[Federal Register Volume 59, Number 103 (Tuesday, May 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13184]


[[Page Unknown]]

[Federal Register: May 31, 1994]


                                                   VOL. 59, NO. 103

                                              Tuesday, May 31, 1994

DEPARTMENT OF AGRICULTURE

Alternative Agricultural Research and Commercialization (AARC) Center

 

AARC Center Request for Proposals

AGENCY: Alternative Agricultural Research and Commercialization (AARC) 
Center.

ACTION: AARC Center request for proposals.

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Program Description

Purpose

    The Alternative Agricultural Research and Commercialization (AARC) 
Center is requesting proposals to use agricultural (traditional and new 
crops, animal by-products or forestry) materials in industrial products 
or processes. The authority for the Program is contained in sections 
1660 and 1661 of the Food, Agricultural, Conservation, and Trade Act of 
1990, Public Law No. 101-624, 7 U.S..C. 5904. Potential funding for 
proposals can be either under research and development assistance or 
the commercialization assistance provisions using the Cooperative 
Agreement Program (Program) to assist emerging industrial products/
processes involving the use of agricultural materials in non-food, non-
feed, non-traditional fiber products or processes. The Board of 
Directors reserves the right to use only certain types of authorized 
assistance. Successful projects are expected to repay the AARC Center 
Revolving Fund through negotiated arrangements. The Program is 
administered by the AARC Center, which is an independent entity within 
the U.S. Department of Agriculture.
    The objectives of the AARC Center are:
     To search for new non-food, non-feed, non-traditional 
fiber products that may be produced from agricultural commodities and 
for processes to produce such products.
     To conduct product and co-product/process development and 
demonstration projects, as well as provide commercialization assistance 
for industrial products from agricultural and forestry materials.
     To encourage cooperation development and marketing efforts 
among manufacturers, private and government laboratories, universities, 
and financiers to assist in bridging the gap between research results 
and marketable, competitive products and processes.
     To collect and disseminate information about 
commercialization projects that use agricultural or forestry materials 
and industrial products derived therefrom.
    Under the Program, the AARC Center will award competitive 
cooperative agreements to support primarily pre-commercial tasks but 
also targeted research and development of new industrial products or 
processes derived from agricultural or forestry materials. All other 
things equal, the nearer to commercialization a product or process is 
the higher the likelihood of funding by the AARC Center.
    The AARC Center will accept either pre-proposals or full proposals. 
Pre-proposals will be evaluated to determine if an idea has sufficient 
merit to warrant a full proposal including if it meets the AARC 
Center's mission, and to provide suggestions for improvement. Full 
proposals will require more time to complete and will be evaluated to 
determine if they warrant funding. The AARC Center may ask applicants 
submitting either pre-proposals or full proposals to make an oral 
presentation. All proposals will be evaluated by external reviewers, as 
well as by the AARC Center staff, before the proposals along with 
review comments are provided to the Board of Directors. The Board makes 
final funding decisions.

Available Funding

    This request for proposals is being announced subject to funding 
from Congress for Fiscal Year 1995. The Administration's budget request 
to Congress was $9 million for the AARC Center.
    The AARC Center Board expects applicants to, at minimum, match the 
dollars requested from the AARC Center. A preference may be given to 
projects for which the ration of AARC Center funds to non-Center funds 
would be the lowest.

Eligibility

    Proposals are invited from any private firm, individual, public or 
private educational or research institution or organization, Federal 
agency, cooperative, or non-profit organization. Cooperative projects 
involving combinations of the above organizations, especially with 
private sector leadership, are strongly encouraged. Since this is 
basically a program to commercialize new products, and since repayment 
is expected, it is much more likely that awards will be given to 
private firms. Small business entrepreneurs are preferred.

Program Emphasis

    As determined by the AARC Center Board from a series of public 
hearings, Congressional Hearings, workshops, and experience from the 
initial two rounds of proposals, each proposal should focus on 
products/ processing using at least one of the following agricultural 
or forestry material categories:

Starch/Carbohydrates
Fats and Oils
Fibers
Forest Materials
Animal By-Products
Other Plant Materials used as pharmaceuticals, fine chemicals, 
encapsulation agents, etc.

    The AARC Center Board is in the process of funding about 20 
projects from the request for pre-proposals and full proposals that 
appeared in the Federal Register on June 8, 1993. Projects include use 
of a broad range of agricultural and forestry materials such as: 
Soybean oil, cotton lint, peanut hulls, corn husk, wheat straw, 
milkweed, kenaf, castor oil, rapeseed, cuphea, crambe, ethanol, 
compost, biomass, and plant proteins. Examples of products include: 
Biocontrol agents, medium-density fiberboard from straw, plypole, food 
packaging, bonded paper from kenaf, oil adsorbents, fillers and yarn, 
spinning fibers, highway signposts and railroad ties, building 
composites, heating and electricity, potting mixes, diesel fuel 
replacements, lubricants, coatings, cosmetics, detergents, personal 
care products, and cat litter.

Evaluation Criteria

    The AARC Center's primary interest, in this request for 
prepoposals/proposals, is in providing assistance in pre-commercial 
activities to move new industrial products from agricultural and 
forestry materials into the marketplace. The AARC Center Board seeks 
projects that will have market impact. This includes expanding use of 
agricultural or forestry materials in industrial products especially 
those that expand markets for farmers, create jobs, spur rural 
development, provide environmental and/or conservation benefits, and 
improve trade. Emphasis will be given to those proposals whose products 
are closest to commercialization and have positive impact on rural 
employment and economic activity.
    Proposals and pre-proposals will be evaluated on four primary 
criteria: Management team capability, business and marketing soundness, 
technical factors, and expected time and magnitude of impacts if 
successful. Examples of types of information that will enter the 
decision process on each of the primary categories of criteria include:

Management: Capability of the management team.
    Amount of matching funds (cash) committed.
    Awareness of the financial resources needed to successfully 
market the product.
    Clear identification of project milestones.
    Private sector leadership to commercialize the product or 
process.
Business: Potential profitability.
    Clear identification of customers.
    Structure of the market in terms of size, number, leading 
competitors, and reaction of competitors to a new product.
    Amount and nature of the value added to the agricultural or 
forestry material.
    Ability to replicate in other parts of the country.
    Key issues and government policies or regulations that might 
impact success.
    Applicant's ability and willingness to repay the AARC Center for 
the risk investment made by the American taxpayers.
Technical: Relation to previous work.
    Technical requirements of the product--industry standards or 
guidelines.
    Technical and market testing needed.
    Government approvals or permits required.
    Major technical hindrances.
    Innovative techniques and patents.
    Ability to achieve technical claims.
    Present stage of development.
Impacts: Volume of agricultural or forestry material used.
    Number and quality of jobs (especially in distressed rural 
areas) expected to be created--type, rural/urban, timeframe.
    Potential positive and negative environmental impacts from 
production to consumer disposal of product.
    Proposed product's implications for helping improve farm income, 
especially the family farm.
    Resource conservation effects such as replacement of stock 
resources, crop diversification, soil erosion, water use, etc.
    Estimated impact on export/import trade balance, commodity 
support programs and rural economic activity.

Other Considerations

    With respect to projects carried out with private researchers or 
commercial companies, the enabling legislation provides that 
information submitted by applicants incident thereto will be kept 
confidential. Project information including applications is 
specifically excluded from release under the Freedom of Information 
Act, except with the approval of the person providing the information 
or in a judicial or administrative proceeding in which such information 
is subject to protective order. However, the information is subject to 
protective order. However, the information will be reviewed by three 
reviewers who will be held to confidentiality. Board members are 
required to exclude themselves from consideration of a proposal where a 
conflict of interest exists.
    Intellectual property rights, such as patents and licenses, shall 
remain with the owner unless other arrangements are negotiated as part 
of the agreement. Inventions made under an award under this Program 
shall be owned by the awardee in accordance with 35 U.S.C. 200-204 and 
37 CFR part 401.
    No agreement may be entered into under the program for the 
acquisition or construction of a building or facility.
    All applicants must file a declaration of compliance with 31 U.S.C. 
1352 regarding limitation on the use of appropriated funds to influence 
certain Federal contracting and financial transactions either prior to 
or simultaneous with the submission.
    Due to limited funds, the AARC Center may not be able to fund all 
projects meriting support, and awards will be based on merit using the 
review evaluations and the Board's judgement.
    Applicants who submitted a proposal or pre-proposal previously must 
reapply to be considered for Fiscal Year 1995 funding.

Future Proposals

    In the future and until further notice, the AARC Center Board will 
accept proposals or pre-proposals at any time on AARC Center forms. The 
Board will meet at least twice a year to select proposals for funding.

Submissions

    To be eligible for this round of AARC Center Board decisions, both 
pre-proposals and full proposals must be received at the AARC Center 
office by August 31, 1994. One of the following addresses should be 
used, as applicable:

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         Regular U.S. mail                    Overnight delivery        
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USDA AARC Center, Ag Box 0400, 14th  USDA AARC Center, 300 12th Street  
 & Independence Avenue SW., Cotton    SW., Cotton Annex, 2nd flr Mez,   
 Annex, 2nd flr Mez, Washington, DC   Washington, DC 20250-0400.        
 20250-0400.                                                            
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For More Information

    Proposals must be submitted on forms provided by the AARC Center--
either pre-proposals or full proposals. Contact the AARC Center by 
letter using the addresses above or fax number 202-401-6068 to receive 
a packet containing the instructions and forms.
    Specific questions should be directed to Patricia Dunn: Phone 202-
401-4860.

    Done at Washington, DC, on May 25, 1994.
Paul F. O'Connell,
Director, AARC Center.
[FR Doc. 94-13184 Filed 5-27-94; 8:45 am]
BILLING CODE 3410-2B-M