Benefits of dod mentor protege program

Congress authorized the Pilot Mentor Protege Program to boost the participation of small disadvantaged businesses as subcontractors and suppliers under Department of Defense DOD contracts.

The program provides incentives for major defense contractors mentors to assist small disadvantaged businesses proteges in strengthening their ability to compete for work. However, DOD has been criticized for not establishing compelling evidence about the program's overall effectiveness.

This report reviews 1 the relationship between the results of the Mentor-Protege Program and the statutory goal of awarding five percent of the total dollar amount contracted by DOD and subcontracted by DOD prime contractors to small disadvantaged businesses; 2 whether the Mentor-Protege Program enhanced the business competitiveness, financial independence, and business development of protege firms; and 3 whether program funds had been used as an effective incentive for mentor firms to participate in the program.

DOD lacks enough information to determine the relationship between the program and the goal of awarding five percent of the total dollar amount contracted to small disadvantaged businesses. While the general cap is for one mentor at a time, SBA may approve a second so long as the additional mentor will provide unique forms of assistance.

Money is likely the most obvious reason for mentors to participate in the program. And that is just defense. Each joint venture agreement must contain provisions stating that the small business owns at least 51 percent of the joint venture entity. Additionally, profits of the joint venture must be commensurate to the work performed. Money aside, there are several other benefits that may come with being a mentor. First, mentors gain a valuable opportunity to directly engage with possible acquisition targets.

This knowledge not only facilitates other due diligence efforts, but it could also help smooth any post-acquisition transitions. These are just the overarching categories; with a wide range of assistance opportunities within each category.

Startups traditionally thrive by bringing new and innovative products or services to a market. Not only does this help a company gauge the pulse of new business activity, but it also fosters internal growth and development through interactions with these innovative products and services. But these are not the only benefits.

One form of mentor assistance is drafting, compiling or providing corporate documents such as record retention policies, annual review forms or proposal templates. What should an internal audit process look like? What system should be used to adequately document and track contract deadlines? Mentors can help alleviate many of these concerns. Here, mentors can provide lessons learned as well as best practices for pursuing contract opportunities.