[Federal Register Volume 59, Number 88 (Monday, May 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10883]


[[Page Unknown]]

[Federal Register: May 9, 1994]


                                                    VOL. 59, NO. 88

                                                Monday, May 9, 1994

DEPARTMENT OF AGRICULTURE

Rural Development Administration

7 CFR Part 4285

RIN 0537-AA00

 

Federal-State Research on Cooperatives Program

AGENCY: Rural Development Administration, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rulemaking establishes within the Rural 
Development Administration (RDA) a matching fund cooperative research 
agreement program to State Departments of Agriculture, State 
Agricultural Experiment Stations, and other related State Agencies to 
conduct marketing research related to cooperatives. This rule 
establishes the procedures to be followed annually in the solicitation 
of cooperative agreement proposals, the evaluation of such proposals, 
and the award of the cooperative agreements under this program. These 
rules are necessary to award the funds appropriated to Agricultural 
Marketing Service in fiscal year 1994 for research on cooperatives 
under the Federal-States Marketing Improvement Program. The intended 
effect is to encourage more research at state levels that will enhance 
the well-being of agricultural cooperatives and their members.

DATES: Comments are invited from interested individuals and 
organizations and must be received on or before June 8, 1994.

ADDRESSES: Submit written comments, in duplicate, to the Office of the 
Chief, Regulations Analysis and Control Branch, Farmers Home 
Administration, USDA, room 6348, South Agriculture Building, 14th 
Street and Independence Avenue SW., Washington, DC 20250. All written 
comments made pursuant to this notice will be available for public 
inspection during regular work hours at the above address.

FOR FURTHER INFORMATION CONTACT: Dr. Thomas H. Stafford, Director, 
Cooperative Marketing Division, Cooperative Services, Rural Development 
Administration, USDA, Ag Box 3252, Washington, DC 20250-3252, Phone: 
202-690-0368.

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be not-significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by OMB.

Paperwork Reduction Act

    The information collection or recordkeeping requirements contained 
in this regulation will be submitted for approval by the Office of 
Management and Budget (OMB) under the provision of 44 U.S.C. chapter 35 
and will be assigned an OMB control number in accordance with the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3507). Public reporting 
burden for this collection of information is estimated to vary from 10 
minutes to 36 hours per response with an average of 3.48 hours per 
response, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. Please send 
written comments to the Office of Information and Regulatory Affairs, 
OMB, Attention: Desk Officer for USDA, Washington, DC 20503. Please 
send a copy of your comments to Jack Holston, Agency Clearance Officer, 
USDA, RDA, Ag Box 0743, Washington, DC 20250.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the undersigned has determined and certified by signature of this 
document that this rule will not have a significant economic impact on 
a substantial number of small entities.

Environmental Impact Statement

    This proposed regulation does not significantly affect the 
environment. Therefore, an environmental impact statement is not 
required under the National Environmental Policy Act of 1969, as 
amended (42 U.S.C. 4321 et seq.).

Intergovernmental Review

    This program is considered a part of ``Technical Assistance To 
Cooperatives'' as listed as No. 10.350 in the ``Catalog of Federal 
Domestic Assistance''. For reasons set forth in the Final Rule-related 
Notice to 7 CFR part 3015, subpart V (48 FR 29115, June 24, 1983), this 
program is excluded from the scope of Executive Order No. 12372 which 
requires intergovernmental consultation with State and local officials.

Civil Justice Reform

    This document has been reviewed in accordance with Executive Order 
(E.O.) 12778. It is the determination of RDA that this action does not 
unduly burden the Federal Court System in that it meets all applicable 
standards provided in section 2 of the Executive Order.

Discussion of Proposed Rule

    It is the policy of this Department that rules relating to public 
property, loans, grants, benefits, or contracts shall be published for 
comment not withstanding the exemption of 5 U.S.C. 553 with respect to 
such rules. While Executive Order 12866 recommends at least a 60-day 
comment period for most proposed rules, the agency has determined that 
30 days is sufficient in this case. The 30-day period meets 
Administrative Procedures Act requirements. The FY 1994 appropriations 
for this program also must be obligated before September 30, 1994; 
therefore, a 30-day comment period is desired to allow research 
proposals to be developed in time for cooperative agreements to be 
awarded within the fiscal year. Furthermore, the procedures set out in 
the proposed rule are similar to other USDA cooperative agreement 
procedures and, therefore, are unlikely to elicit adverse comments.
    Only $435,000 was appropriated for this program for FY 1994 and may 
not be appropriated in subsequent years. However, it is the Agency's 
expectation that funds will be appropriated for this program either as 
a separate item or as part of the general appropriations for the Agency 
in future years. Therefore, this proposed rule establishes the 
guidelines for administering the program for future years.
    The Federal-State Research on Cooperatives Program (FSROC) is 
authorized under section 204(b) of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1623 (b)). The Agricultural Appropriations Act for 1994 
specifically appropriated funds to Agricultural Marketing Service 
(AMS), USDA to be used as a matching fund program designed to provide 
assistance to State Departments of Agriculture and State Agricultural 
Experiment Stations in conducting research related to agricultural 
cooperatives. In order to use the cooperative expertise available only 
in RDA, these funds, appropriated as part of the Federal-State 
Marketing Improvement Program (FSMIP), have been transferred to the 
Rural Development Administration, Cooperative Services (RDA-CS) to 
administer. Previous funding for a similar program in Agricultural 
Cooperative Service which has become RDA-CS was done on a 
noncompetitive basis with Land-Grant Universities. It was the apparent 
intent of Congress to have funds available for research on cooperatives 
on the same basis as funds used in AMS's FSMIP. Since FSMIP has been an 
effective program that has evolved since its authorization in 1946, it 
is apparent that the procedures developed at AMS should be closely 
mirrored in this new program with a cooperative content.
    Under the proposed FSROC, RDA will solicit State Departments of 
Agriculture, State bureaus and departments of markets, State 
Agricultural Experiment Stations, and other appropriate State agencies 
to submit research proposals to be funded on a competitive basis. The 
solicitation will include broad areas of research that the Agency 
wishes to emphasize so that the limited funds may more likely result in 
research being done in the areas determined by the RDA staff to be high 
priority. However, these areas of emphasis (Sec. 4285.58(b)(1)(v)) do 
not restrict the submission of proposed projects that will be 
considered if they meet the purposes of agricultural marketing as given 
in the Agricultural Marketing Act of 1946 (7 U.S.C. 1623).
    Section 204 (b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1623 (b)) restricts the funds for this program to be used on a 
cooperative basis with State Departments of Agriculture, State bureaus 
and departments of markets, State Agricultural Experiment Stations, and 
other appropriate State agencies. Since these funds are specifically 
for research related to agricultural marketing, it is the Agency's 
interpretation that the other appropriate State agencies are primarily 
1862 and 1890 Land Grant Colleges, since they conduct research related 
to agricultural marketing. USDA's OGC will make a determination if a 
particular college or university legally qualifies as a State agencies. 
Other State agencies would be considered appropriate if they have the 
ability and reason to conduct research related to cooperatives and to 
agricultural marketing.
    In addition to the statutes' requirement that the funds go to a 
State agency, RDA is proposing limiting it to those Agencies that have 
financial, legal, administrative and actual capacity to conduct the 
research. The necessity of fiscal responsibility requires RDA to only 
provide cooperative funds to those Agencies that also have the fiscal 
and administrative ability to assure that the funds are expended 
according to the purposes of the Agricultural Marketing Act of 1946.
    Further, the Agricultural Marketing Act of 1946 requires that no 
funds shall be allotted for any fiscal year to any State agency in 
excess of the amount which such State agency makes available out of its 
own funds for such research. RDA has interpreted this to mean the use 
of cooperative agreements with the States agency providing at least 
half of the funds for conducting the research on cooperatives. In 
addition, RDA is limiting the funds to use by Agencies that can legally 
and administratively conduct business with cooperative agreements since 
it has determined that cooperative agreements are the appropriate 
instrument to use for these funds.
    The research proposals will be evaluated by a panel of Agency 
technical experts to determine the proposals that are likely to result 
in the most needed research that can be done with the limited funds 
appropriated. The evaluation panel will make recommendations to the 
Assistant Administrator for Cooperative Services, RDA who will have the 
final decision on awarding the cooperative agreements. The panel of 
Agency technical experts are necessary to evaluate what is expected to 
be a variety of very technical proposals dealing with agricultural 
marketing research and cooperatives. An outside peer review panel is 
not being proposed because the Agency has the expertise to evaluate 
such proposals, the outside panel would be extremely costly relative to 
the small amount of total funds available, and the need to evaluate the 
proposals in a timely manner.
    To assure a consistency in the evaluation process the proposed rule 
establishes a set of evaluation criteria (Sec. 4285.70) to assure the 
research is consistent with the intent of the program and is worth the 
funds that are to be spent on the project. The heaviest weight of the 
objective criteria is placed on assuring that the research is based on 
significant problems to assure that funds are not expended on 
insignificant items nor in other fiscally irresponsible ways. The 
second highest weight of the criteria is placed on the adequacy, 
soundness, and appropriateness of the proposed approach to the research 
in order that research is conducted that will be meaningful. The 
relatively low weight put on the criteria of the feasibility and 
probability of success of solving the problem was done because nearly 
all projects are expected to be feasible and it is extremely difficult 
to determine the likely success or failure of projects, but at the same 
time the Agency's technical experience can be used to predict 
approaches or problems that are not likely to give the desired results. 
The relatively heavy weight placed on the personnel that are conducting 
the research was done to assure that the best equipped and qualified to 
conduct the research are selected as required by the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1623 (b)). Although cost is a 
significant factor, no specific weight is assigned to the cost since 
cost must be measured relative to the complexity of the problem, the 
likely outcome of the project, the significance of the problem 
identified, and relative to other proposals and the total appropriated 
funds.
    Upon recommendations of the technical panel, the Assistant 
Administrator for Cooperative Services will determine which cooperative 
agreements to fund. The Assistant Administrator for Cooperative 
Services will also determine the reasonable length of time in which the 
project should be completed. To assure timely research results the 
agreements will be limited to three years from the time of the award. 
However, if justified, that time can be renewed, but the total time 
would be limited to 4 fiscal years so as to allow orderly closing of 
the financial records of the Federal Government.
    The accounting for the funds awarded for the cooperative agreement 
will be subject to the normal rules for cooperative agreements within 
USDA as given in part 3016 of this title. The proposed application 
format is used to assure that sufficient information is obtained to 
complete a cooperative agreement as given in part 3016 of this title. 
In addition, the application format is similar to that used by 
Cooperative State Research Service, USDA for their competitive grants 
programs as given in Part 3200 of this title, since that format appears 
to be very effective in helping assure projects that will be carried 
out in a fiscally responsible manner.
    The definition of agricultural products given below is repeated 
from the Agricultural Marketing Act of 1946 (7 U.S.C. 1623 (b)). The 
cooperative agreement instrument is as defined in the Implementation of 
Federal Grant and Cooperative Agreement Act of 1977 (Pub.L. 95-224). 
The proposed classification of the cooperative agreements as new, 
renewal, or supplemental are used to facilitate administering the 
agreements. The authorized and prohibited uses of cooperative 
agreements funds given below (Sec. 4285.25 and Sec. 4285.46) are to 
clarify the uses of funds as given in the Agricultural Marketing Act of 
1946 (7 U.S.C. 1623 (b)) and follow the guidelines as used by the AMS 
FSMIP. Because research requires doing things that may not be known 
before the agreement is signed, the proposed rule allows for changes in 
the cooperative agreement. To assure the cooperative agreement stays in 
line with the intent of the program, however, all substantive changes 
are required to be approved by the Assistant Administrator for 
Cooperative Services.

List of Subjects in 7 CFR Part 4285

    Agricultural commodities, Agricultural research, Cooperatives, 
Reporting and recordkeeping requirements.

    For the reasons set out in the preamble, 7 CFR Ch. XLII is proposed 
to be amended by adding part 4285 to read as follows:

PART 4285--COOPERATIVE AGREEMENTS

Subpart A--Federal-State Research on Cooperatives Program
Sec.
4285.1  Objective.
4285.2  Cooperative agreement purposes.
4285.3  Definitions.
4285.4-4285.23  [Reserved]
4285.24  Eligibility.
4285.25  Authorized use of cooperative agreement funds.
4285.26-4285.45  [Reserved]
4285.46  Prohibited use of cooperative agreement funds.
4285.47  Limitations.
4285.48-4285.57  [Reserved]
4285.58  How to apply for cooperative agreement funds.
4285.59-4285.68  [Reserved]
4285.69  Evaluation and disposition of applications.
4285.70  Evaluation criteria.
4285.71-4285.80  [Reserved]
4285.81  Cooperative agreement awards.
4285.82  Use of funds; changes.
4285.83-4285.92  [Reserved]
4285.93  Other Federal statutes and regulations that apply.
4285.94  Other conditions.
4285.95-4285.100  [Reserved]

    Authority: 7 U.S.C. 1623, 2201; Pub. L. 103-111, 107 Stat. 1046; 
Pub. L. 103-211, 108 Stat. 3; USDA Secretary's Memorandum 1020-39, 
dated September 30, 1993.

Subpart A--Federal-State Research on Cooperatives Program


Sec. 4285.1  Objective.

    This subpart sets forth the policies and procedures and delegates 
authority for providing Federal-State Research on Cooperatives 
cooperative agreement funds to finance programs of research on 
cooperatives as authorized under Section 204 (b) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1623 (b)). The primary purpose of this 
matching fund program, via cooperative agreements, is to encourage 
State Departments of Agriculture and State Agricultural Experiment 
Stations in conducting research related to agricultural cooperatives.


Sec. 4285.2  Cooperative agreement purposes.

    Rural Development Administration (RDA) may enter into a cooperative 
agreement with a State agency to provide funds to the State agency to:
    (a) Conduct marketing research related to agricultural 
cooperatives.
    (b) Assist other organizations in conducting marketing research 
related to agricultural cooperatives.


Sec. 4285.3  Definitions.

    As used in this part:
    Agreement period. The total period of time approved by the 
Assistant Administrator for Cooperative Services for conducting the 
proposed project as outlined in an approved application. The time 
period is normally no more than 3 years, renewable for cause not to 
exceed a total of 4 fiscal years.
    Agricultural products. Agricultural products include agricultural, 
horticultural, viticultural, and dairy products, livestock and poultry, 
bees, forest products, fish and shellfish, and any products thereof, 
including processed or manufactured products, and any and all products 
raised or produced on farms and any processed or manufactured product 
thereof.
    Assistant Administrator for Cooperative Services. The Assistant 
Administrator for Cooperative Services, Rural Development 
Administration, USDA or any authorized delegate.
    Awarding official. The Assistant Administrator for Cooperative 
Services or authorized delegate.
    Cooperative Agreement. A legal instrument reflecting a relationship 
between the United States Government and a State where:
    (1) The principal purpose of the relationship is the transfer of 
money, property, services, or anything of value to the State agency to 
carry out research related to cooperatives; and
    (2) Substantial involvement is anticipated between RDA, acting for 
the Federal Government, and the State or other recipient during 
performance of the research in the agreement.
    Cooperator. The State agency designated in the cooperative 
agreement award document as the responsible legal entity to whom a 
cooperative agreement is awarded under this part.
    Department. The U.S. Department of Agriculture.
    Methodology. The research approach to be followed to carry out the 
project.
    Principal investigator. A single individual who is responsible for 
the scientific and technical direction of the project, as designated by 
the cooperator in the cooperative agreement application and approved by 
the Assistant Administrator for Cooperative Services.
    Project. The particular activity within the scope of one or more of 
the research program areas identified in the annual program 
solicitation that is supported by a cooperative agreement under this 
part.
    State agencies. State agencies include, among others, State 
Agricultural Experiment Stations and State Departments of Agriculture 
in the 50 States, territories or possessions of the United States and 
other appropriate State agencies. Final determination of whether 
certain 1890 or 1862 Land Grant institutions qualify as state agencies 
will be determined on a case-by-case basis by the Office of the General 
Counsel (OGC), USDA.


Secs. 4285.4-4285.23  [Reserved]


Sec. 4285.24  Eligibility.

    To enter into a cooperative agreement for these funds, the 
applicant must:
    (a) Be a State Agency as defined in Sec. 4285.3;
    (b) Have the financial, legal, administrative, and actual capacity 
to assume and carry out the responsibilities imposed by the Agreement. 
To meet the requirement of actual capacity it must either:
    (1) Have necessary background and experience with proven ability to 
perform responsibly in the field of economic, business management, or 
other needed research area; or
    (2) Have the necessary administrative and supervisory controls in 
place to assure an agreed upon contracting organization has the proven 
ability to perform responsibly in the field of economic, business 
management, or other needed research area;
    (c) Legally obligate itself to administer cooperative agreement 
funds, provide adequate accounting of the expenditure of such funds, 
and comply with the cooperative agreement;
    (d) Provide at least 50 percent of the funds necessary to conduct 
the research from non-federal funds; and
    (e) Agree to conduct proposed research related to cooperatives and 
agricultural marketing.


Sec. 4285.25  Authorized use of cooperative agreement funds.

    Funds received for research under cooperative agreements in this 
program shall only be used for:
    (a) Payment of salaries and necessary employee benefits of 
personnel as agreed upon in the Cooperative Agreement. Included are 
salaries and benefits of State employees assigned full-time to one or 
more projects, or the percent of the salaries and benefits related to 
project work for State employees assigned part-time to research on one 
or more projects. Salaries and benefits include basic salary, other 
compensation such as holiday pay, sick or annual leave, and personnel 
benefits (quarters allowance, payments to other funds such as 
employees' life insurance, health benefits, retirement, Federal 
Insurance Contributions Act (FICA), accident compensation, and similar 
payments). For any of the benefit items when the State usually pays the 
employer share, Federal funds may be used to pay the proportionate 
share of such employer contributions.
    (b) Payment of necessary and reasonable office expenses such as 
office rental, office utilities, and office equipment rental. The 
purchase of office equipment is permissible when the cooperator 
determines it to be more economical than renting. However, as a general 
rule, these types of expenses would be classified as indirect costs in 
multiple funded organizations and would not be an allowable expense. 
Planned purchases of equipment costing more than $200 per unit must be 
approved by RDA. Equipment purchased becomes State property pursuant to 
the cooperative agreement.
    (c) Payment of necessary and reasonable costs of printing 
publications of research project results. However, all such 
publications should show the RDA as cooperator in the project and bear 
the following statement: ``State funds for this project (publication) 
were matched with Federal funds under the Federal-State Research on 
Cooperatives Program of the U.S. Department of Agriculture, Rural 
Development Administration, Cooperative Services, as provided by the 
Agricultural Marketing Act of 1946 and (appropriate) fiscal year 
appropriations.''
    (d) Purchase of office supplies (such as paper, pens, pencils, and 
trade magazines) and postage needed for project activities.
    (e) Payment of necessary and reasonable travel expenses.


Secs. 4285.26-4285.45  [Reserved]


Sec. 4285.46  Prohibited use of cooperative agreement funds.

    (a) The Agricultural Marketing Act prohibits the use of Federal 
funds to pay for newspaper or periodical space and radio and television 
time, either directly to the media or indirectly though an advertising 
agency or other firm. County and State fair exhibits, as well as 
commodity months and weeks, are also excluded as the research on 
cooperatives program activities.
    (b) Federal funds cannot be used to purchase products or samples of 
products to give away to the public.
    (c) Federal program funds cannot be used to purchase:
    (1) Promotional pieces such as point-of-sale materials, promotional 
kits, billboard space and signs, streamers, automobile stickers, table 
tents, and placemats; or
    (2) Promotion items of a personal gift nature.
    (d) Cooperative agreement funds cannot be used to conduct general 
publicity or information programs designed to build the image of the 
State's agriculture or of a particular State Department of Agriculture 
or Agricultural Experiment Station.
    (e) Project funds cannot be used to pay for the salary and travel 
of employees of cooperatives, trade associations, commodity groups, and 
other industry organizations, or of State personnel while engaged in 
managing market orders, cooperatives, or other group endeavors.
    (f) Commissioners, Directors, and Secretaries of State Departments 
of Agriculture, Agricultural Experiment Stations, and other State 
agencies cannot charge their salaries and travel to project funds, with 
the exception of travel to workshops or conferences devoted to the 
Federal-State Research On Cooperatives Program.
    (g) Funds made available for this program shall not be subject to 
reduction for indirect costs or for tuition remission.


Sec. 4285.47  Limitations.

    The amount of funds available for the cooperative agreements under 
this program is limited to the amount appropriated for the fiscal year.


Secs. 4285.48-4285.57  [Reserved]


Sec. 4285.58  How to apply for cooperative agreement funds.

    (a) A program solicitation will be prepared and announced through 
publications such as the Federal Register, professional trade journals, 
agency or program handbooks, and/or any other appropriate means, as 
early as practicable each fiscal year in which funds are appropriated 
for the program.
    (b) The annual program solicitation will contain information 
sufficient to enable all eligible applicants to prepare proposals 
including:
    (1) Desired research topics. The FY-94 solicitation will encourage 
studies:
    (i) To improve the efficiency and effectiveness of marketing of 
agricultural cooperatives;
    (ii) To measure the impact of rural cooperatives on the local 
economies;
    (iii) That help identify opportunities to develop cooperatives for 
new or alternative market uses of agricultural products;
    (iv) That help identify ways to develop agricultural marketing 
cooperatives; and,
    (v) Addressing other cooperative marketing objectives;
    (2) Explanation of eligibility requirements as outlined in 
Sec. 4285.24;
    (3) The notice of availability of application forms and 
instructions for submission of applications;
    (4) The notice of deadline dates for postmarking proposal packages;
    (c) Executive Order 12372. The cooperative agreements for research 
related to cooperatives are subject to the provisions of Executive 
Order 12372 (3 CFR, 1982 Comp., p. 197), which allows States to review 
all its applications for funds and/or actions under specific Federal 
programs. Most of the States have designated a ``Single Point of 
Contact'' within the State for the listed programs and have established 
a procedure to handle applications. If the State has adopted this 
procedure, Section 16 of the Standard Form 424, ``Application for 
Federal Assistance,'' needs to be completed when applying for the 
cooperative agreement funds under this part.
    (d) Format for proposals. Unless otherwise indicated by the 
Department in the annual program solicitation, the following 
information must be submitted for the preparation of proposals under 
this program:
    (1) Form SF-424, ``Application for Federal Assistance.''
    (2) Form SF-424A, ``Budget Information - Non-Construction 
Programs.''
    (3) Form SF-424B, ``Assurances - Non-Construction Programs.''
    (4) Statement of Work. The application must include a narrative 
statement describing the nature of the proposed research. The Statement 
of Work must include at least the following:
    (i) Title of the Project. The title of the proposal must be brief, 
yet represent the major thrust of the project.
    (ii) Project Leaders. List the name(s) of the principal 
investigator(s). Minor collaborators or consultants should be so 
designated and not listed as principal investigators.
    (iii) Need for the Project. A concisely worded rationale behind the 
proposed research must be presented. The need for the proposed research 
must be clearly related to marketing and to the needs of agricultural 
cooperatives.
    (iv) Objectives of the project. The specific description of the 
overall project goal(s) and supporting objectives must be presented.
    (v) Procedures for conducting the research. The hypotheses or 
questions being asked and the methodology being applied to the proposed 
project must be described. A description of any subcontracting 
arrangements that will be used for conducting the research must be 
included. A tentative schedule for conducting major steps involved in 
the investigation must also be included.
    (vi) The expected output of the project. A description of how the 
results of the research will be disseminated should be presented. 
Responsibility for publishing any research reports or other types of 
output should also be identified.
    (5) Collaborative arrangements. If the nature of the proposed 
project requires collaboration or subcontractual arrangements with 
other research scientists, corporations, organizations, agencies, or 
entities, the applicant must identify the collaborator(s) and provide a 
full explanation of the nature of the collaboration. Evidence (i.e., 
letters of intent) should be provided to assure reviewers that the 
collaborators involved have agreed to render this service. In addition, 
the proposal must indicate whether or not such a collaborative 
arrangement(s) has the potential for conflict(s) of interest.
    (6) Personnel support. To assist reviewers in assessing the 
competence and experience of the proposed project staff, key personnel 
who will be involved in the proposed project must be identified 
clearly. For each principal investigator involved, and for all senior 
associates and other professional personnel who expect to work on the 
project, whether or not funds are sought for their support, the 
following must be included:
    (i) An estimate of the time commitments necessary;
    (ii) Curriculum Vitae. The curriculum vitae should be limited to a 
presentation of academic and research credentials, e.g., educational, 
employment and professional history, and honors and awards. Unless 
pertinent to the project, it should not include meetings attended, 
seminars given, or personal data such as birth date, martial status, or 
community activities; and
    (iii) Publication List(s). A chronological list of all publications 
in refereed journals during the past five years, including those in 
press, must be provided for each professional project member for whom a 
curriculum vitae is provided. Also list other non-refereed technical 
publications that have relevance to the proposed project. Authors 
should be listed in the same order as they appear on each paper cited, 
along with the title and complete reference as these usually appear in 
journals.


Secs. 4285.59-4285.68  [Reserved]


Sec. 4285.69  Evaluation and disposition of applications.

    (a) Evaluation. (1) All proposals received from eligible applicants 
and postmarked in accordance with deadlines established in the annual 
program solicitation shall be evaluated by the Assistant Administrator 
for Cooperative Services through an RDA staff panel. The Assistant 
Administrator for Cooperative Services will select the evaluation panel 
from staff determined to be highly qualified in the subject matter 
areas that were emphasized in the current year's solicitation and from 
those with no potential conflict of interest with the applicants.
    (2) Prior to technical examination, a preliminary review will be 
made for responsiveness to the program solicitation (e.g., relationship 
of proposal to research topic(s) listed in solicitation). Proposals 
that do not fall within the guidelines as stated in the program 
solicitation will be eliminated from competition and will be returned 
to the applicant.
    (3) Proposals will be ranked based on evaluation criteria 
established in Sec. 4285.70 and financial support levels will be 
recommended to the Assistant Administrator for Cooperative Services by 
the panel within the limitation of the total funding available in the 
fiscal year. The purpose of these evaluations is to provide information 
upon which the Assistant Administrator for Cooperative Services may 
make informed judgements in selecting proposals. Such recommendations 
are advisory only and are not binding on the awarding official of RDA. 
To ensure a comprehensive evaluation, all applications should be 
written with the care and thoroughness accorded papers for publication.
    (b) Disposition. (1) On the basis of the Assistant Administrator 
for Cooperative Services's evaluation of an application in accordance 
with paragraph (a) of this section, the Assistant Administrator for 
Cooperative Services will either:
    (i) Approve support using currently available funds;
    (ii) Defer support due to lack of funds or need for further 
evaluation; or
    (iii) Disapprove support for the proposed project in whole or in 
part.
    (2) With respect to any approved project, the Assistant 
Administrator for Cooperative Services will determine the project 
period during which the project may be funded.
    (3) Any deferral or disapproval of an application will not preclude 
its reconsideration or reapplication during subsequent fiscal years. 
However, applicants must reapply if reconsideration is desired.
    (4) The Assistant Administrator for Cooperative Services will not 
make a cooperative agreement funding award, based upon an application 
covered by this part, unless the application has been properly reviewed 
in accordance with the provisions of this part and unless said 
reviewers have made recommendations concerning the scientific merit and 
relevance to the program of such application.


Sec. 4285.70  Evaluation criteria.

    (a) In evaluating the proposal, the RDA staff review panel and the 
awarding official will take into account the degree to which the 
proposal demonstrates the following:
    (1) Focus on a practical solution to a significant problem 
involving one or more of the following on a cooperative business basis: 
the preparation for market, processing, packaging, handling, storing, 
transporting, distributing, or marketing of agricultural products. 
(35%)
    (2) Adequacy, soundness, and appropriateness of the proposed 
approach to solve the identified problem. (30%)
    (3) Feasibility and probability of success of project solving the 
problem. (10%)
    (4) Qualifications, experience in related work, competence, and 
availability of project personnel to direct and carry out the project. 
(25%)
    (b) In addition, the cost relative to the expected research results 
will be considered in determining the awarding of the agreements.


Secs. 4285.71-4285.80  [Reserved]


Sec. 4285.81  Cooperative agreement awards.

    (a) General. Within the limit of funds available for such purpose, 
the awarding official shall make awards for cooperative agreements to 
those applicants whose proposals are judged most meritorious in the 
announced program areas under the evaluation criteria and procedures 
set forth in this part. The date specified by the Assistant 
Administrator for Cooperative Services as the beginning of the project 
period shall be no later than September 30 of the Federal fiscal year 
in which the project is approved and funds are appropriated for such 
purpose, unless otherwise permitted by law. All funds awarded under 
this part shall be expended solely in accordance with the methods 
identified in approved application and budget, the regulations of this 
part, the terms and conditions of the award, the applicable Federal 
cost principles, and the Department's ``Uniform Federal Assistance 
Regulations'' (part 3015 of this title) and the Department's ``Uniform 
Administrative Requirements for Grants and Cooperative Agreements to 
State and Local Governments'' (part 3016 of this title).
    (b) Cooperative agreement award document and notice of award--(1) 
Cooperative agreement award document. The award document shall include 
at a minimum the following:
    (i) Legal name and address of performing organization or 
institution to whom the Assistant Administrator for Cooperative 
Services has competitively awarded funds under the terms of this part;
    (ii) Title of project;
    (iii) Name(s) and address(es) of principal investigator(s) chosen 
to direct and control approved activities;
    (iv) Identifying cooperative agreement number assigned by RDA;
    (v) Project period, specifying the amount of time the Agency 
intends to support the project without requiring recompetition for 
funds;
    (vi) Total amount of Agency financial assistance approved by the 
Assistant Administrator for Cooperative Services during the project 
period;
    (vii) Legal authority(ies) under which the cooperative agreement is 
awarded;
    (viii) Approved budget plan for categorizing allocable project 
funds to accomplish the stated purpose of the cooperative agreement 
award; and
    (ix) Other information or provisions deemed necessary by RDA to 
carry out its agreement activities or to accomplish the purpose of a 
particular cooperative agreement.
    (2) Notice of award. The notice of award of funds for the 
cooperative agreement will be in the form of a letter providing 
pertinent instructions or information to the cooperator.
    (c) Types of cooperative agreement instruments. The types of 
cooperative agreements shall be as follows:
    (1) New agreement. This is an agreement instrument by which RDA 
agrees to support a specified level of effort for a project not 
supported previously under this program. This type of agreement is 
approved on the basis of an RDA Staff evaluation review and 
recommendation.
    (2) Renewal agreement. This is an agreement instrument by which RDA 
agrees to provide additional funding for a project beyond the period 
approved in an original or amended agreement, provided that the 
cumulative period does not exceed the statutory limitation. When a 
renewal application is submitted, it must include a summary of progress 
to date from the previous agreement period. A renewal agreement shall 
be based upon new application, de novo review and staff evaluation, new 
recommendation and approval, and a new award instrument.
    (3) Supplemental agreement. This is an instrument by which RDA 
agrees to provide small amounts of additional funding under a new or 
renewal cooperative agreement as specified in paragraphs (c)(1) and 
(c)(2) of this section and may involve a short-term (usually one year 
or less) extension of the project period beyond that approved in an 
original or amended award, but in no case may the cumulative period for 
the project exceed the statutory limitation. A supplement is awarded 
only if required to assure adequate completion of the original scope of 
work and if there is sufficient justification to warrant such action. A 
request of this nature will not require additional review.
    (d) Obligation of the Federal Government. The approval of any 
application or the award of any funds for a cooperative agreement shall 
not commit nor obligate the United States in any way to make any 
renewal, supplemental, continuation, or other award with respect to any 
approved application or portion of an approved application.
    (e) Obligation of the cooperator. The cooperator shall be 
responsible for:
    (1) Making a brief quarterly progress reports at the end of each 
December, March, June and September to the FSROC program staff for the 
duration of the research project;
    (2) Presenting a final administrative report on the project at the 
end of the research project; and
    (3) Preparing and publishing a report(s) of research findings for 
dissemination to interested producers, cooperatives, and agencies. 
Include recognition to financial and other assistance received from the 
FSROC program.


Sec. 4285.82  Use of funds; changes.

    (a) Delegation of fiscal responsibility. The cooperator may not, in 
whole or in part, delegate or transfer to another person, institution, 
or organization the responsibility for use or expenditure of 
cooperative agreement funds.
    (b) Change in project plans. (1) The permissible changes by the 
cooperator, principal investigator(s), or other key project personnel 
in the approved cooperative agreement shall be limited to changes in 
methodology, techniques, or other aspects of the project to expedite 
achievement of the project's approved goals. If the cooperator and/or 
the principal investigator(s) is uncertain whether a particular change 
complies with this provision, the question must be referred to the 
Assistant Administrator for Cooperative Services for a final 
determination.
    (2) Changes in approved goals, or objectives, shall be requested by 
cooperator and approved in writing by the Assistant Administrator for 
Cooperative Services, or authorized delegate, prior to effecting such 
changes. Normally, no requests for such changes outside the scope of 
the original approved project will be approved.
    (3) Changes in approved project leadership or the replacement or 
realignment of other key project personnel shall be requested by the 
cooperator and approved in writing by the Assistant Administrator for 
Cooperative Services, or authorized delegate, prior to effecting such 
changes.
    (4) Transfers of actual performance of the substantive programmatic 
work in whole or in part and provisions for payment of funds, whether 
or not Federal funds are involved, shall be requested by the cooperator 
and approved in writing by the Assistant Administrator for Cooperative 
Services, or authorized delegate, prior to effecting such changes, 
except as may be allowed in the terms and conditions of a cooperative 
agreement award.
    (c) Changes in project period. The project period determined 
pursuant to Sec. 4285.81(b) may be extended by the Assistant 
Administrator for Cooperative Services without additional financial 
support, for such additional period(s) as the Assistant Administrator 
for Cooperative Services determines may be necessary to complete, or 
fulfill the purposes of, an approved project. Any extension, when 
combined with the originally approved or amended project period, shall 
not exceed four (4) years and shall be further conditioned upon prior 
request by the cooperator and approval in writing by the Assistant 
Administrator for Cooperative Services, or authorized delegate, except 
as may be allowed in the terms and conditions of a cooperative 
agreement award.
    (d) Changes in approved budget. The terms and conditions of a 
cooperative agreement will prescribe circumstances under which written 
Agency approval must be requested and obtained prior to instituting 
changes in an approved budget.


Secs. 4285.83-4285.92  [Reserved]


Sec. 4285.93  Other Federal statutes and regulations that apply.

    Several other Federal statutes and regulations apply to cooperative 
agreement proposals considered for review or to agreements awarded 
under this part. These include but are not limited to:
    (a) 7 CFR Part 1, Subpart A--USDA implementation of the Freedom of 
Information Act;
    (b) 7 CFR Part 3--USDA implementation of OMB Circular A-129 
regarding debt collection;
    (c) 7 CFR Part 15, Subpart A--USDA implementation of title VI of 
the Civil Rights Act of 1964 in order to assure nondiscrimination;
    (d) 7 CFR Part 1473--National Agricultural, Research, Extension, 
and Teaching Policy Act Amendments of 1981 if the project involves a 
college or university;
    (e) 7 CFR Part 3015--USDA Uniform Federal Assistance Regulations 
implementing OMB directives (i.e., Circular Nos. A-110, A-21, and A-
122) and incorporating provisions of 31 U.S.C. 6301-6308 (formerly, the 
Federal Grant and Cooperative Agreement Act of 1977, Pub. L. 95-224, 92 
Stat. 3), as well as general policy requirements applicable to 
recipients of Departmental financial assistance;
    (f) 7 CFR Part 3016--USDA Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments;
    (g) 7 CFR Part 3017--USDA implementation of Governmentwide 
Debarment and Suspension (Nonprocurement) and Governmentwide 
Requirements for Drug-Free Workplace (Grants);
    (h) 7 CFR Part 3018--USDA implementation of New Restrictions on 
Lobbying. Imposes new prohibitions and requirements for disclosure and 
certification related to lobbying on recipients of Federal contracts, 
grants, cooperative agreements, and loans;
    (i) 7 CFR Part 3051--Audits of Institutions of Higher Education and 
Other Nonprofit Institutions;
    (j) 29 U.S.C. 794, section 504--Rehabilitation Act of 1973, and 7 
CFR Part 15B prohibiting discrimination based upon physical or mental 
handicap in Federally assisted programs;
    (k) 35 U.S.C. 200 et seq.--Bayh-Dole Act, controlling allocation of 
rights to inventions made by employees of small business firms and 
domestic nonprofit organizations, including universities, in Federally 
assisted programs (implementing regulations are contained in 37 CFR 
part 401).


Sec. 4285.94  Other conditions.

    Post-award requirements. Upon awarding the cooperative agreement, 
the post-award requirements of subparts C and D of part 3016 of this 
title apply.


Secs. 4285.95--4285.100  [Reserved]

    Dated: March 28, 1994.
Bob J. Nash,
Under Secretary for Small Community and Rural Development.
[FR Doc. 94-10883 Filed 5-6-94; 8:45 am]
BILLING CODE 3410-07-W