PUBLIC LAW 101-510—NOV. 5, 1990 104 STAT. 1609 (3) Procedures for the mentor firm or protege firm to terminate the agreement voluntarily and for the mentor firm to terminate the agreement for cause. (f) FORMS OF ASSISTANCE. — A mentor firm may provide a protege firm the following: (1) Assistance, by using mentor firm personnel, in— (A) general business management, including organizational management, financial management, and personnel management, marketing, business development, and overall business planning; (B) engineering and technical matters such as production, inventory control, and quality Eissurance; and (C) any other assistance designed to develop the capabilities of the protege firm under the developmental program referred to in subsection (e). (2) Award of subcontracts on a noncompetitive basis to the protege firm under the Department of Defense or other contracts. (3) Payment of progress payments for performance of the protege firm under such a subcontract in amounts as provided for in the subcontract, but in no event may any such progress payment exceed 100 percent of the costs incurred by the protege firm for the performance. (4) Advance pa5ntnents under such subcontracts. (5) Loans. (6) Cash in exchange for an ownership interest in the protege firm, not to exceed 10 percent of the total ownership interest. (7) Assistance obtained by the mentor firm for the protege firm from one or more of the following— (A) small business development centers established pursuant to section 21 of the Small Business Act (15 U.S.C. 648); (B) entities providing procurement technical assistance pursuant to chapter 142 of title 10, United States Code; or (C) a historically Black college or university or a minority institution of higher education. (g) INCENTIVES FOR MENTOR FIRMS. —(1) The Secretary of Defense shall provide to a mentor firm reimbursement for the total amount of any progress payment or advance payment made under the program by the mentor firm to a protege firm in connection with a Department of Defense contract awarded the mentor firm. (2) The Secretary of Defense shall provide to a mentor firm reimbursement for the costs of the assistance furnished to a protege firm pursuant to paragraphs (1) and (7) of subsection (f). The Secretary shall ensure that provision for payment of reimbursements under this paragraph is made in a Department of Defense contract awarded to the mentor firm to provide products or services or in another contract entered into between the Secretary and the mentor firm providing for the reimbursement of costs incurred under the program. Any such contract shall specify the maximum amount of any reimbursement to be made under that contract. The Secretary and the mentor firm may provide in such contract for the allocation of the costs to any Department of Defense cost-reimbursement contracts awarded the mentor firm. (3)(A) Costs incurred by a mentor firm in providing assistance to a Credit. protege firm that are not reimbursed pursuant to paragraph (2) may be recognized as credit in lieu of subcontract awards for purposes of Government contracts. 39-194O-91-9:QL3Part3
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