[Federal Register Volume 67, Number 181 (Wednesday, September 18, 2002)]
[Notices]
[Pages 58756-58764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23686]


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DEPARTMENT OF COMMERCE

Minority Business Development Agency

[Docket No: 980901228-2207-03]


Solicitation of Applications for the Minority Business 
Opportunity Committee (MBOC) Program

AGENCY: Minority Business Development Agency, Commerce.

ACTION: Notice.

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SUMMARY: The Minority Business Development Agency (MBDA) is soliciting 
applications from organizations seeking to operate Minority Business 
Opportunity Committees (MBOC). Applications are being solicited from 
all geographical areas within the United States, including the 
Commonwealth of Puerto Rico and the Virgin Islands. MBDA anticipates 
funding one (1) MBOC within each of the geographic regions listed under 
``For Further Information Contact, Pre-Application Conference''. In 
order for their proposals to receive consideration, applicants must 
comply with all information and requirements contained in this notice 
and the Application Package (AP).
    MBDA is an entrepreneurially focused and innovative organization 
that is committed to empowering minority business enterprises (MBEs) 
and creating wealth-building opportunities. MBDA fosters the creation, 
growth and expansion of MBEs in America by providing business 
development services, tools (e.g.. Minority Business Internet Portal 
http://www.mbda.gov) and programs. Each program is designed to focus on 
the unique business problems of a specific market. MBDA's programs form 
a national business delivery network that addresses the needs of 
minority entrepreneurs throughout the United States. The MBOC program 
is designed to provide minority entrepreneurs with enhanced access to 
markets, capital, and information. This is accomplished by identifying 
contracts, business ownership, marketing, sales, financing, and joint 
venture opportunities, to position MBEs for long-term growth. State or 
local government entities, American Indian Tribes, colleges, 
universities, non-profit, and for-profit organizations are eligible to 
operate MBOCs.
    This solicitation incorporates the new requirement that MBOCs 
utilize information technology to collect and disseminate information 
for and about MBEs. Additionally this solicitation requires that MBOCs 
install systems whereby information regarding performance measures can 
be electronically transmitted to MBDA. (See Computer Requirements.)

DATES: The closing date for applications is October 18, 2002. Completed 
applications for the MBOC program must be: (1) Mailed (USPS postmark) 
to the address below; or (2) received by MBDA at the address below no 
later than 5:00 p.m. Eastern Daylight Time. It is strongly recommended 
that applicants utilize an overnight mail delivery service to ensure 
timely receipt of applications. Applicants using this service must 
ensure that applications are received by MBDA by 5 PM Eastern Daylight 
Time. Applications postmarked later than the closing date will not be 
considered. MBDA anticipates that awards will be made with a start date 
of January 1, 2003.

ADDRESSES: Applicants must submit one signed original plus two (2) 
copies of the application. Completed application

[[Page 58757]]

packages must be submitted to: Minority Business Opportunity Committee 
Program Manager, Office of Executive Secretariat, HCHB, Room 5063, 
Minority Business Development Agency, U.S. Department of Commerce, 1401 
Constitution Avenue, NW., Washington, DC 20230.
    If the application is hand-delivered by the applicant or its 
representative, the application must be delivered to Room 1874, which 
is located at Entrance 10, 15th Street, NW., between 
Pennsylvania and Constitution Avenues.

FOR FURTHER INFORMATION CONTACT: For further information and an 
Application Package contact Stephen Boykin, the MBOC Program Manager, 
at (202) 482-1712.
    Pre-Application Conference: A pre-application conference to answer 
questions related to the solicitation will be conducted. Contact the 
MBDA Regional Office for the date and time. There are five (5) Regions. 
They are comprised as follows:
    1. San Francisco Region, located at 221 Main Street, Suite 1280, 
San Francisco, CA 94105. This region covers the states of Alaska, 
American Samoa, Arizona, California, Hawaii, Idaho, Nevada, Oregon and 
Washington. Contact Melda Cabrera, Regional Director at 415-744-3001.
    2. Dallas Region, located at 1100 Commerce Street, Suite 7B-23, 
Dallas, TX 75242. This region covers the states of Arkansas, Colorado, 
Louisiana, Montana, New Mexico, North Dakota, Oklahoma, South Dakota, 
Texas, Utah and Wyoming. Contact John Iglehart, Regional Director at 
214-767-8001.
    3. Chicago Region, located at 55 E. Monroe Street, Suite 1406, 
Chicago, IL 60603. This region covers the states of Illinois, Indiana, 
Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio and 
Wisconsin. Contact Carlos Guzman, Acting Regional Director at 312-353-
0182.
    4. Atlanta Region, located at 401 W. Peachtree St., NW., Suite 
1715, Atlanta, GA 30308. This Region covers the states of Alabama, 
Florida, Georgia, Kentucky, Mississippi, North Carolina, South 
Carolina, Tennessee, and the Commonwealth of Puerto Rico and the Virgin 
Islands. Contact Robert Henderson, Regional Director at 404-730-3313.
    5. New York Region is located at 26 Federal Plaza, Room 3720, New 
York, NY 10278. This Region covers the states of Connecticut, Delaware, 
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, 
Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia and 
Washington, DC. Contact Hayward Davenport, Regional Director at 212-
264-3262.

SUPPLEMENTARY INFORMATION: Authority: Executive Order 11625 and 15 
U.S.C. 1512.
    Catalogue of Federal Domestic Assistance (CFDA): 11.803, Minority 
Business Opportunity Committee Program.

Program Description

    The Minority Business Development Agency (MBDA) is a part of the 
U.S. Department of Commerce. MBDA was created in 1969 through Executive 
Order; it is the only Federal agency created specifically to foster the 
establishment and growth of minority-owned businesses in America. MBDA 
provides assistance to socially or economically disadvantaged groups 
who own or wish to start or expand their own businesses. The 
disadvantaged groups that MBDA serves include African Americans, Native 
Americans, Puerto Ricans, Spanish-speaking Americans, Eskimos, Aleuts, 
Asian Indians, Asian Pacific Americans, and Hasidic Jews. The MBOC 
Program strives to help this population segment to achieve 
entrepreneurial parity by actively facilitating the deployment of 
resources to enable the minority business community to grow and compete 
in the U.S. and global economies.
    The Minority Business Opportunity Committee (MBOC) is a local 
volunteer organization comprised of high-level, public and private 
sector executives. These executives are dedicated to forming alliances 
that plan, coordinate, create and deliver innovative policies, 
programs, and strategies that significantly accelerate the level of 
entrepreneurial activity within the minority business community. MBOCs 
encourage greater participation and interaction between majority and 
minority business owners. The primary and long-range goal of an MBOC is 
to increase opportunities for minority entrepreneurs to obtain 
additional capital, management skills, and market penetration.
    In order to accomplish these goals, MBOCs perform the following 
functions:

--Serve as local centers of influence to increase levels of 
communication between MBOC memberships and the local minority business 
community and to facilitate the development of strategies leading to 
more financial transactions between the majority and minority business 
community.
--Identify and facilitate wealth-creating and economy-stimulating 
opportunities within the minority business sector.
--Develop approaches for disseminating wealth-building information to 
the minority business communities.
--Identify barriers to economic growth and develop strategic solutions 
for overcoming these barriers, particularly in the area of capital, 
management and market penetration (Money, Management, and Market--3 
M's).
--Serve as community advocates for the full inclusion of minority 
businesses in the economic life of the community.
--Serve as mentoring entities for minority businesses.
--Serve as strategic partners to blend core competencies and leadership 
capabilities of MBOC membership with the complementary strengths and 
capabilities of minority businesses.

    The purpose of the MBOC Program is to move the minority business 
community into the business mainstream as a viable contributor to the 
economy. The primary objectives of MBOCs are to increase opportunities 
for minority-owned companies to access capital and markets, and to 
develop institutional capability at the local level for continuing 
minority business success.

Background

    The MBDA has established the MBOC Program as a vehicle for 
providing timely market leads, access to capital, resources, and 
current business information. MBOCs assist MBEs seeking to market their 
products and services within the local economy. In accomplishing this 
purpose, MBOCs help to facilitate economic parity and to bring 
coordination and synergy to the MBE development efforts taking place 
within an applicant-defined geographical service area.
    MBOCs are typically comprised of local governments, business and 
industry leaders, and representatives of organizations that conduct 
substantial purchasing within the regional economy. These 
representatives should have the authority to influence their respective 
organizations to be responsive to the needs of MBEs. MBOC member 
organizations may include large corporations, federal, state, and local 
governments, banking and financial institutions, chambers of commerce, 
community development organizations, training organizations, trade 
associations, economic development groups, quasi-public entities 
(transit authorities, ports, stadium authorities, and public 
utilities), and non-profit

[[Page 58758]]

entities to include hospitals, colleges, and universities. Industries 
represented on the MBOC should include, where appropriate, 
transportation, construction, travel and tourism, high technology, 
health care, telecommunications, manufacturing, retailing, and other 
sectors of the local economy that generate, or have the potential to 
generate, sales, and business ownership opportunities. Participation on 
the MBOC of a broad cross-section of government and industry executives 
helps to ensure that MBEs have access to a breadth of information 
concerning market opportunities. The purpose of the MBOC Program is to 
increase entrepreneurial endeavor and promote the full inclusion of 
MBEs in the overall economy.

Enhancing the MBOCs Through Technology

    Over the past three years, MBDA has developed a variety of new 
technology tools designed to leverage the benefits of information 
technology to assist the MBE community. The goal of MBDA is to deploy 
technology enhancements to all of MBDA's funded organizations and 
create a state-of-the-art environment for the benefit of minority 
businesses. The MBDA will provide continuously updated information, 
access to resources anywhere in the country, and the best available 
assistance in any given subject area. The implementation of this 
strategy is the Minority Business Internet Portal (MBIP). Technology 
tools that will be made available to the MBOCs through MBDA's MBIP site 
include:
    Phoenix/Opportunity--an electronic bid-matching system that alerts 
participating minority companies of contract and teaming opportunities 
directly via e-mail or fax. Procurement leads are transmitted to 
minority firms on a targeted basis according to the company's industry 
classification and geographic market. Firms seeking to participate in 
this program need only to transmit their company profile to MBDA online 
via the Agency's Phoenix application.
    Resource Locator--a new and unique software application that allows 
MBEs to search for business resources and locate them on a map--
interactively on the Internet. Resource Locator can help minority firms 
identify trade associations representing their industries, government 
licensing and permit offices, management and technical assistance 
providers, and a host of other resources quickly and efficiently, 
through Geographic Information System (GIS) technology.
    Online Commercial Loan Identifier--an Internet-based tool that 
allows minority enterprises to shop for commercial loans online, and 
identify the best available financing terms. The Commercial Loan 
Identifier is designed to give minority firms the benefit of a 
nationwide market for commercial loan products.
    Business and Market Planning Software--software packages to 
streamline and enhance the development of business plans, marketing 
plans and other strategic business documents.
    The MBIP will serve as a very effective vehicle for enhancing the 
scope and service capability of the MBOC network. Through the portal 
site, each MBOC will receive standardized electronic business 
development tools and applications. The portal site will allow each 
MBOC access to the latest information regarding best practices, 
emerging market trends, success strategies, and other activities in the 
minority business development arena.

Work Requirements

    Applicants should first include a description in their proposals 
showing how they intend to establish a detailed organizational and 
functional framework for the management and operation of the MBOC. The 
applicant must demonstrate how the operational structure of the MBOC 
will function and be financed. For example, the applicant should 
indicate how a program will be developed to recruit members from the 
federal, state, local and private sector organizations, and how the 
applicant intends to operate the MBOC in terms of meetings and the 
establishment of subcommittees or task forces. In addition, the 
selection of key personnel, such as a chairperson and executive 
director to manage the MBOC on a daily basis, is important.
    At the onset of the project, MBDA works closely with the successful 
applicant to ensure that an Executive Director is in place within 30 
days of receipt of the award. The Executive Director is approved by 
MBDA and must be an individual who is able to carry out the 
responsibility of this full-time position. The Executive Director and 
the MBOC chairperson, a high level volunteer member of the MBOC, are 
responsible for accomplishment of the goals and objectives of the MBOC. 
The Chairperson, appointed by the recipient, should be a senior ranking 
executive and is expected to serve a minimum of two years. The role of 
the Chairperson is critical to the overall success of the MBOC, as this 
individual is primarily responsible for liaison with the business 
community. The MBOC Executive Director occupies a position funded by 
MBDA. On a day to day basis the MBOC Executive Director's role is to 
provide continuity, professional and program guidance, and information 
and assistance to the overall committee.
    In designing its MBOC proposal, the applicant should note that 
there are eight core areas in which activities must be conducted. MBDA 
encourages applicants to submit proposals that are ``tailored'' to 
their defined markets. Said applicants should also display the 
imagination and innovation they propose to carry out the activities in 
the core areas, to obtain the maximum business development impact. 
Every project proposed should specifically target those socially or 
economically disadvantaged groups, which MBDA serves in accordance with 
Executive Order 11625 and/or reach out to such groups within a broader 
community. Socially or economically disadvantaged refers to individuals 
and communities that are subject to barriers that limit or prevent 
their access to the marketplace. These barriers may be related to 
geographical location, capital, information, or management skills.
    (1) Access to Markets--MBOCs should promote relationship-building 
and the sharing of information between substantial purchasing 
organizations, in the applicant-defined geographical service area, and 
MBE's that provide the services and products sought by these 
organizations. MBOCs must make full use of MBDA's Portal, which 
includes but is not limited to, the Phoenix and Opportunity 
applications (OMB No. 0640-002). MBOCs should request businesses to 
enter information into the Phoenix database. MBOCs should also enter 
opportunities in the Opportunity database. The MBOCs will serve as a 
clearinghouse both for minority companies seeking timely contract 
opportunities, and for mainstream institutions seeking to identify 
particular categories of minority suppliers. The MBOC should collect 
and disseminate procurement opportunity information to the MBE 
community, and engage in matchmaking activities between public/private 
sector purchasers and MBE suppliers.
    (2) Access to Capital--MBOCs should work to create an environment 
within the finance and investment community that fairly values the 
business assets of minority-owned companies. Whether these assets are 
in the form of property, plants or equipment located in minority 
communities, a workforce which consists largely of minority employees 
or the character and credit-worthiness of an individual minority 
business owner,

[[Page 58759]]

the MBOC should help to ensure that the capital markets evaluate these 
assets objectively, and provide minority companies with access to 
capital on a nondiscriminatory basis. In addition to helping to ensure 
the availability of debt financing sources such as commercial banks and 
government-sponsored loan and/or loan guaranty programs, MBOC 
activities should include assisting in the identification of sources of 
equity capital for minority firms, such as venture capital funds, 
institutional investors (insurance companies, pension funds, etc.), and 
high net-worth individuals.
    (3) Contracts and Financial Instruments--Facilitate the award of 
contracts, loans, bonds, and other instruments to minority 
entrepreneurs by being directly involved as the intermediary between 
MBOC members who have the ability to make a contract award or provide a 
loan and MBEs who have the ability to perform the contract or have a 
financial need for capital, resulting in completed transactions.
    (4) Sustained Advocacy on Behalf of the MBE Sector--MBOCs should 
play a clear and highly visible role in articulating the benefits, 
which are derived from the full participation of the relevant MBE 
sector. MBOC leadership, including government officials, private sector 
executives, and other designated representatives of the MBOC should 
conduct media outreach, disseminate economic data, and otherwise 
advocate for inclusion of MBE's in the region's economic mainstream. 
Activities in this area include, the establishment of a Web Page and 
access to MBDA's Minority Business Internet Portal, the establishment 
of a newsletter, conducting workshops, making media appearances, 
attending trade fairs, participating in Minority Enterprise Development 
(MED) Week activities, and ensuring that achievements of the MBOC are 
communicated regularly to the corporate community, elected officials, 
and trade and industry groups. MBOCs should sponsor workshops and 
seminars on topics that promote utilization of minority-owned companies 
within the regional economy. Such activities may be directed at 
minority businesses, for example, arranging and promoting workshops on 
marketing to corporate and institutional clients, or may be directed at 
the mainstream business community, such as workshops on structuring 
diversity programs for procurements, or both. Workshops, conferences, 
and seminars should be designed by the MBOC leadership based on those 
topics which best address the needs and opportunities present within 
that MBOC's particular service area. For instance, an MBOC might 
participate in or develop educational activities to promote export 
opportunities for minority businesses. In addition to being a 
consistent vehicle for the promotion of the economic benefits of a 
healthy minority business sector, the MBOC should develop and set forth 
recommendations for changing procurement, banking, or other practices 
which may impede the growth of minority firms.
    (5) Business Ownership Opportunities--Lack of succession, corporate 
divestitures, and other fortuitous circumstances often create 
opportunities for entrepreneurs to acquire companies. The key to 
identifying such opportunities is establishing relationships with 
corporate decision-makers, banking executives, suppliers and others 
having first-hand knowledge of such companies' conditions. The MBOC 
should develop local programs to bring entrepreneurial and business 
ownership levels in line with minority population percentages (Parity) 
and serve as a vehicle for bringing members of the minority and non-
minority business communities together through the following 
activities: networking, subcommittee assignments, and other activities 
designed to promote the sharing of information. In addition, the MBOC 
should assist minority executives and managers within the corporate 
sector who have an interest in leveraging their current expertise 
through business acquisitions.
    (6) Entrepreneurship--In light of the continuing low formation rate 
of minority businesses, MBOCs should direct some of their activities, 
including the use of events, conferences or workshops, to promoting the 
creation of entrepreneurial attitudes in the business community by 
extolling the benefits of business ownership. MBOCs should also sponsor 
activities designed to cultivate business ownership as a vocation among 
minority youth.
    (7) Resource Development--The MBOC should maintain a constant 
inventory of the various resource providers within the project's 
service area that offer services that could assist minority companies. 
Such resource providers may include banks and other financial 
institutions, bonding companies, business consultants, chambers of 
commerce and other networking groups, trade associations active in all 
viable local industries, state, local and private technical assistance 
providers, etc. Resource development should also include the MBOC's 
ongoing analysis of procurement and financial transaction data on its 
members and participants to enhance the development of strategies to 
overcome barriers to economic growth and development and to allow 
tracking of minority business activities.
    (8) Operational Quality--MBOCs must maintain the efficiency and 
effectiveness of their overall operations. The following considerations 
are means by which an MBOC maintains the efficiency and effectiveness 
of its overall operations as well as the quality of its efforts. This 
requirement directly contributes to an MBOC's overall qualitative 
evaluation and rating as well as the successful completion of all other 
work requirements. Under this work requirement, the MBOC shall: (1) 
Input progress/results to the Performance database in a timely manner; 
(2) comply with all reporting requirements; (3) cooperate with MBDA in 
maintaining content for the Phoenix/Opportunity database, Resource 
Locator, and other online tools located at http://www.mbda.gov; and (4) 
promote and utilize the services and resources of other MBDA programs, 
sponsored efforts and/or voluntary activities. The MBOC shall identify 
MBDA as the funding sponsor by providing signs worded as follows:

    ---------- Minority Business Opportunity Committee (geographic 
area) Operated by ----------. Funded by: MINORITY BUSINESS DEVELOPMENT 
AGENCY (MBDA), U.S. DEPARTMENT OF COMMERCE.

    These signs should be highly visible to the general public. They 
should be prominently displayed on entrances and doors. Include the 
name of MBDA on all stationery, letterhead, brochures, etc. The MBOC is 
not authorized to use either the Department's official seal or the MBDA 
logo on any of its publications, documents or materials without 
specific written approval from the U.S. Department of Commerce. 
Identify the MBOC immediately when answering the telephone. If the 
recipient also requires that its organization's name be given, it 
should be provided only after the MBOC has been verbally identified to 
the caller. Refer to MBDA in all advocacy and outreach efforts such as 
speaking engagements, news conferences, etc.

Computer Requirements

    MBDA requires that all award recipients meet certain computer and 
technology requirements related to the acquisition, installation, 
configuration, maintenance and security of information technology (IT) 
assets, in order to ensure seamless and productive

[[Page 58760]]

interface between and among all grant recipients, the MBDA Information 
Technology system, and the public. These required assets and their 
configuration are hereinafter referred to as the ``enterprise.'' At a 
minimum, each grantee shall have one (1) desktop computer for the 
exclusive use of the MBOC. The basic component of the enterprise will 
be for the desktop workstation to be connected to the Internet using a 
high-speed Internet connectivity. If the recipient chooses to have more 
than one desktop computer, the basic component of the enterprise will 
be for the desktop workstations to be networked together and connected 
to the Internet using high-speed Internet connectivity.
    The desktop computer/network shall have a constant, active 
connection to the Internet during all business hours. The recipient 
shall ensure that it has an E-mail capability with a unique electronic 
mail (email) address available to the public. Each grantee shall 
design, develop and maintain, in accordance with the computer 
requirements, a Web site and shall maintain appropriate computer and 
network security precautions during all periods of funding by MBDA. All 
Information Technology requirements, as described herein, shall be met 
within 30 calendar days after the award.
    1. Desktop Workstation: The MBOC Staff will have access to at least 
one (1) computer workstation. All desktop systems shall be not more 
than two (2) calendar years old at the time of award and shall contain 
a processor (CPU) operating at speeds not less than 800 Megahertz 
(Mhz). Each desktop system shall contain a hard drive with a storage 
capacity of at least 10 Gigabytes (GB). All desktop systems shall have 
installed an operating system fully compatible with Microsoft Windows 
and Microsoft Internet Explorer 5.x or higher. MBDA shall, from time to 
time, designate certain configurations of the enterprise hardware and 
software to meet interface requirements.
    1. Maintenance and Security: Each recipient shall designate and 
train one person competent in the operation of a Microsoft Windows 
compatible workstation. From time to time, MBDA shall require certain 
software to be loaded on desktops. In any given year, the cost of this 
additional software should not exceed $200.00 per workstation. Every 
employee of the Center shall be assigned a unique username and password 
to access the system. Every employee shall be required to sign a 
written computer security agreement. (A suggested format for the 
computer security agreement will be provided at the time of award.) 
Every manager, employee, and contractor and any other person given 
access to the computer system shall sign the security agreement and an 
original copy of the signed agreement shall be kept in the Center's 
files. A photocopy of the agreement shall be sent by fax to MBDA at: 
(202) 482-2696 no later than 30 days after the award. All subsequent 
new hires and associations requiring access to Center or MBDA systems 
shall read, understand and sign the security agreement prior to 
issuance of a password. No employee shall have access to the MBDA 
system without a signed security agreement on file at MBDA.
    2. Web Site: Each recipient shall create and maintain a public web 
site using a unique address (e.g., http://www.mbocname.com). The first 
page (Index page) of the web site shall clearly identify the recipient 
as a Minority Business Opportunity Committee, funded by the U.S. 
Department of Commerce's Minority Business Development Agency. The 
Index page of the web site shall load on software fully compatible with 
Microsoft Internet Explorer 4.x (or higher), and Netscape 4.x (or 
higher), using a normal personal computer with 56Kb/s analog phone line 
connection in less than ten (10) seconds. The web site shall contain 
the names of all managers and employees; the business and mailing 
address of the MBOC; business phone, fax numbers and email addresses of 
the employees; a statement referencing the services available at the 
MBOC, the hours of operation; and a link to the MBDA homepage (http://www.mbda.gov).
    No third party advertising of commercial goods and services shall 
be permitted on the site. Advanced written approval for all links from 
the site to sites other than Federal, state or local government 
agencies and non-profit educational institutions must be approved. The 
approval request is made through the Chief Information Officer, MBDA 
Office of Information Technology Services to the Grants Office, OEAM. 
Such approval shall not be unreasonably withheld, but approval is 
subject to withdrawal if MBDA determines the linked site to be 
unsuitable. No MBOC employee, nor any other person, shall use the web 
site for any purpose other than that approved under the terms of the 
agreement between the recipient and MBDA. The recipient for accuracy, 
currency, and appropriateness shall review every page of the web site 
every three (3) months. Appropriate privacy notices and handicapped 
accessibility will be predominately featured. From time to time, MBDA 
shall audit the recipient's web site and recommend changes in 
accordance with the guidelines set forth herein.
    3. Time for Compliance: Within 30 days after the award, the 
recipient shall report via email to the Chief Information Officer, MBDA 
Office of Information Technology Services and the Grants Officer that 
he/she has complied with all computer and technology requirements as 
specified herein. Within 30 days after the award, the recipient shall 
report the name, contact telephone numbers and email addresses of the 
Project/Executive Director, Network or System Administrator. As 
appropriate, the recipient shall also provide the telephone number and 
email address for the Technical Contact at the Internet Service 
Provider (ISP) providing Internet access for the grantee, the IP number 
of the Domain Name Server (DNS) and/or Primary Domain Control (PDC) 
server, and any other technical information as specified in the 
Technology Requirements.
    4. Performance System: All required performance reporting to MBDA 
shall be conducted via MBDA's Web portal. Within 30 days after the 
award, each designated MBOC employee shall have satisfactorily 
completed the Performance Training Course (PSTC). This course is 
available on-line at www.mbda.gov. Only those persons responsible for 
entering Performance data shall be given passwords and access to enter 
Performance data into the system. Only trained staff shall enter data 
into the Performance system. There shall be no ``sharing'' of passwords 
on the Performance system. Although not required, MBDA encourages input 
of information on a daily basis.
    5. Data Integrity: The recipient shall take the necessary steps to 
ensure that all data entered into MBDA systems, and systems operated by 
the recipient in support of the award, or by any employee of the 
recipient is accurate and timely.

Performance Measures

    In accordance with 15 CFR Part 14 and 15 CFR Part 24, selected 
recipients must manage and monitor functions and activities supported 
by the financial award. Recipients will be required to use program 
performance measures in semi-annual reports to MBDA, and to provide an 
end-of-year assessment of the accomplishments of the project using 
these measures. Applicants are required to set forth semi-annual 
performance goals and compare the goals to actual performance. The 
performance of an MBOC will be judged based on an assessment of how 
well the

[[Page 58761]]

MBOC has accomplished its quantitative goals and objectives, as well as 
a management assessment of operational quality through onsite visits or 
other internal reviews. The applicant is required to submit, as part of 
its plan under the Techniques and Methodologies evaluation criteria, 
its proposed levels of performance on a quarterly basis. During the 
award, the recipient must submit a detailed semi-annual narrative 
report and year end narrative report that analyzes actual achievements 
(i.e., success stories, e.g. significant contract awards to MBEs, 
significant financial transactions to MBEs, facilitation of a major 
merger or acquisition, etc., variances from planned versus actual 
goals, and reasons for not meeting goals, etc.), as they compare to the 
year-to-date (YTD) goal levels.
    A recipient's performance will be evaluated on its accomplishment 
of the Performance Measures set forth below. The overall year to date 
performance takes into account all the performance indicators and is 
based on the following rating system:

110 to 90 points equals Excellent
80 to 89 points equals Commendable
70 to 79 points equals Satisfactory
Below 70 is Unsatisfactory performance

    MBOC program performance must include the following mandatory 
quantitative measures. Recipients who do not meet their goals will be 
assessed points in a proportional amount equal to the numerical goals 
actually achieved for the rating period.
    1. Establish the committee and subcommittees of the MBOC and hold 
at least twelve (12) regularly scheduled meetings. (5 points)
    2. Dollar value of contracting opportunities disseminated. The 
applicant must propose a reasonable dollar value based on its defined 
market. (15 points)
    3. Dollar value of actual contracts awarded to MBEs. (25 points)
    The applicant must propose a reasonable dollar value based on its 
defined market. The MBOC operator must report, on a semi-annual basis, 
that the dollar value of contracts awarded to MBE's was the result of 
MBOC activity or intervention. This report must include the contract 
award dates, the parties to the contracts, and the dollar value of the 
contracts. In order to receive credit towards this performance measure, 
the information in the report must be validated by officials of the 
awarding entities authorized to commit the awarding entities to binding 
agreements.
    4. Develop Memoranda of Understanding with at least six (6) sources 
of financing, both debt and equity, for capital development. (10 
points)
    5. Dollar value of financial transactions completed as a result of 
MBOC activity or intervention. The applicant must propose a reasonable 
dollar value based on its defined market. (20 points)
    The MBOC operator must report, on a semi-annual basis, that the 
dollar value of financial transactions awarded to MBEs was the result 
of MBOC activity or intervention. This report must include the dates of 
the transactions, the parties to the transactions, and the value of the 
transactions. In order to receive credit towards this performance 
measure, the information in the report must be validated by officials 
of the awarding entities authorized to commit the awarding entities to 
binding agreements.
    6. The number of procurement matches effected through the MBDA's 
Phoenix-Opportunity database. The applicant must propose a reasonable 
number of procurement matches based on its defined market. (10 points)
    7. The number of Opportunities entered into the Opportunity system. 
The applicant must propose a reasonable number of Opportunities its 
organization will enter based on its defined market. (5 points)
    8. The number of MBEs entered into the Phoenix system. The 
applicant must propose a reasonable number of MBEs its organization 
will enter based on its defined market. (5 points)
    In addition to the quantitative goals listed above, a recipient's 
performance will be measured through a management assessment of 
operational quality, which refers to the quality and effectiveness of 
the project operator's day-to-day management of the project. The 
management assessment reflects MBDA's own evaluation of the overall 
management of the project based on the agency's onsite or other 
internal review of the project's operations. The management assessment 
reflects such areas as proper staffing, timely input to database, 
appropriate identification of MBDA as a funding source, reporting, 
record keeping, and any other areas that MBDA may deem relevant to 
determining the overall quality of the project's operations. (5 points)
    Applicants should be mindful of these mandatory quantitative 
performance measures and must use them when estimating projected 
project results in their proposals. Applicants are also encouraged to 
develop and utilize additional performance measures they find 
meaningful to demonstrate the success of innovative techniques and 
methodologies. Up to ten (10) Bonus Points will be allowed during the 
Performance evaluation process for the achievement of any additional 
measures proposed by the applicant.

Definitions

    Dollar Value of Procurements/ Contract Awards: In order for an MBOC 
to take credit for the dollar value of a contract/procurement award, 
the award must have been made as a direct result of MBOC membership 
activity or intervention. For example, MBOC Member A is a construction 
contractor who is building a library. MBE B owns a drywall company. 
Through the efforts of the MBOC, Member A awards a contract to MBE B. 
The MBOC may take credit for that contract award.
    Dollar Value of Financial Transactions: The dollar value of 
completed financial transactions represents the total principal value 
of approved loans, equity financing, acquisitions, mergers, or other 
binding financial agreements secured by beneficiaries of the MBOC, with 
the assistance of project staff. For purposes of this performance 
measure, eligible financial transactions are those which have a 
specific dollar value, and which increase the revenues of the 
beneficiary firm, expand its capital base, or produce some other direct 
commercial benefit for beneficiary firms. In order to be deemed 
complete, a financial transaction must be documented by an executed and 
binding agreement between the beneficiary firm and a party capable of 
performing its obligations under the terms of the agreement. MBDA 
recognizes that the financial obligations evidenced by these 
transactions may be long-term, and require performance over an extended 
period. Consequently it is not necessary that the funds or other 
financial value specified under the agreements have actually changed 
hands for the project to receive credit under this performance element, 
so long as the agreement of the parties is documented and binding.
    Funding Availability: MBDA anticipates that approximately $1.2 
million will be available in FY 2003 for Federal assistance under this 
program. Applicants are hereby given notice that funds have not yet 
been appropriated for this program. In no event will MBDA or the 
Department of Commerce be responsible for proposal preparation costs if 
this program fails to receive funding or is canceled because of other 
agency priorities.
    Financial assistance awards under this program may range from 
$100,000 to $400,000 in Federal funding per year based upon the size of 
the market and

[[Page 58762]]

its need for MBDA resources as evidenced by applicant proposals. 
Applicants must submit separate project plans and budgets for each year 
of the three years. The annual awards must have Scopes of Work that are 
clearly severable and can be easily separated into annual increments of 
meaningful work which represent solid accomplishments if future funding 
is not made available to the applicant. Projects will be funded for no 
more than one year at a time. Funding for subsequent years will be at 
the sole discretion of the Department of Commerce (DoC) and will depend 
on satisfactory performance by the recipient and the availability of 
funds to support the continuation of the project.
    Matching Requirements: Cost sharing of at least 25% is required. 
Additional cost sharing is encouraged. Cost sharing may be in the form 
of cash, third party in-kind contributions, non-cash applicant 
contributions or combinations thereof. The share may also be 
contributed by local, state, and private sector organizations. Some 
applicants may want to apply jointly for an award to operate an MBOC.
    Eligibility Criteria: State or local government entities, American 
Indian Tribes, colleges, universities, non-profit organizations, and 
for-profit organizations are eligible to operate MBOCs. Partnerships 
between the public and private sectors are encouraged.
    Award Period: The total project award period is three (3) years. 
Funding will be provided annually at the discretion of MBDA and the 
Department of Commerce, and will depend upon satisfactory performance 
by the recipient and availability of funds to continue the project. 
Project proposals selected for funding will not be required to compete 
during subsequent years within the approved project award period. 
Publication of this notice does not obligate the Department of Commerce 
or MBDA to award any specific cooperative agreement, or to obligate all 
or any part of its available funds.
    Type of Funding Instrument: Financial assistance awards in the form 
of cooperative agreements will be used to fund this program.
    MBDA's substantial involvement with recipients will include 
performing the following duties to further the MBOC's objectives:
1. Post-Award Conferences
    MBDA will conduct post-award conferences for all new MBOC awards to 
allow a clear understanding of the program and its objectives. The 
Agency will:

--Provide an MBOC Handbook, a ``How To'' guidance document.
--Provide an MBDA Directory to the MBOC.
--Orient MBOC staff on administrative and other requirements.
--Provide and explain program reporting requirements and procedures, 
including OMB circulars and lessons learned from prior Federal audits.
--Identify available local resources that may enhance the capabilities 
of the MBOC.
--Provide information about MBDA's Phoenix-Opportunity database, and 
Performance system.
2. Networking, Promoting and Information Exchange
    MBDA will provide the following:

--Access to the Portal.
--Promote the exchange of new business opportunity information within 
the MBDA-funded system.
--Help promote special events at the local, state and national levels 
in celebration of Minority Enterprise Development Week.
3. Project Monitoring
--Monitor the performance of the MBOC. This may include two (2) onsite 
reviews by the Regional Office at mutually agreeable times, or other 
internal reviews, to verify MBOC performance. MBDA will then provide a 
report of the findings and recommendations for improvement, if 
appropriate.
--Approve the selection of the MBOC Executive Director.
    Application Forms and Package: The Application Package (AP) for 
this program consists of the following:

Section I--Federal Register Notice
Section II--Instruction for Preparing a Budget
Section III--Required Forms

    Standard Forms 424, Application for Federal Assistance; 424A, 
Budget Information--Non-Construction Programs; 424B, Assurances--Non-
Construction Programs; and SF-LLL (rev.7-97 if applicable); Department 
of Commerce Forms, CD-346, Applicant for Funding Assistance (if 
applicable); CD-511, Certifications Regarding Debarment, Suspension and 
Other Responsibility Matters; Drug-Free Workplace Requirements and 
Lobbying shall be used in applying for financial assistance. These 
forms may be obtained by (1) contacting MBDA as described in the FOR 
FURTHER INFORMATION CONTACT section above; (2) by downloading Standard 
Forms at http;//www.whitehouse.gov/OMB/grants/index; and (3) and 
Department of Commerce forms may be downloaded at http://www.doc.gov/forms.
    Unsigned applications (SF-424) will be considered non-responsive 
and will be returned to the applicant. Failure to submit other required 
information may result in points being deducted from an applicant's 
score during the evaluation process. MBDA shall not accept any changes, 
additions, revisions or deletions to competitive applications after the 
closing date for receiving applications, except through a formal 
negotiation process.
    Project Funding Priorities: MBDA is especially interested in 
receiving innovative proposals that focus on the following: (1) 
Identifying and working to eliminate barriers which reduce the access 
of MBEs to markets and capital; (2) promoting the understanding and use 
of Electronic Commerce by minority-owned businesses; and (3) increasing 
the number of contract awards and financial transactions (loans) to 
minority entrepreneurs.

Proposal Format

    The structure of the proposal should contain the following 
headings, in the following order:

I. Table of Contents
II. Program Narrative
    1. Applicant Capability
    2. Techniques and Methodologies
    3. Community Involvement/Resources
    4. Creativity and Innovation
    5. Proposed Budget/Costs
III. Forms

    Pages of the proposal should be numbered consecutively.
    Evaluation Criteria: Proposals will be evaluated in a Regional 
Office based on the following criteria:
    (1) Applicant Capability (25%). Considers, among other things, 
knowledge of economic region, i.e., minority business demographics and 
an assessment of the community's need, prior experience in the 
minority-owned business community, and relationships (ties) with 
organizations from which members of the MBOC will be recruited. 
Includes an assessment of the number, qualifications, experience, and 
proposed roles of staff who will administer the MBOC program. 
Qualifications of the chairperson and executive director of the MBOC 
are particularly important. Position descriptions should be included as 
part of the application.
    (2) Techniques and Methodologies (30%). Includes the applicant's 
plan on how to carry out the MBOC work requirements relating to 
activities in the eight core areas, the establishment and

[[Page 58763]]

operation of the MBOC itself, and the applicant's proposed strategies 
for overcoming traditional barriers to the success of minority 
businesses. Each application must contain a detailed work plan that 
delineates a schedule of proposed activities and milestones for 
implementing the work requirements. Applicants must also include a 
description in their proposals showing how they intend to establish a 
detailed organizational and functional framework for the management, 
operation, and funding of the MBOC. For example, the applicant should 
indicate how a program will be developed to recruit members from 
Federal, state, local and private sector organizations; how the 
applicant intends to operate the MBOC in terms of meetings; and the 
establishment of subcommittees and the methodology for the selection of 
a chairperson and executive director to manage the MBOC on a day-to-day 
basis. The applicant must indicate how it intends to encourage member 
organizations to provide opportunities for MBEs and how it will track, 
validate and verify its performance goals. Each applicant will be rated 
according to the degree to which the proposed project will serve to 
reduce disparities. Reviewers will assess each application by examining 
evidence of community need and the applicant's proposed strategies for 
overcoming traditional barriers to market access. Disparities in market 
access must be clearly described and supported. Each application must 
propose strategies for reaching out to targeted groups. These 
strategies must tailor MBOC services to meet their specific needs. 
These strategies must also reflect an understanding of why the barriers 
exist, and show sensitivity for the learning mechanisms, attitudes, 
abilities, and customs of the community.
    (3) Community Involvement/Resources (20%). Each application will be 
rated on the overall level of community involvement in the development 
of the project and the implementation of the proposed project. 
Reviewers will pay particular attention to the partnerships involved 
and the strength and diversity of support for the project within the 
community, and the support for the project's end users. The applicant 
must provide a detailed discussion relating its plan, identified under 
Techniques and Methodologies above, to the particular resources and 
business capabilities of its service area.
    Community involvement must include the development of partnerships 
among the public, non-profit, or private sectors, as an integral part 
of each project. Partnerships must be clearly defined and mutually 
beneficial. The commitments (including both cash and in-kind 
contributions) must be well documented in the application. Partners are 
defined as organizations that supply cash or in-kind resources and/or 
play an active role in the planning and implementation of the project.
    Reviewers will examine the steps the applicant has taken to involve 
a wide variety of community stakeholders in the planning of the 
projects and the plans for ongoing community involvement in the 
project. Each application should contain evidence of demand from the 
community, for the services proposed by the project.
    (4) Creativity and Innovation (15%). Must include unique or novel 
approaches to solving the problems of minority-owned businesses, the 
manner in which activities are customized to meet the special economic 
needs of the MBOC's service area, and creativity in the way the 
applicant proposes to bring together the diverse components which are 
necessary for the success of the MBOC.
    (5) Proposed Budget/Costs (10%). Includes the criteria of 
reasonableness, allowability, and allocability of costs. Cost sharing 
proposed by the applicant is also important, particularly if the 
applicant proposes cost sharing in excess of 25%. Reviewers will 
analyze the budget in terms of clarity and cost-effectiveness. The 
proposed budget must be appropriate to the tasks proposed and 
sufficiently detailed so that reviewers can easily understand the 
relationship of items in the budget to the product narrative.
    An application must receive at least a 70% average score for all 
five criteria to be considered for funding.
    Selection Procedures: Prior to the formal paneling process, each 
application will receive an initial screening to ensure that all 
required forms, signatures and other documentation are present. Each 
application will receive an independent, objective review by a panel 
qualified to evaluate the applications submitted. The independent 
review panel, consisting of at least three federal and/or non-federal 
individuals, will review all applications based on the criteria above. 
Each member of the independent review panel will individually evaluate 
and rank the proposals and submit its rankings and recommendation to 
the National Director. The National Director of MBDA then makes a 
recommendation to the Department of Commerce Grants Officer regarding 
the funding of applications, taking into account the following 
selection criteria:
    (1) The evaluations and rankings of the independent review panel;
    (2) The degree to which applications address MBDA priorities as 
established under the project funding priorities listed above;
    (3) The availability of funds;
    (4) The national geographic distribution of the proposed awards. 
(MBDA anticipates placing at least one MBOC in each of the Agency's 
five regions. These regions and the states comprising regional makeup 
are identified at http://www.mbda.gov.) ?
    (5) The mixture of large and small economic regions/markets/cities. 
The amount of funds awarded to each recipient, the scope of 
programmatic activities, and clarifications and/or correction of errors 
will be determined and/or conducted in pre-award negotiations between 
the applicant, the Grants Officer, and the MBDA Program Officer.

Unsuccessful Competition

    On occasion, competitive solicitations or competitive panels may 
produce less than optimum results, such as competition resulting in the 
receipt of no applications or competition resulting in all unresponsive 
applications received. If the competition results in the receipt of 
only one application, it may or may not require additional action from 
MBDA depending upon the competitive history of the area, the quality of 
the application received, and the time and cost limits involved. In the 
event that any or all of these conditions arise, MBDA shall take the 
most time and cost-effective approach available that is in the best 
interest of the Government. The approaches available are: (1) Re-
competition or (2) Re-Paneling or (3) Negotiation.

Disposition of Unsuccessful Applicants

    Upon the execution of an award by the Department of Commerce, MBDA 
will notify the unsuccessful applicants, in writing, indicating the 
winner of the award and indicating a 30-day timeframe in which to 
request return of the unsuccessful applications. Once this 30-day 
notice has lapsed, MBDA will destroy all unsuccessful applications.
    Intergovernmental Review: Applications under this program are not 
subject to Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.''

Department of Commerce Pre-Award Notification Requirements for Grants 
and Cooperative Agreements

    The Department of Commerce Pre-Award Notification Requirements for 
Grants and Cooperative Agreements

[[Page 58764]]

contained in the Federal Register Notice of October 1, 2001 (66 FR 
49917) are applicable to this solicitation. However, please note that 
the Department of Commerce will not implement the requirements of 
Executive Order 13202 (66 FR 49921), pursuant to guidance issued by the 
Office of Management and Budget in light of a court opinion which found 
that the Executive Order was not legally authorized. See Building and 
Construction Trades Department v. Allbaugh, 172 F. Supp. 2d 138 (D.D.C. 
2001). This decision is currently on appeal. When the case is resolved, 
the Department will provide further information on implementation of 
Executive Order 13202.
    Executive Order 12866. This notice was determined to be not 
significant for purposes of E.O. 12866.
    Regulatory Flexibility Act. Because notice and comment are not 
required under 5 U.S.C. 553(a)(2), or any other law, for notices 
relating to public property, loans, grants, benefits or contracts, a 
Regulatory Flexibility Analysis, 5 U.S.C. 601 et seq., is not required 
and has not been prepared for this notice.
    Paperwork Reduction Act. This document contains collection-of-
information requirements subject to the Paperwork Reduction Act (PRA). 
The use of Standard Forms 424, 424A, 424B, SF-LLL, and CD-346 have been 
approved by OMB under the respective control numbers 0348-0043, 0348-
0044, 0348-0040, and 0348-0046, and 0605-0001.
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with a collection of information subject to the Paperwork 
Reduction Act unless that collection displays a currently valid OMB 
Control Number.

    Dated: September 11, 2002.
Ronald N. Langston,
National Director, Minority Business Development Agency.
[FR Doc. 02-23686 Filed 9-17-02; 8:45 am]
BILLING CODE 3510-21-P