[Federal Register Volume 63, Number 40 (Monday, March 2, 1998)]
[Notices]
[Pages 10191-10197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5184]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration
[Docket No. 960223046-8030-03; I.D. 012398C]
RIN 0648-ZA09


Financial Assistance for Research and Development Projects To 
Strengthen and Develop the U.S. Fishing Industry

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and 
Atmospheric Administration (NOAA), Commerce.

ACTION: Notification of solicitation for applications.

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SUMMARY: NMFS issues this document describing the conditions under 
which applications will be accepted under the Saltonstall-Kennedy (S-K) 
Grant Program and how NMFS will select applications for funding.
    The S-K Grant Program assists eligible applicants in carrying out 
research and development projects that address various aspects of U.S. 
fisheries (commercial or recreational), including, but not limited to, 
harvesting, processing, marketing, and associated infrastructures.

DATES: Applications must be received by close of business May 1, 1998, 
in one of the offices listed in ADDRESSES. Applicants must submit one 
signed original and nine signed copies of the completed application 
(including supporting information). No facsimile applications will be 
accepted.

ADDRESSES: Application packages can be obtained from, and completed 
applications sent to any office listed below:
    Regional Administrator, Northeast Region, NMFS, One Blackburn 
Drive, Gloucester, MA 01930; telephone: (978) 281-9267.
    Regional Administrator, Southeast Region, NMFS, Koger Bldg., 9721 
Executive Center Drive, North, St. Petersburg, FL 33702; telephone: 
(813) 570-5324.
    Regional Administrator, Southwest Region, NMFS, 501 West Ocean 
Boulevard, Suite 4200, Long Beach, CA 90802-4213; telephone: (562) 980-
4033.
    Regional Administrator, Northwest Region, NMFS, BIN C15700, 7600 
Sand Point Way, N.E., Seattle, WA 98115; telephone: (206) 526-6115.
    Regional Administrator, Alaska Region, NMFS, P.O. Box 21668, 
Juneau, AK 99802, or Federal Building, 709 West 9th Street, 4th Floor, 
Juneau, AK 99801; telephone: (907) 586-7224.
    In addition, this solicitation and the application package are 
available on the NMFS S-K Home Page at: www.nmfs.gov/sfweb/skhome.html.

FOR FURTHER INFORMATION CONTACT: Alicia L. Jarboe, S-K Program Manager, 
(301) 713-2358.

SUPPLEMENTARY INFORMATION:

I. Introduction

A. Background

    The S-K Act, as amended (15 U.S.C. 713c-3), provides that a fund 
(known as the S-K fund) will be used by the Secretary of Commerce to 
provide grants or cooperative agreements for fisheries research and 
development projects addressed to any aspect of U.S. fisheries, 
including, but not limited to, harvesting, processing, marketing, and 
associated infrastructures. U.S. fisheries 1 include any 
fishery,

[[Page 10192]]

commercial or recreational, that is or may be engaged in by citizens or 
nationals of the United States, or citizens of the Northern Mariana 
Islands, the Republic of the Marshall Islands, Republic of Palau, and 
the Federated States of Micronesia.
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    \1\ For purposes of this document, a fishery is defined as one 
or more stocks of fish, including tuna, and shellfish that are 
identified as a unit based on geographic, scientific, technical, 
recreational and economic characteristics, and any and all phases of 
fishing for such stocks. Examples of a fishery are Alaskan 
groundfish, Pacific whiting, New England whiting, and eastern 
oysters.
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    The funding priorities of the S-K Grant Program have evolved over 
the years since the program began in 1980. The original focus of the 
program was on development of underutilized fisheries within the U.S. 
Exclusive Economic Zone (EEZ). The Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act), originally 
passed in 1976, directed NMFS to provide the domestic fishing industry 
priority access to the fishery resources in the EEZ. In an attempt to 
accelerate development of domestic fisheries, the American Fisheries 
Promotion Act of 1980 amended the
S-K Act to stimulate commercial and recreational fishing efforts in 
underutilized fisheries.
    In the ensuing years, the efforts to Americanize the fisheries were 
successful to the point that most nontraditional species were fully 
developed and traditional fisheries became overfished. Therefore, the 
S-K Program priorities evolved to include a wide range of resource 
conservation and management issues and aquaculture.
    In 1993, NOAA developed a long-range Strategic Plan that included a 
focus on rebuilding fisheries for sustainable use. The NOAA Strategic 
Plan strengthened the basis for the continued shift in the priorities 
of the S-K Program toward issues such as overfishing and bycatch 
reduction.
    The NOAA Fisheries Strategic Plan, produced by NMFS in 1997, 
continues to emphasize management for the sustainable use of living 
marine resources. The NOAA Fisheries Strategic Plan will guide NMFS 
marine resource management decisions over the next 5 years. It includes 
objectives to maintain healthy stocks; eliminate overfishing and 
rebuild overfished stocks; increase long-term economic and social 
benefits from living marine resources; promote environmentally sound 
aquaculture development; recover protected species; reduce conflicts 
involving protected species; and protect, conserve, and restore 
habitat/biodiversity.
    Passage in 1996 of the Sustainable Fisheries Act (Public Law 104-
297), which amended the Magnuson-Stevens Act, supported further 
adjustment to the S-K Program to address the current condition of 
fisheries.
    The Magnuson-Stevens Act recognizes that U.S. fisheries face many 
problems. It also recognizes the adverse effects of fishing in terms of 
bycatch of nontarget species, and habitat impacts. The Magnuson-Stevens 
Act requires that overfishing be stopped and that the problems of U.S. 
fisheries be corrected. Specifically, the Magnuson-Stevens Act requires 
NMFS to undertake efforts to prevent overfishing, rebuild overfished 
fisheries, insure conservation, protect essential fish habitats, and 
realize the full potential of U.S. fishery resources. However, the 
Magnuson-Stevens Act also acknowledges the potential adverse impacts on 
people in making such corrections. Therefore, it requires that 
conservation and management measures, consistent with conservation 
requirements of the Magnuson-Stevens Act, take into account the 
importance of fishery resources to fishing communities in order to 
provide for the sustained participation of such communities and, to the 
extent practicable, minimize adverse economic impacts on such 
communities. A ``fishing community'' is defined in the Magnuson-Stevens 
Act as ``a community which is substantially dependent on or 
substantially engaged in the harvest or processing of fishery resources 
to meet social and economic needs, and includes fishing vessel owners, 
operators, and crew and United States fish processors that are based in 
such community.'' (16 U.S.C. 1802 (16).)
    The 1999 S-K Grant Program announced under this notification will 
address the needs of fishing communities in optimizing economic 
benefits within the context of rebuilding and maintaining sustainable 
fisheries and in dealing with the impacts of conservation and 
management measures. The funding priorities listed under section II of 
this notification identify areas of research and development that 
relate to these needs. The scope of this program is limited to marine 
species and Great Lakes species.
    While the S-K Program continues to be open to applicants from a 
variety of sectors, including industry, academia, and state and local 
governments, successful applicants will be those whose projects 
demonstrate significant direct benefits to fishing communities.

B. Funding

    NMFS issues this document to solicit applications for Federal 
assistance, pursuant to 15 U.S.C. 713c-3(c), describing the conditions 
under which applications will be accepted under the S-K Grant Program 
and how NMFS will select the applications it will fund.
    This notification is published subject to, and funding of projects 
is contingent upon, the appropriation of funds by Congress for this 
program in Fiscal Year (FY) 1999, which begins on October 1, 1998. The 
Administration's request for the S-K Grant Program for FY 1999 is $4 
million.
    Funding under the program will be provided for research, 
development, and technology transfer activities that address the 
funding priorities listed in section II. Funding will not be provided 
for projects that primarily involve infrastructure construction, port 
and harbor development, and start-up or operational costs for private 
business ventures. Furthermore, projects primarily involving data 
collection should be directed to a specific problem or need and be of a 
fixed duration, not of a continuing nature, in order to be considered.

C. Catalogue of Federal Domestic Assistance

    The S-K Grant Program is listed in the ``Catalogue of Federal 
Domestic Assistance'' under number 11.427, Fisheries Development and 
Utilization Research and Development Grants and Cooperative Agreements 
Program.

II. Funding Priorities

    Applicants should insure that their proposals address one of the 
following priorities as they pertain to marine or Great Lakes species. 
If more than one priority is selected, the priority that most closely 
reflects the objectives of the proposal should be listed first in the 
application.
    The priorities are stated here in no particular order.

A. Minimize Interactions Between Fisheries and Protected or Non-
Targeted Species

    Develop methods to eliminate or reduce adverse interactions between 
fishing operations and nontargeted, protected, or prohibited species 
(e.g., juvenile or sublegal-sized fish and shellfish, females of 
certain crabs, marine turtles, seabirds, or marine mammals), including 
the inadvertent take, capture, or destruction of such species.
    Conduct research on behavioral responses of both target and 
nontarget marine organisms to fishing gear and practices, including 
catch and release, in order to facilitate the design of gear and 
practices to actively avoid nontarget organisms.
    Develop methods to improve the survivability of fish discarded or

[[Page 10193]]

intentionally released and protected species released in fishing 
operations, including modifications in gear, fishing practices, and 
handling practices to reduce the detrimental effects of capture and/or 
release, and develop methods to assess both the immediate and delayed 
mortality associated with capture and/or release.
    Develop reliable methods to assess or record the extent and 
composition of fisheries bycatch, especially onboard vessels, to reduce 
the need for labor-intensive and expensive onboard observer programs.

B. Rebuild Overfished Fisheries/Maintain Healthy Fish Stocks

    Develop scientific information, plans, procedures, and methods that 
contribute to the rebuilding of overfished fisheries, including 
information on status of overfished stocks, prototype capacity 
reduction programs, and projects that facilitate the development of 
rebuilding plans for fisheries.
    Conduct biological, economic, social, and other studies to support 
the development of sound management practices for important 
recreational and commercial species.
    Develop alternative or innovative approaches to decrease mortality 
from catch and release fishing.
    Develop innovative approaches to address the transition of fishing 
communities affected by declines in traditional commercial or 
recreational fisheries toward alternate employment, activities, or new 
business opportunities. These may include business planning or 
demonstration projects. However, the S-K Program does not cover 
business start-up and development expenses or ongoing operational 
expenses for individuals or individual companies.
    Develop innovative approaches to improve fisheries management, 
including but not limited to, assessment of alternative management 
systems and resolution of user conflicts.

C. Obtain Maximum Social and Economic Benefits from Harvestable Marine 
Resources

    Contribute to the development of commercial and recreational 
fisheries for underutilized or non-utilized species of potential 
economic importance, while maintaining long-term sustainability.
    Optimize the utilization of harvestable resources through 
innovations in how such resources are targeted, harvested, processed, 
marketed, or released.
    Develop marketable products from economic discards, either whole 
fish discarded because they are an undesirable species, size, or sex, 
or parts of fish discarded as not commercially useful.
    Develop improved approaches to control environmental hazards which 
affect fishery resource health and the safety of harvested fish and 
their products for human consumption.

D. Promote Aquaculture Development in the Marine Environment

    Develop or demonstrate cost-effective approaches for advancing 
environmentally sound public and private mariculture for food, 
enhancement, industrial, and other purposes.
    Develop and evaluate culture systems that reduce the potential for 
negative impacts on wild stocks and protected resources.
    Develop models for aquaculture regulation that address the 
impediments to development caused by current regulatory processes.

E. Conserve and Enhance Essential Fish Habitat

    Develop and test procedures to characterize the condition of 
essential fish habitat (such as water quality criteria, indicators of 
biological integrity, and biodiversity).
    Develop scientific approaches to assess and reduce human induced 
impacts on essential fish habitat.
    If proposals received do not adequately respond to the above listed 
priorities, NMFS may carry out, in addition to the program announced by 
this document, a national program of research and development addressed 
to aspects of U.S. fisheries pursuant to section 713c-3(d) of the S-K 
Act, as amended.

III. How to Apply

A. Eligible Applicants

    Applications for grants or cooperative agreements for fisheries 
research and development projects may be made, in accordance with the 
procedures set forth in this document, by:
    1. Any individual who is a citizen or national of the United 
States;
    2. Any individual who is a citizen of the Northern Mariana Islands 
(NMI), being an individual who qualifies as such under section 8 of the 
Schedule on Transitional Matters attached to the constitution of the 
NMI;
    3. Any individual who is a citizen of the Republic of the Marshall 
Islands, Republic of Palau, or the Federated States of Micronesia; or
    4. Any corporation, partnership, association, or other non-Federal 
entity, non-profit or otherwise, if such entity is a citizen of the 
United States or NMI, within the meaning of section 2 of the Shipping 
Act, 1916, as amended (46 U.S.C. app. 802).
    DOC/NOAA/NMFS are committed to cultural and gender diversity in 
their programs and encourage women and minority individuals and groups 
to submit applications. Recognizing the interest of the Secretaries of 
Commerce and Interior in defining appropriate fisheries policies and 
programs that meet the needs of the U.S. insular areas, applications 
from individuals, government entities, and businesses in U.S. insular 
areas are also encouraged. Furthermore, NMFS encourages applications 
from members of the fishing community, and applications that involve 
fishing community cooperation and participation. The extent of fishing 
community involvement will be considered by the Constituent Panel(s) 
evaluating the potential benefit of funding a proposal.
    DOC/NOAA/NMFS employees, including full-time, part-time, and 
intermittent personnel are not eligible to submit an application under 
this solicitation or aid in the preparation of an application, except 
to provide information on program goals, funding priorities, 
application procedures, and completion of application forms. Since this 
is a competitive program, NMFS employees will not provide assistance in 
conceptualizing, developing, or structuring proposals, or write letters 
of support for a proposal.
    Employees of Federal agencies, and Regional Fishery Management 
Councils and their employees, are not eligible to submit an application 
under this solicitation.

B. Duration and Terms of Funding

    Generally, grants or cooperative agreements are awarded for a 
period of 1 year but no more than 18 months at a time.
    If an application for an award is selected for funding, NMFS has no 
obligation to provide any additional prospective funding in connection 
with that award in subsequent years. Any subsequent proposal to 
continue work on an existing project must be submitted to the 
competitive process for consideration and will not receive preferential 
treatment. Renewal of an award to increase funding for an additional 
period is at the discretion of Commerce.
    Publication of this announcement does not obligate NMFS to award 
any specific grant or cooperative agreement or to obligate any part or 
the entire amount of funds available.

[[Page 10194]]

C. Cost-Sharing

    For this solicitation, NMFS is requiring cost-sharing in order to 
leverage limited funds and to encourage partnerships among government, 
industry, and academia to address the needs of fishing communities. A 
minimum of 10 percent up to a maximum of 50 percent cost-share is 
required. (NMFS must contribute at least 50 percent of total project 
costs, as provided by statute.) Applications that do not provide for at 
least the minimum cost-share will be returned to the applicant and will 
not receive further consideration.
    The non-Federal share may include funds received from private 
sources or from state or local governments or the value of in-kind 
contributions. Federal funds may not be used to meet the non-Federal 
share except as provided by Federal statute. In-kind contributions are 
non-cash contributions provided by the applicant or non-Federal third 
parties. In-kind contributions may be in the form of, but are not 
limited to, personal services rendered in carrying out functions 
related to the project, and permission to use real or personal property 
owned by others (for which consideration is not required) in carrying 
out the project.
    The appropriateness of all cost-sharing proposals, including the 
valuation of in-kind contributions, will be determined on the basis of 
guidance provided in the relevant Office of Management and Budget (OMB) 
Circulars. In general, the value of in-kind services or property used 
to fulfill the applicant's cost-share will be the fair market value of 
the services or property. Thus, the value is equivalent to the costs of 
obtaining such services or property if they had not been donated. 
Appropriate documentation must exist to support in-kind services or 
property used to fulfill the applicant's cost-share.
    The degree to which cost-sharing exceeds the minimum level may be 
taken into account by the NOAA Assistant Administrator for Fisheries 
(AA) in the final selection of projects to be funded. Applicants whose 
proposals are selected for funding will be obligated to account for the 
amount of cost-share reflected in the award documents.

D. Format

    Project applications must be clearly and completely submitted in 
the following format:
    1. Cover sheet. An applicant must use OMB Standard Form 424 and 
424B (4-92) as the cover sheet for each project. (In completing item 16 
of Standard Form 424, see section V.A.5. of this document.)
    2. Project Summary. An applicant must complete NOAA Form 88-204 
(10-95), Project Summary, for each project. The specific priority 
contained in section II of this document to which the application 
responds must be listed on the Project Summary.
    3. Project Budget. A budget must be submitted for each project, 
using NOAA Form 88-205 (10-95), Project Budget and associated 
instructions. The applicants must submit detailed cost estimates 
showing total project costs. Cost-sharing must be indicated as Federal 
and non-Federal shares, divided into cash and in-kind contributions. To 
support the budget, the applicant must describe briefly the basis for 
estimating the value of the cost-sharing derived from in-kind 
contributions. Estimates of the direct costs must be specified in the 
categories listed on the Project Budget form.
    The budget may also include an amount for indirect costs if the 
applicant has an established indirect cost rate with the Federal 
government. 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. The Federal share of the indirect costs may not exceed 25 percent 
of the total proposed direct costs. Applicants with approved indirect 
cost rates above 25 percent of the total proposed direct costs may use 
the amount above the 25-percent level up to the 100-percent level as 
part of the non-Federal share. A copy of the current, approved, 
negotiated indirect cost agreement with the Federal government must be 
included in the application.
    NMFS will not consider fees or profits as allowable costs for 
applicants.
    The total costs of a project consist of all allowable costs 
incurred, including the value of in-kind contributions, in 
accomplishing project objectives during the life of the project. A 
project begins on the effective date of an award agreement between the 
applicant and an authorized representative of the U.S. Government and 
ends on the date specified in the award. Accordingly, the time expended 
and costs incurred in either the development of a project or the 
financial assistance application, or in any subsequent discussions or 
negotiations prior to award, are neither reimbursable nor recognizable 
as part of the cost-share.
    4. Narrative Project Description. The narrative project description 
may be up to 15 pages in length. The narrative should demonstrate 
knowledge of relevant research and development activity, and 
demonstrate how the proposal builds upon any past and current work in 
the subject area, as well as relevant work in related fields. Each 
project must be described as follows:
    a. Project goals and objectives. Identify the problem/opportunity 
to be addressed by the proposed project and what the project is 
expected to accomplish. Identify the specific priority to which the 
project responds. Indicate the size and economic value of the fisheries 
involved and the fishing community affected. If the application is for 
the continuation of a project previously funded under the S-K Program, 
describe in detail the progress to date and explain why additional 
funding is necessary.
    b. Project impacts. Describe the anticipated impacts of the project 
on fishing communities in terms of reduced bycatch, increased product 
yield, or other measurable factors. Describe how the results of the 
project will be made available to the public.
    c. Evaluation of project. Specify the criteria and procedures that 
will be used to evaluate the relative success or failure of a project 
in achieving its objectives.
    d. Need for government financial assistance. Explain why government 
financial assistance is needed for the proposed work. List all other 
sources of funding that are being or have been sought for the project.
    e. Participation by persons or groups other than the applicant. 
Describe the participation by government and non-government entities, 
particularly members of fishing communities, in the project, and the 
nature of such participation.
    f. Federal, state, and local government activities and permits. 
List any existing Federal, state, or local government programs or 
activities that this project would affect, including activities 
requiring certification under state Coastal Zone Management Plans, 
those requiring section 404 or section 10 permits issued by the Corps 
of Engineers, those requiring experimental fishing or other permits 
under fishery management plans, and those requiring scientific permits 
under the Endangered Species Act and/or the Marine Mammal Protection 
Act. Describe the relationship between the project and these plans or 
activities, and list names and addresses of persons providing this 
information.
    g. Project statement of work: The statement of work is an action 
plan of activities to be conducted during the

[[Page 10195]]

period of the project. This section requires the applicant to prepare a 
detailed narrative, fully describing the work to be performed that will 
achieve the previously articulated goals and objectives. The narrative 
should respond to the following questions:
    (1) What is the project design? What specific work, activities, 
procedures, statistical design, or analytical methods will be 
undertaken?
    (2) Who will be responsible for carrying out the various 
activities? (Highlight work that will be subcontracted and provisions 
for competitive subcontracting.)
    (3) What are the major products?
    A milestone chart must be included which graphically illustrates 
the specific activities and associated time lines to conduct the scope 
of work. Time lines should be described in increments (e.g., month 1, 
month 2), rather than by specific dates. The individual(s) responsible 
for the various specific activities shall be identified.
    Because this information is critical to understanding and reviewing 
the application, NMFS encourages applicants to provide sufficient 
detail. Applications lacking sufficient detail may be eliminated from 
further consideration.
    h. Project management. Describe how the project will be organized 
and managed. Identify the principal participants in the project and 
include copies of any agreements between the participants and the 
applicant describing the specific tasks to be performed. Provide a 
statement of the qualifications and experience (e.g., resume or 
curriculum vitae) of the principal investigator(s) and any consultants 
and/or subcontractors, and indicate their level of involvement in the 
project. If any portion of the project will be conducted through 
consultants and/or subcontracts, applicants must follow procurement 
guidance in 15 CFR part 24, ``Grants and Cooperative Agreements to 
State and Local Governments,'' and OMB Circular A-110 for Institutions 
of Higher Education, Hospitals, and Other Non-Profit Organizations. 
Commercial organizations and individuals who apply should use OMB 
Circular A-110. If a consultant and/or subcontractor is selected prior 
to application submission, indicate the process used for selection.
    5. Supporting documentation. This section should include any 
required documents and any additional information necessary or useful 
to the description of the project. The amount of information given in 
this section will depend on the type of project proposed.

IV. Evaluation Criteria and Selection Procedures

A. Evaluation of Proposed Projects

1. Initial Screening of Applications
    Upon receipt NMFS will screen applications for conformance with 
requirements set forth in this document. Applications that do not 
conform to the requirements may not be considered for further 
evaluation. In addition, proposals from ineligible applicants or those 
seeking funds primarily for infrastructure development and business 
costs will not be considered and will be returned to the applicant.
2. Consultation with Interested Parties
    As appropriate, NMFS will consult with NMFS Offices, the NOAA 
Grants Management Division (GMD), Commerce and other Federal and state 
agencies, the Regional Fishery Management Councils, and other 
interested parties who may be affected by or have knowledge of a 
specific proposal or its subject matter.
3. Technical Evaluation
    NMFS will solicit individual technical evaluations of each project 
application from three or more appropriate private and public sector 
experts. These reviewers will assign scores ranging from a minimum of 
60 (poor) to a maximum of 100 (excellent) to applications based on the 
following evaluation criteria, with weights shown in parentheses:
    a. Soundness of project design/conceptual approach. Applications 
will be evaluated on the fishing community need(s) to be addressed by 
the project; the conceptual approach; whether the applicant provided 
sufficient information to evaluate the project technically; and, if so, 
the strengths and/or weaknesses of the technical design relative to 
securing productive results. (50 percent)
    b. Project management and experience and qualifications of 
personnel. The organization and management of the project, and the 
project's principal investigator and other personnel in terms of 
related experience and qualifications will be evaluated. The principal 
investigator must be identified in order for the application to be 
accepted. (25 percent)
    c. Project evaluation. The effectiveness of the applicant's 
proposed methods to monitor and evaluate the success or failure of the 
project in terms of meeting its original objectives will be examined. 
(10 percent)
    d. Project costs. The justification and allocation of the budget in 
terms of the work to be performed will be evaluated. Unreasonably high 
or low project costs will be taken into account. (15 percent)
    In addition to the above criteria, in reviewing applications that 
include consultants and contracts, NMFS will make a determination 
regarding the following:
    (1) Is the involvement of the primary applicant necessary to the 
conduct of the project and the accomplishment of its objectives?
    (2) Is the proposed allocation of the primary applicant's time 
reasonable and commensurate with the applicant's involvement in the 
project?
    (3) Are the proposed costs for the primary applicant's involvement 
in the project reasonable and commensurate with the benefits to be 
derived from the applicant's participation?
4. Constituent Panel(s)
    After the technical evaluation, individual comments will be 
solicited from a panel or panels of three or more representatives 
selected by the AA, from the fishing industry, state government, and 
others, as appropriate, to evaluate and rank the projects. Considered 
in the rankings, along with the technical evaluation, will be the 
significance of the problem or opportunity addressed in the project and 
the degree of involvement by fishing community members. Each panelist 
will rank the projects in terms of importance or need for funding, and 
provide recommendations on the level of funding NMFS should award and 
the merits of funding each project.

B. Selection Procedures and Project Funding

    After projects have been evaluated and ranked, the reviewing NMFS 
offices will develop recommendations for project funding. These 
recommendations will be submitted to the AA who will determine the 
projects to be funded, ensuring that there is no duplication with other 
projects funded by NOAA or other Federal organizations, and that the 
projects selected for funding are those that best meet the objectives 
of the S-K Grant Program.
    The exact amount of funds awarded to a project will be determined 
in preaward negotiations between the applicant and NOAA/NMFS 
representatives. The funding instrument (grant or cooperative 
agreement) will be determined by NOAA GMD. Projects should not be 
initiated in expectation of Federal funding until a notice of award 
document is received.

[[Page 10196]]

V. Administrative Requirements

A. Obligation of the Applicant

    An Applicant must:
    1. Meet all application requirements and provide all information 
necessary for the evaluation of the proposal, including one signed 
original and nine signed copies of the application.
    2. Be available, upon request, to respond to questions during the 
review and evaluation of the proposal(s).
    3. Complete Form CD-511, ``Certification Regarding Debarment, 
Suspension and Other Responsibility Matters; Drug-Free Workplace 
Requirements and Lobbying.'' The following explanations are provided:
    a. 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;
    b. 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;
    c. 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 contracts for more than 
$100,000, and loans and loan guarantees for more than $150,000; and
    d. Anti-lobbying disclosures. Any applicant who 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.
    4. If applicable, require applicants/bidders for subgrants, 
contracts, subcontracts, or other lower tier covered transactions at 
any tier under the award to submit 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 Commerce. An SF-LLL submitted by any tier recipient or subrecipient 
should be submitted to Commerce in accordance with the instructions 
contained in the award document. This requirement applies only to 
applicants whose applications are recommended for funding. All required 
forms will be provided to successful applicants.
    5. Complete item 16 on Standard Form 424 (4-92) regarding clearance 
by the State Point Of Contact (SPOC) established as a result of E.O. 
12372. A list of SPOCs may be obtained from any of the NMFS offices 
listed in this document (see ADDRESSES), and is also included in the 
``Catalog of Federal Domestic Assistance.''
    6. Complete Standard Form 424B (4-92), ``Assurances--Non-
construction Programs.''

B. Obligations of Successful Applicants (Recipients)

    A recipient of a grant award for a project must:
    1. Manage the day-to-day operations of the project, be responsible 
for the performance of all activities for which funds are granted, and 
be responsible for the satisfaction of all administrative and 
managerial conditions imposed by the award.
    2. Keep records sufficient to document any costs incurred under the 
award, and allow access to records for audit and examination by the 
Secretary of Commerce, the Comptroller General of the United States, or 
their authorized representatives; and, submit financial status reports 
(SF 269) to GMD in accordance with the award conditions.
    3. Submit semiannual project status reports on the use of funds and 
progress of the project to NMFS within 30 days after the end of each 6-
month period. These reports will be submitted to the individual 
specified as the NMFS Program Officer in the funding agreement.
    4. Submit a final report within 90 days after completion of each 
project to the NMFS Program Officer. The final report must describe the 
project and include an evaluation of the work performed and the results 
and benefits in sufficient detail to enable NMFS to assess the success 
of the completed project.
    NMFS is committed to using available technology to achieve the 
timely and wide distribution of final reports to those who would 
benefit from this information. Therefore, recipients are required to 
submit final reports in electronic format, in accordance with the award 
terms and conditions, for publication on the NMFS Home Page. Costs 
associated with preparing and transmitting final reports to NMFS in 
electronic format are appropriately funded from the grant award. 
Requests for exemption from this requirement may be considered by NMFS 
on a case-by-case basis.
    Formats for the semiannual and final reports, which have been 
approved by OMB, will be provided to successful applicants.
    5. In order for NMFS to assist the grantee in disseminating 
information, the grantee is requested to submit all publications 
printed with grant funds (in addition to the final report in section 
V.B.4. above) to the NMFS Program Officer. Either three hard copies or 
an electronic version of any such publications should be submitted.

C. Other Requirements

    1. Federal policies and procedures. Recipients and subrecipients 
are subject to all Federal laws and Federal and Commerce policies, 
regulations, and procedures applicable to Federal financial assistance 
awards.
    2. Name check review. All recipients are subject to a name check 
review process. Name checks are intended to reveal if any key 
individuals associated with the recipient have been convicted of, or 
are presently facing, criminal charges such as fraud, theft, perjury, 
or other matters that significantly reflect on the recipient's 
management, honesty, or financial integrity.
    3. Financial management certification/preaward accounting survey. 
Successful applicants for S-K funding, at the discretion of the NOAA 
Grants Officer, may be required to have their financial management 
systems certified by an independent public accountant as being in 
compliance with Federal standards specified in the applicable OMB 
Circulars prior to execution of the award. Any first-time applicant for 
Federal grant funds may be subject to a preaward accounting survey by 
Commerce prior to execution of the award.
    4. Past performance. Unsatisfactory performance under prior Federal 
awards may result in an application not being considered for funding.
    5. Delinquent Federal debts. No award of Federal funds shall be 
made to an applicant or to its subrecipients who have an outstanding 
delinquent Federal debt or fine until either:
    a. The delinquent account is paid in full,
    b. A negotiated repayment schedule is established and at least one 
payment is received, or
    c. Other arrangements satisfactory to Commerce are made.
    6. Buy American. Applicants are hereby notified that they are 
encouraged to the extent feasible to purchase American-made equipment 
and

[[Page 10197]]

products with the funding provided under this program.
    7. 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 may have been received, there is no obligation on the 
part of Commerce to cover preaward costs.
    8. False statements. A false statement on the application is 
grounds for denial or termination of funds and grounds for possible 
punishment by a fine or imprisonment (18 U.S.C. 1001).
Classification
    Prior notice and an opportunity for public comments are not 
required by the Administrative Procedure Act or any other law for this 
notification concerning grants, benefits, and contracts.
    Furthermore, a regulatory flexibility analysis is not required for 
purposes of the Regulatory Flexibility Act.
    This action has been determined to be not significant for purposes 
of E.O. 12866.
    Applications under this program are subject to Executive Order 
12372, ``Intergovernmental Review of Federal Programs.''
    This document contains collection-of-information requirements 
subject to the Paperwork Reduction Act. The collection of this 
information has been approved by OMB under control numbers 0348-0040, 
0348-0043, 0348-0046, and 0648-0135.
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB Control Number.
    A solicitation for applications will also appear in the ``Commerce 
Business Daily.''

    Dated: February 20, 1998.
Rolland A. Schmitten,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
[FR Doc. 98-5184 Filed 2-27-98; 8:45 am]
BILLING CODE 3510-22-P