[Federal Register Volume 60, Number 125 (Thursday, June 29, 1995)]
[Notices]
[Pages 33787-33788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15911]



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 Notices
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  Federal Register / Vol. 60, No. 125 / Thursday, June 29, 1995 / 
Notices  


[[Page 33787]]


DEPARTMENT OF AGRICULTURE


Alternative Agricultural Research and Commercialization (AARC) 
Center; AARC Center Request for Proposals

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

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, Agriculture, Conservation, and Trade Act of 
1990, Pub. L. No. 101-624, 7 U.S.C. 5904. Potential funding for 
proposals to provide commercialization assistance to private companies 
using the Cooperative Agreements 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 cooperative 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-commercialization or 
commercialization tasks, including marketing for the 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 1996. The Administration's budget request 
to Congress was $8 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 ratio 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 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. The private sector partner must 
take the lead when an educational institution is involved.

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/processes 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 has approved funding for about 40 projects 
using 1993 and 1994 appropriated funds. Another 14 projects are 
currently under consideration for funding with 1995 appropriations. 
Projects include use of a broad range of agricultural and forestry 
materials such as: Soybean oil, soybean meal cotton lint, peanut hulls, 
corn husks, wheat straw, milkweed, kenaf, castor oil, rapeseed, cuphea, 
crambe, ethanol, mesquite, hesperaloe, lesquerella, agricultural and 
forestry wastes, biomass, and plant proteins. Examples of products 
include: biocontrol agents, medium-density fiberboard and building 
materials from straw, plypole, food packaging, bonded paper from kenaf, 
oil absorbents, fillers and yarn, spinning fibers, highway signposts 
and railroad ties, building and furniture composites, heating and 
electricity, potting mixes, biodiesel--as 

[[Page 33788]]
replacement for petroleum, biodegradable lubricants, coatings 
cosmetics, detergents, personal care products, compost, carrier for 
crop protection materials, and cat litter.

Evaluation Criteria

    The AARC Center's primary interest, in this request for pre-
proposals/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 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 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 1996 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 October 1, 1995. One of the following addresses should be 
used, as applicable:

Regular U.S. Mail

    USDA AARC Center, AG Box 0401, 14th & Independence Ave. SW., 0156 
South Building, Washington, DC 20250-0401.

Overnight Delivery

    USDA AARC Center, 0156 South Building, 14th & Independence Ave., 
Washington, DC 20250-0401 Tel: 202-690-1633.

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 202-690-1655 to receive 
a packet containing the instructions and forms. Specific questions 
should be directed to Patricia Dunn: Phone 202-690-1634.

    Done at Washington, DC, on June 23, 1995.
W. Bruce Crain,
Director, AARC Center.
[FR Doc. 95-15911 Filed 6-28-95; 8:45 am]
BILLING CODE 3410-2B-M