[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Notices]
[Pages 10353-10357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4584]
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DEPARTMENT OF COMMERCE
[Docket No. 950207043-5043-0]
RIN 0625-ZA03
Market Development Cooperator Program
AGENCY: International Trade Administration (ITA), Commerce.
ACTION: Notice.
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SUMMARY: The mission of ITA is to promote U.S. exports and to
strengthen the international trade position of the United States.
Building partnerships with the private sector enhances ITA's ability to
fulfill its mission. To encourage such partnerships, ITA has created
the Market Development Cooperator Program (MDCP) to develop, maintain
and expand markets for nonagricultural goods and services produced in
the United States. The MDCP aims to:
Challenge the private sector to think strategically about
foreign markets;
Be the catalyst that spurs private sector innovation and
investment in export marketing; and
Increase the number of American companies taking decisive
export actions.
The advantage of a joint effort is that it permits the Government
to pool expertise and funds with non-Federal sources so that each
maximizes its market development resources. Partnerships of this sort
also may provide a sharper focus on long-term export market development
than do traditional trade promotion activities and serve as a mechanism
for improving Government-industry relations.
While the Department of Commerce sponsors, guides and partially
funds the MDCP with a matching requirement by the recipient, the
Department of Commerce expects applicants to develop, initiate and
carry out market development project activities. As an active partner,
ITA will provide assistance identified by the applicant as being
essential to the achievement of project goals and objectives. U.S.
industry is best able to assess its problems and needs in the foreign
marketplace and to recommend innovative solutions and programs that can
be the formula to success in international trade.
Examples of activities that might be included in an applicant's
project are described below. No one of these activities or any
combination of these activities must be included for a proposal to
receive favorable consideration. The Department of Commerce encourages
applicants to propose activities that (1) Would be most appropriate to
market development needs of their industry or industries; and (2)
display the imagination and innovation of the applicant working in
partnership with the Government to obtain the maximum market
development impact.
A public meeting for parties considering applying for funding under
the MDCP will be held on March 27, 1995. Attendance at this public
meeting is not required of potential applicants. The purpose of the
meeting is to provide general information regarding the MDCP
procedures, selection process, and proposal preparation to potential
applicants unfamiliar with the MDCP. No discussion of specific
proposals will occur at this meeting.
DATES: The public meeting will be held March 27, 1995. Completed
applications must be received no later than April 21, 1995. Competitive
application kits will be available from the Department of Commerce
starting February 24, 1995.
ADDRESSES: The public meeting will be held at the Herbert Clark Hoover
Building, U.S. Department of Commerce, 14th and Constitution Avenue
NW., Washington, DC. Contact the information contact for room location.
To obtain an application kit, please send a written request with a
self- [[Page 10354]] addressed mailing label to Mr. Greg O'Connor,
Manager, Market Development Cooperator Program, Trade Development/
OPCRM, Room 3211, U.S. Department of Commerce, Washington, DC 20230.
Application kits may also be picked up in Room 3211, U.S. Department of
Commerce, 14th and Constitution Avenue NW., Washington, DC 20230. The
application kit contains all forms necessary to participate in the
MDCP.
Please send completed applications to the Office of Planning,
Coordination and Resource Management, Trade Development, Room 3211,
14th & Constitution Avenue, N.W., Washington, D.C. 20230.
FOR FURTHER INFORMATION CONTACT: Mr. Greg O'Connor, Manager, Market
Development Cooperator Program, Trade Development, Room 3211,
Washington, D.C. 20230, (202) 482-3197.
SUPPLEMENTARY INFORMATION:
Authority
The Omnibus Trade and Competitiveness Act of 1988, Pub. L. No.
100-418, Title II, sec. 2303, 102 Stat. 1342, 15 U.S.C. 4723.
Catalog of Federal Domestic Assistance (CFDA)
No. 11.112, Market Development Cooperator Program.
Program Description
The goal of the MDCP identified in authorizing legislation is to
develop, maintain, and expand foreign markets for nonagricultural goods
and services produced in the United States. For purposes of this
program, ``nonagricultural goods and services'' means goods and
services other than agricultural products as defined in 7 U.S.C. 451.
``Produced in the United States'' means having substantial inputs of
materials and labor originating in the United States, such inputs
constituting at least 50 percent of the value of the good or service to
be exported. The intended beneficiaries of the program are U.S.
producers of nonagricultural goods or services that seek to export such
goods or services.
MDCP funds should not be viewed as a replacement for funding from
other sources, either public or private. An important aspect of this
program is to increase the sum of Federal and non-Federal export market
development activities. This result can best be achieved by using
program funds to encourage new initiatives. In addition to new
initiatives, expansion of the scope of an existing project also may
qualify for funding consideration. The Department of Commerce will
consider such projects as entirely new initiatives.
The Department of Commerce encourages applicants to propose
activities that would be most appropriate to the market development
needs of their industry or industries. The following are examples of
activities which applicants might include in an application (no one of
these activities or any combination of these activities must be
included for an application to receive favorable consideration):
(1) Opening an overseas office or offices to perform a variety of
market development services for companies joining a consortium to avail
themselves of such services; such an office should not duplicate the
programs or services of the U.S. and Foreign Commercial Service
(US&FCS) post(s) in the region;
(2) Detailing a private sector individual to a US&FCS post in
accordance with 15 U.S.C. 4723(c);
(3) Entering into a contract with a bona fide market research
company to conduct detailed, product-specific market research;
(4) Assigning industry specialists to work with Department of
Commerce/U.S. Executive Director Procurement Liaison Offices at the
Multilateral Development Banks to seek out and develop procurement
opportunities;
(5) Underwriting the cost of overseas market research or overseas
trade exhibitions and trade missions to promote U.S. exports, or
covering the expenses of reverse trade missions and/or foreign buyer
group travel to U.S. domestic trade shows;
(6) Overseas product demonstrations;
(7) Export seminars in the United States or market penetration
seminars in the market(s) to be developed;
(8) Technical trade servicing that helps overseas buyers to choose
the right U.S. good(s) or service(s) and to use the good or service
efficiently;
(9) Joint promotions with foreign customers;
(10) Training of foreign nationals to perform after-sales service
or to act as distributors;
(11) Working with organizations in the foreign marketplace
responsible for setting standards and for product testing to improve
market access;
(12) Publishing an export resource guide or an export product
directory for the industry or industries in question if no comparable
one exists; and
(13) Establishing an electronic business information system to
identify trade leads and facilitate matches with foreign partners.
Funding Availability
The total amount of funds available for this program is $2.5
million for fiscal year (FY) 95. The Department expects to conclude a
minimum of four (4) cooperative agreements with eligible entities for
this program. Each cooperative agreement will not exceed a total of
$500,000, regardless of the duration of the award.
Special Program Set-Aside to Encourage Diversity
On July 20, 1994, Secretary of Commerce Ronald H. Brown issued his
policy on diversity. As part of this policy, Secretary Brown directed
that ``diversity * * * be taken into consideration in every aspect of
the business of Commerce--in training, seminars, grant work,
procurement, technology and trade programs, travel and trade missions,
regulatory activities, business liaison and in every program area of
the Department.''
In the spirit of Secretary Brown's pronouncement, ITA will set
aside $250,000 of the funds available for the MDCP to make awards of at
least $50,000, but less than $100,000. The opportunity to compete for
small awards hopefully will encourage organizations to apply that
previously felt themselves either at a competitive disadvantage or
unable to match a larger MDCP grant. Many organizations that represent
a preponderance of companies from traditionally disadvantaged or under-
served groups such as small business, women-owned business, African
Americans, Asian Americans, Hispanic Americans, Native Americans, Gay
and Lesbian Americans or Physically Challenged Americans may fall into
this category. At least one, but not more than five awards, will be
made from this program set-aside. Funds not awarded from the program
set-aside will be channeled back into the regular MDCP competition.
Eligible organizations that choose to compete for funds in the
program set-aside will compete only against other organizations
selecting the set-aside option. Organizations seeking smaller awards
need not meet diversity criteria to compete for set-aside funds.
Conversely, organizations seeking smaller awards that meet diversity
criteria can choose to compete in the regular MDCP award competition
instead of for set-aside funds. Program requirements and evaluation
criteria will be the same for applications considered under the set-
aside option as they are for the regular MDCP award competition.
Matching Requirements
Applicants will be expected to supply two thirds (2/3) of total
project costs, with the Federal portion to be one third
[[Page 10355]] (1/3). The Department of Commerce will support only a
portion of the direct costs of each project. Each applicant will
support a portion of the direct costs (to be specified in the
application). Generally, direct costs are those that are specifically
associated with an award, and usually include expenses such as
personnel, fringe benefits, travel, equipment, supplies and contractual
obligations relating directly to program activity. Allowable costs will
be determined on the basis of the applicable cost principles, i.e., OMB
Circulars A-21, A-87, and A-122; and 48 CFR Part 31. Applicants will
support all indirect costs.
A minimum of one half (\1/2\) of each applicant's support must be
in the form of new cash outlays expressly for the project. The balance
of the applicant's support may consist of in-kind contributions (goods
and services). In the proposed budget, all in-kind contributions to be
used in meeting the applicant's share of costs should be listed in a
separate column from cash contributions. A separate budget narrative
describing these in-kind contributions should also be included with the
proposal. This information should be in sufficient detail for a
determination to be made that the requirements of OMB Circular A-110,
section 23 (a), and 15 CFR Part 24.24 (a) and (b) are met.
Applicants may charge companies in the industry or other industry
organizations reasonable fees to take part in or avail themselves of
services provided as part of applicants' projects. Applicants should
describe in detail plans to charge fees.
Type of Funding Instrument
Since ITA will be substantially involved in the implementation of
each project for which an award is made, the funding instrument for
this program will be a cooperative agreement.
Eligibility Criteria
Trade associations, nonprofit industry organizations, state trade
departments and their regional associations including centers for
international trade development, and private industry firms or groups
of firms in cases where no entity described above represents that
industry are eligible to apply for cooperative agreements under this
program. For the purpose of this program, a ``nonprofit industry
organization'' is defined as any nonprofit organization (such as some
chambers of commerce and world trade centers) made up of firms in an
industry, or which is established or funded by and which operates on
behalf of an industry. For the purpose of this program, a ``trade
association'' is defined as consisting of member firms in the same
industry, or in related industries, or which share common commercial
concerns. The purpose of the trade association is to further the
commercial interests of its members through the exchange of
information, legislative activities, and the like.
Eligible entities may join together to submit an application as a
joint venture and to share costs. For example, two trade associations
representing different segments of a single industry or related
industries may pool their resources and submit one application. Foreign
businesses and private groups also may join with eligible U.S.
organizations to submit applications and to share the costs of proposed
projects. The Department of Commerce will accept applications from
eligible entities representing any industry, subsector of an industry
or related industries. Each applicant must permit all companies in the
industry in question to participate, on equal terms, in all activities
that are scheduled as part of a proposed project whether or not the
company is a member or constituent of the eligible organization.
Eligible entities desiring to participate in this program must
demonstrate the ability to provide a competent, experienced staff and
other resources to assure adequate development, supervision and
execution of the proposed project activities. Applicants must describe
in detail all assistance expected from the Department of Commerce or
other Federal Government agencies to implement project activities
successfully. Each applicant must provide a description of the
membership of the eligible entity, the degree to which the entity
represents the industry or industries in question, and the role, if
any, foreign membership plays in the affairs of the eligible entity.
Applicants should summarize both the recent history of their industry
or industries' competitiveness in the international marketplace and the
export promotion history of the eligible entity or entities submitting
the application.
Project proposals must be compatible with U.S. trade and commercial
policy.
Award Period
Funds may be expended over the period of time required to complete
the scope of work, but not to exceed three (3) years from the date of
the award.
Indirect Costs
The total dollar amount of the indirect costs proposed in an
application under this program must not exceed the indirect cost rate
negotiated and approved by a cognizant Federal agency prior to the
proposed effective date of the award or 100 percent of the total
proposed direct costs dollar amount in the application, whichever is
less. Department of Commerce funds can not be used to pay indirect
costs.
Application Forms and Kit
Standard Forms 424 (Rev. 4-92), 424A (Rev. 4-92), and 424B (Rev. 4-
92) and other Department of Commerce forms, which are required as part
of the application, are available from the contact person indicated
above. Applicants must submit a signed original and three (3) copies of
the application and supporting materials.
Project Funding Priorities
Applications may be targeted for any market in the world. In ITA's
view, projects in the following sectors and countries present
opportunities to develop, maintain and expand overseas markets and
enhance jobs through U.S. exports:
(a) Sectors: Environmental technologies, transportation
technologies, energy technologies, information technologies, health
technologies, and financial services; and
(b) Geographic Markets: Argentina, Brazil, China, Hong Kong, India,
Indonesia, Korea (South), Mexico, Poland, Russia and the Newly
Independent States of the former Soviet Union, South Africa, Taiwan,
and Turkey.
Developing a project plan requires solid background research.
Applicants should study, and applications should reflect such study of,
the following:
1. The market potential of the good(s) or service(s) to be promoted
in a particular market(s),
2. The competition from host-country and third-country suppliers,
and
3. The economic situation and prospects that bear upon the ability
of a country to import the good(s) or service(s).
Applicants should present in their applications an assessment of
industry resources that can be brought to bear on developing a market;
the industry's ability to meet potential market demand expeditiously;
and the industry's after-sales service capability in a particular
foreign market(s).
After describing their completed basic research, applicants should
develop marketing plans that set forth the overall objectives of the
projects and the specific activities applicants will undertake as part
of these projects. Applications should display the
[[Page 10356]] imagination and innovation of the private sector working
in partnership with the Government to obtain the maximum market
development impact.
Evaluation Criteria
The Department of Commerce is interested in projects that
demonstrate the possibility of both significant results during the
project period and lasting benefits extending beyond the project
period. To that end, consideration for financial assistance under the
MDCP will be based upon the following evaluation criteria:
(1) Projected:
(a) Increase in U.S. exports generated (per dollar of cooperator
program funds spent) by the proposed expenditure of funds; and
(b) Increase in the U.S. industry's foreign market share. Applicant
should provide quantifiable estimates of projected project results,
along with detailed explanations, for (1)a and (1)b above.
(2) Projected:
(a) Increase in the number of U.S. companies operating in the
market(s) selected (multiplier effect); and/or
(b) Increase in the number of companies currently in the market
that are undertaking new export initiatives. Applicant should provide
quantifiable estimates of projected project results for either (2)a or
(2)b above, or for both where proposed project increases are
anticipated.
(3) Export potential of the good(s) and/or service(s) to be
promoted.
(4) Size of the cash portion of the applicant's funding for the
proposed project and reasonableness of the itemized budget for project
activities.
(5) The institutional capacity of the applicant to carry out the
work plan and the degree to which a proposal initiates or enhances
partnership with the Department of Commerce.
(6) Creativity and innovation displayed by the work plan while at
the same time being realistic.
(7) Willingness and ability of the applicant to back up promotional
activities with aggressive marketing and after-sales service and
probability that the project can be continued on a self-sustained basis
after the completion of the award.
(8) Intent and capability of the applicant to enlist the
participation of small and medium size American companies in consortia
and activities that are to be part of the proposed project.
Evaluation criteria 1-4 are of utmost importance in the selection
process and will be worth 70 out of a possible 100 points as follows:
Criterion #1--maximum 20 points
Criterion #2--maximum 20 points
Criterion #3--maximum 15 points
Criterion #4--maximum 15 points
The remaining evaluation criteria will be valued as follows:
Criterion #5--maximum 10 points
Criterion #6--maximum 10 points
Criterion #7--maximum 5 points
Criterion #8--maximum 5 points
Selection Procedures
Each application will receive an independent, objective review by a
panel qualified to evaluate the applications submitted under the
program. The Review Panel, consisting of at least three people, will
review all applications based on the criteria stated above. The Review
Panel will identify and rank the top ten proposals in the regular MDCP
competition and the top seven proposals submitted under the set-aside
option and make recommendations to the Assistant Secretary for Trade
Development concerning which of the proposals should receive awards.
The Assistant Secretary for Trade Development will make the final
selection regarding the funding of applications from the group of ten
in the regular competition and the group of seven under the set-aside
option identified by the Review Panel.
In making his decision, the Assistant Secretary for Trade
Development will consider the following:
1. The evaluations of the individual reviewers of the Senior
Officer Panel;
2. The degree to which applications satisfy the MDCP's goals and
objectives;
3. The geographic distribution of the proposed awards;
4. The diversity of industry sectors covered by the proposed grant
awards;
5. The diversity of project activities represented by the proposed
awards;
6. The promotion of equitable access to MDCP funding for
traditionally disadvantaged or under-served groups;
7. Avoidance of redundancy and conflicts with the initiatives of
other Federal agencies; and
8. The availability of funds.
Performance Measures
On August 3, 1993, the Government Performance and Results Act
(GPRA) was enacted into law (Public Law 103-62). Section 4 of the GPRA
requires each agency to submit to the Office of Management and Budget
(OMB), beginning with FY 99, a strategic plan for program activities.
Among other things, each plan is to include ``performance indicators to
be used in measuring or assessing the relevant outputs, service levels
and outcomes of each program activity.''
OMB has decided not to wait to begin development of the new
performance indicators called for in GPRA. As part of the process of
preparing the President's FY 1996 budget, OMB has asked agencies to
submit prospective GPRA-type performance indicators they intend to use
in future years.
Accordingly, current MDCP participants have been asked to identify
new GPRA-type performance indicators as part of their FY 1995 operating
plans. These indicators will include not only program inputs and
outputs, but also measures that may be applied to determine outcomes
(what happens as a direct result of an output being created) or final
impacts (the effect of an outcome).
Applicants for this year's MDCP competition should describe in
their proposals performance indicators of the type envisioned by GPRA
that they intend to use to measure the results of their MDCP projects.
Applicants should consult the MDCP application kit for more
information, key terms and definitions used in developing performance
indicators under GPRA.
Other Requirements
(1) Federal Policies and Procedures--Recipients and subrecipients
are subject to all Federal laws and Federal and Department of Commerce
policies, regulations, and procedures applicable to Federal financial
assistance awards.
(2) Past Performance--Unsatisfactory performance under prior
Federal awards may result in an application not being considered for
funding.
(3) Preaward Activities--If applicants incur any costs prior to an
award being made, they do so solely at their own risk of not being
reimbursed by the Government. Notwithstanding any verbal or written
assurance that they may have received, there is no obligation on the
part of the Department of Commerce to cover preaward costs.
(4) No Obligation for Future Funding--If an application is selected
for funding, the Department of Commerce has no obligation to provide
any additional future funding in connection with that award. Renewal of
an award to increase funding or extend the period of performance is at
the total discretion of the Department of Commerce.
(5) Delinquent Federal Debts--No award of Federal funds shall be
made to an applicant who has an outstanding delinquent Federal debt
until either:
i. The delinquent account is paid in full,
ii. A negotiated repayment schedule is established and at least one
payment is received, or [[Page 10357]]
iii. Other arrangements satisfactory to the Department of Commerce
are made.
6. Name Check Review. All non-profit and for-profit applicants are
subject to a name check review process. Name checks are intended to
reveal if any key individuals associated with the applicant have been
convicted of or are presently facing criminal charges such as fraud,
theft, perjury, or other matters which significantly reflect on the
applicant's management honesty or financial integrity.
7. Primary Applicant Certifications. All primary applicants must
submit a completed Form CD-511, ``Certifications Regarding Debarment,
Suspension and Other Responsibility Matters; Drug Free Workplace
Requirements and Lobbying,'' and the following explanations are hereby
provided:
i. Nonprocurement Debarment and Suspension. Prospective
participants (as defined at 15 CFR part 26, section 105) are subject to
15 CFR part 26, ``Nonprocurement Debarment and Suspension'' and the
related section of the certification form prescribed above applies;
ii. Drug-Free Workplace. Grantees (as defined at 15 CFR part 26,
section 605) are subject to 15 CFR part 26, subpart F, ``Governmentwide
Requirements for Drug-Free Workplace (Grants)'' and the related section
of the certification form prescribed above applies;
iii. Anti-Lobbying. Persons (as defined at 15 CFR part 28, section
105) are subject to the lobbying provisions of 31 U.S.C. 1352,
``Limitations on use of appropriated funds to influence certain Federal
contracting and financial transactions,'' and the lobbying section of
the certification form prescribed above applies to applications/bids
for grants, cooperative agreements, and contracts for more than
$100,000, and loans and loan guarantees for more than $150,000, or the
single family maximum mortgage limit for affected programs, whichever
is greater; and
iv. Anti-Lobbying Disclosures. Any applicant that has paid or will
pay for lobbying using any funds must submit an SF-LLL, ``Disclosure of
Lobbying Activities,'' as required under 15 CFR part 28, Appendix B.
8. Lower Tier Certifications. Recipients shall require applicants/
bidders for subgrants, contracts, subcontracts, or other lower tier
covered transactions at any tier under the award to submit, if
applicable, a completed Form CD-512, ``Certifications Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier
Covered Transactions and Lobbying'' and disclosure form, SF-LLL,
``Disclosure of Lobbying Activities.'' Form CD-512 is intended for the
use of recipients and should not be transmitted to the Department of
Commerce. SF-LLL submitted by any tier recipient or subrecipient should
be submitted to the Department of Commerce in accordance with the
instructions contained in the award document.
9. False Statements. A false statement on an application is grounds
for denial or termination of funds and grounds for possible punishment
by a fine or imprisonment as provided in 18 U.S.C. 1001.
10. Intergovernmental Review--Applications under this program are
not subject to Executive Order 12372, ``Intergovernmental Review of
Federal Programs.''
11. Requirement to Buy American-Made Equipment or Products--
Applicants are hereby notified that they will be encouraged, to the
greatest extent practicable, to purchase American-made equipment and
products with funding provided under this program in accordance with
Congressional intent as set forth in the resolution contained in Public
Law 103-317, Sections 607 (a) and (b). Adequate justifications will be
required for any proposed purchases of equipment or products that are
not American-made.
Classification
This notice has been determined to be not significant for purposes
of Executive Order 12866. The standard forms reference in this notice
are cleared under OMB Control No. 0348-0043, 0348-0044, 0348-0040, and
0348-0046 pursuant to the Paperwork Reduction Act.
Dated: February 21, 1995.
Jerome S. Morse,
Director, Resource Management and Planning Staff, Trade Development.
[FR Doc. 95-4584 Filed 2-23-95; 8:45 am]
BILLING CODE 3510-DR-P
