Tribal voices weigh In: SBA consultation highlights 8(a) Program, joint ventures, and Mentor-Protégé oversight

The U.S. Small Business Administration (SBA) hosted a Tribal Consultation Session on June 13 in Anchorage, Alaska on the heels of the National 8(a) Association’s Regional Conference. After attending the meeting virtually, we wanted to provide a summary of the meeting for those that were not able to attend. 

SBA was represented by the following officials:

• Diane Cullo, Assistant Administrator, Office of Native American Affairs
• John Klein, Deputy General Counsel, Office of General Counsel
• Apollo Fuhriman, Regional Administrator, Pacific Northwest Regional Office
• Erica C. Rivera, Deputy District Director, Alaska District Office
• Francine Morris, Director of Government Contracting

SBA was in listening mode for much of this consultation session, following a brief outline of the issues of concern, and officials asked follow-up questions of commenters throughout the meeting. The agency invited comments from tribes, Alaska Native Corporations (ANCs), and Native Hawaiian Organizations (NHOs), via oral testimony in-person at the meeting and/or via written comment submissions (due by June 30, 2025 at 5pm Alaska Daylight Time/9pm EDT)click this link for instructions on how to submit written commentary.

Update: In response to requests for an extension, SBA’s Assistant Administrator for the Office of Native American Affairs, Diane Cullo, extended the deadline for written comment submissions to 5pm AKST on July 13, 2025.

SBA requested topics

 In the Federal Register announcement regarding the consultation session, SBA specifically requested comments and input on:

• how the 8(a) Program is working for entity-owned firms, including:
  1. suggestions on potential avenues for making the 8(a) Program more efficient
  2. suggestions for reducing the regulatory burden on participants
• best practices for how entity-owned small businesses have been able to successfully market their sophisticated capabilities while still making clear to procuring agencies that they are independent small businesses.
• how to ensure the Mentor Protégé Program is “operating as intended,” including:
  1. whether protégé firms can truly direct and manage mentor firms when performing a joint venture mentor protégé joint venture project.
  2. SBA stated: "It has come to SBA’s attention that some mentors that have pre-existing relationships with certain procuring agencies do not include protégé firms in critical meetings with those agencies, despite the protégé being the project manager of the joint venture. SBA believes that this is contrary to the intent of the mentor-protégé program. Protégé firms should be the ones directing the actions of a mentor-protégé joint venture, not the mentor. SBA is concerned that this may also lead to instances of non-compliance with the limitations on subcontracting requirements." (Link to Federal Register Notice)

Additional feedback from attendees:

Concerns regarding FAR 2.0 impact on small businesses

One recurring concern of attendees was a request that the SBA advocate for small businesses in the current administration’s promise for FAR 2.0. Commenters were concerned that SBA was not being included properly in the FAR rewrites, and, as a result, that small business rules, preferences, and priorities may be overlooked or eliminated. 

Support for Rule of Two

Several commenters specifically requested that the SBA advocate for keeping the “Rule of Two” in any revisions to the FAR and procurement rules generally. Commenters expressed concern that eliminating or shrinking the Rule of Two would have major negative effects on the number, scope, and quality of small business procurement opportunities offered by the federal government.   

Bona fide place of business rule

Several commenters advocated for the continued moratorium (or elimination of) the bona fide place of business (BFPB) rule applicable to 8(a) construction contracts. Commenters expressed concern about the costs to prospective bidders of establishing such offices to meet requirements prior to bid submission. However, one commenter offered support for the BFPB rule, stating that it helped his company be more competitive in their “home” state and local markets. SBA reminded attendees that this BFPB rule is imposed by statute, so SBA does not have the power to eliminate it, but welcomed comments on how to improve rules to implement the statutory mandate.

Request for more staffing and training of SBA officials

A few commenters expressed support for SBA staffers’ attempts to provide good service despite staffing challenges, but also requested that SBA consider increasing staffing for offices with higher caseloads per employee. Commenters also requested increased training for SBA officials given the recent high turnover at SBA and influx of newer, less experienced people who are less familiar with SBA rules, procedures, and policies, as well as unfamiliar with rules applicable to entity-owned businesses. One commenter requested that SBA brief/train agency procurement officials on how entity-owned firms are different to mitigate prejudice and misapplication of SBA rules.

Mentor Protégé Program concerns

One commenter suggested that SBA consider a pre-approved mentor process (or disapproved mentor list) to address the problem of repeat bad-actor mentors abusing the SBA’s Mentor Protégé Program; several commenters expressed support this idea. SBA official Klein asked for comments on whether a protégé could successfully lead a mentor-protégé JV contract that was previously performed by the mentor as an incumbent, which prompted concerns that SBA may still be looking for ways to limit the scope of mentor-protégé joint venture opportunities.  Similarly, SBA had previously asked for comments on whether mentor-protégé JVs should be barred from bidding on multiple award contract set-asides, where some perceived an unfair need for such JV partnerships to be competitive.  Commenters expressed concern that SBA not “throw the baby out with the bath water,” as the Mentor Protégé Program and joint venture opportunities were vital to small business and 8(a) firm business development.

SBA stated that it would make a transcript of this meeting available at a later date.

If you have questions regarding these issues or would like assistance in preparing official comments to the SBA, please contact attorney Carissa Siebeneck Anderson.

Click here for instructions on how to submit written comments by the July 13 deadline.

^{According to the Federal Register Notice: You may submit written comments to SBA by sending them to Diane Cullo, Assistant Administrator, Office of Native American Affairs, U.S. Small Business Administration, 409 3rd Street SW, Washington, DC 20416; or Diane.Cullo@sba.gov; or Facsimile to (202) 481-2177. If you wish to submit confidential business information (CBI), please submit the information to Diane Cullo, Assistant Administrator, Office of Native American Affairs, U.S. Small Business Administration, 409 3rd Street SW, Washington, DC 20416 and highlight the information that you consider to be CBI and explain why you believe this information should be held confidential. SBA will review the information and make a final determination of whether the information will be published or not.}