[Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31381]
[[Page Unknown]]
[Federal Register: December 21, 1994]
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DEPARTMENT OF COMMERCE
Technology Administration
[Docket No. 941246-4346]
RIN 0693-AB37
Financial Assistance for Research and Development, U.S.-Israeli
Science and Technology Program
AGENCY: Technology Administration, Commerce.
ACTION: Notice of availability of funds.
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SUMMARY: The Under Secretary for Technology of the United States
Department of Commerce announces the availability of financial
assistance under a pilot U.S.-Israeli Science and Technology Program
(the ``Program''). The Program will assist U.S.-based industrial firms
that have entered into U.S.-Israeli joint ventures (partnerships of
United States and Israeli companies) to carry out research and
development on long-term, medium- to high-risk technologies. This
Program is separate from the existing Bi-national Industrial R&D
Foundation (BIRD), which continues to offer support for commercial
joint ventures. Inquiries about BIRD assistance should be addressed
directly to the BIRD Foundation, Tel Aviv, Israel.
Such projects should focus on research, development and
commercialization of technologies that are not appropriately funded by
other U.S. or Israeli government-funded research and development
efforts. This assistance will take place through the use of cooperative
agreements with U.S.-based industrial firms pursuant to this Notice.
Funding will be made directly to the U.S. firms that are partners
in the U.S.-Israeli joint ventures. Funding from the U.S. Department of
Commerce for the pilot Program is limited to the U.S. partner(s) to a
U.S.-Israeli joint venture, with funding for the Israeli partner(s) to
be provided by the Israeli Government.
DATES: Applications must be received on or before January 20, 1995.
Preliminary applications (in the form of a Letter of Intent) to be
considered for a possible second round of awards, which is planned to
be conducted in the spring of 1995, may also be submitted during this
time period. This letter should provide the name, address, and phone
number of the principal point of contact for the anticipated proposal
and a brief (one paragraph) abstract of the proposal. Technical areas
to be covered by the proposal program should be summarized in the
abstract. It is expected that the review and selection process will
take approximately thirty (30) days.
ADDRESSES: Applications must be submitted to: U.S.-Israel Science and
Technology Commission, Room 7068, U.S. Department of Commerce,
Washington, D.C. 20230.
FOR FURTHER INFORMATION CONTACT: Lee Bailey, Executive Director, Office
of International Technology Policy, telephone number (202) 482-6351.
supplementary information: In March, 1993, President Clinton and
Israeli Prime Minister Yitzhak Rabin announced their intention to
create the U.S.-Israeli Science and Technology Commission (the
``Commission'') to promote U.S.-Israeli cooperative science and
technology activities that could benefit the two nations' civilian high
technology commercial sectors, and create jobs and economic growth.
Funding is intended for projects (1) that will have significant
economic benefits for both the United States and Israel and (2) that in
general are in the areas of the environment, energy, health,
biotechnology, information processing/telecommunications or
agriculture, or in the commercialization of defense technologies.
This program announcement has been determined to be not significant
for purposes of Executive Order 12866.
Authority--The Under Secretary for Technology, pursuant to the
authority delegated to her by Section 3706 of Title 15 of the U.S.
Code, as well as Secs. 2.02 and 4.03(d) of Department Organization
Order 10-17, dated July 14, 1992, is implementing this activity.
Program Description--The Program will assist eligible U.S.-based
industrial firms that have entered into U.S.-Israeli joint ventures
(partnerships of United States-based and Israeli-based companies) to
carry out research and development of long-term, medium- to high-risk
technologies that offer significant economic benefits, that are focused
on commercialization and that are not appropriately funded by other
U.S. and Israeli government-funded research and development efforts.
This assistance will take place through the use of cooperative
agreements. U.S. Commerce Department assistance is offered to promote
the economy of the U.S. via the creation of new technologies and the
commercialization of new and existing technologies.
Funding Availability--The U.S. Government and the Government of
Israel are each making available up to $5 million for this pilot
Program for qualified projects. It is expected that a number of awards
will be announced before the end of February 1995. Within the limits of
available funding, there is no predetermined minimum or maximum award.
The funds may be spent toward research and development activities
consistent with the goals set forth in this Notice.
Matching Funding Requirements--Federal financial assistance must be
accompanied by at least an equal matching investment by the U.S.-based
firm(s) party to each U.S.-Israeli joint venture. In the event there
are multiple U.S.-based firms in a given U.S.-Israeli joint venture,
the aggregate investment of the U.S. partners must at least equally
match the Federal investment in that project.
Eligibility Requirements--The Program will accept proposals only
from U.S.-Israeli joint ventures led by one U.S.-based industrial
partner and one Israeli-based industrial partner. In general, awards
will not be made to a joint venture composed of affiliated U.S.- and
Israeli-based partners. Concerns are considered to be affiliates of
each other when either directly or indirectly (a) one concern controls
or has the power to control the other, or (b) a third party or parties
controls or has the power to control both, or (c) an identity of
interest between or among parties exists such that affiliation may be
found.
Federal financial assistance will be given only to U.S.-based
industrial partner or to a consortia led by U.S.-based industrial
partners. A U.S.-based industrial partner, or a consortia led by U.S.-
based industrial partners, shall be eligible to receive assistance
under this Program only if the U.S.-based industrial partner, or each
member of the consortia, is incorporated in the United States and has
its principal place of business in the United States.
Project Eligibility
Proposed projects must meet the following criteria:
Must be in one of the following areas: the environment,
energy, health, biotechnology, information processing/
telecommunications, the commercialization of defense technologies, or
agriculture. Further, the project must be for research and development
activities in long term, medium- to high-risk technologies, and which
show a plan to commercialization within 48 months.
Must include technical innovation, significant commercial
potential, and economic benefit to both countries.
Award Period--The duration of Federal financial assistance to a
U.S.-based industrial firm will not exceed four years.
Indirect Costs--Indirect costs will not be funded under this
Program.
Application Forms and Kit--Applicants must submit one (1) signed
original plus two copies of each application. Standard Forms 424 and
424A, Application for Federal Assistance (which have been approved by
OMB Control No. 0348-0043 and 0348-0044, respectively) shall be used in
applying for financial assistance, plus such additional information as
is needed to permit the evaluation of the applications on the criteria
set forth below. This information includes but is not limited to:
Background information on the participating companies;
Technological and commercial objectives of the project;
Relationships of the project to each company's business
and development strategy;
Description of the project and technology involved;
Plans for commercialization, within 48 months;
Adherence of the project and/or technology to the
Commission's priority guidelines;
Proposed time schedule;
Provisions for the protection of intellectual property;
and
Commercialization and technological benefits.
Evaluation Criteria--Factors within each criteria (labelled i, ii,
iii, etc.) will be weighed equally. No project will be funded in the
absence of a finding of technical and commercial merit by the
reviewers. The evaluation criteria to be used in selecting any proposal
for funding under this program, and their respective weights, are:
(1) Scientific and Technical Merit of the Proposal (20 percent).
(i) Quality and innovativeness of the proposed technical program
(i.e. uniqueness with respect to current industry practice).
(ii) Technical feasibility of the project (i.e., are the technical
objectives realistic?).
(iii) Coherency of technical plan and clarity of vision of
technical objectives.
(iv) Breadth of impact of accomplishment of technical objectives.
(2) Commercial Benefits of the Proposal (25 percent).
(i) Commercial potential of the technology in the proposed venture.
(ii) Potential to improve U.S. Israeli economic growth and the
productivity of a broad spectrum of industrial sectors or businesses
within an economically important single sector.
(iii) Timeliness of proposal (i.e. the project results will not
occur too late to be competitively useful in the marketplace).
(3) Commercialization Plans for the Project (15 percent).
(i) Evidence that the participants will pursue commercial
application of the technology including production and distribution
plans.
(ii) Project plan adequately addresses technology transfer and
ownership requirements to assure prompt and widespread use and
protection of results by participants and, as appropriate, others.
(4) Qualifications of the Proposing Organization(s) (20 percent).
(i) Quality and appropriateness of proposer's commercial and
managerial staffing, facilities, equipment, and other resources to
accomplish the proposed program objectives.
(ii) Quality and appropriateness of the technical staff to carry
out the proposed work program and to identify and overcome technical
barriers to meeting project objectives.
(iii) For proposals involving laboratory prototype development,
evidence of availability of adequate design and manufacturing tools
appropriate to the prototype.
(5) Proposer's Level of Commitment and Organizational Structure (20
percent).
(i) Appropriateness of the structure of the proposed organization
in terms of composition of participants (i.e. vertical and/or
horizontal integration) and existing relationships among the parties.
(ii) Level of commitment of proposers as demonstrated by
contribution of personnel, equipment, facilities, and matching funds.
(iii) Appropriate participation by U.S. small business.
(iv) Evidence of a strong commitment by applicants to complete and,
if appropriate, provide support for continuation of the program beyond
the period of funding.
Selection Procedures.--The selection process for awards is
a multi-step process based on the criteria listed above.
In the first step, called the ``preliminary screening,''
representatives from both governments (hereinafter the ``Joint Panel'')
will review the applications and will eliminate those that do not meet
the threshold Eligibility Requirements listed above. Further
disqualifications will be made if the application is deemed to have
serious deficiencies in the technical and/or business plan, if the
application does not fall within the overall scope of the Program, or
if the application is more appropriately funded by other U.S. or
Israeli government-funded research and development efforts.
In the second step, referred to as the ``technical and
business review,'' applications are evaluated under the preceding
Evaluation Criteria. Applications are rated as ``not recommended'' or
``recommended.'' Applications must have high scientific and technical
merit to be recommended. Only those applications rated as
``recommended'' are considered further. Such applications are referred
to as ``semifinalists.'' If a majority of either country's
representatives rate an application as ``not recommended,'' that
application will be disqualified.
In the third step, referred to as ``selection of
finalists,'' the Joint Panel will prepare a final scoring and ranking
of recommended semifinalist applications, based upon evaluative
criteria. A list of ranked finalists is then submitted to each
respective nation's Selection Official.
In the final step, referred to as the ``selection of
awardees,'' the Selection Officials select funding recipients from
among the finalists, based upon the rank order of the applications on
the basis of all Evaluation Criteria (see above), assuring appropriate
distribution of funds among technologies, activities and recipients,
the availability of funds, and upon a determination as to the
responsibility of the applicant. The decision of the Selection
Officials is final. Applicants not chosen will be notified.
In the event that a U.S.-Israeli joint venture is ranked
as a finalist, but is determined to contain weaknesses in its structure
or cohesiveness that may substantially lesson the likelihood of the
proposed project's success, the applicant may be informed of the
deficiencies and negotiations may be entered into with the applicant in
an effort to remedy the deficiencies. If appropriate, funding up to 10%
of the amount originally requested by the applicant may be awarded by
the Program to the applicant to assist in overcoming the organizational
deficiencies, or in the conduct of feasibility studies. If the Program
determines within six months that the organizational deficiencies have
been corrected, the Program may award over the life of the project the
remaining funds requested by that applicant to that applicant.
The Program reserves the right to negotiate with
applicants selected to received awards over the cost and scope of the
proposed project, e.g., to add or delete a task in order to improve the
probability of success.
Funding Logistics--Funding will be made directly to the U.S.-based
firm(s) that is/are party to the U.S.-Israel joint venture.
Rights to Inventions--The provisions of the Bayh-Dole Act (35
U.S.C. Sec. 201, et seq., concerning patent rights in inventions made
with Federal assistance) and the Government Patent Policy set forth in
President Reagan's memorandum to the heads of Executive Departments and
Agencies, dated February 18, 1983, shall apply to all Federally-funded
research and development activities performed under this Program.
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 U.S. Government. Notwithstanding any verbal or
written assurance that may have been 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 under the pilot Program, there is 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 awarding entities. An annual review of each
award will be conducted to determine the worthiness of continued or
additional future funding.
(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 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. Funding recipients (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 or component entity
thereof 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) Purchase of 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 in accordance with
Congressional intent as set forth in the resolution contained in Public
Law 103-317, sections 607 (a)-(b).
(12) The implementation and conduct of this Program is contingent
upon the availability of all funding anticipated for its operation. The
Commerce Department reserves the right to discontinue this Program in
the event all funding is not made available or is otherwise not
secured.
Dated: December 9, 1994.
Mary Lowe Good,
Under Secretary of Commerce for Technology, U.S. Department of
Commerce.
[FR Doc. 94-31381 Filed 12-20-94; 8:45 am]
BILLING CODE 3510-18-M