[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR26.35]

[Page 291-292]
 
                        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-prot[eacute]g[eacute] 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 292]]

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-
prot[eacute]g[eacute]'' 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-prot[eacute]g[eacute] program are eligible 
to participate in the mentor-prot[eacute]g[eacute] program.
    (2) During the course of the mentor-prot[eacute]g[eacute] 
relationship, you must:
    (i) Not award DBE credit to a non-DBE mentor firm for using its own 
prot[eacute]g[eacute] 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 
prot[eacute]g[eacute] firm for more than every other contract performed 
by the prot[eacute]g[eacute] firm.
    (3) For purposes of making determinations of business size under 
this part, you must not treat prot[eacute]g[eacute] firms as affiliates 
of mentor firms, when both firms are participating under an approved 
mentor-prot[eacute]g[eacute] program. See Appendix D of this part for 
guidance concerning the operation of mentor-prot[eacute]g[eacute] 
programs.
    (c) Your BDPs and mentor-prot[eacute]g[eacute] programs must be 
approved by the concerned operating administration before you implement 
them. Once approved, they become part of your DBE program.