SBA Extends Comment Period to May 6
AGC submitted comments this week on the U.S. Small Business Administration’s (SBA) proposed rule that would expand mentor-protégé joint venturing opportunities to all small businesses, regardless of small business size or category. SBA proposed this rule in response to the passage of provisions in the 2010 Small Business Jobs Act and the National Defense Authorization Act of 2013. The public comment period has been extended to May 6. To comment, click here.
This expanded mentor-protégé program would be in addition to and modeled after the existing 8(a) mentor-protégé program. As such, a large business mentor joint venturing with a small business protégé would be considered a “small business” just like a stand-alone small business. As a result, the large and small business mentor-protégé joint venture would be able to compete on small business set aside work or be considered a small business for determination as to whether a contract should be set aside under the Rule of Two—which mandates that if two qualified small businesses would compete for the contract, it must be set aside for small business.
In its comments, AGC expressed its concerns about SBA requiring a small business protégé to self-perform 40 percent of the contract work, given that the SBA is simultaneously changing the performance of work rules. As a result, the definition of “work” and performance of work calculation is indeterminable at this time. While AGC neither supports nor opposes the expansion of the mentor-protégé program, the association did express its concerns about the potential for this rule to dramatically alter the small business program and federal contracting in general.
For more information, please contact Jimmy Christianson at (703) 837-5325 orchristiansonj@agc.org. Return to Top