[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR26.35]

[Page 271-272]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 26_PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN DEPARTMENT 
OF TRANSPORTATION FINANCIAL ASSISTANCE PROGRAMS--Table of Contents
 
  Subpart B_Administrative Requirements for DBE Programs for Federally-
                          Assisted Contracting
 
Sec. 26.35  What role do business development and mentor-protege programs 
have in the DBE program?

    (a) You may or, if an operating administration directs you to, you 
must establish a DBE business development program (BDP) to assist firms 
in gaining the ability to compete successfully

[[Page 272]]

in the marketplace outside the DBE program. You may require a DBE firm, 
as a condition of receiving assistance through the BDP, to agree to 
terminate its participation in the DBE program after a certain time has 
passed or certain objectives have been reached. See Appendix C of this 
part for guidance on administering BDP programs.
    (b) As part of a BDP or separately, you may establish a ``mentor-
protege'' program, in which another DBE or non-DBE firm is the principal 
source of business development assistance to a DBE firm.
    (1) Only firms you have certified as DBEs before they are proposed 
for participation in a mentor-protege program are eligible to 
participate in the mentor-protege program.
    (2) During the course of the mentor-protege relationship, you must:
    (i) Not award DBE credit to a non-DBE mentor firm for using its own 
protege firm for more than one half of its goal on any contract let by 
the recipient; and
    (ii) Not award DBE credit to a non-DBE mentor firm for using its own 
protege firm for more than every other contract performed by the protege 
firm.
    (3) For purposes of making determinations of business size under 
this part, you must not treat protege firms as affiliates of mentor 
firms, when both firms are participating under an approved mentor-
protege program. See Appendix D of this part for guidance concerning the 
operation of mentor-protege programs.
    (c) Your BDPs and mentor-protege programs must be approved by the 
concerned operating administration before you implement them. Once 
approved, they become part of your DBE program.