N.Y. State Finance Law § 147: Mentor-protege program

§ 147. Mentor-protege program. 1. In every state agency, department

and authority which has let more than ten million dollars in service and

construction contracts in the prior fiscal year, the chief executive

officer of that agency, department or authority shall develop a

mentor-protege program to foster long-term relationships between

approved mentor firms, and small business concerns and minority and

women-owned businesses certified pursuant to article fifteen-A of the

executive law, in order to enhance the capabilities of small and

minority and women-owned business concerns, improve their success in

contracting with the state or receiving subcontracts under a state

contract, and to create sources of reliable contractors and

subcontractors ready to perform larger jobs and responsibilities.

Participation in the program shall be voluntary for both the mentor firm

and the protege firm.

2. The chief executive officer of each agency, department or

authority, in consultation with the division of minority and women's

business development and the division for small-business shall develop

requirements for:

(a) approval of contractors participating in the program established

pursuant to subdivision one of this section, to be known, for the

purposes of such program, as "mentor firms". Mentor firms must

demonstrate commitment and ability to assist protege firms, including

favorable financial health, good character, and experience in

contracting with the state. Once approved, a mentor firm must annually

certify that it continues to possess good character and a favorable

financial position. Incentives for mentor firms to participate in the

program may include: (i) where contracts are awarded by best value,

additional evaluation points as specified in the request for proposal;

and (ii) where protege firms are certified minority and women-owned

businesses, credit towards fulfillment of minority and women-owned

business participation requirements, including without limitation

additional credit towards fulfillment of minority and women-owned

business subcontracting participation goals based on costs incurred by a

mentor firm in providing assistance to a certified minority and

women-owned business protege firm.

(b) approval for small and certified minority and women-owned business

concerns receiving assistance under the program established pursuant to

subdivision one of this section, to be known, for the purposes of such

program, as "protege firms". A protege firm may have only one mentor at

a time and may participate in the mentor-protege program for a maximum

of five years.

(c) a process by which each mentor firm, before providing assistance

to a protege firm under the program, shall enter into a mentor-protege

agreement regarding the assistance to be provided by the mentor firm,

for a period as determined by the chief executive officer of the agency,

department or authority. A mentor firm may provide a protege firm with

assistance and training in general business management; financial

management, engineering, safety and technical matters; bonding

assistance or bonding waivers; subcontracts; rent-free use of facilities

and/or equipment; joint venture arrangements; and any other assistance

as determined by the chief executive officer of the agency, department

or authority. Mentor-protege agreements shall be approved by the chief

executive officer of the agency, department or authority, and shall

provide that either party may terminate the agreement with thirty days

advance notice and notice to the chief executive officer. No

determination of affiliation or control may be found between a protege

firm and its mentor firm based on the mentor-protege agreement or any

assistance provided pursuant to such agreement.