[Federal Register Volume 61, Number 167 (Tuesday, August 27, 1996)]
[Notices]
[Pages 44035-44036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21815]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 /
Notices
[[Page 44035]]
DEPARTMENT OF AGRICULTURE
Alternative Agricultural Research and Commercialization (AARC)
Corporation; Request for Proposals
AGENCY: Alternative Agricultural Research and Commercialization (AARC)
Corporation, USDA.
ACTION: AARC Corporation Request for Proposals.
-----------------------------------------------------------------------
Program Description
Purpose
The Alternative Agricultural Research and Commercialization (AARC)
Corporation is requesting proposals to use agricultural (traditional
and new crops, animal by-products or forestry) materials in industrial
products or processes. The authority for the AARC program is contained
in Sections 1660 and 1661 of the Food, Agriculture, Conservation, and
Trade Act of 1990, Pub. Law No 101-624, 7 U.S.C. 5904, as amended by
the Federal Agricultural Improvement and Reform (FAIR) Act of April 4,
1996, (Pub. Law 104-127, Title VII, subtitle A, chapter 2, section
1657c). Potential funding for proposals to provide commercialization
assistance to private companies using the Cooperative Agreements
Program (Program) to assist emerging industrial products/processes
involving the use of agricultural materials in non-food, non-feed, non-
traditional fiber products or processes. The Board of Directors
reserves the right to use only certain types of authorized assistance.
Successful projects are expected to repay the AARC Corporation
Revolving Fund through negotiated arrangements. The Program is
administered by the AARC Corporation, which is a wholly-owned
government Corporation of the U.S. Department of Agriculture.
The objectives of the AARC Corporation are:
* To search for new non-food, non-feed, non-traditional fiber
products that may be produced from agricultural commodities and for
processes to produce such products.
* To conduct product and co-product/process development and
demonstration projects, as well as provide commercialization
assistance for industrial products from agricultural and forestry
materials.
* To encourage cooperative development and marketing efforts
among manufacturers, private and government laboratories,
universities, and financiers to assist in bridging the gap between
research results and marketable, competitive products and processes.
* To collect and disseminate information about commercialization
projects that use agricultural or forestry materials and industrial
products derived therefrom.
Under the Program, the AARC Corporation will award competitive
cooperative agreements to support primarily pre-commercialization or
commercialization tasks, including marketing for the development of new
industrial products or processes derived from agricultural or forestry
materials. All other things equal, the nearer to commercialization a
product or process is, the higher the likelihood of funding by the AARC
Corporation.
The AARC Corporation will accept either pre-proposals or full
proposals. Pre-proposals will be evaluated to determine if an idea has
sufficient merit to warrant a full proposal, including if it meets the
AARC Corporation's mission, and to provide suggestions for improvement.
Full proposals will require more time to complete and will be evaluated
to determine if they warrant funding. The AARC Corporation may ask
applicants submitting either pre-proposals or full proposals to make an
oral presentation. All proposals will be evaluated by external
reviewers, as well as by the AARC Corporation staff, before the
proposals (along with review comments) are provided to the Board of
Directors. The Board makes final funding decisions.
Available Funding
Congress has agreed to appropriate $7 million in FY 1997.
The AARC Corporation Board expects applicants to, at minimum, match
the dollars requested from the AARC Corporation. A preference may be
given to projects for which the ratio of AARC Corporation funds to non-
Corporation funds would be the lowest.
Eligibility
Proposals are invited from any private firm, individual, public or
private educational institution or organization, federal agency,
cooperative, or non-profit organization. Cooperative projects involving
combinations of the above organizations, especially with private sector
leadership, are strongly encouraged. Since this is basically a program
to commercialize new products, and since repayment is expected, it is
much more likely that awards will be given to private firms. Small
business entrepreneurs are preferred. The private sector partner must
take the lead when an educational institution is involved.
Program Emphasis
The AARC Corporation Board has approved funding for about 60
projects using 1993-96 appropriated funds. Another six projects are
currently under consideration for funding with 1996 appropriations.
Projects include use of a broad range of agricultural and forestry
materials such as: soybean oil, soybean meal, cotton lint, peanut
hulls, corn husks, wheat straw, milkweed, kenaf, castor oil, rapeseed,
cuphea, crambe, ethanol, mesquite, hesperaloe, lesquerella,
agricultural and forestry wastes, biomass, and plant proteins. Examples
of products include: biocontrol agents, medium-density fiberboard and
building materials from straw, hollow veneer poles, food packaging,
bonded paper from kenaf, oil absorbents, fillers and yarn, spinning
fibers, highway signposts and railroad ties, building and furniture
composites, heating and electricity, potting mixes, biodiesel--as
replacement for petroleum, biodegradable lubricants, coatings,
cosmetics, detergents, personal care products, compost, carrier for
crop protection materials, and cat litter.
Evaluation Criteria
The AARC Corporation's primary interest, in this request for pre-
proposals/proposals, is in providing assistance in pre-commercial
activities to move new industrial products from agricultural and
forestry materials into the marketplace. The AARC Corporation Board
seeks projects that will have market impact; this includes expanding
use of agricultural or forestry materials in industrial products
especially those that expand markets for farmers, create
[[Page 44036]]
jobs, spur rural development, provide environmental and/or conservation
benefits, and improve trade. Emphasis will be given to those proposals
whose products are closest to commercialization and have positive
impact on rural employment and economic activity.
Proposals and pre-proposals will be evaluated on four primary
criteria: management team capability, business and marketing soundness,
technical factors, and expected time and magnitude of impacts if
successful. Examples of types of information that will enter the
decision process on each of the primary categories of criteria include:
Management: Capability of the management team.
Amount of matching funds (cash) committed.
Awareness of the financial resources needed to successfully
market the product.
Clear identification of project milestones.
Private sector leadership to commercialize the product or
process.
Business: Potential profitability.
Clear identification of customers.
Structure of the market in terms of size, number, leading
competitors, and reaction of competitors to a new product.
Amount and nature of the value added to the agricultural or
forestry material.
Ability to replicate in other parts of the country.
Key issues and government policies or regulations that might
impact success.
Applicant's ability and willingness to repay the AARC
Corporation for the risk investment made by the American taxpayers.
Technical: Relation to previous work.
Technical requirements of the product--industry standards or
guidelines.
Technical and market testing needed.
Government approvals or permit required.
Major technical hindrances.
Innovative techniques and patents.
Ability to achieve technical claims.
Present stage of development.
Impacts: Volume of agricultural or forestry material used.
Number and quality of jobs (especially in distressed rural
areas) expected to be created--type, rural/urban, timeframe.
Potential positive and negative environmental impacts from
production to consumer disposal of product.
Proposed product's implications for helping improve farm income,
especially the family farm.
Resource conservation effects such as replacement of stock
resources, crop diversification, soil erosion, water use, etc.
Estimated impact on export/import trade balance, commodity
support programs and rural economic activity.
Other Considerations
With respect to projects carried out with private researchers or
commercial companies, the enabling legislation provides that
information submitted by applicants incident thereto will be kept
confidential. Project information including applications is
specifically excluded from release under the Freedom of Information
Act, except with the approval of the person providing the information
or in a judicial or administrative proceeding in which such information
is subject to protective order. However, the information will be
reviewed by three reviewers who will be held to confidentiality. Board
members are required to exclude themselves from consideration of a
proposal where a conflict of interest exists.
Intellectual property rights, such as patents and licenses, shall
remain with the owner unless other arrangements are negotiated as part
of the agreement. Inventions made under an award under this Program
shall be owned by the awardee in accordance with 35 U.S.C. 200-204 and
37 CFR 401.
No agreement may be entered into under the program for the
acquisition or construction of a building or facility.
All applicants must file a declaration of compliance with 31 U.S.C.
1352 regarding limitation on the use of appropriated funds to influence
certain Federal contracting and financial transactions either prior to
or simultaneous with the submission.
Due to limited funds, the AARC Corporation may not be able to fund
all projects meriting support, and awards will be based on merit using
the review evaluations and the Board's judgement.
Applicants who submitted a proposal or pre-proposal previously must
reapply to be considered for Fiscal Year 1997 funding.
Future Proposals
In the future and until further notice, the AARC Corporation Board
will accept proposals or pre-proposals at any time on AARC Corporation
forms. The Board will meet at least three times a year to select
proposals for funding.
Submissions
Because funds are limited, projects will be accepted on a first
come basis. Applicants are encouraged to submit applications as soon as
possible after seeing this notice. To be eligible for this round of
AARC Corporation Board decisions, both pre-proposals and full proposals
must be received at the AARC Corporation office. Pre-proposals are
preferred. One of the following addresses should be used, as
applicable:
Regular U.S. Mail
USDA AARC Corporation, STOP 0401, 1400 Independence Ave, S.W., 0156
South Building, Washington, D.C. 20250-0401
Overnight Delivery
USDA AARC Corporation, 1400 Independence Ave, S.W., Room 0156 South
Building, Washington, D.C. 20250-0401
For More Information
Proposals must be submitted on forms provided by the AARC
Corporation--either pre-proposals or full proposals. Contact the AARC
Corporation by letter using the addresses above, or fax number (202)
690-1655 to receive a packet containing the instructions and
application forms.
Specific questions should be directed to Patricia Dunn: Phone 202-
690-1634.
Done in Washington, D.C., on August 21, 1996.
W. Bruce Crain,
Executive Director, AARC Corporation.
[FR Doc. 96-21815 Filed 8-26-96; 8:45 am]
BILLING CODE 3410-2B-M