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The General Services Administration is reviving a plan first floated five years ago to create a mentor program for agency contractors.

GSA announced a proposal for the new program on Tuesday in the Federal Register, noting that the initiative is designed to promote more subcontracting opportunities for small businesses.

The program will "encourage GSA prime contractors to assist small businesses ... in enhancing their capabilities to perform GSA contracts and subcontracts, foster the establishment of long-term business relationships between these small business entities and GSA prime contractors, and increase the overall number of small business entities that receive GSA contract and subcontract awards," the notice said.

To participate, the mentor firm -- which can be either a large company or a capable small business -- must currently hold a prime agency contract and have performed at least one GSA-approved subcontracting plan within the past five years.

The mentor firm then would be required to use the protégé company as a subcontractor on at least one of their GSA prime contracts. Subcontracts awarded under this program would be excluded from most competition requirements.

GSA's mentor-protégé program manager must approve all applications for participation in the program, according to the notice.

The prime contractor will be responsible for selecting its protégé firm, although they can select more than one. Mentors are encouraged to choose from a broad base of small businesses including those classified as disadvantaged, women owned, veteran owned, service disabled veteran owned and HUBZone -- a program that encourages small businesses to operate in blighted communities.

GSA estimated that roughly 150 small business contractors will take part in the program.

The mentor firm would be expected to provide developmental assistance to its protégé, including guidance in financial and organizational management, loans, training, and business development.

The mentor firms would reap a healthy benefit from participating in the program as well.

According to the notice, "Contracting officers may evaluate subcontracting plans containing mentor-prot[égé] agreements more favorably than subcontracting plans" that do not take part in the program.

In addition, contracting officers will be able to assess the mentor's compliance with the subcontracting plans submitted in previous contracts as a factor in evaluating past performance and determining contractor responsibility. Mentors will be responsible for drafting a semiannual report detailing the assistance provided and the cost incurred in supporting the partnership while, at the end of the program, protégés will be expected to submit a "lessons learned" evaluation.

GSA said it would judge the overall success of the program based on the number and dollar value of subcontracts awarded to protégé firms, particularly in industry categories where they have not traditionally participated.

Nonmonetary awards will be presented each year to the mentor-protégé team that is deemed most effective by GSA management.

GSA officials with the Federal Supply Service -- later reorganized as part of the Federal Acquisition Service -- considered a similar mentoring program in the summer of 2002.

The Services Acquisition Center's Industry Government Council, which issues procurement recommendations for improving services between private industry and the federal government, drafted a white paper outlining the plan, which is similar to the agency's current vision.

A GSA spokesman said the 2002 plan was limited to the Federal Acquisition Service and the Multiple Awards Schedule Program. The current proposed rule includes all of GSA. The FAS proposal also did not include any incentives for mentor firms.

It is unclear why GSA, which has a mentor-protégé program for agency employees, did not implement the program at the time.

The agency will accept written comments on the proposal through Aug. 11.

COMMENTS

• I support the mentor-prote'ge' program. It gives a new 8a firm a better opportunity to get started immediately in the market place with less startup capital, it should facilitate obtaining bonding for the new 8a firm. By piggybacking, the montoring company should avoid some of the pitfalls in marketing, whereby, giving the 8a firm the right information so that he/she may market their company in the right places that will reap the most benefit for the firm. By starting off with proper guidance it elimate a lot of the wasted time that the new company may spend trying to learn the working relation with SBA and the new firm. If the mentorimg company has trained employes this allow the new company chance to train his people the right way. In talking with most former 8a firms they they didn't become a viable company while in the 8a program do to like of knowledge. Ozell Jones Posted June 30, 2008 9:23 AM
• If you are a Prime Contractor, where you always a Prime? It is naive for Prime Contractors to think and believe Subcontractors will continue to work as Subs. Would you prefer a turnover or not having a piece of the pie at all. The rules and the game changes when it affects "business as usual". Subcontractors always suffer the most in more ways than one. Switch roles for one week and submit your comment. It is time for a change in major way! There is enough funding opportunities for everyone. Don't be scared! L Lewis Posted June 30, 2008 3:24 AM
• There are three problems with the cycle of arbitrarily forcing 8(a) contractor turnover from incumbents, which are often not considered. First, it is bad for workers. Good and experienced onsite workers are kicked out of jobs or are forced to take positions with the new contract winner, often having to let go of benefit gains related to seniority (better vacation time, 401K) and start from scratch again. Second, 8(a)s that have some early success most often implode once they graduate the program. As I understand it, the true ultimate success rate of the program is very low. Third, agencies suffer greatly as experienced workers leave for better jobs and stability. Today's specialized jobs have a big learning curve, and it can take new workers six months to a year to catch on to new tasks. Contractor taskings are supposed to be fluid "commodity" types of taskings, and interchangeable on the open market, but that is an outdated and naive model. Hal Frasch Posted June 15, 2008 9:22 AM