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116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-310
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DEPARTMENT OF HOMELAND SECURITY MENTOR-PROTEGE PROGRAM ACT OF 2019
_______
November 22, 2019.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
[To accompany H.R. 4727]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 4727) to amend the Homeland Security Act of 2002
to establish a mentor-protege program, and for other purposes,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and
Tax Expenditures............................................... 3
Federal Mandates Statement....................................... 3
Statement of General Performance Goals and Objectives............ 3
Duplicative Federal Programs..................................... 3
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits.......................................................
Advisory Committee Statement.....................................
Applicability to Legislative Branch..............................
Section-by-Section Analysis of the Legislation................... 4
Changes in Existing Law Made by the Bill, as Reported............ 5
Purpose and Summary
H.R. 4727, the ``Department of Homeland Security Mentor-
Protege Program Act of 2019,'' encourages large business prime
contractors to mentor small businesses to help position them to
effectively compete for future federal government contracts.
This bill seeks to authorize the Department of Homeland
Security's (DHS) mentor protege program in which large business
prime contractors (mentor firms) provide assistance to small
businesses (protege firms). The mentor protege program has been
in existence at DHS since 2003 but has not been codified in
law. Today, the mentor protege program incentivizes large
businesses to provide developmental assistance and
subcontracting opportunities to small businesses. Mentor firms
are encouraged to offer technical, managerial, and financial
assistance to protege firms through incentives, such as
additional credit when being evaluated for future DHS
contracts. The firms participating in the program commit to
working in a mentor/protege relationship for a period of no
less than three years, fostering the establishment of long-term
business relationships between large and small businesses. To
ensure that Congress monitors the effectiveness of the program,
the bill requires DHS to report annually to Congress on program
participation, including the benefits provided to small
business participants.
Background and Need for Legislation
The Federal trend towards favoring government-wide vehicles
for procurements has implications on the availability of
contracting opportunities for small businesses.\1\ While
government-wide small business contracting goals as a
percentage of overall procurements are generally met,\2\ the
number of small businesses receiving prime contracts hit a 10
year low in 2018.\3\ Specifically, Federal agencies awarded
contracts to 32 percent fewer small businesses in fiscal year
2018 than in fiscal year 2009.\4\ In contrast, the number of
large vendors only fell by 4 percent.\5\ The mentor protege
program is necessary to increase the ability of small
businesses to compete for prime contracts and foster innovation
and job growth. Building the capacity of small businesses
increases the pool of qualified vendors to fulfill the
Department of Homeland Security's contracting needs and enhance
America's security.
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\1\Jason Miller, Number of small business prime contractors down by
25 percent since 2010, Federal News Network, October 16, 2017, https://
federalnewsnetwork.com/reporters-notebook-jason-miller/2017/10/number-
of-small-business-prime-contractors-down-by-25-percent-since-2010/
(accessed November 20, 2019).
\2\Small Business Administration, Federal Government Achieves Small
Business Contracting Goal for Sixth Consecutive Year with Record-
Breaking $120 Billion to Small Businesses, June 25, 2019, https://
www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/
federal-government-achieves-small-business-contracting-goal-sixth-
consecutive-year-record-breaking (accessed November 18, 2019).
\3\Bloomberg Government, Federal Supplier Base Continued to Shrink
in Fiscal 2018, May 23, 2019, https://news.bloombergenvironment.com/
federal-contracting/federal-supplier-base-continued-to-shrink-in-
fiscal-2018 (accessed November 17, 2019).
\4\Ibid.
\5\Ibid.
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Hearings
For the purposes of section 103(i) of H. Res 6. of the
116th Congress, the following hearing was used to develop H.R.
4727:
On May 9, 2019, the Committee held a hearing
entitled ``FEMA Contracting: Reviewing Lessons Learned
from Past Disasters to Improve Preparedness.'' The
Committee received testimony from Brian Kamoie,
Associate Administrator for Mission Support, Federal
Emergency Management Agency; Marie Mak, Director,
Contracting and National Security Acquisitions,
Government Accountability Office; and Katherine
Trimble, Deputy Assistant Inspector General for Audits,
Department of Homeland Security Office of Inspector
General.
Committee Consideration
The Committee met on October 23, 2019, with a quorum being
present, to consider H.R. 4727 and ordered the measure to be
reported to the House with a favorable recommendation, without
amendment, by unanimous consent.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto.
No recorded votes were requested during consideration of
H.R. 4727.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee advises that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Congressional Budget Office Estimate New Budget Authority, Entitlement
Authority, and Tax Expenditures
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received a cost estimate for this bill from the
Director of Congressional Budget Office.
Federal Mandates Statement
An estimate of Federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Duplicative Federal Programs
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 4727 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the objective of H.R. 4727 is to
increase the ability of small businesses to compete for federal
government contracts and thereby expand the pool of qualified
vendors to fulfill the Department of Homeland Security's
contracting needs.
Advisory on Earmarks
In compliance with rule XXI of the Rules of the House of
Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of the rule
XXI.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides that this bill may be cited as the
``Department of Homeland Security Mentor-Protege Program Act of
2019.''
Sec. 2. Department of Homeland Security mentor-protege program
This section amends title VIII of the Homeland Security Act
of 2002 to authorize a mentor protege program within the
Department of Homeland Security (DHS or Department) under which
a mentor firm enters into an agreement with a protegee firm for
the purpose of assisting the protegee firm to compete for prime
contracts and subcontracts of the Department.
This section requires the Secretary of Homeland Security
to:
(1) establish eligibility criteria for mentor and protege
firms; and
(2) establish a process for mentor and protege firms to
jointly submit applications to participate in the program that
include--
(a) a description of the assistance to be provided by
the mentor firm;
(b) a schedule with milestones to achieve the
assistance to be provided;
(c) an estimate of the costs to be incurred by the
mentor firm for providing assistance;
(d) a commitment to submit reports to the Secretary
to assist in evaluating the protege's developmental
progress; and
(e) a commitment to inform the Secretary of a change
in participation eligibility or voluntary withdrawal.
This section also requires the head of DHS's Office of
Small and Disadvantaged Business Utilization to notify
applicants of approval or disapproval, and in the case of
disapproval, the process for resubmitting an application. The
head of the Office of Small and Disadvantaged Business
Utilization may rescind the approval of an application if in
the best interest of the Department.
This section requires that mentor and protege firms
participate in the program for not less than 36 months. This
section allows mentor firms to receive benefits including
evaluation credit during the selection process when competing
for DHS contracts. A protege firm may receive technical,
managerial, financial, or any other mutually agreed upon
benefits from a mentor firm, including a subcontract award.
Further, the Secretary may identify additional benefits to be
provided.
Not later than one year after the date of the enactment of
this Act, and annually thereafter, the head of the Office of
Small and Disadvantaged Business Utilization shall submit to
the Committees on Homeland Security and Small Business of the
House of Representatives a report that:
(1) identifies each agreement between a mentor firm and a
protege firm, including the number of protege firms that are
small business concerns, small business concerns owned and
controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, qualified HUBZone
small business concerns, small business concerns owned and
controlled by socially and economically disadvantaged
individuals, women-owned small business concerns, historically
Black colleges and universities, and minority institutions of
higher education;
(2) describes the type of assistance provided by mentor
firms;
(3) identifies contracts within the Department in which a
mentor firm serving as the prime contractor provided
subcontracts to a protege firm under the mentor-protege
program; and
(4) assesses the degree to which there has been--
(a) an increase in the technical capabilities of
protege firms; and
(b) an increase in the quantity and estimated value
of prime contract and subcontract awards to protege
firms for the period covered by the report.
The bill encourages the participation of Historically Black
Colleges and Universities in the program, as is allowed in
other mentor-protege programs at other Federal agencies, such
as the National Aeronautics and Space Administration. The
Committee believes that this program, as strengthened under
this Act, can help reverse the downward trend in the number of
small businesses participating in federal contracting.\6\
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\6\Ibid.
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Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Homeland
Security Act of 2002''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle H--Miscellaneous Provisions
Sec. 871. Advisory committees.
* * * * * * *
Sec. 890A. Cyber crimes center, child exploitation investigations unit,
computer forensics unit, and cyber crimes unit.
Sec. 890B. Mentor-protege program.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle H--Miscellaneous Provisions
* * * * * * *
SEC. 890B. MENTOR-PROTEGE PROGRAM.
(a) Establishment.--There is established in the Department a
mentor-protege program (in this section referred to as the
``Program'') under which a mentor firm enters into an agreement
with a protege firm for the purpose of assisting the protege
firm to compete for prime contracts and subcontracts of the
Department.
(b) Eligibility.--The Secretary shall establish criteria for
mentor firms and protege firms to be eligible to participate in
the Program, including a requirement that a firm is not
included on any list maintained by the Federal Government of
contractors that have been suspended or debarred.
(c) Program Application and Approval.--
(1) Application.--The Secretary, acting through the
Office of Small and Disadvantaged Business Utilization
of the Department, shall establish a process for
submission of an application jointly by a mentor firm
and the protege firm selected by the mentor firm. The
application shall include each of the following:
(A) A description of the assistance to be
provided by the mentor firm, including, to the
extent available, the number and a brief
description of each anticipated subcontract to
be awarded to the protege firm.
(B) A schedule with milestones for achieving
the assistance to be provided over the period
of participation in the Program.
(C) An estimate of the costs to be incurred
by the mentor firm for providing assistance
under the Program.
(D) Attestation that Program participants
will submit to the Secretary reports at times
specified by the Secretary to assist the
Secretary in evaluating the protege firm's
developmental progress.
(E) Attestations that Program participants
will inform the Secretary in the event of
change in eligibility or voluntary withdrawal
from the Program.
(2) Approval.--Not later than 60 days after receipt
of an application pursuant to paragraph (1), the head
of the Office of Small and Disadvantaged Business
Utilization shall notify applicants of approval or, in
the case of disapproval, the process for resubmitting
an application for reconsideration.
(3) Rescission.--The head of the Office of Small and
Disadvantaged Business Utilization may rescind the
approval of an application under this subsection if it
determines that such action is in the best interest of
the Department.
(d) Program Duration.--A mentor firm and protege firm
approved under subsection (c) shall enter into an agreement to
participate in the Program for a period of not less than 36
months.
(e) Program Benefits.--A mentor firm and protege firm that
enter into an agreement under subsection (d) may receive the
following Program benefits:
(1) With respect to an award of a contract that
requires a subcontracting plan, a mentor firm may
receive evaluation credit for participating in the
Program.
(2) With respect to an award of a contract that
requires a subcontracting plan, a mentor firm may
receive credit for a protege firm performing as a first
tier subcontractor or a subcontractor at any tier in an
amount equal to the total dollar value of any
subcontracts awarded to such protege firm.
(3) A protege firm may receive technical, managerial,
financial, or any other mutually agreed upon benefit
from a mentor firm, including a subcontract award.
(4) Any other benefits identified by the Secretary.
(f) Reporting.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the head of the
Office of Small and Disadvantaged Business Utilization shall
submit to the Committees on Homeland Security and Small
Business of the House of Representatives a report that--
(1) identifies each agreement between a mentor firm
and a protege firm entered into under this section,
including number of protege firm participants that
are--
(A) small business concerns;
(B) small business concerns owned and
controlled by veterans;
(C) small business concerns owned and
controlled by service-disabled veterans;
(D) qualified HUBZone small business
concerns;
(E) small business concerns owned and
controlled by socially and economically
disadvantaged individuals;
(F) women-owned small business concerns;
(G) historically Black colleges and
universities; and
(H) minority institutions of higher
education;
(2) describes the type of assistance provided by
mentor firms to protege firms;
(3) identifies contracts within the Department in
which a mentor firm serving as the prime contractor
provided subcontracts to a protege firm under the
Program; and
(4) assesses the degree to which there has been--
(A) an increase in the technical capabilities
of protege firms; and
(B) an increase in the quantity and estimated
value of prime contract and subcontract awards
to protege firms for the period covered by the
report.
(g) Definitions.--In this section:
(1) Historically black college or university.--The
term ``historically Black college or university'' means
any of the historically Black colleges and universities
referred to in section 2323 of title 10, United States
Code, as in effect on March 1, 2018.
(2) Mentor firm.--The term ``mentor firm'' means a
for-profit business concern that is not a small
business concern that--
(A) has the ability to assist and commits to
assisting a protege to compete for Federal
prime contracts and subcontracts; and
(B) satisfies any other requirements imposed
by the Secretary.
(3) Minority institution of higher education.--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) of the Higher Education Act of 1965 (20 U.S.C.
1058(b)).
(4) Protege firm.--The term ``protege firm'' means a
small business concern, a historically Black college or
university, or a minority institution of higher
education that--
(A) is eligible to enter into a prime
contract or subcontract with the Department;
and
(B) satisfies any other requirements imposed
by the Secretary.
(5) Small business act definitions.--The terms
``small business concern'', ``small business concern
owned and controlled by veterans'', ``small business
concern owned and controlled by service-disabled
veterans'', ``qualified HUBZone small business
concern'', and ``small business concern owned and
controlled by women'' have the meaning given such
terms, respectively, under section 3 of the Small
Business Act (15 U.S.C. 632). 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)).
* * * * * * *
[all]
