(a) Qualified HUBZone SBCs may enter into Mentor-Proteegee relationships in connection with other Federal programs, provided that such relationships do not conflict with the underlying HUBZone requirements.
(b) For purposes of determining whether an applicant to the HUBZone Program or a HUBZone SBC qualifies as small under part 121 of this chapter, SBA will not find affiliation between the applicant or qualified HUBZone SBC and the firm that is its mentor in a Federally-approved mentor-Proteegee relationship (including a mentor that is other than small) on the basis of the mentor-Proteegee agreement.
(c)(1) A qualified HUBZone SBC that is a prime contractor on a HUBZone contract may team with and subcontract work to its mentor.
(1) A qualified HUBZone SBC that is a prime contractor on a HUBZone contract may team with and subcontract work to its mentor.
(i) The HUBZone SBC must meet the applicable performance of work requirement set forth in Sec. 125.6(b) of this chapter.
(ii) SBA may find affiliation between a prime HUBZone contractor and its mentor subcontractor where the mentor will perform primary and vital requirements of the contract. See Sec. 121.103(f)(4) of this chapter.
(2) A qualified HUBZone SBC may not joint venture with its mentor on a HUBZone contract unless the mentor is also a qualified HUBZone SBC. [69 FR 29427, May 24, 2004]