[Federal Register Volume 64, Number 84 (Monday, May 3, 1999)]
[Notices]
[Pages 23599-23605]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11018]
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DEPARTMENT OF COMMERCE
International Trade Administration
[Docket No. 970424097-9097-04]
RIN 0625-ZA05
Market Development Cooperator Program
AGENCY: International Trade Administration (ITA), Commerce.
ACTION: Notice.
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SUMMARY: ITA promotes U.S. exports and works to improve the global
competitiveness of the United States, creating jobs for Americans. ITA
administers 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 export
multipliers such as state trade departments, trade associations,
chambers of commerce, world trade centers and other non-profit industry
organizations that are particularly effective in reaching small-and
medium-size enterprises (SMEs). MDCP awards help to underwrite the
start-up costs of 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 can provide a sharper focus on long-term export market development
than do traditional trade promotion activities. These partnerships also
serve as a mechanism for improving government-industry relations.
While ITA sponsors, guides and partially funds MDCP projects, ITA
expects applicants to develop, initiate and provide matching funding to
carry out market development project activities. As an active partner,
ITA will, as appropriate, provide assistance that the applicant
identifies as 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 under ``Program Description.'' No
one or any combination of these activities must be included for a
proposal to receive favorable consideration. ITA 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 applicants working in partnership
with the government to obtain the maximum market development impact.
A public meeting will be held 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. Attendance at this public meeting by potential applicants
is not required.
DATES: Public Meeting: ITA will hold a public meeting to discuss MDCP
proposal preparation, procedures, and selection process on May 21,
1999. The meeting will begin at 10:00 a.m. in Room 1863, at the Herbert
Clark Hoover Building, 14th and Constitution Avenue, N.W., Washington,
D.C.
Pre-Application Counseling: The Office of Planning, Coordination
and Resource Management (OPCRM) is available to answer questions
regarding the application process. ITA invites all prospective
applicants to contact OPCRM as soon as possible with any questions
about application requirements, evaluation factors, and the selection
process. Prospective applicants are particularly encouraged to seek
advice on their eligibility to apply for and receive MDCP funding.
Applicants with questions are advised to continue working on their
proposals. Absolutely no extensions of the deadline for submitting
complete applications will be granted.
Applications: Complete applications must be received no later than
5:00 p.m.
[[Page 23600]]
Eastern Daylight Time, June 21, 1999. Late or incomplete applications
will not be accepted. They will be returned to the sender or destroyed
if the applicant prefers.
Please send complete applications (original with at least two (2)
copies) to the Office of Planning, Coordination and Resource Management
(OPCRM), Trade Development, Room 3221, 14th & Constitution Avenue,
N.W., Washington, D.C. 20230.
FOR FURTHER INFORMATION CONTACT: Mr. Brad Hess, Manager, Market
Development Cooperator Program, Trade Development, ITA, Room 3221,
Washington, D.C. 20230, (202) 482-3197.
Web Site: Additional information is available at the following
Internet address: http://www.ita.doc.gov/industry/opcrm/mdcp.html.
Application Kit: Application kits are now available. The
application kit contains all forms necessary to participate in the MDCP
application process.
Application kits are available at the web site identified above. To
obtain an application kit via first class mail, send a written request
with a self-addressed mailing label to Mr. Brad Hess, Manager, Market
Development Cooperator Program, Trade Development/OPCRM, Room 3221,
U.S. Department of Commerce, Washington, D.C. 20230. Application kits
can also be picked up in Room 3209, U.S. Department of Commerce, 14th
and Constitution Avenue, N.W., Washington, D.C.
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 as set out in authorizing
legislation is to develop, maintain, and expand foreign markets for non
agricultural 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 non-agricultural 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 may propose a
new project or expansion of an existing project (but see Evaluation
Criteria (4) below).
ITA encourages applicants to propose activities that would be most
appropriate to the market development needs of their U.S. industry or
industries. Examples of activities which applicants might include in an
application are set forth below. 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 representative 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) Conducting U.S. product demonstrations abroad;
(5) Conducting export seminars in the United States or market
penetration seminars in the market(s) to be developed;
(6) Establishing technical trade servicing that helps overseas
buyers choose the right U.S. goods or services and to use the goods or
services efficiently;
(7) Conducting joint promotions of U.S. goods or services with
foreign partners;
(8) Training foreign nationals to perform after-sales service or to
act as distributors for U.S. goods or services;
(9) Improving market access for U.S. goods or services by working
with organizations in the foreign marketplace responsible for setting
standards and product testing;
(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 funds expected to be available for
this program are $2.0 million for fiscal year 1999. ITA expects to
conclude a minimum of five (5) cooperative agreements with eligible
entities for this competition. 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 at least
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 15 CFR Part 14, Sec. 14.2(g) 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, and any
additional match proposed, can be made up of additional new cash
outlays or in-kind contributions.
Applicants may propose projects for which the matching funding will
exceed two applicant dollars to each federal dollar. Applicants should
note that 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.
[[Page 23601]]
In the proposed budget, all in-kind contributions to be used in
meeting the 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 15 CFR Part 14.23(a), and 15 CFR Part
24.24 (a) and (b) are met.
No indirect costs will be paid with ITA funding under this program,
but they may be included in the matching share. ITA 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.
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 any 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 the award winner 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'' establishing
direction for the project, recommending changes in the direction of the
project, when necessary, and determining mode of project operations and
other management processes, coupled with close monitoring or
operational involvement during the 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 the cost of each activity. In
addition to participating on project teams, ITA staff may work directly
on individual MDCP project activities.
Eligibility Criteria: U.S. trade associations, non-profit 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 ``non-profit industry
organization'' is an organization that is classified as a non-profit
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; or
(8) A port authority.
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,
organization's purpose, and activities, and non-profit status under
Internal Revenue Code provisions. All requests for advice regarding
eligibility should be made as soon as possible, allowing enough time
before the application deadline for a response to be useful. Applicants
are advised to continue working on proposals while waiting for a
response. Absolutely no extensions of the deadline for submitting
complete 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.
ITA 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 ITA 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. ITA priorities are set forth under the ``Project Funding
Priorities'' heading below. Additional information delineating U.S.
commercial policy may be obtained from the 1998 Trade Promotion
Coordinating Committee's (TPCC's) National Export Strategy. Copies of
the National Export Strategy
[[Page 23602]]
are available from TPCC Secretariat by calling (202) 482-5455.
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.
Indirect Costs: ITA funds cannot 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), are required as part of
the application. See the ``FURTHER INFORMATION'' section for
instructions on getting an application kit.
Submission of Applications: Applicants must submit a signed
original and two (2) copies of the application and supporting
materials. In addition to the required original plus two copies,
applicants are encouraged to submit four (4) additional copies. ITA
recognizes that submitting four additional copies may be a financial
burden for some applicants. Accordingly, the four additional copies are
not required, and applicants who submit only the required original plus
two copies will not be scored lower for doing so.
Retention of Applications: For each award winner, the Department of
Commerce will retain the signed original of the application for seven
years. Copies of winning applications will be distributed to project
team members for their use in managing winning projects.
For each eligible application which does not win an award, the
Department of Commerce will retain the signed original of the
application for seven years and will return copies to the applicant.
The return of copies of applications normally occurs immediately
following a debriefing for the unsuccessful applicant. For unsuccessful
applicants who do not request a debriefing, ITA returns copies normally
within six months of the announcement of the winners of the awards.
If an application is found to be ineligible, ITA will retain the
signed original application for seven years and will return all copies
of the ineligible application within ten days of the final finding of
ineligibility.
Project Funding Priorities: ITA is especially interested in
receiving proposals that focus on the ITA priorities listed below. A
proposal does not need to encompass all of these priorities to be
competitive:
(1) 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;
(2) Helping SMEs overcome obstacles to using the Internet and e-
commerce effectively;
(3) Providing technical assistance to developing economies to build
commercial infrastructure such as regulatory practices;
(4) Building private-sector trade finance knowledge and expertise;
(5) Developing non-traditional approaches to creating demand for
the products/services developed from new U.S. technologies;
(6) Improving communication with and outreach to old and new
private-sector international trade constituencies and initiating or
enhancing public/private export partnerships;
(7) Monitoring foreign compliance with our trade agreements such as
sector-specific agreements, the North American Free Trade Agreement,
and the World Trade Organization agreements;
(8) 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;
Applications may be targeted for any geographic market in the world
and/or any industry sector.
Background Research: Developing a project plan requires solid
background research. Applications should reflect the findings of the
applicant's 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: ITA 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-term 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
Chief Executive Officer (CEO) of a company in the active pursuit of
export sales. Examples of export initiatives include, but are not
limited to, the following:
(a) Participating in an overseas trade promotion event;
(b) Hiring an export manager;
(c) Establishing an export department;
(d) Exploring a new market through an overseas trip by the CEO;
(e) Developing an export marketing/business plan;
(f) Translating product literature into a foreign language;
(g) Making product modifications to comply with foreign market
requirements;
(h) Commissioning an in-depth market research study;
(i) Advertising in a foreign business publication;
(j) Undertaking an overseas direct-mail campaign to create product
awareness;
(k) Signing an agent/distributor;
(l) Getting introduced to a potential foreign buyer;
(m) Signing an export contract/filling an export order; or
[[Page 23603]]
(n) Co-locating 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. Applicants
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 the proposal
initiates or enhances partnership with ITA.
(4) Creativity, innovation, and realism displayed by the work plan
as well as 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. In addition to promoting current
sales of existing products, market development promotes future sales
and future products.
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. A current or past
MDCP recipient may propose an expansion of an existing or past MDCP
project. In order to earn a high score on criterion (4), the expansion
should be the majority of the total project for the proposal. 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. The
five criteria together constitute the application score. At 20 points
per criterion, the total possible score is 100.
Evaluation and Selection Procedures: OPCRM staff will review each
application for completeness as soon as practicable after the
application is received. If the application deadline has not passed,
OPCRM staff will endeavor to notify the applicant of any deficiency in
the application that it has found. The applicant may submit additional
information to correct the deficiency. ITA, however, must receive any
additional information before the deadline for applications.
Responsibility for submitting a complete application in a timely manner
remains with the applicant.
Prior to selection, each complete application receives a thorough
evaluation. The steps of the evaluation and selection process are set
forth below.
(1) OPCRM staff, in consultation with the Department of Commerce's
Office of General Counsel, reviews all applications to determine the
eligibility of each applicant. If an applicant's eligibility is in
question, the applicant is contacted to supply additional information
or clarification.
(2) When the eligibility review has been completed, the OPCRM
Director invites comments on applications from relevant offices within
ITA (e.g,. Trade Development (TD), Market Access & Compliance (MAC),
and US&FCS). This review allows ITA experts in the industry sector or
geographical region to assess the claims made in the applications. The
ITA staff comments also provide insights into both the potential
benefits and the potential difficulties associated with the
applications.
(3) At least three representatives of OPCRM review and comment on
all applications. The comments of these OPCRM reviewers will include a
score for each application based on the evaluation criteria identified
above. The MDCP Manager prepares a summary of OPCRM staff comments and
organizes all comments by ITA staff and applications for the Selection
Panel. The scores, the summary, and the staff comments afford the
Selection Panel the insights and breadth of experience of ITA
professionals. However, they have no official weight, and the Selection
Panel is free to consider or disregard them as it sees fit.
(4) The MDCP Manager forwards all of the applications, along with
all related materials, to a Selection Panel of senior ITA managers.
This panel is chaired by the OPCRM Director and typically includes
three other members, one each from ITA's TD, MAC, and US&FCS bureaus.
Panel members are Office Directors or higher.
(5) Each Selection Panel member reviews each eligible application
and assigns a score for each of the five criteria stated above. The
individual criteria scores are averaged to determine the total score
for each application.
(6) Based on the scores assigned by Selection Panel members and
deliberations by the Selection Panel, the Selection Panel forwards the
applications with the ten highest total scores to the Assistant
Secretary for Trade Development and recommends which of the ten
proposals should receive funding. The Selection Panel's recommendation
will not deviate from the rank order. This means that the Selection
Panel cannot recommend funding for the application ranked 7th without
recommending funding for applicants ranked 1 through 6. The Selection
Panel recommendation includes the Panel's written assessment of the
strengths and weaknesses of the top ten applications.
(7) From the top ten applications recommended by the Selection
Panel, the Assistant Secretary for Trade Development selects those
applications which will receive funding. In addition to the evaluation
criteria stated above, the Assistant Secretary for Trade Development
may consider the following in making his decision:
(a) The evaluations of the individual reviewers of the Selection
Panel;
(b) The degree to which applications satisfy ITA priorities as
established under the Project Funding Priorities listed above;
(c) The geographic distribution of the proposed awards;
(d) The diversity of industry sectors and overseas markets covered
by the proposed awards;
(e) The diversity of project activities represented by the proposed
awards;
(f) Avoidance of redundancy and conflicts with the initiatives of
other federal agencies; and
(g) The availability of funds.
Announcement of Award Decisions: Award winners will be notified by
letter. Once award winners formally
[[Page 23604]]
accept their awards, the Department of Commerce will issue a press
release and list the award winners on the MDCP Web Site.
Within ten days of the announcement of the issuance of the press
release, unsuccessful applicants will be notified in writing and
invited to receive a debriefing from MDCP officers.
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.
ITA reports 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:
(1) Outcome Measures:
a. Dollar value of exports resulting from outputs.
b. Number of new-to-export firms participating in activities.
c. Number of new-to-market firms participating in activities.
d. Degree of customer satisfaction (value of outputs determined by
perception of the customer based on their expectation of the output
versus the plan, an agreed-upon specification, or other criteria).
(2) Output Measures:
a. Number of counseling sessions.
b. Number of clients counseled.
c. Number of reports (publications) prepared.
d. Number of copies of reports (publications) distributed.
e. Number of trade events.
f. Number of firms participating in trade events.
Applicants for this year's MDCP competition should be mindful of
these performance measures and should use them wherever possible when
estimating projected results in their proposals. Award recipients will
use these measures in their quarterly reports and in their end-of-year
assessments of project accomplishments. Each applicant should describe
its recording and reporting system in its proposals. In order to
demonstrate the success of their projects, applicants are encouraged to
develop and utilize additional performance measures. Each recipient of
an award should be prepared to record and report the results achieved
from project activities.
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) Pre-Award 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 pre-award 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;
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 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. Non-Procurement 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 sub-grants, 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 sub-recipients
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.''
[[Page 23605]]
(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 49 U.S.C. 40118.
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: April 28, 1999.
Jerome S. Morse,
Director, Resource Management and Planning Staff, Office of Planning,
Coordination and Resource Management Trade Development, International
Trade Administration, Department of Commerce.
[FR Doc. 99-11018 Filed 4-30-99; 8:45 am]
BILLING CODE 3510-DR-P