[Federal Register Volume 63, Number 173 (Tuesday, September 8, 1998)]
[Notices]
[Pages 47480-47484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24030]
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DEPARTMENT OF COMMERCE
Minority Business Development Agency
[Docket No. 980901228-8228-01]
RIN: 0640-ZA04
Solicitation of Applications for the Minority Business
Opportunity Committee (MBOC) Program
AGENCY: Minority Business Development Agency, Commerce.
ACTION: Notice.
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SUMMARY: In accordance with Executive Order 11625 and 15 U.S.C. 1512,
the Minority Business Development Agency (MBDA) is soliciting
competitive applications from organizations seeking to operate Minority
Business Opportunity Committees (MBOCs). All information required to
submit a cooperative agreement application by eligible applicants is
contained in this announcement and in the Competitive Application
Package (CAP).
The MBDA provides business development services to minority
entrepreneurs through different types of programs. Each program is
designed to focus on the unique business problems of a specific market.
MBDA's programs from a national business delivery network that
addresses needs of minority entrepreneurs throughout the United States.
The MBOC program is designed to provide minority business owners with
enhanced access to the marketplace by identifying marketing and sales
opportunities, financing resources, potential joint venture partners,
and otherwise assisting minority firms to position themselves for long-
term growth. State or local government entities, American Indian
Tribes, colleges, universities, and/or non-profit organizations are
eligible to operate MBOCs. For-profit organizations are not eligible to
operate MBOCs.
DATES: Complete applications for the MBOC program must be: (1) Mailed
(USPS postmark) by October 8, 1998 to the address below; or (2)
received by MBDA at the address below no later than 5 p.m. Eastern
Daylight Time. Applications postmarked later than the closing date or
received after the closing date will not be considered. Anticipated
time for processing of applications is 90 days. MBDA anticipates that
awards will be made with start dates of January 1, 1999.
ADDRESSES: Applicants must submit one signed original plus two (2)
copies of the application, including all information required by the
CAP. Completed application packages must be submitted to: Minority
Business Opportunity Committee Program Manager, Office of Executive
Secretariat, HCHB, Room 5073, Minority Business Development Agency,
U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington,
DC 20230.
If the application is hand-delivered by the applicant or its
representative, it must be delivered to Room 1874, which is located at
Entrance #10, 15th Street, NW, between Pennsylvania and Constitution
Avenues. Unsigned applications will be considered non-responsive and
will be returned to the applicant. Failure to submit other required
information may result in points being deducted from an applicant's
score.
FOR FURTHER INFORMATION CONTACT:
For further information and a Competitive Application Package contact
Stephen Boykin, the MBOC Program Manager, at (202) 482-1712.
SUPPLEMENTARY INFORMATION:
Authority: Exeuctive Order 11625 and 15 U.S.C. 1512.
Catalogue of Federal Domestic Assistance (CFDA): 11.803, Minority
Business Opportunity Committees.
Program Description: The MBDA has established the MBOC Program as a
vehicle for providing timely market leads, access to resources, and
current business information to minority businesses seeking to market
effectively their products and services within the local economy. In
accomplishing this purpose, MBOCs help to bring regional coordination
and synergy to the minority business development efforts taking place
within an applicant-defined geographical service area.
MBOCs are comprised of local or regional governments, business and
industry leaders, as well as representatives of organizations that
conduct substantial purchasing within the regional economy. These
organizations may include large corporations located or having regional
headquarters within the region, government agencies at the Federal,
State, and local levels, banking and
[[Page 47481]]
financial institutions, chambers of commerce, community development
organizations, training organizations, trade associations, economic
development groups, quasi-public entities such as transit authorities,
ports, stadium authorities, and public utilities, and non-profit
entities such as hospitals, colleges, and universities. Industries
represented on the MBOC should include, where appropriate,
transportation, construction, travel and tourism, high technology,
health care, telecommunications, manufacturing, retailing, and any
other sector of the local economy which generates, or has the potential
to generate, sales, and business ownership opportunities for minority
entrepreneurs. The participation on the MBOC of a broad cross-section
of government and industry executives helps to ensure that minority
businesses have access to a breadth of information concerning available
market opportunities. The purpose of the MBOC Program is to promote the
full inclusion of the minority business sector in the overall economy.
Applicants should first include a description in their proposals
showing how they intend to establish a detailed organizational and
functional framework for the management and operation of the MBOC. The
applicant must demonstrate how the operational structure of the MBOC
will function and be financed. For example, the applicant should
indicate how a program will be developed to recruit members from
Federal, state, local and private sector organizations, and how the
applicant intends to operate the MBOC in terms of meetings and the
establishment of subcommittees or task forces. In addition, the
selection of key personnel, such as a chairperson and executive
director to manage the MBOC on a day-to-day basis, is important. The
applicant may also indicate how it intends to encourage member
organizations to enter into goals for the utilization of minority
business enterprises and to track performance in meeting those goals.
In designing its MBOC proposal, the applicant must note that there
are six core areas in which activities must be conducted. MBOC
encourages applicants to submit proposals that are ``tailored'' to
their defined markets, and that display the imagination and innovation
of the applicant in carrying out activities in the core areas to obtain
the maximum business development impact for minority firms. While
examples of activities that might be conducted under each of the core
areas are mentioned, applicants are encouraged to submit innovative
proposals setting forth the activities which the applicant plans to
conduct under the core areas.
(1) Access to Markets--MBOCs should promote relationship-building
and the sharing of information between organizations in the applicant-
defined geographical service area which conduct substantial purchasing
activity, and minority businesses that provide the products or services
sought by these organizations. MBOCs must make full use of the Agency's
Phoenix and Opportunity databases (OMB No. 0640-002) by requiring
participating businesses to enter the requisite information into the
systems. The MBOCs will serve as a clearinghouse both for minority
companies seeking timely market leads for available contract
opportunities, and for mainstream institutions seeking to identify
particular categories of minority suppliers. Activities in this core
area may include facilitating contract awards to minority businesses by
collecting and disseminating information to the minority business
community concerning available market opportunities, and engaging in
matchmaking between corporate and governmental purchasers and minority-
owned suppliers.
(2) Access to Capital--MBOCs should work to create an environment
within the finance and investment community that fairly values the
business assets of minority-owned companies. Whether these assets are
in the form of property, plants or equipment located in minority
communities, a workforce which consists largely of minority employees,
or the character and credit-worthiness of an individual minority
business owner, the MBOC should help to ensure that the capital markets
evaluate these assets objectively, and provide minority companies with
access to capital on a nondiscriminatory basis. In addition to helping
to ensure the availability of debt financing sources such as commercial
banks and government-sponsored loan and/or loan guaranty programs, MBOC
activities should include assisting in the identification of sources of
equity capital for minority firms, such as venture capital funds,
institutional investors (insurance companies, pension funds, etc.), and
high net-worth individuals.
(3) Sustained Advocacy on Behalf of the Minority Business Sector--
MBOCs should play a clear and highly visible role in articulating the
benefits to the economic region which are derived from the full
participation of the minority business sector. MBOC leadership,
including government officials, private executives, and other
designated representatives of the MBOC should conduct media outreach,
disseminate economic data, and otherwise advocate for inclusion of
minority businesses in the region's economic mainstream, including
exporting. Activities in this area may include the establishment of a
newsletter, conducting workshops, holding receptions, making media
appearances, participating in Minority Enterprise Development Week
activities, and ensuring that achievements of the MBOC are communicated
regularly to the corporate community, elected officials, and trade and
industry groups. MBOCs should sponsor workshops and seminars on topics
that promote utilization of minority-owned companies within the
regional economy. Such activities may be directed at minority
businesses, for example, arranging and promoting workshops on marketing
to corporate and institutional clients, or may be directed at the
mainstream business community, such as workshops on structuring
diversity programs for procurements, or both. Workshops, conferences,
and seminars should be designed by the MBOC leadership based on those
topics which best address the needs and opportunities present within
that MBOC's particular service area. For instance, an MBOC might
participate in or develop educational activities to promote export
opportunities for minority businesses. In addition to being a
consistant vehicle for the promotion to the mainstream business
community of the economic benefits of a healthy minority business
sector, the MBOC should develop recommendations for changing
procurement, banking, or other practices which may impede the growth of
minority firms.
(4) Business Ownership Opportunities--Lack of succession, corporate
divestitures, and other fortuitous circumstances often create
opportunities for entrepreneurs to acquire companies as going concerns.
Key to identifying such opportunities is establishing relationships
with corporate decisionmakers, banking executives, suppliers and others
having first-hand knowledge of such companies' conditions. The MBOC
should serve as a vehicle for bringing members of the minority and non-
minority business communities together through the following
activities: networking, subcommittee assignments, and other activities
designed to promote the sharing of information. In addition, the MBOC
should assist minority executives and managers within the
[[Page 47482]]
corporate sector who have an interest in leveraging their current
expertise through business acquisitions.
(5) Youth Entrepreneurship--In light of the continuing low
formation rate of minority business, MBOCs should direct some of their
activities to promoting youth entrepreneurship. MBOCs should, wherever
possible, sponsor activities designed to cultivate the entrepreneurial
spirit in minority youth between the ages of 14 and 18, and to make
them view business ownership as something realistically attainable.
(6) Resource Development--The MBOC should maintain a constant
inventory of the various resource providers within the project's
service area that offer services that can assist minority companies.
Such resource providers may include banks and other financial
institutions, bonding companies, business consultants, chambers of
commerce and other networking groups, trade associations active in all
viable local industries, state, local and private technical assistance
providers, etc.
In accordance with OMB Circular A-110 and 15 CFR part 24, selected
recipients must manage and monitor functions and activities supported
by the financial award. Recipients will be required to use program
performance measures in quarterly reports and to provide an end-of-year
assessment of the accomplishments of the project using these measures.
Criteria to measure MBOC program performance must include, but are not
limited to, the following:
1. The establishment of the MBOC and holding regularly scheduled
meetings;
2. The number of contracting opportunities disseminated;
3. The generating of actual procurement opportunities;
4. The number of procurement matches effected through the Phoenix-
Opportunity databases;
5. The identifying of sources of financing, both debt and equity,
for capital development;
6. The identifying of business acquisition opportunities;
7. The collecting and analyzing of data on MBOC members and
participants to allow tracking of minority business activities;
8. The sponsoring or participating in events, workshops,
conferences, and seminars, either directly or in partnership with other
public and/or private sector organizations to promote minority
business;
9. The promoting of youth entrepreneurship through a series of
events, conferences or workshops;
10. The providing to minority businesses of information on the
resources available to assist them.
Applicants should be mindful of these performance measures and
should use them when estimating projected project results in their
proposals. Applicants are also encouraged to develop and utilize
additional performance measures they find meaningful to demonstrate the
success of innovative techniques and methodologies. Finally, applicants
must include a detailed workplan that delineates a schedule of proposed
activities and milestones for implementing the tasks indicated above
within the award.
Funding Availability: MBDA anticipates that approximately $2.5
million will be available in FY 1999 for Federal assistance under this
program. Applicants are hereby given notice that funds have not yet
been appropriated for this program. In no event will MBDA or the
Department of Commerce be responsible for proposal preparation costs if
this program fails to receive funding or is canceled because of other
agency priorities.
Financial assistance awards under this program may range from
$1000,000 to $250,000 in Federal funding per year based upon the size
of the market and its need for MBDA resources as evidenced by applicant
proposals. An applicant may request up to $750,000 in total Federal
support over a period of three years. Applicants must submit project
plans and budgets for three years. The annual awards must have Scopes
of Work that are clearly severable and can be easily separated in
annual increments of meaningful work which represent solid
accomplishments if prospective funding is not made available to the
Applicant. Projects will be funded for no more than one year at a time.
Funding for subsequent years will be at the sole discretion of the
Department of Commerce (DoC) and will depend on satisfactory
performance by the recipient and the availability of funds to support
the continuation of the project.
Matching Requirements: Cost sharing of at least 30% is required.
Additional cost sharing is encouraged. Cost sharing may be in the form
of cash, third party in-kind contributions, non-cash applicant
contributions or combinations thereof. There share may also be
contributed by local, state, and private sector organizations. Some
applicants may want to apply jointly for an award to operate an MBOC.
Type of Funding Instrument: Financial assistance awards in the form
of cooperative agreements will be used to fund this program. MBDA's
substantial involvements with recipients will include performing the
following duties to further the MBOC's objectives:
1. Post-Award Conferences
MBDA will conduct post-award conferences for all new MBOC awards in
order that each MBOC have a clear understanding of the program and its
objectives. The Agency will:
Provide an MBDA Director to the MBOC.
Orient MBOC staff.
Provide and explain program reporting requirements and
procedures.
Identify available resources that may enhance the
capabilities of the MBOC.
Provide detailed information about MBDA's Phoenix-
Opportunity databases.
2. Networking, Promoting and Information Exchanges
MBDA will provide the following:
Access to the Phoenix-Opportunity databases.
Promote the exchange of new business opportunity
information within the MBDA-funded system.
Help promote special events at the local, state and
national levels in celebration of Minority Enterprise Development Week.
3. Project Management
Monitor the performance of the MBOC. This will include an
onsite review, when deemed necessary and appropriate by the Regional
Office, to verify MBOC performance. MBDA will then provide a report of
the findings and recommendations for improvement, if appropriate.
Approve qualifications of key MBOC staff.
Eligibility Criteria: State or local government entities, American
Indian Tribes, colleges, universities, and/or non-profit organizations
are eligible to operate MBOCs. Experience has demonstrated that public
and quasi-public entities such as these are best positioned within the
local market to coordinate the voluntary participation of corporate and
government officials which is so critical to an MBOC's success. For-
profit organizations are not eligible to operate MBOCs.
Award Period: The total project award period is three (3) years.
Funding will be provided annually at the discretion of MBDA and the
Department of Commerce, and will depend upon satisfactory performance
by the recipient and availability of funds to continue the project.
Project proposals accepted for funding will not compete for funding in
subsequent budget periods within the approved project award period.
Publication of this notice
[[Page 47483]]
does not obligate the Department of Commerce or MBDA to award any
specific cooperative agreement or to obligate all or any part of
available funds.
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.
Application Forms and Package: Standard Forms 424, Application for
Federal Assistance; 424A, Budget Information--Non-Construction
Programs; and 424B, Assurances--Non-Construction Programs, (Rev. 4-92);
and other Department of Commerce forms shall be used in applying for
financial assistance. These forms may be obtained by contacting MBDA as
described in the ``CONTACT'' section above. Applicants and recipients
are subject to all requirements of the CAP.
Project Funding Priorities: MBDA is especially interested in
receiving innovative proposals that focus on the following: (1)
Identifying and working to eliminate barriers which reduce the access
of minority businesses to markets and capital; (2) identifying and
working to meet the special needs of minority businesses at they seek
to enter the export marketing community; (3) promoting the
understanding and use of Electronic Commerce by minority businesses.
Evaluation Criteria: Proposals will be evaluated based on the
following criteria:
(1) Applicant Capability (25%). Considers, among other things,
knowledge of economic region, i.e., minority business demographics and
an assessment of the community's need, prior experience in the minority
business community, and relationships (ties) with organizations from
which members of the MBOC will be recruited. Includes an assessment of
the number, qualifications, experience, and proposed roles of staff who
will administer the MBOC program. Qualifications of the chairperson and
executive officer of the MBOC are particularly important. Position
descriptions should be included as part of the application.
(2) Techniques and Methodologies (40%). Includes the applicant's
plan on how to carry out the MBOC work requirements relating to
activities in the six core areas, the establishment and operation of
the MBOC itself, and the applicant's proposed strategies for overcoming
traditional barriers to the success of minority businesses. The
applicant must provide a detailed discussion relating its plan to the
particular resources and business capabilities of its service area.
Applicants and recipients are subject to all requirements in the CAP.
(3) Creativity and Innovation (15%). Can include unique or novel
approaches to solving the problems of minority businesses, the manner
in which activities are customized to meet the special economic needs
of the MBOC's service area, and creativity in the way the applicant
proposes to bring together the diverse components which are necessary
for the success of the MBOC.
(4) Proposed Budget/Cost (20%). Includes the reasonableness,
allowability, and allocability of costs. Cost sharing proposed by the
applicant is also important, particularly if the applicant proposes
cost sharing in excess of 30%.
An application must receive at least a 70% average score of all
four criteria to be considered programmatically acceptable and
responsive.
Selection Procedures: Each application will receive an independent,
objective review by a panel qualified to evaluate the applications
submitted. The independent review panel, consisting of at least three
individuals, will review all applications based on the criteria above.
The independent review panel will evaluate and rank the proposals. The
Director of MBDA makes the final recommendations to the Department of
Commerce Grants Officer regarding the funding of applications, taking
into account the following selection criteria:
(1) The evaluations and rankings of the independent review panel;
(2) The degree to which applications address MBDA priorities as
established under the project funding priorities listed above;
(3) The availability of funding;
(4) The national geographic distribution of the proposed awards.
MBDA anticipates placing at least two MBOCs in each of the Agency's
five Regions; and
(5) The mixture of large and small economic regions/markets/cities.
The amount of funds awarded to each recipient, the scope of
programmatic activities, and clarifications and/or correction of errors
will be determined and/or conducted in preaward negotiations between
the applicant, the Grants Officer, and the MBDA Program Officer.
Other Requirements
(1) Purchase of American-Made Equipment and Products: Applicants
are hereby notified that they are encouraged, to the greatest extent
practicable, to purchase American-made equipment and products with
funding provided under this program.
(2) Paperwork Reduction Act: This notice involves collections of
information subject to the Paperwork Reduction Act, which have been
approved by OMB under OMB control numbers 0348-0043, 0348-0044, 0348-
0040, and 0348-0046. Notwithstanding any other provision of law, no
person is required to respond to nor shall a person be subject to a
penalty for failure to comply with a collection of information subject
to the requirements of the Paperwork Reduction Act unless that
collection of information displays a current valid OMB control number.
(3) Federal Policies and Procedures--Recipients and subrecipients
are subject to all Federal laws and Federal and DoC policies,
regulations, and procedures applicable to Federal financial assistance
awards.
(4) Past Performance--Unsatisfactory performance under prior
Federal awards may result in an application not being considered for
funding.
(5) 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 may have been received, there is no obligation on the
part of DoC to cover preaward costs.
(6) No Obligation for Future Funding--If an application is selected
for funding, DoC 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 DoC.
(7) 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 DoC are made.
(8) 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.
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(9) 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,
``Limitation 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.
(10) 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 complete 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 DoC. SF-LLL
submitted by any tier recipient or subrecipient should be submitted to
DoC in accordance with the instructions contained in the award
document.
(11) 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.
(12) Intergovernmental Review. Applications under this program are
not subject to Executive Order 12372, ``Intergovernmental Review of
Federal Programs.''
(13) Executive Order 12866. It has been determined that this notice
is not significant for purposes of Executive Order 12866.
Dated: September 2, 1998.
Courtland Cox,
Director, Minority Business Development Agency.
[FR Doc. 98-24030 Filed 9-4-98; 8:45 am]
BILLING CODE 3510-21-M
