Department of the Navy

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Departmentof theNavy
Mentor-Protégé Program
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Overview

• New Role of the HCA / OSN SADBU
• The Proposal Review
• Submission Process
• Evaluation Process
• Agreement Information Spreadsheet
• HCA Reporting

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New Role of the HCA

• HCAs will become more involved in the process
  than in the past
• Potential agreements will be funneled to the
  HCAs for development
• Issues and problems will be resolved at the HCA
  level

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New Role of the OSN SADBU

• Provide assistance to HCA in processing
  agreements
• Complete evaluation of agreements
• Interface with OSD SADBU
• Will not interface with Mentors or Protégés prior
  to an agreement

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Proposal Review

• 3 Separate Sections
• Mentor-Protégé Agreement as Defined in DFARS
  Appendix I, Section I-107(b)
• Technical Proposal (including milestones
  metrics)
• Detailed Cost Proposal that tracks to the
  Technical Proposal

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Mentor-Protégé Agreement

• Must be in accordance with DFARS Appendix I,
  Section I-107(b)
• Must address all (9) elements of this section
• Include a separate statement citing the benefits
  of the agreement to the Navy and/or DoD

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Technical Proposal

• A technical proposal that details the development
  program described in the Mentor-Protégé agreement
  as defined in DFARS Appendix I, Section
  I-07(b)(3)
• The technical proposal should easily track to the
  cost proposal
• The hours associated with each task described in
  the technical proposal should be visible in the
  cost proposal

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Technical Proposal

• Strong technical proposal imperative
• Approximately 70 of hours associated with
  technology transfer must be the proposed hours
• Approximately 30 of the proposed hours many be
  related to business development tasks

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Technical Proposal

• Items that are considered as technology transfer
  include
• Accounting Systems
• ISO Certification
• Software Certification
• Office Automation

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Technical Proposal

• Must include a milestone chart that tracks the
  proposed technical assistance
• Shall provide a metric that measures how to track
  the completion of each of the major developmental
  tasks

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Cost Proposal

• A detailed cost proposal of the technical
  proposal presented in 12-month increments as
  cited in DFARS Appendix I-107(b)(3)(iii)
• Cost proposals for reimbursement DO NOT INCLUDE
  ANY TYPE OF FEE OR PROFIT

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Cost Proposal

• Labor/salary reimbursement must be for employees
  on the mentors payroll only Consultants costs
  are unallowable
• Incidental costs (other direct costs) cannot
  exceed 10 of the total cost proposal
• Incidental costs include all costs other than
  direct labor, overhead, and general and
  administrative (GA) costs associated with direct
  labor

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Cost Proposal

• Examples of incidental costs include travel,
  training, equipment and software, etc
• The only protégé expenses to be reimbursed by the
  government are for travel expenses relating to
  training only, not marketing

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Cost Proposal Non-Manufacturing

• Agreements that exceed 500,000 per year (1.5
  million per agreement) will Not be approved
• Navy agreements should be proposed between
  175,000 - 250,000 per year (lt750,000 per
  agreement)

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Cost Proposal - Manufacturing

• Agreements that focus on manufacturing, are
  generally endorsed for approval at 750,000 per
  year (2.25M per agreement)
• All agreements will be incrementally funded

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Proposal Policies Procedures

• Mentor-Protégé agreements must be added as a line
  item to an existing contractual instrument
• A new contract instrument cannot be issued for
  the sole purpose of establishing a mentor-protégé
  agreement

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Proposal Policies Procedures

• Agreements cannot exceed (3) years from the date
  of the contract modification
• The proposed agreement period should be 60 90
  days less than the 3-year period to allow for an
  extension in the event the milestones cited in
  the agreement are not met

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Proposal Policies Procedures

• Tasks to be completed by historically black
  colleges or universities or minority institutions
  (HBCUs/MIs), or procurement technical assistance
  centers (PTACs) are allowable
• Are not included in incidental costs
• The use of these resources for training is
  encouraged

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Proposal Policies Procedures

• Use soft dates in the proposal i.e. 30
  days after contract modification
• Ensure the Mentor completes the preliminary
  assessment of the developmental needs of the
  protégé firm in accordance with DFARS Appendix I,
  Section I-106 (2) (iv)

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Proposal Policies Procedures

• Ensure the Mentor is approved by DoD
• Check the SDB certification dates of the Protégé
• Use the DoD checklist to ensure completeness of
  the agreement

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Submission Process

• The Navy will endorse and forward to OSD SADBU
  for approval and funding proposed Mentor-Protégé
  agreements submitted during the following three
  cycles
• June 1st through September 30th
• October 1st through January 31st
• February 1st through May 31st

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Submission Process

• The OSN SADBU plans to review, endorse, and
  forward the agreements to OSD SADBU for approval
  and funding within 30 days after closing of the
  submission cycle

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Evaluation Process

• Proposed agreements will be evaluated based on
  the following criteria
• Merit of the technology transfer to the protégé
  firm
• Percentage of hours associated with technology
  transfer
• Perceived benefit/value of the agreement to Navy
  and/or DoD

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Evaluation Process

• Proposed cost
• Utilization of HBCUs/MIs and
• Subcontracting opportunities available to the
  protégé

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Evaluation Process

• Evaluation panel will consist of two members of
  the OSN SADBU Office and a representative from
  one HCA that does not have a proposal in the
  current submission cycle
• Final endorsement of agreements to be forwarded
  to OSD SADBU for funding is at the discretion of
  the Director, OSN SADBU

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Evaluation Process

• It is the OSN SADBU Office intention to endorse
  the highest rated agreements from each submission
  cycle that equal approximately one-third of the
  funding available for that fiscal year allocated
  for new agreements

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Evaluation Process

• All agreements that are not endorsed and
  forwarded to OSD SADBU will be returned to the
  Mentor with a copy of the cover letter sent to
  the cognizant Navy small business office
• The proposal may be resubmitted a maximum of two
  times

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Agreement Information Spreadsheet

• Must be submitted with ALL new agreements
• OSN SADBU will update sheet with milestones after
  submission
• Should also be maintained at the HCA level

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HCA Reporting

• Quarterly expenditure reports for EACH agreement
  is required to be submitted to the OSN SADBU
  Office