1. Washington Metropolitan Area District Office Purpose of MP Agreements: The purpose of the mentor/protégé relationship is to: 1. enhance the capabilities of the protégé, 2. assist the protégé with meeting the goals established in its SBA-approved business plan, and 3. to improve its ability to successfully compete for contracts.

2. Washington Metropolitan Area District Office MP Agreement Differences: Mentor could have multiple protégés but a protégé was limited to a single mentor A mentor may have up to three protégés A Protégé can have a 2d Mentor given some exceptions (we’ll go through these later)

3. Washington Metropolitan Area District Office MPA Differences Cont. Only for profits could be mentors Non profits can be mentors, in addition to: firms that have graduated from the 8(a) BD program; firms that are in the transitional stage of program participation; other small businesses; and large businesses.

4. Washington Metropolitan Area District Office To qualify as a Mentor, it must demonstrate that: 1. Possesses favorable financial health; a. Must submit for review copies of Federal Tax returns submitted to the IRS, or b. audited financial statements for the past three years 2. Possesses good character; 3. Does not appear on the federal list of debarred or suspended contractors; and

5. Washington Metropolitan Area District Office 4. Can impart value to a protégé firm due to lessons learned and practical experience gained because of the 8(a) BD program, or through its knowledge of general business operations and government contracting.

6. Washington Metropolitan Area District Office Mentors: Generally,1 protégé at a time. However, the AA/BD may authorize a concern or non-profit to mentor more than one protégé at a time.

7. Washington Metropolitan Area District Office When can there be more than 1 Protégé? Where the Mentor firm can demonstrate that the additional mentor/protégé relationship will not adversely affect the development of either protégé firm (e.g., the second firm may not be a competitor of the first firm). If there is more than one protégé, then the BDS must list the name of the firm and the NAICS code Under no circumstances will a mentor be permitted to have more than three protégés at one time.

8. Washington Metropolitan Area District Office Only firms that are in good standing in the 8(a) BD program (e.g., firms that do not have termination or suspension proceedings against them, and are up to date with all reporting requirements) may qualify as a protégé. A protégé firm may generally have only one mentor at a time. However, there are exceptions.

9. Washington Metropolitan Area District Office When can a Protégé have more than 1 Mentor at a time? The AA/BD may approve a second mentor for a particular protégé firm where: 1. The second relationship pertains to an unrelated, secondary NAICS code; 2. The protégé firm is seeking to acquire a specific expertise that the first mentor does not possess; and 3. The second relationship will not compete or otherwise conflict with the business development assistance set forth in the first mentor/protégé relationship.

10. Washington Metropolitan Area District Office A protégé may not become a Mentor and retain its protégé status. The protégé must terminate its mentor/ protégé agreement with its Mentor before it will be approved as a Mentor to another 8(a) Participant. SBA will not approve a mentor/ protégé relationship for an 8(a) Participant with less than six months remaining in its program term.

11. Washington Metropolitan Area District Office Benefits of a MPA: 1. A mentor and protégé may joint venture as a small business for any government prime contract or subcontract, including procurements with a dollar value less than half the size standard corresponding to the assigned NAICS code and 8(a) sole source contracts, provided the protégé qualifies as small for the procurement and, for purposes of 8(a) sole source requirements, the protégé has not reached the dollar limit set forth in § 124.519.