentor firms need to establish the accounting treatment of developmental assistance costs eligible for reimbursement or credit. Advance agreements are encouraged. To be elibible for reimbursement under the Program, costs must be incurred before October 1, [1999].

* * * * *

APPENDIX I - POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTÉGÉ PROGRAM

* * * * *

I-102 General procedures.

(a) At any time between October 1, 1991, and September 30, [1998], companies interested in becoming mentor firms that want to take credit only for costs incurred for providing developmental assistance to one or more protege firms, or receive credit and reimbursement of indirect costs incurred under the Program, must apply to the DoD for participation in the Program pursuant to the application process set forth at I-106(a).

(b) At any time between October 1, 1991, and September 30, [1998], companies interested in becoming mentor firms that are able to identify funding from a DoD contract program manager(s) to provide developmental assistance to one or more protege firms must apply to the DoD for participation in the Program, pursuant to the application process set forth at I-106(d).

* * * * *

I-103 Program duration.
Activities under the Program may only occur during the following periods:

(a) From October 1, 1991, until September 30, [1998], companies may apply for participation in the Program as mentor firms pursuant to I-102, General Procedures, and once approved, may enter into mentor-protege agreements, pursuant to I-107, Mentor-Protege Agreements.

(b) From October 1, 1991, until September 30, [1999], a mentor firm's costs of providing developmental assistance to its protege firm may be reimbursed only if -