[Federal Register Volume 65, Number 53 (Friday, March 17, 2000)]
[Notices]
[Pages 14535-14542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6688]


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DEPARTMENT OF COMMERCE

International Trade Administration

[Docket No. 970424097-0068-05]
RIN 0625-ZA05


Market Development Cooperator Program

AGENCY: International Trade Administration (ITA), Commerce.

ACTION: Notice.

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SUMMARY: The ITA of the U.S. Department of Commerce (the Department) 
requests that eligible organizations submit proposals (applications) 
for the fiscal year (FY) 2000 Market Development Cooperator Program 
(MDCP) competition. The ITA promotes U.S. exports and works to improve 
the global competitiveness of the United States, creating jobs for 
Americans. The Department administers the MDCP to build public/private 
export marketing partnerships. The MDCP is a competitive matching 
grants program that provides Federal assistance to export multipliers 
such as state trade departments, trade associations, chambers of 
commerce, world trade centers and other non-profit industry 
organizations that are particularly effective in reaching small-and 
medium-size enterprises (SMEs).
    MDCP awards help to underwrite the start-up costs of 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.
    Partnerships enable the Federal Government to pool expertise and 
funds with non-Federal sources so that each maximizes its market 
development resources. They can also sharpen the focus on long-term 
export market development better than traditional trade promotion 
activities. These partnerships are also a mechanism for improving 
government-industry relations.
    While the Department sponsors, guides and partially funds MDCP 
projects, it expects applicants to develop, initiate and provide 
matching funding to carry out market development project activities. As 
an active partner, the Department will, as appropriate, provide 
assistance that the applicant identifies as essential to the 
achievement of project goals and objectives.
    Examples of activities that might be included in an applicant's 
project proposal are described below under ``I. Program Description''. 
The Department 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 applicants working in partnership with the government to obtain 
the maximum market development impact.

DATES: Public Meeting: The Department will hold a public meeting to 
discuss MDCP proposal preparation, procedures, and selection process on 
Monday, April 3, 2000. The meeting will begin at 1:30 p.m. in Room 
3407, at the Herbert Clark Hoover Building, 14th and Constitution 
Avenue, N.W., Washington, D.C. No discussion of specific proposals will 
occur at this meeting. Attendance at this public meeting by potential 
applicants is not required.
    Applications: Complete applications must be received no later than 
5:00 p.m. Eastern Daylight Time, May 16, 2000. Late applications will 
not be accepted. They will be returned to the sender.
    As set forth under III.B.2. Number of Copies, ITA is requesting one 
original application, plus six (6) copies. Applicants for whom this is 
a financial hardship should submit an original and two copies. Send the 
application to the address listed below under For Further Information 
Contact.

[[Page 14536]]


FOR FURTHER INFORMATION CONTACT: Mr. Brad Hess, Manager, Market 
Development Cooperator Program, Trade Development, ITA, U.S. Department 
of Commerce, 14th Street and Constitution Avenue, N.W., Room 3215, 
Washington, D.C. 20230, (202) 482-2969. The e-mail address is 
[email protected]. The fax number is (202) 482-4462.
    Information Online: Information on the Internet is available at 
http://www.ita.doc.gov/mdcp.
    Application Kit: A kit with all forms necessary to participate in 
the MDCP application process is available at the Internet address 
identified above. This application kit also may be obtained via first-
class mail by sending a legible mailing address to the ``Contact'' 
address listed above. The address as received will serve as the label 
for mailing a reply.
    Pre-Application Counseling: Applicants with questions should 
contact the Department as soon as possible, while continuing to prepare 
their proposals. The Department will not extend the deadline for 
submitting applications.
    The Department regularly provides information and responds to 
technical and procedural questions from entities which apply or may 
potentially apply for FY 2000 MDCP awards. Once the annual announcement 
of an awards competition appears in the Federal Register, however, the 
Department may not provide such entities with guidance regarding the 
merits of their applications or potential applications.

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.\1\
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    \1\ Unless otherwise noted, all legal authorities cited in this 
notice may be accessed via the Internet at http://www.access.gpo.gov/ or at http://wwwsecure.law.cornell.edu/federal/.
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    Catalog of Federal Domestic Assistance (CFDA): No. 11.112, Market 
Development Cooperator Program.

I. Program Description

    The goal of the MDCP as set out in authorizing legislation is to 
develop, maintain, and expand foreign markets for nonagricultural goods 
and services produced in the United States.\2\ For purposes of this 
program, nonagricultural goods and service means goods and services 
other than agricultural products as defined in 7 U.S.C. 451.\3\
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    \2\ '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 non-agricultural goods or services that seek 
to export such goods or services. See ``Trade Mission Application 
Form'' ITA Form 4008P-1 (Rev. 8/97).
    \3\ This definition includes ``agricultural, horticultural, 
viticultural, and dairy products, livestock and the products 
thereof, the products of poultry and bee raising, the edible 
products of forestry, and any and all products raised or produced on 
farms and processed manufactured products thereof...''
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A. Examples of Successful Proposals

    Applicants should propose activities that would be most appropriate 
to the market development needs of the relevant U.S. industry. Examples 
of activities which applicants from prior years have found appropriate 
are set forth below. These are provided only for illustration. 
Applicants are not required to propose any of these activities.
    1. Commissioning overseas market research, participating in 
overseas trade exhibitions and trade missions to promote U.S. exports, 
and/or hosting reverse trade missions;
    2. Developing a website to connect international customers to U.S. 
telecommunications and Internet companies through a ``virtual trade 
show.''
    3. Conducting U.S. product demonstrations abroad;
    4. Conducting export seminars in the United States or market 
penetration seminars in the market(s) to be developed;
    5. Establishing technical trade servicing that helps overseas 
buyers choose the right U.S. goods or services and to use the goods or 
services efficiently;
    6. Conducting joint promotions of U.S. goods or services with 
foreign partners;
    7. Opening an overseas office to perform development services for 
companies who agree to participate. 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;
    8. Detailing a private-sector representative to a US&FCS post in 
accordance with 15 U.S.C. 4723(c);
    9. Training foreign nationals to perform after-sales service or to 
act as distributors for U.S. goods or services;
    10. Improving market access for U.S. goods or services by working 
with organizations in the foreign marketplace responsible for setting 
standards and product testing;
    11. 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
    12. Establishing an electronic business information system to 
identify overseas trade leads and facilitate matches with foreign 
partners for U.S. businesses.

B. Funding

    1. Type of Funding Instrument: Since the Department 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.
    2. Funding Availability: For FY 2000, the total funds expected to 
be available for this program are $2.0 million. The Department expects 
to conclude a minimum of five (5) cooperative agreements with eligible 
entities for this competition. No award will exceed $400,000, 
regardless of the duration of the cooperative agreement.
    3. Matching Requirements: To receive MDCP funding, the applicant 
must contribute at least two dollars for each Federal dollar provided. 
So, for each Federal dollar of MDCP funding, the applicant must make at 
least one dollar of new cash outlays expressly for the project. The 
balance of the applicant's support may consist of in-kind contributions 
(goods and services).\4\
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    \4\ Recipient cash contributions are defined in 15 CFR Part 14, 
Sec. 14.2(g) as the award ``recipient's cash outlay, including the 
outlay of money contributed to the recipient by third parties.''
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    a. Minimum Match: An example of the minimum match is set forth 
below. An applicant requesting $200,000 of Federal funds must supply, 
at a minimum, $200,000 of new cash outlays expressly for the project. 
As illustrated below, the remaining $200,000 of the required match, can 
be made up of additional new cash outlays or in-kind contributions.

------------------------------------------------------------------------
                                                     Federal   Applicant
                       Item                           share      match
------------------------------------------------------------------------
Cash..............................................   200,000     200,000
Cash or In-kind...................................               200,000
                                                   ---------------------
    Total.........................................   200,000     400,000
------------------------------------------------------------------------

    This example would establish a cost-share ratio of two-to-one, two 
applicant dollars for each dollar of Federal funds. The applicant 
assumes \2/3\ of the total cost. In other words, 67 percent of the 
funding is provided by the applicant and 33 percent by the Federal 
Government. This means that in order to receive one dollar of Federal 
funds, the applicant must incur at least three dollars in project 
expenditures.
    b. Additional Match: Applicants may propose projects for which the 
matching

[[Page 14537]]

funding exceeds two applicant dollars to each Federal dollar. However, 
as set forth below, this will increase the cost-share ratio.

------------------------------------------------------------------------
                                                     Federal   Applicant
                       Item                           share      match
------------------------------------------------------------------------
Cash..............................................   200,000     200,000
Cash or In-kind...................................               400,000
                                                   ---------------------
    Total.........................................   200,000     600,000
------------------------------------------------------------------------

    This example would establish a cost-share ratio of three-to-one, 
three applicant dollars for each dollar of Federal funds. The applicant 
assumes \3/4\ of the total cost. In other words, 75 percent of the 
funding is provided by the recipient and 25 percent by the Federal 
Government. This means that in order to receive one dollar of Federal 
funds, the applicant must incur at least four dollars in project 
expenditures.
    4. In-Kind Contributions: In the proposed budget, all in-kind 
contributions used to meet the applicant's share of costs are listed in 
a separate column from cash contributions. Applicants must describe 
these in-kind contributions separately in the application and in 
sufficient detail to determine that the requirements of 15 CFR Part 
14.23(a), and 15 CFR Part 24.24 (a) and (b) are met.
    5. Third Party Contributions: In order for an award 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.
    6. Indirect Costs: Federal funds may be used for a portion of the 
direct costs of each project, but not for indirect costs. Generally, 
direct costs result from activity 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. By contrast, indirect costs are generally 
those costs that are incurred regardless of whether there is activity 
associated with an award.
    Federal funds may be used only to cover direct costs. The applicant 
must incur and pay direct costs that equal or exceed the amount of 
Federal funds. However, any portion of the balance of applicant's match 
may be used to cover indirect costs. For example, an applicant which 
requests $200,000 of Federal funds, must structure its match to include 
at least $200,000 of direct costs. The balance of the match, in this 
case $200,000, may be comprised entirely or partially of indirect 
expenses, as explained in greater detail below, under ``Indirect Cost 
Rate.''

------------------------------------------------------------------------
                                                     Federal   Applicant
                       Costs                          share      match
------------------------------------------------------------------------
Direct............................................   200,000     200,000
Indirect or Direct................................               200,000
                                                   ---------------------
    Total.........................................   200,000     400,000
------------------------------------------------------------------------

    The Department will determine allowable costs on the basis of the 
applicable cost principles and definitions in OMB Circulars A-21, A-87, 
and A-122; in 45 CFR Part 74, Appendix E; and in 48 CFR Part 31.\5\
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    \5\ Access OMB circulars and forms at http://www.whitehouse.gov/omb/grants/index.html. Appendix E referred to on this OMB site is 
not listed separately. It is found at the end of 45 CFR 74.91, which 
may be accessed directly at http://www.access.gpo.gov/nara/cfr/waisidx 99/45cfr74 99.html.
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    7. Indirect Cost Rate: The Department funds cannot 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 amount calculated using the indirect cost rate and 
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.\6\
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    \6\ Information on calculating an indirect cost rate is 
available at http://www2.dol.gov/dol/oasam/public/programs/guide.htm. Additional information on indirect cost rates is 
available at http://www.ntia.doc.gov/otiahome/tiiap/Application/97GUIDE.HTM.
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    8. Fee Income: 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 any plans to charge fees. Fees 
generated under the award are program income and must be used for 
project-related purposes during the award period.
    9. Approved Pre-Award-Period Expenditure: As a general matter, 
award recipients can request reimbursements only for costs incurred 
during the award period. However, if proposed in the application, award 
recipients can expend funds to attend an award-recipient orientation 
meeting even if it precedes the beginning of the award period. This 
orientation is usually held in Washington soon after the awards are 
announced. It is usually the first opportunity for award recipients to 
meet members of the Department's team. This allowable expenditure of 
funds prior to the beginning of the award period is limited to 
reimbursable expenses associated with attending the orientation.
    10. Fees for Some Government Services: By winning an MDCP award, an 
applicant enters into a special relationship with ITA. (See I.C.1. 
Project Team below.) To fulfill its part of the partnership, ITA will 
provide, where possible, its resources to support project activities 
included in annual operating plans. (See I.C.3. Annual Operating Plan 
below.) However, ITA's ability to provide assistance free of charge is 
limited. For some services such as market research studies and Gold Key 
services, ITA is required to charge fees that recover costs. Applicants 
requiring ITA services that could involve charges should make provision 
in their budgets for such charges.
    Information relating to charges for services provided in specific 
overseas markets can be obtained by contacting the Senior Commercial 
Officer (SCO) at each overseas post. Information relating to charges 
for services provided by Export Assistance Centers (EACs) throughout 
the United States can be obtained by contacting the relevant EAC 
director. The names of SCOs and EAC directors, and often the specific 
fees, can be found on the Internet via     http://www.usatrade.gov.

C. Administration of Award Activity

    1. Project Team: To administer each cooperative agreement, a 
project team is established including key personnel from the award-
winning organization and officials from the Department who can help the 
award winner 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'' establishing 
direction for the project, recommending changes in the direction of the 
project, when necessary, and determining the mode of project operations 
and other management processes, coupled with close monitoring or 
operational involvement during the performance of project activities.
    2. Award Period: Funds may be expended over the period of time 
required to complete the scope of work, but not to exceed three years 
from the start date of the award.
    3. Annual Operating Plan: At the beginning of each year of the 
award period, the project team negotiates an annual operating plan, 
which is based on the work plan submitted in the application. The work 
plan sets forth a timetable for specific activities. In

[[Page 14538]]

addition to this timetable, the annual operating plan includes team 
responsibilities for accomplishing each activity, and the budgeted cost 
of each activity. Annual operating plans are not part of the 
application. They are developed only after receipt of an award and 
designation of an ITA project team.

II. Eligibility

A. Definition of Eligible Entity

    U.S. trade associations, non-profit 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 an MDCP cooperative agreement.
    1. Trade Association: 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.
    2. Non-Profit Industry Organization: For the purpose of this 
program, a ``non-profit industry organization'' is:
    a. A small business development center operating under agreement 
with the Small Business Administration, or
    b. An organization that has been granted status as a non-profit 
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 development center;
    (7) A world trade center; or
    (8) A port authority.

B. Eligibility of Previous Award Recipients

    The program aims to increase the sum of Federal and non-Federal 
export market development activities by using program funds to 
encourage new initiatives. MDCP funds are not intended to replace funds 
from other sources.
    Expansion of the scope of an existing project also may qualify for 
funding consideration. Eligible organizations that have previously 
received an MDCP award may propose a new project or expansion of an 
existing project. See IV.A.4. Creativity and Capacity below.

C. Determination of Eligibility

    1. Request for Determination: Prospective applicants can resolve 
questions regarding eligibility by requesting an eligibility 
determination. Requests should be made in writing accompanied by 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, organization's 
purpose, and activities, and non-profit status under Internal Revenue 
Code provisions. Prospective applicants should submit eligibility 
determination requests as soon as possible if they wish to have 
determinations prior to the application submission deadline. This 
deadline will not be extended, and applicants should continue to work 
on proposals while awaiting the Department's eligibility determination.
    2. Joint Ventures: 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 award 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.
    3. Benefit to All Companies: The Department 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 targeted in its proposal to 
participate 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.

III. Applications

A. Format

    The basic elements of the application are set forth below. 
Instructions and required forms are provided in the Application Kit See 
the For Further Information Contact section for instructions on getting 
the Application Kit.
    1. Executive Summary: The first element of the application is a 
one-page summary of the proposal.
    2. Background Research: Developing a project plan requires solid 
background research. Applications should reflect the findings of the 
applicant's study of the following:
    a. The market potential of the U.S. good(s) or service(s) to be 
promoted in a particular market(s);
    b. The competition from host-country and third-country suppliers; 
and
    c. 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 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).
    3. Project Description: 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.
    a. Work Plan: The project description should include a list of 
specific activities planned, including: (1) The different phases of the 
project, identifying each milestone and activity in chronological 
order; (2) the location where activities will take place; and (3) the 
ways the applicant intends to involve the Department of Commerce and/or 
other Federal agencies as partners in project activities.
    b. 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.
    The Department reports results using the GPRA measures defined for 
its programs and activities. Many of these measures apply only to the 
programs and activities of the Department and

[[Page 14539]]

have little relevance to the activities of MDCP award winners. The 
following performance measures, however, have particular applicability 
to MDCP projects:
    (1) Outcome Measures.
    (a) Dollar value of exports resulting from outputs.
    (b) Number of new-to-export firms participating in activities.
    (c) Number of new-to-market firms participating in activities.
    (d) Degree of customer satisfaction (value of outputs determined by 
perception of the customer based on their expectation of the output 
versus the plan, an agreed-upon specification, or other criteria).
    (2) Output Measures.
    (a) Number of counseling sessions.
    (b) Number of clients counseled.
    (c) Number of reports (publications) prepared.
    (d) Number of copies of reports (publications) distributed.
    (e) Number of trade events.
    (f) Number of firms participating in trade events.
    Applicants should be mindful of these performance measures and 
should use them wherever possible when estimating projected results in 
their proposals. Award recipients will be expected to use these 
measures in their quarterly reports and in their end-of-year 
assessments of project accomplishments. Each applicant should describe 
its recording and reporting system in its proposals. In order to 
demonstrate the success of their projects, applicants are encouraged to 
develop and utilize additional performance measures which would 
reasonably gauge the success of the project. Each recipient of an award 
should be prepared to record and report the results achieved from 
project activities.
    c. Partnership: Applications should display the imagination and 
innovation of the private sector working in partnership with the 
government to obtain the maximum market development impact.
    d. Project Funding Priorities: Project proposals must be compatible 
with U.S. trade and commercial policy. In addition, applicants are 
encouraged to address the Department's international trade priorities. 
See IV.A.3. Priorities and Partnership. The Department is interested in 
receiving proposals which include projects that:
    (1) Maximize the participation of small- and medium-sized 
enterprises (SMEs) in international trade;
    (2) E-commerce;
    (a) Provide the basic instruction, assistance and applications to 
help SMEs to take the initial steps onto international e-commerce 
platforms and into international sales;
    (b) Make SMEs aware of the unique advantages e-commerce presents as 
a low-cost low-risk tool to overcome SME reluctance to pursue marketing 
opportunities in and profit from foreign markets;
    (3) Increase ``hands-on'' export education designed for SMEs 
through:
    (a) Development of educational tools such as curricula and media, 
or;
    (b) Company-specific assistance such as export business plan 
development, market research, customs counseling, competitive position 
assessment, trade event preparation, foreign distribution alliances, 
and securing financing.
    (4) Provide technical assistance to developing economies to build 
commercial infrastructure such as regulatory practices;
    (5) Develop non-traditional approaches to creating demand for the 
products/services developed from new U.S. technologies;
    (6) Improve communication with and outreach to old and new private-
sector international trade constituencies and initiate or enhance 
public/private export partnerships;
    (7) Identify and/or work 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;
    4. Credentials: 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 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 and its partners that intend 
to work on the project. This should include a resume for the project 
director and principal staff and a projection of the amount of time 
each professional will devote to the project.
    5. Finance and Budget: In addition to Form 424A ``Budget 
Information--Non-Construction Programs'', applicants will provide a 
detailed budget for the project award period, supporting worksheets and 
explanations, a discussion of financial systems and projections, a 
history of financial programs, financial and organizational documents, 
and any additional evidence of financial responsibility.
    6. Forms: The Application Kit includes the following forms which 
must be completed and included in an application: Forms SF-424 
``Application for Federal Assistance,'' SF-424A ``Budget Information--
Non-Construction Programs,'' SF-424B ``Assurances--Non-Construction 
Programs,'' CD-346 ``Applicant for Funding Assistance''; and Forms SF-
LLL, CD-346, CD-511, and CD-512, which are described below under V.A. 
Other Requirements.

B. Submission of Applications

    1. Number of Pages: The main body of the application is limited to 
90 pages. There is no limit on the number of pages for appendices. The 
main body of the application should include the substance of 
applicant's proposal as identified in III.A.1. through III.A.5. above. 
Forms and documentation requested in the Application Kit, as well as 
any other information applicants wish to submit, must be provided as 
appendices.
    Each page of the main body should be numbered. Tabbing and/or 
numbering of pages included as appendices facilitates application 
review.
    The Department encourages applicants to submit applications that 
are complete and responsive. However, applicants should be 
discriminating in what they choose to include in the application.
    2. Number of Copies: Each applicant must submit a signed original 
application. In addition, the Department encourages applicants to 
submit six (6) copies. Several copies will be needed in order for the 
Department to complete its evaluation. (As noted below under IV.B. 
Evaluation and Selection Procedures, four Selection Panel members and 
several Department staff will review each application.) However, if 
submitting six (6) copies creates a financial hardship, submit the 
minimum of two copies plus the original.
    If an applicant submits an original and two copies or any other 
number of copies greater than two and less than six (6), the Department 
will make

[[Page 14540]]

additional copies to allow all reviewers to read each application. 
However, the Department cannot guarantee that the copies will include 
features that are not easily reproduced on standard photocopy machines. 
For example, tabs might not be inserted, color pages might be 
reproduced in black and white, fold-out pages might not fold out, 
unusually sized (not 8.5"  x  11") pages might be broken up, and the 
copies might be bound with staples or clips instead of the binding used 
for applicant-submitted material.

C. Retention of Applications

    1. Award Winners: For each award winner, the Department of Commerce 
will retain the application for seven years. Copies of winning 
applications are distributed to project team members for their use in 
managing winning projects.
    2. Unsuccessful and Ineligible Applicants: For each eligible 
application which does not win an award, and for each application 
determined to be ineligible, the Department of Commerce will retain the 
signed original of the application for seven years and will destroy the 
copies.
    3. Late Applications Returned to Sender: Late applications are not 
accepted or retained. They are returned to the sender. However, the 
Department will retain a copy of the cover page or transmittal letter 
for seven years.

IV. Evaluation and Selection

A. Evaluation Criteria

    The Department 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. Export Success Potential: Potential of the project to generate 
export success stories and/or export initiatives in both the short-term 
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 Chief Executive Officer (CEO) of a company in the active 
pursuit of export sales. Examples of export initiatives include, but 
are not limited to, the following:
    a. Participating in an overseas trade promotion event;
    b. Hiring an export manager;
    c. Establishing an export department;
    d. Exploring a new market through an overseas trip by the CEO;
    e. Developing an export marketing/business plan;
    f. Translating product literature into a foreign language;
    g. Making product modifications to comply with foreign market 
requirements;
    h. Commissioning an in-depth market research study;
    i. Developing a website to connect international customers to U.S. 
telecommunications and Internet companies through a ``virtual trade 
show.''
    j. Advertising in a foreign business publication;
    k. Undertaking an overseas direct-mail campaign to create product 
awareness;
    l. Signing an agent/distributor;
    m. Getting introduced to a potential foreign buyer;
    n. Signing an export contract/filling an export order; or
    o. Co-locating with a US&FCS Commercial Center.
    Applicants should provide detailed explanations of projected 
results of the project.
    2. Performance Measures: 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. Applicants should provide quantifiable estimates of projected 
increases.
    3. Priorities and Partnership: The degree to which the proposal 
furthers or is compatible with the Department's priorities stated above 
and the degree to which the proposal initiates or enhances partnership 
with the Department.
    4. Creativity and Capacity: Creativity, innovation, and realism 
displayed by the work plan as well as 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 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. In addition to 
promoting current sales of existing products, market development 
promotes future sales and future products.
    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. A current or past 
MDCP recipient may propose an expansion of an existing or past MDCP 
project. In order to earn a high score on this criterion, the expansion 
should be the majority of the total project for the proposal. 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. Budget and Sustainability: 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. The 
five criteria together constitute the application score. At 20 points 
per criterion, the total possible score is 100.

B. Evaluation and Selection Procedures

    Office of Planning Coordination and Resource Management (OPCRM) 
staff will review each application for completeness as soon as 
practicable after the application is received. The applicant is 
responsible for submitting a complete application in a timely manner.
    Prior to selection, each complete application receives a thorough 
evaluation. The steps of the evaluation and selection process are set 
forth below.
    1. Eligibility Determination: OPCRM staff, in consultation with the 
Department's Office of General Counsel, reviews all applications to 
determine the eligibility of each applicant. If an applicant's 
eligibility is in question, the applicant is contacted to supply 
additional information or clarification.
    2. Staff Review: When the eligibility review has been completed, 
the OPCRM Director invites comments on eligible applications from 
relevant offices

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within the Department (e.g., Trade Development (TD), Market Access & 
Compliance (MAC), and US&FCS). This review allows the Department 
experts in the industry sector or geographical region to assess the 
claims made in the applications. The Department staff comments provide 
insights into both the potential benefits and the potential 
difficulties associated with the applications.
    3. OPCRM Review: At least three representatives of OPCRM review and 
comment on all applications using the evaluation criteria identified 
above. The MDCP Manager prepares a summary of OPCRM staff comments and 
organizes all comments by the Department staff and applications for the 
Selection Panel. The OPCRM and Department staff comments afford the 
Selection Panel the insights and breadth of experience of Department 
professionals. However, they have no official weight, and the Selection 
Panel is free to consider or disregard them as it sees fit.
    4. Selection Panel Composition: The MDCP Manager forwards all of 
the eligible applications, along with all related materials, to the 
Selection Panel of senior managers at the Department.
    This panel is chaired by the OPCRM Director and typically includes 
three other members, one each from the Department's TD, MAC, and US&FCS 
bureaus. Panel members are Office Directors or higher.
    5. Selection Panel Scoring: Each Selection Panel member reviews 
each eligible application and assigns a score for each of the five 
criteria stated above. The scores of each Selection Panel Member for 
each application reviewed are maintained in the files for seven years. 
The individual criteria scores are averaged to determine the total 
score for each application.
    6. Ranked Recommendation: Based on the scores assigned by Selection 
Panel members and deliberations by the Selection Panel, the Selection 
Panel forwards the applications with the ten highest total scores to 
the Assistant Secretary for Trade Development and recommends which of 
the ten proposals should receive funding. The Selection Panel's 
recommendation will not deviate from the rank order. This means, for 
example, that the Selection Panel cannot recommend funding for the 
application ranked seventh without recommending funding for applicants 
ranked first through sixth. The Selection Panel recommendation includes 
the Panel's written assessment of the strengths and weaknesses of the 
top ten applications.
    7. Selection of Applications for Funding: From the top ten 
applications forwarded by the Selection Panel, the Assistant Secretary 
for Trade Development selects those applications which will receive 
funding. In addition to the evaluation criteria stated above, the 
Assistant Secretary for Trade Development may consider the following in 
making decisions:
    a. The scores of individual reviewers and the Selection Panel's 
written assessments;
    b. The degree to which applications satisfy the Department 
priorities as established under III.A.3.d. Project Funding Priorities 
above;
    c. The geographic distribution of the proposed awards;
    d. The diversity of industry sectors and overseas markets covered 
by the proposed awards;
    e. The diversity of project activities represented by the proposed 
awards;
    f. Avoidance of redundancy and conflicts with the initiatives of 
other Federal agencies; and
    g. The availability of funds.

C. Announcement of Award Decisions

    Award winners will be notified by letter. Once award winners 
formally accept their awards, the Department will issue a press release 
and list the award winners at the MDCP Internet address.
    Within ten days of the announcement of the issuance of the press 
release, unsuccessful applicants will be notified in writing and 
invited to receive a debriefing from MDCP officers.

V. Other Requirements and Classification

A. 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. Pre-Award Activities: Except at noted above in I.B.9. Approved 
Pre-Award-Period Expenditure, 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 pre-award 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;
    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 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. The name check review process is based 
on information applicants provide in Form CD-346 ``Applicant for 
Funding Assistance''.
    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''. Explanations are provided below.
    a. Non-Procurement 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

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lobbying using any funds must submit Form 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 sub-grants, 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 sub-recipients 
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, 49 U.S.C. 40118.

B. 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 14, 2000.
Robert W. Pearson,
Director, Office of Planning, Coordination and Resource Management, 
Trade Development, International Trade Administration, Department of 
Commerce.
[FR Doc. 00-6688 Filed 3-16-00; 8:45 am]
BILLING CODE 3510-DR-P