[Federal Register Volume 60, Number 61 (Thursday, March 30, 1995)]
[Notices]
[Pages 16454-16457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7800]



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DEPARTMENT OF COMMERCE
Technology Administration
[Docket No. 950313072-5072-01]
RIN No.: 0693-AB37


Financial Assistance for Research and Development, U.S.-Israeli 
Science and Technology Program

agency: Tecnology Administration, Commerce.

action: Notice.

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summary: The Under Secretary for Technology of the United States 
Department of Commerce invites proposals for financial assistance under 
the U.S.-Israeli Science and Technology Program (the ``Program''). The 
Program will assist U.S.-based industrial firms that have entered into 
U.S.-Israeli joint ventures (partnerships of United States and Israeli 
companies) to carry our research and development on long-term, medium- 
to high-risk technologies. This Program is separate from the existing 
Bi-national Industrial R&D Foundation (BIRD), which continues to offer 
support for commercial joint ventures. Inquiries about BIRD assistance 
should be addressed directly to the BIRD Foundation, Tel Aviv, Israel.
    Such projects should focus on research, development and 
commercialization of technologies that are not appropriately funded by 
other U.S. or Israeli government-funded research and development 
efforts. This assistance will take place through the use of cooperative 
agreements with U.S.-based industrial firms pursuant to this Notice.
    Funding will be made directly to the U.S. firms that are partners 
in the U.S.-Israeli joint ventures. Funding from the U.S. Department of 
commerce for the Program is limited to the U.S. partner(s) to a U.S.-
Israeli joint venture, with funding for the Israeli partner(s) to be 
provided by the Israeli Government. On December 21, 1994, the 
Technology Administration published a notice in the Federal Register to 
announce this Program (FR 65756), including the availability of funds 
for a first round of awards. Funding recipients for this first round 
were announced on February 6, 1995, referenced in more detail below.

dates: Applications must be received on or before Close of Business May 
19, 1995. It is expected that the review and selection process will 
take approximately thirty (30) days.

addresses: Applications must be submitted to: U.S.-Israel Science and 
Technology Commission, Room 7068, U.S. Department of Commerce, 
Washington, DC 20230.

for further information contact: Lee Bailey, Executive Director, U.S./
Israel Science and Technology Commission, telephone number (202) 482-
6351.

supplementary information: In March, 1993, President Clinton and 
Israeli Prime Minister Yitzhak Rabin announced their intention to 
create the U.S.-Israeli Science and Technology Commission (the 
``Commission'') to promote U.S.-Israeli cooperative science and 
technology activities that could benefit the two nations' civilian high 
technology commercial sectors, and create jobs and economic growth. The 
Commission was established by an agreement of January 18, 1994 between 
the U.S. and Israeli governments, and plans to implement certain of its 
objectives through a U.S. non-profit corporation (hereinafter 
``USNPC'').
    The Commerce Department expects that the USNPC itself will award 
future financial assistance agreements under the Program, and may also 
be in a position to award the agreements contemplated by this notice. 
Should this occur, applicants that have submitted proposals that remain 
under review will be asked to transfer their proposals to the USNPC, 
and will receive further information about the requirements that apply 
to the USNPC's financial assistance agreements. Applicants should take 
note that the USNPC's requirements will differ in certain respects from 
those announced in this notice, including modification with respect to 
accounting, reporting, and intellectual property requirements, and the 
adoption of award recovery policies that would apply in cases where the 
USNPC-sponsored projects result in commercially successful products. 
Applicants that enter into agreements with the Commerce Department may 
also be asked to consent to the Department assigning their agreements 
to the USNPC at a later point, and to negotiate any modifications to 
the agreement that may be necessary to satisfy the USNPC's financial 
assistance requirements. For additional information, applicants may 
contact the Information Contact Person listed above. Funding is 
intended for projects (1) That will have significant economic benefits 
for both the United States and Israel and (2) that in general are in 
the areas of the environment, energy, health, biotechnology, 
information processing/telecommunications or agriculture, or in the 
commercialization of defense technologies.
    This program announcement has been determined to be not significant 
for purposes of Executive Order 12866.

Authority

    The Under Secretary for Technology, pursuant to the authority 
delegated to her by section 3706 of Title 15 of the U.S. Code, as well 
as sections 2.02 and 4.03(d) of Department Organization Order 10-17, 
dated July 14, 1992, is implementing this activity.

Program Description

    The Program will assist eligible U.S.-based industrial firms that 
have entered into U.S.-Israeli joint ventures (partnerships of United 
States-based and Israeli-based companies) to carry out research and 
development of long-term, medium- to high-risk technologies that offer 
significant economic benefits, that are focused on commercialization 
and that are not appropriately funded by other U.S. and Israeli 
government-funded research and development efforts. This assistance 
will take place through the use of cooperative agreements. U.S. 
Commerce Department assistance is offered to promote the economy of the 
U.S. via the creation of new technologies and the commercialization of 
new and existing technologies.

Funding Availability

    The implementation and conduct of this Program is contingent upon 
the availability of all funding anticipated for its operation. The 
Commerce Department reserves the right to discontinue this Program in 
the event all funding is not made available or is otherwise not 
secured. It is anticipated that funds will be available subject to 
reprogramming notifications to Congress.
    The U.S. Government and the Government of Israel are each making 
available up to $5 million in the current fiscal year for this Program 
for qualified projects. The governments of both nations intend to fund 
this Program at [[Page 16455]] the same level during 1996 and 1997. Two 
awards and one feasibility study totalling $5,721,000, to be paid over 
four fiscal years, were announced on February 6, 1995. Within the 
limits of available funding, there is no predetermined minimum or 
maximum award. The funds may be spent toward research and development 
activities consistent with the goals set forth in this Notice.
    Matching Funding Requirements--Federal financial assistance must be 
accompanied by at least an equal matching investment by the U.S.-based 
firm(s) party to each U.S.-Israeli joint venture. In the event there 
are multiple U.S.-based firms in a given U.S.-Israeli venture, the 
aggregate investment of the U.S. partners must at least equally match 
the Federal investment in that project.

Eligibility Requirements

    The Program will accept proposals only from U.S.-Israeli joint 
ventures led by one U.S.-based industrial partner and one Israeli-based 
industrial partner. In general, awards will not be made to a joint 
venture composed of affiliated U.S.- and Israeli-based partners. 
Concerns are considered to be affiliates of each other when either 
directly or indirectly (a) one concern controls or has the power to 
control the other, or (b) a third party or parties controls or has the 
power to control both, or (c) an identity of interest between or among 
parties exists such that affiliation may be found.
    Federal financial assistance will be given only to U.S.-based 
industrial partner or to a consortia led by U.S.-based industrial 
partners. A U.S.-based industrial partner, or a consortia led by U.S.-
based industrial partners, shall be eligible to receive assistance 
under this Program only if the U.S.-based industrial partner, or each 
member of the consortia, is incorporated in the United States and has 
its principal place of business in the United States.

Project Eligibility

    Proposed projects must meet the following criteria:
    <bullet> Must be in one of the following areas: The environment, 
energy, health, biotechnology, information processing/
telecommunications, the commercialization of defense technologies, or 
agriculture. Further, the project must be for research and development 
activities in long term, medium- to high risk technologies, and which 
show a plan to commercialization within 48 months.
    <bullet> Must include technical innovation, significant commercial 
potential, and economic benefit to both countries.

Award Period

    The duration of Federal financial assistance to a U.S.-based 
industrial firm will not exceed four years.

Indirect Costs

    Indirect costs will not be funded under this Program.

Application Forms and Kit

    Applicants must submit one (1) signed original plus two copies of 
each application. Standard Forms 424 and 424A, Application for Federal 
Assistance (which have been approved under the Paperwork Reduction Act 
by OMB Control No. 0348-0043 and 0348-0044, respectively) shall be used 
in applying for financial assistance, plus such additional information 
as is needed to permit the evaluation of the applications on the 
criteria set forth below. Forms are available by request from the 
Information Contact Person listed above. The additional information 
shall include a business plan containing the following:
    <bullet> Executive summary (maximum 3 pages);
    <bullet> Description of the project and technology involved (See 
Evaluation Criteria No. 1);
    <bullet> Commercialization objectives including economic benefits 
to U.S. & Israel and other regions (See Evaluation Criteria No. 2);
    <bullet> Commercialization plan including project objectives target 
markets and strategy, technology transfer and intellectual property 
requirements and additional capital requirements (See Evaluation 
Criteria No. 3)
    <bullet> Description of proposed project participant qualifications 
and time schedule (See Evaluation Criteria No. 4);
    <bullet> Project management, organizational structure, equipment, 
facilities and support (See Evaluation Criteria No. 5); and,
    <bullet> Proposed budget.
    Proposals shall not exceed 40 pages (50 pages for joint proposals) 
exclusive of the Standard Forms. Proposals must be on 8\1/2\ by 11'' 
paper (copies double sided) no fold out inserts and no smaller than 12 
point type. Additional information beyond the page limit will not be 
considered. In addition, each proposer is asked to submit a brief one 
paragraph project summary containing non-proprietary information which 
may be utilized by the Commission without regard to the Confidentiality 
Provisions applicable to this notice.
    Evaluation Criteria--Factors within each criteria (labelled i, ii, 
iii, etc.) will be weighed equally. No project will be funded in the 
absence of a finding of technical and commercial merit by the 
reviewers. The evaluation criteria to be used in selecting any proposal 
for funding under this program, and their respective weights, are:
    (1) Scientific and Technical Merit of the Proposal (30 percent).
    (i) Quality and innovativeness of the proposed technical program 
(i.e. uniqueness with respect to current industry practice).
    (ii) Technical feasibility of the project (i.e., are the technical 
objectives realistic?).
    (iii) Coherency of technical plan and clarity of vision of 
technical objectives.
    (iv) Breadth of impact of accomplishment of technical objectives.
    (2) Commercial Benefits of the Proposal (20 percent).
    (i) Commercial potential of the technology in the proposed venture.
    (ii) Potential to improve U.S. and Israeli economic growth and the 
productivity of a broad spectrum of industrial sectors or businesses 
within an economically important single sector.
    (iii) Timeliness of proposal (i.e. the project results will not 
occur too late to be competitively useful in the marketplace).
    (3) Commercialization Plans for the Project (20 percent).
    (i) Evidence that the participants will pursue commercial 
application of the technology including production and distribution 
plans.
    (ii) Project plan adequately addresses technology transfer and 
ownership requirements to assure prompt and widespread use and 
protection of results by participants and, as appropriate, others;
    (4) Qualifications of the Proposing Organization(s) (15 percent).
    (i) Quality and appropriateness of proposer's commercial and 
managerial staffing, facilities, equipment, and other resources to 
accomplish the proposed program objectives.
    (ii) Quality and appropriateness of the technical staff to carry 
out the proposed work program and to identify and overcome technical 
barriers to meeting project objectives.
    (iii) For proposals involving laboratory prototype development, 
evidence of availability of adequate design and manufacturing tools 
appropriate to the prototype.
    (5) Proposer's Level of Commitment and Organizational Structure (15 
percent).
    (i) Appropriateness of the structure of the proposed organization 
in terms of composition of participants (i.e. vertical and/or 
horizontal integration) and existing relationships among the 
parties. [[Page 16456]] 
    (ii) Level of commitment of proposers as demonstrated by 
contribution of personnel, equipment, facilities, and matching funds.
    (iii) Appropriate participation by U.S. small businesses.
    (iv) Evidence of a strong commitment by applicants to complete and, 
if appropriate, provide support for continuation of the program beyond 
the period of funding.

Selection Procedures

    The selection process for awards is a multi-step process based on 
the criteria listed above.
    <bullet> In the first step, called the ``preliminary screening,'' 
representatives from both governments will review the applications and 
will eliminate those that do not meet the threshold Eligibility 
Requirements listed above. Further disqualifications will be made if 
the application is deemed to have serious deficiencies in the technical 
and/or business plan, if the application does not fall within the 
overall scope of the Program, or if the application is more 
appropriately funded by other U.S. or Israeli government-funded 
research and development efforts.
    <bullet> In the second step, referred to as the ``technical and 
business review,'' applications are evaluated under the preceding 
Evaluation Criteria. Applications are rated as ``not recommended'' or 
``recommended.'' Applications must have high scientific and technical 
merit to be recommended. Only those applications rated as 
``recommended'' are considered further. Such applications are referred 
to as ``semifinalists.'' If a majority of either country's 
representatives rate an application as ``not recommended,'' that 
application will be disqualified.
    <bullet> In the third step, referred to as ``selection of 
finalists,'' representatives from both governments (``the Joint 
Panel'') will prepare a final scoring and ranking of recommended 
semifinalist applications, based upon evaluative criteria. A list of 
ranked finalists is then submitted to each respective nation's 
Selection Official.
    <bullet> In the final step, referred to as the ``selection of 
awardees,'' the Selection Officials select funding recipients from 
among the finalists, based upon the rank order of the applications on 
the basis of all Evaluation Criteria (see above), assuring appropriate 
distribution of funds among technologies, activities and recipients, 
the availability of funds, and upon a determination as to the 
responsibility of the applicant. The decision of the Selection 
Officials is final. Applicants not chosen will be notified.
    <bullet> In the event that a U.S.-Israeli joint venture is ranked 
as a finalist, but is determined to contain weaknesses in its structure 
or cohesiveness that may substantially lessen the likelihood of the 
proposed project's success, the applicant may be informed of the 
deficiencies and negotiations may be entered into with the applicant in 
an effort to remedy the deficiencies. If appropriate, funding up to 10% 
of the amount originally requested by the applicant, but no more than 
$100,000, may be awarded by the Program to the applicant to conduct a 
feasibility study. If the Program determines within six months that the 
organizational deficiencies have been corrected, the Program may award 
over the life of the project the remaining funds requested by that 
applicant to that applicant.
    <bullet> The Program reserves the right to negotiate with 
applicants selected to receive awards over the cost and scope of the 
proposed project, e.g., to add or delete a task in order to improve the 
probability of success.

Funding Logistics

    Funding will be made directly to the U.S.-based firm(s) that is/are 
party to the U.S.-Israeli joint venture.

Rights to Inventions

    The provisions of the Bayh-Dole Act (35 U.S.C. 201, et seq., 
concerning patent rights in inventions made with Federal assistance) 
and the Government Patent Policy set forth in President Reagan's 
memorandum to the heads of Executive Departments and Agencies, dated 
February 18, 1983, shall apply to all Federally-funded research and 
development activities performed under this Program.

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 U.S. Government. Notwithstanding any verbal or 
written assurance that may have been 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 under the Program, there is 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 awarding entities. An annual review of each 
award will be conducted to determine the worthiness of continued or 
additional future funding.
    (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
    iii. 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:
    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. Funding recipients (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 [[Page 16457]] 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 or component entity 
thereof 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) Purchase of 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 in accordance with 
Congressional intent as set forth in the resolution contained in Public 
Law 103-317, sections 607(a)-(b).

    Dated: March 27, 1995.
Mary Lowe Good,
Under Secretary of Commerce for Technology, Department of Commerce.
[FR Doc. 95-7800 Filed 3-29-95; 8:45 am]
BILLING CODE 3510-18-M