Some commenters wanted the two-year period extended for those enrolled in the ASMPP, but the SBA did not change this language. Should the entities wish to join again after the two years have expired, they will need to create a new joint venture. Instead, joint ventures will have the ability to bid and accept as many contracts as they can for the two-year joint venture term.
How will the mentor-protégé consolidation affect joint ventures? We already know the SBA is doing away with the so-called “three in two” rule.
This consolidation and the new regulations apply only to the mentor-protégé program. If you are currently an 8(a) program participant, your assigned SBA District Office will continue to oversee all other aspects of your 8(a) participation, including approvals of joint ventures to pursue 8(a) sole source contracts (note that 8(a) joint ventures for competitive 8(a) set-asides no longer require prior approval by SBA under 13 C.F.R. Only the 8(a) Mentor-Protégé Program is going away. The 8(a) Program itself, of course, remains in effect. The SBA’s goal is to “establish one, unified staff to better coordinate and process mentor-protégé applications.” The All-Small office is your one-stop shop for all things mentor-protégé, which may be a welcome change from the local review process under the 8(a) mentor-protégé program. Bookmark the email address: This is where you are going to send all your documents, certifications, and questions. Now, we need to take on the next big issue, “if I want to apply for mentor-protégé approval, who do I apply to?” The answer is that the All-Small Mentor Protégé Program office will take over all new certifications and re-certifications. We can take this question off the table, but we still have more issues to address. The goal of the SBA in proposing consolidation was simply to reduce the regulatory burden, casting these protégés out of the program would make no sense. And, this prior 8(a) mentor-protégé relationship will still count toward the “two-per-lifetime” mentor limit for the protégé. As of November 16, 2020, they will be treated as though they had been in the All-Small Mentor Protégé Program for two years.
These two have been in the 8(a) Mentor-Protégé Program for two years now. If a company is active in the 8(a) Mentor-Protégé Program, its status (as mentor or protégé), remaining term, and other details would remain the same as if the 8(a) Mentor-Protégé Program still exists, but the mentor-protégé relationship will now be administered by the ASMPP office rather than the local 8(a) office. The main question I asked when I first saw the new regulations is, “what happens to companies who are already approved under the 8(a) Mentor Protégé program?!” While there is not a clear answer in the regulations, the comments make clear the SBA intends to grandfather them in under the new All-Small umbrella. This post walks you through the highlights on the new mentor-protégé landscape. The SBA did some housekeeping with the regulations, revising various rules to clarify SBA intentions and to eliminate references to the 8(a) Mentor-Protégé Program-check out SmallGovCon’s coverage at the bottom of this post where we look at each change in-depth. With the ASMPP proving successful, the SBA determined that it no longer needed a separate 8(a) Mentor-Protégé Program, and the consolidation would “eliminate confusion regarding perceived differences between the two Programs” and “remove unnecessary duplication of functions within SBA.” At the time, the SBA kept the separate 8(a) Mentor-Protégé program operational, even though the ASMPP was open to 8(a) companies and offered similar benefits. In 2016, the SBA capitalized upon its success with the 8(a) Mentor-Protégé Program by adding the All-Small Mentor-Protégé Program (ASMPP), allowing any small business regardless of socioeconomic distinction to act as a protégé. SBA has now implemented its overhaul and consolidation through a final rule follow along as we take you through what you need to know about the new rules.
We first wrote about the proposed rule changes back in November 2019.
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SBA began looking at how to streamline the programs. Since the All-Small Mentor-Protégé Program was introduced in 2016, confusion between the two programs has persisted. This change has been years in the making. The goal: to eliminate duplications in regulations and to alleviate confusion between the two programs. The 8(a) Business Development Mentor-Protégé Program has officially been consolidated into the All-Small Mentor-Protégé Program.
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