[Federal Register Volume 59, Number 21 (Tuesday, February 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2180]


[[Page Unknown]]

[Federal Register: February 1, 1994]


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DEPARTMENT OF DEFENSE

 

Defense Logistics Agency Cooperative Agreement Revised Procedures

AGENCY: Defense Logistics Agency, Department of Defense.

ACTION: Cooperative agreements; proposed revised procedures.

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SUMMARY: This proposed revised procedure implements title 10, chapter 
142, United States Code, as amended, which authorizes the Secretary of 
Defense, acting through the Director, Defense Logistics Agency (DLA), 
to enter into cost sharing cooperative agreements to support 
procurement technical assistance programs established by state and 
local governments, private nonprofit organizations, Tribal 
organizations, and Indian-owned economic enterprises. Subpart III of 
this issuance establishes the proposed administrative procedures to be 
implemented by DLA to enter into such agreements for this purpose.

EFFECTIVE DATE: March 4, 1994.

FOR FURTHER INFORMATION CONTACT:
Mr. Sim Mitchell, Program Manager, Office of Small and Disadvantaged 
Business Utilization (AQAU), Defense Logistics Agency, Cameron Station, 
Alexandria, VA 22304-6100, telephone (703) 274-6471.

SUPPLEMENTARY INFORMATION:

I. Background Information

    The Department of Defense (DoD) efforts to increase competition in 
the private sector have been supplemented by many state and local 
governments and other entities which operate procurement technical 
assistance (PTA) programs. The DoD PTA Program provides assistance to 
eligible entities by sharing the cost of establishing new and/or 
maintaining existing PTA programs. The PTA program is designed to 
expand the DoD industrial base and increase competition for its 
requirements for goods and services, thereby reducing the cost of 
maintaining a strong national security.
    The PTA Cooperative Agreement Program was established by the Fiscal 
Year (FY) 1985 DoD Authorization Act, Public Law 98-525. The Public Law 
amended title 10, United States Code (USC), by adding chapter 142. 
Title 10, USC, as amended, continues to authorize the Secretary of 
Defense, acting through the Director, Defense Logistics Agency (DLA), 
to enter into cost sharing cooperative agreements with state and local 
governments, other nonprofit entities, Tribal organizations and Indian 
economic enterprises (hereafter referred to as eligible entities as 
defined in Section 3 of this procedure) to establish and conduct PTA 
programs.
    The FY DoD Authorization Act authorized a total of $12 million to 
support the program during FY 94. Of this total, $600,000 is available 
for Indian programs only.
    Limitations placed on these funds are:
    (a) DoD's share of an eligible entity's net program cost (NPC) 
shall not exceed 50%, unless the eligible entity/recipient proposes to 
cover a distressed area. If the eligible entity/recipient proposes to 
cover a distressed area, the DoD share may be increased to an amount 
not to exceed 75%. In no event shall DoD's share of NPC exceed $150,000 
for programs providing less than statewide coverage or $300,000 for 
programs providing statewide coverage.
    (b) For the Indian Program, DoD's share of NPC shall not exceed 75% 
of $150,000, whichever is less, for programs providing services on a 
reservation(s) within one Bureau of Indian Affairs (BIA) service area. 
For programs providing services to 100% of the reservations within one 
BIA service area and at least 50% of the reservations of at least one 
additional BIA service area (multi-area coverage), DoD's share of NPC 
shall not exceed 75% or $300,000, whichever is less.
    The purpose of the proposed revised procedure is to make available 
to all eligible entities the prerequisites, policies and procedures 
which will govern the award of cooperative agreements by DLA. Also, 
this procedure establishes the guidelines which will govern the 
administration of cooperative agreements.
    Although this procedure will affect all eligible entities desiring 
to enter into a DLA awarded cooperative agreement, DLA has determined 
that this procedure does not involve a substantial issue of fact or 
law, and that it is unlikely to have a substantial or major impact on 
the Nation's economy or large numbers of individuals or businesses. 
This determination is based on the fact that the proposed cooperative 
agreement procedure implements policies already published by the Office 
of management and Budget pursuant to title 31, chapter 63, United 
States Code, Using Procurement Contracts and Grants and Cooperative 
Agreements. In addition, DLA cooperative agreements will be entered 
into pursuant to the authorities and restrictions contained in the 
annual DoD Authorization and Appropriation Acts. Therefore, public 
hearings were not conducted.

II. Other Information

    The language contained in the current cooperative agreement 
procedure limited the period of coverage to the FY 93 Program in that 
it addressed the FY 93 Authorization Act requirements in specific 
terms, including the exact dollar amounts of funding applicable to the 
Program. This proposal revision to the procedure will provide general 
guidance for cooperative agreements entered into by the DLA and will 
become a permanent document for the duration of the FY 94 program.
    Comments are invited on the procedure. Comments should be submitted 
to the Defense Logistics Agency, Office of Small and Disadvantaged 
Business Utilization, ATTN: AQAU, Cameron Station, Alexandria, VA 
22304-6100. Comments received after 2 March 1994 may not be considered 
in formulating revisions to the Procedure.

III. Proposed Revision to DLA Procedure--Cooperative Agreements

3-1  Policy

    A. Proposals for cooperative agreements are obtained through the 
issuance of a Defense Logistics Agency (DLA) solicitation for 
cooperative agreement proposals, (hereafter referred to as a SCAP). The 
contents of this procedure shall be incorporated, in whole or in part, 
into the SCAP to establish administrative requirements to execute and 
administer DLA awarded cooperative agreements. The SCAP may include 
additional administrative requirements that are not included herein.
    B. The SCAP is issued by the PTA Cooperative Agreement Program 
Manager's office in the DLA Office of Small and Disadvantaged Business 
Utilization. The Program Manager's office will also respond to any SCAP 
questions that may arise.
    C. The SCAP will become part of the applicant's offer upon 
acceptance of its proposal.
    D. Only one proposal will be accepted from a single eligible 
entity.
    E. Proposals will not be accepted from applicants which apply as 
co-equal partners or joint ventures. Only one organization can take the 
lead and primary responsibility for the proposed program. In other 
words,only one eligible entity can submit a proposal.
    F. Proposals will not be accepted from applicants who propose to 
provide less than county or equivalent (i.e. parish, borough) 
(hereafter referred to as county or equivalent) coverage. For example, 
if an applicant proposes to service any part of a county or equivalent, 
the applicant must service the entire county or equivalent.
    G. Cooperative agreements will be awarded on a competitive basis 
consistent with the SCAP. It is DLA's policy to encourage fair and open 
competition when awarding cooperative agreements.
    H. Letters of support and recommendation from Members of Congress 
will not be considered in the evaluation and selection of proposals to 
receive cooperative agreement awards.
    I. The SCAP shall be given the widest practical dissemination. It 
will be provided to all known eligible entities and to those that 
request copies after its issuance. All eligible entities interested in 
submitting a proposal under the SCAP will be invited to participate in 
a preproposal conference. Preproposal conferences will be held at the 
locations designated in the SCAP, approximately 30 calendar days prior 
to the SCAP's closing date.
    J. The SCAP shall not be considered to be an offer made by DoD. It 
will not obligate DoD to make any awards under this Program.
    K. The eligible entity is bound to perform the services described 
in its offer if selected for an award, and upon its proposal being 
incorporated into the cooperative agreement award document.
    L. Cooperative agreement recipients will have, on file, policies 
and procedures applicable to the PTA center's management control and 
financial control systems.
    M. DoD is not responsible for any monies expended or expenses 
incurred by applicants prior to the award of a cost sharing cooperative 
agreement. However, actual expenses incurred by FY 94 award recipients 
to participate in a FY 94 preproposal and/or postaward training 
conference may be reimbursed under the FY 94 cooperative agreement 
award subject to the provisions of the applicable cost principles.
    N. The award of a cooperative agreement under this program shall 
not, in any way, obligate DoD to enter into a contract or give 
preference for the award of a contract to a business firm which is or 
becomes a client of a DLA cooperative agreement recipient.
    O. Cooperative agreement recipients must give special emphasis to 
assisting small disadvantaged business (SDB) firms which participate or 
aspire to participate in DoD prime and subcontracting opportunities. A 
concerted effort must be made by recipients to identify SDB firms and 
provide them with marketing and technical assistance, particularly 
where such firms are referred for assistance by a DoD component, other 
Federal agencies, and state and/or local governments.
    P. Award recipients are not required to obtain or retain private, 
profit making and/or nonprofit consultants to support the program. Any 
subcontract costs being proposed for consulting services shall not 
exceed 10% of the total program cost (TPC) (25% of TPC under the 
American Indian Program). Proposals containing subcontracting costs for 
consultant services in excess of 10% of TPC (25% of TPC under the 
American Indian Program), will be rejected.
    Q. Reasonable quantities of government publications, such as 
``Selling to the Military,'' may be furnished to award recipients at no 
cost, subject to availability. All requests for such publications must 
be submitted to the cognizant Deputy for Small Business.
    R. For the purpose of executing cooperative agreements, authority 
is delegated to the Grants Officer.
    S. Each cooperative agreement recipient's area of performance will 
be limited to the county(ies) or equivalent specified in its 
cooperative agreement award, including modifications thereto. For the 
American Indian Program, the recipient's area of performance will be 
limited to the reservation(s) specified in its cooperative agreement. 
Recipients may voluntarily service clients outside their area of 
performance provided that the client's location is not being serviced 
by another PTA recipient.
    T. The PTA center's program manager/director must be employed by 
the PTA center on a full-time (100%) basis and salary must be charged 
to the PTA program.
    U. A minimum of 25% of the PTA program's requirements must be 
performed by the recipient. The remaining 75% of the PTA program's 
requirements may be performed by either the recipient and/or 
subrecipients, as applicable.
    V. To be considered during the evaluation process, part-time PTA 
program employees must devote a minimum of 3 calendar months per year 
of their time to the PTA program. Time spent may be performed 
continuously or incrementally during the 12 month period.
    W. Cooperative agreement recipients are required to provide 
information to their clients relating to the objectives of the 
Government's electronic commerce initiative which are as follows:
    1. Exchange procurement information--such as solicitations, offers, 
contracts, purchase orders, invoices, payments, and other contractual 
documents electronically between the private sector and the Federal 
government to the maximum extent practical;
    2. Provide businesses, including small, small disadvantaged, and 
women-owned businesses with greater access to Federal procurement 
opportunities;
    3. Ensure that potential suppliers are provided simplified access 
to the Federal government's electronic commerce system;
    4. Employ nationally and internationally recognized data formats 
that serve to broaden and ease the electronic interchange of data. 
(These formats are the ANSI ASC X-12 and UNEDIFACT formats.)
    5. Use agency and industry systems and networks to enable the 
Government and potential suppliers to exchange information and access 
Federal Procurement data.
    X. For the American Indian Program, if a tribal organization is to 
perform services benefiting other Indian tribe(s), written approval 
must be obtained by the eligible entry from each Indian Tribe to be 
serviced. Approval will consist of a written statement (signed by a 
responsible official authorized to legally bind the Indian tribe to be 
serviced) indicating that the Indian tribe approves and agrees to 
accept the services to be provided by the tribal organization.

3-2  Scope

    This procedure implements title 10, chapter 142, United States 
Code, as amended, and establishes procedure and guidelines for the 
award and administration of cost sharing cooperative agreements entered 
into between DLA and eligible entities. Under these agreements, 
financial assistance provided by DoD to recipients will cover the DoD 
share of the cost of establishing new and/or maintaining existing PTA 
programs which furnish PTA to business entities.

3-3  Definitions

    The following definitions apply for the purpose of this procedure.
    A. Act. The enabling legislation that authorizes the establishment 
and continuation of the PTA Cooperative Agreement Program each FY.
    B. Agency. A field office, of one of the twelve service areas, as 
published by the Bureau of Indian Affairs (BIA), U.S. Department of the 
Interior.
    C. American National Standards Institute (ANSI) Standard. A 
document published by ANSI that has been approved through the consensus 
process of public announcement and review. Each of these standards must 
have been developed by an ANSI Committee and must be revisited by that 
Committee within 5 years for update.
    D. Civil jurisdiction. All cities with a population of at least 
25,000 and all counties. Townships of 25,000 or more population are 
also considered as civil jurisdictions in four States (Michigan, New 
Jersey, New York, and Pennsylvania). In Connecticut, Massachusetts, 
Puerto Rico and Rhode Island where counties have very limited or no 
government functions, the classifications are done for individual 
towns.
    E. Client. A recognized business entity, including a corporation, 
partnership, or sole proprietorship, organized for profit or nonprofit, 
which is small or other than small, that has the potential or is 
seeking to market its goods and/or services to DoD, other Federal 
agencies, and state and/or local governments.
    F. Consultant services. Marketing and technical assistance offered 
directly to cooperative agreement recipients by private nonprofit and/
or profit making individuals, organizations or otherwise qualified 
business entities.
    G. Cooperative agreement. A binding legal instrument reflecting a 
relationship between DLA and the recipient of a cooperative agreement 
when the principal purpose of the relationship is to transfer a thing 
of value to the recipient to carry out a public purpose of support or 
stimulation authorized by a law of the United States instead of 
acquiring property or services for the direct benefit or use of the 
United States Government. Substantial involvement is expected between 
DLA and the recipient when carrying out the activity contemplated in 
the agreement.
    H. Cooperative agreement offer/application/proposal. An eligible 
entity's response to the SCAP describing its existing or planned PTA 
program.
    I. Cooperative agreement award recipient. An organization receiving 
financial assistance directly from DLA to carry out a PTA program. The 
organization is the entire legal entity even if only a particular 
component of the entity is designated in the cooperative agreement 
award document.
    J. Cost matching or sharing. The portion of project or program 
costs not borne by the Federal Government.
    K. Counseling session. A documented counseling session (telephone 
call, correspondence, or personal discussion) held with a client, where 
professional guidance is provided to assist the client in marketing its 
products and/or services to DoD, other Federal agencies, and state and 
local governments. This includes, but is not limited to, providing 
advice and assistance regarding marketing opportunities or technical 
assistance in areas such as:
    (1) Matching the client's products and/or services with that being 
purchased by DoD, other Federal agencies, and state and local 
governments;
    (2) Assisting with understanding specifications;
    (3) Preparing applications to be placed on solicitation mailing 
lists;
    (4) Preparing offers;
    (5) Providing postaward assistance in areas such as production, 
quality system requirements, finance, engineering, transportation and 
packaging; and
    (6) Providing information to business firms on the Mentor-Protege 
Pilot Program; Defense Conversion, Reinvestment and Transition 
Assistance Act of 1992; the Metric Conversion Act; Electronic Commerce/
Electronic Data Interchange (EC/EDI); and Total Quality Management 
(TQM).
    The distribution of publications or specifications, or simply 
referring clients to another source for advice or assistance, is not 
considered to be a counseling session.
    L. Direct cost. Any cost that can be identified specifically with a 
particular final cost objective. No final cost objective shall have 
allocated to it as a direct cost any cost, if other costs incurred for 
the same purpose, in like circumstances, have been included in any 
indirect cost pool to be allocated to that or any other final cost 
objective.
    M. Distressed area. The geographic area to be serviced by an 
eligible entity in providing PTA to business firms physically located 
within an area that:
    (1) Has a per capital income of 80% or less of that State's 
average; or
    (2) Has an unemployment rate that is one percent greater than the 
national average for the most recent 24-month period in which 
statistics are available.
    N. Duplicate coverage. A situation caused by two or more applicants 
offering to provide marketing and technical assistance to clients 
located within the same county(ies) or equivalent within the same 
geographic area.
    O. Electronic Commerce (EC). The conduct of administration, 
finance, logistics, procurement and transportation between the 
Government and private industry using an integrated automated 
information environment to interchange business transactions.
    P. Electronic Data Interchange (EDI): The computer-to-computer 
electronic transfer of business transaction information in a public 
standard formatted messages through use of a Value Added Network (VAN).
    Q. Eligible entities.
    (1) Organizations qualifying to submit a proposal under the general 
PTA program, including:
    (a) State government. Any of the several states of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, any 
territory or possession of the United States, or any agency or 
instrumentality of a State, exclusive of local governments. The term 
does not include any public and Indian housing agency under the U.S. 
Housing Act of 1937.
    (b) Local government. A county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937), school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under State law), any other 
regional or interstate government entity (such as regional planning 
agencies), or any agency or instrumentality of a local government. The 
term does not include institutions of higher education and hospitals.
    (c) Private, nonprofit organizations. Any corporation, trust, 
foundation, or institution which is exempt or entitled to exemption 
under section 501(c)(3)-(6) of the Internal Revenue Code, or which is 
not organized for profit and no part of the net earnings of which 
insure the benefit of any private shareholder or individual.
    (2) Organizations qualifying to submit a proposal under the 
American Indian program, including:
    (a) Indian economic enterprise. Any Indian-owned (as defined by the 
Secretary of the Interior) commercial, industrial, or business activity 
established or organized, whether or not such economic enterprise is 
organized for profit or nonprofit purposes: Provided, that such Indian 
ownership shall constitute not less than 51 per centum of the 
enterprise.
    (b) Tribal organization. The recognized governing body of any 
Indian tribe; any legally established organization of Indians which is 
controlled, sanctioned, or chartered by such governing body, or which 
is democratically elected by the adult members of the Indian community 
to be served by such organization and which includes the maximum 
participation of Indians in all phases of its activities.
    R. Existing program. Any PTA program that had a cooperative 
agreement award with DLA for any two or more years subsequent to FY 88.
    S. Federal funds authorized. The total amount of Federal funds 
obligated by the Federal government for use by the recipient.
    T. Follow-up counseling session. A documented counseling session 
(telephone call, correspondence, or personal discussion) held with a 
client subsequent to the initial counseling session.
    U. Grants officer (GO)/Administrative Grants Officer (AGO). An 
official with the authority to enter into, administer, and/or terminate 
grants or cooperative agreements.
    V. Indian. Any person who is a member of any Indian tribe, band, 
group, pueblo, or community which is recognized by the Federal 
Government as eligible for services from the BIA and any ``Native'' as 
defined in the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et 
seq.].
    W. Indian tribe. Any Indian tribe, band, group, pueblo, or 
community, including Native villages and Native groups (including 
corporations organized by Kenai, Sitka, and Kodiak) as defined in the 
Alaska Native Claims Settlement Act [43 U.S.C. Section 1601 et seq.], 
which is recognized by the Federal Government as eligible for services 
from the Bureau of Indian Affairs.
    X. Indirect cost. Any cost not directly identified with a single 
final cost objective, but identified with two or more final cost 
objectives or an intermediate cost objective. An indirect cost is not 
subject to treatment as a direct cost.
    Y. Initial counseling session. The first documented session 
(telephone call, correspondence, or personal discussion) where 
professional guidance is provided to a business firm to assist in 
marketing its products and/or services to DoD, other Federal agencies, 
and state and/or local governments. The initial counseling session may 
determine that the business firm has no potential to do business with a 
governmental agency.
    Z. In-kind contributions/donations. The value of noncash 
contributions provided by the eligible entity and non-Federal parties 
to the PTA Program. Only when authorized by Federal legislation may 
property or services purchased with Federal funds be considered as in-
kind contributions/donations. In-kind contributions/donations may be in 
the form of charges for real property and nonexpendable personal 
property and the value of goods and services directly benefiting and 
specifically identifiable to the project or program.
    AA. Integrated automated information environment. Computer-to-
computer exchange of public standard formatted messages through use of 
a VAN.
    AB. Multi-area coverage. A PTA program that proposes to service 100 
percent of the reservations located within one BIA service area and at 
least 50 percent of the reservations located within another BIA service 
area. The list of areas administered as Indian Reservations, as 
compiled by the BIA will be included in the SCAP to benefit American 
Indians.
    AC. Net program cost. The total program cost (TPC) (including all 
authorized sources) less any program income and/or other Federal funds 
not authorized to be shared.
    AD. New start. An eligible entity that is not an existing program 
(see above for definition of an existing program).
    AE. Other Federal funds. Federal funds provided by Federal agencies 
other than the DoD PTA Cooperative Agreement Program. When authorized 
by statute, Federal funds received from other sources, including 
grants, may be used as cost sharing and/or cost matching contributions.
    AF. Per capita income. The estimated average amount per person of 
total money income received during a calendar year for all persons 
residing in a given political jurisdiction as published by the U.S. 
Department of Commerce, Bureau of the Census.
    AG. Prior approval. A written approval by the Grants Officer/
Administrative Grants Officer evidencing prior consent, as required by 
the cooperative agreement award document.
    AH. Procurement technical assistance (PTA) cooperative agreement 
program. A program organized to generate employment and improve the 
general economy of a locality by assisting business firms in obtaining 
and performing under DoD, other Federal agency, and state and local 
government contracts.
    AI. Program income. Gross income received by the recipient or 
subrecipient from cooperative agreement supported activities. Program 
income includes fees from services performed, or from the use or rental 
of property acquired with cooperative agreement funds. Except as 
otherwise provided in statute or regulations of the Federal agency, 
program income does not include interest earned on advances of grant or 
subgrant funds, or rebates, credits, discounts, refunds, etc., or 
interest earned on any of them.
    AJ. Public Standard Format. A data exchange format which includes 
the ANSI format ASC X-12 and/or the United Nations Electronic Data 
Interchange for Administration, Commerce and Transport (UNEDIFACT).
    AK. Reservation. Includes Indian reservations, public domain Indian 
allotments, former Indian reservations in Oklahoma, and land held by 
incorporated Native groups, regional corporations, and village 
corporations under the provisions of the Alaska Native Claims 
Settlement Act [43 U.S.C., Section 1601 et seq.].
    AL. Service area. Any one of twelve area offices, as published by 
the U.S. Department of the Interior, BIA, to include: Aberdeen, 
Albuquerque, Anardako, Billings, Eastern, Juneau, Minneapolis, 
Muskogee, Navajo, Phoenix, Portland and Sacramento.
    AM. Solicitation for cooperative agreement proposals (SCAP). A 
document issued by DLA containing provisions and evaluation factors 
applicable to all applicants which apply for a PTA cooperative 
agreement.
    AN. Statewide coverage. A PTA program which proposes to service at 
least 50% of a State's counties (or equivalent (i.e., parishes, 
boroughs)) and 75% of a State's labor force.
    AO. Subrecipient. The legal entity to which a subagreement is made 
and which is accountable to the recipient of the cooperative agreement 
for the use of the PTA program funds provided.
    AP. Third party in-kind contributions. The value of non-cash 
contributions provided by non-Federal third parties. Third party in-
kind contributions may be in the form of real property, equipment, 
supplies and other expendable property, and the value of goods and 
services directly benefiting and specifically identifiable to the 
project or program.
    AQ. Total program cost (TPC). All allowable costs as set forth in 
OMB Circular Nos. A-21, A-87 and A-122, as applicable. All funds and 
in-kind contributions/donations received from all sources, including 
their parties, as a result of operating the program.
    AR. Total quality management (TQM). Total quality is a philosophy 
of management which harnesses the creativity of all employees 
(management and non-management) in a structured approach to 
continuously improving the processes by which products or services are 
produced to meet customers' requirements and expectations. It is an 
integrated system of management with recognizable components which: 
acknowledges that the customer(s) define quality in product or service; 
focuses all of the efforts of the enterprise on understanding and 
meeting or exceeding customer needs; employs proven tools and 
techniques to map and measure processes so that variation can be 
reduced, defects can be prevented, and problems can be solved; and 
involves and values everyone.
    AS. Value added network (VAN). A commercial telecommunications 
service provider which passes electronic commerce traffic between a 
government entity and a commercial, private-sector vendor.

3-4  Program Purpose and Requirements

    A. The purpose of the PTA Program is to generate employment and 
improve the general economy of a locality by assisting business firms 
in obtaining and performing under Federal, state and local government 
contracts.
    B. Requirements.
    1. Program requirements.
    a. Have resources necessary to implement its program.
    b. Assist business firms with increasing the number of prime and 
subcontract awards received.
    c. Assist business firms by providing marketing and technical 
assistance in selling their goods and services to DoD, other Federal 
agencies, and state and local governments.
    d. Provide business firms with information on the Mentor-Protege 
Pilot Program; Defense Conversion, Reinvestment and Transition 
Assistance Act of 1992; The Metric Conversion Act; EC/EDI; and TQM.
    2. Service requirements. A comprehensive PTA program should 
include, but should not be limited to, the following:
    a. Procurement Outreach Program. Plan, procedures and resources to 
make the business community aware of the PTA Cooperative Agreement 
Program, what assistance it offers and the requirements for a business 
firm to become a client.
    b. Personnel. Personnel qualified to counsel and to advise business 
firms/clients regarding PTA Cooperative Agreement Program requirements, 
as they apply to both prime and subcontracts. Personnel qualifications 
should relate to the program being offered by the applicant/recipient. 
Some areas of consideration are:
    (1) Procurement policies and procedures;
    (2) Marketing techniques and strategies;
    (3) Pricing policies and procedures;
    (4) Preaward procedures;
    (5) Postaward contract administration;
    (6) Quality assurance;
    (7) Production and manufacturing;
    (8) Financing;
    (9) Subcontracting requirements;
    (10) Bid and proposal preparation;
    (11) Electronic Commerce/Electric Data Interchange; and
    (12) Specialized acquisition requirements for such areas as 
construction, research and development, and data processing.
    c. Counseling program. Plan, procedures and resources for 
counseling potential or existing clients regarding marketing their 
goods and/or services to DoD, other Federal agencies, and state and 
local governments; the publications to be used in such efforts; 
identification of information to be provided to clients during 
counseling sessions; and the procedures for documenting counseling 
efforts.
    d. Marketing opportunity program. Plan, procedures and resources 
for identifying sources and opportunities for clients to market their 
goods and/or services to DoD, other Federal agencies, and state and 
local governments.
    e. Client information program. Plan, procedures and resources for 
educating clients concerning each of the following: Mentor-Protege 
Pilot Program; Defense Conversion, Reinvestment and Transition 
Assistance Act of 1992; The Metric Conversion Act; and Total Quality 
Management (TQM).
    f. Electronic Data Interchange/Electronic Commerce (EDI/EC) 
Program. Plan, procedures and resources to assist clients with 
understanding the objectives of the Government's EC/EDI initiatives. 
EC/EDI uses value added networks (VAN) to pass data electronically 
between the government procurement activity and the industry trading 
partner (vendor). The government procurement activity is connected to a 
VAN which is also connected to a vendor. The objectives of the 
Government's EC/EDI initiatives are as follows:
    (1) Exchange procurement information such as: solicitations, 
offers, contracts, purchase orders, invoices, payments, and other 
contractual documents electronically between the private sector and the 
Federal government to the maximum extent practicable;
    (2) Provide businesses, including small, small disadvantaged, and 
women-owned businesses with greater access to Federal procurement 
opportunities;
    (3) Ensure that potential suppliers are provided simplified access 
to the Federal government's electronic commerce system;
    (4) Employ nationally and internationally recognized data formats 
that serve to broaden and ease the electronic interchange of data 
(These formats are the ANSI ASC X-12 and UNEDIFACT formats); and
    (5) Use agency and industry systems and networks to enable the 
Government and potential suppliers to exchange information and Federal 
procurement data.
    g. Postaward Assistance Program. Plan, procedures and resources for 
educating clients concerning contract postaward functions in areas such 
as: production, quality systems, finance, transportation, packaging, 
subcontracting, etc.
    h. Contract Award Verification Program. Plan, procedures and 
resources for collecting, documenting, and reporting prime and 
subcontract awards received by clients due to assistance provided by 
the award recipient. The recipient must be capable of segregating data 
by origin of the award (DoD, other Federal agency, state or local 
government) and type of business receiving the award (small business or 
other than small business). In addition, award recipients are required 
to have on file for their clients for each reported award, the 
following:
    (1) The number and dollar value for prime and subcontract awards 
received by clients;
    (2) A signed statement from the client confirming that the prime 
and/or subcontract award was obtained as a result of the assistance 
provided by the PTA center; and
    (3) A means of validating the data.
    3. Fees and service charges. If the applicant plans to charge 
business firms/clients a fee or service charge, accounting procedures 
and details as to the amount and basis for the fee or service charge 
must be described.

3-5  Procedures

    A. Grants Officer (GO) as used herein refers to the GO assigned to 
the Program Manager's office, HQ DLA Office of Small and Disadvantaged 
Business Utilization.
    B. The Program Manager's office develops and prepares the SCAP and 
evaluation criteria.
    C. The DLA PTA Cooperative Agreement Policy Committee (Policy 
Committee) approves the SCAP and evaluation criteria prior to its 
issuance. The Policy Committee is comprised of representatives from the 
HQ, DLA, Directorates of General Counsel, Acquisition (Offices of Small 
and Disadvantaged Business Utilization, Contract Management and 
Procurement), Corporate Administration (Office of Congressional 
Affairs), and Comptroller, The Director, Office of Small and 
Disadvantaged Business Utilization serves as the Policy Committee 
Chairman.
    D. The Policy Committee is the final administrative appeal 
authority for disputes and protests.
    E. Proposals and revisions received after the deadlines for receipt 
of proposals (to be specified in the SCAP) will not be evaluated unless 
they are determined acceptable based upon the following criteria.
    (a) Acceptable evidence to support an otherwise late proposal or 
revised proposal received after the closing time and date shall consist 
of:
    1. An original U.S. Post Office receipt for registered or certified 
mail showing date of mailing not later than five calendar days before 
the date specified for receipt of proposals and revisions; or
    2. When sent by U.S. Postal Service Express Mail Next Day Service--
Post Office to Addressee, the date entered by the post office receiving 
clerk on the ``Express Mail Next Day Service--Post Office to 
Addressee'' label and the postmark on the envelope or wrapper and on 
the original receipt from the U.S. Postal Service. The postmark date 
must be two working days prior to the date specified for receipt of 
proposals. The term working days excludes weekends and Federal 
holidays. Applicants should request the postal clerk to place a legible 
hand cancellation ``bull's-eye'' postmark on both the receipt and 
envelope or wrapper.
    (b) If the proposal or revision is hand-delivered, the specific 
time and delivery date shall be supported by a receipt given by the 
Program Manager's office.
    F. The evaluation of proposals submitted in response to the SCAP 
and the selection of award recipients shall be conducted as detailed 
below:
    (1) Intitial evaluation. The GO performs an evaluation of each 
proposal received to determine if the proposal:
    (a) Provides county-wide or equivalent coverage;
    (b) Contains sufficient technical, cost and other information;
    (c) Has been signed by a responsible official authorized to bind 
the eligible entity; and
    (d) Generally meets all requirements of the SCAP. If a proposal is 
removed from further consideration for an award by the GO, the 
applicant will be promptly notified of the reason(s) for removal. The 
applicant's proposal will be retained with other unsuccessful proposals 
by the GO.
    (2) Minor informalities and mistakes. The GO shall examine all 
proposals for mistakes.
    (a) The GO shall provide an eligible entity the opportunity to cure 
any deficiency resulting from a minor informality or irregularity 
contained in the offer or waive the deficiency, whichever is to the 
advantage to the Government. A minor informality or irregularity is one 
that is merely a matter of form and not of substance. It also pertains 
to some immaterial defect in an offer or variation of an offer from the 
exact requirements of the solicitation that can be corrected or waived 
without being prejudicial to other offerors. The defect or variation is 
immaterial when the effect on program quality is negligible when 
contrasted with the program's total cost. (Two examples or minor 
informalities include the failure of the eligible entity to: (1) Return 
the required number of copies of its proposal; and (2) Execute the 
certifications required by the SCAP clauses).
    (b) In case of apparent mistakes and in cases where the GO has 
reason to believe that a mistake may have been made, the GO shall 
request verification from the entity that the offer ``should read as 
stated'' calling attention to the suspected mistake. Any clerical 
mistake, apparent in the offer, may be corrected by the GO. (Examples 
of apparent mistakes are: (1) Obvious misplacement of a decimal point; 
(2) incorrect transposition of numbers; and (3) obvious mistake in 
identifying the program type (existing versus new start)). The GO shall 
obtain from the eligible entity a written verification of the offer 
intended.
    (c) Correction of a mistake by the GO shall be effected by 
attaching the verification to the original offer. The GO shall not make 
corrections on the entity's proposal. Corrections shall be restated in 
the cooperative agreement award document, if the entity receives an 
award.
    (d) If an eligible entity requests permission to correct a mistake, 
including those identified by the GO during their review and clear and 
convincing evidence establishes the existence of the mistake, the GO 
may make a determination permitting the eligible entity to correct the 
mistake. If this correction would result in displacing one or more 
eligible entities that would otherwise rank higher, such a 
determination shall not be made unless the existence of the mistake and 
the proposed information actually intended are ascertained 
substantially from the proposal itself.
    (3) The GO will review and verify the accuracy of the applicant's 
program status stated on block 8, ``Type of Application'' of the 
Standard Form (SF) 424. If the GO considers the proposal status 
misclassified, the matter will be reviewed with the applicant. If there 
is disagreement, the GO's decision regarding the program classification 
is final and is not subject to further review.
    (4) If the GO determines that supporting documentation does not 
substantiate the applicant's proposed distressed area status (where 
greater than 50% funding as the DoD share is requested), the 
application will be disqualified and not be given further review or 
consideration for an award. The proposal will be retained with other 
unsuccessful applicants by the GO.
    (5) The GO will forward all proposals which pass the initial 
evaluation phase to the Evaluation Panel. These proposals are then 
subjected to a comprehensive evaluation by the Evaluation Panel.
    (6) Comprehensive Evaluation. A specially constituted HQ, DLA, 
Evaluation Panel comprised of small business specialists, contract 
management specialists, and other personnel deemed appropriate by the 
Policy Committee performs the comprehensive evaluation. A member of the 
HQ DLA Directorate of General Counsel provides legal assistance to the 
Evaluation Panel, as needed.
    The purpose of the comprehensive evaluation is to assess the merits 
of the proposals to determine which offer the greatest likelihood of 
achieving the stated program purpose considering technical, quality, 
personnel qualifications, estimated cost, and other relevant factors. 
The Evaluation Panel conducts its evaluations in accordance with stated 
criteria.
    (7) Duplicate coverage. Proposals that include duplicate coverage 
will be processed by the GO as follows:
    (a) General Program.
    1. When two or more applicants submit proposals that provide 
duplicate coverage of the county(ies) or equivalent within the 
geographic area which the applicant plans to service, selection 
priority will be given to the proposal that is assigned the highest 
total points by the Evaluation Panel.
    2. To be considered for an award, an applicant's proposal shall not 
duplicate more than 25%, on an individual or cumulative basis, any of 
the county(ies) or equivalent proposed by other applicant(s).
    3. Only one statewide program will be awarded in a state.
    (b) American Indian Program.
    1. When two or more applicants submit proposals that provide 
duplicate coverage of the reservation(s) which the applicant plans to 
service, selection priority will be given to the proposal that is 
assigned the highest total points by the Evaluation Panel.
    2. To be considered for an award, an applicant's proposal shall not 
duplicate more than 25% on an individual or cumulative basis any of the 
reservation(s) proposed by other applicant(s).
    G. The award recommendations are approved by the Program Manager 
and executed by the GO.

3-6  Evaluation Factors

    A. Proposals received as a result of the SCAP will be grouped as 
existing programs and new start programs based on the information 
provided on block 8 of the SF 424, or as determined by the GO.
    B. Each group of proposals will be evaluated separately based upon 
the evaluation factors specified for the group. The SCAP will provide 
an explanation of each evaluation factor.
    C. Proposals will be to be evaluated, and award will be made, 
without discussions with the applicants (other than discussions 
conducted for the purpose of minor clarification).
    D. The following evaluation factors (which may be subject to 
change) will be considered:
    (1) Existing Program Service Requirements.
    (a) Program's past performance and effectiveness, description and 
development.
    1. Past performance and effectiveness.
    2. Description.
    a. Types and qualifications of personnel.
    b. Geographic area(s) the applicant plans to service.
    1. The county(ies) or equivalent the applicant plans to service.
    2. Level of unemployment in the county(ies) or equivalent the 
applicant plans to service.
    c. Potential number and types of clients the applicant plans to 
service.
    3. Development.
    a. Procurement Outreach Program.
    b. Counseling Program.
    c. Marketing Opportunities Program.
    d. Client Information Program.
    e. Electronic Commerce/Electronic Data Interchange (EC/EDI) 
Program.
    f. Postaward Assistance Program.
    g. Contract Award Verification Program.
    (b) Subcontracting for consultant services.
    (2) New Start Program Service Requirements.
    (a) Program's description and development.
    1. Description.
    a. Types and qualifications of personnel.
    b. Geographic area(s) the applicant plans to service.
    1. The county(ies) or equivalent the applicant plans to service.
    2. Level of unemployment in the county(ies) or equivalent the 
applicant plans to service.
    c. Potential number and types of clients the applicant plans to 
service.
    2. Development.
    a. Procurement Outreach Program.
    b. Counseling Program.
    c. Marketing Opportunities Program.
    d. Client Information Program.
    e. Electronic Commerce/Electronic Data Interchange (EC/EDI) 
Program.
    f. Postaward Assistance Program.
    g. Contract Award Verification Program.
    (b) Subcontracting for consultant services.
    E. Certain of these evaluation factors will be evaluated based upon 
stated implementing policy for programs. For example, for the types and 
qualifications of personnel, applicants and their subagreement 
applicants will be required to provide a list of professional personnel 
by name (or the qualification standard if a position is not occupied) 
along with salary and education information, previous experience (by 
technical discipline), and the percentage of time assigned or to be 
assigned to directly performing the program.
    F. The amount of subcontracting for consultant services provided 
directly to cooperative agreement recipients by private nonprofit and/
or profit-making individuals, organizations or otherwise qualified 
business entities is limited to no more than 10% of TPC for both 
existing programs and new starts (25% of TPC under the American Indian 
Program). However, in evaluating this factor for existing programs, the 
smaller the amount of subcontracting for consultant services the 
greater the weight that will be given. In the case of new starts, 
subcontracting is not an evaluation factor. New starts are subject only 
to the 10% limitation (25% limitation under the American Indian 
Program).

3-7  DoD Funding

    A. The FY 94 DoD Authorization Act authorized a total of $12 
million to support the PTA program during FY 94. Of this total $600,000 
is available for Indian programs only.
    B. For the American Indian Program, proposals will be funded to the 
extent the $600,000 authorized for this program will allow. After 
selecting the highest ranking proposals for award, any remaining funds, 
which may be insufficient to fund the total amount of Federal funds 
requested, may be used to make additional award(s). Thus, an applicant 
may be offered the opportunity to reduce the amount of Federal funds 
requested to facilitate receiving an award. Notwithstanding the 
reduction in the amount of Federal funds requested, all other terms and 
conditions of the applicant's proposals must remain unchanged.

3-8  Cost Sharing Limitations

    A. The DoD share of NPC shall not exceed 50%, except in a case 
where an eligible entity meets the criteria for a distressed area. When 
the prerequisite conditions to qualify as a distressed area are met, 
the DoD share may be increased to an amount not to exceed 75%.
    b. In no event shall the DoD share of NPC exceed $150,000 for 
programs providing less than statewide coverage or $300,000 for 
programs providing statewide coverage.
    C. For the Indian Program, the requested DoD share shall not exceed 
75% of NPC or $150,000 for a program providing service on 
reservation(s) within one BIA service area, or $300,000 for a program 
providing multi-area coverage.
    D. The type and value of third-party in-kind contributions/
donations is limited to no more than 25% of TPC.
    E. Indirect cost rates used in the proposal are subject to a 
downward revision only.

3-9  Cost Sharing Criteria

    A. Cost contributions may be either direct or indirect costs, 
provided such costs are otherwise allowable in accordance with the 
applicable cost principles. Allowable costs which are absorbed by the 
applicant as its share of costs may not be charged directly or 
indirectly or may not have been charged in part or in whole to the 
Federal Government under other contracts, agreements, or grants.
    B. The SCAP will require applicants to submit an annualized budget 
estimate, which may include cash contributions, in-kind contributions/
donations, and any other Federal agency funding (including grants, 
loans, and cooperative agreements) authorized to be used for this 
program.
    C. Program income or other Federal funds, that are not authorized 
for use by Federal statute, (excluding loan guarantee agreements since 
these do not provide disbursement of Federal funds) are not acceptable 
for use as the applicant's matching funds. Inclusion of other Federal 
funds in the program as part of TPC is subject to authorization by 
Federal statute and the terms of the instrument containing such funds 
or written advice obtained from the agency(ies) awarding the Federal 
funds. Any method used by the eligible entity in providing the required 
funds which relies upon Federal funds must be disclosed and identified 
in the eligible entity's proposal.
    D. Where distressed funding (greater than 50%) is requested and the 
civil jurisdiction(s) which the applicant plans to service are both 
distressed areas and non-distressed areas, two budgets must be 
submitted based on the anticipated distribution of TPC between these 
two areas. In addition, the recipient's accounting system must 
segregate and accumulate costs in each of the two budget areas.
    E. Recipients of PTA cooperative agreements are required to 
maintain records adequate to reflect the nature and extent of their 
costs and expenditures, and to insure that the required cost 
participation is achieved. In addition, each state and local government 
entity that receives Federal funding is required to have audits 
performed in accordance with the requirements of OMB Circular A-128. 
Nonprofit organizations and institutions of higher education are 
required to have audits performed in accordance with the requirements 
of OMB Circular A-133. Indian economic enterprises (for profit only) 
will also have an audit performed in accordance with the requirements 
of OMB Circular A-133. Recipients shall have the audit organization 
send a copy of all audit reports which pertain to the PTA cooperative 
agreement directly to the cognizant administration activity.
    F. If the applicant charges or plans to charge a fee or service 
charge for PTA given to clients, or receives any other income as a 
result of operating the PTA Program, the amount of program income 
generated must be added to TPC.
    G. The recipient may add funds to its program after all program 
funds are properly expended and before expiration of the cooperative 
agreement effective period. In the event funds are added to the 
program, the percent of total cost sharing will not be affected and the 
funds will not require allocation by object class category. However, 
total funds expended during the effective period must be reported on 
the DLA Form 1806, PTA Cooperative Agreement Performance Report. The 
expenditure of additional funds shall be made in accordance with the 
applicable cost principles.
    H. The following OMB Circulars (most recent issuance) will be used 
to determine allowable costs in performance of the program:
    (1) OMB Circular No. A-21, Cost Principles for Educational 
Institutions;
    (2) OMB Circular No. A-87, Cost Principles for State and Local 
Governments; and
    (3) OMB Circular No. A-122, Cost Principles for Nonprofit 
Organizations. This circular will also be used by for-profit 
organizations.

3-10  Administration

    A. Cooperative agreements will be assigned to the cognizant 
postaward administration activity listed in DLA Handbook 4105.4, DoD 
Directory of Contract Administration Service Components.
    B. The postaward administration activity will be responsible to 
ensure surveillance reviews are conducted: The reviews will include:
    (1) Management control systems;
    (2) Financial management control systems;
    (3) Progress being made by the recipient in meeting its goals; and
    (4) Compliance with certifications, representations and other 
performance factors.
    C. For eligible entities covered by OMB Circular No. A-102, Grants 
and Cooperative Agreements with State and Local Governments, or OMB 
Circular No. A-110, Grants and Agreements with Institutions of Higher 
Education, Hospitals and other Non-profit Organizations, the 
administrative requirements specified in those circulars will apply.
    D. The cognizant Deputy for Small Business will be the focal point 
for the AGO for small business issues and for all recipient publication 
and training requests.
Sim C. Mitchell,
Program Manager, Office of Small and Disadvantaged Business 
Utilization.
[FR Doc. 94-2180 Filed 1-31-94; 8:45 am]
BILLING CODE 3620-01-M