[Federal Register Volume 61, Number 137 (Tuesday, July 16, 1996)]
[Notices]
[Pages 37047-37048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17986]


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DEPARTMENT OF COMMERCE
Minority Business Development Agency


Nationwide Capital Development Center

AGENCY: Minority Business Development Agency, Commerce.

ACTION: Notice.

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SUMMARY: Funds are available to conduct a competitive solicitation in 
order to select an applicant to operate a nationwide Capital 
Development Center to assist minority business clients to access debt 
and equity capital. This Center, to be operated under detailed work 
requirements established by the Minority Business Development Agency 
(MBDA), will provide client services designed to enable minority 
business enterprises (MBEs) to implement long-term growth strategies by 
securing capital through both mainstream and specialized capital 
markets. Such services shall include analyzing an MBE's financial 
statements, assisting in the preparation of financial plans, 
introduction of the MBE to prospective investors and lenders, and 
assistance in transaction closings. The Center will act as a liaison 
between the MBE community and the capital markets, serving as a 
clearinghouse for available resources and opportunities, and matching 
qualified MBEs with potential funding sources.
    The project will be national in scope, and will serve eligible 
minority firms throughout the fifty states, as provided by the work 
requirements. Firms eligible to receive client assistance shall be 
growth-oriented firms, in business for not less than two years, and who 
seek to engage in capital transactions of $500,000 or more.
    Executive Order 11625, effective October 13, 1991, authorizes MBDA 
to provide management and technical assistance to socially and 
economically disadvantaged businesses and to coordinate Federal efforts 
to assist in the growth and expansion of the nation's minority business 
sector. MBDA has determined that a substantial impediment to minority 
business growth involves the inability to access financial capital. The 
primary objective of this project is to provide management and 
technical assistance to middle-market MBEs who are seeking to approach 
the capital markets to obtain financing. Areas of assistance will 
include: obtaining venture capital financing, the design and 
implementation of financial plans as vehicles for sustained growth, 
replacement of debt with equity capital, and financing business 
acquisitions and mergers.
    The successful applicant will operate the Center for a three-year 
period, subject to agency priorities, recipient performance and the 
availability of funds.

DATES: The closing date for applications is August 15, 1996. 
Applications must be received in the MBDA Headquarters' Executive 
Secretariat on or before August 15, 1996. A pre-application conference 
to assist all interested applicants will be held on July 30, 1996, at 
1:00 p.m., at the U.S. Department of Commerce, 14th and Constitution 
Avenue, N.W., Room 5045, Washington, D.C. 20230.
    PROPER IDENTIFICATION IS REQUIRED FOR ENTRANCE INTO ANY FEDERAL 
BUILDING.

ADDRESSES: Competitive Application Packages for the Capital Development 
Center will be available from MBDA beginning on the date this Notice is 
published. To obtain a copy of the Application Package, please call via 
telephone (202) 482-3261, or facsimile (202) 482-6021, or send a 
written request with two (2) self-addressed mailing labels to Robert 
Hooks, Chief, Resource and Market Division, Minority Business 
Development Agency, Room 5092, U.S. Department of Commerce, 14th & 
Constitution Avenue, N.W., Washington, D.C. 20230.
    Completed proposals should be submitted to the U.S. Department of 
Commerce, Minority Business Development Agency, Executive Secretariat, 
14th and Constitution Avenue, N.W., Room 5073, Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Elio Muller, Associate Director for 
Strategic Planning and Operations, (202) 482-1015.

SUPPLEMENTARY INFORMATION: Contingent upon the availability of Federal 
funds, the cost of performance for the first budget period (13 months) 
from October 1, 1996 to October 31, 1997, is estimated at $588,235. A 
30-day start-up period will be added to the first budget period, making 
it a 13-month award. The application must include a minimum cost-share 
of $88,235 or 15% of the total project cost, through non-Federal 
contributions. The Federal share, to be in the amount of $500,000, 
includes $12,000 for an annual audit fee. Cost-sharing may be in the 
form of cash contributions, client fees, in-kind contributions or 
combinations thereof.
    The funding instrument for this project will be a cooperative 
agreement. Competition is open to individuals, non-profit and for-
profit organizations, state and local governments, American Indian 
tribes and educational institutions.
    Applications will be evaluated on the following criteria: the 
expertise and capabilities of the firm and its staff in addressing the 
capital needs of businesses in general and, more specifically, of 
minority businesses (50 points); the resources available to the firm in 
assisting minority firms to raise capital (10 points); the firm's 
approach (techniques and methodologies) to performing the work 
requirements developed for this project (20 points);

[[Page 37048]]

and the firm's estimated cost of performing the work requirements. An 
application must receive at least 70% of the points assigned to each of 
the evaluation criteria to be considered programmatically acceptable 
and responsive. Those applications determined to be acceptable and 
responsive will then be evaluated by the Director of MBDA. Final award 
selections shall be based on the number of points received, the 
demonstrated responsibility of the applicant, and the determination of 
those most likely to further the MBDA program. Negative audit findings 
and recommendations and unsatisfactory performance under prior Federal 
awards may result in an application not being considered for award. The 
applicant with the highest point score will not necessarily receive the 
award.
    The Capital Development Center operator shall be required to 
contribute at least 15% of the total project cost through non-Federal 
contributions. To assist in this effort, the operator may charge client 
fees for management and technical assistance (M&TA) rendered. Any 
client fees charged for services rendered under this award must be 
charged at rates determined under an established fee policy approved by 
the Department of Commerce (DOC).
    If an application is selected for funding, DOC 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 DOC. Awards under this 
program shall be subject to all Federal laws, Federal and Departmental 
regulations, policies and procedures applicable to Federal assistance 
awards.
    Quarterly reviews culminating in year-end evaluations will be 
conducted to determine if funding for the project should continue. 
Continued funding will be at the total discretion of MBDA based on such 
factors as the operator's performance, the availability of funds and 
Agency priorities. The anticipated processing time for this award is 90 
days.
    Pre-Award Costs--Applicants are hereby notified that if they 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 assurance that an applicant may have received, there is no 
obligation on the part of the Department of Commerce to cover pre-award 
costs.
    Outstanding Accounts Receivable--No award of Federal funds shall be 
made to an applicant who has an outstanding delinquent Federal debt 
until either the delinquent account is paid in full, or a repayment 
schedule is established and at least one payment is received, or other 
arrangements satisfactory to the Department of Commerce are made.
    Name Check Policy--All non-profit and for-profit applicants are 
subject to a name check review process. Name checks are intended to 
reveal whether any key individuals associated with the applicant have 
been convicted 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.
    Award Termination--The Departmental Grants Officer may terminate 
any grant/cooperative agreement in whole or in part at any time before 
the date of completion whenever it is determined that the award 
recipient has failed to comply with the conditions of the grant/
cooperative agreement. Examples of some of the conditions which can 
cause termination are failure to meet cost-sharing requirements; 
unsatisfactory performance of the MBDC work requirements; and reporting 
inaccurate or inflated claims of client assistance. Such inaccurate or 
inflated claims may be deemed illegal and punishable by law.
    False Statements--A false statement on an application for Federal 
financial assistance 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.
    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.''
    Non-Procurement Debarment and Suspension--Prospective participants 
(as defined at 15 CFR, Part 26, Section 26.105) are subject to 15 CFR, 
Part 26, ``Non-Procurement Debarment and Suspension'' and the related 
section of the certification form prescribed above applies.
    Drug-Free Workplace--Grantees (as defined at 15 CFR, Part 26, 
Section 26.605) are subject to 15 CFR, Part 26, Subpart F, 
``Government-wide Requirements for Drug-Free Workplace (Grants)'' and 
the related section of the certification form prescribed above applies.
    Anti-Lobbying--Persons (as defined at 15 CFR, Part 28, Section 
28.105) 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 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.
    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.
    Lower Tier Certifications--Recipients shall require applications/
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 DOC. SF-LLL 
submitted by any tier recipient and should not be transmitted to DOC in 
accordance with the instructions contained in the award document.
    Buy American-Made Equipment or Products--Applicants are hereby 
notified that they are encouraged, to the extent feasible, 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 103-121, Sections 606 (a) and (b).

    Dated: July 10, 1996.
Frances B. Douglas,
Alternate, Federal Register Liaison Officer, Minority Business 
Development Agency.
[FR Doc. 96-17986 Filed 7-15-96; 8:45 am]
BILLING CODE 3510-21-M