[Federal Register Volume 66, Number 44 (Tuesday, March 6, 2001)]
[Notices]
[Pages 13487-13490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5372]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funds Availability (NOFA) Invitation for Applications 
for the Value-Added Agricultural Product Market Development Grant 
Program (VADG) (Information Resource Center)

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (RBS) announces the 
availability of up to $5,000,000 in competitive grant funds for the 
establishment of a value-added technical resource center. RBS hereby 
requests proposals from eligible institutions to establish a single 
pilot project to be known as the Agricultural Marketing Resource 
Center. This Center will have the capabilities, including electronic, 
to coordinate and provide information regarding research, business, 
legal, financial, and logistical assistance to independent producers 
and processors of value-added agricultural commodities and products of 
agricultural commodities. The Center will also develop a nationwide 
market information and coordination system.

DATES: The deadline for receipt of an application is 4:00 p.m. eastern 
time on April 30, 2001. The application deadline is firm as to date and 
hour and applies to submission of the original application and two 
copies to the National Office in Washington, DC. The agency will not 
consider any application received after the deadline. Comments 
regarding the information collection requirements under the Paperwork 
Reduction Act of 1995 must be received on or before May 7, 2001 to be 
assured of consideration.

ADDRESSES: Send proposals and other required materials to Dr. Thomas H. 
Stafford, Director, Cooperative Marketing Division, Rural Business-
Cooperative Service, USDA, Stop 3252, Room 4204, 1400 Independence 
Avenue SW., Washington, DC 20250-3252. Telephone: (202) 690-0368, E-
Mail: [email protected].

FOR FURTHER INFORMATION CONTACT: Dr. Thomas H. Stafford, Director, 
Cooperative Marketing Division, Rural Business-Cooperative Service, 
USDA, STOP 3252, Room 4202, 1400 Independence Ave. SW., Washington, DC 
20250-3252. Telephone (202) 690-0368, Facsimile (202) 690-2723, E-mail: 
[email protected]. You may also obtain information from the RBS 
website at: http://www.rurdev.usda.gov/rbs/coops/vadg.htm.

SUPPLEMENTARY INFORMATION:   

Background

    This solicitation is issued pursuant to section 231 of the 
Agriculture Risk Protection Act of 2000 authorizing the establishment 
of the Value-Added Agricultural Product Market Development grants. The 
Secretary of Agriculture has delegated the program's administration to 
USDA's Rural Business-Cooperative Service (RBS) for the fiscal year 
ending September 30, 2001. The Rural Business-Cooperative Service (RBS) 
was established by the Department of Agriculture Reorganization Act of 
1994. The mission of RBS is to improve the quality of life in rural 
America by financing businesses, providing technical assistance, and 
creating effective strategies for rural development.
    The primary objective of this program is to establish a pilot 
project to be known as the Agricultural Marketing Resource Center. This 
Center will have the capabilities, including electronic capabilities, 
to collect, disseminate, coordinate, and provide information on value-
added processing to independent producers and processors of value-added 
agricultural commodities and products of agricultural commodities. This 
includes information on value-added research, business operations, 
legal issues, financial issues, and logistical assistance. The Center 
will also develop a strategy to establish a nationwide market 
information and coordination system.
    A single grant will be awarded on a competitive basis to an 
eligible institution as defined in this NOFA based on specific 
selection criteria. Parts 3015 and 3019 of 7 CFR will be applicable to 
this program.
    This grant program has a matching funds requirement. Applicants 
must provide matching funds at least equal to the grant. Grant funds 
will be disbursed pursuant to relevant provisions of 7 CFR parts 3015 
and 3019, as applicable. Matching funds must be used to support the 
overall purpose of the VADG program.
    All forms required to apply are available from the Cooperative 
Services Program web-site at http://www.rurdev.usda.gov/rbs/coops/vadg.htm, by calling (202) 690-0368, or faxing (202) 690-2723. Forms 
may also be requested via the internet by sending a message with your 
name, mailing address (not e-mail), and phone number to 
[email protected]. When calling or e-mailing, please indicate 
you are requesting forms for fiscal year FY 2001 (FY 2001) Value-Added 
Product Market Development Grant Program. Forms will be mailed to you 
(not 
e-mailed or faxed) as quickly as possible.

Definitions

    Agency--The Rural Business-Cooperative Service (RBS) or its 
successor.
    Agricultural Product--Plant and animal products and their by-
products, including aquaculturally produced fish and seafood products 
and forestry products.
    Business Plan--A description of economic activities that will lead 
to a potential viable value-added venture including feasibility 
studies, marketing plans, business operations plans, and legal 
evaluations.
    Center--The Agricultural Marketing Resource Center which is to be 
established and operated by the grantee to work with independent 
producers and processors on value-added ventures.
    Independent Producers--Agricultural producers, including 
associations of producers and producer-owned corporations, who do not 
produce the agricultural product under contract or joint ownership with 
any other organization.
    Matching Funds--Cash or confirmed funding commitments from non-
Federal sources. Matching funds must be at least equal to the grant 
amount. In-kind contributions as defined in 7 CFR part 3015, subpart G 
and 7 CFR section 3019.23 can be used as matching funds. Examples of 
in-kind contributions include volunteer services furnished by 
professional and technical personnel, donated supplies and equipment, 
and donated office space.
    Non-Profit Corporation or Institution--Any organization or 
institution, including an accredited institution of higher education, 
no part of the net earnings of which inures, or may lawfully inure, to 
the benefit of any private shareholder or individual.
    Public Body--Any state, county, city, township, incorporated town 
or village, borough, authority, district, economic development 
authority, or Indian tribe on Federal or state reservations or other 
federally recognized tribe.
    Technical Assistance--Development activities to ensure that a 
successful value-added venture is organized. These activities include, 
but are not limited to, conducting feasibility, environmental, and 
other essential studies, or preparing

[[Page 13488]]

business, marketing, and other plans for independent agricultural 
producers wishing to enter into value-added activities.
    Value-Added--Changes in the raw or partly processed agriculturally 
produced commodity that result in a product having a higher value to 
potential buyers. Examples include processing wheat into flour, 
slaughtering livestock or poultry, further processing of meat and 
poultry products, or collecting and converting methane from animal 
waste to generate energy.
    VADG--Value-Added Agricultural Product Market Development Grant 
Program.

Recipient Eligibility Requirements

    A grant may be made to a nonprofit corporation or institution, 
including an accredited institution of higher education, that 
demonstrates the capacity and technical expertise to provide assistance 
to independent producers, an established plan outlining support of the 
applicant in the agricultural community, and the availability of 
resources (in cash or in-kind) of definite value to sustain the Center 
following establishment. Grants may not be made to public bodies. Trade 
associations are not eligible recipients.

Proposal Preparation

    A proposal should contain the following:
    (1) Standard Form 424, ``Application for Federal Assistance.''
    (2) Standard Form 424A, ``Budget Information--Non-Construction 
Programs.''
    (3) Standard Form 424B, ``Assurances--Non-Construction Programs.''
    (4) Table of Contents. For ease of locating information, each 
proposal must contain a detailed Table of Contents immediately 
following the required forms. The Table of Contents should include page 
numbers for each component of the proposal. Pagination should begin 
immediately following the Table of Contents.
    (5) Proposal Summary. A summary of the Proposal, not to exceed one 
page, should include the following: description of the proposed Center; 
types of projects to be undertaken; and names of the individuals 
responsible for conducting and completing the work of the Center.
    (6) Proposal Narrative. The narrative portion of the project 
proposal must include at least the following:
    (i) Information sheet. A separate one-page information sheet, which 
lists each of the seven evaluation criteria listed in this NOFA under 
the ``Evaluation Criteria and Weights'' section, followed by the page 
numbers of all relevant material and documentation contained in the 
proposal which addresses or supports that criteria.
    (ii) Goals of the Center. A clear statement of the ultimate goals 
of the proposed Center must be presented.
    (iii) Specific Tasks to Be Performed by the Center. The narrative 
must describe the specific tasks that the Center will perform in 
collecting and disseminating information on value-added research, 
business operations, legal issues, financial issues, and logistical 
assistance related to value-added processing and in developing a 
strategy to establish a nationwide market information and coordination 
system.
    (iv) Evaluation Criteria. Each of the seven evaluation criteria 
listed in the Evaluation Criteria and Weights section of this NOFA must 
be addressed specifically and individually by category. Present these 
criteria in narrative form with any supporting documentation.
    (7) Verification of Matching Funds. For cash you should provide a 
copy of a bank statement. Otherwise, you should provide a copy of the 
confirmed funding commitment from the funding source.
    (8) Budget. A detailed breakdown of estimated costs and a project 
budget.

Grant Amounts

    The amount of grant funds for the Center in FY 2001 will not exceed 
$5,000,000.

Eligible Grant and Matching Fund Uses

    Grant funds may be used to pay up to 50 percent of the cost of 
establishing the Center, including the collection of information the 
Center will disseminate to independent producers and processors of 
value-added agricultural commodities and products of agricultural 
commodities. The applicant's funding match may be either in cash or in-
kind contributions in accordance with 7 CFR parts 3015 and 3019 and 
must be from non-Federal sources. Grant and matching funds may be used 
for, but are not limited to, the following purposes:
    1. Activities to develop the Center's capacity to collect, 
interpret and disseminate principles, facts, technical knowledge, or 
other information that may be useful to independent agricultural 
producers or processors wishing to enter into value-added activities.
    2. Activities to develop a market information sharing and 
coordination system.
    3. Activities to develop training and instructional materials for 
independent agricultural producers wishing to enter into value-added 
activities.
    4. Activities to develop resources concerning principles of 
organizing value-added enterprises, facts, and other information 
concerning the business, economic, and technical nature of value-added 
activities.

Ineligible Grant and Matching Fund Uses

    Grant and matching funds cannot be used to:
    1. Plan, repair, rehabilitate, acquire, or construct a building or 
facility (including a processing facility);
    2. purchase, rent, or install fixed equipment;
    3. repair or maintain privately owned vehicles;
    4. pay for the preparation of the grant application;
    5. fund political activities;
    6. pay costs incurred prior to receiving this grant;
    7. fund any activities prohibited in 7 CFR parts 3015 and 3019, as 
applicable; or
    8. fund the Center's continuing operation.
    Funds from this grant and the recipient's matching funds cannot be 
used for the architectural or engineering design work for the physical 
facility that are often part of the project feasibility studies.

Methods for Evaluating and Ranking Applications

    RBS will review all applications for conforming to the requirements 
of this NOFA. Applications that fall within the guidelines of this NOFA 
will then be evaluated by a panel of agricultural economists and other 
technical experts appointed by RBS. Applications will be evaluated 
competitively and points awarded as specified in the Evaluation 
Criteria and Weights section of this NOFA. After assigning points upon 
those criteria, the application with the highest ranking will be 
awarded the grant.

Evaluation Criteria and Weights

    RBS will initially determine whether the submitting organization is 
eligible and whether the application contains the information required 
by this NOFA. Prior to technical examination, each proposal will be 
reviewed for responsiveness to the funding solicitation. Submissions 
that do not meet the guidelines stated in this NOFA

[[Page 13489]]

will be eliminated from the competition and will be returned to the 
applicant. After this initial screening, RBS will use the following 
criteria to rate and rank proposals received in response to this NOFA. 
Failure to address any of the following criteria will disqualify the 
proposal:
    1. Nature of the Center's operations (Maximum 20 points). Describe 
in detail the operation of the Center including the specific tasks to 
be performed. Demonstrate how and where information will be collected, 
processed, stored, and disseminated (print and electronic). Describe in 
detail relevant experience in collecting and distributing research 
information on business principles and operations, legal activities, 
financial matters, and logistical methodologies. Describe in detail 
what type of electronic capabilities the Center will adopt. Proposals 
will be evaluated under this criteria for their overall ability to 
maximize (1) the utility of the information to be provided, (2) its 
accessibility, (3) its comprehensiveness to the user, and (4) the level 
of personal assistance provided by the Center.
    2. Ability and experience in producer and producer group outreach 
(maximum 20 points). Describe in detail your experience in reaching 
producers and producer groups with the kind of information that would 
be provided by the Center. This includes mechanisms for promoting the 
Center's products and services, methods of interacting with 
stakeholders, and ways of obtaining feedback from producers and 
producer groups about information products and services received.
    3. Experience in developing an electronic market information and 
coordination system (Maximum 15 points). Describe in detail relevant 
experience in developing and operating electronic market information 
and coordinating systems including web page design and maintenance, on-
line transactions, and other relevant activities.
    4. Qualifications of the personnel performing the tasks; and a 
demonstrated track-record of performing activities similar to those 
being proposed (maximum 15 points). Describe in detail qualifications 
of the in-house staff who will actually do the proposed tasks and 
provide resumes and information about their organizations. If a 
consultant or others are to be hired, include a statement as to their 
commitment, as well as their qualifications.
    5. A sound plan of work incorporating the appropriate tasks to 
establish the Agricultural Marketing Resource Center (maximum 10 
points). Describe in detail your plan of work to establish the Center. 
This plan must provide a ``road map'' for establishing the Center from 
start to finish. This includes time tables, project benchmarks, and the 
evaluation procedures used to determine the success of the effort.
    6. Amount and type of linkages within the agriculture community 
(Maximum 10 points). Describe in detail the types of linkages and 
support the applicant has from the agriculture community, including 
development organizations, cooperatives, and other agribusinesses. 
Discuss the nature of these relationships and any joint activities with 
them.
    7. Amount and type of resources to sustain the Center once 
established (Maximum 10 points). Described in detail the various 
sources of funding and in-kind support available to the applicant to 
sustain operations once the Center has been established and grant 
funding exhausted. Discuss how the Center will retain its in-house 
expertise after grant funds are exhausted.

What and Where To Submit

    An original and two copies of the proposal, with all required forms 
and documentation, must be submitted in one package to: Dr. Thomas H. 
Stafford, Director, Cooperative Marketing Division, Rural Business-
Cooperative Service, USDA, Stop 3252, Room 4204, 1400 Independence 
Avenue SW, Washington, D.C. 20250-3252. Applications sent 
electronically or by facsimile will not be accepted.

When To Submit

    The deadline for receipt of an application is 4:00 p.m. eastern 
time on April 30, 2001. The application deadline is firm as to date and 
hour and applies to submission of the original application and two 
copies to the National Office in Washington, DC. The Agency will not 
consider any application received after the deadline.

Grantee Requirements

    The grantee will be required to do the following.
    1. Sign a Value-Added Agricultural Product Market Development Grant 
Agreement acceptable to RBS.
    2. Sign required Federal grant making forms.
    3. Use Standard Form 270, ``Request for Advance or Reimbursement'' 
to request advances and reimbursements.
    4. Submit a Standard Form 269, ``Financial Status Report'' and list 
expenditures according to agreed upon budget categories on a quarterly 
basis starting with the first full quarter after the grant award.
    5. Submit quarterly performance reports which compare 
accomplishments to the objectives; if established objectives are not 
met, the report must discuss problems or delays that may affect 
completion of the project, establish objectives for the next reporting 
period; and discuss compliance with any special conditions on the use 
of awarded funds.
    6. Maintain a financial management system that is acceptable to the 
Agency.
    7. Collect and maintain data provided by the independent producers 
on race, sex, and national origin.
    8. Submit a final project performance report.

Other Federal Statutes and Regulations That Apply

    Several other Federal statutes and regulations apply to proposals 
considered for review and to the grant awarded. These include, but are 
not limited to:
    7 CFR part 15, subpart A--Nondiscrimination in Federally Assisted 
Programs of the Department of Agriculture--Effectuation of Title VI of 
the Civil Rights Act of 1964.
    7 CFR part 3015--Uniform Federal Assistance Regulations.
    7 CFR part 3017--Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants).
    7 CFR part 3018--New Restrictions on Lobbying.
    7 CFR part 3019--Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and Other 
Non-Profit Organizations.
    7 CFR part 3052--Audits of States, Local Governments, and Non-
Profit Organizations.

Paperwork Reduction Act

    The reporting requirements contained in this NOFA have received 
temporary emergency clearance by the Office of Management and Budget 
(OMB) under Control Number 0570-0040. However, in accordance with the 
Paperwork Reduction Act of 1995, RBS will seek standard OMB approval of 
the reporting requirements contained in this NOFA. Comments should be 
submitted within 60 days of May 7, 2001.
    Abstract: RBS, an Agency within the USDA Rural Development mission 
area, will administer the VADG program. The primary objective of this 
program is to establish the Agricultural Marketing Resource Center. 
This Center will have the capabilities, including electronic

[[Page 13490]]

capabilities, to coordinate and provide to independent producers and 
processors of value-added agricultural commodities and products of 
agricultural commodities information on value-added research, business 
operations, legal issues, financial issues, and logistical assistance 
related to value-added processing. The Center will also develop a 
strategy to establish a nationwide market information and coordination 
system.

Public Burden in This NOFA

    At this time, the Agency is requesting OMB clearance of the 
following burden:
    Standard Form 424 ``Application for Federal Assistance.''
    This form is used by applicants as a required face sheet for 
applications for Federal assistance.
    Standard Form 424A ``Budget Information--Non-construction 
Programs.''
    This form must be completed by applicants to show the project's 
budget breakdown, both as to expense categories and the division 
between Federal and non-Federal sources.
    Standard Form 424B ``Assurances--Non-Construction Programs.''
    This form must be completed by the applicant to give the Federal 
government certain assurances that the applicant has the legal 
authority to apply for Federal assistance and the financial capacity to 
pay the non-Federal share of project costs. The applicant also gives 
assurance it will comply with various legal and regulatory requirements 
as described in the form.
    The grant awardee will be required to do the following.
    1. Sign a Value-Added Agricultural Product Market Development Grant 
Agreement acceptable to RBS.
    2. Use Standard Form 270, ``Request for Advance or Reimbursement'' 
to request advances and reimbursements.
    3. Submit a Standard Form 269, ``Financial Status Report'' and list 
expenditures according to agreed upon budget categories on a quarterly 
basis starting with the first full quarter after the grant award.
    4. Submit quarterly performance reports which compares 
accomplishments to the objectives. If established objectives are not 
met, discuss problems, delays, or other problems that may affect 
completion of the project; establish objectives for the next reporting 
period; and discuss compliance with any special conditions on the use 
of awarded funds.
    5. Maintain a financial management system that is acceptable to the 
Agency.
    6. Collect and maintain data provided by the independent producers 
on race, sex, and national origin.
    7. Submit a final project performance report.

Project Proposal

    The applicant must submit a project proposal containing the 
elements described in this NOFA and in the format prescribed. The 
elements of the proposal are: (1) Table of Contents providing page 
numbers for each component of the proposal; (2) a project Summary, not 
to exceed one page, that includes a description of the project and the 
names of individuals working on the project; and (3) a project 
narrative that discusses the goals of the Center, the specific tasks to 
be performed, and the seven criteria which are the basis for selection 
for funding.

Project Reporting Requirements

    The grant Awardee will be required to submit written performance 
reports on a quarterly basis. The performance report shall include, but 
need not be limited to: (1) A comparison of actual accomplishments to 
the objectives; (2) if objectives were not met, reasons why they were 
not; (3) problems, delays, or adverse conditions which will materially 
affect attainment of planned project objectives; (4) objectives 
established for the next reporting period; and (5) status of compliance 
with any special conditions on the use of awarded funds.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 13 hours per response.
    Respondents: Non-profit corporations and institutions of higher 
education.
    Estimated Number of Respondents: 40.
    Estimated Number of Responses per Respondent: 1.2.
    Estimated Number of Responses: 48.
    Estimated Total Annual Burden on Respondents: 628 hours.
    Copies of this information collection can be obtained from Cheryl 
Thompson, Regulations and Paperwork Management Branch, (202) 692-0043.

Comments

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Agency, including whether the information will have practical 
utility; (b) the accuracy of the Agency estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (c) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (d) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    All responses to this NOFA will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record. Comments on the paperwork burden may be sent to Cheryl 
Thompson, Regulations and Paperwork Management Branch, Rural 
Development, U.S. Department of Agriculture, Stop 0742, 1400 
Independence Avenue SW., Washington, DC 20250-0742.

    Dated: February 26, 2001.
William F. Hagy III,
Acting Administrator, Rural Business-Cooperative Service, United States 
Department of Agriculture.
[FR Doc. 01-5372 Filed 3-5-01; 8:45 am]
BILLING CODE 3410-XY-P