Since 1991, Congress has renewed the Pentagon's Mentor-Protégé Program (MPP) as a pilot. The program pairs established defense contractors with small businesses for mutually beneficial gains. After an in-depth look from outside business experts, the Defense Business Board (DBB) is recommending Congress make the program permanent once DoD makes some tweaks. Farooq Mitha, director of DoD’s Office of Small Business Programs, told the DBB on Aug. 9 that small business involvement in Pentagon contracting is important as ever. But smaller businesses struggle finding access with DoD’s extra security measures and oversight - thus contracting with small businesses is on the decline. Regulations are necessary, but sometimes prohibitive to small businesses and exemplify the need for the MPP. The DBB study found MPP had a positive impact on helping small businesses work with DoD through larger businesses. MPP surveys between 2012-21 show "significant increases" in revenues, contract awards, and employment at the protégé firms,” the report states. MPP allows mentors to pay protégés, which DoD reimburses (about $30M over the last few years). Mentors can award non-competitive subcontracts to protégés and lend money to the smaller firms. The goal is to “provide incentives" for larger businesses to enhance the capabilities of disadvantaged small business concerns to perform as subcontractors and suppliers. Mitha noted there's been a bump in the number of innovative technologies added to DoD’s repertoire by these companies. (Source: Federal News Network 08/10/22) Pentagon advisers want DoD to build out agreements between small and large defense businesses | Federal News Network
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