[Federal Register Volume 59, Number 21 (Tuesday, February 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2180]
[[Page Unknown]]
[Federal Register: February 1, 1994]
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DEPARTMENT OF DEFENSE
Defense Logistics Agency Cooperative Agreement Revised Procedures
AGENCY: Defense Logistics Agency, Department of Defense.
ACTION: Cooperative agreements; proposed revised procedures.
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SUMMARY: This proposed revised procedure implements title 10, chapter
142, United States Code, as amended, which authorizes the Secretary of
Defense, acting through the Director, Defense Logistics Agency (DLA),
to enter into cost sharing cooperative agreements to support
procurement technical assistance programs established by state and
local governments, private nonprofit organizations, Tribal
organizations, and Indian-owned economic enterprises. Subpart III of
this issuance establishes the proposed administrative procedures to be
implemented by DLA to enter into such agreements for this purpose.
EFFECTIVE DATE: March 4, 1994.
FOR FURTHER INFORMATION CONTACT:
Mr. Sim Mitchell, Program Manager, Office of Small and Disadvantaged
Business Utilization (AQAU), Defense Logistics Agency, Cameron Station,
Alexandria, VA 22304-6100, telephone (703) 274-6471.
SUPPLEMENTARY INFORMATION:
I. Background Information
The Department of Defense (DoD) efforts to increase competition in
the private sector have been supplemented by many state and local
governments and other entities which operate procurement technical
assistance (PTA) programs. The DoD PTA Program provides assistance to
eligible entities by sharing the cost of establishing new and/or
maintaining existing PTA programs. The PTA program is designed to
expand the DoD industrial base and increase competition for its
requirements for goods and services, thereby reducing the cost of
maintaining a strong national security.
The PTA Cooperative Agreement Program was established by the Fiscal
Year (FY) 1985 DoD Authorization Act, Public Law 98-525. The Public Law
amended title 10, United States Code (USC), by adding chapter 142.
Title 10, USC, as amended, continues to authorize the Secretary of
Defense, acting through the Director, Defense Logistics Agency (DLA),
to enter into cost sharing cooperative agreements with state and local
governments, other nonprofit entities, Tribal organizations and Indian
economic enterprises (hereafter referred to as eligible entities as
defined in Section 3 of this procedure) to establish and conduct PTA
programs.
The FY DoD Authorization Act authorized a total of $12 million to
support the program during FY 94. Of this total, $600,000 is available
for Indian programs only.
Limitations placed on these funds are:
(a) DoD's share of an eligible entity's net program cost (NPC)
shall not exceed 50%, unless the eligible entity/recipient proposes to
cover a distressed area. If the eligible entity/recipient proposes to
cover a distressed area, the DoD share may be increased to an amount
not to exceed 75%. In no event shall DoD's share of NPC exceed $150,000
for programs providing less than statewide coverage or $300,000 for
programs providing statewide coverage.
(b) For the Indian Program, DoD's share of NPC shall not exceed 75%
of $150,000, whichever is less, for programs providing services on a
reservation(s) within one Bureau of Indian Affairs (BIA) service area.
For programs providing services to 100% of the reservations within one
BIA service area and at least 50% of the reservations of at least one
additional BIA service area (multi-area coverage), DoD's share of NPC
shall not exceed 75% or $300,000, whichever is less.
The purpose of the proposed revised procedure is to make available
to all eligible entities the prerequisites, policies and procedures
which will govern the award of cooperative agreements by DLA. Also,
this procedure establishes the guidelines which will govern the
administration of cooperative agreements.
Although this procedure will affect all eligible entities desiring
to enter into a DLA awarded cooperative agreement, DLA has determined
that this procedure does not involve a substantial issue of fact or
law, and that it is unlikely to have a substantial or major impact on
the Nation's economy or large numbers of individuals or businesses.
This determination is based on the fact that the proposed cooperative
agreement procedure implements policies already published by the Office
of management and Budget pursuant to title 31, chapter 63, United
States Code, Using Procurement Contracts and Grants and Cooperative
Agreements. In addition, DLA cooperative agreements will be entered
into pursuant to the authorities and restrictions contained in the
annual DoD Authorization and Appropriation Acts. Therefore, public
hearings were not conducted.
II. Other Information
The language contained in the current cooperative agreement
procedure limited the period of coverage to the FY 93 Program in that
it addressed the FY 93 Authorization Act requirements in specific
terms, including the exact dollar amounts of funding applicable to the
Program. This proposal revision to the procedure will provide general
guidance for cooperative agreements entered into by the DLA and will
become a permanent document for the duration of the FY 94 program.
Comments are invited on the procedure. Comments should be submitted
to the Defense Logistics Agency, Office of Small and Disadvantaged
Business Utilization, ATTN: AQAU, Cameron Station, Alexandria, VA
22304-6100. Comments received after 2 March 1994 may not be considered
in formulating revisions to the Procedure.
III. Proposed Revision to DLA Procedure--Cooperative Agreements
3-1 Policy
A. Proposals for cooperative agreements are obtained through the
issuance of a Defense Logistics Agency (DLA) solicitation for
cooperative agreement proposals, (hereafter referred to as a SCAP). The
contents of this procedure shall be incorporated, in whole or in part,
into the SCAP to establish administrative requirements to execute and
administer DLA awarded cooperative agreements. The SCAP may include
additional administrative requirements that are not included herein.
B. The SCAP is issued by the PTA Cooperative Agreement Program
Manager's office in the DLA Office of Small and Disadvantaged Business
Utilization. The Program Manager's office will also respond to any SCAP
questions that may arise.
C. The SCAP will become part of the applicant's offer upon
acceptance of its proposal.
D. Only one proposal will be accepted from a single eligible
entity.
E. Proposals will not be accepted from applicants which apply as
co-equal partners or joint ventures. Only one organization can take the
lead and primary responsibility for the proposed program. In other
words,only one eligible entity can submit a proposal.
F. Proposals will not be accepted from applicants who propose to
provide less than county or equivalent (i.e. parish, borough)
(hereafter referred to as county or equivalent) coverage. For example,
if an applicant proposes to service any part of a county or equivalent,
the applicant must service the entire county or equivalent.
G. Cooperative agreements will be awarded on a competitive basis
consistent with the SCAP. It is DLA's policy to encourage fair and open
competition when awarding cooperative agreements.
H. Letters of support and recommendation from Members of Congress
will not be considered in the evaluation and selection of proposals to
receive cooperative agreement awards.
I. The SCAP shall be given the widest practical dissemination. It
will be provided to all known eligible entities and to those that
request copies after its issuance. All eligible entities interested in
submitting a proposal under the SCAP will be invited to participate in
a preproposal conference. Preproposal conferences will be held at the
locations designated in the SCAP, approximately 30 calendar days prior
to the SCAP's closing date.
J. The SCAP shall not be considered to be an offer made by DoD. It
will not obligate DoD to make any awards under this Program.
K. The eligible entity is bound to perform the services described
in its offer if selected for an award, and upon its proposal being
incorporated into the cooperative agreement award document.
L. Cooperative agreement recipients will have, on file, policies
and procedures applicable to the PTA center's management control and
financial control systems.
M. DoD is not responsible for any monies expended or expenses
incurred by applicants prior to the award of a cost sharing cooperative
agreement. However, actual expenses incurred by FY 94 award recipients
to participate in a FY 94 preproposal and/or postaward training
conference may be reimbursed under the FY 94 cooperative agreement
award subject to the provisions of the applicable cost principles.
N. The award of a cooperative agreement under this program shall
not, in any way, obligate DoD to enter into a contract or give
preference for the award of a contract to a business firm which is or
becomes a client of a DLA cooperative agreement recipient.
O. Cooperative agreement recipients must give special emphasis to
assisting small disadvantaged business (SDB) firms which participate or
aspire to participate in DoD prime and subcontracting opportunities. A
concerted effort must be made by recipients to identify SDB firms and
provide them with marketing and technical assistance, particularly
where such firms are referred for assistance by a DoD component, other
Federal agencies, and state and/or local governments.
P. Award recipients are not required to obtain or retain private,
profit making and/or nonprofit consultants to support the program. Any
subcontract costs being proposed for consulting services shall not
exceed 10% of the total program cost (TPC) (25% of TPC under the
American Indian Program). Proposals containing subcontracting costs for
consultant services in excess of 10% of TPC (25% of TPC under the
American Indian Program), will be rejected.
Q. Reasonable quantities of government publications, such as
``Selling to the Military,'' may be furnished to award recipients at no
cost, subject to availability. All requests for such publications must
be submitted to the cognizant Deputy for Small Business.
R. For the purpose of executing cooperative agreements, authority
is delegated to the Grants Officer.
S. Each cooperative agreement recipient's area of performance will
be limited to the county(ies) or equivalent specified in its
cooperative agreement award, including modifications thereto. For the
American Indian Program, the recipient's area of performance will be
limited to the reservation(s) specified in its cooperative agreement.
Recipients may voluntarily service clients outside their area of
performance provided that the client's location is not being serviced
by another PTA recipient.
T. The PTA center's program manager/director must be employed by
the PTA center on a full-time (100%) basis and salary must be charged
to the PTA program.
U. A minimum of 25% of the PTA program's requirements must be
performed by the recipient. The remaining 75% of the PTA program's
requirements may be performed by either the recipient and/or
subrecipients, as applicable.
V. To be considered during the evaluation process, part-time PTA
program employees must devote a minimum of 3 calendar months per year
of their time to the PTA program. Time spent may be performed
continuously or incrementally during the 12 month period.
W. Cooperative agreement recipients are required to provide
information to their clients relating to the objectives of the
Government's electronic commerce initiative which are as follows:
1. Exchange procurement information--such as solicitations, offers,
contracts, purchase orders, invoices, payments, and other contractual
documents electronically between the private sector and the Federal
government to the maximum extent practical;
2. Provide businesses, including small, small disadvantaged, and
women-owned businesses with greater access to Federal procurement
opportunities;
3. Ensure that potential suppliers are provided simplified access
to the Federal government's electronic commerce system;
4. Employ nationally and internationally recognized data formats
that serve to broaden and ease the electronic interchange of data.
(These formats are the ANSI ASC X-12 and UNEDIFACT formats.)
5. Use agency and industry systems and networks to enable the
Government and potential suppliers to exchange information and access
Federal Procurement data.
X. For the American Indian Program, if a tribal organization is to
perform services benefiting other Indian tribe(s), written approval
must be obtained by the eligible entry from each Indian Tribe to be
serviced. Approval will consist of a written statement (signed by a
responsible official authorized to legally bind the Indian tribe to be
serviced) indicating that the Indian tribe approves and agrees to
accept the services to be provided by the tribal organization.
3-2 Scope
This procedure implements title 10, chapter 142, United States
Code, as amended, and establishes procedure and guidelines for the
award and administration of cost sharing cooperative agreements entered
into between DLA and eligible entities. Under these agreements,
financial assistance provided by DoD to recipients will cover the DoD
share of the cost of establishing new and/or maintaining existing PTA
programs which furnish PTA to business entities.
3-3 Definitions
The following definitions apply for the purpose of this procedure.
A. Act. The enabling legislation that authorizes the establishment
and continuation of the PTA Cooperative Agreement Program each FY.
B. Agency. A field office, of one of the twelve service areas, as
published by the Bureau of Indian Affairs (BIA), U.S. Department of the
Interior.
C. American National Standards Institute (ANSI) Standard. A
document published by ANSI that has been approved through the consensus
process of public announcement and review. Each of these standards must
have been developed by an ANSI Committee and must be revisited by that
Committee within 5 years for update.
D. Civil jurisdiction. All cities with a population of at least
25,000 and all counties. Townships of 25,000 or more population are
also considered as civil jurisdictions in four States (Michigan, New
Jersey, New York, and Pennsylvania). In Connecticut, Massachusetts,
Puerto Rico and Rhode Island where counties have very limited or no
government functions, the classifications are done for individual
towns.
E. Client. A recognized business entity, including a corporation,
partnership, or sole proprietorship, organized for profit or nonprofit,
which is small or other than small, that has the potential or is
seeking to market its goods and/or services to DoD, other Federal
agencies, and state and/or local governments.
F. Consultant services. Marketing and technical assistance offered
directly to cooperative agreement recipients by private nonprofit and/
or profit making individuals, organizations or otherwise qualified
business entities.
G. Cooperative agreement. A binding legal instrument reflecting a
relationship between DLA and the recipient of a cooperative agreement
when the principal purpose of the relationship is to transfer a thing
of value to the recipient to carry out a public purpose of support or
stimulation authorized by a law of the United States instead of
acquiring property or services for the direct benefit or use of the
United States Government. Substantial involvement is expected between
DLA and the recipient when carrying out the activity contemplated in
the agreement.
H. Cooperative agreement offer/application/proposal. An eligible
entity's response to the SCAP describing its existing or planned PTA
program.
I. Cooperative agreement award recipient. An organization receiving
financial assistance directly from DLA to carry out a PTA program. The
organization is the entire legal entity even if only a particular
component of the entity is designated in the cooperative agreement
award document.
J. Cost matching or sharing. The portion of project or program
costs not borne by the Federal Government.
K. Counseling session. A documented counseling session (telephone
call, correspondence, or personal discussion) held with a client, where
professional guidance is provided to assist the client in marketing its
products and/or services to DoD, other Federal agencies, and state and
local governments. This includes, but is not limited to, providing
advice and assistance regarding marketing opportunities or technical
assistance in areas such as:
(1) Matching the client's products and/or services with that being
purchased by DoD, other Federal agencies, and state and local
governments;
(2) Assisting with understanding specifications;
(3) Preparing applications to be placed on solicitation mailing
lists;
(4) Preparing offers;
(5) Providing postaward assistance in areas such as production,
quality system requirements, finance, engineering, transportation and
packaging; and
(6) Providing information to business firms on the Mentor-Protege
Pilot Program; Defense Conversion, Reinvestment and Transition
Assistance Act of 1992; the Metric Conversion Act; Electronic Commerce/
Electronic Data Interchange (EC/EDI); and Total Quality Management
(TQM).
The distribution of publications or specifications, or simply
referring clients to another source for advice or assistance, is not
considered to be a counseling session.
L. Direct cost. Any cost that can be identified specifically with a
particular final cost objective. No final cost objective shall have
allocated to it as a direct cost any cost, if other costs incurred for
the same purpose, in like circumstances, have been included in any
indirect cost pool to be allocated to that or any other final cost
objective.
M. Distressed area. The geographic area to be serviced by an
eligible entity in providing PTA to business firms physically located
within an area that:
(1) Has a per capital income of 80% or less of that State's
average; or
(2) Has an unemployment rate that is one percent greater than the
national average for the most recent 24-month period in which
statistics are available.
N. Duplicate coverage. A situation caused by two or more applicants
offering to provide marketing and technical assistance to clients
located within the same county(ies) or equivalent within the same
geographic area.
O. Electronic Commerce (EC). The conduct of administration,
finance, logistics, procurement and transportation between the
Government and private industry using an integrated automated
information environment to interchange business transactions.
P. Electronic Data Interchange (EDI): The computer-to-computer
electronic transfer of business transaction information in a public
standard formatted messages through use of a Value Added Network (VAN).
Q. Eligible entities.
(1) Organizations qualifying to submit a proposal under the general
PTA program, including:
(a) State government. Any of the several states of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, or any agency or
instrumentality of a State, exclusive of local governments. The term
does not include any public and Indian housing agency under the U.S.
Housing Act of 1937.
(b) Local government. A county, municipality, city, town, township,
local public authority (including any public and Indian housing agency
under the United States Housing Act of 1937), school district, special
district, intrastate district, council of governments (whether or not
incorporated as a nonprofit corporation under State law), any other
regional or interstate government entity (such as regional planning
agencies), or any agency or instrumentality of a local government. The
term does not include institutions of higher education and hospitals.
(c) Private, nonprofit organizations. Any corporation, trust,
foundation, or institution which is exempt or entitled to exemption
under section 501(c)(3)-(6) of the Internal Revenue Code, or which is
not organized for profit and no part of the net earnings of which
insure the benefit of any private shareholder or individual.
(2) Organizations qualifying to submit a proposal under the
American Indian program, including:
(a) Indian economic enterprise. Any Indian-owned (as defined by the
Secretary of the Interior) commercial, industrial, or business activity
established or organized, whether or not such economic enterprise is
organized for profit or nonprofit purposes: Provided, that such Indian
ownership shall constitute not less than 51 per centum of the
enterprise.
(b) Tribal organization. The recognized governing body of any
Indian tribe; any legally established organization of Indians which is
controlled, sanctioned, or chartered by such governing body, or which
is democratically elected by the adult members of the Indian community
to be served by such organization and which includes the maximum
participation of Indians in all phases of its activities.
R. Existing program. Any PTA program that had a cooperative
agreement award with DLA for any two or more years subsequent to FY 88.
S. Federal funds authorized. The total amount of Federal funds
obligated by the Federal government for use by the recipient.
T. Follow-up counseling session. A documented counseling session
(telephone call, correspondence, or personal discussion) held with a
client subsequent to the initial counseling session.
U. Grants officer (GO)/Administrative Grants Officer (AGO). An
official with the authority to enter into, administer, and/or terminate
grants or cooperative agreements.
V. Indian. Any person who is a member of any Indian tribe, band,
group, pueblo, or community which is recognized by the Federal
Government as eligible for services from the BIA and any ``Native'' as
defined in the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et
seq.].
W. Indian tribe. Any Indian tribe, band, group, pueblo, or
community, including Native villages and Native groups (including
corporations organized by Kenai, Sitka, and Kodiak) as defined in the
Alaska Native Claims Settlement Act [43 U.S.C. Section 1601 et seq.],
which is recognized by the Federal Government as eligible for services
from the Bureau of Indian Affairs.
X. Indirect cost. Any cost not directly identified with a single
final cost objective, but identified with two or more final cost
objectives or an intermediate cost objective. An indirect cost is not
subject to treatment as a direct cost.
Y. Initial counseling session. The first documented session
(telephone call, correspondence, or personal discussion) where
professional guidance is provided to a business firm to assist in
marketing its products and/or services to DoD, other Federal agencies,
and state and/or local governments. The initial counseling session may
determine that the business firm has no potential to do business with a
governmental agency.
Z. In-kind contributions/donations. The value of noncash
contributions provided by the eligible entity and non-Federal parties
to the PTA Program. Only when authorized by Federal legislation may
property or services purchased with Federal funds be considered as in-
kind contributions/donations. In-kind contributions/donations may be in
the form of charges for real property and nonexpendable personal
property and the value of goods and services directly benefiting and
specifically identifiable to the project or program.
AA. Integrated automated information environment. Computer-to-
computer exchange of public standard formatted messages through use of
a VAN.
AB. Multi-area coverage. A PTA program that proposes to service 100
percent of the reservations located within one BIA service area and at
least 50 percent of the reservations located within another BIA service
area. The list of areas administered as Indian Reservations, as
compiled by the BIA will be included in the SCAP to benefit American
Indians.
AC. Net program cost. The total program cost (TPC) (including all
authorized sources) less any program income and/or other Federal funds
not authorized to be shared.
AD. New start. An eligible entity that is not an existing program
(see above for definition of an existing program).
AE. Other Federal funds. Federal funds provided by Federal agencies
other than the DoD PTA Cooperative Agreement Program. When authorized
by statute, Federal funds received from other sources, including
grants, may be used as cost sharing and/or cost matching contributions.
AF. Per capita income. The estimated average amount per person of
total money income received during a calendar year for all persons
residing in a given political jurisdiction as published by the U.S.
Department of Commerce, Bureau of the Census.
AG. Prior approval. A written approval by the Grants Officer/
Administrative Grants Officer evidencing prior consent, as required by
the cooperative agreement award document.
AH. Procurement technical assistance (PTA) cooperative agreement
program. A program organized to generate employment and improve the
general economy of a locality by assisting business firms in obtaining
and performing under DoD, other Federal agency, and state and local
government contracts.
AI. Program income. Gross income received by the recipient or
subrecipient from cooperative agreement supported activities. Program
income includes fees from services performed, or from the use or rental
of property acquired with cooperative agreement funds. Except as
otherwise provided in statute or regulations of the Federal agency,
program income does not include interest earned on advances of grant or
subgrant funds, or rebates, credits, discounts, refunds, etc., or
interest earned on any of them.
AJ. Public Standard Format. A data exchange format which includes
the ANSI format ASC X-12 and/or the United Nations Electronic Data
Interchange for Administration, Commerce and Transport (UNEDIFACT).
AK. Reservation. Includes Indian reservations, public domain Indian
allotments, former Indian reservations in Oklahoma, and land held by
incorporated Native groups, regional corporations, and village
corporations under the provisions of the Alaska Native Claims
Settlement Act [43 U.S.C., Section 1601 et seq.].
AL. Service area. Any one of twelve area offices, as published by
the U.S. Department of the Interior, BIA, to include: Aberdeen,
Albuquerque, Anardako, Billings, Eastern, Juneau, Minneapolis,
Muskogee, Navajo, Phoenix, Portland and Sacramento.
AM. Solicitation for cooperative agreement proposals (SCAP). A
document issued by DLA containing provisions and evaluation factors
applicable to all applicants which apply for a PTA cooperative
agreement.
AN. Statewide coverage. A PTA program which proposes to service at
least 50% of a State's counties (or equivalent (i.e., parishes,
boroughs)) and 75% of a State's labor force.
AO. Subrecipient. The legal entity to which a subagreement is made
and which is accountable to the recipient of the cooperative agreement
for the use of the PTA program funds provided.
AP. Third party in-kind contributions. The value of non-cash
contributions provided by non-Federal third parties. Third party in-
kind contributions may be in the form of real property, equipment,
supplies and other expendable property, and the value of goods and
services directly benefiting and specifically identifiable to the
project or program.
AQ. Total program cost (TPC). All allowable costs as set forth in
OMB Circular Nos. A-21, A-87 and A-122, as applicable. All funds and
in-kind contributions/donations received from all sources, including
their parties, as a result of operating the program.
AR. Total quality management (TQM). Total quality is a philosophy
of management which harnesses the creativity of all employees
(management and non-management) in a structured approach to
continuously improving the processes by which products or services are
produced to meet customers' requirements and expectations. It is an
integrated system of management with recognizable components which:
acknowledges that the customer(s) define quality in product or service;
focuses all of the efforts of the enterprise on understanding and
meeting or exceeding customer needs; employs proven tools and
techniques to map and measure processes so that variation can be
reduced, defects can be prevented, and problems can be solved; and
involves and values everyone.
AS. Value added network (VAN). A commercial telecommunications
service provider which passes electronic commerce traffic between a
government entity and a commercial, private-sector vendor.
3-4 Program Purpose and Requirements
A. The purpose of the PTA Program is to generate employment and
improve the general economy of a locality by assisting business firms
in obtaining and performing under Federal, state and local government
contracts.
B. Requirements.
1. Program requirements.
a. Have resources necessary to implement its program.
b. Assist business firms with increasing the number of prime and
subcontract awards received.
c. Assist business firms by providing marketing and technical
assistance in selling their goods and services to DoD, other Federal
agencies, and state and local governments.
d. Provide business firms with information on the Mentor-Protege
Pilot Program; Defense Conversion, Reinvestment and Transition
Assistance Act of 1992; The Metric Conversion Act; EC/EDI; and TQM.
2. Service requirements. A comprehensive PTA program should
include, but should not be limited to, the following:
a. Procurement Outreach Program. Plan, procedures and resources to
make the business community aware of the PTA Cooperative Agreement
Program, what assistance it offers and the requirements for a business
firm to become a client.
b. Personnel. Personnel qualified to counsel and to advise business
firms/clients regarding PTA Cooperative Agreement Program requirements,
as they apply to both prime and subcontracts. Personnel qualifications
should relate to the program being offered by the applicant/recipient.
Some areas of consideration are:
(1) Procurement policies and procedures;
(2) Marketing techniques and strategies;
(3) Pricing policies and procedures;
(4) Preaward procedures;
(5) Postaward contract administration;
(6) Quality assurance;
(7) Production and manufacturing;
(8) Financing;
(9) Subcontracting requirements;
(10) Bid and proposal preparation;
(11) Electronic Commerce/Electric Data Interchange; and
(12) Specialized acquisition requirements for such areas as
construction, research and development, and data processing.
c. Counseling program. Plan, procedures and resources for
counseling potential or existing clients regarding marketing their
goods and/or services to DoD, other Federal agencies, and state and
local governments; the publications to be used in such efforts;
identification of information to be provided to clients during
counseling sessions; and the procedures for documenting counseling
efforts.
d. Marketing opportunity program. Plan, procedures and resources
for identifying sources and opportunities for clients to market their
goods and/or services to DoD, other Federal agencies, and state and
local governments.
e. Client information program. Plan, procedures and resources for
educating clients concerning each of the following: Mentor-Protege
Pilot Program; Defense Conversion, Reinvestment and Transition
Assistance Act of 1992; The Metric Conversion Act; and Total Quality
Management (TQM).
f. Electronic Data Interchange/Electronic Commerce (EDI/EC)
Program. Plan, procedures and resources to assist clients with
understanding the objectives of the Government's EC/EDI initiatives.
EC/EDI uses value added networks (VAN) to pass data electronically
between the government procurement activity and the industry trading
partner (vendor). The government procurement activity is connected to a
VAN which is also connected to a vendor. The objectives of the
Government's EC/EDI initiatives are as follows:
(1) Exchange procurement information such as: solicitations,
offers, contracts, purchase orders, invoices, payments, and other
contractual documents electronically between the private sector and the
Federal government to the maximum extent practicable;
(2) Provide businesses, including small, small disadvantaged, and
women-owned businesses with greater access to Federal procurement
opportunities;
(3) Ensure that potential suppliers are provided simplified access
to the Federal government's electronic commerce system;
(4) Employ nationally and internationally recognized data formats
that serve to broaden and ease the electronic interchange of data
(These formats are the ANSI ASC X-12 and UNEDIFACT formats); and
(5) Use agency and industry systems and networks to enable the
Government and potential suppliers to exchange information and Federal
procurement data.
g. Postaward Assistance Program. Plan, procedures and resources for
educating clients concerning contract postaward functions in areas such
as: production, quality systems, finance, transportation, packaging,
subcontracting, etc.
h. Contract Award Verification Program. Plan, procedures and
resources for collecting, documenting, and reporting prime and
subcontract awards received by clients due to assistance provided by
the award recipient. The recipient must be capable of segregating data
by origin of the award (DoD, other Federal agency, state or local
government) and type of business receiving the award (small business or
other than small business). In addition, award recipients are required
to have on file for their clients for each reported award, the
following:
(1) The number and dollar value for prime and subcontract awards
received by clients;
(2) A signed statement from the client confirming that the prime
and/or subcontract award was obtained as a result of the assistance
provided by the PTA center; and
(3) A means of validating the data.
3. Fees and service charges. If the applicant plans to charge
business firms/clients a fee or service charge, accounting procedures
and details as to the amount and basis for the fee or service charge
must be described.
3-5 Procedures
A. Grants Officer (GO) as used herein refers to the GO assigned to
the Program Manager's office, HQ DLA Office of Small and Disadvantaged
Business Utilization.
B. The Program Manager's office develops and prepares the SCAP and
evaluation criteria.
C. The DLA PTA Cooperative Agreement Policy Committee (Policy
Committee) approves the SCAP and evaluation criteria prior to its
issuance. The Policy Committee is comprised of representatives from the
HQ, DLA, Directorates of General Counsel, Acquisition (Offices of Small
and Disadvantaged Business Utilization, Contract Management and
Procurement), Corporate Administration (Office of Congressional
Affairs), and Comptroller, The Director, Office of Small and
Disadvantaged Business Utilization serves as the Policy Committee
Chairman.
D. The Policy Committee is the final administrative appeal
authority for disputes and protests.
E. Proposals and revisions received after the deadlines for receipt
of proposals (to be specified in the SCAP) will not be evaluated unless
they are determined acceptable based upon the following criteria.
(a) Acceptable evidence to support an otherwise late proposal or
revised proposal received after the closing time and date shall consist
of:
1. An original U.S. Post Office receipt for registered or certified
mail showing date of mailing not later than five calendar days before
the date specified for receipt of proposals and revisions; or
2. When sent by U.S. Postal Service Express Mail Next Day Service--
Post Office to Addressee, the date entered by the post office receiving
clerk on the ``Express Mail Next Day Service--Post Office to
Addressee'' label and the postmark on the envelope or wrapper and on
the original receipt from the U.S. Postal Service. The postmark date
must be two working days prior to the date specified for receipt of
proposals. The term working days excludes weekends and Federal
holidays. Applicants should request the postal clerk to place a legible
hand cancellation ``bull's-eye'' postmark on both the receipt and
envelope or wrapper.
(b) If the proposal or revision is hand-delivered, the specific
time and delivery date shall be supported by a receipt given by the
Program Manager's office.
F. The evaluation of proposals submitted in response to the SCAP
and the selection of award recipients shall be conducted as detailed
below:
(1) Intitial evaluation. The GO performs an evaluation of each
proposal received to determine if the proposal:
(a) Provides county-wide or equivalent coverage;
(b) Contains sufficient technical, cost and other information;
(c) Has been signed by a responsible official authorized to bind
the eligible entity; and
(d) Generally meets all requirements of the SCAP. If a proposal is
removed from further consideration for an award by the GO, the
applicant will be promptly notified of the reason(s) for removal. The
applicant's proposal will be retained with other unsuccessful proposals
by the GO.
(2) Minor informalities and mistakes. The GO shall examine all
proposals for mistakes.
(a) The GO shall provide an eligible entity the opportunity to cure
any deficiency resulting from a minor informality or irregularity
contained in the offer or waive the deficiency, whichever is to the
advantage to the Government. A minor informality or irregularity is one
that is merely a matter of form and not of substance. It also pertains
to some immaterial defect in an offer or variation of an offer from the
exact requirements of the solicitation that can be corrected or waived
without being prejudicial to other offerors. The defect or variation is
immaterial when the effect on program quality is negligible when
contrasted with the program's total cost. (Two examples or minor
informalities include the failure of the eligible entity to: (1) Return
the required number of copies of its proposal; and (2) Execute the
certifications required by the SCAP clauses).
(b) In case of apparent mistakes and in cases where the GO has
reason to believe that a mistake may have been made, the GO shall
request verification from the entity that the offer ``should read as
stated'' calling attention to the suspected mistake. Any clerical
mistake, apparent in the offer, may be corrected by the GO. (Examples
of apparent mistakes are: (1) Obvious misplacement of a decimal point;
(2) incorrect transposition of numbers; and (3) obvious mistake in
identifying the program type (existing versus new start)). The GO shall
obtain from the eligible entity a written verification of the offer
intended.
(c) Correction of a mistake by the GO shall be effected by
attaching the verification to the original offer. The GO shall not make
corrections on the entity's proposal. Corrections shall be restated in
the cooperative agreement award document, if the entity receives an
award.
(d) If an eligible entity requests permission to correct a mistake,
including those identified by the GO during their review and clear and
convincing evidence establishes the existence of the mistake, the GO
may make a determination permitting the eligible entity to correct the
mistake. If this correction would result in displacing one or more
eligible entities that would otherwise rank higher, such a
determination shall not be made unless the existence of the mistake and
the proposed information actually intended are ascertained
substantially from the proposal itself.
(3) The GO will review and verify the accuracy of the applicant's
program status stated on block 8, ``Type of Application'' of the
Standard Form (SF) 424. If the GO considers the proposal status
misclassified, the matter will be reviewed with the applicant. If there
is disagreement, the GO's decision regarding the program classification
is final and is not subject to further review.
(4) If the GO determines that supporting documentation does not
substantiate the applicant's proposed distressed area status (where
greater than 50% funding as the DoD share is requested), the
application will be disqualified and not be given further review or
consideration for an award. The proposal will be retained with other
unsuccessful applicants by the GO.
(5) The GO will forward all proposals which pass the initial
evaluation phase to the Evaluation Panel. These proposals are then
subjected to a comprehensive evaluation by the Evaluation Panel.
(6) Comprehensive Evaluation. A specially constituted HQ, DLA,
Evaluation Panel comprised of small business specialists, contract
management specialists, and other personnel deemed appropriate by the
Policy Committee performs the comprehensive evaluation. A member of the
HQ DLA Directorate of General Counsel provides legal assistance to the
Evaluation Panel, as needed.
The purpose of the comprehensive evaluation is to assess the merits
of the proposals to determine which offer the greatest likelihood of
achieving the stated program purpose considering technical, quality,
personnel qualifications, estimated cost, and other relevant factors.
The Evaluation Panel conducts its evaluations in accordance with stated
criteria.
(7) Duplicate coverage. Proposals that include duplicate coverage
will be processed by the GO as follows:
(a) General Program.
1. When two or more applicants submit proposals that provide
duplicate coverage of the county(ies) or equivalent within the
geographic area which the applicant plans to service, selection
priority will be given to the proposal that is assigned the highest
total points by the Evaluation Panel.
2. To be considered for an award, an applicant's proposal shall not
duplicate more than 25%, on an individual or cumulative basis, any of
the county(ies) or equivalent proposed by other applicant(s).
3. Only one statewide program will be awarded in a state.
(b) American Indian Program.
1. When two or more applicants submit proposals that provide
duplicate coverage of the reservation(s) which the applicant plans to
service, selection priority will be given to the proposal that is
assigned the highest total points by the Evaluation Panel.
2. To be considered for an award, an applicant's proposal shall not
duplicate more than 25% on an individual or cumulative basis any of the
reservation(s) proposed by other applicant(s).
G. The award recommendations are approved by the Program Manager
and executed by the GO.
3-6 Evaluation Factors
A. Proposals received as a result of the SCAP will be grouped as
existing programs and new start programs based on the information
provided on block 8 of the SF 424, or as determined by the GO.
B. Each group of proposals will be evaluated separately based upon
the evaluation factors specified for the group. The SCAP will provide
an explanation of each evaluation factor.
C. Proposals will be to be evaluated, and award will be made,
without discussions with the applicants (other than discussions
conducted for the purpose of minor clarification).
D. The following evaluation factors (which may be subject to
change) will be considered:
(1) Existing Program Service Requirements.
(a) Program's past performance and effectiveness, description and
development.
1. Past performance and effectiveness.
2. Description.
a. Types and qualifications of personnel.
b. Geographic area(s) the applicant plans to service.
1. The county(ies) or equivalent the applicant plans to service.
2. Level of unemployment in the county(ies) or equivalent the
applicant plans to service.
c. Potential number and types of clients the applicant plans to
service.
3. Development.
a. Procurement Outreach Program.
b. Counseling Program.
c. Marketing Opportunities Program.
d. Client Information Program.
e. Electronic Commerce/Electronic Data Interchange (EC/EDI)
Program.
f. Postaward Assistance Program.
g. Contract Award Verification Program.
(b) Subcontracting for consultant services.
(2) New Start Program Service Requirements.
(a) Program's description and development.
1. Description.
a. Types and qualifications of personnel.
b. Geographic area(s) the applicant plans to service.
1. The county(ies) or equivalent the applicant plans to service.
2. Level of unemployment in the county(ies) or equivalent the
applicant plans to service.
c. Potential number and types of clients the applicant plans to
service.
2. Development.
a. Procurement Outreach Program.
b. Counseling Program.
c. Marketing Opportunities Program.
d. Client Information Program.
e. Electronic Commerce/Electronic Data Interchange (EC/EDI)
Program.
f. Postaward Assistance Program.
g. Contract Award Verification Program.
(b) Subcontracting for consultant services.
E. Certain of these evaluation factors will be evaluated based upon
stated implementing policy for programs. For example, for the types and
qualifications of personnel, applicants and their subagreement
applicants will be required to provide a list of professional personnel
by name (or the qualification standard if a position is not occupied)
along with salary and education information, previous experience (by
technical discipline), and the percentage of time assigned or to be
assigned to directly performing the program.
F. The amount of subcontracting for consultant services provided
directly to cooperative agreement recipients by private nonprofit and/
or profit-making individuals, organizations or otherwise qualified
business entities is limited to no more than 10% of TPC for both
existing programs and new starts (25% of TPC under the American Indian
Program). However, in evaluating this factor for existing programs, the
smaller the amount of subcontracting for consultant services the
greater the weight that will be given. In the case of new starts,
subcontracting is not an evaluation factor. New starts are subject only
to the 10% limitation (25% limitation under the American Indian
Program).
3-7 DoD Funding
A. The FY 94 DoD Authorization Act authorized a total of $12
million to support the PTA program during FY 94. Of this total $600,000
is available for Indian programs only.
B. For the American Indian Program, proposals will be funded to the
extent the $600,000 authorized for this program will allow. After
selecting the highest ranking proposals for award, any remaining funds,
which may be insufficient to fund the total amount of Federal funds
requested, may be used to make additional award(s). Thus, an applicant
may be offered the opportunity to reduce the amount of Federal funds
requested to facilitate receiving an award. Notwithstanding the
reduction in the amount of Federal funds requested, all other terms and
conditions of the applicant's proposals must remain unchanged.
3-8 Cost Sharing Limitations
A. The DoD share of NPC shall not exceed 50%, except in a case
where an eligible entity meets the criteria for a distressed area. When
the prerequisite conditions to qualify as a distressed area are met,
the DoD share may be increased to an amount not to exceed 75%.
b. In no event shall the DoD share of NPC exceed $150,000 for
programs providing less than statewide coverage or $300,000 for
programs providing statewide coverage.
C. For the Indian Program, the requested DoD share shall not exceed
75% of NPC or $150,000 for a program providing service on
reservation(s) within one BIA service area, or $300,000 for a program
providing multi-area coverage.
D. The type and value of third-party in-kind contributions/
donations is limited to no more than 25% of TPC.
E. Indirect cost rates used in the proposal are subject to a
downward revision only.
3-9 Cost Sharing Criteria
A. Cost contributions may be either direct or indirect costs,
provided such costs are otherwise allowable in accordance with the
applicable cost principles. Allowable costs which are absorbed by the
applicant as its share of costs may not be charged directly or
indirectly or may not have been charged in part or in whole to the
Federal Government under other contracts, agreements, or grants.
B. The SCAP will require applicants to submit an annualized budget
estimate, which may include cash contributions, in-kind contributions/
donations, and any other Federal agency funding (including grants,
loans, and cooperative agreements) authorized to be used for this
program.
C. Program income or other Federal funds, that are not authorized
for use by Federal statute, (excluding loan guarantee agreements since
these do not provide disbursement of Federal funds) are not acceptable
for use as the applicant's matching funds. Inclusion of other Federal
funds in the program as part of TPC is subject to authorization by
Federal statute and the terms of the instrument containing such funds
or written advice obtained from the agency(ies) awarding the Federal
funds. Any method used by the eligible entity in providing the required
funds which relies upon Federal funds must be disclosed and identified
in the eligible entity's proposal.
D. Where distressed funding (greater than 50%) is requested and the
civil jurisdiction(s) which the applicant plans to service are both
distressed areas and non-distressed areas, two budgets must be
submitted based on the anticipated distribution of TPC between these
two areas. In addition, the recipient's accounting system must
segregate and accumulate costs in each of the two budget areas.
E. Recipients of PTA cooperative agreements are required to
maintain records adequate to reflect the nature and extent of their
costs and expenditures, and to insure that the required cost
participation is achieved. In addition, each state and local government
entity that receives Federal funding is required to have audits
performed in accordance with the requirements of OMB Circular A-128.
Nonprofit organizations and institutions of higher education are
required to have audits performed in accordance with the requirements
of OMB Circular A-133. Indian economic enterprises (for profit only)
will also have an audit performed in accordance with the requirements
of OMB Circular A-133. Recipients shall have the audit organization
send a copy of all audit reports which pertain to the PTA cooperative
agreement directly to the cognizant administration activity.
F. If the applicant charges or plans to charge a fee or service
charge for PTA given to clients, or receives any other income as a
result of operating the PTA Program, the amount of program income
generated must be added to TPC.
G. The recipient may add funds to its program after all program
funds are properly expended and before expiration of the cooperative
agreement effective period. In the event funds are added to the
program, the percent of total cost sharing will not be affected and the
funds will not require allocation by object class category. However,
total funds expended during the effective period must be reported on
the DLA Form 1806, PTA Cooperative Agreement Performance Report. The
expenditure of additional funds shall be made in accordance with the
applicable cost principles.
H. The following OMB Circulars (most recent issuance) will be used
to determine allowable costs in performance of the program:
(1) OMB Circular No. A-21, Cost Principles for Educational
Institutions;
(2) OMB Circular No. A-87, Cost Principles for State and Local
Governments; and
(3) OMB Circular No. A-122, Cost Principles for Nonprofit
Organizations. This circular will also be used by for-profit
organizations.
3-10 Administration
A. Cooperative agreements will be assigned to the cognizant
postaward administration activity listed in DLA Handbook 4105.4, DoD
Directory of Contract Administration Service Components.
B. The postaward administration activity will be responsible to
ensure surveillance reviews are conducted: The reviews will include:
(1) Management control systems;
(2) Financial management control systems;
(3) Progress being made by the recipient in meeting its goals; and
(4) Compliance with certifications, representations and other
performance factors.
C. For eligible entities covered by OMB Circular No. A-102, Grants
and Cooperative Agreements with State and Local Governments, or OMB
Circular No. A-110, Grants and Agreements with Institutions of Higher
Education, Hospitals and other Non-profit Organizations, the
administrative requirements specified in those circulars will apply.
D. The cognizant Deputy for Small Business will be the focal point
for the AGO for small business issues and for all recipient publication
and training requests.
Sim C. Mitchell,
Program Manager, Office of Small and Disadvantaged Business
Utilization.
[FR Doc. 94-2180 Filed 1-31-94; 8:45 am]
BILLING CODE 3620-01-M
