[Federal Register Volume 60, Number 61 (Thursday, March 30, 1995)]
[Notices]
[Pages 16454-16457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7800]
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DEPARTMENT OF COMMERCE
Technology Administration
[Docket No. 950313072-5072-01]
RIN No.: 0693-AB37
Financial Assistance for Research and Development, U.S.-Israeli
Science and Technology Program
agency: Tecnology Administration, Commerce.
action: Notice.
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summary: The Under Secretary for Technology of the United States
Department of Commerce invites proposals for financial assistance under
the U.S.-Israeli Science and Technology Program (the ``Program''). The
Program will assist U.S.-based industrial firms that have entered into
U.S.-Israeli joint ventures (partnerships of United States and Israeli
companies) to carry our research and development on long-term, medium-
to high-risk technologies. This Program is separate from the existing
Bi-national Industrial R&D Foundation (BIRD), which continues to offer
support for commercial joint ventures. Inquiries about BIRD assistance
should be addressed directly to the BIRD Foundation, Tel Aviv, Israel.
Such projects should focus on research, development and
commercialization of technologies that are not appropriately funded by
other U.S. or Israeli government-funded research and development
efforts. This assistance will take place through the use of cooperative
agreements with U.S.-based industrial firms pursuant to this Notice.
Funding will be made directly to the U.S. firms that are partners
in the U.S.-Israeli joint ventures. Funding from the U.S. Department of
commerce for the Program is limited to the U.S. partner(s) to a U.S.-
Israeli joint venture, with funding for the Israeli partner(s) to be
provided by the Israeli Government. On December 21, 1994, the
Technology Administration published a notice in the Federal Register to
announce this Program (FR 65756), including the availability of funds
for a first round of awards. Funding recipients for this first round
were announced on February 6, 1995, referenced in more detail below.
dates: Applications must be received on or before Close of Business May
19, 1995. It is expected that the review and selection process will
take approximately thirty (30) days.
addresses: Applications must be submitted to: U.S.-Israel Science and
Technology Commission, Room 7068, U.S. Department of Commerce,
Washington, DC 20230.
for further information contact: Lee Bailey, Executive Director, U.S./
Israel Science and Technology Commission, telephone number (202) 482-
6351.
supplementary information: In March, 1993, President Clinton and
Israeli Prime Minister Yitzhak Rabin announced their intention to
create the U.S.-Israeli Science and Technology Commission (the
``Commission'') to promote U.S.-Israeli cooperative science and
technology activities that could benefit the two nations' civilian high
technology commercial sectors, and create jobs and economic growth. The
Commission was established by an agreement of January 18, 1994 between
the U.S. and Israeli governments, and plans to implement certain of its
objectives through a U.S. non-profit corporation (hereinafter
``USNPC'').
The Commerce Department expects that the USNPC itself will award
future financial assistance agreements under the Program, and may also
be in a position to award the agreements contemplated by this notice.
Should this occur, applicants that have submitted proposals that remain
under review will be asked to transfer their proposals to the USNPC,
and will receive further information about the requirements that apply
to the USNPC's financial assistance agreements. Applicants should take
note that the USNPC's requirements will differ in certain respects from
those announced in this notice, including modification with respect to
accounting, reporting, and intellectual property requirements, and the
adoption of award recovery policies that would apply in cases where the
USNPC-sponsored projects result in commercially successful products.
Applicants that enter into agreements with the Commerce Department may
also be asked to consent to the Department assigning their agreements
to the USNPC at a later point, and to negotiate any modifications to
the agreement that may be necessary to satisfy the USNPC's financial
assistance requirements. For additional information, applicants may
contact the Information Contact Person listed above. Funding is
intended for projects (1) That will have significant economic benefits
for both the United States and Israel and (2) that in general are in
the areas of the environment, energy, health, biotechnology,
information processing/telecommunications or agriculture, or in the
commercialization of defense technologies.
This program announcement has been determined to be not significant
for purposes of Executive Order 12866.
Authority
The Under Secretary for Technology, pursuant to the authority
delegated to her by section 3706 of Title 15 of the U.S. Code, as well
as sections 2.02 and 4.03(d) of Department Organization Order 10-17,
dated July 14, 1992, is implementing this activity.
Program Description
The Program will assist eligible U.S.-based industrial firms that
have entered into U.S.-Israeli joint ventures (partnerships of United
States-based and Israeli-based companies) to carry out research and
development of long-term, medium- to high-risk technologies that offer
significant economic benefits, that are focused on commercialization
and that are not appropriately funded by other U.S. and Israeli
government-funded research and development efforts. This assistance
will take place through the use of cooperative agreements. U.S.
Commerce Department assistance is offered to promote the economy of the
U.S. via the creation of new technologies and the commercialization of
new and existing technologies.
Funding Availability
The implementation and conduct of this Program is contingent upon
the availability of all funding anticipated for its operation. The
Commerce Department reserves the right to discontinue this Program in
the event all funding is not made available or is otherwise not
secured. It is anticipated that funds will be available subject to
reprogramming notifications to Congress.
The U.S. Government and the Government of Israel are each making
available up to $5 million in the current fiscal year for this Program
for qualified projects. The governments of both nations intend to fund
this Program at [[Page 16455]] the same level during 1996 and 1997. Two
awards and one feasibility study totalling $5,721,000, to be paid over
four fiscal years, were announced on February 6, 1995. Within the
limits of available funding, there is no predetermined minimum or
maximum award. The funds may be spent toward research and development
activities consistent with the goals set forth in this Notice.
Matching Funding Requirements--Federal financial assistance must be
accompanied by at least an equal matching investment by the U.S.-based
firm(s) party to each U.S.-Israeli joint venture. In the event there
are multiple U.S.-based firms in a given U.S.-Israeli venture, the
aggregate investment of the U.S. partners must at least equally match
the Federal investment in that project.
Eligibility Requirements
The Program will accept proposals only from U.S.-Israeli joint
ventures led by one U.S.-based industrial partner and one Israeli-based
industrial partner. In general, awards will not be made to a joint
venture composed of affiliated U.S.- and Israeli-based partners.
Concerns are considered to be affiliates of each other when either
directly or indirectly (a) one concern controls or has the power to
control the other, or (b) a third party or parties controls or has the
power to control both, or (c) an identity of interest between or among
parties exists such that affiliation may be found.
Federal financial assistance will be given only to U.S.-based
industrial partner or to a consortia led by U.S.-based industrial
partners. A U.S.-based industrial partner, or a consortia led by U.S.-
based industrial partners, shall be eligible to receive assistance
under this Program only if the U.S.-based industrial partner, or each
member of the consortia, is incorporated in the United States and has
its principal place of business in the United States.
Project Eligibility
Proposed projects must meet the following criteria:
Must be in one of the following areas: The environment,
energy, health, biotechnology, information processing/
telecommunications, the commercialization of defense technologies, or
agriculture. Further, the project must be for research and development
activities in long term, medium- to high risk technologies, and which
show a plan to commercialization within 48 months.
Must include technical innovation, significant commercial
potential, and economic benefit to both countries.
Award Period
The duration of Federal financial assistance to a U.S.-based
industrial firm will not exceed four years.
Indirect Costs
Indirect costs will not be funded under this Program.
Application Forms and Kit
Applicants must submit one (1) signed original plus two copies of
each application. Standard Forms 424 and 424A, Application for Federal
Assistance (which have been approved under the Paperwork Reduction Act
by OMB Control No. 0348-0043 and 0348-0044, respectively) shall be used
in applying for financial assistance, plus such additional information
as is needed to permit the evaluation of the applications on the
criteria set forth below. Forms are available by request from the
Information Contact Person listed above. The additional information
shall include a business plan containing the following:
Executive summary (maximum 3 pages);
Description of the project and technology involved (See
Evaluation Criteria No. 1);
Commercialization objectives including economic benefits
to U.S. & Israel and other regions (See Evaluation Criteria No. 2);
Commercialization plan including project objectives target
markets and strategy, technology transfer and intellectual property
requirements and additional capital requirements (See Evaluation
Criteria No. 3)
Description of proposed project participant qualifications
and time schedule (See Evaluation Criteria No. 4);
Project management, organizational structure, equipment,
facilities and support (See Evaluation Criteria No. 5); and,
Proposed budget.
Proposals shall not exceed 40 pages (50 pages for joint proposals)
exclusive of the Standard Forms. Proposals must be on 8\1/2\ by 11''
paper (copies double sided) no fold out inserts and no smaller than 12
point type. Additional information beyond the page limit will not be
considered. In addition, each proposer is asked to submit a brief one
paragraph project summary containing non-proprietary information which
may be utilized by the Commission without regard to the Confidentiality
Provisions applicable to this notice.
Evaluation Criteria--Factors within each criteria (labelled i, ii,
iii, etc.) will be weighed equally. No project will be funded in the
absence of a finding of technical and commercial merit by the
reviewers. The evaluation criteria to be used in selecting any proposal
for funding under this program, and their respective weights, are:
(1) Scientific and Technical Merit of the Proposal (30 percent).
(i) Quality and innovativeness of the proposed technical program
(i.e. uniqueness with respect to current industry practice).
(ii) Technical feasibility of the project (i.e., are the technical
objectives realistic?).
(iii) Coherency of technical plan and clarity of vision of
technical objectives.
(iv) Breadth of impact of accomplishment of technical objectives.
(2) Commercial Benefits of the Proposal (20 percent).
(i) Commercial potential of the technology in the proposed venture.
(ii) Potential to improve U.S. and Israeli economic growth and the
productivity of a broad spectrum of industrial sectors or businesses
within an economically important single sector.
(iii) Timeliness of proposal (i.e. the project results will not
occur too late to be competitively useful in the marketplace).
(3) Commercialization Plans for the Project (20 percent).
(i) Evidence that the participants will pursue commercial
application of the technology including production and distribution
plans.
(ii) Project plan adequately addresses technology transfer and
ownership requirements to assure prompt and widespread use and
protection of results by participants and, as appropriate, others;
(4) Qualifications of the Proposing Organization(s) (15 percent).
(i) Quality and appropriateness of proposer's commercial and
managerial staffing, facilities, equipment, and other resources to
accomplish the proposed program objectives.
(ii) Quality and appropriateness of the technical staff to carry
out the proposed work program and to identify and overcome technical
barriers to meeting project objectives.
(iii) For proposals involving laboratory prototype development,
evidence of availability of adequate design and manufacturing tools
appropriate to the prototype.
(5) Proposer's Level of Commitment and Organizational Structure (15
percent).
(i) Appropriateness of the structure of the proposed organization
in terms of composition of participants (i.e. vertical and/or
horizontal integration) and existing relationships among the
parties. [[Page 16456]]
(ii) Level of commitment of proposers as demonstrated by
contribution of personnel, equipment, facilities, and matching funds.
(iii) Appropriate participation by U.S. small businesses.
(iv) Evidence of a strong commitment by applicants to complete and,
if appropriate, provide support for continuation of the program beyond
the period of funding.
Selection Procedures
The selection process for awards is a multi-step process based on
the criteria listed above.
In the first step, called the ``preliminary screening,''
representatives from both governments will review the applications and
will eliminate those that do not meet the threshold Eligibility
Requirements listed above. Further disqualifications will be made if
the application is deemed to have serious deficiencies in the technical
and/or business plan, if the application does not fall within the
overall scope of the Program, or if the application is more
appropriately funded by other U.S. or Israeli government-funded
research and development efforts.
In the second step, referred to as the ``technical and
business review,'' applications are evaluated under the preceding
Evaluation Criteria. Applications are rated as ``not recommended'' or
``recommended.'' Applications must have high scientific and technical
merit to be recommended. Only those applications rated as
``recommended'' are considered further. Such applications are referred
to as ``semifinalists.'' If a majority of either country's
representatives rate an application as ``not recommended,'' that
application will be disqualified.
In the third step, referred to as ``selection of
finalists,'' representatives from both governments (``the Joint
Panel'') will prepare a final scoring and ranking of recommended
semifinalist applications, based upon evaluative criteria. A list of
ranked finalists is then submitted to each respective nation's
Selection Official.
In the final step, referred to as the ``selection of
awardees,'' the Selection Officials select funding recipients from
among the finalists, based upon the rank order of the applications on
the basis of all Evaluation Criteria (see above), assuring appropriate
distribution of funds among technologies, activities and recipients,
the availability of funds, and upon a determination as to the
responsibility of the applicant. The decision of the Selection
Officials is final. Applicants not chosen will be notified.
In the event that a U.S.-Israeli joint venture is ranked
as a finalist, but is determined to contain weaknesses in its structure
or cohesiveness that may substantially lessen the likelihood of the
proposed project's success, the applicant may be informed of the
deficiencies and negotiations may be entered into with the applicant in
an effort to remedy the deficiencies. If appropriate, funding up to 10%
of the amount originally requested by the applicant, but no more than
$100,000, may be awarded by the Program to the applicant to conduct a
feasibility study. If the Program determines within six months that the
organizational deficiencies have been corrected, the Program may award
over the life of the project the remaining funds requested by that
applicant to that applicant.
The Program reserves the right to negotiate with
applicants selected to receive awards over the cost and scope of the
proposed project, e.g., to add or delete a task in order to improve the
probability of success.
Funding Logistics
Funding will be made directly to the U.S.-based firm(s) that is/are
party to the U.S.-Israeli joint venture.
Rights to Inventions
The provisions of the Bayh-Dole Act (35 U.S.C. 201, et seq.,
concerning patent rights in inventions made with Federal assistance)
and the Government Patent Policy set forth in President Reagan's
memorandum to the heads of Executive Departments and Agencies, dated
February 18, 1983, shall apply to all Federally-funded research and
development activities performed under this Program.
Other Requirements
(1) Federal Policies and Procedures--Recipients and subrecipients
are subject to all Federal laws and Federal and Department of Commerce
policies, regulations, and procedures applicable to Federal financial
assistance awards.
(2) Past Performance--Unsatisfactory performance under prior
Federal awards may result in an application not being considered for
funding.
(3) Preaward Activities--If applicants incur any costs prior to an
award being made they do so solely at their own risk of not being
reimbursed by the U.S. Government. Notwithstanding any verbal or
written assurance that may have been received, there is no obligation
on the part of the Department of Commerce to cover preaward costs.
(4) No Obligation for Future Funding--If an application is selected
for funding under the Program, there is no obligation to provide any
additional future funding in connection with that award. Renewal of an
award to increase funding or extend the period of performance is at the
total discretion of the awarding entities. An annual review of each
award will be conducted to determine the worthiness of continued or
additional future funding.
(5) Delinquent Federal Debts--No award of Federal funds shall be
made to an applicant who has an outstanding delinquent Federal debt
until either:
i. The delinquent account is paid in full,
ii. A negotiated repayment schedule is established and at least one
payment is received, or
iii. Other arrangements satisfactory to the Department of Commerce
are made.
(6) Name Check Review. All applicants are subject to a name check
review process. Name checks are intended to reveal if any key
individuals associated with the applicant have been convicted of or are
presently facing criminal charges such as fraud, theft, perjury, or
other matters which significantly reflect on the applicant's management
honesty or financial integrity.
(7) Primary Applicant Certifications. All primary applicants must
submit a completed Form CD-511, ``Certifications Regarding Debarment,
Suspension and Other Responsibility Matters; Drug-Free Workplace
Requirements and Lobbying,'' and the following explanations are hereby
provided:
i. Nonprocurement Debarment and Suspension. Prospective
participants (as defined at 15 CFR part 26, section 105) are subject to
15 CFR part 26 ``Nonprocurement Debarment and Suspension'' and the
related section of the certification form prescribed above applies;
ii. Drug-Free Workplace. Funding recipients (as defined at 15 CFR
part 26, section 605) are subject to 15 CFR part 26, subpart F,
``Governmentwide Requirements for Drug-Free Workplace (Grants)'' and
the related section of the certification form prescribed above applies;
iii. Anti-Lobbying. Persons (as defined at 15 CFR part 28, Section
105) are subject to the lobbying provisions of 31 U.S.C. 1352,
``Limitation on use of appropriated funds to influence certain Federal
contracting and financial transactions,'' and the lobbying section of
the certification form prescribed above applies to applications/bids
for grants, cooperative agreements, and [[Page 16457]] contracts for
more than $100,000, and loans and loan guarantees for more than
$150,000, or the single family maximum mortgage limit for affected
programs, whichever is greater; and
iv. Anti-Lobbying Disclosures. Any applicant or component entity
thereof that has paid or will pay for lobbying using any funds must
submit an SF-LLL, ``Disclosure of Lobbying Activities,'' as required
under 15 CFR part 28, appendix B.
(8) Lower Tier Certifications. Recipients shall require applicants/
bidders for subgrants, contracts, subcontracts, or other lower tier
covered transactions at any tier under the award to submit, if
applicable, a completed Form CD-512, ``Certifications Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier
Covered Transactions and Lobbying'' and disclosure form, SF-LLL,
``Disclosure of Lobbying Activities.'' Form CD-512 is intended for the
use of recipients and should not be transmitted to the Department of
Commerce. SF-LLL submitted by any tier recipient or subrecipient should
be submitted to the Department of Commerce in accordance with the
instructions contained in the award document.
(9) False Statements. A false statement on an application is
grounds for denial or termination of funds and grounds for possible
punishment by a fine or imprisonment as provided in 18 U.S.C. 1001.
(10) Intergovernmental Review--Applications under this program are
not subject to Executive Order 12372, ``Intergovernmental Review of
Federal Programs.''
(11) Purchase of American-Made Equipment and Products--Applicants
are hereby notified that they will be encouraged, to the greatest
extent practicable, to purchase American-made equipment and products
with funding provided under this Program in accordance with
Congressional intent as set forth in the resolution contained in Public
Law 103-317, sections 607(a)-(b).
Dated: March 27, 1995.
Mary Lowe Good,
Under Secretary of Commerce for Technology, Department of Commerce.
[FR Doc. 95-7800 Filed 3-29-95; 8:45 am]
BILLING CODE 3510-18-M