[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11416-11421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5910]


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DEPARTMENT OF COMMERCE

International Trade Administration
[Docket No. 970424097-8019-03]
RIN 0625-ZA05


Market Development Cooperator Program

AGENCY: International Trade Administration (ITA), Commerce.

ACTION: Notice.

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SUMMARY: ITA promotes U.S. exports and works to improve the global 
competitiveness of the United States, creating jobs for Americans. ITA 
has created the Market Development Cooperator Program (MDCP) to build 
public/private export marketing partnerships. The MDCP is a competitive 
matching grants program that provides federal assistance to non-profit 
export multipliers such as states, trade associations, chambers of 
commerce, world trade centers and other non-profit industry groups that 
are particularly effective in reaching small-and medium-size 
enterprises (SMEs). MDCP awards help to underwrite the start up costs 
of exciting new export promotion ventures which these groups are often 
reluctant to undertake without federal government support.
    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, particularly 
SMEs, taking decisive export actions.
    The advantage of a joint effort is that it permits the federal 
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, as appropriate, 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 proposal are described below. No one 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 the 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 April 3. Attendance at this public meeting is 
not required of potential applicants. The purpose of the meeting is to 
provide general information to potential applicants regarding MDCP 
procedures, selection process, and proposal preparation. No discussion 
of specific proposals will occur at this meeting.

DATES: The public meeting will be held from 2-4 p.m, on April 3, in 
Room 6808, at the Herbert Clark Hoover Building, 14th and Constitution 
Avenue, N.W., Washington, D.C. Completed applications must be received 
no later than 5 p.m. Eastern Standard Time May 4, 1998. Late 
applications will not be

[[Page 11417]]

accepted. They will be returned to sender. Application kits will be 
available from the Department of Commerce starting March 9, 1998.

ADDRESSES: The public meeting will be held from 2-4 p.m., on April 3, 
in Room 6808, at the Herbert Clark Hoover Building, U.S. Department of 
Commerce, 14th and Constitution Avenue, N.W., Washington, D.C.
    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 3221, 
U.S. Department of Commerce, Washington, D.C. 20230. Application kits 
may also be picked up in Room 3209, 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 3221, 
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 3221, 
Washington, D.C. 20230, (202) 482-3197.

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 have been undertaken by current and past MDCP 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) Commissioning overseas market research, participating in 
overseas trade exhibitions and trade missions to promote U.S. exports, 
and/or hosting reverse trade missions;
    (4) Overseas U.S. product demonstrations;
    (5) Export seminars in the United States or market penetration 
seminars in the market(s) to be developed;
    (6) Technical trade servicing that helps overseas buyers choose the 
right U.S. goods or services and to use the good or service 
efficiently;
    (7) Joint promotions of U.S. goods or services with foreign 
partners;
    (8) Training of foreign nationals to perform after-sales service or 
to act as distributors for U.S. goods or services;
    (9) 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;
    (10) 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
    (11) Establishing an electronic business information system to 
identify overseas trade leads and facilitate matches with foreign 
partners for U.S. businesses.

Funding Availability

    The total amount of funds available for this program is $2.0 to 
$2.25 million for fiscal year (FY) 98. The Department expects to 
conclude a minimum of five (5) cooperative agreements with eligible 
entities for this program. No award will exceed $400,000, regardless of 
the duration of the cooperative agreement.

Matching Requirements

    To receive MDCP funding, the applicant must contribute at least two 
dollars for each federal dollar provided. In satisfying this matching 
requirement, the applicant must make one dollar of new cash outlays 
expressly for the project for each federal dollar of MDCP funding. The 
balance of the applicant's support may consist of in-kind contributions 
(goods and services). Recipient cash contributions are defined in OMB 
Circular A-110, Sec. ____.2(f) as the recipient's cash outlay, 
including the outlay of money contributed to the recipient by third 
parties. In order for a recipient to outlay cash contributed by a third 
party, the third party must transfer the funds to the recipient. 
Otherwise, expenditures for goods and services contributed by a third 
party are considered to be in-kind contributions. For example, an 
applicant requesting $200,000 of federal funds must supply, at a 
minimum, $200,000 of new cash outlays expressly for the project. The 
remaining $200,000 of the required match can be made up of additional 
new cash outlays or in-kind contributions.
    Applicants may propose projects for which the applicant's match 
will exceed two applicant dollars to each federal dollar. However, 
private sector matches exceeding program guidelines have consequences 
in the disbursement of funds. A cost share ratio is established for 
each award winner based upon the award winner's share of the total cost 
of the project. Funds are disbursed using this ratio. For example, a 
project for which the applicant will assume 3/4 of the total cost will 
have a cost share ratio of 75 percent applicant/25 percent federal. In 
requesting a disbursement of federal dollars, the award winner will 
have to generate $3 in grant expenditures for each dollar it wants to 
obtain in federal grant monies.
    In the proposed budget, all in-kind contributions to be used in 
meeting the

[[Page 11418]]

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.
    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.
    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. Fees generated under the award 
are program income and must be used for project related purposes during 
the award period.

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. To administer each 
cooperative agreement, a project team is established including key 
personnel from the award winning organization and officials from ITA 
who can help award winners achieve MDCP project objectives. If 
representatives from other federal agencies can make a meaningful 
contribution to the achievement of project objectives, they are invited 
to participate on the project team.
    Each project team acts as a ``board of directors'' specifying 
direction or redirection of the scope of work of the project and 
determining mode of project operations and other management processes, 
coupled with close monitoring or operational involvement during 
performance of project activities. At the beginning of each fiscal 
year, the project team negotiates an annual operating plan setting 
forth specific activities that will take place, project 
responsibilities and how much each activity will cost. In addition to 
participating on project teams, ITA staff may work directly on 
individual MDCP project activities.

Eligibility Criteria

    U.S. 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 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 ``trade association'' is 
defined as a fee based organization 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.
    For the purpose of this program, a ``nonprofit industry 
organization'' is an organization that is classified as a nonprofit 
organization under Title 26 U.S.C. Section 501(c) (3), (4), (5), or (6) 
and operates as one of the following:
    (1) A local, state, regional, or national chamber of commerce; (2) 
a local, state, regional, or national board of trade; (3) a local, 
state, regional, or national business, export or trade council/interest 
group; (4) a local, state, regional, or national visitors bureau or 
tourism promotion group; (5) a local, state, regional, or national 
economic development group; (6) a Small Business Administration Small 
Business Development Center; (7) a world trade center; (8) a port 
authority; or a (9) free trade zone.
    Prospective applicants are strongly encouraged to seek advice on 
their eligibility to enter the MDCP competition, according to the 
criteria above. To obtain advice regarding eligibility, the applicant 
should submit basic organizational documents (e.g. charters, articles 
of incorporation) and information on types of members, membership fees, 
ties to state trade departments or their regional associations, 
organizations's purpose, and activities, and IRS status. All requests 
for advice regarding eligibility should be received no later than April 
3, 1998. Applicants are advised to continue working on proposals while 
awaiting advice on eligibility. Absolutely no extensions of the 
deadline for submitting applications will be granted.
    Eligible U.S. entities may join together to submit an application 
as a joint venture and to share costs. For joint venture applicants, 
one organization meeting the above eligibility criteria must be 
designated as the prospective MDCP grant recipient organization for 
administrative purposes. 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 an established 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 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. Additional information delineating U.S. commercial policy may 
be obtained from the 1997 Trade Promotion Coordinating Committee's 
National Export Strategy.

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.

[[Page 11419]]

Indirect Costs

    Department of Commerce funds can not be used to pay indirect costs. 
The total dollar amount of the indirect costs proposed in an 
application under this program (using recipient funds) 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.

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

    ITA is especially interested in receiving proposals that focus in 
whole or in part on the following ITA priorities:
    (1) Monitoring foreign compliance with our trade agreements such as 
NAFTA, WTO and sector-specific agreements;
    (2) Identifying and working to eliminate tariff and non-tariff 
barriers to market access for U.S. goods or services, including working 
with organizations in the foreign marketplace responsible for setting 
standards and for product testing;
    (3) Understanding the export aversion of SMEs, targeting export-
ready SMEs, and offering export assistance services designed to meet 
the special needs of SMEs as opposed to just offering SMEs the 
opportunity to participate in activities aimed broadly at the entire 
export marketing community;
    (4) Improving communication with and outreach to old and new 
private sector international trade constituencies and initiating or 
enhancing public/private export partnerships.
    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).

Background Research

    Developing a project plan requires solid background research. 
Applicants should study, and applications should reflect the findings 
of 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).
    In their applications, applicants should present 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).
    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 success stories 
and/or export initiatives in both the short and medium-term. For 
purposes of this program, an export initiative is defined as a 
significant expenditure of resources (time, people or money) by the CEO 
of a company in the active pursuit of export sales. Examples of export 
initiatives include, but are not limited to the following:
    (a) An overseas trip by a CEO to explore a new market;
    (b) Participation in an overseas trade promotion event;
    (c) Hiring an export manager;
    (d) Establishing an export department;
    (e) Enrolling in a college level export marketing course;
    (f) Developing an export marketing/business plan;
    (g) Translation of product literature into a foreign language;
    (h) Making product modifications to comply with foreign market 
requirements;
    (i) Commissioning an in-depth market research study;
    (j) Advertising in a foreign business publication;
    (k) Undertaking an overseas direct mail campaign to create product 
awareness;
    (l) Signing an agent/distributor;
    (m) Introduction to a potential foreign buyer;
    (n) Signing an export contract/filling an export order.
    (o) Co-location with a US&FCS Commercial Center.
    Applicants should provide detailed explanations of projected 
project results.
    (2) Projected increase (multiplier effect) in the number of U.S. 
companies operating in the market(s) selected, particularly SMEs, and 
the degree to which the project will help the industry in question 
increase or maintain market share in the market/s selected. Applicant 
should provide quantifiable estimates of projected increases.
    (3) The degree to which the proposal furthers or is compatible with 
ITA's priorities stated above and the degree to which a proposal 
initiates or enhances partnership with the Department of Commerce.
    (4) Creativity and innovation displayed by the work plan while at 
the same time being realistic and the institutional capacity of the 
applicant to carry out the work plan. Creativity and innovation can be 
displayed in a variety of ways. Applicants might propose projects that 
include ideas not previously tried before to promote a particular 
industry's goods or services in a particular market. Creativity can be 
demonstrated by the manner in which techniques are customized to meet 
the specific needs of certain client groups. A proposal can be creative 
in the way it brings together the strengths and resources of partners 
participating in project activities. Further, projects that focus on 
market development are inherently more creative than projects that 
focus only on export promotion. Market development is the process of 
identifying or creating emerging markets or market niches and modifying 
products to penetrate those markets. Market development is demand 
driven and designed to create long term export capacity where not only 
current

[[Page 11420]]

products can be sold, but future products as well.
    Current or past MDCP applicants should be aware that to be in a 
position to earn the maximum number of points under this criterion, 
they should propose projects that are entirely new. If a current or 
past MDCP applicant chooses to propose an expansion of an existing or 
past project, the expansion should be the majority of the total project 
for the proposal to earn a high score on this criterion. In addition, 
current or past MDCP applicants that apply proposing an expansion of an 
existing or past project must clearly demonstrate how the expansion, 
standing alone, is creative and innovative in accordance with the above 
definition.
    (5) Reasonableness of the itemized budget for project activities, 
the amount of the cash match that is readily available at the beginning 
of the project, and the probability that the project can be continued 
on a self-sustained basis after the completion of the award.
    Current or past MDCP recipients who propose an expansion of an 
existing project must show how the expansion will achieve self-
sustainability independent of current or past projects funded under the 
MDCP.
    Each of the above criteria is worth a maximum of 20 points.

Selection Procedures

    Each application will receive an independent, objective review by a 
panel qualified to evaluate the applications submitted under the 
program. The Independent Review Panel, consisting of at least three 
people, will review all applications based on the criteria stated 
above. The Independent 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 Independent 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 Independent 
Review Panel;
    (2) The degree to which applications satisfy ITA priorities 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). GPRA requires each 
federal agency to submit a strategic plan for program activities to 
OMB. Among other things, each strategic plan must include ``performance 
indicators to be used in measuring or assessing the relevant outputs, 
service levels and outcomes of each program activity.'' While not 
abandoning outputs (units of products, including services, of an 
activity) as a measure of achievement, OMB directed agencies to focus 
more on outcomes (the resulting effect of the use or application of an 
output) as the primary indicator of the success of programs and 
activities.
    Beginning with the submission of its FY 1998 budget, ITA began 
reporting results using the GPRA measures defined for its programs and 
activities. Many of these measures apply only to the programs and 
activities of ITA and have little relevance to the activities of MDCP 
award winners. The following performance measures, however, have 
particular applicability to MDCP projects:

Outcome Measures

    Dollar Value of Exports Resulting from Outputs.
    Number of New-to-Export Firms Participating in Activities.
    Number of New-to-Market Firms Participating in Activities.
    Degree of Customer Satisfaction (value of outputs determined by 
perception of customer based on their expectation of the output versus 
the plan, an agreed upon specification or other criteria).

Output Measures

    Number of Counseling Sessions.
    Number of Clients Counseled.
    Number of Reports (Publications) Prepared.
    Number of Copies of Reports (Publications) Distributed.
    Number of Trade Events.
    Number of Firms Participating in Trade Events.
    All award winners active in the MDCP during FY 1997 were asked to 
use these measures in their quarterly reports and to provide an end-of-
year assessment of the accomplishments of their projects using these 
measures. Applicants for this year's MDCP competition should be mindful 
of these performance measures and should use them wherever possible 
when estimating projected project results in their proposals. As was 
the case in FY 1997, all active MDCP award winners in FY 1998 will be 
asked to use these measures in quarterly reports and to provide an end-
of-year assessment of the accomplishments of their projects using these 
measures. Therefore, winners of the FY 1998 MDCP award competition 
should be prepared upon receipt of an award to put in place a system to 
capture the results achieved from project activities. Each applicant 
should describe this system in its proposals. Applicants are encouraged 
to develop and utilize additional performance measures they find 
meaningful to demonstrate the success of their projects.

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:
    a. The delinquent account is paid in full,

[[Page 11421]]

    b. A negotiated repayment schedule is established and at least one 
payment is received, or
    c. 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, Suspension and Other 
Responsibility Matters; Drug Free Workplace Requirements and 
Lobbying,'' and the following explanations are hereby 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, ``Government wide 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, ``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
d. 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.

12. Fly America Act

    All award recipients must comply with the provisions of the Fly 
America Act.

Classification

    This notice has been determined to be not significant for purposes 
of Executive Order 12866. The standard forms referenced in this notice 
are cleared under OMB Control No. 0348-0043, 0348-0044, 0348-0040, and 
0348-0046 pursuant to the Paperwork Reduction Act. Notwithstanding any 
other provision of law, no person is required to respond nor shall a 
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.

    Dated: March 4, 1998.
Jerome S. Morse,
Director, Resource Management and Planning Staff, Office of Planning, 
Coordination and Resource Management Trade Development, International 
Trade Administration.
[FR Doc. 98-5910 Filed 3-6-98; 8:45 am]
BILLING CODE 3510-DR-P