[Federal Register Volume 61, Number 115 (Thursday, June 13, 1996)]
[Notices]
[Pages 30033-30037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15013]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
[Docket No. 950207043-6128-02]
RIN 0625-ZA03
Market Development Cooperator Program
AGENCY: International Trade Administration (ITA), Commerce.
ACTION: Notice.
-----------------------------------------------------------------------
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 July 11, 1996. 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. No discussion of specific proposals will occur at this
meeting.
DATES: The public meeting will be held July 11, 1996. Completed
applications must be received no later than 5:00 p.m. Eastern Standard
Time August 8, 1996. Competitive application kits will be available
from the Department of Commerce starting June 13, 1996.
ADDRESSES: The public meeting will be held at the Herbert Clark Hoover
Building, U.S. Department of Commerce, 14th and Constitution Avenue,
N.W., Washington, D.C. Contact the information contact for room
location.
To obtain an application kit, please send a written request with a
self-addressed mailing label to Mr. Greg O'Connor, Manager, Market
Development Cooperator Program, Trade Development/OPCRM, Room 3211,
U.S. Department of Commerce, Washington, D.C. 20230. Application kits
may also be picked up in Room 3211, U.S. Department of Commerce, 14th
and Constitution Avenue, N.W., Washington, D.C. 20230. The application
kit contains all forms necessary to participate in the MDCP application
process.
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.
[[Page 30034]]
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. Eligible organizations that have
previously received an MDCP award must propose a new project or
expansion of an existing project to receive consideration for a new
award.
The Department of Commerce encourages applicants to propose
activities that would be most appropriate to the market development
needs of their U.S. 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). Many
of these activities are being undertaken by current Market Development
Cooperator Program award winners:
(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, but could include co-location with a
US&FCS Commercial Center;
(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 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 U.S. 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 of U.S. goods or services, with foreign
customers;
(10) Training of foreign nationals to perform after-sales service
or to act as distributors for U.S. goods or services;
(11) Working with organizations in the foreign marketplace
responsible for setting standards and for product testing to improve
market access for U.S. goods or services;
(12) Publishing an export resource guide or an export product
directory for the U.S. 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 $2.0 million for fiscal year (FY) 96. 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.
Matching Requirements: Applicants will be expected to supply two
thirds (\2/3\) of total project costs, with the Federal portion to be
one third (\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; 45 CFR Part 74, Appendix E; and 48 CFR
Part 31. No indirect costs will be paid with Department of Commerce
funding under this program.
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. For each award, the recipient and ITA Program Officer shall
establish a project team to include personnel from ITA. The project
team will: collaborate with the recipient by working jointly with the
recipient in carrying out the scope of work of the project effort;
specify direction or redirection of the scope of work due to inter-
relationships with other projects such as requiring the recipient to
achieve a specific level of cooperation with other projects; and
determine mode of project operations and other management processes,
coupled with close monitoring or operational involvement during
performance of the project.
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
[[Page 30035]]
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. One organization must be designated
as the recipient organization for administrative purposes for joint
venture applicants. 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 qualifications, structure and composition 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)
Application for Federal Assistance, 424A (Rev. 4-92) Budget
Information--Non-Construction Programs, 424B (Rev. 4-92) Assurances--
Non-Construction Programs, SF-LLL, Disclosure of Lobbying Activities
and other Department of Commerce forms (CD-511, Certifications
Regarding Debarment, Suspension and Other Responsibility Matters; Drug-
Free Workplace Requirements and Lobbying; CD-512, Certifications
Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion--Lower Tier Covered Transactions and Lobbying), which are
required as part of the application, are available from the contact
person indicated above. Applicants must submit a signed original and
two (2) copies of the application and supporting materials.
Project Funding Priorities: Applications may be targeted for any
market in the world and/or industry covered by ITA's industry units
(Technology and Aerospace Industries, Basic Industries, Service
Industries and Finance, Textiles, Apparel and Consumer Goods
Industries, Environmental Technologies Exports and Tourism Industries).
In ITA's view the following markets and industry sectors offer
exceptional opportunities for U.S. exports and export related job
creation or support in the U.S.:
Geographic Markets: The Big Emerging Markets (BEMs) of Argentina,
the Association of Southeast Asian Nations (ASEAN--Brunei, Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam), Brazil,
the Chinese Economic Area (Peoples Republic of China, Taiwan and Hong
Kong), India, Korea (South), Mexico, Poland, South Africa, and Turkey.
In addition to the BEMs, strong relations with mature export markets
such as Europe and Japan are encouraged.
Sectors: Major project infrastructure development, transportation
technologies, energy technologies, information technologies, health
technologies, environmental technologies and financial services.
In addition, projects that concentrate on the following priorities
present opportunities to develop, maintain and expand overseas markets
and create and support U.S. jobs:
(1.) Advocacy: (a.) Assistance to U.S. companies/consortia bidding
on major foreign contracts; (b.) Development of a response to foreign
anti-competitive practices, such as bribery and subsidies, that
unfairly disadvantage U.S. companies in global competitions;
(2.) Trade Agreements Monitoring: Monitoring of foreign compliance
with our trade agreements such as NAFTA, WTO and sector-specific
agreements;
(3.) Facilitating the involvement in exporting of small and medium-
sized U.S. businesses and traditionally disadvantaged or under served
groups, especially as suppliers/subcontractors for major infrastructure
projects;
(4.) Working cooperatively to support ITA market development
initiatives. Examples of such activities could include: participating
in the activities of Business Development Committees or Councils ITA
establishes with other countries such as Argentina, Brazil, Russia,
South Africa, India, China; locating an office at, or actively
utilizing the facilities of a U.S. Department of Commerce-sponsored
Commerical Center, such as those already established in Sao Paulo,
Brazil and Jakarta, Indonesia and soon-to-be established in Shanghai,
China; and supporting ITA-sponsored trade events.
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 U.S. 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 U.S. 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).
[[Page 30036]]
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 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) Potential of the project to generate export sales or major
foreign project/contract success stories in both the short and medium-
term. Applicant should provide estimates of projected project results,
along with detailed explanations.
(2) The degree to which the proposal furthers or is compatible with
ITA's priorities and the markets and industry sectors identified above
and the degree to which a proposal initiates or enhances partnership
with the Department of Commerce.
(3) Creativity and innovation displayed by the work plan while at
the same time being realistic.
(4) The institutional capacity of the applicant to carry out the
work plan and the willingness and ability of the applicant to back up
promotional activities with aggressive marketing and after-sales
service.
(5) Reasonableness of the itemized budget for project activities
and probability that the project can be continued on a self-sustained
basis after the completion of the award.
(6) Projected increase in the number of U.S. companies operating
(multiplier effect) in the market(s) selected. Applicant should provide
quantifiable estimates of projected increases. Intent and capability of
the applicant to enlist the participation of small and medium size U.S.
companies in consortia and activities that are to be part of the
proposed project.
Evaluation Criteria
Criterion #1--maximum 20 points
Criterion #2--maximum 20 points
Criterion #3--maximum 20 points
Criterion #4--maximum 15 points
Criterion #5--maximum 15 points
Criterion #6--maximum 10 points
Selection Procedures: Each application will receive an independent,
objective review by a panel qualified to evaluate the applications
submitted under the program. The Senior Officer Review Panel,
consisting of at least three people, will review all applications based
on the criteria stated above. The Senior Officer Review Panel will
identify and rank the top ten proposals 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 recommendations regarding the funding
of applications from the group of ten identified by the Senior Officer
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 Review Panel;
2. The degree to which applications satisfy the MDCP's goals and
objectives as established under the Project Funding Priorities listed
above;
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. Avoidance of redundancy and conflicts with the initiatives of
other Federal agencies; and
7. 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 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 asked agencies to submit prospective
GPRA-type performance indicators they intend to use in future years.
Accordingly, current MDCP participants were asked to identify new
GPRA-type performance indicators as part of their FY 1996 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
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,
[[Page 30037]]
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. Buy American-Made Equipment and 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.
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: June 7, 1996.
Jerome S. Morse,
Director, Resource Management and Planning, Staff, Trade Development.
[FR Doc. 96-15013 Filed 6-12-96; 8:45 am]
BILLING CODE 3510-DR-P
