[Federal Register Volume 68, Number 53 (Wednesday, March 19, 2003)]
[Notices]
[Pages 13270-13279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6589]


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DEPARTMENT OF COMMERCE

International Trade Administration

RIN 0625-ZA05


Market Development Cooperator Program

AGENCY: International Trade Administration, Commerce.

ACTION: Notice of Funding Availability.

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SUMMARY: The International Trade Administration (ITA) of the U.S. 
Department of Commerce (the Department) requests that eligible 
organizations submit proposals (applications) for the fiscal year (FY) 
2003 competition for Market Development Cooperator Program (MDCP) 
awards. ITA creates economic opportunity for U.S. workers and firms by 
promoting international trade, opening foreign markets, ensuring 
compliance with U.S. trade laws and agreements, and supporting U.S. 
commercial interests at home and abroad.
    Through MDCP cooperative agreements the Department works with 
export multiplier organizations providing technical and financial 
assistance which these organizations match. Export multiplier 
organizations compete for a limited number of MDCP awards.
    Eligible export multipliers include trade associations, state 
economic development/trade departments, small business development 
centers, World Trade Centers, chambers of commerce, and other non-
profit industry organizations. These export multipliers are 
particularly effective in reaching small- and medium-size enterprises 
(SMEs). MDCP awards help to underwrite the start-up costs of new export 
ventures which export multipliers are often reluctant to undertake 
without Federal Government support. MDCP aims to develop, maintain and 
expand foreign markets for non-agricultural goods and services produced 
in the United States and serves to:
    [sbull] Challenge the private sector to think strategically about 
foreign markets;
    [sbull] Spur private-sector innovation and investment in exporting; 
and
    [sbull] Increase the number of U.S. companies, particularly SMEs, 
taking decisive export actions.
    As an active partner, ITA will, as appropriate, guide and assist 
export multipliers in achieving project objectives. ITA encourages 
export multipliers to propose projects that (1) best meet their 
industry's market development needs; and (2) leverage the partnership 
between the export multiplier and ITA.

DATES: Public Meeting: The Department will hold a public meeting to 
discuss MDCP proposal preparation, procedures, and selection process on 
Friday, April 4, 2003. The two-hour meeting will begin at 10 a.m. in 
Room 6059, at the Herbert Clark Hoover Building, 14th and Constitution 
Avenue, NW., Washington, DC. The Department will not discuss specific 
proposals at this meeting. Attendance is not required.
    Applications: The Department must receive completed applications by 
5 p.m. Eastern Daylight Time, Tuesday, May 15, 2003. Late applications 
will not be accepted. They will be returned to the sender. Applicants 
must ensure that the service they use to deliver their application can 
do so by the deadline. Due to recent security concerns, packages and 
envelopes sent to the Department via U.S. mail have been delayed 
several days or even weeks. The delays have affected all forms of the 
U.S. mail, including first-class, priority, and express.
    As set forth under IV.B.2. Number of Copies, ITA requests one 
original application, plus seven (7) copies. Applicants for whom this 
is a financial hardship should submit an original and two copies. 
Applications should be submitted to the contact below.

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, NW., Room 3215, 
Washington, DC 20230.
    Email: [email protected].
    Phone/Fax: (202) 482-2969/ -4462.
    Internet: http://www.export.gov/mdcp.
    Application Kit: A kit which includes required application forms is 
available at http://www.export.gov/mdcp. A ``hard-copy'' version is 
available upon request.
    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.
    From March 19, 2003 through May 15, 2003, the Department does not 
counsel potential applicants regarding the merits of projects they may 
propose in their applications. During this competition period, the 
Department may respond to potential applicants' questions regarding 
eligibility, technical issues, procedures, general information, and 
referral.\1\ For example, during the competition period the Department 
may refer a potential applicant to sources for market research on a 
foreign market identified by the potential applicant. However, to 
continue the example, the Department may not comment on the merits of 
including that market in a proposal, or suggest an alternative market.
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    \1\ Outside of the competition period, the Department is free to 
counsel potential applicants on the merits of their proposed 
projects.

SUPPLEMENTARY INFORMATION: Authority: The Omnibus Trade and 
Competitiveness Act of 1988, Pub. L. No. 100-418, Title II, sec. 2303, 
102

[[Page 13271]]

Stat. 1342, 15 U.S.C. 4723 and Pub. L. No. 107-38.\2\
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    \2\ 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://www.secure.law.cornell.edu/federal/.
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    Catalog of Federal Domestic Assistance (CFDA): No. 11.112, Market 
Development Cooperator Program.

I. Definitions of Terms

    Several definitions are provided below to assist readers in 
preparing MDCP applications. These definitions do not supplant or 
supercede definitions provided in the Department's Grants and 
Cooperative Agreements Interim Manual (February 2002).

A. Definition of Frequently Used Terms

    Several terms used throughout this request for applications have 
specific meanings that may not be evident. These are defined below.
    1. Award Period: The time-span established in the award document 
during which Federal sponsorship begins and ends. The term ``award 
period'' is also referred to as ``project period'' in 15 CFR part 14.2. 
Each applicant proposes an award period of up to three years in their 
application. The award period may be extended. Extensions usually do 
not exceed 12 months. All extensions must be approved in writing by the 
Grants Officer.
    2. Commercial Service: Formally known as the U.S. and Foreign 
Commercial Service (US&FCS), the Commercial Service, one of ITA's major 
program areas, is statutorily mandated to promote exports of goods and 
services from the United States, particularly by SMEs, and to protect 
U.S. business interests abroad. It is composed of three main units. Two 
of these encompass entities whose staff work with or on practically 
every MDCP project team, namely, the domestic U.S. Export Assistance 
Centers (USEACs) and the overseas Commercial Service offices.
    3. Cooperative Agreement: This legal instrument used for MDCP 
awards reflects a relationship between the Department and a recipient 
whenever: (1) The principal purpose of the relationship is to transfer 
money, property, services, or anything of value to accomplish a public 
purpose of support or stimulation authorized by Federal statute and (2) 
substantial involvement (e.g., collaboration, participation, or 
intervention by the Department in the management of the project) is 
anticipated between the Department and the recipient during performance 
of the contemplated activity. Cooperative agreements are subject to the 
same OMB, Treasury, and other Federal laws and policies as grants. See 
31 U.S.C. 6305. See II.B. Administration of Award Activity below for 
additional information about the Department's involvement.
    4. Cooperator: An export multiplier (see definition below) that 
wins an MDCP financial assistance award in ITA's annual competition. A 
cooperator is a ``recipient'' (see definition below) of Federal 
financial assistance. Cooperator status is valid only for the term of 
the MDCP award period.
    5. Cooperator Event: An export promotion or market development 
activity undertaken as part of an MDCP project such as a trade mission, 
a trade show, a technical seminar, or opening a foreign office. Other 
examples include, but are not limited to, those listed below in II.A. 
Examples of Project Activity.
    6. Current or Past Cooperator: An organization that currently has 
or in the past has had an MDCP project.
    7. Domestic Commercial Service Office: A U.S. Export Assistance 
Center.
    8. Export Multiplier: A trade association, state department of 
trade, and other non-profit that does not export, but helps companies 
to export. (See III. Eligibility below.)
    9. Fiscal Year: The fiscal year of the Federal Government. The 
twelve month period from October 1 through September 30.
    10. Overseas Commercial Service office: A Commercial Service unit 
whose employees are based in U.S. embassies, consulates, or other 
locations abroad.
    11. Industry: The U.S. potential exporters that an applicant's 
project is designed to benefit. The target group can be very broad or 
quite specific. One applicant, for example, may define the industry as 
all U.S. producers of tennis equipment and services. For another 
applicant, ``industry'' might refer only to California tennis equipment 
producers. Another applicant might define its industry as all 
California companies.
    12. Market Access and Compliance (MAC): One of ITA's major program 
areas dealing with trade negotiations, compliance with trade 
agreements, and trade policy. MAC professionals often serve on project 
teams.
    13. Office of Planning, Coordination and Management (OPCM): The 
Trade Development (TD) office that administers the MDCP.
    14. Produced in the United States: Having substantial inputs of 
materials and labor originating in the United States, such inputs 
constituting over 50 percent of the value of the good or service to be 
exported.\3\
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    \3\ ``Trade Mission Application Form'' ITA Form 4008P-1 (Rev. 8/
97), available from http://www.ita.doc.gov/ooms/forms.htm.
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    15. Product: A U.S. non-agricultural good or service.
    16. Project: A series of activities proposed in an MDCP 
application--or, after an MDCP award is made, in an amendment request--
and approved by the Department which occurs during the award period.
    17. Project Team Leader: A Trade Development employee who 
coordinates MDCP project activity with a cooperator and serves as the 
cooperator's primary point of contact with ITA. (See II. B.1. Project 
Team below.)
    18. Recipient: A cooperator. The organization that receives an MDCP 
award.
    19. Request for Applications (RFA): Federal Register notice 
announcing the availability of MDCP financial assistance funds.
    20. Trade Development (TD): One of ITA's major program areas that 
looks at all aspects of exporting from an industry perspective. Most 
project team leaders are TD industry specialists. TD's Assistant 
secretary makes the final selection of MDCP award winners.
    21. U.S. Export Assistance Center (USEAC): A domestic Commercial 
Service office. USEACs are located across the United States.
    22. U.S. Product: See Product and Produced in the United States 
above.

B. Other Definitions

    Some terms are best understood in the context of a more detailed 
discussion. For terms that do not appear above, refer to the RFA 
section where the term is discussed.

II. Program Description

    The goal of the MDCP as set out in authorizing legislation is to 
develop, maintain, and expand foreign markets for non-agricultural 
goods and services produced in the United States. Non-agricultural 
goods and service means goods and services other than agricultural 
products as defined in 7 U.S.C. 451.\4\
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    \4\ 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 Project Activity

    Applicants should propose activities appropriate to the market 
development needs of the relevant U.S. industry.

[[Page 13272]]

Examples from prior years are set forth below.\5\ These are provided 
only for illustration. Applicants are not required to propose any of 
these activities:
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    \5\ Visit http://www.export.gov/mdcp for a description of each 
of the MDCP projects funded to date.
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    1. Foreign trade show/trade mission participation;
    2. Demonstration of U.S. products abroad;
    3. Export seminars;
    4. Establishment of technical servicing abroad;
    5. Joint promotion of U.S. products with foreign partners;
    6. Establishment of an overseas office \6\;
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    \6\ Such an office should not duplicate the programs or services 
of the Commercial Service Office(s) in the region, but could include 
co-location with a Commercial Center of the Commercial Service.
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    7. Detail of a representative to a Commercial Service office in 
accordance with 15 U.S.C. 4723(c);
    8. After-sale service training of foreign nationals;
    9. Promotion of standards that ensure market access for U.S. 
products; and
    10. Publication of product brochures or a company directory.

B. Administration of Award Activity

    As noted above in I.A.3. Cooperative Agreement, the Department will 
have substantial involvement with the cooperator. This involvement 
results primarily from the activities of the project team.
    1. Project Team: To administer each cooperative agreement, a 
project team is established including key personnel from the cooperator 
and ITA officials who can help the cooperator achieve MDCP project 
objectives.\7\ Each project team acts as the project's ``board of 
directors'' establishing direction, recommending changes when 
necessary, and working on project activities.
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    \7\ If needed, representatives from other federal agencies may 
be invited to participate on the project team.
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    2. Annual Operating Plan: Each year during the award period, the 
project team formulates an operating plan based on the work plan 
submitted in the application. The plan identifies project events, 
projected dates, team responsibilities, and a rough cost estimate for 
each event and ongoing activity scheduled during the fiscal year 
(October through September).\8\ Applicants do not submit annual 
operating plans in their applications. They are developed only after 
receipt of an award and designation of the project team.\9\
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    \8\ Some of the planning by ITA team members is affected by the 
Federal fiscal year. Cooperators should anticipate finalizing their 
annual operating plans well before October 1.
    \9\ The annual operating plan is a blueprint for team activity 
worked out between the cooperator and the project team leader. For 
example, one activity listed could be a trade mission. In addition 
to dates and responsibility, the cooperator would list a rough 
estimate of costs based on the project budget submitted in the 
application, as amended. (The annual operating plan does not include 
detailed breakdowns of cost.) In a separate column, ITA's project 
team leader estimates the amount of ITA administrative funds needed 
to pay for ITA travel and certain other expenses incurred supporting 
the mission. (Funding of ITA team members' participation is subject 
to availability of funds.)
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    3. Regular Team Meetings: Project teams normally meet in-person at 
least every three months. In between the quarterly meetings, project 
teams usually hold regular telephone or video conferences. Cooperators 
based in the Washington, DC area usually meet in-person more often than 
quarterly.\10\
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    \10\ Project team leaders usually request and receive sufficient 
ITA administrative funds to pay for travel to the cooperator's 
location for team meetings. Most cooperators make provision in their 
project budgets to travel to Washington, DC for some of the team 
meetings in order to familiarize themselves with all of the federal 
resources available to them.
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    4. Team Participation in Project Activities: Project team members, 
including the project team leader and other ITA team members, 
participate as appropriate in project activities. For example, in the 
past, ITA members of the project team have participated in trade 
missions, recruited for trade shows, delivered presentations at 
seminars, and assisted with numerous other aspects of project activity. 
As noted above in II.B.2. Annual Operating Plan, ITA members of the 
project team pay their own costs associated with their participation.

C. Funding

    1. Funding Availability: For FY 2003, the total funds expected to 
be available for this program are $1.5 million. The Department expects 
to conclude a minimum of five (5) cooperative agreements. No award will 
exceed $400,000, regardless of the duration of the award period.
    2. Match Requirement: A cooperator must contribute at least two 
dollars for each Federal dollar received.
    a. Cash Contribution: A cash contribution is a new outlay of 
cooperator funds for project activity. The cooperator can only use its 
funds--not the funds of a partner or any other entity--as cash 
contribution.\11\ An in-kind contribution is not part of the cash 
contribution.
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    \11\ 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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    (1) One Dollar of Match Must Be Cash: One dollar of a cooperator's 
minimum two-dollar match must be cash contribution. The other dollar of 
match may be either in-kind contribution or cash contribution.
    (2) Program Income: Project fees generated under the award, like 
any other source of program income, must be used for project-related 
purposes during the award period. Applicants should explain any such 
fees.
    (a) Project Benefits and Reasonable Fees: Benefits from the project 
must be made available to all companies in the industry whether or not 
a company is a member or constituent of the cooperator or its 
partner(s). In some situations, a cooperator may charge lower fees to 
one class of companies than to another. For example, a trade 
association could charge a lower participation fee to a member company 
than it does to a nonmember. This is permitted as long as the 
difference in fees is reasonable.
    (b) Cash Match If Value Added: Program income expended on project 
activity may be counted as cash match, if it represents value added by 
the cooperator for project activity. This can be illustrated in the 
example of a company that attends a trade show as part of a 
cooperator's project. If the company negotiates amounts for its own 
arrangements with vendors, pays the total amount to the cooperator, 
then has the cooperator pay the amount to the vendors, the cooperator 
has added no value. The cooperator cannot claim the fees as cash match.
    The same cooperator could claim fees paid by the company for trade 
show participation, if the cooperator adds value and the fees represent 
something of value that furthers project goals. For example, the 
cooperator could create its own trade-show participation package. This 
might include finding optimal hotel accommodations, securing group 
airfare, meeting with trade show organizers before the show, and 
organizing a reception to take place during the show. Such a cooperator 
package would help determine project success. When companies pay the 
fees for such a package, they are doing more than getting themselves to 
a trade show, they are agreeing that the project itself has value. 
Because the cooperator's package adds value and furthers project goals, 
the cooperator could charge fees, use the fees to pay project expenses, 
and claim them as cash match.
    (3) Third Party Contributions: In order for a cooperator to outlay 
cash contributed by a third party, the third party must transfer the 
funds to the

[[Page 13273]]

cooperator. Otherwise, expenditures for goods and services contributed 
by a third party are considered to be in-kind contributions.
    b. In-Kind Contribution: An in-kind contribution is a match other 
than a cash contribution. Examples include the value of staff time of a 
partner organization, airfare donated by a U.S. airline, and cash paid 
by partner organizations for project expenses.
    Applicants can claim only the fair market value of the in-kind 
contribution.\12\ In proposed budgets, applicants should list all in-
kind contributions separately from cash contributions. Applicants must 
describe these in-kind contributions in sufficient detail to determine 
that the requirements of 15 CFR part 14.23(a), or 15 CFR part 24.24 (a) 
and (b) are met.
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    \12\ For example, a consultant cannot claim $150 per hour for 
their donated services unless they can demonstrate that they are 
actually paid that rate by customers for similar work.
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    Applicants should structure their budgets carefully when 
expenditures by companies that benefit from project activity are 
involved. An expenditure by such a company that primarily benefits only 
that company cannot be claimed as in-kind match.
    For example, a company may have made and paid for its own 
arrangements to attend a trade show that a cooperator has included in 
its project. The cooperator could not claim the amount paid by the 
company as in-kind match. The company incurs airfare and other expenses 
for its own benefit, but not necessarily to accomplish project 
objectives. Such expenditures are more self-serving than are true in-
kind contributions to project success.
    This policy should not deter applicants from proposing in-kind 
match. For example, a cooperator can claim the value of airfare donated 
by a U.S. airline. Although the airline benefits from goodwill 
associated with donating the service, it is the cooperator's project 
that benefits directly when the airfare is used to achieve project 
objectives. Unlike the company in the example above, the airline does 
not use the donated airfare itself and thereby benefit directly from 
it.
    c. 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 cash contribution. As illustrated below, the 
remaining $200,000 of the required match can be made up of additional 
cash or in-kind contributions.

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

    d. Cost Share Ratio: The example above establishes a cost-share 
ratio of two-to-one: two cooperator dollars for each Federal dollar. 
The cooperator assumes 2/3 of the total cost. In other words, 67 
percent of the funding is provided by the cooperator and 33 percent by 
the Federal Government. This means that the cooperator will receive one 
dollar for every three dollars in project expenditures.
    e. Additional Match: Cooperators may contribute more than two 
dollars for each Federal dollar; however, as set forth below, this will 
increase the cost-share ratio.

------------------------------------------------------------------------
                                                     Federal  Cooperator
                       Item                           share      match
------------------------------------------------------------------------
Cash..............................................   200,000    200,000
Cash or In-kind...................................  ........    400,000
                                                   -----------
    Total.........................................   200,000    600,000
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    This example establishes a cost-share ratio of three-to-one: three 
cooperator dollars for each dollar of Federal funds. The cooperator 
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 the cooperator will receive one dollar for 
every four dollars in project expenditures.
    f. Direct and Indirect Costs: Applicants may claim indirect costs 
in their project budgets.\13\ Generally, direct costs result directly 
from project activity and usually include expenses such as personnel, 
fringe benefits, travel, equipment, supplies and contractual 
obligations. By contrast, indirect costs are generally those costs that 
are incurred regardless of whether there is an MDCP project. These are 
often referred to as ``overhead'' and usually include expenses such as 
rent, electricity, and gas.
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    \13\ A sample calculation of indirect costs is provided in the 
mock application available at http://www.export.gov/mdcp.
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    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.\14\
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    \14\ 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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    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 
that does not exceed the levels set forth below in II.B.3. Indirect 
Cost Rate, may be used to cover indirect costs.
    3. Indirect Cost Rate: If a cooperator does not have a current 
approved indirect cost rate from another Federal agency, and the 
Department of Commerce will be the largest funding Federal agency, the 
Department will work with a cooperator to establish an indirect cost 
rate. This will not happen until after the applicant has been selected 
as an MDCP award winner.
    Indirect costs are capped by the cooperator's total direct costs or 
the indirect cost rate, whichever is less.\15\ Examples of the two caps 
are set forth below.
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    \15\ Information on calculating an indirect cost rate is 
available at http://www2.dol.gov/oasam/programs/guide.htm.
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    a. Capped by Indirect Cost Rate: In the example below, indirect 
expenses are limited by the indirect cost rate of 30 percent of direct 
costs (461,538 x 0.3 = 138,462). This amount is lower than the other 
possible cap of $261,538, the total cooperator contribution to direct 
expenses. Accordingly, the cap is the lower amount, $138,462.

------------------------------------------------------------------------
                                                     Federal  Cooperator
                       Cost                           share      match
------------------------------------------------------------------------
Direct............................................   200,000    261,538
Indirect (30%)....................................  ........    138,462
                                                   -----------
    Total.........................................   200,000    400,000
------------------------------------------------------------------------

    b. Capped by Cooperator Direct Costs: In the example below, 
indirect expenses are limited by the cooperator's level of contribution 
to direct expenses instead of the amount calculated with the indirect 
cost rate. The indirect cost rate of 60 percent of total direct costs 
yields $240,000 of total indirect costs (400,000 x 0.6 = 240,000). 
Because this amount exceeds the cooperator's contribution of direct 
costs of $200,000, indirect costs are capped at $200,000.

------------------------------------------------------------------------
                                                     Federal  Cooperator
                       Cost                           share      match
------------------------------------------------------------------------
Direct............................................   200,000    200,000
Indirect (60%) (capped)...........................  ........    200,000
                                                   -----------

[[Page 13274]]

 
    Total.........................................   200,000    400,000
------------------------------------------------------------------------

    4. Approved Pre-Award-Period Expenditure: As a general matter, 
cooperators can request reimbursements only for project costs incurred 
during the award period. However, if proposed in the application, 
cooperators may expend project funds to attend a cooperator orientation 
meeting, even if it precedes the beginning of the award period.\16\ See 
Summary: Dates: Public Meeting above.\17\
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    \16\ For successful applicants that include travel to the 
orientation in their application budget, the signed financial 
assistance award that they receive from the Department serves as 
official approval to expend project funds for this purpose, even if 
the orientation precedes the beginning of the award period.
    \17\ This expenditure is limited to allowable expenses (e.g., 
air fare, ground transportation, and lodging) associated with 
attending the orientation.
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    5. Fees for Some Government Services: The Commercial Service 
participates on each MDCP project team. Applicants should understand 
that the Commercial Service is required to charge fees to cover costs 
for many of the services it provides. The policy set forth below 
applies to Commercial Service resources that are provided as part of 
MDCP cooperative agreements.
    The Commercial Service will provide, as part of the cooperative 
agreements, a limited amount of reasonable assistance to MDCP 
cooperators at no charge. The policy set forth below applies to 
Commercial Service resources that are provided as part of the 
cooperative agreements.
    For assistance that goes beyond the ``limited amount of reasonable 
assistance'' as defined below, applicants should make provision in 
their budgets. To determine the cost for services provided by the 
Commercial Service, applicants should contact the USEACs or overseas 
Commercial Service offices. These may be identified at http://www.export.gov/commercialservice.
    There may be situations that prevent the Commercial Service from 
providing no-charge services to cooperators. Perhaps the most common 
example is another event to which the Commercial Service office has 
already committed its resources.
    The definitions below will guide the domestic or overseas 
Commercial Service offices in implementing this policy.
    a. Overseas Commercial Service Offices:
    (1) Limited Amount: Cost-free assistance will not exceed two days' 
Commercial Service effort per cooperator, per country, per year. Direct 
costs and specially-prepared market research are not included in the 
cost-free assistance.
    (2) No Charge: No fees are collected. The term applies only to 
indirect costs such as time expended by Commercial Service employees. 
Cooperators should always expect to pay direct costs, such as hiring an 
interpreter or transportation.
    (3) Reasonable Assistance: This includes appointment making, 
temporary use of Commercial Service office space, when available, 
making hotel arrangements, briefing on market conditions, help 
organizing seminars/conferences, and other similar services worked out 
between the project team leader and the Commercial Service office.
    b. U.S. Export Assistance Centers (USEACs):
    USEACs can generally implement the policy as a no-charge extension 
of normal client support. Most USEAC service to cooperators is provided 
as part of long-term relationships developed in local exporting 
communities throughout the United States.

III. Eligibility

A. Definition of Eligible Entity

    U.S. trade associations, non-profit industry organizations, and 
state departments of trade and their regional associations are eligible 
to apply for an MDCP award. In cases where no entity described above 
represents the industry, private industry firms or groups of firms, may 
be eligible to apply for an MDCP award. Such private industry firms or 
groups of firms must provide in their application, documentation 
demonstrating that no entity in the first three categories listed below 
represents their industry.
    1. Trade Association: 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:
    a. A non-profit small business development center operating under 
agreement with the Small Business Administration; or
    b. A non-profit World Trade Center chartered or recognized by the 
non-profit World Trade Centers Association \18\; or
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    \18\ A description of the World Trade Centers Association is 
available on the Internet at http://www.wtca.org.
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    c. An organization granted status as a non-profit organization 
under Title 26 U.S.C. Section 501(c) (3), (4), (5), or (6) which 
operates as one of the following:
    (1) Chamber of commerce,
    (2) Board of trade,
    (3) Business, export or trade council/interest group,
    (4) Visitors bureau or tourism promotion group,
    (5) Economic development group,
    (6) Small business development center, or
    (7) Port authority.
    3. State Departments of Trade and Their Regional Associations:
    a. Department of a state government tasked with promoting trade, 
tourism, or other types of economic development; or
    b. Associations of the departments of trade (as defined above) of 
two or more states; or
    c. Entities within a state or within a region that are associated 
with a state department of trade, tourism, or other types of economic 
development including non-profit, non-private, non-commercial entities 
which are at least partially funded by, directed by, or tasked by a 
state government to promote trade, tourism, or other types of economic 
development.
    4. Special Note Regarding Educational Institutions: Educational 
institutions, such as schools, colleges, and universities, are 
generally not eligible. However, organizations that are part of an 
educational institution for administrative, financial, legal, or 
logistical reasons may be eligible. Such organizations that are not 
independent legal entities--for example, an unincorporated 
organization--which otherwise may be classified above under 1. Trade 
Association, 2. Non-Profit Industry Association, or 3. State 
Departments of Trade and Their Regional Associations, above are 
eligible.
    In such a case, the eligible entity will include in its application 
a signed letter stating that MDCP funds will be used only by the 
eligible entity for the purposes outlined in its application, and that 
no such funds will be used by or retained by the educational 
institution, even though the funds may need to go through the 
educational institution because of the eligible entity's lack of a 
separate accounting system or lack of status as a separate legal 
entity.

[[Page 13275]]

B. Eligibility of Current or Past Cooperators

    MDCP aims to increase export market development activities by using 
program funds to encourage new initiatives. MDCP funds are not intended 
to replace funds from other sources, nor are they intended to replace 
MDCP funding from a previous award. Current or past cooperators may 
propose a new project. See V.A.4. Creativity and Capacity below.

C. Determination of Eligibility

    1. Request for Determination: Prospective applicants are encouraged 
to resolve questions regarding eligibility by requesting an eligibility 
determination in writing accompanied by the most current version of all 
of the following documents that apply:
    a. Articles of incorporation,
    b. Charter,
    c. Bylaws,
    d. Information on types of members and membership fees,
    e. Internal Revenue Service acknowledgment of non-profit status,
    f. Annual report,
    g. Audited financial statements,
    h. Documentation of ties to state trade departments or their 
regional associations, and
    i. The letter described in III.A.4. Special Note Regarding 
Educational Institutions above.
    Prospective applicants should submit eligibility determination 
requests as soon as possible, if they wish to have determinations prior 
to the application deadline. This deadline will not be extended, and 
applicants should continue to work on applications while awaiting the 
Department's eligibility determination.
    2. Joint Ventures: Entities may join together to submit an 
application as a joint venture; however, only one eligible organization 
can be the designated cooperator. For example, two trade associations 
may pool their resources and submit one application, but only one of 
the two will be the cooperator. Foreign businesses and private groups 
also may join with eligible U.S. organizations to submit applications 
and to share project costs. Applicants should pay special attention to 
II.C.2.b. In-Kind Contribution above, when formulating a partnership or 
joint venture.

IV. Applications

A. Format

    The basic elements of the application are set forth below. 
Additional instructions and required forms are provided in the 
application kit available from www.export.gov/mdcp.
    1. Executive Summary: In accordance with V.B. Evaluation and 
Selection Procedures below, the Department will distribute applicants' 
one-page summaries to its experts to solicit comments. This summary 
should communicate the essence of the application proposal including 
the following:
    a. Applicant's name and location,
    b. Name of partnership organizations joining applicant,
    c. ITA entities and other Federal offices with which applicant 
envisions working,
    d. Amount of Federal funds requested,
    e. Total project budget,
    f. Proposed award period,
    g. Foreign markets targeted,
    h. U.S. industry to be promoted, and
    i. Brief description of the project activities and methods.
    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. Market potential of the U.S. products,
    b. Competition from host-country and third-country suppliers,
    c. Economic situation and the ability of a country to import the 
U.S. products,
    d. Industry resources that can be brought to bear on developing a 
market,
    e. Industry's ability to meet potential market demand, and
    f. Industry's after-sales service capability in designated foreign 
market(s).
    3. Project Description: After describing their completed basic 
research, applicants should develop marketing plans that set forth 
project objectives and the specific activities applicants will 
undertake.
    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 ITA as a partner in project 
activities.
    b. Performance Measures:
    (1) Applicant-Designed Performance Measures: Applicants should 
develop and utilize performance measures which reasonably gauge project 
success.
    (2) ITA Performance Measures: ITA reports results using the 
Government Performance and Results Act (GPRA) measures defined for its 
programs and activities.\19\ All cooperators will report quarterly on 
the GPRA measures listed below. Because they are not defined by the 
cooperator, ITA recognizes that some GPRA measures may be more 
applicable to some projects than to others. However, cooperators should 
be prepared to record the effect of MDCP project activity on as many of 
the performance measures below as possible.
---------------------------------------------------------------------------

    \19\ GPRA was enacted August 3, 1993 (Pub. L. 103-62).
---------------------------------------------------------------------------

    (a) How does MDCP project activity increase:
    (i) Awareness and understanding of ITA products and services,
    (ii) Satisfaction with the quality of ITA products and services,
    (iii) Ease of use of ITA's Internet portal, and
    (iv) Ease of access to ITA export and trade information and data,
    (b) Number of deals \20\ executed by U.S. businesses,
    (c) Dollar value of exports of U.S. businesses resulting from 
participation in MDCP project activities,
    (d) Number of U.S. businesses that are new to export,\21\
---------------------------------------------------------------------------

    \20\ A ``deal'' is an action facilitated by the cooperator or 
its partners, including ITA, for U.S. exporters. Deals include the 
following types of export transactions: shipping goods or delivering 
services, signing an agent/distributor, identifying an agent/
distributor, signing a contract with sales expected in the future, 
helping a U.S. firm avoid harm or loss, and helping resolve a trade 
dispute.
    \21\ a ``new-to-export'' firm that transacts an actual, 
verfiable export shipment of goods or delivery of services for the 
first time in the last 24 months, and where any prior exports 
resulted from unsolicited orders or were received through a U.S.-
based intermediary.
---------------------------------------------------------------------------

    (e) Number of U.S. businesses that are new to market,\22\
---------------------------------------------------------------------------

    \22\ A ``new-to-market'' firm is a U.S. firm that transacts an 
actual, verifiable export shipment of goods or delivery of services 
to a market for the first time in the last 24 months, and where any 
prior exports to the market resulted from unsolicited orders or were 
received through a U.S.-based intermediary.
---------------------------------------------------------------------------

    (f) Brief description of each partnership \23\ between ITA and a 
public or private entity that is established or enhanced, and
---------------------------------------------------------------------------

    \23\ A ``partnership'' is a new or enhanced relationship 
codified in writing through a memorandum/letter of understanding/
agreement, reimbursable agreement, grant, cooperative agreement, or 
contract. A partnership is created when an applicant is selected for 
an MDCP award and becomes a cooperator. However, some cooperators, 
in the course of pursuing their MDCP project, might create or 
enhance other partnerships between ITA and public or private 
entities. Any such created or enhanced partnerships should be 
described in a cooperator's quarterly reports.
---------------------------------------------------------------------------

    (g) Number of export activities undertaken by U.S. businesses. (See 
examples below in V.A.1. Export Success Potential.)
    (3) Performance Measure Reporting Requirements: Each cooperator 
should report on both applicant-designed measures and ITA performance 
measures in its quarterly reports.

[[Page 13276]]

    (4) Performance Measure Recording and Reporting System: Each 
applicant should describe its recording and reporting system in its 
proposal. Ultimately, it is the success of individual companies that 
determines the project's export success. Therefore, applicants should 
demonstrate how they plan to ensure that participant companies, and any 
other sources of export success information, will report to it 
anecdotes and other performance measurement information.
    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. As noted 
under II.B.1. Project Team above, each cooperator will work with a 
project team leader and other ITA team members. Team members from other 
federal agencies also may be invited to participate. Applicants must 
describe in detail all assistance expected from ITA or other federal 
agencies.
    d. Project Funding Priorities: Project proposals must be compatible 
with U.S. trade and commercial policy. In addition, applicants are 
encouraged to address the priorities set forth below. An application 
does not need to focus on a specific number of these priorities to 
qualify for an award. It is conceivable that an applicant could do a 
superb job focusing on only one of the priorities and receive an award.
    The international trade priorities listed below are the priorities 
referred to in V.A.3. Partnership and Priorities. The Department is 
interested in receiving proposals that include projects that:
    (1) Promote an industry particularly well suited to foreign market 
development including information technology, telecommunications, 
energy, environmental technology, tourism, services, and healthcare;
    (2) Increase trade opportunities by opening markets through the 
development of new trade agreements, the support of World Trade 
Organization negotiations, the removal of non-tariff barriers, or the 
development of commercial infrastructure in emerging economies;
    (3) Increase overall export awareness and awareness of ITA programs 
and services among U.S. companies, by making SMEs export-ready or by 
facilitating deal-making;
    (4) Ensure compliance with trade agreements;
    (5) Support the Administration's broader foreign policy objectives 
through trade-related initiatives;
    (6) Promote the use of e-commerce as a low-cost, low-risk tool to 
help SMEs to export;
    (7) Increase ``hands-on'' export education designed for SMEs 
through:
    (a) Developing educational tools such as curricula and media, and/
or
    (b) Providing company-specific assistance; and
    (8) Develop non-traditional approaches to creating demand for the 
products/services developed from new U.S. technologies.
    4. Credentials: Each cooperator must ensure adequate development, 
supervision, and execution of project activities for itself and for 
each non-federal partner with significant involvement in the project. 
Therefore, for itself and each such partner, each applicant must:
    a. Address its ability to provide a competent, experienced staff 
and other resources;
    b. Describe its structure and composition;
    c. Discuss the degree to which it represents the industry in 
question;
    d. Describe the role, if any, foreign membership plays in its 
affairs;
    e. Summarize the recent history of its industry's international 
competitiveness;
    f. Provide a resume for the project director and professional 
personnel; and
    g. Project the amount of time each professional will devote to the 
project.
    5. Finance and Budget: Applicants must provide a detailed budget 
for the project including the elements listed below:
    a. Form 424A ``Budget Information--Non-Construction Programs'';
    b. Budget for Project Award Period;
    c. Supporting worksheets and explanations;\24\
---------------------------------------------------------------------------

    \24\ An example of how to generate Form 424A, the Budget for 
Project Award Period, and supporting worksheets and explanations is 
included in the Mock Application at www.export.gov/mdcp. Applicants 
are welcome to copy the spreadsheet file used for the Mock 
Application budget and use it for their own applications.
---------------------------------------------------------------------------

    d. A discussion of financial systems and projections of how, when, 
and from what sources the matching funds will be or have been raised;
    e. A summary of all financial assistance awards received in excess 
of $20,000 over the last five years. This should include the award 
reference number, contact name, title, organization, email (if 
available), fax, and mailing address;
    f. The most recent audited financial statements. If the applicant 
is a sub-unit of an audited entity, in addition to the financial 
statements of the audited entity, the applicant should provide 
financial statements at the most specific level available, whether or 
not these are audited. If the applicant's most recent financial 
statements are not audited, it should submit the most recent unaudited 
financial statements and a statement indicating whether it currently 
has an auditor and when it plans to issue audited financial statements; 
and
    g. Any additional evidence of financial responsibility.
    6. Forms: In addition to the budget forms identified above, each 
application must include the following completed forms:
    a. SF-424 Application for Federal Assistance;
    b. SF-424B Assurances--Non-Construction Programs;
    c. CD-346 Applicant for Funding Assistance; and
    d. CD-511 Certifications Regarding Debarment, Suspension, and Other 
Responsibility Matters.
    In addition, applicants may determine that they need to complete 
forms CD-512 ``Certifications Regarding Debarment, Suspension, 
Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions 
and Lobbying'' and/or form SF-LLL ``Disclosure of Lobbying 
Activities''. These are available at http://www.export.gov/mdcp as part 
of the application kit, which includes explanations of the forms.
    7. Appendices: Appendices should be tabbed or otherwise marked for 
easy reference. Applicants should include in their appendices, whatever 
material supports the main body of the application (IV.A.1-4), 
including the types of appendices listed below.
    a. The portion of the application defined above in IV.A.5. Finance 
and Budget.
    b. The forms noted above in IV.A.6. Forms.
    c. The determination of eligibility that an applicant has received 
from the Department.\25\ An applicant that has been found eligible in 
the past, but does not have a letter of eligibility, should request 
such a letter as soon as possible so it can receive one to include in 
its application.
---------------------------------------------------------------------------

    \25\ If the applicant has not received such a determination, it 
must include in the appendices the documents requested in III.C.1. 
Determination of Eligibility above.
---------------------------------------------------------------------------

    d. Letters of support for the project are not required or 
expected.\26\ Applicants

[[Page 13277]]

that choose to submit letters of support should secure them soon enough 
to include them as application appendices.\27\
---------------------------------------------------------------------------

    \26\ The fact that a public official does or does not submit a 
letter of support does not confer any inherent competitive advantage 
to an applicant. On the other hand, some letters of support can be 
critical to the success of an application. For example, if funds for 
the cash match are to be provided by the state legislature, a letter 
of commitment from the state's governor or comptroller certifying 
the availability of the funds would help the selection panel greatly 
in its review.
    \27\ Including these as appendices may make it easier for all 
reviewers to find such letters in the same place in the application. 
The Department's standard practice for letters of support not 
included as application appendices is to make them available to 
reviewers until the time the Selection Panel identifies the top-
ranked applications.
---------------------------------------------------------------------------

    e. News media are informed by the Department when it announces 
awards. Applicants are invited to submit a list of news media the 
Department can contact when it issues its press release.\28\ The most 
useful information is the fax number and e-mail address of the news 
media contacts. These would include local newspapers, trade 
publications, local broadcast stations, and Internet sites. Rather than 
including these as ``hard-copy'' in the application, the Department 
invites applicants to submit this on floppy diskette, CD, or via email. 
Using the lowest version of any of the following file formats will 
ensure transferability: database (.dbf), Excel (.xls), Lotus 123 
(.wk4), Word Perfect (.wpd), or Microsoft Word (.doc).
---------------------------------------------------------------------------

    \28\ Including news media contacts as an application appendix is 
not required, but doing so will help the Department publicize the 
success of the award winners.
---------------------------------------------------------------------------

    f. Current or past cooperators must submit a comparison between the 
proposed project and current or past projects. See V.A.4. Creativity 
and Capacity below.

B. Submission of Applications

    1. Number of Pages: The main body of the application is limited to 
50 pages. There is no limit on the number of pages for appendices. The 
main body of the application should include the substance of the 
applicant's proposal as identified in IV.A.1. through IV.A.4. above. 
Each page of the main body should be numbered.
    2. Number of Copies: Each applicant must submit a signed original 
application plus two copies. The Department encourages applicants to 
submit five additional copies as well for a total of seven (7) 
copies.\29\ However, if submitting seven (7) copies creates a financial 
hardship, applicants may submit the minimum of two copies plus the 
original.
---------------------------------------------------------------------------

    \29\ Several copies will be needed in order for the Department 
to complete its evaluation. (As noted below under V.B. Evaluation 
and Selection Procedures, four selection panel members and several 
Department staff will review each application.)
---------------------------------------------------------------------------

    If an applicant submits an original and two copies or any other 
number of copies greater than two and less than seven (7), the 
Department will make 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.
    3. Distinguish Between Copies and Original: The Department needs to 
distinguish between the original application and copies. In order to 
facilitate processing of submitted applications, the Department 
recommends that applicants write or stamp ``original'' on the cover 
page of the original.

C. Retention of Applications

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

V. Evaluation and Selection

A. Evaluation Criteria

    The Department is interested in projects that demonstrate the 
possibility of both significant results during the award period and 
lasting benefits extending beyond the award 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. An export initiative is a significant expenditure of 
resources 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. Entering into a strategic alliance \30\ with a foreign firm;
---------------------------------------------------------------------------

    \30\ A collaboration of one company with another company that 
can provide resources to achieve corporate, economic and strategic 
goals. One benefit of strategic alliances is reciprocal access to 
more than one market. For example, firms in two different markets 
can agree to market each other's non-competing products in their 
respective ``home'' markets.
---------------------------------------------------------------------------

    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; and
    n. Signing an export contract/filling an export order.
    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 increase or 
enhance the U.S. industry's presence in the foreign market(s).
    Applicants must provide quantifiable estimates of projected 
increases and explain how they are derived. See IV.A.3.b. Performance 
Measures above. Applicants must detail the methods they will use to 
gather and report performance information.
    3. Partnership and Priorities: The degree to which the project 
initiates or enhances partnership with ITA and the degree to which the 
proposal furthers or is compatible with ITA's priorities stated under 
IV.A.3.c. Partnership above.
    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.
    a. Creativity and innovation can be displayed in a variety of ways. 
Applicants might propose projects that include ideas not previously 
tried to

[[Page 13278]]

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 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.
    b. Current or past cooperators must submit a table comparing their 
current or past project(s) and their proposed project. The need for 
this table and the requested format are described below.
    As noted in the Summary at the beginning of the RFA, MDCP awards 
are designed to help underwrite the start-up costs of new projects. 
Accordingly, current or past cooperators can be in a position to earn 
the maximum number of points under this criterion only if they propose 
projects that are entirely new.
    In order to determine whether a project is entirely new, the 
current or past cooperator must provide, as a separate appendix, a 
comparison between the elements of the proposed project and the 
elements of its current or past MDCP-funded projects. Current or past 
cooperators that propose projects that are not entirely new will 
receive fewer points under this criterion than they would receive 
otherwise.
    In determining the number of points under this criterion, the 
selection panel will consider the level to which a particular applicant 
has incorporated elements of its previously funded MDCP projects. To do 
this, current or past cooperators should submit a table wherein they 
approximate the amount of resources devoted to each project element as 
a percentage of the total. For example, if an applicant received an 
MDCP award in 1995 and spent approximately $400,000 of a total 
$1,000,000 project budget on opening an office in Beijing, it could 
report that 40 percent of the resources of its 1995 project went toward 
the project element of opening its Beijing office. The applicant would 
do the same for the other elements of its projects.

------------------------------------------------------------------------
            Previous project(s)                   Proposed project
------------------------------------------------------------------------
               Element                  %           Element           %
------------------------------------------------------------------------
1....................................  ...  1......................  ...
2 etc................................  ...  2 etc..................  ...
Total................................  100  Total..................  100
------------------------------------------------------------------------

    c. Institutional capacity will be measured by what each applicant 
submits. A current or past cooperator should not assume that success 
with a prior MDCP project will automatically be taken into account by 
the Department when reviewing its application. Each applicant must 
document its institutional capacity in its application.
    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 cooperators must show how the proposed 
project will achieve self-sustainability independent of any current or 
past MDCP projects.
    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

    The applicant is responsible for submitting a complete application 
in a timely manner. Prior to selection, each complete application 
receives a thorough evaluation as set forth below.
    1. Eligibility Determination: OPCM staff, in consultation with the 
Department's Office of General Counsel, review all applications to 
determine the eligibility of each applicant.
    2. ITA Program Area Review: Relevant ITA program areas, including 
TD, MAC, and the Commercial Service, have the opportunity to review the 
submitted applications. This allows experts in the industry sector or 
geographical region to assess applicant claims. These reviewers provide 
insights into both the potential benefits and the potential 
difficulties associated with the applications.
    3. MDCP Administrative Review: Representatives of OPCM review and 
comment on all applications using the evaluation criteria identified 
above. OPCM prepares for the selection panel a review packet including 
the applications and reviewer comments. The MDCP administrative staff 
and program area comments afford the selection panel the insights and 
breadth of experience of Department professionals. However, 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 ITA managers. This panel is chaired by the 
OPCM Director and typically includes three other members, one each from 
TD, MAC, and the Commercial Service. 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 
(``top-ranked applications'') to the Assistant Secretary for Trade 
Development and recommends which of the top applications should receive 
funding. If the amount of funds requested by the top ten applicants is 
less than the funding available, the selection panel recommends 
additional applications for funding in rank order.
    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-ranked applications.
    7. Selection of Applications for Funding: From the top-ranked 
applications forwarded by the selection panel, the Assistant Secretary 
for Trade Development selects those applications which will receive 
funding. In addition to the criteria in V.A. Evaluation Criteria above, 
the Assistant Secretary for Trade Development may consider the 
following in making decisions:
    a. Scores of individual selection panel members and the selection 
panel's written assessments,
    b. Degree to which applications satisfy the ITA priorities 
established under IV.A.3.d. Project Funding Priorities above,
    c. Geographic distribution of the proposed awards,
    d. Diversity of industry sectors and overseas markets covered by 
the proposed awards,

[[Page 13279]]

    e. Diversity of project activities represented by the proposed 
awards,
    f. Avoidance of redundancy and conflicts with the initiatives of 
other Federal agencies, and
    g. 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 announce the award 
winners at http://www.export.gov/mdcp.
    Within ten days of the Department's announcement of the awards, 
unsuccessful applicants will be notified in writing and invited to 
receive a debriefing from MDCP officials.

VI. Other Requirements and Classification

A. Other Requirements

    1. Pre-Award Notification Requirements: The Department of Commerce 
Pre-Award Notification of Requirements for Grants and Cooperative 
Agreements contained in the Federal Register notice of October 1, 2001 
(66 FR 49917), as amended by the Federal Register notice published on 
October 30, 2002 (67 FR 66109), is applicable to this solicitation.
    2. Pre-Award Activities: There is no obligation on the part of the 
Department to cover pre-award costs. Except as noted above in II.C.4. 
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.
    3. Intergovernmental Review: Applications under this program are 
not subject to Executive Order 12372, ``Intergovernmental Review of 
Federal Programs.''

B. Classification

    1. Executive Order 12866: This notice has been determined to be not 
significant for purposes of Executive Order 12866.
    2. Paperwork Reduction Act: This notice contains collection of 
information requirements subject to the Paperwork Reduction Act. The 
use of SF-424, SF-424A, SF-LLL, and CD-346 have been approved by the 
Office of Management and Budget (OMB) under respective OMB Control 
Numbers 0348-0043, 0348-0044, 0348-0040, 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 requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB Control Number.

    Dated: March 14, 2003.
Robert W. Pearson,
Director, Office of Planning, Coordination and Management, Trade 
Development, International Trade Administration, Department of 
Commerce.
[FR Doc. 03-6589 Filed 3-18-03; 8:45 am]
BILLING CODE 3510-DR-P