[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.

[[Page 47484]]

    (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