[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Notices]
[Pages 31782-31787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15531]




[[Page 31781]]


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Part V





Department of Commerce





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Economic Development Administration



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National Technical Assistance, Research and Evaluation: Requests for 
Proposals; Notice

Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / 
Notices

[[Page 31782]]



DEPARTMENT OF COMMERCE

Economic Development Administration
[Docket No. 950302065-6173-03]
RIN 0610-ZA03


National Technical Assistance, Research and Evaluation--Request 
for Proposals

AGENCY: Economic Development Administration (EDA), Department of 
Commerce (DoC).

ACTION: Notice of availability of funds.

-----------------------------------------------------------------------

SUMMARY: A total of $328,500,000 is available to EDA for all of its 
programs for FY 1996 (See Notice of Funding Availability for FY 1996 at 
61 FR 29526), of which approximately $2,125,000 (including funds to be 
transferred to EDA from the Department of Defense's Office of Economic 
Adjustment, DOD/OEA,) is or will be available for National Technical 
Assistance and for Research and Evaluation for specific projects which 
will aid in better understanding the causes of and solutions to 
economic distress/underemployment and unemployment throughout the 
Nation in the specific priority areas described herein. Additional 
funding may or may not be available. EDA issues this Notice describing 
the conditions under which eligible applications for these National 
Technical Assistance under 13 CFR Part 307, Subpart C, and Research and 
Evaluation under 13 CFR Part 307, Subpart D, projects will be accepted 
and selected for funding. EDA is soliciting proposals for the specific 
projects described herein which will be funded if acceptable proposals 
are received. Remaining funding, if any, may be used to fund additional 
projects.

DATES: Prospective applicants are advised that EDA will conduct a pre-
proposal conference on June 27, 1996, at 2:00 p.m., in the Department 
of Commerce, Herbert C. Hoover Building, 14th & Constitution Avenue, 
N.W., Washington, D.C. 20230, Room 7419, at which time questions on the 
National Technical Assistance and Research and Evaluation projects can 
be answered. Please provide written questions (See Addresses section 
below) by June 24, 1996. Background information packets relevant to 
each of the projects will be made available.
    Initial proposals for funding under this program will be accepted 
through July 22, 1996. Initial proposals received after that time will 
not be considered for funding.
    By July 22, 1996, EDA will advise successful proponents to submit 
full applications, (containing complete proposals as part of the 
application) OMB Control Number 0610-0094. Completed applications must 
be submitted to EDA by August 15, 1996. EDA will make these awards no 
later than September 30, 1996.

ADDRESSES: Send initial proposals and full applications, as applicable, 
to either: Lewis R. Podolske, Acting Director, Technical Assistance 
Program, Economic Development Administration, Room 7315, U.S. 
Department of Commerce, Washington, D.C. 200230 (National Technical 
Assistance); or John J. McNamee, Acting Director, Research and 
Evaluation Program, Economic Development Administration, Room 7315, 
U.S. Department of Commerce, Washington, D.C. 20230 (Research and 
Evaluation).

FOR FURTHER INFORMATION CONTACT:
Lewis R. Podolske, (202) 482-2127 (National Technical Assistance); or 
John J. McNamee, (202) 482-4085 (Research and Evaluation).

SUPPLEMENTARY INFORMATION:

I. Introduction

A. Authority

    The Public Works and Economic Development Act of 1965, (Pub. L. 89-
136, 42 U.S.C. 3121-3246h), as amended (PWEDA) at Sec. 3151 authorizes 
EDA as follows: to provide technical assistance which would be useful 
in reducing or preventing excessive unemployment or underemployment by 
conducting, among other things, studies evaluating the needs of, and 
the development of potential for economic growth in distressed areas 
(42 U.S.C. 3151(a)); and a program of research to assist in the 
formulation and implementation of national, state and local programs to 
raise income levels and other solutions to the problems of 
unemployment, underemployment, underdevelopment and chronic depression 
in distressed areas and regions (42 U.S.C. 3151(c)(B)). The Omnibus 
Appropriations Act of 1996, Public Law 104-134, makes funds available 
for these programs.

B. Catalog of Federal Domestic Assistance

    11.303 Economic Development-Technical Assistance; 11.312 Economic 
Development--Research and Evaluation Program.

C. Program Descriptions

    For descriptions of these programs see EDA's final rule at 13 CFR 
chapter III, 61 FR 7979, March 1, 1996, as corrected at 61 FR 15371, 
April 8, 1996, and its interim-final rule at 60 FR 49670, September 26, 
1995.

D. Additional Information and Requirements

    No award of Federal funds will be made to an applicant who has an 
outstanding delinquent Federal debt until either: 1. The delinquent 
account is paid in full; 2. A negotiated repayment schedule is 
established and at least one payment is received; or 3. Other 
arrangements satisfactory to DoC are made.
    Unsatisfactory performance under prior Federal awards may result in 
an application not being considered for funding.
    Applicants seeking an early start, i.e., to begin a project before 
EDA approval, must obtain a letter from EDA allowing such early start. 
Such approval may be given with the understanding that an early start 
does not constitute project approval. Applicants should be aware that 
if they incur any costs prior to an award being made they do so solely 
at their own risk of not being reimbursed by the Government. 
Notwithstanding any verbal or written assurance that may have been 
received, there is no obligation on the part of EDA to cover pre-award 
costs.
    The total dollar amount of the indirect costs proposed in an 
application under any EDA program must not exceed either 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, which 
ever is less.
    If an application is selected for funding, EDA has no obligation to 
provided any additional future funding in connection with an award. 
Renewal of an award to increase funding or extend the period of 
performance is at the sole discretion of EDA.
    Unless otherwise noted below, eligibility, program objectives and 
descriptions, application procedures, selection procedures, evaluation 
criteria and other requirements for all programs are set forth in EDA's 
final rule at 13 CFR Chapter III, 61 FR 7979, March 1, 1996, as 
corrected at 61 FR 15371, April 8, 1996, and its interim-final rule at 
60 FR 49670, September 26, 1995.

II. Areas of Special Emphasis

    EDA seeks proposals for the specific projects described as follows:

A. National Technical Assistance Program

    <bullet> State Technology Planning.

[[Page 31783]]

    EDA invites technical assistance proposals pertaining to innovative 
and useful science and technology planning programs by states to assist 
distressed communities.
    Background: EDA awards planning grants under section 302(a) of 
PWEDA, (42 U.S.C. 3151a(a)) to strengthen the economic development 
planning capability of states, cities and substate entities to ensure a 
more productive use of resources in reducing the effect of economic 
problems, particularly those resulting in high unemployment and low 
incomes. EDA has awarded approximately 15 state grants since 1990 that 
relate to state technology planning as a tool for economic development. 
The scopes of work of these grants, the project files and final reports 
are available at the six EDA regional offices. Other Federal programs 
also provide assistance to states to prepare statewide technology 
plans. Among these programs are the U.S. Department of Commerce (DoC) 
National Institute of Standards and Technology's State Technology 
Extension Program (STEP), and the National Science Foundation's 
Experimental Program to Stimulate Competitive Research (EPSCoR). In 
addition, other technology plans have been developed by national 
organizations, by states, or as regional or local efforts.
    Scope of Work: Under this grant award the recipient is expected to 
canvas the universe of planning efforts undertaken by states to use 
science and technology to assist distressed communities to enhance 
their economic development capabilities. As part of the project, the 
recipient must review EDA and other Federal and state efforts to 
promote the establishment of science and technology plans that support 
regional, state, or substate economic development. The task will 
include the review of project files, final reports, and plans, and 
interviews with staff by means of site visits and telephone 
conversations.
    Science and technology plans compiled during the canvass may 
encompass coordination of data bases, education plans related to 
technology, manufacturing extension services, telecommunications 
improvement and coordination, electronic commerce, business development 
using cyberspace, or other objectives. The recipient of this award is 
expected to compare and evaluate these science and technology plans for 
their impact on distressed areas, the best practices employed in 
targeting distressed areas, their innovative approach, their successful 
implementation, their economic development impact, and their 
replicability in other states.
    The resulting data must be appropriately analyzed and the results, 
with recommendations as appropriate, presented in a final report to be 
available for use by all states and other interested parties.
    The applicant will also be required to conduct briefings and 
training workshops for organizations interested in using the approaches 
compiled and examined under this project. These briefings and training 
workshops will be conducted in Washington, D.C., and the six EDA 
regional offices and will total no more than one such briefing/workshop 
for each of the seven locations.
    Cost: If properly justified, the Assistant Secretary may consider a 
waiver of the required 25 percent local share of the total project 
cost.
    Timing: The project should be completed and the final report 
submitted by March 31, 1997.
    <bullet> Impact of Incubator Investments.
    EDA invites technical assistance proposals to develop criteria to 
evaluate the impact of the incubator on the community.
    Background: In North America there are about 540 business 
incubation programs serving more than 8,000 in-house clients and 
affiliates. Over 5,000 companies have ``graduated'' from these 
incubation programs. Fifty-three percent of the incubators are 
considered urban, 28 percent rural, and 19 percent suburban. The basic 
types of incubators are: mixed use 47 percent, technology 20 percent, 
light manufacturing 13 percent, service 9 percent and micro enterprise/
empowerment 11 percent.
    Local, state and Federal Government agencies, economic development 
agencies, colleges and universities, for-profit firms, nonprofit 
organizations such as neighborhood revitalization organizations, as 
well as combinations of all these groups have provided financial 
assistance to construct and operate business incubation programs. Each 
sponsor may have its own goals for participation in the incubation 
programs. These goals may include diversification of the economy, 
development or expansion of small business sector of the local economy, 
increased employment and income in general and sometimes in specific 
neighborhoods, increased property usage and values, business retention, 
maintenance of population in particular areas, transfer of technology 
from universities and research laboratories, and development of a 
targeted technology infrastructure.
    Many incubation programs fail to keep records of incubator outcomes 
related to firm growth, employment, revenues, achievements of goals, 
and other community benefits. This may be due to failure to develop 
evaluation criteria, or the lack of resources to measure performance 
and determine outcomes. This project may require the development of 
performance measures and outcomes in such instances to be used by 
economic development organizations.
    Most performance outcome information that will be developed or 
gathered will provide only a ``score'' of how well the characteristic 
being measured is doing. Outcome indicators, in general, will not tell 
the extent to which the program has actually caused the observed 
outcomes. Only a substantive in-depth program evaluation can determine 
the extent to which program activity caused the measured results--the 
impact of the program on the local economy.
    An incubator's impact on a local community and economy comes from 
its ability to create a dynamic environment for the creation of new 
enterprises, and hence, new work. These goals are rarely realized over 
the time-span a firm is in an incubator, but extend into the long-term 
because of the nature of the business development cycle. Therefore, the 
goal of an external evaluation should be to determine progress toward 
long-term developmental goals. Proposals sought hereby will determine 
the appropriate evaluation methodology for the impact of various kinds 
of incubation programs on their local economies.
    Scope of Work: The successful applicant will: (1) develop 
performance measures for different types of incubator programs if not 
already available; (2) test the measures against a representative 
sample of 50 to 100 diverse incubator programs; (3) determine and 
analyze in depth the impact of the incubator investments on the local 
economy; (4) prepare a final report on the methodology developed and 
the analysis performed, as well as the long-term policy implications of 
different kinds of incubation programs; and (5) conduct briefings and 
training workshops in Washington, D.C., and EDA's six Regional Offices 
on the methodology developed, the analysis performed and the policy 
implications and will total no more than one such briefing/workshop for 
each of the seven locations.
    Cost: If properly justified, the Assistant Secretary may consider a 
waiver of the required 25 percent local share of the total project 
cost.

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    Timing: The project should be completed and the final report 
submitted by June 30, 1997.

B. Research and Evaluation Program

    <bullet> Performance Measure Testing and Impact of Public 
Infrastructure Investments.
    EDA invites a research and evaluation proposal pertaining to 
performance measurement testing and the impact of public infrastructure 
investments. The primary purpose of this project is to develop a 
methodology that local, state and other Federal agencies can adapt and 
replicate to analyze the impacts that result from their public 
infrastructure and other investments. The test subjects for this 
project will be EDA grant projects. There are dual components. Each 
component has its own scope of work and deadline, although the two 
components are inherently related. The two components are:
    (I) Performance Measure Testing--to gather and analyze data to test 
newly-developed program core performance measures; and (II) Impact of 
Public Infrastructure Investment--to develop and test a methodology for 
determining the impacts (economic benefits) resulting from public 
infrastructure investments on local economies. While the ultimate 
objective is a workable methodology, an essential prerequisite is the 
determination of the effectiveness of performance measures.
    I. Performance Measure Testing--Background: EDA has recently 
established a core set of performance measures for each of its grant 
program areas. These measures can be tested by reviewing two groups of 
projects that have been approved in previous years to determine the 
extent to which these specific performance measures are valid or need 
refining. The project will involve a review of project files, 
interviews with EDA staff and grantees, site visits, surveys (written 
or phone), etc. The resulting data must be appropriately analyzed and 
the results presented in a separate final report for each group of 
projects.
    A. The Performance Measures. The following core measures are to be 
tested under this project:
    <bullet> Performance and outcomes at project completion--
Construction Projects.
    1. Construction schedule met as to start and finish dates.
    2. Private sector dollars invested in the EDA Project (proposed, at 
time of approval).
    3. Private sector dollars invested in the EDA project (actual, at 
time of completion).
    4. Other dollars (Federal, state and local) invested in the EDA 
Project.
    5. Other dollars invested (nonfederal, local and private) directly 
related to, but not part of the EDA Project.
    6. Local capacity improved Diversification of local economy.
    7. Local capacity improved: Intended beneficiary(ies) actually 
established in the community.
    <bullet> Performance and outcomes at project completion--Capacity-
Building Projects.
    1. For Research/Evaluation and Technical Assistance projects: 
Project start and finish dates met.
    2. For Planning projects: Annual update of Overall Economic 
Development Program (OEDP) completed.
    3. For all capacity-building projects, grantee comment: with 1 to 
10 (10=best) numerical response for following questions:
    a. Quality of local OEDP/Adjustment Assistance (Title IX) Strategy.
    b. Extent of participation by government, business and community 
leaders, i.e., building of community partnerships.
    c. Extent projects implemented are based on OEDP/Title IX Strategy.
    d. Quality of evaluation or feasibility study.
    e. Impact of feasibility study on project planning.
    <bullet> Performance and outcomes at project completion--Revolving 
Loan Fund (RLF) Projects.
    1. Implementation schedule for disbursement of RLF dollars met.
    2. Jobs created and retained (actual) through RLF loans.
    3. Number of businesses assisted by the RLF.
    4. Non-EDA dollars invested.
    a. Private sector dollars invested.
    b. Other dollars invested.
    5. RLF capital base (grant+local share+net income generated--write-
offs).
    <bullet> Project outcomes at 2 and 4 years after completion--
Construction Projects.
    1. Jobs created and retained, as estimated on application.
    2. Jobs created and retained--actual.
    3. Private sector dollars invested in the EDA project--actual.
    4. Other dollars (Federal, state and local) invested in the EDA 
project--actual.
    5. Other dollars invested (nonfederal, local and private) directly 
related to, but not part of the EDA project.
    6. Other dollars invested indirectly related to the EDA project.
    7. Increase in local tax base (percentage) (actual or based on 
recognized multiplier).
    Project outcomes at 2 and 4 years after completion--Capacity-
Building Projects.
    For all capacity-building projects, grantee comment: with 1 to 10 
(10-best) numerical response for following questions:
    1. Quality of local OEDP/Title IX Strategy.
    2. Extent of participation by government, business and community 
leaders, i.e., building of community partnerships.
    3. Extent projects implemented are based on OEDP/Title IX Strategy.
    4. Quality of evaluation or feasibility study.
    5. Impact of feasibility study on project planning.
    <bullet> Project outcomes at 2 and 4 years after completion--RLF 
Projects.
    1. Jobs created and retained (actual) through RLF loans.
    2. Number of businesses assisted by the RLF.
    3. Private sector dollars invested.
    4. Other dollars invested.
    5. RLF capital base (grants+local share+net income generated--
write-offs).
    B. The Projects. The core measures are to be tested on the 
following two groups of projects:
    1. Fiscal Year (FY) completed Public Works projects.
    Under its Public Works program, EDA makes infrastructure grants to 
help distressed communities generate long-term, private sector jobs and 
diversity their economies. Among the types of projects funded are water 
and sewer facilities, access roads to industrial sites, and business 
incubator buildings. The universe of projects for the analysis sought 
is approximately 175 EDA public works grants for which final 
construction activities and project closeout were completed between 
October 1, 1989, and September 30, 1990. The individual projects are 
located throughout the U.S. The project files are retained in the six 
EDA regional offices.
    2. Defense Adjustment Assistance Projects.
    Under this program EDA makes grants to help communities design and 
implement strategies for adjustment to changes in their economic 
situation that cause or threaten to cause serious structural damage to 
their economic base due to defense downsizing or base closures. Grants 
under this program include infrastructure improvements similar to those 
in 1 above, strategically-targeted business development and financial 
assistance, assistance for developing adjustment strategies (planning), 
or technical assistance.

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    This group of projects includes grants approved in FY 1993 through 
FY 1995 as follows:

FY 1993 36 projects for $48 million
FY 1994 81 projects for $162 million
FY 1995 73 projects for $135 million

    Many of these grants are currently active, that is, the grant-
funded project is not yet completed. The projects are located 
throughout the U.S. The project files are retained in the six EDA 
regional offices.
    Scope of Work: The successful applicant will determine, on both a 
project-by-project basis and in the aggregate, the extent to which the 
two groups of projects met the core performance measurement standards 
that EDA has established, how effective the standards measure the 
program's performance, and what adjustments to the core measures may be 
necessary based on this analysis.
    In separate final reports on the public works and defense 
adjustment assistance project components, the applicant must fully 
document how the tests were conducted and provide the basis for any 
changes recommended.
    The applicant will also be required to conduct briefings and 
training workshops for organizations interested in learning about the 
results of the performance measurement project. These workshops will be 
conducted in Washington, and in EDA's six regional offices and will 
total no more than one such briefing/workshop for each of the seven 
locations.
    Cost: No local share match is required for this project. Half of 
the funding for the testing of performance measures on the defense 
program will be provided by the Office of Economic Adjustment of the 
Department of Defense.
    Timing: This component of the project should be completed and the 
final reports submitted by February 28, 1997.
    II. Impact of Public Infrastructure Investments--Backgrounds: The 
Federal Government and states administer several grant programs that 
provide financial assistance to communities for constructing or 
expanding public infrastructure facilities, although only EDA projects 
and performance measures are being analyzed in this project. These 
grant programs may strive toward various social goals, such as ensuring 
the availability of safe drinking water by replacing water lines, 
expanding communications links by building or maintaining public 
highways, or, in the case of the EDA public works program, reducing 
economic distress by fostering the creation of new employment 
opportunities. Some of these programs have begun to measure their own 
performances. EDA has developed and will apply a core set of 
performance measures to its programs on a prospective basis beginning 
October 1, 1996. These measures are expected to produce quantifiable 
outcomes of EDA's programs.
    The component of this two-part project described in the previous 
section will test EDA's core performance measures to gain knowledge for 
the economic development community of how performance measures can be 
applied, tested, analyzed and adjusted. Most outcomes measured by the 
core performance measures, however, will provide only a ``score'' of 
how well the particular characteristics being measured are doing. The 
outcome indicators will not generally tell the extent to which the 
program has actually caused the observed outcomes. Only a substantive 
in-depth program evaluation can reasonably uncover the link between 
performance indicators and program activities. There is, moreover, no 
widely accepted methodology for determining the economic and social 
benefits--the economic impacts on the local community--that actually 
result from public works infrastructure investments.
    Previous evaluations of EDA's public works program have suggested 
that criteria such as project utilization, job creation/retention 
efficiency, job quality, shift-share analysis, attribution (whether 
EDA's contribution was necessary for the implementation of the 
project), related private sector investments, increases in the tax 
revenues, and other outcomes could be used to measure the economic 
impact of public works projects on the local economy. The second 
component of this project will develop an appropriate methodology for 
evaluating the economic impacts of EDA's infrastructure investments.
    Much of the economic impacts from public infrastructure investments 
are believed to occur a considerable time after the completion of 
project construction. To maximize the probability that these impacts 
will have been realized, EDA proposes that approximately 175 EDA public 
works grants, for which final construction activities and project 
closeout were completed between October 1, 1989 and September 30, 1990, 
serve as the universe for this economic impact analysis. This is the 
same group of projects referred to in I.B.1. above.
    In the development of the methodology, EDA suggests that the 
analysis of impacts be targeted and focused to realistic boundaries 
within which economic impacts on a local economy can reasonable be 
attributed to the EDA infrastructure investment. In many instances, the 
area of measurable and reasonably attributable impacts may be smaller 
than traditional areas of socioeconomic measurement such as city or 
county or state boundaries. Boundaries targeted for this analysis may 
have to be focused down to the level of census tracts. In the process 
of conducting the analysis, developing the methodology and subsequently 
testing it upon the specified universe of infrastructure projects, 
therefore, EDA expects the recipient to limit to the greater extent 
possible any broad-scale comparison of local impacts to unreasonably 
large and/or national boundaries.
    Communities that received grants under the public works program are 
dispersed across the Nation. The project files for these grants are 
located in EDA's six regional offices.
    Scope of Work: The successful applicant will develop a methodology 
for determining and measuring the economic impacts of specific public 
infrastructure investments. The methodology will be tested on the 
previously-mentioned 175 EDA public works grants completed in FY 1990. 
EDA expects the methodology to reflect the core measures that will be 
applied to EDA's programs, as well as other relevant measures suggested 
by the analysis of the public works projects.
    The final report must fully document the methodology used for the 
project as well as revisions suggested by testing the methodology on 
the 175 public works projects. Actual impacts identified for each of 
the 175 public works projects must also be documented in the final 
report.
    The applicant will also be required to conduct briefings and 
training workshops for organizations interested in using the 
methodology developed under this project. These briefings and training 
workshops will be conducted in Washington, D.C., and the six EDA 
regional offices and will total no more than one such briefing/workshop 
for each of the seven locations.
    Cost: No local match is required for this project.
    Timing: This second component of the project should be completed 
and the final report submitted by June 30, 1997.
    <bullet> Performance Measurement Bibliography.
    EDA invites research proposals to develop an annotated bibliography 
of current literature on economic development performance measurement 
and economic impact studies.

[[Page 31786]]

    Background: With the current emphasis on improved program 
performance measured by results, service quality, and customer 
satisfaction, economic development funders at the Federal, state and 
local level are faced with the challenge of developing measures and 
methods for determining how well their programs perform. EDA has 
recently established a program performance and evaluation system to 
measure the output and outcomes of its program funding. This system 
builds on existing efforts at measuring the performance of economic 
development programs at the Federal and state levels.
    The bibliography should chronicle the universal principles and 
standards for measuring the outcomes and impacts of economic 
development investments, with reference to current and recent 
benchmarking, performance measurement and economic impact studies.
    Scope of Work: The successful applicant will (1) survey current and 
recent literature on economic development performance measurement and 
impact studies; (2) organize the literature in appropriate groupings; 
(3) in a final report, provide brief comments on the content of each 
article or book; (4) assemble a prototype public library containing 
copy of each article or book included in the annotated bibliography, 
including a computer disk version, where available, for inclusion in a 
future on-line public library; and (5) conduct a briefing on the 
findings in the Washington, D.C., office of EDA.
    Cost: No local match is required for this project.
    Timing: This project should be completed and the final report 
submitted by December 31, 1996.
    <bullet> EDA/DOD-OEA/Federal Government Role in Cluster-Based 
Economic Development.
    EDA invites research and evaluation proposals to determine the role 
EDA, the Department of Defense's Office of Economic Adjustment (DOD/ 
OEA) or other Federal agencies might play in promoting cluster 
development as an economic development tool, particularly as it relates 
to defense conversion.
    Background: Industry or business clusters are important economic 
development tools to the extent that they facilitate regional 
competitive advantages in the development and production of high-value, 
large-market goods or services. Some proponents suggest that a 
successful cluster development requires the presence of three specific 
elements: (1) Collaborative and competitive networks that form the 
supporting infrastructure for technology-based businesses; (2) a 
strong, basic manufacturing base characterized by multiple competing 
firms rather than several large, vertically integrated firms; and (3) a 
strong commitment among business and government leaders to reinforcing 
the region's viability as a regional hub for high value manufacturing.
    EDA has promoted cluster development as an economic development 
tool in communities whose economies have been adversely affected by 
defense expenditures reductions. In the case of flat panel display 
development in Florida and efficient pollution-free vehicle development 
in California, EDA provided funding to assist already-established, 
cluster-oriented organizations construct or equip test facilities for 
products produced by the members of the organizations. California 
organizations, including, but not limited to the Goldstrike Partnership 
and Regional Technology Alliance, Bay Area Economic Forum, Joint 
Venture Silicon Valley, and the High Technology Council of Los Angeles, 
received EDA funding for the development of a collaborative process 
involving the members of certain industries and stakeholders. EDA also 
awarded DRI/McGraw-Hill a grant to define and identify the industry 
clusters that drive the U.S. economy; explore the emerging practices of 
states and regions in fostering cluster development; and convene the 
first national conference on cluster-driven regional economic 
development.
    Scope of Work: The successful applicant will (1) analyze the role 
of cluster development in economic development in general and in 
defense adjustment, in particular; (2) document the degree to which the 
three elements thought to be necessary for cluster development were 
present in the EDA-supported cluster development projects and whether 
the EDA assistance facilitated or followed the development of those 
elements; (3) determine if all three elements must be present for the 
formation of a successful technology-based business or industry 
cluster; (4) determine if, how, and at what cost Federal support can 
influence the development of those elements; (5) estimate the time-
frame required for the development of those elements; (6) suggest the 
appropriate role, if any, the Federal Government should play in 
promoting cluster development. The applicant will be required to submit 
a final report documenting its findings from this project and to 
conduct briefings and training workshops for entities interested in the 
results of this project. These briefings and training workshops will be 
conducted in Washington, D.C., and the six EDA regional offices and 
will total no more than one such briefing/workshop for each of the 
seven locations.
    In undertaking this analysis, the applicant will review the cluster 
projects that EDA has funded to identify the various stages of 
organization and project development of the cluster process in 
different communities. This will require examining EDA grant files and 
contacting various people who were involved in developing the cluster-
oriented organizations and projects. Files for these projects are 
located in EDA's Seattle, Atlanta and Austin regional offices.
    Costs: No local match is required for this project. Half of the 
funding for this project will be provided by the Office of Economic 
Adjustment (OEA) of the Department of Defense.
    Timing: The project should be completed and final report submitted 
by June 20, 1997.
    <bullet> Leveraging Capital for Defense Adjustment Infrastructure 
Assistance.
    EDA invites research proposals to examine the potential for new and 
innovative techniques for leveraging significant capital for increased 
defense adjustment infrastructure assistance, including construction 
related to military base reuse.
    Background: The capital required for most defense adjustment 
infrastructure (re)development exceeds the ability of many communities 
to raise. Public funding for defense adjustment appropriation is modest 
compared with the current need for infrastructure assistance. This 
project would evaluate and recommend, if appropriate, alternative 
approaches to financing defense adjustment infrastructure projects, 
such as partially securing large bond issues, or providing for the 
first several years of payment on large bond issues until new tenants, 
etc., can pick up the costs. It would also evaluate what role other 
Federal financing mechanisms might play. The limitations and 
feasibility of such alternatives are not known, but could possibly 
serve to greatly extend the impact of limited defense program public 
works funds.
    Scope of Work: The successful applicant will (1) bring together a 
panel of public and private sector financial experts to explore the 
full range of realistic, innovative financing alternatives, and (2) 
prepare a comprehensive report and conduct briefings and training for 
interested parties, which document the alternatives and 
recommendations.

[[Page 31787]]

These briefings and training workshops will be conducted in Washington, 
D.C., and the six EDA regional offices and will total no more than one 
such briefing/workshop for each of the seven locations.
    Cost: No local match is required for this project. Half of the 
funding for this report will be provided by DOD/OEA.
    Timing: This project should be completed and the final report 
submitted by January 31, 1997.

III. How To Apply

A. Eligible Applicants

    <bullet> National Technical Assistance--See 13 CFR 307.12 in EDA's 
final rule at 13 CFR chapter III, 61 FR 7979, March 1, 1996, as 
corrected in 61 FR 15371, April 8, 1996, and its interim-final rule at 
60 FR 49670, September 26, 1995. Eligible applicants are as follows: 
public or private nonprofit organizations including nonprofit national, 
state, area, district, or local organizations; accredited educational 
institutions or nonprofit entities representing them; public sector 
organizations; and Native American organizations, including American 
Indian tribes; local governments and state agencies. Technical 
Assistance grant funds may not be awarded to private individuals or 
for-profit organizations.
    <bullet> Research and Evaluation--See 13 CFR 307.17 in EDA's final 
rule at 13 CFR chapter III, 61 FR 7979, March 1, 1996, as corrected in 
61 FR 15371, April 8, 1996, and its interim-final rule at 60 FR 49670, 
September 26, 1995. Eligible applicants are as follows: private 
individuals, partnerships, corporations, associations, colleges and 
universities, and other suitable organizations with expertise relevant 
to economic development research.

B. Proposal Submission Procedures

    The initial proposals submitted by potential applicants may not 
exceed ten pages in length and should be accompanied by a proposed 
budget, resumes/qualifications of the key staff, and proposed time 
line.

IV. Selection Process and Evaluation Criteria

    Proposals will receive initial reviews by EDA to assure that they 
meet all requirements of this announcement, including eligibility and 
relevance to the specified projects as described herein. The Office of 
Economic Adjustment of the Department of Defense will participate in 
evaluating proposals submitted for the Cluster Development and 
Leveraging Capital for Defense Adjustment Infrastructure Assistance 
projects described above. If a proposal is selected, EDA will provide 
proponent with an Application Form, and EDA will carry out its 
selection process and evaluation criteria as described at 13 CFR part 
304 and Secs. 307.13, 307.14, 307.18, and 307.19 in EDA's final rule at 
13 CFR chapter III, 61 FR 7979, March 1, 1996, as corrected in 61 FR 
15371, April 8, 1996, and its interim-final rule at 60 FR 49670, 
September 26, 1995.
    From the full proposals and application, EDA will select the 
applicants it deems most qualified and cost effective. EDA anticipates 
that more full proposals and applications will be invited than will 
eventually be funded.
    All project records are located in or are accessible through the 
six EDA regional offices. Unless otherwise specified in other sections 
of this RFP, EDA staff support will be limited to providing access to 
the records.

Paperwork Reduction Act

    OMB has approved these information collection requirements under 
the Paperwork Reduction Act of 1995 under OMB Control Number 0610-AA47.

    Dated: June 13, 1996.
Phillip A. Singerman,
Assistant Secretary for Economic Development.
[FR Doc. 96-15531 Filed 6-17-96; 10:12 am]
BILLING CODE 3510-24-M