[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Notices]
[Pages 76742-76744]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-7951]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Notice of Funds Availability: Inviting Applications for the 
Quality Samples Program

    Announcement Type: New.
Catalog of Federal Domestic Assistance (CFDA) Number: 10.605.

SUMMARY: The Commodity Credit Corporation (CCC) announces the 
availability of $2.5 million in funding for the 2006 Quality Samples 
Program (QSP). The intended effect of this notice is to solicit 
applications by March 2006 and award funds in June 2006. The QSP is 
administered by personnel of the Foreign Agricultural Service (FAS). 
This notice supercedes any prior notices concerning the QSP.

DATES: All proposals must be received by 5 p.m. Eastern Standard Time, 
March 13, 2006. Applications received after this date will be 
considered only if funds are still available.

FOR FURTHER INFORMATION CONTACT: Entities wishing to apply for funding 
assistance should contact the Marketing Operations Staff, Foreign 
Agricultural Service, U.S. Department of Agriculture, 1400 Independence 
Ave., SW., STOP 1042, Washington, DC 20250-1042, phone: (202) 720-4327, 
fax: (202) 720-9361, e-mail: [email protected]. Information is also 
available on the Foreign Agricultural Service Web site at http://www.fas.usda.gov/mos/programs/QSP.asp.

SUPPLEMENTARY INFORMATION:

 I. Funding Opportunity Description

    Authority: The QSP is authorized under Section 5(f) of the CCC 
Charter Act, 15 U.S.C. 714c(f).

    Purpose: The QSP is designed to encourage the development and 
expansion of export markets for U.S. agricultural commodities by 
assisting U.S. entities in providing commodity samples to potential 
foreign importers to promote a better understanding and appreciation 
for the high quality of U.S. agricultural commodities.
    QSP participants will be responsible for procuring (or arranging 
for the procurement of) commodity samples, exporting the samples, and 
providing the technical assistance necessary to facilitate successful 
use of the samples by importers. Participants that are funded under 
this announcement may seek reimbursement for the sample purchase price 
and the costs of transporting the samples domestically to the port of 
export and then to the foreign port, or point, of entry. Transportation 
costs from the foreign port, or point, of entry to the final 
destination will not be eligible for reimbursement. CCC will not 
reimburse the costs incidental to purchasing and transporting samples, 
for example, inspection or documentation fees. Although providing 
technical assistance is required for all projects, CCC will not 
reimburse the costs of providing technical assistance. A QSP 
participant will be reimbursed after CCC reviews its reimbursement 
claim and determines that the claim is complete.
    General Scope of QSP Projects: QSP projects are the activities 
undertaken by a QSP participant to provide an appropriate sample of a 
U.S. agricultural commodity to a foreign importer, or a group of 
foreign importers, in a given market. The purpose of the project is to 
provide information to an appropriate target audience regarding the 
attributes, characteristics, and proper use of the U.S. commodity. A 
QSP project addresses a single market/commodity combination.
    As a general matter, QSP projects should conform to the following 
guidelines:
     Projects should benefit the represented U.S. industry and 
not a specific company or brand;
     Projects should develop a new market for a U.S. product, 
promote a new U.S. product, or promote a new use for a U.S. product, 
rather than promote the substitution of one established U.S. product 
for another;
     Sample commodities provided under a QSP project must be in

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sufficient supply and available on a commercial basis;
     The QSP project must either subject the commodity sample 
to further processing or substantial transformation in the importing 
country, or the sample must be used in technical seminars designed to 
demonstrate to an appropriate target audience the proper preparation or 
use of the sample in the creation of an end product;
     Samples provided in a QSP project shall not be directly 
used as part of a retail promotion or supplied directly to consumers. 
However, the end product, that is, the product resulting from further 
processing, substantial transformation, or a technical seminar, may be 
provided to end-use consumers to demonstrate to importers consumer 
preference for that end product; and,
     Samples shall be in quantities less than a typical 
commercial sale and limited to the amount sufficient to achieve the 
project goal (e.g., not more than a full commercial mill run in the 
destination country).
    QSP projects shall target foreign importers and target audiences 
who:
     Have not previously purchased the U.S. commodity which 
will be transported under the QSP;
     Are unfamiliar with the variety, quality attribute, or 
end-use characteristic of the U.S. commodity which will be transported 
under the QSP;
     Have been unsuccessful in previous attempts to import, 
process, and market the U.S. commodity which will be transported under 
the QSP (e.g., because of improper specification, blending, or 
formulation; or sanitary or phytosanitary issues);
     Are interested in testing or demonstrating the benefits of 
the U.S. commodity which will be transported under the QSP; or
     Need technical assistance in processing or using the U.S. 
commodity that will be transported under the QSP.

 II. Award Information

    Under this announcement, the number of projects per participant 
will not be limited. However, individual projects will be limited to 
$75,000 of QSP reimbursement. Projects comprised of technical 
preparation seminars, that is, projects that do not include further 
processing or substantial transformation, will be limited to $15,000 of 
QSP reimbursement as these projects require smaller samples. Financial 
assistance will be made available on a reimbursement basis; that is, 
cash advances will not be made available to any QSP participant.
    All proposals will be reviewed against the evaluation criteria 
contained herein and funds will be awarded on a competitive basis. 
Funding for successful proposals will be provided through specific 
agreements. These agreements will incorporate the proposal as approved 
by FAS. FAS must approve in advance any subsequent changes to the 
project.

III. Eligibility Information

    1. Eligible Applicants. Any United States private or government 
entity with a demonstrated role or interest in exporting U.S 
agricultural commodities may apply to the program. Government 
organizations consist of federal, state, and local agencies. Private 
organizations include non-profit trade associations, universities, 
agricultural cooperatives, state regional trade groups, and profit-
making entities.
    2. Cost Sharing. Although a minimum level of cost share 
contribution is not required under the program, FAS does consider the 
applicant's willingness to contribute resources, including cash and 
goods and services of the U.S. industry and foreign third parties, when 
determining which proposals are approved for funding.

IV. Application and Submission Information

    1. Address to Request Application Package. Organizations can submit 
applications to the FAS through the Unified Export Strategy (UES) 
application Internet Web site. Applicants also have the option of 
submitting electronic versions in the UES format (along with two paper 
copies) of their applications to the FAS on diskette. However, the UES 
format is not required.
    Applicants planning to use the UES Internet-based system must 
contact the FAS Marketing Operations Staff on (202) 720-4327 to obtain 
site access information including a user ID and password. The UES 
Internet-based application, including a Help file containing step-by-
step instructions for its use, may be found at the following URL 
address: http://www.fas.usda.gov/cooperators.html.
    Applicants who choose to submit applications on diskette can obtain 
a UES application format by contacting the Marketing Operations Staff, 
phone: (202) 720-4327, fax: (202) 720-9361, e-mail: 
[email protected].
    2. Content and Form of Application Submission. To be considered for 
the QSP, an applicant must submit to the FAS information detailed in 
this notice. In addition, in accordance with the Office of Management 
and Budget's issuance of a final policy (68 FR 38402) regarding the 
need to identify entities that are receiving government awards, all 
applicants must submit a Dun and Bradstreet Data Universal Numbering 
System (DUNS) number. An applicant may request a DUNS number at no cost 
by calling the dedicated toll-free DUNS number request line at 1-866-
705-5711. Incomplete applications and applications which do not 
otherwise conform to this announcement will not be accepted for review.
    Applicants to the QSP are not required to submit proposals in any 
specific format; however, FAS recommends that proposals contain, at a 
minimum, the following:
    (a) Organizational information, including:
     Organization's name, address, Chief Executive Officer (or 
designee), Federal Tax Identification Number (TIN), and DUNS number;
     Type of organization;
     Name, telephone number, fax number, and e-mail address of 
the primary contact person;
     A description of the organization and its membership;
     A description of the organization's prior export promotion 
experience; and
     A description of the organization's experience in 
implementing an appropriate trade/technical assistance component;
    (b) Market information, including:
     An assessment of the market;
     A long-term strategy in the market; and
     U.S. export value/volume and market share (historic and 
goals) for 2002-2007;
    (c) Project information, including:
     A brief project title;
     Amount of funding requested;
     A brief description of the specific market development 
trade constraint or opportunity to be addressed by the project, 
performance measures for the years 2006-2008 which will be used to 
measure the effectiveness of the project, a benchmark performance 
measure for 2005, the viability of long term sales to this market, the 
goals of the project, and the expected benefits to the represented 
industry;
     A description of the activities planned to address the 
constraint or opportunity, including how the sample will be used in the 
end-use performance trial, the attributes of the sample to be 
demonstrated and its end-use benefit, and details of the trade/
technical servicing component (including who will provide and who will 
fund this component);
     A sample description (i.e., commodity, quantity, quality, 
type, and

[[Page 76744]]

grade), including a justification for selecting a sample with such 
characteristics (this justification should explain in detail why the 
project could not be effective with a smaller sample);
     An itemized list of all estimated costs associated with 
the project for which reimbursement will be sought; and
     The importer's role in the project regarding handling and 
processing the commodity sample; and
    (d) Information indicating all funding sources and amounts to be 
contributed by each entity that will supplement implementation of the 
proposed project. This may include the organization that submitted the 
proposal, private industry entities, host governments, foreign third 
parties, CCC, FAS, or other Federal agencies. Contributed resources may 
include cash or goods and services.
    3. Submission Dates and Times. All applications must be received by 
5 p.m. Eastern Standard Time, March 13, 2006. Applications received 
after this date will be considered only if funds are still available.
    4. Funding Restrictions. Proposals which request more than $75,000 
of CCC funding for individual projects will not be considered. Projects 
comprised of technical preparation seminars will be limited to $15,000 
in QSP funding. CCC will not reimburse expenditures made prior to 
approval of a proposal or unreasonable expenditures.
    5. Other Submission Requirements. All applications on diskette 
(with two accompanying paper copies) and any other form of application 
must be received by 5 p.m. Eastern Standard Time, March 13, 2006, at 
one of the following addresses:
    Hand Delivery (including FedEx, UPS, etc.): U.S. Department of 
Agriculture, Foreign Agricultural Service, Marketing Operations Staff, 
1250 Maryland Ave., SW., 4th Floor, Washington, DC 20024.
    U.S. Postal Delivery: U.S. Department of Agriculture, Foreign 
Agricultural Service, Marketing Operations Staff, STOP 1042, 1400 
Independence Ave., SW., Washington, DC 20250-1042.

 V. Application Review Information

    1. Criteria. FAS will use the following criteria in evaluating 
proposals:
     The ability of the organization to provide an experienced 
staff with the requisite technical and trade experience to execute the 
proposal;
     The extent to which the proposal is targeted to a market 
in which the United States is generally competitive;
     The potential for expanding commercial sales in the 
proposed market;
     The nature of the specific market constraint or 
opportunity involved and how well it is addressed by the proposal;
     The extent to which the importer's contribution in terms 
of handling and processing enhances the potential outcome of the 
project;
     The amount of reimbursement requested and the 
organization's willingness to contribute resources, including cash and 
goods and services of the U.S. industry and foreign third parties; and
     How well the proposed technical assistance component 
assures that performance trials will effectively demonstrate the 
intended end-use benefit.
    Highest priority for funding under this announcement will be given 
to meritorious proposals that target countries that meet either of the 
following criteria:
     Per capita income less than $10,065 (the ceiling on upper 
middle income economies as determined by the World Bank [World 
Development Indicators 2005/2006]); and population greater than 1 
million. Proposals may address suitable regional groupings, for 
example, the islands of the Caribbean Basin; or
     U.S. market share of imports of the commodity identified 
in the proposal of 10 percent or less.
    2. Review and Selection Process. Proposals will be evaluated by the 
applicable FAS commodity division. The divisions will review each 
proposal against the factors described above. The purpose of this 
review is to identify meritorious proposals, recommend an appropriate 
funding level for each proposal based upon these factors, and submit 
the proposals and funding recommendations to the Deputy Administrator, 
Commodity and Marketing Programs.
    3. Anticipated Announcement Date. Announcements of funding 
decisions for the QSP are anticipated during June 2006.

 VI. Award Administration Information

    1. Award Notices. The FAS will notify each applicant in writing of 
the final disposition of its application. The FAS will send an approval 
letter and agreement to each approved applicant. The approval letter 
and agreement will specify the terms and conditions applicable to the 
project, including the levels of QSP funding and any cost-share 
contribution requirements.
    2. Administrative and National Policy Requirements. The agreements 
will incorporate the details of each project as approved by FAS. Each 
agreement will identify terms and conditions pursuant to which CCC will 
reimburse certain costs of each project. Agreements will also outline 
the responsibilities of the participant, including, but not limited to, 
procurement (or arranging for procurement) of the commodity sample at a 
fair market price, arranging for transportation of the commodity sample 
within the time limit specified in the agreement (organizations should 
endeavor to ship commodities within 6 months of effective date of 
agreement), compliance with cargo preference requirements (shipment on 
United States flag vessels, as required), compliance with the Fly 
America Act requirements (shipment on United States air carriers, as 
required), timely and effective implementation of technical assistance, 
and submission of a written evaluation report within 90 days of 
expiration of the agreement.
    QSP agreements are subject to review and verification by the FAS 
Compliance Review Staff. Upon request, a QSP participant shall provide 
to CCC the original documents which support the participant's 
reimbursement claims. CCC may deny a claim for reimbursement if the 
claim is not supported by adequate documentation.
    3. Reporting. A written evaluation report must be submitted within 
90 days of the expiration of each participant's QSP agreement. 
Evaluation reports should address all performance measures that were 
presented in the proposal.

 VII. Agency Contact(s)

    For additional information and assistance, contact the Marketing 
Operations Staff, Foreign Agricultural Service, U.S. Department of 
Agriculture, 1400 Independence Ave., SW., STOP 1042, Washington, DC 
20250-1042, phone: (202) 720-4327, fax: (202) 720-9361, e-mail: 
[email protected].

    Signed at Washington, DC, on December 8th, 2005.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
 [FR Doc. E5-7951 Filed 12-27-05; 8:45 am]
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