Sec. 856. CODIFICATION OF THE DEPARTMENT OF DEFENSE MENTOR-PROTEGE PROGRAM

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## SEC. 856 CODIFICATION OF THE DEPARTMENT OF DEFENSE MENTOR-PROTEGE PROGRAM ###

(a)In General **[**[10 U.S.C. 4902](/us/usc/t10/s4902)**]** Section 831 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 4901note prec.) is transferred to subchapter I of chapter 387 of title 10, United States Code, inserted after section 4901, and redesignated as section 4902. ###

(b)Amendments Section 4902 of title 10, United States Code, as so transferred and redesignated, is amended— ####

(1)in the section heading, by striking “mentor-protege pilot” and inserting “department of defense mentor-protege”; ####

(2)in the heading for subsection (a), by striking “Pilot”; ####

(3)in subsections

(a)and (c), by striking “pilot” each place it appears; ####

(4)in subsection (d)(1)(B)(iii)— #####

(A)in subclause (I), by striking “$100,000,000” and inserting “$25,000,000”; and #####

(B)in subclause (II), by striking “subsection (k)” and inserting “subsection (j)”; ####

(5)in subsection (e)(2), by striking “two years” each place it appears and inserting “three years”; ####

(6)in subsection (f)— #####

(A)in paragraph (1)(B), by inserting “manufacturing, test and evaluation,” after “inventory control,”; and #####

(B)in paragraph (6)(B), by striking “pursuant to” and all that follows through the semicolon at the end and inserting “pursuant to chapter 388 of this title;”; ####

(7)in subsection (g)(3)(C), by striking “subsection (k)” and inserting “subsection (j)”; ####

(8)by striking subsections

(j)and (n); ####

(9)by redesignating subsections

(k)through

(m)as subsections

(j)through (l), respectively; ####

(10)by redesignating subsection

(o)as subsection (n); ####

(11)in subsection (j), as so redesignated— #####

(A)by striking “pilot” each place it appears; #####

(B)by striking “by which mentor firms” and inserting “by which the parties”; and #####

(C)by striking “The Secretary shall publish” and all that follows through “270 days after the date of the enactment of this Act.”; ####

(12)in paragraph (7)(B) of subsection (k), as so redesignated, by striking “pursuant to” and all that follows through “; or” and inserting “pursuant to chapter 388 of this title; or”; ####

(13)in subsection (l), as so redesignated, by striking “subsection (l)” and inserting “subsection (k)”; ####

(14)by inserting after subsection (l), as so redesignated, the following new subsection: > > ### “(m) Annual Collection of Performance Data > > The Director of the Office of Small Business Programs shall— > > > #### “(1) > > maintain outcome-based performance goals and annually collect data through an automated information system (if practicable) assessing such goals; and > > > #### “(2) > > conduct an independent review of the Mentor-Protege Program established under this section at least once every three years.” > ; and ####

(15)by amending subsection (n), as so redesignated, to read as follows: > > ### “(n) Definitions > > In this section: > > > #### “(1) > > The term ‘affiliation’, with respect to a relationship between a mentor firm and a protege firm, means a relationship described under section 121.103 of title 13, Code of Federal Regulations (or any successor regulation). > > > #### “(2) > > The term ‘disadvantaged small business concern’ means a firm that is not more than the size standard corresponding to its primary North American Industry Classification System code, is not owned or managed by individuals or entities that directly or indirectly have stock options or convertible securities in the mentor firm, and is— > > > ##### “(A) > > a small business concern owned and controlled by socially and economically disadvantaged individuals; > > > ##### “(B) > > a business entity owned and controlled by an Indian tribe as defined by section 8(a)(13) of the Small Business Act (15 U.S.C. 637(a)(13)); > > > ##### “(C) > > a business entity owned and controlled by a Native Hawaiian Organization as defined by section 8(a)(15) of the Small Business Act (15 U.S.C. 637(a)(15)); > > > ##### “(D) > > a qualified organization employing severely disabled individuals; > > > ##### “(E) > > a small business concern owned and controlled by women, as defined in section 8(d)(3)(D) of the Small Business Act (15 U.S.C. 637(d)(3)(D)); > > > ##### “(F) > > a small business concern owned and controlled by service-disabled veterans (as defined in section 8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3))); > > > ##### “(G) > > a qualified HUBZone small business concern (as defined in section 31(b) of the Small Business Act (15 U.S.C. 657a(b))); or > > > ##### “(H) > > a small business concern that— > > > ###### “(i) > > is a nontraditional defense contractor, as such term is defined in section 3014 of this title; or > > > ###### “(ii) > > currently provides goods or services in the private sector that are critical to enhancing the capabilities of the defense supplier base and fulfilling key Department of Defense needs. > > > #### “(3) > > The term ‘historically Black college and university’ means any of the historically Black colleges and universities referred to in section 2323 of this title, as in effect on March 1, 2018. > > > #### “(4) > > The term ‘minority institution of higher education’ means an institution of higher education with a student body that reflects the composition specified in section 312(b)(3), (4), and

(5)of the Higher Education Act of 1965 (20 U.S.C. 1058(b)(3), (4), and (5)). > > > #### “(5) > > The term ‘qualified organization employing the severely disabled’ means a business entity operated on a for-profit or nonprofit basis that— > > > ##### “(A) > > uses rehabilitative engineering to provide employment opportunities for severely disabled individuals and integrates severely disabled individuals into its workforce; > > > ##### “(B) > > employs severely disabled individuals at a rate that averages not less than 20 percent of its total workforce; > > > ##### “(C) > > employs each severely disabled individual in its workforce generally on the basis of 40 hours per week; and > > > ##### “(D) > > pays not less than the minimum wage prescribed pursuant to section 6 of the Fair Labor Standards Act (29 U.S.C. 206) to those employees who are severely disabled individuals. > > > #### “(6) > > The term ‘severely disabled individual’ means an individual who is blind (as defined in section 8501 of title 41) or a severely disabled individual (as defined in such section). > > > #### “(7) > > The term ‘small business concern’ has the meaning given such term under section 3 of the Small Business Act (15 U.S.C. 632). > > > #### “(8) > > The term ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ has the meaning given such term in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C)). > > > #### “(9) > > The term ‘subcontracting participation goal’, with respect to a Department of Defense contract, means a goal for the extent of the participation by disadvantaged small business concerns in the subcontracts awarded under such contract, as established pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)).” > . ###

(c)Clerical Amendment The table of sections for subchapter I of chapter 387 of title 10, United States Code, is amended by adding at the end the following new item:" “4902. Department of Defense Mentor-Protege Program.” ". ###

(d)Protege Technical Reimbursement Pilot Program **[**[10 U.S.C. 4902 note](/us/usc/t10/s4902)**]** ####

(1)In general Not later than July 1, 2023, the Director of the Office of Small Business Programs of the Department of Defense (as appointed pursuant to section 144 of title 10, United States Code) shall establish a pilot program under which a protege firm may receive up to 25 percent of the reimbursement for which the mentor firm of such protege firm is eligible under the Mentor-Protege Program for a covered activity described in paragraph (2). ####

(2)Activity described A covered activity under this paragraph is an engineering, software development, or manufacturing customization that the protege firm implements in order to ensure that a technology developed by the protege firm will be ready for integration with a program or system of the Department of Defense. ####

(3)Definitions In this subsection: #####

(A)The terms “mentor firm”, “protege firm” have the meanings given under section 4902 of title 10, United States Code, as amended by this section. #####

(B)The term “Mentor-Protege Program” means the Mentor-Protege Program established under section 4902 of title 10, United States Code, as amended by this section. ####

(4)Termination The pilot program established under paragraph

(1)shall terminate on the date that is five years after the date on which the pilot program is established. ###

(e)Conforming Amendments ####

(1)Buy indian act Section 23(a)(2) of the Act of June 25, 1910 (commonly known as the “Buy Indian Act”) (36 Stat. 861, 25 U.S.C. 47(a)(2)) is amended by striking “section 831(c) of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note; Public Law 101-510)” and inserting “section 4902(c) of title 10, United States Code”. ####

(2)Small business act Section 8(d)(12) of the Small Business Act (15 U.S.C. 637(d)(12)) is amended— #####

(A)by striking “the pilot Mentor-Protege Program established pursuant to section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note)” and inserting “the Mentor-Protege Program established under section 4902 of title 10, United States Code,”; and #####

(B)by striking “subsection (g)” and inserting “subsection (f)”. ###

(f)Regulations Not later than December 31, 2023, the Secretary of Defense shall issue regulations for carrying out section 4902 of title 10, United States Code, as amended by this section. ###

(g)Agreements Under Pilot Program **[**[10 U.S.C. 4902 note](/us/usc/t10/s4902)**]** The amendments made by this section shall not apply with respect to any agreement entered into under the program as established under section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1607) before the date of the enactment of this Act.

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