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By having an approved mentor protege agreement, both parties would be exempt from any attacks due to affiliation. You could well be on the way for qualifying for an exception under 13 CFR 121.103 h (3). If you have the right mentor protege joint venture attorney that understands the rules, you might be saved if you have submitted an offer on the challenged procurement as joint venturers. Your competition may try to file a size protest under the MPA joint venture agreement. You might be under more scrutiny if under an SBA-approved Mentor Protégé Agreement (MPA) pursuant to 13 CFR 125.9 because, among other things, you will not be deemed affiliated with each solely because the protege receives assistance from the Mentor. However, the protege must receive a substantial benefit from the relatioship. Both the mentor and the protege can benefit and take advantage of lucrative government contracts by relying on each other’s resources. The Mentor Mentor Protege relationship is designed so that the mentor, usually a large business can provide assistance to the small business where such assistance would be prohibited under normal procurement regulations. What are Some Benefits of the Mentor Protege Relationship?
#Sba mentor protege how to#
Government contractors should beware of the legal pitfalls and how to avoid them. The SBA also makes serious mistakes with their legal analysis of small business joint ventures involving in its mentoring programs. (Area Office erred in finding appellant: (i) was in a joint venture with two sister companies (ii) Area Office also erred in finding that the contractor was affiliated with its sister companies under ostensible subcontractor rule and the SBA’s misapplication of the common ownership, common management rules as it applied to performance of common administrative services. Size This is 2017 case where SBA OHA disagreed with the SBA. SIZ-5783 (2016) (Area Office correctly determined that a member of a purported 8a mentor protege program joint venture did not satisfy the requirement that it perform more than administrative and ministerial functions). Size Appeal of Sage Acquisitions, LLC, SBA No. The following SBA OHA decisions show that small businesses and large companies involved in SBA mentoring programs must be aware of the dangerous pitfalls and consequences for non-compliance with SBA Mentor Protege joint venture rules. They also cannot control the Protege to the extent that the relationship violates the statutory guidelines. Mentors, on the other hand must also be aware that they have a strict tole to play.
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However, there are still situations where small businesses can make serious legal mistakes and give up lucrative federal contracts as a result. The Small Business Administration SBA 8a Mentor Protege Program Joint Venture rules have significant power when applied to submitting proposals for federal government contracts (13 CFR 124.513, 13 CFR 125.9 and 13 CFR 121.103). Get Help Positioning Your Company for GSA’s OASIS UNRESTRICTED Contract Program. It should not be a crutch that prevents small businesses from seeking and performing those larger and more complex contracts on their own.Failure to Follow SBA Mentor Protege Joint Venture Rules 13 CFR 124.513 and 13 CFR 125.9 Can Cost You the Contract. The mentor-protege program should be a boost to a small business’s development that enables the small business to independently perform larger and more complex contracts in the future. Just like the longstanding and popular 8(a) mentor-protege program, the new small business mentor-protege program creates a framework under which mentor firms will provide a wide variety of potential benefits to their proteges. Mentors are encouraged to provide assistance relating to the performance of contracts set aside or reserved for small business so that protege firms may more fully develop their capabilities. This assistance may include technical and/or management assistance financial assistance in the form of equity investments and/or loans subcontracts (either from the mentor to the protege or from the protege to the mentor) trade education and/or assistance in performing prime contracts with the Government through joint venture arrangements. The small business mentor-protege program is designed to enhance the capabilities of protege firms by requiring approved mentors to provide business development assistance to protege firms and to improve the protege firms’ ability to successfully compete for federal contracts. If you’re not familiar with the program, here’s a brief description from the Small Business Adminstration: