[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10064]


[[Page Unknown]]

[Federal Register: April 26, 1994]


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DEPARTMENT OF COMMERCE
International Trade Administration
[Docket No. 940385-4085]
RIN 0625-ZA00

 

Market Development Cooperator Program

AGENCY: International Trade Administration (ITA), Commerce.

ACTION: Notice.

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SUMMARY: The mission of ITA is to promote U.S. exports and to 
strengthen the international trade position of the United States. ITA's 
ability to fulfill its mission is enhanced through building 
partnerships with the private sector. To encourage such partnerships, 
ITA has created the Market Development Cooperator Program to develop, 
maintain, and expand foreign markets for nonagricultural goods and 
services produced in the United States. For purposes of this program, 
``nonagricultural goods and services'' means goods and services other 
than agricultural products as defined in 7 U.S.C. 451. ``Produced in 
the United States'' means having substantial inputs of materials and 
labor originating in the United States, such inputs constituting at 
least 50 percent of the value of the good or service to be exported.
    The advantage of a joint effort is that it permits the Government 
to pool expertise and funds with non-federal sources so that each 
maximizes its market development resources. Partnerships of this sort 
also may provide a sharper focus on long-term export market development 
than do traditional trade promotion activities and serve as a mechanism 
for improving Government-industry relations.
    While the Market Development Cooperator Program is sponsored, 
guided and funded by the Department of Commerce with a matching 
requirement by the recipient, applicants are expected to develop, 
initiate and carry out market development project activities. As an 
active partner, ITA will provide assistance identified by the applicant 
as being essential to the achievement of project goals and objectives. 
U.S. industry is best able to assess its problems and needs in the 
foreign marketplace and to recommend innovative solutions and programs 
that can be the formula to success in international trade.
    Examples of activities that might be included in an applicant's 
project are described below. Not one of these activities or any 
combination of these activities must be included for a proposal to 
receive favorable consideration. Applicants are encouraged to propose 
activities that (1) would be most appropriate to market development 
needs of their industry or industries; and (2) display the imagination 
and innovation of the applicant working in partnership with the 
Government to obtain the maximum market development impact.
    A public meeting for parties considering applying for funding under 
the MDCP will be held on May 10, 1994. Attendance at this public 
meeting is not required of potential proposers. The purpose of the 
meeting is to provide general information regarding the MDCP 
procedures, selection process, and proposal preparation to potential 
applicants unfamiliar with the MDCP. No discussion of specific 
proposals will occur at this meeting.

DATES: The public meeting will be held May 10, 1994. Completed 
applications must be received no later than June 7, 1994. Competitive 
application kits will be available from the Department of Commerce 
starting April 26, 1994. It is anticipated that it will take 6 weeks to 
process applications.

ADDRESSES: The public meeting will be held at the Herbert Clark Hoover 
Building, U.S. Department of Commerce, 14th and Constitution Avenue, 
NW., Washington, DC Contact the information contact for room location.
    To obtain an application kit, please send a written request with a 
self-addressed mailing label to Mr. Greg O'Connor, Manager, Market 
Development Cooperator Program, Trade Development/OPCRM, room 3211, 
U.S. Department of Commerce, Washington, DC 20230. Application kits may 
also be picked up in room 3211, U.S. Department of Commerce, 14th and 
Constitution Avenue, NW., Washington, DC 20230. All forms necessary to 
submit an application will be included in the application kit.
    Completed applications should be sent to the Office of Planning, 
Coordination and Resource Management, Trade Development, room 3211, 
14th & Constitution Avenue, NW., Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Applicants wanting further information 
on this program should contact Mr. Greg O'Connor, Manager, Market 
Development Cooperator Program, Trade Development, room 3211, 
Washington, DC 20230, (202) 482-3197.

SUPPLEMENTARY INFORMATION:

Authority

    The Omnibus Trade and Competitiveness Act of 1988, Pub. L. No. 
100-418, Title II, sec. 2303, 102 Stat. 1342, 15 U.S.C. 4723.

Catalog of Federal Domestic Assistance (CFDA)

    No. 11.112, Market Development Cooperator Program.

Program Description

    The objective of the Market Development Cooperator Program is to 
develop, maintain, and expand foreign markets for nonagricultural goods 
and services produced in the United States. The intended beneficiaries 
are U.S. producers of nonagricultural goods or services that seek to 
export such goods or services.
    Market Development Cooperator Program funds should not be viewed as 
a replacement for funding from other sources, either public or private. 
An important goal of this program is to increase the sum of Federal and 
non-Federal export market development activities. This goal can best be 
achieved by using program funds to encourage new initiatives. In 
addition to new initiatives, expansion of the scope of an existing 
project also may qualify for funding consideration. The Department of 
Commerce will consider such projects as entirely new initiatives.
    Applicants are encouraged to propose activities that would be most 
appropriate to the market development needs of their industry or 
industries. The following are examples of activities which might be 
included in an application (no one of these activities or any 
combination of these activities must be included for an application to 
receive favorable consideration):
    (1) Opening an overseas office or offices to perform a variety of 
market development services for companies joining a consortium to avail 
themselves of such services; such an office should not duplicate the 
programs or services of the U.S. and Foreign Commercial Service 
(US&FCS) post(s) in the region;
    (2) Detailing a private sector individual to a US&FCS post in 
accordance with 15 U.S.C. 4723(c);
    (3) Entering into a contract with a bona fide market research 
company to conduct detailed, product-specific market research;
    (4) Assigning industry specialists to work with Department of 
Commerce/U.S. Executive Director Procurement Liaison Offices at the 
Multilateral Development Banks to seek out and develop procurement 
opportunities;
    (5) Underwriting the cost of overseas market research or 
participation in overseas trade exhibitions and trade missions to 
promote U.S. exports, or covering the expenses of reverse trade 
missions and/or foreign buyer group travel to U.S. domestic trade 
shows;
    (6) Overseas product demonstrations;
    (7) Export seminars in the United States or market penetration 
seminars in the market(s) to be developed;
    (8) Technical trade servicing that helps overseas buyers to choose 
the right U.S. good(s) or service(s) and to use the good or service 
efficiently;
    (9) Joint promotions with foreign customers;
    (10) Training of foreign nationals to perform after-sales service 
or to act as distributors;
    (11) Working with organizations in the foreign marketplace 
responsible for setting standards and for product testing to improve 
market access; and
    (12) Publishing an export resource guide or an export product 
directory for the industry or industries in question if no comparable 
one exists.

Funding Availability

    The total amount of funds available for this program is $2.5 
million for fiscal year (FY) 94. It is contemplated that a minimum of 
four (4) cooperative agreements will be concluded with eligible 
entities for this program. Each cooperative agreement will not exceed a 
total of $500,000 regardless of the duration of the award.

Matching Requirements

    Applicants will be expected to supply two thirds (2/3) of total 
project costs, with the Federal portion to be one third (1/3). The 
Department of Commerce will support only a portion of the direct costs 
of each project. Each applicant will support a portion of the direct 
costs (to be specified in the application). For purposes of this 
program, ``direct costs'' are defined as personnel, fringe benefits, 
travel, equipment, supplies, contractual, and other direct costs (e.g., 
rent and furnishings for an overseas office).
    A minimum of one half (1/2) of each applicant's support must be in 
the form of new cash outlays expressly for the project. The balance of 
the applicant's support may consist of in-kind contributions (goods and 
services). Applicants may charge companies in the industry or other 
industry organizations reasonable fees to take part in or avail 
themselves of services provided as part of applicants' projects. Plans 
to charge fees should be described in detail in the applicant's 
application.

Type of Funding Instrument

    Since it is anticipated that ITA will be substantially involved in 
the implementation of each project for which an award is made, the 
funding instrument for this program will be a cooperative agreement.

Eligibility Criteria

    Trade associations, nonprofit industry organizations, state trade 
departments and their regional associations including centers for 
international trade development, and private industry firms or groups 
of firms in cases where no entity described above represents that 
industry are eligible to apply for cooperative agreements under this 
program. For the purpose of this program, a ``nonprofit industry 
organization'' is defined as any nonprofit organization (such as 
chambers of commerce and world trade centers) made up of firms in an 
industry, or which is established or funded by and which operates on 
behalf of an industry. For the purpose of this program, a ``trade 
association'' is defined as consisting of member firms in the same 
industry, or in related industries, or which share common commercial 
concerns. The purpose of the association is to further the commercial 
interests of its members through the exchange of information, 
legislative activities, and the like.
    Eligible entities may join together to submit an application as a 
joint venture and to share costs. For example, two trade associations 
representing different segments of a single industry or related 
industries may pool their resources and submit one application. Foreign 
businesses and private groups also may join with eligible U.S. 
organizations to submit applications and to share the costs of proposed 
projects. Applications will be accepted from eligible entities 
representing any industry, subsector of an industry or related 
industries. Each applicant must permit all companies in the industry in 
question to participate, on equal terms, in all activities that are 
scheduled as part of a proposed project whether or not the company is a 
member or constituent of the eligible organization.
    Eligible entities desiring to participate in this program must 
demonstrate the ability to provide a competent, experienced staff and 
other resources to assure adequate development, supervision and 
execution of the proposed project activities. Applicants must describe 
in detail all assistance expected from the Department of Commerce or 
other Federal Government agencies to implement project activities 
successfully. Each applicant must provide a description of the 
membership of the eligible entity, the degree to which the entity 
represents the industry or industries in question, and the role, if 
any, foreign membership plays in the affairs of the eligible entity. 
Applicants should summarize both the recent history of their industry 
or industries' competitiveness in the international marketplace and the 
export promotion history of the eligible entity or entities submitting 
the application.
    Project proposals must be compatible with U.S. trade and commercial 
policy.

Award Period

    Funds may be expended over the period of time required to complete 
the scope of work, but not to exceed three (3) years from the date of 
the award.

Indirect Costs

    The total dollar amount of the indirect costs proposed in an 
application under this program must not exceed the indirect cost rate 
negotiated and approved by a cognizant Federal agency prior to the 
proposed effective date of the award or 100 percent of the total 
proposed direct costs dollar amount in the application, whichever is 
less.

Application Forms and Kit

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

Project Funding Priorities

    Applications may be targeted for any market in the world. In ITA's 
view, projects in the following sectors and countries present 
opportunities to develop, maintain and expand overseas markets and 
enhance jobs through U.S. exports:
    (a) Sectors: Environmental technologies, transportation 
technologies, energy technologies, information technologies, health 
technologies, and financial services;
    (b) Geographic Markets: Argentina, Brazil, China, Hong Kong, India, 
Indonesia, Korea, Mexico, Poland, Russia and the other Newly 
Independent States of the former Soviet Union, South Africa, Taiwan, 
and Turkey.
    While the proposed projects may entail an overseas presence, 
activities may take place in the United States if it is necessary to 
the project's success.
    Developing a project plan requires solid background research. 
Applicants should study, and applications should reflect such study of, 
the following:
    1. The market potential of the good(s) or service(s) to be promoted 
in a particular market(s),
    2. The competition from host-country and third-country suppliers, 
and
    3. The economic situation and prospects that bear upon the ability 
of a country to import the good(s) or service(s).
    Applicants should present in their applications an assessment of 
industry resources that can be brought to bear on developing a market; 
the industry's ability to meet potential market demand expeditiously; 
and the industry's after-sales service capability in a particular 
foreign market(s).
    After describing their completed basic research, applicants should 
develop marketing plans that set forth the overall objectives of the 
projects and the specific activities applicants will undertake as part 
of these projects. Applications should display the imagination and 
innovation of the private sector working in partnership with the 
Government to obtain the maximum market development impact.

Evaluation Criteria

    The Department of Commerce is interested in projects that 
demonstrate the possibility of both significant results during the 
project period and lasting benefits extending beyond the project 
period. To that end, consideration for financial assistance under the 
Market Development Cooperator Program will be based upon the following 
evaluation criteria:

(1) Anticipated

    (a) Increase in U.S. exports generated (per dollar of cooperator 
program funds spent) by the proposed expenditure of funds; and
    (b) Increase in the industry's foreign market share. Applicant 
should provide quantifiable estimates of expected project results, 
along with detailed explanations, for (1)a and (1)b above.

(2) Anticipated

    (a) Increase in the number of U.S. companies operating in the 
market(s) selected (multiplier effect); and/or
    (b) Increase in the number of current companies in the market 
undertaking new export initiatives. Applicant should provide 
quantifiable estimates of expected project results for either (2)a or 
(2)b above, or for both where proposed project increases are 
anticipated.
    (3) Export potential of the good(s) and/or service(s) to be 
promoted.
    (4) Willingness and ability of the applicant to back up promotional 
activities with aggressive marketing and after-sales service and 
probability that the project can be continued on a self-sustained basis 
after the completion of the award.
    (5) Intent and capability of the applicant to enlist the 
participation of small and medium size American companies in consortia 
and activities that are to be part of the proposed project;
    (6) Size of the cash portion of the applicant's funding for the 
proposed project and institutional capacity of the applicant to carry 
out the work plan;
    (7) Creativity and innovation displayed by the work plan while at 
the same time being realistic; and
    (8) Reasonableness of the itemized budget for project activities.
    Evaluation criteria 1-3 are of utmost importance in the selection 
process and will be worth 60 out of a possible 100 points as follows:

    Criterion #1--maximum 20 points.
    Criterion #2--maximum 20 points.
    Criterion #3--maximum 20 points.

    Evaluation criteria 4-8 together will be worth a total of 40 
points. Evaluation criteria 4-8 will be weighed equally.

Selection Procedures

    Each application will receive an independent, objective review by a 
panel qualified to evaluate the applications submitted under the 
program. The Review Panel, consisting of at least three people, will 
review all applications based on the criteria stated above. The Review 
Panel will identify and rank the top ten proposals and make 
recommendations to the Assistant Secretary for Trade Development 
concerning which of the ten should receive awards. The Assistant 
Secretary for Trade Development will make the final selection regarding 
the funding of applications from the group of ten identified by the 
Review Panel.

Other Requirements

(1) Federal Policies and Procedures

    Recipients and subrecipients are subject to all Federal laws and 
Federal and DOC policies, regulations, and procedures applicable to 
Federal financial assistance awards.

(2) Past Performance

    Unsatisfactory performance under prior Federal awards may result in 
an application not being considered for funding.

(3) Preaward Activities

    If applicants incur any costs prior to an award being made, they do 
so solely at their own risk of not being reimbursed by the Government. 
Notwithstanding any verbal or written assurance that they may have 
received, there is no obligation on the part of the Department of 
Commerce to cover preaward costs.

(4) No Obligation for Future Funding

    If an application is selected for funding, the Department of 
Commerce has no obligation to provide any additional future funding in 
connection with that award. Renewal of an award to increase funding or 
extend the period of performance is at the total discretion of the 
Department of Commerce.

(5) Delinquent Federal Debts

    No award of Federal funds shall be made to an applicant who has an 
outstanding delinquent Federal debt until either:
    i. The delinquent account is paid in full,
    ii. A negotiated repayment schedule is established and at least one 
payment is received, or
    iii. Other arrangements satisfactory to the DOC are made.

(6) Name Check Review

    All non-profit and for-profit applicants are subject to a name 
check review process. Name checks are intended to reveal if any key 
individuals associated with the applicant have been convicted of or are 
presently facing criminal charges such as fraud, theft, perjury, or 
other matters which significantly reflect on the applicant's management 
honesty or financial integrity.

(7) Primary Applicant Certifications

    All primary applicants must submit a completed Form CD-511, 
``Certifications Regarding Debarment, Suspension and Other 
Responsibility Matters; Drug Free Workplace Requirements and 
Lobbying,'' and the following explanations are hereby provided:
i. Nonprocurement Debarment and Suspension
    Prospective participants (as defined at 15 CFR part 26, section 
105) are subject to 15 CFR part 26, ``Nonprocurement Debarment and 
Suspension'' and the related section of the certification form 
prescribed above applies;
ii. Drug-Free Workplace
    Grantees (as defined at 15 CFR part 26, section 605) are subject to 
15 CFR part 26, subpart F, ``Governmentwide Requirements for Drug-Free 
Workplace (Grants)'' and the related section of the certification form 
prescribed above applies;
iii. Anti-Lobbying
    Persons (as defined at 15 CFR part 28, section 105) are subject to 
the lobbying provisions of 31 U.S.C. 1352, ``Limitations on use of 
appropriated funds to influence certain Federal contracting and 
financial transactions,'' and the lobbying section of the certification 
form prescribed above applies to applications/bids for grants, 
cooperative agreements, and contracts for more than $100,000, and loans 
and loan guarantees for more than $150,000, or the single family 
maximum mortgage limit for affected programs, whichever is greater; and
iv. Anti-Lobbying Disclosures
    Any applicant that has paid or will pay for lobbying using any 
funds must submit an SF-LLL, ``Disclosure of Lobbying Activities,'' as 
required under 15 CFR part 28, appendix B.

(8) Lower Tier Certifications

    Recipients shall require applicants/bidders for subgrants, 
contracts, subcontracts, or other lower tier covered transactions at 
any tier under the award to submit, if applicable, a completed Form CD-
512, ``Certifications Regarding Debarment, Suspension, Ineligibility 
and Voluntary Exclusion-Lower Tier Covered Transactions and Lobbying'' 
and disclosure form, SF-LLL, ``Disclosure of Lobbying Activities.'' 
Form CD-512 is intended for the use of recipients and should not be 
transmitted to the Department of Commerce. SF-LLL submitted by any tier 
recipient or subrecipient should be submitted to the Department of 
Commerce in accordance with the instructions contained in the award 
document.

(9) False Statements

    A false statement on an application is grounds for denial or 
termination of funds and grounds for possible punishment by a fine or 
imprisonment as provided in 18 U.S.C. 1001.

(10) Intergovernmental Review

    Applications under this program are not subject to Executive Order 
12372, ``Intergovernmental Review of Federal Programs.''

(11) Requirement to Buy American-Made Equipment or Products

    Applicants are hereby notified that any equipment or products 
authorized to be purchased with funding provided under this program 
must be American-made to the maximum extent feasible in accordance with 
Public Law 103-121, sections 606 (a) and (b). Adequate justifications 
will be required for any proposed purchases of equipment or products 
that are not American-made.

Classification

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

    Dated: April 20, 1994.
Jerome S. Morse,
Director, Resource Management and Planning Staff, Trade Development.
[FR Doc. 94-10064 Filed 4-25-94; 8:45 am]
BILLING CODE 3510-DR-P