[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Notices]
[Pages 10353-10357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4584]



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DEPARTMENT OF COMMERCE
[Docket No. 950207043-5043-0]
RIN 0625-ZA03


Market Development Cooperator Program

AGENCY: International Trade Administration (ITA), Commerce.

ACTION: Notice.

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SUMMARY: The mission of ITA is to promote U.S. exports and to 
strengthen the international trade position of the United States. 
Building partnerships with the private sector enhances ITA's ability to 
fulfill its mission. To encourage such partnerships, ITA has created 
the Market Development Cooperator Program (MDCP) to develop, maintain 
and expand markets for nonagricultural goods and services produced in 
the United States. The MDCP aims to:
    <box> Challenge the private sector to think strategically about 
foreign markets;
    <box> Be the catalyst that spurs private sector innovation and 
investment in export marketing; and
    <box> Increase the number of American companies taking decisive 
export actions.
    The advantage of a joint effort is that it permits the 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 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 are described below. No one of these activities 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 
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 March 27, 1995. Attendance at this public 
meeting is not required of potential applicants. The purpose of the 
meeting is to provide general information regarding the MDCP 
procedures, selection process, and proposal preparation to potential 
applicants unfamiliar with the MDCP. No discussion of specific 
proposals will occur at this meeting.

DATES: The public meeting will be held March 27, 1995. Completed 
applications must be received no later than April 21, 1995. Competitive 
application kits will be available from the Department of Commerce 
starting February 24, 1995.

ADDRESSES: The public meeting will be held at the Herbert Clark Hoover 
Building, U.S. Department of Commerce, 14th and Constitution Avenue 
NW., Washington, DC. Contact the information contact for room location.
    To obtain an application kit, please send a written request with a 
self- [[Page 10354]] addressed mailing label to Mr. Greg O'Connor, 
Manager, Market Development Cooperator Program, Trade Development/
OPCRM, Room 3211, U.S. Department of Commerce, Washington, DC 20230. 
Application kits may also be picked up in Room 3211, U.S. Department of 
Commerce, 14th and Constitution Avenue NW., Washington, DC 20230. The 
application kit contains all forms necessary to participate in the 
MDCP.
    Please send completed applications to the Office of Planning, 
Coordination and Resource Management, Trade Development, Room 3211, 
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 3211, 
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. The Department of Commerce will 
consider such projects as entirely new initiatives.
    The Department of Commerce encourages applicants to propose 
activities that would be most appropriate to the market development 
needs of their 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):
    (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;
    (2) Detailing a private sector individual to a US&FCS post in 
accordance with 15 U.S.C. 4723(c);
    (3) Entering into a contract with a bona fide market research 
company to conduct detailed, product-specific market research;
    (4) Assigning industry specialists to work with Department of 
Commerce/U.S. Executive Director Procurement Liaison Offices at the 
Multilateral Development Banks to seek out and develop procurement 
opportunities;
    (5) Underwriting the cost of overseas market research or overseas 
trade exhibitions and trade missions to promote U.S. exports, or 
covering the expenses of reverse trade missions and/or foreign buyer 
group travel to U.S. domestic trade shows;
    (6) Overseas product demonstrations;
    (7) Export seminars in the United States or market penetration 
seminars in the market(s) to be developed;
    (8) Technical trade servicing that helps overseas buyers to choose 
the right U.S. good(s) or service(s) and to use the good or service 
efficiently;
    (9) Joint promotions with foreign customers;
    (10) Training of foreign nationals to perform after-sales service 
or to act as distributors;
    (11) Working with organizations in the foreign marketplace 
responsible for setting standards and for product testing to improve 
market access;
    (12) Publishing an export resource guide or an export product 
directory for the industry or industries in question if no comparable 
one exists; and
    (13) Establishing an electronic business information system to 
identify trade leads and facilitate matches with foreign partners.

Funding Availability

    The total amount of funds available for this program is $2.5 
million for fiscal year (FY) 95. The Department expects to conclude a 
minimum of four (4) cooperative agreements with eligible entities for 
this program. Each cooperative agreement will not exceed a total of 
$500,000, regardless of the duration of the award.

Special Program Set-Aside to Encourage Diversity

    On July 20, 1994, Secretary of Commerce Ronald H. Brown issued his 
policy on diversity. As part of this policy, Secretary Brown directed 
that ``diversity * * * be taken into consideration in every aspect of 
the business of Commerce--in training, seminars, grant work, 
procurement, technology and trade programs, travel and trade missions, 
regulatory activities, business liaison and in every program area of 
the Department.''
    In the spirit of Secretary Brown's pronouncement, ITA will set 
aside $250,000 of the funds available for the MDCP to make awards of at 
least $50,000, but less than $100,000. The opportunity to compete for 
small awards hopefully will encourage organizations to apply that 
previously felt themselves either at a competitive disadvantage or 
unable to match a larger MDCP grant. Many organizations that represent 
a preponderance of companies from traditionally disadvantaged or under-
served groups such as small business, women-owned business, African 
Americans, Asian Americans, Hispanic Americans, Native Americans, Gay 
and Lesbian Americans or Physically Challenged Americans may fall into 
this category. At least one, but not more than five awards, will be 
made from this program set-aside. Funds not awarded from the program 
set-aside will be channeled back into the regular MDCP competition.
    Eligible organizations that choose to compete for funds in the 
program set-aside will compete only against other organizations 
selecting the set-aside option. Organizations seeking smaller awards 
need not meet diversity criteria to compete for set-aside funds. 
Conversely, organizations seeking smaller awards that meet diversity 
criteria can choose to compete in the regular MDCP award competition 
instead of for set-aside funds. Program requirements and evaluation 
criteria will be the same for applications considered under the set-
aside option as they are for the regular MDCP award competition.

Matching Requirements

    Applicants will be expected to supply two thirds (2/3) of total 
project costs, with the Federal portion to be one third 
[[Page 10355]] (1/3). 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; and 48 CFR Part 31. Applicants will 
support all indirect costs.
    A minimum of one half (\1/2\) of each applicant's support must be 
in the form of new cash outlays expressly for the project. The balance 
of the applicant's support may consist of in-kind contributions (goods 
and services). 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 OMB Circular A-110, 
section 23 (a), and 15 CFR Part 24.24 (a) and (b) are met.
    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.

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.

Eligibility Criteria

    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 ``nonprofit industry 
organization'' is defined as any nonprofit organization (such as some 
chambers of commerce and world trade centers) made up of firms in an 
industry, or which is established or funded by and which operates on 
behalf of an industry. For the purpose of this program, a ``trade 
association'' is defined as 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.
    Eligible entities may join together to submit an application as a 
joint venture and to share costs. 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 a 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 Government agencies to implement project activities 
successfully. Each applicant must provide a description of the 
membership 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.

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

    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. Department of Commerce funds can not be used to pay indirect 
costs.

Application Forms and Kit

    Standard Forms 424 (Rev. 4-92), 424A (Rev. 4-92), and 424B (Rev. 4-
92) and other Department of Commerce forms, which are required as part 
of the application, are available from the contact person indicated 
above. Applicants must submit a signed original and three (3) copies of 
the application and supporting materials.

Project Funding Priorities

    Applications may be targeted for any market in the world. In ITA's 
view, projects in the following sectors and countries present 
opportunities to develop, maintain and expand overseas markets and 
enhance jobs through U.S. exports:
    (a) Sectors: Environmental technologies, transportation 
technologies, energy technologies, information technologies, health 
technologies, and financial services; and
    (b) Geographic Markets: Argentina, Brazil, China, Hong Kong, India, 
Indonesia, Korea (South), Mexico, Poland, Russia and the Newly 
Independent States of the former Soviet Union, South Africa, Taiwan, 
and Turkey.
    Developing a project plan requires solid background research. 
Applicants should study, and applications should reflect such study of, 
the following:
    1. The market potential of the 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 good(s) or service(s).
    Applicants should present in their applications 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 
[[Page 10356]] 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) Projected:
    (a) Increase in U.S. exports generated (per dollar of cooperator 
program funds spent) by the proposed expenditure of funds; and
    (b) Increase in the U.S. industry's foreign market share. Applicant 
should provide quantifiable estimates of projected project results, 
along with detailed explanations, for (1)a and (1)b above.
    (2) Projected:
    (a) Increase in the number of U.S. companies operating in the 
market(s) selected (multiplier effect); and/or
    (b) Increase in the number of companies currently in the market 
that are undertaking new export initiatives. Applicant should provide 
quantifiable estimates of projected project results for either (2)a or 
(2)b above, or for both where proposed project increases are 
anticipated.
    (3) Export potential of the good(s) and/or service(s) to be 
promoted.
    (4) Size of the cash portion of the applicant's funding for the 
proposed project and reasonableness of the itemized budget for project 
activities.
    (5) The institutional capacity of the applicant to carry out the 
work plan and the degree to which a proposal initiates or enhances 
partnership with the Department of Commerce.
    (6) Creativity and innovation displayed by the work plan while at 
the same time being realistic.
    (7) Willingness and ability of the applicant to back up promotional 
activities with aggressive marketing and after-sales service and 
probability that the project can be continued on a self-sustained basis 
after the completion of the award.
    (8) Intent and capability of the applicant to enlist the 
participation of small and medium size American companies in consortia 
and activities that are to be part of the proposed project.
    Evaluation criteria 1-4 are of utmost importance in the selection 
process and will be worth 70 out of a possible 100 points as follows:

Criterion #1--maximum 20 points
Criterion #2--maximum 20 points
Criterion #3--maximum 15 points
Criterion #4--maximum 15 points

    The remaining evaluation criteria will be valued as follows:

Criterion #5--maximum 10 points
Criterion #6--maximum 10 points
Criterion #7--maximum 5 points
Criterion #8--maximum 5 points

Selection Procedures

    Each application will receive an independent, objective review by a 
panel qualified to evaluate the applications submitted under the 
program. The Review Panel, consisting of at least three people, will 
review all applications based on the criteria stated above. The Review 
Panel will identify and rank the top ten proposals in the regular MDCP 
competition and the top seven proposals submitted under the set-aside 
option 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 
selection regarding the funding of applications from the group of ten 
in the regular competition and the group of seven under the set-aside 
option identified by the 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 Senior 
Officer Panel;
    2. The degree to which applications satisfy the MDCP's goals and 
objectives;
    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. The promotion of equitable access to MDCP funding for 
traditionally disadvantaged or under-served groups;
    7. Avoidance of redundancy and conflicts with the initiatives of 
other Federal agencies; and
    8. 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). Section 4 of the GPRA 
requires each agency to submit to the Office of Management and Budget 
(OMB), beginning with FY 99, a strategic plan for program activities. 
Among other things, each plan is to include ``performance indicators to 
be used in measuring or assessing the relevant outputs, service levels 
and outcomes of each program activity.''
    OMB has decided not to wait to begin development of the new 
performance indicators called for in GPRA. As part of the process of 
preparing the President's FY 1996 budget, OMB has asked agencies to 
submit prospective GPRA-type performance indicators they intend to use 
in future years.
    Accordingly, current MDCP participants have been asked to identify 
new GPRA-type performance indicators as part of their FY 1995 operating 
plans. These indicators will include not only program inputs and 
outputs, but also measures that may be applied to determine outcomes 
(what happens as a direct result of an output being created) or final 
impacts (the effect of an outcome).
    Applicants for this year's MDCP competition should describe in 
their proposals performance indicators of the type envisioned by GPRA 
that they intend to use to measure the results of their MDCP projects. 
Applicants should consult the MDCP application kit for more 
information, key terms and definitions used in developing performance 
indicators under GPRA.

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:
    i. The delinquent account is paid in full,
    ii. A negotiated repayment schedule is established and at least one 
payment is received, or [[Page 10357]] 
    iii. 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:
    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, 
``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
    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.
    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. Requirement to Buy American-Made Equipment or Products--
Applicants are hereby notified that they will be encouraged, to the 
greatest extent practicable, to purchase American-made equipment and 
products with funding provided under this program in accordance with 
Congressional intent as set forth in the resolution contained in Public 
Law 103-317, Sections 607 (a) and (b). Adequate justifications will be 
required for any proposed purchases of equipment or products that are 
not American-made.

Classification

    This notice has been determined to be not significant for purposes 
of Executive Order 12866. The standard forms reference in this notice 
are cleared under OMB Control No. 0348-0043, 0348-0044, 0348-0040, and 
0348-0046 pursuant to the Paperwork Reduction Act.

    Dated: February 21, 1995.
Jerome S. Morse,
Director, Resource Management and Planning Staff, Trade Development.
[FR Doc. 95-4584 Filed 2-23-95; 8:45 am]
BILLING CODE 3510-DR-P