[Federal Register Volume 68, Number 97 (Tuesday, May 20, 2003)]
[Notices]
[Pages 27520-27526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12531]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funding Availability (NOFA) Inviting Applications for a 
University Value-Added Research Grant

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the availability of $300,000 in fiscal 
year (FY) 2003 to fund a grant for research at a university concerning 
the effects of projects for value-added agricultural commodities or 
products on agricultural producers and the commodity markets. Only 
qualified universities are eligible to apply. This Notice lists the 
information needed to submit an application for these funds.

DATES: The deadline for receipt of an application is 4 p.m. EST on July 
29, 2003. Comments regarding the information collection requirements 
under the Paperwork Reduction Act of 1995 must be received on or before 
July 21, 2003.

ADDRESSES: The address for hand-delivered applications or applications 
submitted using an express mail or overnight courier service is: Marc 
Warman, USDA Rural Business-Cooperative Service, 1400 Independence 
Ave., SW., Room 4016, Washington, DC 20250; Telephone: (202) 720-8460. 
Applications sent via the U.S. Postal Service must be sent to the 
following address: Marc Warman, USDA Rural Business-Cooperative 
Service, STOP 3252, 1400 Independence Ave., SW., Washington, DC 20250-
3252. Applications sent via email attachment must be sent to the 
following address: [email protected].

FOR FURTHER INFORMATION CONTACT: Jim Haskell, Acting Deputy 
Administrator, Rural Business-Cooperative Service, USDA, Stop 3250, 
Room 4016, 1400 Independence Ave., SW., Washington, DC 20250-3250, 
telephone: (202) 720-8460, or email: [email protected].

SUPPLEMENTARY INFORMATION: 

Programs Affected

    The research funded by this grant relates to a program listed in 
the Catalog of Federal Domestic Assistance Program under the assigned 
number 10.352 (Value-Added Grants). This program is not subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials.

Paperwork Reduction Act

    The information collection requirements contained in this Notice 
have received temporary emergency clearance by the Office of Management 
and Budget (OMB) under Control Number 0570-0046. However, in accordance 
with the Paperwork Reduction Act of 1995, RBS will seek standard OMB 
approval of the reporting requirements contained in this Notice and 
hereby opens a 60-day public comment period.
    Title: Value-Added University Research Grant.
    Type of Request: New Collection.
    Abstract: This program will be administered by Cooperative Services 
within the Rural Business-Cooperative Service. The Farm Security and 
Rural Investment Act of 2002 (Pub. L. 107-171, signed May 13, 2002) 
authorized the Secretary of the U.S. Department of Agriculture (USDA) 
to award a grant to support research at a university concerning the 
effects of projects for value-added agricultural commodities

[[Page 27521]]

or products on agricultural producers and the commodity markets.
    This is a competitive grant program; it does not have a matching 
funds requirement. The Notice Inviting Applications sets forth the 
policies and procedures associated with the grant application and 
evaluation procedures and ongoing administration requirements for the 
grant award. The paperwork burden associated with the application 
process and ongoing reporting is included in this collection.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 17.7 hours per response.
    Estimated Number of Respondents: 15.
    Estimated Number of Responses per Respondent: 1.8.
    Estimated Number of Responses: 27.
    Estimate of Total Annual Burden on Respondents: 478.5 hours.
    Copies of this information collection can be obtained from Tracy 
Givelekian, Regulations and Paperwork Management Branch, Support 
Services Division at (202) 692-0039.

Comments

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

Program Administration

    The program is administered by the Office of Cooperative Services 
within the Agency.

Background

    Section 6402 of the Farm Security and Rural Investment Act of 2002 
(Pub. L. 107-171) (2002 Farm Bill) authorized a new grant initiative to 
establish up to 15 agriculture innovation demonstration centers 
(Agriculture Innovation Centers or AICs) with the intent of fostering 
the ability of agricultural producers to reap the benefits of producing 
and marketing value-added products. Section 6402(g) also provided that 
the Secretary shall use $300,000 of the funds made available for that 
section to support research into the effects of value-added projects on 
agricultural products and commodity markets. This Notice relates to the 
$300,000 research grant authorized in section 6402(g).

Definitions

    Agency--Rural Business-Cooperative Service (RBS), an agency of the 
United States Department of Agriculture (USDA), or its successor 
agency.
    Cooperative Services--The office within RBS, and its successor 
organization, that administers programs authorized by the Cooperative 
Marketing Act of 1926 (7 U.S.C. 451 et seq.) and such other programs so 
identified in USDA regulations.
    Fixed equipment--Tangible personal property used in trade or 
business that would ordinarily be subject to depreciation under the 
Internal Revenue Code, including processing equipment, but not 
including property for equipping and furnishing offices such as 
computers, office equipment, desks or file cabinets.
    Independent Producers--Agricultural producers, to include 
individuals, for profit and not for profit corporations, LLCs, 
partnerships or LLPs, when these entities are solely owned or 
controlled by producers who do not produce the agricultural product 
under contract or joint ownership with any other organization. An 
independent producer can also be a steering committee composed of 
independent agricultural producers in the process of organizing an 
association to operate a value-added venture that is owned and 
controlled by the independent producers supplying agricultural products 
to the market.
    National Office--The Agency office at USDA headquarters in 
Washington, DC.
    Nonprofit institution--Any organization or institution, including 
an accredited institution of higher education, no part of the net 
earnings of which may inure to the benefit of any private shareholder 
or individual.
    Product segregation--Physical separation of a product or commodity 
from similar products. Physical separation requires a barrier to 
prevent mixing with the similar product.
    Public body--Any state, county, city, township, incorporated town 
or village, borough, authority, district, economic development 
authority, or Indian tribe on federal or state reservations or other 
federally recognized Indian tribe in rural areas.
    Rural and rural area--Includes all the territory of a state that is 
not within the outer boundary of any city or town having a population 
of 50,000 or more and the urbanized area contiguous and adjacent to 
such city or town, as defined by the U.S. Bureau of the Census using 
the latest decennial census of the United States.
    Rural Development--A mission area within the USDA consisting of the 
Office of the Under Secretary, the Office of Community Development, the 
Rural Business-Cooperative Service, the Rural Housing Service and the 
Rural Utilities Service and their successors.
    State--Includes each of the several States, the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and, as may be 
determined by the Secretary to be feasible, appropriate and lawful, the 
Freely Associated States and the Federated States of Micronesia.
    State Office--USDA State Rural Development offices for the 
applicable states.
    Value-Added--The incremental value that is realized by the producer 
from an agricultural commodity or product as the result of (1) a change 
in its physical state, (2) differentiated production or marketing, as 
demonstrated in a business plan, or (3) product segregation. Also, the 
economic benefit realized from the production of farm or ranch-based 
renewable energy. Incremental value may be realized by the producer as 
a result of either an increase in value to buyers or the expansion of 
the overall market for the product. Examples include milling wheat into 
flour, slaughtering livestock or poultry, making strawberries into jam, 
the marketing of organic products, an identity-preserved marketing 
system, and collecting and converting methane from animal waste to 
generate energy. Identity-preserved marketing systems include labeling 
that identifies how the product was produced and by whom.

Eligibility Requirements

    1. The applicant must be an accredited university.
    2. The applicant must have the capacity, including a well developed 
econometric model or the equivalent, to conduct the study.

[[Page 27522]]

    3. The applicant must have a demonstrated record of conducting the 
type of study to be funded.
    4. The applicant must demonstrate that studies proffered under item 
(3) above have been subjected to peer review and the peer reviews found 
the studies to be credible.
    5. A university may participate in more than one application.
    6. The description of the research proposed to be done using grant 
funds must conform to the eligible uses for the funds.
    7. An outstanding judgment obtained against an applicant by the 
United States in a Federal Court (other than in the United States Tax 
Court), which has been recorded, shall cause the applicant to be 
ineligible to receive a grant award.

Uses of Grant Funds

    Grant funds are to be used to perform a study of the effects of 
projects for value-added agricultural commodities or products on 
agricultural producers and the commodity markets. The universe of 
projects studied shall include, but is not necessarily limited to, 
value-added projects funded by USDA pursuant to section 231 of the 
Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note).
    1. The study must systematically examine, using linked, long-term, 
global projections of the agricultural sector, the potential effects of 
the value-added projects identified by the study on (a) the demand for 
agricultural commodities, (b) market prices, (c) farm income and (d) 
Federal outlays on commodity programs. The study must include an 
assessment of the effectiveness of the agricultural innovation centers 
funded pursuant to section 6402 of the 2002 Farm Bill.
    2. Grant funds may be used to assess the performance of USDA value-
added program grant recipients, including agricultural innovation 
centers as part of the study.
    3. Grant funds may be used to assess the requirements imposed by 
USDA on agricultural innovation centers to determine which have the 
effect of maximizing the positive effects of the services provided by 
these centers on (a) the demand for agricultural commodities, (b) 
market prices, (c) farm income and (d) Federal outlays on commodity 
programs.
    4. Grant funds may be used to subcontract component parts of the 
study with prior USDA written approval.
    5. Grant funds may be used to develop data series directly related 
to the research effort, where such data are not otherwise available.

Ineligible Uses of Grant Funds

    1. Developing computer applications for performing the study, other 
than minor modifications to a fully operational model or software 
application. ``Minor modifications'' may not, in the aggregate, exceed 
5 percent of the total grant award.
    2. Construction (in any form).
    3. Improvement, refurbishment or renovation of the grantee's 
research, education or extension space.
    4. Planning, repair, rehabilitation, acquisition, or construction 
of buildings or facilities.
    5. Repair or maintenance of privately owned vehicles.
    6. Purchase of real estate.
    7. Paying obligations incurred before the date of grant approval or 
after the end of the grant period.
    8. General operating costs other than the allowed indirect cost 
rate.
    9. Any other purpose prohibited in 7 CFR parts 3015 and 3019, as 
applicable.

Program Restrictions

    Grant funds are to be used only to perform the research effort. All 
travel using Federal funds must be directly related to the research 
effort as described in the applicable grant agreement. Use of Federal 
funds for attendance at non-related meetings must have prior written 
approval by USDA. Travel and per diem expenses will not exceed those 
paid to federal agency employees. Rates are based upon location. Rate 
information can be accessed on the Internet at http://policyworks.gov/perdiem. Recipients will be restricted to traveling coach class on 
common carrier airlines. Meals and incidental expenses will be 
reimbursed at a rate not to exceed that used by federal agency 
employees. Mileage and gas reimbursement will be at a rate not to 
exceed that used by federal agency employees.

Grant Award Selection Process

    1. Initial Screening. The Agency will screen each application to 
determine eligibility during the period immediately following the 
application deadline.
    2. Rating and Ranking. Applications will be rated and ranked by a 
review panel based on the ``Evaluation Criteria and Weights'' contained 
in this Notice. If there are tied scores after the applications have 
been rated and ranked, the tie will be resolved by reviewing the scores 
for ``Nature of the Proposed Research'' and the applicant with the 
highest score in that category will receive a higher ranking. If the 
scores for ``Nature of the Proposed Research'' are the same, the scores 
will be compared for the next criterion, in sequential order, until one 
highest score can be determined.

Evaluation Criteria and Weights

1. Nature of the Proposed Research (Maximum 35 points)

    The description of the proposed research must be detailed and 
should include an explanation of how the applicant will systematically 
examine, using linked, long-term, global projections of the 
agricultural sector, the effects of value-added projects on the 
following: (a) Demand for agricultural commodities, (b) market prices, 
(c) farm income, and (d) Federal outlays on commodity programs. 
Proposals substantively addressing all four areas will score higher 
than proposals that do not. Any econometric model used for the 
examination must be explained with an emphasis on how the model has 
been developed, the key assumptions incorporated within the model, how 
the model is used, any peer review of the model, and how the applicant 
has used the model to date, with an evaluation of its effectiveness. 
Proposals demonstrating solidly developed models designed for 
agricultural analysis that have been peer reviewed and used for 
analysis similar to the proposal will receive more points than 
proposals discussing untried models. The description should also 
include what data will be used and how it was or will be gathered. 
Proposals demonstrating that the applicant already has access to the 
data will score higher than proposals indicating that the data needs to 
be gathered. Proposals demonstrating good quality control methods for 
data collection will score higher than those proposals lacking in 
quality control methods for data collection.

2. Qualifications of the Researchers (Maximum 20 points)

    The qualifications of the researchers who will be involved with the 
proposed research must reflect an ability to perform the study. High 
education levels and experience in conducting agricultural or value-
added research will receive more points than economic research not 
related to agriculture. Publications of work in the value-added and 
agricultural fields will receive more points than publications not so 
related. For each of these research efforts and publications, points 
will be awarded for evidence that the research was favorably reviewed 
by scholastic peers as evidenced by citations to this research in peer 
research publications. Those

[[Page 27523]]

who can demonstrate favorable peer reviews of research in value-added 
agriculture will receive more points than positively reviewed research 
in other areas.

3. Work Plan/Budget (Maximum 20 points)

    The work plan and budget will be reviewed for specificity, 
realistic timetables and detail. Logical, realistic, and economically 
efficient plans and budgets will result in higher scores.

4. Measuring Effectiveness of Value-Added Projects (Maximum 25 points)

    Proposals that address performance measures applicable to a wide 
range of value-added products and for various stages of producer 
organizational development, will receive more points than those with a 
more narrow range of applicability. Also, those proposals that can 
effectively demonstrate that performance measures contain predictive 
success or failure thresholds will receive higher scores.

Deliverables

    Interim and final project deliverables, inclusive of supporting 
documentation, are due in the form and on the due dates as specified in 
the applicable grant agreement.

Grant Amounts

    USDA reserves the right to make a single grant award or multiple 
smaller awards. In the event an applicant is awarded a grant that is 
less than the amount requested, the applicant will be required to 
modify its application to conform to the reduced amount before 
execution of the grant agreement. The Agency reserves the right to 
reduce or de-obligate the award if acceptable modifications are not 
submitted by the awardee within 15 working days from the date the 
request for modification is made. Any modifications must be within the 
scope of the original application.

Other Considerations

    1. Environmental review. Any grant made by the Agency is subject to 
the requirements of 7 CFR part 1940, subpart G or its successor 
regulation. Some applications may be generally excluded from the 
environmental review process by 7 CFR 1940.333. Applicants for grant 
funds must consider and document within their plans the important 
environmental factors and the potential environmental impacts of the 
activity proposed in the grant application.
    2. Civil rights. Any grant made is subject to the requirements of 
title VI of the Civil Rights Act of 1964, which prohibits 
discrimination on the basis of race, color and national origin as 
outlined in 7 CFR part 1901, subpart E. In addition, any grant made 
under this subpart is subject to the requirements of section 504 of the 
Rehabilitation Act of 1973, as amended, which prohibits discrimination 
on the basis of disability; the requirements of the Age Discrimination 
Act of 1975, which prohibits discrimination on the basis of age; and 
titles II and III of the Americans with Disabilities Act, which 
prohibits discrimination on the basis of disability in places of public 
accommodations. This program will also be administered in accordance 
with 7 CFR part 15, subpart A and all other applicable Civil Rights 
laws.
    3. Other USDA regulations. This grant program is subject to the 
provisions of the following regulations, as applicable: (a) 7 CFR part 
3015, Uniform Federal Assistance Regulations, (b) 7 CFR part 3017, 
Governmentwide Debarment and Suspension (nonprocurement) and 
Governmentwide Requirements for Drug-Free Workplace (Grants), (c) 7 CFR 
part 3018, New Restrictions on Lobbying, and (d) 7 CFR part 3019, 
Uniform Administrative Requirements for Grants and Agreements with 
Institutions of Higher Education, Hospitals and other Nonprofit 
Organizations.
    4. Audit requirements. Any grantee must comply with the audit 
requirements of 7 CFR part 3052. The audit requirements apply to the 
years in which grant funds are received and years in which work is 
accomplished using grant funds.

Grant Closing

    1. Letter of conditions. The Agency will notify an approved 
applicant in writing, setting out the conditions under which the grant 
will be made.
    2. Applicant's intent to meet conditions. Upon reviewing the 
conditions and requirements in the letter of conditions, the applicant 
must complete, sign and return the Agency's ``Letter of Intent To Meet 
Conditions,'' or, if certain conditions cannot be met, the applicant 
may propose alternate conditions to the Agency. The Agency must concur 
with any changes proposed to the letter of conditions by the applicant 
before the application will be further processed.
    3. Grant agreement. The grantee must enter into a grant agreement 
with USDA in form and substance similar to the form of agreement as 
published at the end of this NOFA prior to the advance of funds.

Award Requirements

    Any approved applicant will be required to do the following:
    1. Execute a ``Request for Obligation of Funds''. The following 
statement will be entered in the comment section of the Request for 
Obligation of Funds, and must be signed by the grantee:
    ``The grantee certifies that it is in compliance with and will 
continue to comply with all applicable laws, regulations, Executive 
Orders and other generally applicable requirements, including those 
contained in 7 CFR parts 3015, 3017, 3018, 3019 and 3052 in effect on 
the date of grant approval, and the approved Letter of Conditions.''
    2. Use SF-270 ``Request for Advance or Reimbursement'' to request 
advances or reimbursements, as applicable, but not more frequently than 
once a month. (This form can be downloaded from the following Web site: 
http://www.whitehouse.gov/omb/grants/sf270.pdf);
    3. Maintain a financial management system that is acceptable to the 
Agency;
    4. Collect and maintain data on race, sex and national origin of 
the beneficiaries of the project.

Reporting Requirements

    Grantee must submit the following to the Agency;
    1. A ``Financial Status Report'' listing expenditures according to 
agreed upon budget categories, on a semi-annual basis. Reporting 
periods end each March 31 and September 30. Reports are due 30 days 
after the reporting period ends.
    2. Semi-annual performance reports that compare accomplishments to 
the milestones stated in the proposal. Identify all tasks completed to 
date and provide documentation supporting the reported results. If the 
original schedule provided in the work plan for interim and final 
project deliverables is not being met, the report should discuss the 
problems or delays that may affect completion of the study. Objectives 
for the next reporting period should be listed. Compliance with any 
special condition on the use of award funds should be discussed. 
Reporting periods end each March 31 and September 30. Reports are due 
30 days after the reporting period ends.

Grant Servicing

    The grant will be serviced in accordance with 7 CFR parts 1951, 
3015 and 3019. Grantee will permit periodic inspection of the program 
operations by a representative of the Agency. All non-confidential 
information resulting from the Grantee's activities shall be made 
available to the general public on an equal basis.

[[Page 27524]]

Performance Reviews

    1. USDA will provide for peer review of the deliverables in the 
grant agreement.
    2. USDA may elect to suspend or terminate a grant in all or part if 
USDA determines (a) that the grantee or subcontractor has demonstrated 
insufficient progress in complying with the terms of the grant 
agreement, or (b) such other cause as USDA identifies in writing to the 
grantee (including but not limited to the use of federal grant funds 
for ineligible purposes).

Grant Disbursement

    The Agency will determine, based on 7 CFR parts 3015 and 3019, as 
applicable, whether disbursement of a grant will be by advance or 
reimbursement.

Contents of Application Package

    A complete application for a value-added research grant must 
include the following:
    1. A summary page listing the following items. This information 
should be double-spaced between items and not in narrative form.
    (a) Name of applicant.
    (b) Address of applicant.
    (c) Telephone number of applicant.
    (d) Contact person name, telephone number and email address.
    (e) Fax number of applicant.
    (f) Name of eligible university (if different from applicant).
    (g) County where eligible university is located.
    (h) Congressional district number where applicant is located.
    (i) Amount of grant request.
    2. A detailed Table of Contents containing page numbers for each 
component of the application.
    3. A summary of the research to be performed, no longer than five 
pages, which must include the following items.
    (a) The universe of value-added activities to be studied.
    (b) The nature and quality of the data to be used in the study.
    (c) The method by which the value added producer grant and 
agricultural innovation center programs funded by USDA will be 
evaluated and incorporated into the overall study.
    (d) The proposed form of output of the results of the study.
    4. Organizational documents confirming the accreditation of the 
eligible university.
    5. Eligibility. The application must include a detailed discussion 
of how the applicant meets each of the eligibility requirements.
    6. Evaluation Criteria. Address each of the evaluation criteria 
specifically and individually by category in narrative form.
    (a) Nature of the Proposed Research. Describe the proposed research 
in detail. The description should include an explanation of how the 
applicant will systematically examine, using linked, long-term, global 
projections of the agricultural sector, the potential effects of value-
added projects on the following: (i) Demand for agricultural 
commodities, (ii) market prices, (iii) farm income, and (iv) Federal 
outlays on commodity programs. Any econometric model used for the 
examination must be explained with an emphasis on how the model has 
been developed, its intended use, any peer review of the model, and how 
the applicant has used the model to date, with an evaluation of its 
effectiveness. The description should also include what data will be 
used and how it was or will be gathered, including measures to be taken 
to ensure quality control in data collection.
    (b) Qualifications of the Researchers. Describe the qualifications 
of the researchers who will be involved with the proposed research. 
Discuss education levels and experience levels of the researchers with 
an emphasis on any prior experience conducting agricultural or value-
added research. Also describe any research efforts and publications 
completed by the researchers.
    (c) Work Plan/Budget. The budget must present a detailed line item 
breakdown of estimated costs associated with the proposed research and 
allocate these costs to each of the tasks to be undertaken. The work 
plan must present the order the tasks will be undertaken and the 
estimated time for completing each task. Categories such as salaries, 
administrative, other and indirect costs must be clearly identified for 
each task and each task must be clearly defined and described in 
detail. Include supporting documentation for each category.
    (d) Measuring Effectiveness of Value-Added Projects. Describe 
appropriate performance measures that the applicant believes should be 
used to evaluate the success of value-added activities in agriculture. 
Suggested measures should evaluate both outputs and outcomes of 
producer value-added activities and be easily and objectively measured.
    7. Proposed criteria to be used for performance evaluation. The 
Agency seeks applicant input for performance criteria to be utilized in 
developing the grant agreement. The performance criteria suggested by 
the applicant are not binding on the Agency.
    8. Identify and report any association or relationship with Rural 
Development employees.
    9. Required forms. The following forms must be completed, signed 
and submitted as part of the application package.
    (a) SF-424, ``Application for Federal Assistance.'' Do not submit 
Form SF-424A, ``Budget Information.'' A separate line item budget 
should be presented as described in item 6(c) of this section listing 
the contents of the application package. All costs must be categorized 
as either eligible or ineligible.
    (b) SF-424B, ``Assurances--Non-Construction Programs.''
    (c) Form AD-1047, ``Certification Regarding Debarment, Suspension 
and other Responsibility Matters--Primary Covered Transactions.''
    (d) Form AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements.''
    (e) Form RD 400-1, ``Equal Opportunity Agreement.''
    (f) Form RD 400-4, ``Assurance Agreement.''
    (g) SF-LLL, ``Disclosure of Lobbying Activities,'' if applicable; 
otherwise, a Certification of Non-Lobbying Activities in a form 
satisfactory to the Agency.
    The required application forms and certifications can be downloaded 
from the following Web site: http://www.rurdev.usda.gov/rhs/rcdi/rcdi_forms.htm.

Form of Submission

    Applicants and grant awardee are encouraged, but not required, to 
submit applications and reports in electronic form. A complete, 
original application may be electronically sent as an e-mail attachment 
to [email protected]. If applications are submitted electronically, 
a signature page must be submitted via facsimile to the attention of 
Marc Warman at (202) 720-4641 or in hard copy to Marc Warman at the 
address provided at the beginning of this Notice. Alternatively, an 
original application package plus two paper copies may be submitted to 
the addresses provided at the beginning of this Notice.

    Dated: May 10, 2003.
Thomas C. Dorr,
Under Secretary, Rural Development.

University Value-Added Research Grant Agreement

    This grant agreement (Agreement) dated ------, is a contract for 
receipt of grant funds pursuant to section 6402(g) of the Farm 
Security and Rural Investment Act of 2002 (2002 Farm Bill) (7 U.S.C. 
1621 note). These requirements do not supercede the applicable 
requirements for receipt of Federal funds

[[Page 27525]]

stated in 7 CFR parts 3015, ``Uniform Federal Assistance 
Regulations'' or 3019, ``Uniform Administrative Requirements for 
Grants and Agreements with Institutions of Higher Education, 
Hospitals, and other Nonprofit Organizations.''
    Between ------------------(Grantee) and the United States of 
America acting through the Rural Business-Cooperative Service (RBS), 
Department of Agriculture, (Grantor).
    Witnesseth:
    All references herein to ``Value-Added Research'' refer to the 
proposal submitted by Grantee and approved by Grantor for evaluating 
the effects of projects for value-added agricultural commodities or 
products on agricultural producers and the commodity markets which 
is attached as Exhibit A. The principal amount of the grant is 
$300,000 (Grant Funds).
    Whereas
    Grantee has proposed to conduct the research described in the 
proposal as approved by Grantor;
    Grantee is an accredited university for purposes of granting 
undergraduate and graduate degrees;
    The Grantee is able to finance or directly fund any amounts as 
may be necessary to supplement Grant Funds in order to ensure that 
sufficient funds are available for the Value-Added Research;
    Grantee has provided a total budget and funding schedule, 
acceptable to the Grantor, for how the Grant Funds and other funds 
(if applicable) are to be spent which is attached as Exhibit B;
    The Grantor has agreed to give the Grantee the Grant Funds, 
subject to the terms and conditions established by the Grantor. 
Provided, however, that any Grant Funds actually advanced and not 
needed for grant purposes shall be returned immediately to the 
Grantor. The Grantor may terminate the grant in whole, or in part, 
at any time, whenever it is determined that the Grantee has failed 
to comply with the conditions of this Agreement, including 
satisfactory performance reviews, or the applicable regulation(s) 
and applicable Notice of Funding Availability (NOFA).
    As a condition of this Agreement, the Grantee assures and 
certifies that it is in compliance with and will comply in the 
course of the Agreement with all applicable laws, regulations, 
Executive Orders and other generally applicable requirements, 
including those contained in 7 CFR 3015.205(b) and the NOFA, or 
referenced therein, and that are hereby incorporated into this 
agreement by reference and such other statutory provisions as are 
specifically contained herein.
    Now, therefore, in consideration of said grant, Grantee agrees 
to:
    A. Cause said Value-Added Research to be conducted, within one 
year of the date of this Agreement, within the total sums, including 
Grant Funds, available to the Grantee.
    B. Provide periodic reports to the Grantor and respond promptly 
and completely to requests for status updates on the Value-Added 
Research by a representative of the Grantor. The reports to be 
provided in form and substance satisfactory to the Grantor are as 
follows:
    1. A ``Financial Status Report'' listing expenditures according 
to agreed upon budget categories, on a semi-annual basis. Reporting 
periods end each March 31 and September 30. Financial Status Reports 
are due 30 days after the reporting period ends.
    2. A ``Performance'' report that compares accomplishments to the 
objectives stated in the proposal. This report will identify all 
tasks completed to date and include documentation supporting the 
reported results. If the original schedule agreed to by the Grantor 
is not being met, this report will discuss the problems or delays, 
explain why the original objectives were not met and establish the 
objectives for the next reporting period. Reporting periods end each 
March 31 and September 30. Performance reports are due 30 days after 
the reporting period ends.
    These reports are to be submitted in an electronic form 
acceptable to the Grantor at the following address: 
[email protected].
    At the option of the Grantee, reports may be submitted in hard 
copy (one copy) to the following address:
    Marc Warman, Program Leader, USDA Rural Business-Cooperative 
Service, Stop 3252, Room 4016, 1400 Independence Ave., SW., 
Washington, DC 20250-3252. Telephone (for courier deliveries): (202) 
690-1431.
    Grantor may change the name and address for report submissions 
upon written notice to Grantee.
    C. Provide the following deliverables on the dates specified:
    1. Preliminary impact study of value-added activities other than 
the value added producer grant and agricultural innovation center 
programs funded by USDA no later than 6 months from date of 
Agreement. This deliverable should discuss what the experience of 
other value-added efforts suggests can be incorporated in USDA's 
implementation of the value added producer grant and agricultural 
innovation center in order to maximize the benefits of these value-
added programs to agricultural producers and commodity markets.
    (a) This deliverable should report what have been the most 
challenging or unexpected aspects of developing value-added 
businesses with respect to agricultural products and commodities.
    (b) This deliverable should also report what other value-added 
project participants would, if they had the opportunity, have done 
differently.
    2. First year evaluation reports for the value added producer 
grant and agricultural innovation center programs funded by USDA no 
later than 1 year from date of the last grant award for the 
applicable program obligated in fiscal year 2003. A separate 
evaluation report for each program will be prepared.
    The evaluation report on the value-added producer grant should 
include a brief assessment of each project, a conclusion as to 
whether the project was successful, a quantitative assessment of the 
benefit realized by the grant recipient as a result of the project 
to date and a quantitative assessment of the benefit that may 
reasonably be expected to accrue to the grant recipient as a result 
of the project.
    The evaluation report on the agricultural innovation center 
program should include an assessment of the number of agricultural 
producers that received services, a breakdown of services provided 
(expressed by hours per type of service), areas of needed 
improvement and a quantitative assessment of benefits directly 
realized as a result of services provided by each center.
    Each report generated for this deliverable should:
    (a) Report what have been the most challenging or unexpected 
aspects of developing value-added businesses with respect to 
agricultural products and commodities.
    (b) Report what the value-added project participants would, if 
they had the opportunity, have done differently.
    (c) An assessment of what information and reports are 
appropriate for ongoing program performance monitoring by USDA of 
grant recipients under each value-added grant program.
    (d) An assessment of the extent USDA's implementation of each 
USDA Value-Added program maximizes the positive effects of each 
program on (i) the demand for agricultural products, (ii) market 
prices, (iii) farm income and (iv) Federal outlays on commodity 
programs and where improvement is needed.
    3. Final report on the impacts of value-added activities, 
including activities being conducted by state and private entities, 
on (a) the demand for agricultural products, (b) market prices, (c) 
farm income and (d) Federal outlays on commodity programs no later 
than 30 days after the end of the grant period.
    D. Use Grant Funds and other funds provided by Grantee only for 
the purposes and activities specified in the Proposal. Any uses not 
provided for in the approved budget must be approved in writing by 
RBS in advance of obligation by the Grantor.
    E. Deliver the results of a study or activity to the Grantor 
upon completion of each task outlined in the Proposal.
    F. Not use Grant Funds to replace any financial support 
previously provided or assured from any other source. The Grantee 
agrees, if applicable, that the Grantee's level of expenditure for 
the Value-Added Research shall be maintained and not reduced as a 
result of Grant Funds.
    G. Conduct the Value-Added Research without discrimination as to 
race, color, religion, sex, national origin, age, sexual 
orientation, marital status, or physical disability.
    H. To execute any agreements required by Grantor which Grantee 
is legally authorized to execute.
    I. Upon any default under its representations or agreements 
contained in this instrument, Grantee, at the option and demand of 
Grantor, will immediately repay to Grantor the Grant Funds with any 
legally permitted interest from the date of the default. Default by 
the Grantee will constitute termination of the grant thereby causing 
cancellation of Federal assistance under the grant. The provisions 
of this Agreement may be enforced by Grantor, at its option and 
without regard to prior waivers of previous defaults by Grantee, by 
judicial proceedings to require specific performance of the terms

[[Page 27526]]

of this Agreement or by such other proceedings in law or equity, in 
either Federal or State courts, as may be deemed necessary by 
Grantor to assure compliance with the provisions of this Agreement 
and the laws and regulations under which this grant is made.
    J. Provide a Financial Management System for the Value-Added 
Research that includes:
    1. Accurate, current and complete disclosure of the financial 
results of each grant. Financial reporting will be on an accrual or 
cash basis.
    2. Records that identify adequately the source and application 
of funds for grant-supported activities. Those records shall contain 
information pertaining to grant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays and 
income.
    3. Effective control over and accountability for all funds, 
property and other assets. Grantees shall adequately safeguard all 
such assets and shall ensure that they are used solely for 
authorized purposes.
    4. Accounting records supported by source documentation.
    K. Retain financial records, supporting documents, statistical 
records and all other records pertinent to the grant for a period of 
at least three years after grant closing except that the records 
shall be retained beyond the three-year period if audit findings 
have not been resolved. Microfilm or photo copies or similar methods 
may be substituted in lieu of original records. The Grantor and the 
Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access to any books, 
documents, papers and records of the Grantee's that are pertinent to 
the specific grant program for the purpose of making audits, 
examinations, excerpts and transcripts.
    L. Provide either an audit report, annual financial statements 
or other documentation prepared in accordance with Grantor 
regulations to allow the Grantor to determine that funds have been 
used in compliance with the approved Proposal, any applicable laws 
and regulations and this Agreement.
    M. Agree to account for and to return to Grantor interest earned 
on grant funds pending their disbursement for program purposes.
    N. Not provide services that are duplicative of other program 
purposes, for which monies have been received, are committed, or are 
applied to from other sources (public or private).
    O. Will meet the following performance goals for the Value-Added 
Research by the dates specified:
    [To be determined by Grantor after consideration of the 
performance measures suggested by the Grantee in the Proposal. This 
may be combined with the deliverable schedule in item C.]
    Grantor agrees that it:
    A. Will make available to Grantee for the purpose of this 
Agreement funds not to exceed $300,000 that the Grantor will advance 
on a reimbursement basis in accordance with 7 CFR 3019.22. The funds 
will be reimbursed based on Grantee's submission of Form SF-270.
    B. At its sole discretion and at any time may give any consent, 
deferment, subordination, release, satisfaction, or termination of 
any or all of Grantee's grant obligations, with or without valuable 
consideration, upon such terms and conditions as Grantor may 
determine to be (1) advisable to further the purpose of the grant or 
to protect Grantor's financial interest therein and (2) consistent 
with both the statutory purposes of the grant and the limitations of 
the statutory authority under which it is made.
    Termination of this Agreement:
    This Agreement may be terminated for cause in the event of 
default on the part of the Grantee or for convenience of the Grantor 
and Grantee prior to the date of completion of grant purpose. 
Termination for convenience will occur when both the Grantee and 
Grantor agree that the continuation of the Value-Added Research will 
not produce beneficial results commensurate with the further 
expenditure of funds.
    In witness whereof, Grantee has this day authorized and caused 
this Agreement to be executed
By:--------------------------------------------------------------------
    Name of person
    Title
And attested with its corporate seal affixed (if applicable)
By:--------------------------------------------------------------------
    Name of Entity
Attest:----------------------------------------------------------------
United States of America Rural Business-Cooperative Service.
By:--------------------------------------------------------------------
    Name of person
    Title

[FR Doc. 03-12531 Filed 5-19-03; 8:45 am]
BILLING CODE 3410-XY-P