[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)] [Notices] [Pages 11416-11421] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-5910] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [Docket No. 970424097-8019-03] RIN 0625-ZA05 Market Development Cooperator Program AGENCY: International Trade Administration (ITA), Commerce. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: ITA promotes U.S. exports and works to improve the global competitiveness of the United States, creating jobs for Americans. ITA has created the Market Development Cooperator Program (MDCP) to build public/private export marketing partnerships. The MDCP is a competitive matching grants program that provides federal assistance to non-profit export multipliers such as states, trade associations, chambers of commerce, world trade centers and other non-profit industry groups that are particularly effective in reaching small-and medium-size enterprises (SMEs). MDCP awards help to underwrite the start up costs of exciting new export promotion ventures which these groups are often reluctant to undertake without federal government support. 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, particularly SMEs, taking decisive export actions. The advantage of a joint effort is that it permits the federal 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, as appropriate, 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 proposal are described below. No one 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 the 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 April 3. Attendance at this public meeting is not required of potential applicants. The purpose of the meeting is to provide general information to potential applicants regarding MDCP procedures, selection process, and proposal preparation. No discussion of specific proposals will occur at this meeting. DATES: The public meeting will be held from 2-4 p.m, on April 3, in Room 6808, at the Herbert Clark Hoover Building, 14th and Constitution Avenue, N.W., Washington, D.C. Completed applications must be received no later than 5 p.m. Eastern Standard Time May 4, 1998. Late applications will not be [[Page 11417]] accepted. They will be returned to sender. Application kits will be available from the Department of Commerce starting March 9, 1998. ADDRESSES: The public meeting will be held from 2-4 p.m., on April 3, in Room 6808, at the Herbert Clark Hoover Building, U.S. Department of Commerce, 14th and Constitution Avenue, N.W., Washington, D.C. 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 3221, U.S. Department of Commerce, Washington, D.C. 20230. Application kits may also be picked up in Room 3209, 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 3221, 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 3221, 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. 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 have been undertaken by current and past MDCP 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) Commissioning overseas market research, participating in overseas trade exhibitions and trade missions to promote U.S. exports, and/or hosting reverse trade missions; (4) Overseas U.S. product demonstrations; (5) Export seminars in the United States or market penetration seminars in the market(s) to be developed; (6) Technical trade servicing that helps overseas buyers choose the right U.S. goods or services and to use the good or service efficiently; (7) Joint promotions of U.S. goods or services with foreign partners; (8) Training of foreign nationals to perform after-sales service or to act as distributors for U.S. goods or services; (9) 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; (10) 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 (11) Establishing an electronic business information system to identify overseas trade leads and facilitate matches with foreign partners for U.S. businesses. Funding Availability The total amount of funds available for this program is $2.0 to $2.25 million for fiscal year (FY) 98. The Department expects to conclude a minimum of five (5) cooperative agreements with eligible entities for this program. No award will exceed $400,000, regardless of the duration of the cooperative agreement. Matching Requirements To receive MDCP funding, the applicant must contribute at least two dollars for each federal dollar provided. In satisfying this matching requirement, the applicant must make one dollar of new cash outlays expressly for the project for each federal dollar of MDCP funding. The balance of the applicant's support may consist of in-kind contributions (goods and services). Recipient cash contributions are defined in OMB Circular A-110, Sec. ____.2(f) as the recipient's cash outlay, including the outlay of money contributed to the recipient by third parties. In order for a recipient to outlay cash contributed by a third party, the third party must transfer the funds to the recipient. Otherwise, expenditures for goods and services contributed by a third party are considered to be in-kind contributions. For example, an applicant requesting $200,000 of federal funds must supply, at a minimum, $200,000 of new cash outlays expressly for the project. The remaining $200,000 of the required match can be made up of additional new cash outlays or in-kind contributions. Applicants may propose projects for which the applicant's match will exceed two applicant dollars to each federal dollar. However, private sector matches exceeding program guidelines have consequences in the disbursement of funds. A cost share ratio is established for each award winner based upon the award winner's share of the total cost of the project. Funds are disbursed using this ratio. For example, a project for which the applicant will assume 3/4 of the total cost will have a cost share ratio of 75 percent applicant/25 percent federal. In requesting a disbursement of federal dollars, the award winner will have to generate $3 in grant expenditures for each dollar it wants to obtain in federal grant monies. In the proposed budget, all in-kind contributions to be used in meeting the [[Page 11418]] 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. 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. 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. Fees generated under the award are program income and must be used for project related purposes during the award period. 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. To administer each cooperative agreement, a project team is established including key personnel from the award winning organization and officials from ITA who can help award winners achieve MDCP project objectives. If representatives from other federal agencies can make a meaningful contribution to the achievement of project objectives, they are invited to participate on the project team. Each project team acts as a ``board of directors'' specifying direction or redirection of the scope of work of the project and determining mode of project operations and other management processes, coupled with close monitoring or operational involvement during performance of project activities. At the beginning of each fiscal year, the project team negotiates an annual operating plan setting forth specific activities that will take place, project responsibilities and how much each activity will cost. In addition to participating on project teams, ITA staff may work directly on individual MDCP project activities. Eligibility Criteria U.S. 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 ``trade association'' is defined as a fee based organization 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. For the purpose of this program, a ``nonprofit industry organization'' is an organization that is classified as a nonprofit organization under Title 26 U.S.C. Section 501(c) (3), (4), (5), or (6) and operates as one of the following: (1) A local, state, regional, or national chamber of commerce; (2) a local, state, regional, or national board of trade; (3) a local, state, regional, or national business, export or trade council/interest group; (4) a local, state, regional, or national visitors bureau or tourism promotion group; (5) a local, state, regional, or national economic development group; (6) a Small Business Administration Small Business Development Center; (7) a world trade center; (8) a port authority; or a (9) free trade zone. Prospective applicants are strongly encouraged to seek advice on their eligibility to enter the MDCP competition, according to the criteria above. To obtain advice regarding eligibility, the applicant should submit basic organizational documents (e.g. charters, articles of incorporation) and information on types of members, membership fees, ties to state trade departments or their regional associations, organizations's purpose, and activities, and IRS status. All requests for advice regarding eligibility should be received no later than April 3, 1998. Applicants are advised to continue working on proposals while awaiting advice on eligibility. Absolutely no extensions of the deadline for submitting applications will be granted. Eligible U.S. entities may join together to submit an application as a joint venture and to share costs. For joint venture applicants, one organization meeting the above eligibility criteria must be designated as the prospective MDCP grant recipient organization for administrative purposes. 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 an established 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 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. Additional information delineating U.S. commercial policy may be obtained from the 1997 Trade Promotion Coordinating Committee's National Export Strategy. 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. [[Page 11419]] Indirect Costs Department of Commerce funds can not be used to pay indirect costs. The total dollar amount of the indirect costs proposed in an application under this program (using recipient funds) 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 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 ITA is especially interested in receiving proposals that focus in whole or in part on the following ITA priorities: (1) Monitoring foreign compliance with our trade agreements such as NAFTA, WTO and sector-specific agreements; (2) Identifying and working to eliminate tariff and non-tariff barriers to market access for U.S. goods or services, including working with organizations in the foreign marketplace responsible for setting standards and for product testing; (3) Understanding the export aversion of SMEs, targeting export- ready SMEs, and offering export assistance services designed to meet the special needs of SMEs as opposed to just offering SMEs the opportunity to participate in activities aimed broadly at the entire export marketing community; (4) Improving communication with and outreach to old and new private sector international trade constituencies and initiating or enhancing public/private export partnerships. 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). Background Research Developing a project plan requires solid background research. Applicants should study, and applications should reflect the findings of 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). In their applications, applicants should present 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 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 success stories and/or export initiatives in both the short and medium-term. For purposes of this program, an export initiative is defined as a significant expenditure of resources (time, people or money) by the CEO of a company in the active pursuit of export sales. Examples of export initiatives include, but are not limited to the following: (a) An overseas trip by a CEO to explore a new market; (b) Participation in an overseas trade promotion event; (c) Hiring an export manager; (d) Establishing an export department; (e) Enrolling in a college level export marketing course; (f) Developing an export marketing/business plan; (g) Translation of product literature into a foreign language; (h) Making product modifications to comply with foreign market requirements; (i) Commissioning an in-depth market research study; (j) Advertising in a foreign business publication; (k) Undertaking an overseas direct mail campaign to create product awareness; (l) Signing an agent/distributor; (m) Introduction to a potential foreign buyer; (n) Signing an export contract/filling an export order. (o) Co-location with a US&FCS Commercial Center. Applicants should provide detailed explanations of projected project results. (2) Projected increase (multiplier effect) in the number of U.S. companies operating in the market(s) selected, particularly SMEs, and the degree to which the project will help the industry in question increase or maintain market share in the market/s selected. Applicant should provide quantifiable estimates of projected increases. (3) The degree to which the proposal furthers or is compatible with ITA's priorities stated above and the degree to which a proposal initiates or enhances partnership with the Department of Commerce. (4) Creativity and innovation displayed by the work plan while at the same time being realistic and the institutional capacity of the applicant to carry out the work plan. Creativity and innovation can be displayed in a variety of ways. Applicants might propose projects that include ideas not previously tried before to promote a particular industry's goods or services in a particular market. Creativity can be demonstrated by the manner in which techniques are customized to meet the specific needs of certain client groups. A proposal can be creative in the way it brings together the strengths and resources of partners participating in project activities. Further, projects that focus on market development are inherently more creative than projects that focus only on export promotion. Market development is the process of identifying or creating emerging markets or market niches and modifying products to penetrate those markets. Market development is demand driven and designed to create long term export capacity where not only current [[Page 11420]] products can be sold, but future products as well. Current or past MDCP applicants should be aware that to be in a position to earn the maximum number of points under this criterion, they should propose projects that are entirely new. If a current or past MDCP applicant chooses to propose an expansion of an existing or past project, the expansion should be the majority of the total project for the proposal to earn a high score on this criterion. In addition, current or past MDCP applicants that apply proposing an expansion of an existing or past project must clearly demonstrate how the expansion, standing alone, is creative and innovative in accordance with the above definition. (5) Reasonableness of the itemized budget for project activities, the amount of the cash match that is readily available at the beginning of the project, and the probability that the project can be continued on a self-sustained basis after the completion of the award. Current or past MDCP recipients who propose an expansion of an existing project must show how the expansion will achieve self- sustainability independent of current or past projects funded under the MDCP. Each of the above criteria is worth a maximum of 20 points. Selection Procedures Each application will receive an independent, objective review by a panel qualified to evaluate the applications submitted under the program. The Independent Review Panel, consisting of at least three people, will review all applications based on the criteria stated above. The Independent 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 Independent 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 Independent Review Panel; (2) The degree to which applications satisfy ITA priorities 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). GPRA requires each federal agency to submit a strategic plan for program activities to OMB. Among other things, each strategic plan must include ``performance indicators to be used in measuring or assessing the relevant outputs, service levels and outcomes of each program activity.'' While not abandoning outputs (units of products, including services, of an activity) as a measure of achievement, OMB directed agencies to focus more on outcomes (the resulting effect of the use or application of an output) as the primary indicator of the success of programs and activities. Beginning with the submission of its FY 1998 budget, ITA began reporting results using the GPRA measures defined for its programs and activities. Many of these measures apply only to the programs and activities of ITA and have little relevance to the activities of MDCP award winners. The following performance measures, however, have particular applicability to MDCP projects: Outcome Measures Dollar Value of Exports Resulting from Outputs. Number of New-to-Export Firms Participating in Activities. Number of New-to-Market Firms Participating in Activities. Degree of Customer Satisfaction (value of outputs determined by perception of customer based on their expectation of the output versus the plan, an agreed upon specification or other criteria). Output Measures Number of Counseling Sessions. Number of Clients Counseled. Number of Reports (Publications) Prepared. Number of Copies of Reports (Publications) Distributed. Number of Trade Events. Number of Firms Participating in Trade Events. All award winners active in the MDCP during FY 1997 were asked to use these measures in their quarterly reports and to provide an end-of- year assessment of the accomplishments of their projects using these measures. Applicants for this year's MDCP competition should be mindful of these performance measures and should use them wherever possible when estimating projected project results in their proposals. As was the case in FY 1997, all active MDCP award winners in FY 1998 will be asked to use these measures in quarterly reports and to provide an end- of-year assessment of the accomplishments of their projects using these measures. Therefore, winners of the FY 1998 MDCP award competition should be prepared upon receipt of an award to put in place a system to capture the results achieved from project activities. Each applicant should describe this system in its proposals. Applicants are encouraged to develop and utilize additional performance measures they find meaningful to demonstrate the success of their projects. 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: a. The delinquent account is paid in full, [[Page 11421]] b. A negotiated repayment schedule is established and at least one payment is received, or c. 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: a. 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; b. Drug-Free Workplace Grantees (as defined at 15 CFR part 26, section 605) are subject to 15 CFR part 26, subpart F, ``Government wide Requirements for Drug-Free Workplace (Grants)'' and the related section of the certification form prescribed above applies; c. 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 d. 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. 12. Fly America Act All award recipients must comply with the provisions of the Fly America Act. Classification This notice has been determined to be not significant for purposes of Executive Order 12866. The standard forms referenced in this notice are cleared under OMB Control No. 0348-0043, 0348-0044, 0348-0040, and 0348-0046 pursuant to the Paperwork Reduction Act. Notwithstanding any other provision of law, no person is required to respond 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 currently valid OMB Control Number. Dated: March 4, 1998. Jerome S. Morse, Director, Resource Management and Planning Staff, Office of Planning, Coordination and Resource Management Trade Development, International Trade Administration. [FR Doc. 98-5910 Filed 3-6-98; 8:45 am] BILLING CODE 3510-DR-P