[Federal Register Volume 61, Number 115 (Thursday, June 13, 1996)]
[Notices]
[Pages 30033-30037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15013]



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DEPARTMENT OF COMMERCE
[Docket No. 950207043-6128-02]
RIN 0625-ZA03


Market Development Cooperator Program

AGENCY: International Trade Administration (ITA), Commerce.

ACTION: Notice.

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SUMMARY: The mission of ITA is to promote U.S. exports and to 
strengthen the international trade position of the United States. 
Building partnerships with the private sector enhances ITA's ability to 
fulfill its mission. To encourage such partnerships, ITA has created 
the Market Development Cooperator Program (MDCP) to develop, maintain 
and expand markets for nonagricultural goods and services produced in 
the United States.
    The MDCP aims to:
     Challenge the private sector to think strategically about 
foreign markets;
     Be the catalyst that spurs private sector innovation and 
investment in export marketing; and
     Increase the number of American companies taking decisive 
export actions.
    The advantage of a joint effort is that it permits the Government 
to pool expertise and funds with non-Federal sources so that each 
maximizes its market development resources. Partnerships of this sort 
also may provide a sharper focus on long-term export market development 
than do traditional trade promotion activities and serve as a mechanism 
for improving Government-industry relations.
    While the Department of Commerce sponsors, guides and partially 
funds the MDCP with a matching requirement by the recipient, the 
Department of Commerce expects applicants to develop, initiate and 
carry out market development project activities. As an active partner, 
ITA will provide assistance identified by the applicant as being 
essential to the achievement of project goals and objectives. U.S. 
industry is best able to assess its problems and needs in the foreign 
marketplace and to recommend innovative solutions and programs that can 
be the formula to success in international trade.
    Examples of activities that might be included in an applicant's 
project are described below. No one of these activities or any 
combination of these activities must be included for a proposal to 
receive favorable consideration. The Department of Commerce encourages 
applicants to propose activities that (1) would be most appropriate to 
market development needs of their industry or industries; and (2) 
display the imagination and innovation of the applicant working in 
partnership with the Government to obtain the maximum market 
development impact.
    A public meeting for parties considering applying for funding under 
the MDCP will be held on July 11, 1996. Attendance at this public 
meeting is not required of potential applicants. The purpose of the 
meeting is to provide general information regarding the MDCP 
procedures, selection process, and proposal preparation to potential 
applicants. No discussion of specific proposals will occur at this 
meeting.

DATES: The public meeting will be held July 11, 1996. Completed 
applications must be received no later than 5:00 p.m. Eastern Standard 
Time August 8, 1996. Competitive application kits will be available 
from the Department of Commerce starting June 13, 1996.

ADDRESSES: The public meeting will be held at the Herbert Clark Hoover 
Building, U.S. Department of Commerce, 14th and Constitution Avenue, 
N.W., Washington, D.C. Contact the information contact for room 
location.
    To obtain an application kit, please send a written request with a 
self-addressed mailing label to Mr. Greg O'Connor, Manager, Market 
Development Cooperator Program, Trade Development/OPCRM, Room 3211, 
U.S. Department of Commerce, Washington, D.C. 20230. Application kits 
may also be picked up in Room 3211, U.S. Department of Commerce, 14th 
and Constitution Avenue, N.W., Washington, D.C. 20230. The application 
kit contains all forms necessary to participate in the MDCP application 
process.
    Please send completed applications to the Office of Planning, 
Coordination and Resource Management, Trade Development, Room 3211, 
14th & Constitution Avenue, N.W., Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Mr. Greg O'Connor, Manager, Market 
Development Cooperator Program, Trade Development, Room 3211, 
Washington, D.C. 20230, (202) 482-3197.

[[Page 30034]]

SUPPLEMENTARY INFORMATION:

    Authority: The Omnibus Trade and Competitiveness Act of 1988, 
Pub. L. No. 100-418, Title II, sec. 2303, 102 Stat. 1342, 15 U.S.C. 
4723.

    Catalog of Federal Domestic Assistance (CFDA): No. 11.112, 
Market Development Cooperator Program.

    Program Description: The goal of the MDCP identified in authorizing 
legislation is to develop, maintain, and expand foreign markets for 
nonagricultural goods and services produced in the United States. For 
purposes of this program, ``nonagricultural goods and services'' means 
goods and services other than agricultural products as defined in 7 
U.S.C. 451. ``Produced in the United States'' means having substantial 
inputs of materials and labor originating in the United States, such 
inputs constituting at least 50 percent of the value of the good or 
service to be exported. The intended beneficiaries of the program are 
U.S. producers of nonagricultural goods or services that seek to export 
such goods or services.
    MDCP funds should not be viewed as a replacement for funding from 
other sources, either public or private. An important aspect of this 
program is to increase the sum of Federal and non-Federal export market 
development activities. This result can best be achieved by using 
program funds to encourage new initiatives. In addition to new 
initiatives, expansion of the scope of an existing project also may 
qualify for funding consideration. Eligible organizations that have 
previously received an MDCP award must propose a new project or 
expansion of an existing project to receive consideration for a new 
award.
    The Department of Commerce encourages applicants to propose 
activities that would be most appropriate to the market development 
needs of their U.S. industry or industries. The following are examples 
of activities which applicants might include in an application (no one 
of these activities or any combination of these activities must be 
included for an application to receive favorable consideration). Many 
of these activities are being undertaken by current Market Development 
Cooperator Program award winners:
    (1) Opening an overseas office or offices to perform a variety of 
market development services for companies joining a consortium to avail 
themselves of such services; such an office should not duplicate the 
programs or services of the U.S. and Foreign Commercial Service 
(US&FCS) post(s) in the region, but could include co-location with a 
US&FCS Commercial Center;
    (2) Detailing a private sector individual to a US&FCS post in 
accordance with 15 U.S.C. 4723(c);
    (3) Entering into a contract with a market research company to 
conduct detailed, product-specific market research;
    (4) Assigning industry specialists to work with Department of 
Commerce/U.S. Executive Director Procurement Liaison Offices at the 
Multilateral Development Banks to seek out and develop procurement 
opportunities;
    (5) Underwriting the cost of overseas market research or overseas 
trade exhibitions and trade missions to promote U.S. exports, or 
covering the expenses of reverse trade missions and/or foreign buyer 
group travel to U.S. domestic trade shows;
    (6) Overseas U.S. product demonstrations;
    (7) Export seminars in the United States or market penetration 
seminars in the market(s) to be developed;
    (8) Technical trade servicing that helps overseas buyers to choose 
the right U.S. good(s) or service(s) and to use the good or service 
efficiently;
    (9) Joint promotions of U.S. goods or services, with foreign 
customers;
    (10) Training of foreign nationals to perform after-sales service 
or to act as distributors for U.S. goods or services;
    (11) Working with organizations in the foreign marketplace 
responsible for setting standards and for product testing to improve 
market access for U.S. goods or services;
    (12) Publishing an export resource guide or an export product 
directory for the U.S. industry or industries in question if no 
comparable one exists; and
    (13) Establishing an electronic business information system to 
identify trade leads and facilitate matches with foreign partners.
    Funding Availability: The total amount of funds available for this 
program is $2.0 million for fiscal year (FY) 96. The Department expects 
to conclude a minimum of four (4) cooperative agreements with eligible 
entities for this program. Each cooperative agreement will not exceed a 
total of $500,000, regardless of the duration of the award.
    Matching Requirements: Applicants will be expected to supply two 
thirds (\2/3\) of total project costs, with the Federal portion to be 
one third (\1/3\). The Department of Commerce will support only a 
portion of the direct costs of each project. Each applicant will 
support a portion of the direct costs (to be specified in the 
application). Generally, direct costs are those that are specifically 
associated with an award, and usually include expenses such as 
personnel, fringe benefits, travel, equipment, supplies and contractual 
obligations relating directly to program activity. Allowable costs will 
be determined on the basis of the applicable cost principles, i.e., OMB 
Circulars A-21, A-87, and A-122; 45 CFR Part 74, Appendix E; and 48 CFR 
Part 31. No indirect costs will be paid with Department of Commerce 
funding under this program.
    A minimum of one half (\1/2\) of each applicant's support must be 
in the form of new cash outlays expressly for the project. The balance 
of the applicant's support may consist of in-kind contributions (goods 
and services). In the proposed budget, all in-kind contributions to be 
used in meeting the applicant's share of costs should be listed in a 
separate column from cash contributions. A separate budget narrative 
describing these in-kind contributions should also be included with the 
proposal. This information should be in sufficient detail for a 
determination to be made that the requirements of OMB Circular A-110, 
section 23(a), and 15 CFR Part 24.24 (a) and (b) are met.
    Applicants may charge companies in the industry or other industry 
organizations reasonable fees to take part in or avail themselves of 
services provided as part of applicants' projects. Applicants should 
describe in detail plans to charge fees.
    Type of Funding Instrument: Since ITA will be substantially 
involved in the implementation of each project for which an award is 
made, the funding instrument for this program will be a cooperative 
agreement. For each award, the recipient and ITA Program Officer shall 
establish a project team to include personnel from ITA. The project 
team will: collaborate with the recipient by working jointly with the 
recipient in carrying out the scope of work of the project effort; 
specify direction or redirection of the scope of work due to inter-
relationships with other projects such as requiring the recipient to 
achieve a specific level of cooperation with other projects; and 
determine mode of project operations and other management processes, 
coupled with close monitoring or operational involvement during 
performance of the project.
    Eligibility Criteria: Trade associations, nonprofit industry 
organizations, state trade departments and their regional associations 
including centers for international trade development, and private 
industry firms or groups of firms

[[Page 30035]]

in cases where no entity described above represents that industry are 
eligible to apply for cooperative agreements under this program. For 
the purpose of this program, a ``nonprofit industry organization'' is 
defined as any nonprofit organization (such as some chambers of 
commerce and world trade centers) made up of firms in an industry, or 
which is established or funded by and which operates on behalf of an 
industry. For the purpose of this program, a ``trade association'' is 
defined as consisting of member firms in the same industry, or in 
related industries, or which share common commercial concerns. The 
purpose of the trade association is to further the commercial interests 
of its members through the exchange of information, legislative 
activities, and the like.
    Eligible entities may join together to submit an application as a 
joint venture and to share costs. One organization must be designated 
as the recipient organization for administrative purposes for joint 
venture applicants. For example, two trade associations representing 
different segments of a single industry or related industries may pool 
their resources and submit one application. Foreign businesses and 
private groups also may join with eligible U.S. organizations to submit 
applications and to share the costs of proposed projects. The 
Department of Commerce will accept applications from eligible entities 
representing any industry, subsector of an industry or related 
industries. Each applicant must permit all companies in the industry in 
question to participate, on equal terms, in all activities that are 
scheduled as part of a proposed project whether or not the company is a 
member or constituent of the eligible organization.
    Eligible entities desiring to participate in this program must 
demonstrate the ability to provide a competent, experienced staff and 
other resources to assure adequate development, supervision and 
execution of the proposed project activities. Applicants must describe 
in detail all assistance expected from the Department of Commerce or 
other Federal Government agencies to implement project activities 
successfully. Each applicant must provide a description of the 
membership qualifications, structure and composition of the eligible 
entity, the degree to which the entity represents the industry or 
industries in question, and the role, if any, foreign membership plays 
in the affairs of the eligible entity. Applicants should summarize both 
the recent history of their industry or industries' competitiveness in 
the international marketplace and the export promotion history of the 
eligible entity or entities submitting the application.
    Project proposals must be compatible with U.S. trade and commercial 
policy.
    Award Period: Funds may be expended over the period of time 
required to complete the scope of work, but not to exceed three (3) 
years from the date of the award.
    Indirect Costs: The total dollar amount of the indirect costs 
proposed in an application under this program must not exceed the 
indirect cost rate negotiated and approved by a cognizant Federal 
agency prior to the proposed effective date of the award or 100 percent 
of the total proposed direct costs dollar amount in the application, 
whichever is less. Department of Commerce funds can not be used to pay 
indirect costs.
    Application Forms and Kit: Standard Forms 424 (Rev. 4-92) 
Application for Federal Assistance, 424A (Rev. 4-92) Budget 
Information--Non-Construction Programs, 424B (Rev. 4-92) Assurances--
Non-Construction Programs, SF-LLL, Disclosure of Lobbying Activities 
and other Department of Commerce forms (CD-511, Certifications 
Regarding Debarment, Suspension and Other Responsibility Matters; Drug-
Free Workplace Requirements and Lobbying; CD-512, Certifications 
Regarding Debarment, Suspension, Ineligibility and Voluntary 
Exclusion--Lower Tier Covered Transactions and Lobbying), which are 
required as part of the application, are available from the contact 
person indicated above. Applicants must submit a signed original and 
two (2) copies of the application and supporting materials.
    Project Funding Priorities: Applications may be targeted for any 
market in the world and/or industry covered by ITA's industry units 
(Technology and Aerospace Industries, Basic Industries, Service 
Industries and Finance, Textiles, Apparel and Consumer Goods 
Industries, Environmental Technologies Exports and Tourism Industries). 
In ITA's view the following markets and industry sectors offer 
exceptional opportunities for U.S. exports and export related job 
creation or support in the U.S.:
    Geographic Markets: The Big Emerging Markets (BEMs) of Argentina, 
the Association of Southeast Asian Nations (ASEAN--Brunei, Indonesia, 
Malaysia, the Philippines, Singapore, Thailand and Vietnam), Brazil, 
the Chinese Economic Area (Peoples Republic of China, Taiwan and Hong 
Kong), India, Korea (South), Mexico, Poland, South Africa, and Turkey. 
In addition to the BEMs, strong relations with mature export markets 
such as Europe and Japan are encouraged.
    Sectors: Major project infrastructure development, transportation 
technologies, energy technologies, information technologies, health 
technologies, environmental technologies and financial services.
    In addition, projects that concentrate on the following priorities 
present opportunities to develop, maintain and expand overseas markets 
and create and support U.S. jobs:
    (1.) Advocacy: (a.) Assistance to U.S. companies/consortia bidding 
on major foreign contracts; (b.) Development of a response to foreign 
anti-competitive practices, such as bribery and subsidies, that 
unfairly disadvantage U.S. companies in global competitions;
    (2.) Trade Agreements Monitoring: Monitoring of foreign compliance 
with our trade agreements such as NAFTA, WTO and sector-specific 
agreements;
    (3.) Facilitating the involvement in exporting of small and medium-
sized U.S. businesses and traditionally disadvantaged or under served 
groups, especially as suppliers/subcontractors for major infrastructure 
projects;
    (4.) Working cooperatively to support ITA market development 
initiatives. Examples of such activities could include: participating 
in the activities of Business Development Committees or Councils ITA 
establishes with other countries such as Argentina, Brazil, Russia, 
South Africa, India, China; locating an office at, or actively 
utilizing the facilities of a U.S. Department of Commerce-sponsored 
Commerical Center, such as those already established in Sao Paulo, 
Brazil and Jakarta, Indonesia and soon-to-be established in Shanghai, 
China; and supporting ITA-sponsored trade events.
    Developing a project plan requires solid background research. 
Applicants should study, and applications should reflect such study of, 
the following:
    1. The market potential of the U.S. good(s) or service(s) to be 
promoted in a particular market(s),
    2. The competition from host-country and third-country suppliers, 
and
    3. The economic situation and prospects that bear upon the ability 
of a country to import the U.S. good(s) or service(s).
    Applicants should present in their applications an assessment of 
industry resources that can be brought to bear on developing a market; 
the industry's ability to meet potential market demand expeditiously; 
and the industry's after-sales service capability in a particular 
foreign market(s).

[[Page 30036]]

    After describing their completed basic research, applicants should 
develop marketing plans that set forth the overall objectives of the 
projects and the specific activities applicants will undertake as part 
of these projects. Applications should display the imagination and 
innovation of the private sector working in partnership with the 
Government to obtain the maximum market development impact.
    Evaluation Criteria: The Department of Commerce is interested in 
projects that demonstrate the possibility of both significant results 
during the project period and lasting benefits extending beyond the 
project period. To that end, consideration for financial assistance 
under the MDCP will be based upon the following evaluation criteria:
    (1) Potential of the project to generate export sales or major 
foreign project/contract success stories in both the short and medium-
term. Applicant should provide estimates of projected project results, 
along with detailed explanations.
    (2) The degree to which the proposal furthers or is compatible with 
ITA's priorities and the markets and industry sectors identified above 
and the degree to which a proposal initiates or enhances partnership 
with the Department of Commerce.
    (3) Creativity and innovation displayed by the work plan while at 
the same time being realistic.
    (4) The institutional capacity of the applicant to carry out the 
work plan and the willingness and ability of the applicant to back up 
promotional activities with aggressive marketing and after-sales 
service.
    (5) Reasonableness of the itemized budget for project activities 
and probability that the project can be continued on a self-sustained 
basis after the completion of the award.
    (6) Projected increase in the number of U.S. companies operating 
(multiplier effect) in the market(s) selected. Applicant should provide 
quantifiable estimates of projected increases. Intent and capability of 
the applicant to enlist the participation of small and medium size U.S. 
companies in consortia and activities that are to be part of the 
proposed project.
Evaluation Criteria
Criterion #1--maximum 20 points
Criterion #2--maximum 20 points
Criterion #3--maximum 20 points
Criterion #4--maximum 15 points
Criterion #5--maximum 15 points
Criterion #6--maximum 10 points

    Selection Procedures: Each application will receive an independent, 
objective review by a panel qualified to evaluate the applications 
submitted under the program. The Senior Officer Review Panel, 
consisting of at least three people, will review all applications based 
on the criteria stated above. The Senior Officer Review Panel will 
identify and rank the top ten proposals and make recommendations to the 
Assistant Secretary for Trade Development concerning which of the 
proposals should receive awards. The Assistant Secretary for Trade 
Development will make the final recommendations regarding the funding 
of applications from the group of ten identified by the Senior Officer 
Review Panel.
    In making his decision, the Assistant Secretary for Trade 
Development will consider the following:
    1. The evaluations of the individual reviewers of the Senior 
Officer Review Panel;
    2. The degree to which applications satisfy the MDCP's goals and 
objectives as established under the Project Funding Priorities listed 
above;
    3. The geographic distribution of the proposed awards;
    4. The diversity of industry sectors covered by the proposed grant 
awards;
    5. The diversity of project activities represented by the proposed 
awards;
    6. Avoidance of redundancy and conflicts with the initiatives of 
other Federal agencies; and
    7. The availability of funds.

Performance Measures

    On August 3, 1993, the Government Performance and Results Act 
(GPRA) was enacted into law (Public Law 103-62). Section 4 of the GPRA 
requires each agency to submit to the Office of Management and Budget 
(OMB), beginning with FY 99, a strategic plan for program activities. 
Among other things, each plan is to include ``performance indicators to 
be used in measuring or assessing the relevant outputs, service levels 
and outcomes of each program activity.''
    OMB decided not to wait to begin development of the new performance 
indicators called for in GPRA. As part of the process of preparing the 
President's FY 1996 budget, OMB asked agencies to submit prospective 
GPRA-type performance indicators they intend to use in future years.
    Accordingly, current MDCP participants were asked to identify new 
GPRA-type performance indicators as part of their FY 1996 operating 
plans. These indicators will include not only program inputs and 
outputs, but also measures that may be applied to determine outcomes 
(what happens as a direct result of an output being created) or final 
impacts (the effect of an outcome).
    Applicants for this year's MDCP competition should describe in 
their proposals performance indicators of the type envisioned by GPRA 
that they intend to use to measure the results of their MDCP projects. 
Applicants should consult the MDCP application kit for more 
information, key terms and definitions used in developing performance 
indicators under GPRA.

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 Government. Notwithstanding any verbal or written 
assurance that they may have 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, the Department of Commerce has 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 Department of Commerce.
    (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 non-profit and for-profit 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,

[[Page 30037]]

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. Grantees (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, 
``Limitations 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 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 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. Buy 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.
    Classification: This notice has been determined to be not 
significant for purposes of Executive Order 12866. The standard forms 
reference in this notice are cleared under OMB Control No. 0348-0043, 
0348-0044, 0348-0040, and 0348-0046 pursuant to the Paperwork Reduction 
Act.

    Dated: June 7, 1996.
Jerome S. Morse,
Director, Resource Management and Planning, Staff, Trade Development.
[FR Doc. 96-15013 Filed 6-12-96; 8:45 am]
BILLING CODE 3510-DR-P