[Federal Register Volume 59, Number 249 (Thursday, December 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32047]


[[Page Unknown]]

[Federal Register: December 29, 1994]


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DEPARTMENT OF DEFENSE
Defense Logistics Agency

 

Cooperative Agreement Revised Procedures

Agency: Defense Logistics Agency (DLA).

ACTION: Cooperative Agreements Proposed Revised Procedures.

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summary: This proposed revised procedure implements Title 10, United 
States Code, Chapter 142, 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.

Dates: Comments will be accepted until 31 January 1995. Proposed 
effective date: 15 February 1995.

For further informaton 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.
Sim C. Mitchell,
Program Manager, Office of Small and Disadvantaged Business 
Utilization.

I. Background Information

    The Procurement Technical Assistance (PTA) Cooperative Agreement 
Program was established by the Fiscal year (FY) 1985 Department of 
Defense (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 to support PTA 
programs established by eligible entities.
    DoD's efforts to increase competition in the private sector have 
been supplemented by many state and local governments, and other 
entities that operate PTA programs. The DoD PTA Cooperative Agreement 
Program provides assistance to eligible entities by sharing the cost of 
establishing new and/or maintaining existing PTA programs.
    The FY 95 DoD Authorization Act authorized a total of $12 million 
to support the Program during FY 95. Of this total, $600,000 is 
available for American Indian programs only.
    Limitations placed on these funds are:
    a. DoD's share of an eligible entity's net program cost shall not 
exceed 50%, unless the eligible entity proposes to cover a distressed 
area. If the eligible entity 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 net program cost exceed $150,000 for programs 
providing less than statewide coverage or $300,000 for programs 
providing statewide coverage.
    b. For the American Indian program, DoD's share of net program cost 
shall not exceed 75% or $150,000, whichever is less, for programs 
providing services on reservations within one Bureau of Indian Affairs 
(BIA) service area. For programs providing services to 100% of the 
reservations located within one BIA service area and at least 50% of 
the reservations located within another BIA service area (multi-area 
coverage), DoD's share of net program cost shall not exceed 75% or 
$300,000, whichever is less.
    c. No funds available to DoD may be provided by grant or contract 
to any institution of higher education that has a policy of denying, or 
which effectively prevents, the Secretary of Defense from obtaining for 
military recruiting purposes--
    1. entry to campuses or access to students (individuals who are 17 
years of age or older) on campuses; or
    2. access to directory information pertaining to students.
    The purpose of the proposed revised procedure is to make available 
to all eligible entities the prerequisites, policies and procedures 
that will govern the award of cooperative agreements by DLA. Also, this 
procedure establishes the guidelines that 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 (OMB) pursuant to Title 31, USC, Chapter 63, 
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 94 Program in that 
it addressed the FY 94 Authorization Act requirements in specific 
terms, including the exact dollar amounts of funding applicable to the 
Program. This proposed 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 95 Program.
    Comments are invited on the procedure. Comments should be submitted 
to DLA, Office of Small and Disadvantaged Business Utilization, ATTN: 
AQAU, Cameron Station, Alexandria, VA 22304-6100. Comments received 
after 31 January 1995 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 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 (hereafter referred to as Program Manager) of the DLA Office of 
Small and Disadvantaged Business Utilization. The Program Manager will 
respond to any SCAP questions that may arise.
    C. Only one proposal will be accepted from a single eligible 
entity. An entity that submits more than one proposal, or is listed as 
a subagreement applicant in another entity's proposal will not be 
considered for an award.
    D. Proposals will not be accepted from applicants that apply as 
coequal 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.
    E. Proposals will not be accepted from applicants who propose to 
provide less than county or equivalent (i.e., parish, borough) 
coverage. For example, if an applicant proposes to service any part of 
a country or equivalent, the applicant must service the entire county 
or equivalent.
    F. 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.
    G. Letters of support and recommendation from Members of Congress 
are not necessary and will not be considered in the evaluation and 
selection of proposals to receive cooperative agreement awards.
    H. The SCAP shall be given the widest practical dissemination. It 
will be made available 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.
    I. 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.
    J. If selected for an award, the applicant is bound to perform the 
services described in its proposal when the proposal is incorporated 
into the cooperative agreement award document.
    K. 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 travel expenses incurred by FY 95 award 
recipients to participate in a FY 95 preproposal and/or postaward 
conference may be reimbursed under the FY 95 cooperative agreement 
award subject to the provisions of the applicable cost principles.
    L. 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 or firm which is 
or becomes a client of a DLA cooperative agreement recipient.
    M. Cooperative agreement recipients must give special emphasis to 
assisting small disadvantaged business (SDB) firms that 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.
    N. Award recipients are not required to obtain or retain private, 
profit and/or nonprofit consultants to support the Program. Any 
subcontract costs being proposed for consulting services shall not 
exceed 10% of total program cost for the general program or 25% of 
total program cost under the American Indian program. Proposals 
containing subcontracting costs for consultant services in excess of 
10% of total program cost for the general program and 25% of total 
program cost for the American Indian program, will be rejected.
    O. 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.
    P. Each cooperative agreement recipient's area of performance will 
be limited to the county(ies) or equivalent specified in its 
cooperative agreement award. Recipients may voluntarily service clients 
outside their area of performance provided that the client's location 
is not being serviced by another PTA recipient. For the American Indian 
program, the recipient's area of performance will be limited to the 
reservation(s) specified in its cooperative agreement.
    Q. 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 entity from each Indian tribe it plans 
to service. Approval will consist of a written statement (signed by a 
responsible official authorized to legally bind the Indian tribe it 
plans to service) indicating that the Indian tribe approves and agrees 
to accept the services to be provided by the tribal organization.
    R. Cooperative agreement awards shall not be made to entities 
listed in the General Services Administration's (GSA) ``Lists of 
Parties Excluded from Federal Procurement or Nonprocurement Programs.'' 
Cooperative agreements will not be awarded to entities who employ any 
person listed in GSA's ``Lists of Parties Excluded from Federal 
Procurement or Nonprocurement Programs.''
    S. Proposals submitted in response to the SCAP shall cover a 12-
month period. A proposal that covers less than 12 months will not be 
evaluated or otherwise considered for an award.
    T. To be considered during the evaluation process, part-time PTA 
program employees must be employed by the PTA program a minimum of 
three calendar months per year. Time employed may be performed 
continuously or incrementally during the 12-month period.
    U. Cooperative agreement recipients shall not purchase non-
expendable tangible personal property with a delivery date later than 
270 days after the beginning of the cooperative agreement's effective 
period. Cost of non-expendable tangible personal property delivered 271 
days or later after the beginning of the cooperative agreement's 
effective period will be disallowed.
    V. Cooperative agreement recipients will be authorized to use GSA's 
subscription schedules. Usage will be limited to subscription services 
only.
    W. Cooperative agreement recipients are required to provide 
information to their clients relating to the objectives of the 
Government's Electronic Commerce/Electronic Data Interchange 
initiatives which are as follow:
    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 practicable extent;
    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. The recipient may add funds to its program after all program 
funds are properly expended and before expiration of the cooperative 
agreement's effective period. In the event funds are added to the 
program, the reimbursable ratio 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.
    Y. 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 such reimbursement 
must be added to total program cost.

3-2  Scope

    This procedure implements Title 10, USC, Chapter 142, 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 fiscal 
year.
    B. Administrative Grants Officer (AGO). An official with the 
authority to administer grants or cooperative agreements consistent 
with the authority delegated by the Grants Officer.
    C. Agency. A field office, of one of the twelve service areas, as 
published by the Bureau of Indian Affairs (BIA), US Department of the 
Interior.
    D. 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 five years for update.
    E. Cash contributions. The recipient's cash outlay, including the 
outlay of money contributed to the recipient by third parties.
    F. 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.
    G. 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 as a prime or subcontractor 
to DoD, other Federal agency(ies), state and/or local government(s). 
For the American Indian program, the client must be located on a 
reservation.
    H. Consultant services. Marketing and technical assistance obtained 
from private nonprofit and/or profit making individuals, organizations 
or otherwise qualified business entities to augment the capabilities of 
the PTA center.
    I. 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 US 
Government. Substantial involvement is expected between DLA and the 
recipient when carrying out the activity contemplated in the agreement.
    J. Cooperative agreement offer/application/proposal. An applicant's 
response to the SCAP describing its planned PTA program.
    K. Cooperative agreement award recipient. An organization receiving 
financial assistance directly from DLA to carry out a PTA program. 
Awards will only be made to legal entities recognized under the laws in 
the State in which the entity is organized.
    L. Cost-matching or sharing. The portion of project or program 
costs not borne by the Federal Government.
    M. Counseling session. A documented counseling session (telephone 
call, correspondence or personal discussion) held with a business firm/
client, where professional guidance is provided to assist the client in 
marketing its goods and/or services to DoD, other Federal agencies, and 
state and local governments. This includes, but is not limited to, 
providing advice and assistance such as:
    1. Assisting business firms by providing marketing and technical 
assistance in selling their goods and/or services to DoD, other Federal 
agencies, and state and local governments;
    2. Assisting with understanding specifications;
    3. Preparing applicants 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/clients on the DoD 
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, specifications, bid matches or 
simply referring business firms/clients to another source for advice or 
assistance is not a counseling session.
    N. 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.
    O. Distressed area. The geographical area to be serviced by an 
eligible entity in providing PTA to business firms physically located 
within an area that:
    1. Has a per capita income of 80% or less of that State's average;
    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; or
    3. Is a ``reservation'' which 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.
    P. 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.
    Q. 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.
    R. 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).
    S. Eligible entities. Organizations qualifying to submit a proposal 
as follows:
    1. General program:
    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 US 
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 US 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. A business entity organized 
and operated exclusively for charitable, scientific, or educational 
purposes, of which no part of the earnings inure to the benefit of any 
private shareholder or individual, of which no substantial part of the 
activities is carrying on propaganda or otherwise attempting to 
influence legislation or participating in any political campaign on 
behalf of any candidate for public office, and which are exempt from 
Federal income taxation under section 501 of the Internal Revenue Code.
    2. American Indian Program:
    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: Provided, 
That in any case where a cooperative agreement is made to an 
organization to perform services benefiting more than one Indian tribe, 
the approval of each such Indian tribe shall be a prerequisite to the 
letting or making of such cooperative agreement.
    T. Existing program. Any PTA program that had a cooperative 
agreement with DLA for any two years subsequent to FY 88.
    U. Federal funds authorized. The total amount of Federal funds 
obligated by the Federal government for use by the recipient.
    V. Follow-up counseling session. A counseling session held with a 
client subsequent to the initial counseling session.
    W. Grants officer. An official with the authority to enter into, 
administer, and/or terminate grants or cooperative agreements.
    X. 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.].
    Y. Indian 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.
    Z. 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 USC Section 1601 et seq.], 
which is recognized by the Federal Government as eligible for services 
from the Bureau of Indian Affairs.
    AA. 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.
    AB. Initial counseling session. The first counseling session held 
with a business firm. The initial counseling session may determine that 
the business firm has no potential to do business with a government 
agency.
    AC. 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.
    AD. Integrated automated information environment. Computer-to-
computer exchange of public standard formatted messages through use of 
a VAN.
    AE. Multi-area coverage. A PTA program that proposes to service 
100% of the reservations located within one BIA service area and at 
least 50% of the reservations located within another BIA service area.
    AF. Net program cost. The total program cost (includng all 
authorized sources) less any program income and/or other Federal funds 
not authorized to be shared.
    AG. Networking. A method of providing assistance throughout the 
area to be serviced. Examples include:
    1. Locating assistance offices in area of industrial concentration;
    2. Establishing data links with other organizations; and
    3. Creating data exchanges.
    AH. New start. An eligible entity that is not an existing program.
    AI. Other Federal funds. Federal funds provided by Federal 
agency(ies) 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 matching 
contributions.
    AJ. Outlays/expenditures. Represent charges made to the PTA 
program. They may be reported on a cash or accrual basis.
    1. Cash basis. For reports prepared on a cash basis, outlays are 
the sum of:
    a. Cash disbursements for direct charges for goods and services;
    b. The amount of indirect expense charged;
    c. The value of in-kind contributions/donations applied; and
    d. The amount of cash advances and payments made to subrecipients.
    2. Accrual basis. For reports prepared on an accrual basis, outlays 
are the sum of:
    a. Cash disbursements for direct charges for goods and services;
    b. The amount of indirect expense incurred;
    c. The value of in-kind contributions/donations applied:
    d. The net increase (or decrease) in the amounts owed by the 
recipient for goods and other property received, for services performed 
by employees, contractors, subrecipients and other payees; and
    e. Other amounts becoming owed under programs for which no current 
services or performance are required.
    AK. 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 US 
Department of Commerce, Bureau of the Census.
    AL. Prior approval. A written approval by the GO/AGO evidencing 
prior consent.
    AM. 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 Federal, state and local government contracts.
    AN. Program income. The 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.
    AO. 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).
    AP. 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.A., Section 1601 et seq.].
    AQ. Service area. Any one of twelve area offices, as published by 
the US Department of the Interior, BIA, to include: Aberdeen, 
Albuquerque, Anardako, Billings, Eastern, Juneau, Minneapolis, 
Muskogee, Navajo, Phoenix, Portland and Sacramento.
    AR. Small business (SB). As used in this solicitation, a business, 
including its affiliates, that is independently owned and operated, not 
dominant in the field of operation in which it is bidding on Government 
contracts, and qualified as SB under the criteria and size standards in 
13 CFR 121.
    AS. Small disadvantaged business (SDB). As used in this 
solicitation, a SB concern that is at least 51 percent unconditionally 
owned by one or more individuals who are both socially and economically 
disadvantaged, or a publicly owned business that has at least 51 
percent of its stock unconditionally disadvantaged individuals and that 
has its management and daily business controlled by one or more such 
individuals. This term also means a SB concern that is at least 51 
percent unconditionally owned by an economically disadvantaged Indian 
tribe or Native Hawaiian organization, or publicly owned business that 
has at least 51 percent of its stock unconditionally owned by one of 
these entities, that has its management and daily business controlled 
by members of an economically disadvantaged Indian tribe or Native 
Hawaiian organization and that meets the requirements of 13 CFR 124.
    AT. 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.
    AU. Statewide coverage. A PTA program which proposes to service at 
least 50% of a State's counties or equivalent and 75% of the State's 
labor force.
    AV. Subrecipient. The legal entity to which a written subagreement 
is awarded and which is accountable to the recipient of the cooperative 
agreement for the use of the PTA program funds for providing PTA to 
business firms/clients.
    AW. 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.
    AX. Total program cost. All allowable costs as set forth in OMB 
Circular A-21, A-87, and A-122, as applicable.
    AY. Total program outlays. All the charges made to the PTA program. 
These charges include cash disbursements for direct charges for goods 
and services, the amount of indirect expense charged, the value of in-
kind contributions/donations applied, and the net increase (or 
decrease) in the amounts owed by the recipient for goods and other 
property received for services performed by employees, contractors and 
other payees, and other amounts becoming owed under programs for which 
no current services or performances are required.
    AZ. 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 customer requirements and expectations. It is an 
integrated system of management with recognizable components which: 
acknowledges that the customer defines quality in products or services; 
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 variations can be 
reduced, defects can be prevented, and problems can be solved; and 
involves and values everyone.
    A1. Unliquidated obligations. For financial reports prepared on a 
cash basis, unliquidated obligations are the amount of obligations 
incurred by the recipient that have not been paid. For reports prepared 
on an accrual basis, they are the amount of obligations incurred by the 
recipient for which an outlay has not been recorded.
    A2. Unobligated balance. The portion of the funds authorized by DLA 
that has not been obligated by the recipient. This amount is determined 
by deducting the cumulative obligations from the cumulative funds 
authorized.
    A3. Value added network (VAN). A commercial telecommunications 
service provider which passes electronic commerce traffic between a 
government entity and a commercial, private sector vendor.
    A4. Woman-owned small business (WOB). As used in this solicitation, 
a SB that is at least 51 percent owned by a woman or women who are US 
citizens and who also control and operate the business.
    A5. Workshop for the blind/nonprofit organization employing the 
severely disabled. A qualified, nonprofit agency for the blind or 
organization employing the severely disabled which produces a commodity 
for, or provides a service to, the Government. As used in this SCAP, 
these agencies/organizations may be treated as SBs.

3-4  Program Purpose and Requirements

    A. The purpose of the PTA Cooperative Agreement 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. Each PTA program must meet these minimum requirements:
    1. Program Requirements.
    a. Have the resources necessary to implement proposed 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 DoD Mentor-
Protege Pilot Program; Defense Conversion, Reinvestment and Transition 
Assistance Act of 1992; The Metric Conversion Act; EC/EDI; and TQM.
    e. PTA program manager must be employed by the PTA center on a 
full-time basis and salary must be charged to the PTA Cooperative 
Agreement Program.
    f. Cooperative agreement recipients will have, on file, policies 
and procedures applicable to the PTA center's management control and 
financial control systems.
    g. Resumes (for filled positions) and qualification standards (for 
vacant positions) must be on file, and available for review and 
verification during on-site performance surveillance reviews.
    2. Service Requirements.
    a. Procurement Outreach Program. The plan, procedures and resources 
for making the business community aware of the PTA Cooperative 
Agreement Program, what assistance it offers, and the criteria for a 
business firm to become a client.
    b. Personnel. Individuals who are qualified to counsel and 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. 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;
    (10) Bid and proposal preparation;
    (11) EC/EDI;
    (12) DoD Mentor-Protege Pilot Program;
    (13) Defense Conversion, Reinvestment and Transition Assistance Act 
of 1992;
    (14) The Metric Conversion Act;
    (15) TQM; and
    (16) Specialized acquisition requirements for such areas as 
construction, research and development, and data processing.
    c. Counseling Program. The plan, procedures, and resources for 
counseling potential or existing clients in marketing their goods and/
or services to DoD, other Federal agencies, and state and local 
governments; the publications to be used in such efforts; the 
information to be provided to clients during counseling sessions; and 
the procedures for documenting counseling efforts.
    d. Marketing Opportunity Program. The 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. The plan, procedures and resources 
for educating clients concerning each of the following: DoD Mentor-
Protege Pilot Program; Defense Conversion, Reinvestment and Transition 
Assistance Act of 1992; The Metric Conversion Act; and TQM.
    f. EC/EDI Program. The plan, procedures and resources for educating 
clients concerning the Government's EC/EDI initiatives which include 
using VAN computer-to-computer exchange of routine business 
information, such as: solicitations, offers, contracts, purchase 
orders, invoices, payments, and other contractual documents, 
electronically exchanged between the private sector and the Federal 
Government to the maximum extent practicable, using ANSI ASC X-12 
Standards.
    g. Postaward Assistance Program. The plan, procedures and resources 
for educating clients concerning contract postaward functions, such as: 
production, quality systems, finance, transportation, packaging, 
subcontracting, etc.
    h. Contract Award Verification and Client Satisfaction Program.
    (1) Contract Award Verification. The 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, and state or local governments) and 
type and socio-economic status of the business receiving the award (SB, 
SDB, WOB, OTSB). In addition, award recipients are required to have on 
file for their clients for each reported award, the following:
    (a) The number of dollar value for prime and subcontract awards 
received by clients;
    (b) 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
    (c) A means of validating the data.
    (2) Client Satisfaction. The plan and procedures for documenting 
award recipient's client satisfaction with the assistance provided. As 
a minimum, award recipients are required to have on file an annual 
client satisfaction survey for each client serviced.

3-5  Procedures

    A. The SCAP and evaluation criteria are developed and prepared by 
the Program Manager. The SCAP and evaluation criteria are approved by 
the Headquarters (HQ) DLA PTA Cooperative Agreement Program Policy 
Committee (hereafter referred to as Policy Committee). The Policy 
Committee is comprised of representatives from the HQ DLA Directorates 
of Acquisition (Offices of Small and Disadvantaged Business 
Utilization, Contract Management and Procurement), Corporate 
Administration (Office of Congressional Affairs), Comptroller, and 
General Counsel (non-voting member).
    B. The Policy Committee is the final administrative appeal 
authority for disputes and protests.
    C. Grants Officer (GO) as used herein refers to the GO assigned to 
HQ DLA Office of Small and Disadvantaged Business Utilization.
    D. Proposals and revisions received after the deadline for receipt 
of proposals, as specified in the SCAP, will not be evaluated unless 
evidence is provided by the applicant. Acceptable evidence to support 
an otherwise late proposal or revision 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.
    3. If the proposal or revision is hand delivered, the specific time 
and delivery date shall be supported by a receipt given by the GO or 
designated representative.
    E. The evaluation of proposals and selection of award recipients 
resulting from responses to the SCAP shall be conducted as detailed 
below:
    1. Initial review. The GO will review each proposal received to 
determine if the proposal: (i) offers at least a county or equivalent; 
(ii) contains sufficient technical, cost, and other information to 
permit evaluation; (iii) has been signed by a responsible official 
authorized to bind the eligible entity; and (iv) meets the requirements 
of the SCAP. If the proposal is removed from further consideration for 
an award by the GO, the applicant will be promptly notified of the 
reason for removal. The applicant's proposal will be retained with 
other unsuccessful proposals by the GO.
    a. Proposal classification. The GO will review and verify the 
accuracy of the applicant's program status stated in item 8, ``Type of 
Application'' of the Standard Form (SF) 424. If the GO considers the 
type of application misclassified, the matter will be reviewed with the 
applicant. If the applicant and the GO cannot agree, the GO will 
determine the proper program categorization based upon the information 
contained in the applicant's proposal at the time the solicitation 
closed. The GO's decision regarding the program's classification is 
final.
    b. Minor informalities and mistakes. The GO shall provide an 
applicant 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 of 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 applicants. The defect or variation is immaterial when the 
effect on program quality is negligible when contrasted with the 
program's total cost. Two examples of minor informalities include the 
failure of the applicant to: (i) return the required number of copies 
of its proposal; and (ii) execute the certifications required by the 
SCAP clauses. The GO shall provide an applicant 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 of the Government as follows:
    1. In cases 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 applicant 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: (i) obvious misplacement of a decimal point; 
(ii) incorrect transposition of numbers; and (iii) obvious mistake in 
identifying the program type (existing versus new start program). The 
GO shall obtain from the applicant a written verification of the offer 
intended.
    2. 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 applicant's proposal. Corrections shall be restated 
in the cooperative agreement award document, if the applicant receives 
an award.
    3. If an applicant request permission to correct a mistake, and 
clear and convincing evidence establishes the existence of the mistake, 
the GO may make a determination permitting the applicant to correct the 
mistake. However, if this correction would result in displacing one or 
more applicants 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 ascertainable substantially from the 
proposal itself.
    c. Notification for proposal removal from consideration for an 
award. The GO will notify the applicant by certified mail (return 
receipt requested) if its proposal is removed from further 
consideration for an award.
    2. Comprehensive evaluation. Proposals which pass the initial 
review are subjected to a comprehensive evaluation. The comprehensive 
evaluation is performed by a HQ DLA evaluation panel. A member of the 
HQ DLA Directorate of General Counsel will provide legal assistance to 
the evaluation panel, as needed. The purpose of the comprehensive 
evaluation is to assess the merits of each proposal to determine which 
offer the greatest likelihood of achieving the stated Program purpose 
and requirements. The evaluation panel will conduct its evaluations in 
accordance with stated criteria. Upon completion of the review, the 
evaluation panel will submit its results and recommendations to the GO.
    3. Duplicate coverage. An applicant's proposal shall not duplicate 
more than 25%, on an individual or cumulative basis, any of the 
counties or equivalent (for the general program) or any of the 
reservations (for the Indian program) proposed by other applicants. The 
GO will give selection priority to the applicant that is assigned the 
highest total points by the evaluation panel when the GO determines 
that two or more applicants are proposing to provide duplicate 
coverage. Only one statewide program (under the general program) will 
be awarded in a state.
    4. Award. 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 and new start programs based on the information provided in 
block 8 of the SF 424, or as determi3nd by the GO.
    B. Each group of proposals will be evaluated separately based upon 
the evaluation factors specified for the group.
    C. Proposal will be evaluated and awards will be made without 
discussions with the applicants (except for discussions conducted for 
correcting minor informalities, mistakes and clarifications).
    D. Evaluation factors, which may be subject to change, for existing 
and new start programs are listed below:
    1. Existing program service requirements.
    a. Past performance and effectiveness.
    b. Description.
    (1) Types and qualifications of personnel.
    (2) Geographic areas the applicant plans to service.
    (3) Estimated number and types of clients the applicant plans to 
service.
    c. Development.
    (1) Procurement Outreach Program.
    (2) Counseling Program.
    (3) Marketing Opportunities Program.
    (4) Client Information Program.
    (5) Electronic Commerce/Electronic Data Interchange Program.
    (6) Postaward Assistance Program.
    (7) Contract Award Verification and Client Satisfaction Program.
    2. New start program service requirements.
    a. Description.
    (1) Types and qualifications of personnel.
    (2) Geographic areas the applicant plans to service.
    (3) Estimated number and types of clients the applicant plans to 
service.
    b. Development.
    (1) Procurement Outreach Program.
    (2) Counseling Program.
    (3) Marketing Opportunities Program.
    (4) Client Information Program.
    (5) Electronic Commerce/Electronic Data Interchange Program.
    (6) Postaward Assistance Program.
    (7) Contract Award Verification and Client Satisfaction Program.

3-7  DoD Funding

    A. The FY 95 DoD Authorization Act authorized a total of $12 
million to support the PTA Cooperative Agreement Program for FY 95. Of 
this total, $600,000 is available for the American Indian program 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 
under the American Indian program, 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 proposal 
must remain unchanged.

3-8  Cost-sharing Limitations

    A. General program.
    1. The DoD share of net program cost 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%. 
In no event shall the DoD share of net program cost exceed $150,000 for 
programs providing less than statewide coverage or $300,000 for 
programs providing statewide coverage.
    2. 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 
busienss entities is limited to no more than 10% of total program cost.
    B. American Indian program.
    1. The DoD share shall not exceed 75% of net program cost or 
$150,000 for a program providing service on reservations within one BIA 
service area, or $300,000 for a program providing multi-area coverage.
    2. 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 25% of total program cost.
    C. The type and value of third-party in-kind contributions/
donations is limited to no more than 25% of total program cost.
    D. Indirect cost and/or indirect rate used in the proposal are 
subject to 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 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. Except as provided by Federal statute, a cost-sharing or 
matching requirement may not be met by costs borne by another Federal 
grant.
    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 for 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 total program cost is 
subject to authorization by Federal statute and the terms of the 
instrument containing such funds or written advice obtained from the 
agency 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. Neither costs nor the values of third party in-kind 
contributions may count towards satisfying a cost-sharing or matching 
requirement of the SCAP if they have been or will be counted towards 
satisfying a cost-sharing or matching requirement of another Federal 
grant, a Federal procurement contract, or any other award of Federal 
funds.
    E. Costs and third party in-kind contributions satisfying a cost-
sharing or matching requirement must be verifiable from the records of 
recipients, subrecipients, or cost-type contractors. These records must 
show how the value placed on third party in-kind contributions was 
derived. To the extent feasible, volunteer services must be supported 
by the same methods that the organization uses to support the 
allocability of regular personnel costs.
    F. Third party in-kind contributions may satisfy a cost-sharing or 
matching requirement only when the payments would be allowable costs if 
the party receiving the contributions were to pay for them. Some third 
party in-kind contributions are goods and services that would have been 
an indirect cost if the recipient, subrecipient or contractor had been 
required to pay for them. Cost-sharing or matching credit for such 
contributions may be given only if the recipient, subrecipient or 
contractor has established, along with its regular indirect cost rate, 
a special rate for allocating to individual projects or programs the 
value of the contributions.
    G. The value placed on third party in-kind contributions for cost-
sharing or matching purposes must conform to the requirements of the 
SCAP.
    H. Where distressed funding (greater than 50%) is requested and the 
civil jurisdiction(s) which the applicant plans to service is both 
distressed and non-distressed, two budgets must be submitted based on 
the anticipated distribution of total program cost between these two 
areas. In addition, the recipient's accounting system must segregate 
and accumulate costs in each of the two budget areas.
    I. Recipients of PTA cooperative agreements are required to 
maintain records adequate to reflect the nature and extent of their 
costs and expenditures, and to ensure that their required cost 
participation is achieved.

3-10  Administration

    A. Cooperative agreements with state and local governments, 
nonprofit organizations and Indian economic enterprises will be 
assigned to the cognizant Defense Contract Management Area Operations 
for administration. Cooperative agreements with educational 
institutions will be assigned to the Office of Naval Research for 
administration.
    B. The organization having cognizance for postaward administration 
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, representatives 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. Each state and local 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 have audits 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 Office of the Assistant 
Inspector General for Audit, Policy and Oversight, Office of the 
Inspector General, 400 Army-Navy Drive, Room 1076, Arlington, VA 22202-
2884.
    E. The following OMB Circulars 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.
    F. The cognizant Deputy for Small Business will be the focal point 
for the Administrative Grants Officer for small business issues and for 
all recipient publication and training requests.

[FR Doc. 94-32047 Filed 12-28-94; 8:45 am]
BILLING CODE 3620-01-M