[Federal Register Volume 73, Number 25 (Wednesday, February 6, 2008)]
[Notices]
[Pages 6921-6929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2133]


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DEPARTMENT OF COMMERCE

Economic Development Administration

[Docket No.: 080125088-8090-01]


Program Announcement for the Trade Adjustment Assistance for 
Firms Program

AGENCY: Economic Development Administration (EDA), Department of 
Commerce.

ACTION: Notice.

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SUMMARY: EDA's mission is to lead the federal economic development 
agenda by promoting innovation and competitiveness, preparing American 
regions for growth and success in the worldwide economy. As part of 
this mission, EDA administers the Trade Adjustment Assistance for Firms 
(TAAF) Program under the Trade Act of 1974, as amended, through a 
national network of eleven Trade Adjustment Assistance Centers (each, a 
TAAC) to provide technical assistance to firms that have lost domestic 
sales and employment due to increased imports of similar or competitive 
goods. This program announcement applies only to the current eleven 
EDA-funded TAACs, and provides information necessary to clarify the 
requirements for operating and providing technical assistance to trade-
impacted firms as a TAAC under a cooperative agreement with EDA for 
fiscal years 2008-2010. This notice does not solicit new applications 
for TAAC operators.

DATES: A current TAAC that wishes to apply for federal financial 
assistance for the three-year project period for fiscal years 2008-2010 
must submit an application to EDA at least 30 days before the 
expiration date of the TAAC's 2005-2007 cooperative agreement. EDA will 
amend currently active cooperative agreements as necessary to ensure 
that each TAAC that wishes to apply will have at least 30 days to 
complete the application requirements set out in this program 
announcement. EDA's TAAF Program Officer will hold a teleconference 
during the week of February 11, 2008 for all current TAACs to address 
questions about this program announcement. The exact date, time, 
registration requirements, and protocols for the call will be announced 
to all participants in advance of the teleconference.

ADDRESSES: Applications for federal financial assistance may be 
submitted in either paper format or electronic format, in accordance 
with the procedures provided in this program announcement. The content 
of the application is the same for both paper and electronic 
submissions. EDA will not accept facsimile transmissions of 
applications.
    The eleven TAACs may obtain paper application packages by 
contacting the designated point of contact listed below under FOR 
FURTHER INFORMATION CONTACT or by downloading the required forms from 
EDA's Web site at www.eda.gov/InvestmentsGrants/Preapp.xml.
    Paper Submissions: A complete, signed original application may be 
sent via postal mail, shipped overnight or hand-delivered to EDA 
headquarters at the following address: William P. Kittredge, Ph.D., 
Program Officer, U.S. Department of Commerce, Economic Development 
Administration, 1401 Constitution Avenue, NW., Room 7009, Washington, 
DC 20230.
    Electronic Submissions: A complete, electronically signed original 
application may be e-mailed to [email protected] with the subject line 
``[Insert full name of TAAC] FY 2008 application.''

FOR FURTHER INFORMATION CONTACT: For additional information or for a 
paper copy of the application package, please contact William P. 
Kittredge, Ph.D., Program Officer, at [email protected] or at 202-482-
4122.

SUPPLEMENTARY INFORMATION:
    Program Information: EDA's mission is to lead the federal economic 
development agenda by promoting innovation and competitiveness, 
preparing American regions for growth and success in the worldwide 
economy. One of EDA's economic development tools is the TAAF Program 
under the Trade Act of 1974, as amended (19 U.S.C. 2341--2355, 2391) 
(Trade Act). The goal of the TAAF Program is to identify firms that 
have been negatively impacted by import competition and assist these 
firms to become competitive in the global economy, thereby creating or 
retaining domestic jobs.
    Each TAAC is staffed by trade adjustment assistance professionals 
that help U.S. production and manufacturing firms apply for 
certification under the Trade Act. The TAAC assists the firm in 
completing and submitting to EDA a

[[Page 6922]]

petition for certification of eligibility. If EDA determines that the 
firm meets the eligibility criteria for technical assistance under the 
Trade Act and approves the petition, the TAAC then works closely with 
the certified client-firm to diagnose the firm's strengths and 
weaknesses, develop an adjustment proposal (AP) to address those 
strengths and weaknesses, and implement the AP. As required by the 
statute, an AP must: (1) Be reasonably calculated to contribute 
materially to the economic adjustment of a client-firm; (2) give 
adequate consideration to the interests of the workers of the client-
firm; and (3) demonstrate that the client-firm will make all reasonable 
efforts to use its own resources for economic development. The 
adjustment assistance identified in the AP must consist of specialized 
consulting services designed to assist the firm in becoming more 
competitive in the global marketplace. For this purpose, adjustment 
assistance generally consists of knowledge-based services such as 
market penetration studies, customized business improvements, and 
designs for new products. Adjustment assistance does not include 
expenditures for capital improvements or for the purchase of business 
machinery or supplies.
    This program announcement is intended to provide information and 
clarify the operational requirements for the current eleven EDA-funded 
TAACs. The cooperative agreements associated with fiscal years 2005-
2007 for the current TAACs will expire this year and, therefore, this 
program announcement sets out important elements that will be included 
in each TAAC's cooperative agreement for fiscal years 2008-2010, 
subject to funding availability.
    A current TAAC that wishes to apply for federal financial 
assistance for the three-year project period for fiscal years 2008-2010 
must submit an application to EDA at least 30 days before the 
expiration date of the TAAC's 2005-2007 cooperative agreement. EDA will 
amend currently active cooperative agreements as necessary to ensure 
that each TAAC will have at least 30 days to complete the application 
requirements set out under this program announcement.
    The current TAACs and the States they serve are:

------------------------------------------------------------------------
                   TAAC                             States served
------------------------------------------------------------------------
Great Lakes TAAC..........................  Indiana, Michigan, and Ohio
Mid-America TAAC..........................  Arkansas, Kansas, Missouri
Mid-Atlantic TAAC.........................  Delaware, District of
                                             Columbia, Maryland, New
                                             Jersey, Pennsylvania,
                                             Virginia, and West Virginia
Midwest TAAC..............................  Illinois, Iowa, Minnesota,
                                             and Wisconsin
New England TAAC..........................  Connecticut, Maine,
                                             Massachusetts, New
                                             Hampshire, Rhode Island,
                                             and Vermont
New York State TAAC.......................  New York
Northwestern TAAC.........................  Alaska, Idaho, Montana,
                                             Oregon, and Washington
Rocky Mountain TAAC.......................  Colorado, Nebraska, New
                                             Mexico, North Dakota, South
                                             Dakota, Utah, and Wyoming
Southeastern TAAC.........................  Alabama, Florida, Georgia,
                                             Kentucky, Mississippi,
                                             North Carolina, South
                                             Carolina, and Tennessee
Southwest TAAC............................  Louisiana, Oklahoma, and
                                             Texas
Western TAAC..............................  California, Arizona, Nevada,
                                             and Hawaii
------------------------------------------------------------------------

    Electronic Access: The complete TAAF program announcement is 
available at www.eda.gov.
    Funding Availability: Currently, the TAAF Program is fully funded 
and at capacity with eleven TAACs providing technical assistance to 
trade-impacted firms throughout the nation. This program announcement 
merely clarifies the operating principles and administrative and 
procedural requirements applicable to the TAAF Program. Future funding 
for the TAAF Program under this program announcement depends upon the 
availability of funds appropriated for the Program.
    Statutory Authority: The specific authority for the TAAF Program is 
chapters 3 and 5 of Title II of the Trade Act, which authorizes EDA to 
administer the Program through the TAACs. EDA's regulations at 13 CFR 
Part 315 set forth the general and specific regulatory requirements 
applicable to the TAAF Program. EDA's regulations and the Trade Act are 
accessible on EDA's Internet Web site at www.eda.gov/InvestmentsGrants/Lawsreg.xml.
    Catalog of Federal Domestic Assistance (CFDA) Number: 11.313, Trade 
Adjustment Assistance for Firms.
    Eligibility: The TAAF Program currently is administered through a 
national network of eleven TAACs. As set out at 13 CFR 315.4, a TAAC 
may be a university affiliate, State or local government affiliate, or 
nonprofit organization.
    Project Period: EDA administers the TAAF Program by entering into 
cooperative agreements with each TAAC for a three-year project period. 
Once funded, a TAAC is not required to compete for the second and third 
years of funding, providing that performance is satisfactory (as 
determined by EDA). Funding beyond the initial year of the project 
period also is subject to the availability of funds. Carryover funds 
and program income earned in one year may be carried over and used to 
carry out eligible activities in a subsequent year throughout the 
three-year project period. At the conclusion of the third year of the 
project period, each TAAC has 90 days to submit final vouchers for 
reimbursement related to eligible activities funded prior to expiration 
of the project period. The maximum amount awarded by EDA under a 
cooperative agreement is for expenditures related to the TAAC's scope 
of work.
    Cost Sharing Requirement: EDA may fund up to 100 percent of TAAC 
operations. See section 253(b)(3) of the Trade Act (19 U.S.C. 2343). 
Once a firm is certified to receive assistance from a TAAC under the 
TAAF Program, the client-firm must pay at least 25 percent of the cost 
of preparing its AP. A client-firm that requests $30,000 or less in 
total assistance to implement an approved AP must pay at least 25 
percent of the cost of that assistance. A client-firm that requests 
more than $30,000 in total assistance in its approved AP must pay at 
least 50 percent of the cost of that assistance. General cost 
limitations on APs are set out below in section VI.C. Limitations on 
assistance provided through an AP specific to a particular TAAC will be 
set out in the cooperative agreement between EDA and the TAAC. See 13 
CFR 315.6(c)(2).
    Intergovernmental Review: Applications for funding under the TAAF 
Program are not subject to the State review requirements imposed by 
Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.''
    Current TAAC Evaluation: EDA generally evaluates currently funded 
TAACs based on:
    (1) Performance under cooperative agreements with EDA and 
compliance with the terms and conditions of such cooperative 
agreements;
    (2) Proposed scope of work, budget and application or amended 
application; and
    (3) Availability of funds.
    See 13 CFR 315.5(c)(1).
    New TAAC Evaluation: If EDA determines that it is necessary to 
select a new TAAC to provide assistance under the TAAF Program (for 
example,

[[Page 6923]]

if a currently funded TAAC does not timely provide an application per 
the requirements of this program announcement), EDA generally evaluates 
new TAACs based on:
    (1) Competence in administering business assistance programs;
    (2) Background and experience of staff;
    (3) Proposed scope of work, budget and application; and
    (4) Availab3ility of funding.
    See 13 CFR 315.5(c)(2).

Content and Form of Application Submissions

    General Requirements: A complete application to provide assistance 
as a TAAC for the 2008-2010 project period consists of Forms SF-424, 
``Application for Federal Assistance;'' SF-424A, ``Budget Information--
Non-Construction Programs;'' SF-424B, ``Assurances--Non-Construction 
Programs;'' CD-512, ``Certification Regarding Lobbying Lower Tier 
Covered Transactions;'' all supporting documentation required by these 
forms; a project narrative; and a detailed budget narrative. All 
information submitted by a TAAC in an application for funding shall be 
accurate and based on the most current data available for the TAAC's 
service region.
    TAACs interested in applying for continued funding are advised to 
carefully read the instructions contained in this program announcement 
and on the application forms. The applicant TAAC is solely responsible 
for ensuring that applications are complete and timely received by EDA. 
Applications may be submitted either in paper format or electronically.
    EDA will evaluate applications consistent with the application 
review information set forth in this program announcement. A completed 
application must contain all the items listed in the ``Checklist of 
Application Materials'' set out below.

Checklist of Application Materials

Project Narrative
    Cover Page
    Section 1. Organizational History and Capability
    Section 2. Service Region, Needs of Service Region, and Target 
Audience
    Section 3. Scope of Work and Anticipated Impacts and Benefits
Budget and Budget Narrative
    Budget Narrative (for each year of the award period)
    Staffing Plan
    Resumes of Key Project Staff
Standard Forms (SF) and Department of Commerce (CD Forms)
    Form SF-424, Application for Federal Assistance (The list of 
certifications and assurances referenced in Item 21 of Form SF-424 is 
contained in Form SF-424B.)
    Form SF-424A, Budget--Non-Construction Programs (for each year of 
the project period)
    Form SF-424B, Assurances--Non-Construction Programs
    Form SF-LLL, Disclosure of Lobbying Activities (if applicable) 
(Form SF-LLL can be accessed at EDA's Internet Web site at www.eda.gov 
and at www.whitehouse.gov/omb/grants/grants_forms.html.)
    Form CD-511, Certification Regarding Lobbying (Form CD-511 can be 
accessed at the Department of Commerce's Forms Management Internet Web 
site at http://ocio.os.doc.gov/ITPolicyandPrograms/Electronic_Forms/index.htm.)
    Project Narrative. The Project Narrative must provide both an 
overall three-year operational plan and scope of work for the entire 
fiscal years 2008 through 2010 project period, and a detailed 
operational plan and scope of work for the initial year of the project 
period. For each subsequent year of the project period, each TAAC will 
execute an amendment to the cooperative agreement and submit an updated 
Project Narrative that reflects changes to and trends within the TAAC's 
service region. The Project Narrative must provide for a three-year 
scope of work and a timeline for project implementation during the 
three-year project period. The Project Narrative must include the 
following items, which should be presented to EDA in the following 
format:

Cover Page

Section 1. Organizational History and Capability

    a. Overview. Briefly state the purpose of the submission and the 
TAAC's federal funding request and proposed matching funds, if 
applicable.
    b. Organization and Staffing. Submit a staffing plan listing all 
positions that will be charged to the federal and non-federal (if 
applicable) portion of the budget for each project year. The staffing 
plan must include position titles, maximum annual salaries, and the 
total amount of annual salaries that will be charged to the TAAF 
Program. The total amount of annual salaries that will be charged to 
the Program must be consistent with the amount reflected on the 
``Personnel'' budget line-item (found in ``Section B--Budget 
Categories'' of Form SF-424A) for each project year. In addition, 
identify each TAAC employee, describe their specific role with 
reference to TAAC operations, and provide a brief overview of each 
employee's most pertinent experience. In addition, the resume, 
curriculum vitae, or other statement of qualifications for each 
employee must be included as an attachment. If the TAAC plans to hire 
employees during the project period, provide a staffing plan for 
filling any vacancies or new positions.
    c. History and Accomplishments. Provide a narrative overview of the 
history of the TAAC and the TAAC's accomplishments in providing 
assistance to import-impacted firms under past cooperative agreements 
with EDA. Discuss the TAAC's capacity and experience in providing 
assistance under the TAAF Program.
    d. Organizational Form or Affiliated or Sponsoring Institution, if 
applicable. Detail the organizational context in which the TAAC will 
provide technical assistance under the TAAF Program. If the TAAC is 
affiliated with another entity, such as a university or a nonprofit, 
include the TAAC's placement within the organizational structure of 
that entity and explain how this affiliation may impact the cooperative 
agreement with EDA and the provision of assistance to import-impacted 
firms.

Section 2. Service Region, Needs of Service Region, and Target Audience

    a. Definition of Service Region. Define the TAAC's geographic 
service region.
    b. Existing Conditions within Service Region. Detail the economic 
development needs, issues, and opportunities of the TAAC's service 
region, focusing on import-impacted industries and firms.
    c. Target Firms and Industries. Identify target import-impacted 
firms and industries within the TAAC's geographic service region.
    d. Presentation. Maps and other graphic representations that 
accurately portray the current condition of the TAAC's service region 
are welcome and encouraged.
    e. Accuracy and Timeliness of Information. All information 
presented in the application must be pertinent, accurate and current. 
This section in particular must contain accurate data and estimates 
provided by the Bureau of Economic Analysis, the U.S. Census Bureau, or 
other similar governmental agency that compiles socioeconomic data that 
is current as of the date of the application. Additional pertinent, 
accurate and current data, information, analyses and estimates from 
reputable

[[Page 6924]]

non-governmental sources may also be provided, but such data cannot 
serve as a substitute for governmental data. Since the goal of the TAAF 
Program is to address the existing conditions of import-impacted firms, 
the use of outdated data is not acceptable and will be considered 
nonresponsive. If an application contains out-of-date data, EDA may 
reject the application and choose to re-solicit applications on a 
competitive basis.

Section 3. TAAC Business Plan and Anticipated Impacts and Benefits

    Outline the scope of work to be undertaken by the TAAC during the 
three-year project period. This section must be organized into the 
following five elements: (i) TAAC program management; (ii) TAAC 
business plan; (iii) timeline and benchmarks for program 
implementation; (iv) TAAC outreach strategy; and (v) plan to coordinate 
with Trade Adjustment Assistance Programs operated by the Department of 
Labor (DOL) to provide the most value to firms and maximize the benefit 
of each federal dollar. Pertinent details on the above-listed elements 
of the TAAC's scope of work are set out below.
    a. TAAC Program Management. Provide a plan for the TAAC's overall 
fiscal and TAAF Program management to ensure the TAAC's accountability 
for federal funds. In general, TAACs use federal funds to enter into 
contracts to meet the needs of client-firms. Therefore, this plan must 
include the TAAC's procurement code of conduct and procedures. 
Recipients of federal assistance that are institutions of higher 
education, hospitals, and other nonprofit and commercial organizations 
must have:
    (i) Written standards of conduct governing the performance of its 
employees engaged in the award and administration of contracts; and
    (ii) Written procurement procedures. See 15 CFR 14.42 and 14.44 for 
more information on these requirements.
    b. TAAC Business Plan. Describe how the TAAC plans to provide 
assistance to import-impacted firms and how the TAAC plans to partner 
or coordinate with other organizations to provide effective assistance 
and leverage federal dollars.
    c. Timeline and Benchmarks for Program Implementation. Provide a 
three-year timeline for Program implementation, which includes 
significant milestones and accomplishments. The TAAC also must submit a 
timeline for the initial year of the project period detailing over the 
course of that year the activity, timeline, and benchmarks for the 
implementation of the TAAF Program. This initial year timeline must 
include the current status of any pending certifications, APs, or other 
client-firm assistance; the projected number of firms that the TAAC 
will contact; the projected number of petitions for certification that 
the TAAC will submit for EDA approval; the projected number of APs that 
will be submitted for EDA's approval; the projected number of projects 
that will be proposed in APs; and the number of projects that the TAAC 
anticipates client-firms will complete. These projections should be 
based on the TAAC's analysis of need in its geographic service region 
and its experience operating the TAAF Program.
    d. TAAC Outreach Strategy. Detail how the TAAC will provide 
information about assistance services in the TAAC's geographic service 
region. Examples of TAAC information and literature provided to 
potential client-firms and other outreach strategies are welcome and 
encouraged.
    e. Plan for Coordination with DOL. Detail how the TAAC will 
coordinate with Trade Adjustment Assistance Programs operated by DOL 
under the Trade Act to provide comprehensive assistance to import-
impacted firms and employees, avoid duplicative effort, and maximize 
federal dollars.
    Budget and Budget Narrative. Applicants must submit a separate 
budget on Form SF-424A and a budget narrative for each year of the 
three-year project period. The budget must include columns reflecting 
the federal, non-federal cash, non-federal in-kind (if applicable) and 
total amounts allocated to each budget line-item for each project year. 
Applicants should use the budget categories identified in ``Section B--
Budget Categories'' of Form SF-424A, with sub-categories and 
explanations as necessary. The allowability of costs incurred depends 
upon the classification of the TAAC and is determined in accordance 
with the requirements set out in 2 CFR Part 220, ``Cost Principles for 
Educational Institutions (OMB Circular A-21);'' 2 CFR Part 225, ``Cost 
Principles for State, Local, and Indian Tribal Governments (OMB 
Circular A-87);'' or 2 CFR Part 230, ``Cost Principles for Non-Profit 
Organizations (OMB Circular A-122),'' as applicable. Generally, 
allowable costs include salaries, supplies, and other expenses that are 
reasonable and necessary for successful completion of the scope of 
work.
    1. Budget Narrative. The budget for each year must include a brief 
narrative describing each budget line-item. For budget planning 
purposes, applicant TAACs should assume flat funding for the three-year 
project period.
    2. Facilities and Administrative Costs. If indirect or facilities 
and administrative costs (replacing the term ``indirect costs'' for 
institutions of higher education) are included in the budget, the 
applicant must include a copy of its current Indirect or Facilities and 
Administrative Cost Rate Agreement or documentation applying for an 
Indirect or Facilities and Administrative Cost Rate Agreement. 
Applicants that do not have a current Indirect or Facilities and 
Administrative Cost Rate Agreement negotiated and approved by the 
Department of Commerce (or by the applicable cognizant federal agency) 
may propose indirect or facilities and administrative costs in their 
budget. However, any TAAC without a currently approved Indirect or 
Facilities and Administrative Cost Rate Agreement must prepare and 
submit an indirect or facilities and administrative cost allocation 
plan and rate proposal as required by 2 CFR Part 220 (OMB Circular A-
21), 2 CFR Part 225 (OMB Circular A-87), or 2 CFR Part 230 (OMB 
Circular A-122), as applicable. The allocation plan and the rate 
proposal must be submitted to the Department of Commerce's Office of 
Acquisition Management (or applicable cognizant federal agency) within 
90 days from the award start date.
    The maximum dollar amount of allocable indirect or facilities and 
administrative costs for which EDA will reimburse a recipient shall be 
the lesser of the:
    (i) Line-item amount for the federal share of indirect or 
facilities and administrative costs contained in the EDA-approved 
budget for the award; or
    (ii) federal share of the total allocable indirect or facilities 
and administrative costs of the award based on the cost rate approved 
by the Department of Commerce (or applicable cognizant federal agency), 
provided that the cost rate is current at the time the costs were 
incurred and provided that the rate is approved on or before the award 
end date. See Paragraph 5 (Indirect Costs) of the Department of 
Commerce Pre-Award Notification Requirements for Grants and Cooperative 
Agreements (69 FR 78389).
    The TAAC should include a statement in the budget narrative 
indicating whether it does not have, or has not applied for, an 
Indirect or Facilities and Administrative Cost Rate Agreement.
    3. Program Income. If the operation of the TAAC is expected to 
generate ``program income'' (as defined in 15 CFR 14.24 or 24.25, as 
applicable), such

[[Page 6925]]

amounts must be accounted for in the project budget and must be added 
to those budget line-items pertaining to direct Program delivery.

Program Requirements for TAACs

    The TAACs are advised to carefully read the following paragraphs 
that detail programmatic and administrative requirements to be included 
in each TAAC's fiscal years 2008-2010 cooperative agreement with EDA. 
Some of the requirements set out below are currently required of TAACs 
and some are new requirements.

Petitions for Certification of Eligibility.

    1. Petition for Certification Template. Petitions for certification 
of eligibility must be made by completing and submitting Form ED-840P, 
which will be provided to TAACs as a portable document format (PDF) 
document. The TAAF Program Worksheet also is attached as Exhibit C to 
this program announcement. EDA strongly encourages TAACs to complete 
and submit the TAAF Program Worksheet along with each petition for 
certification. The worksheet is formatted as a fillable PDF document, 
and will help EDA expedite the TAAC's petitions.
    2. Submission of Petitions. All TAAF Program documentation and 
submissions must be made electronically. Petitions for certification 
must be submitted to EDA's TAAF mailbox at [email protected] in PDF 
format. Each petition shall include all information needed for EDA to 
assess the petition. Each PDF document included in a petition must use 
a descriptive file name that includes both the name of the TAAC and the 
name of the petitioning firm.
    3. Employment Data. Each TAAC shall require any firm applying for 
certification to retrieve and submit the most currently available 
documentation of the firm's required quarterly employee contribution to 
social security and Medicare under the Federal Insurance Contributions 
Act (FICA) or the Self-Employment Contributions Act so that the TAAC 
and EDA can confirm the firm's level of employment. This documentation 
must be scanned or saved electronically and included in each firm's 
petition for certification.
    4. Customer Interviews. To help evaluate whether a firm has been 
trade-impacted, the firm must provide a list of four important current 
or recent customers. Each TAAC must interview at least two of these 
customers to determine if and why each customer has decreased purchases 
from the firm. A synopsis of each customer interview conducted in the 
course of a firm petition, whether or not the customer has adjusted its 
purchasing patterns because of import competition, must be included in 
the petition. The synopsis shall include all information necessary for 
EDA to make the statutory findings that imports contributed importantly 
to the decline in employment and sales or production (e.g., what 
factors affected the amount of purchases the customer made from the 
firm, whether the customer is purchasing imported products in lieu of 
the firms products, and the length of time the customer has been 
purchasing imported products).
    5. The TAAC Director's Certification of Customer Interviews. Each 
TAAC Director is responsible for ensuring that the representations made 
in a certification petition are complete and accurate to the best 
knowledge of the TAAC and must certify to that effect. Failure to 
exercise due diligence to ensure that a firm's representations are 
accurate constitutes a material breach of the TAAC's cooperative 
agreement with EDA. EDA will issue a deficiency memorandum to a TAAC 
each time the TAAC submits a certification with inaccurate or 
inadequate information. See the paragraph below for more information on 
EDA's consideration of deficiency memoranda.
    Adjustment Proposals: The AP is the tool through which a client-
firm should begin to reestablish competitive advantage. Each AP is to 
be developed by the TAAC in consultation with and submitted on behalf 
of a client-firm. Each AP shall contain sufficient information and 
detail to allow EDA to make the determination that the AP:
    (i) Is reasonably calculated to contribute materially to the 
economic adjustment of the client-firm (i.e., that such proposal will 
constructively assist the firm to establish a competitive position in 
the same or a different industry);
    (ii) Gives adequate consideration to the interests of a sufficient 
number of separated workers of the client-firm; and
    (iii) Demonstrates that the client-firm will make all reasonable 
effort to use its own resources for its recovery. See 13 CFR 315.16.
    1. AP Template. The AP template and accompanying instructions are 
included in this program announcement as Exhibit D. While each AP must 
be tailored to the specific needs of the client-firm, the template will 
provide a standard format to help TAACs and contractors produce APs 
that effectively assist firms and meet EDA requirements. EDA strongly 
encourages TAACs and contractors to use the AP template in providing 
assistance to firms. The template is formatted as a fillable PDF 
document and it will assist EDA Program staff to expeditiously review 
APs.
    2. Submission of APs. All APs must be submitted electronically to 
EDA as a single PDF document at [email protected]. The PDF document must 
include all information needed for EDA to evaluate the AP.
    3. Assistance Cost Limits. As noted above under ``Cost Sharing 
Requirement,'' a client-firm must pay at least 25 percent of the cost 
of the preparation of its AP. A client-firm that requests $30,000 or 
less in total assistance to implement an approved AP must pay at least 
25 percent of the cost of that assistance. A client-firm that requests 
more than $30,000 in total assistance in its approved AP must pay at 
least 50 percent of the cost of that assistance. The total amount of 
assistance provided to a client-firm in an AP is generally limited to 
$150,000 ($75,000 EDA funds and $75,000 client-firm funds). Assistance 
that exceeds this limit may be provided only with EDA's prior written 
approval. Limitations specific to a particular TAAC will be set out in 
the cooperative agreement between EDA and the TAAC. Also, the 
procurement agreement among the TAAC, the client-firm, and the 
contractor providing assistance should describe clearly applicable cost 
limitations. See 13 CFR 315.6(c)(2).
    4. Procurement of Assistance under APs. Each TAAC must have written 
procurement procedures. These procedures must require, in part, that 
solicitations for services, including services to create or implement 
an AP, must include:
    a. A clear and accurate description of the technical requirements 
for the material, product, or service to be procured. In competitive 
procurements, such a description shall not contain features which 
unduly restrict competition;
    b. Requirements that the bidder/offeror must fulfill and all other 
factors to be used in evaluating bids or proposals;
    c. A description, whenever practicable, of technical requirements 
in terms of functions to be performed or performance required, 
including the range of acceptable characteristics or minimum acceptable 
standards;
    d. The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation;
    e. The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement; and

[[Page 6926]]

    f. Preference, to the extent practicable and economically feasible, 
for products and services that conserve natural resources and protect 
the environment and are energy efficient.
    5. Sole-Sourcing of AP Projects. As required by federal acquisition 
regulations, a TAAC shall select contractors providing services under 
an AP via an open bid process that the TAAC ensures is free from 
conflicts of interest.
    Each TAAC shall maintain a list of each contractor that produces, 
consults, provides services under, receives federal funds through, or 
is any way involved in the creation or implementation of an AP for a 
client-firm. The TAAC shall provide EDA with this list on request. The 
identity of each contractor that produces, consults on, provides 
services under, receives federal funds through, or is in any way 
involved in the creation or implementation of an AP must be disclosed 
and easily identifiable on the document. As noted above, all APs must 
be submitted to EDA electronically. Identification of consulting firms 
shall include Employer Identification Numbers (EINs) and Data Universal 
Number System (DUNS) numbers.
    If the procurement of services to create or implement an AP exceeds 
$100,000 (the current simplified acquisition threshold), the TAAC 
shall, on request, make available for EDA pre-award review and 
procurement documents, such as the requests for proposals or 
invitations for bids and independent cost estimates. EDA may ask the 
TAAC to make available information about its procurement practices if 
the procurement was awarded without competition or if only one bid or 
offer was received in response to a solicitation or if a proposed 
contract modification changed the scope of a contract or increased the 
contract amount by more than $100,000. See 15 CFR 14.40-14.48 or 24.36, 
as applicable, for more information on these requirements.
    6. Implementation of and Changes to APs. APs should be designed to 
address a client-firm's current conditions so that the firm can better 
compete in the future. To ensure that approved APs are effective tools 
for economic recovery, the firm should begin implementing the AP 
expeditiously, generally within six months of EDA's approval, subject 
to the availability of funds. Each TAAC is responsible for facilitating 
its client-firms' implementation of their APs and providing as much 
assistance as possible. If active steps towards implementing an 
approved AP, as determined by EDA, are not taken within six months of 
EDA's approval, the TAAC must provide an explanation of the delay to 
EDA. Each TAAC must monitor client-firms' implementation of APs and 
provide updates on implementation in the TAAC's regular report to EDA. 
However, in accordance with Department of Commerce regulations, TAACs 
may not charge a fee for such monitoring. See the paragraph below on 
the prohibition on charging a monitoring fee. The following are details 
on allowable adjustments to APs:
    a. Amended APs. If a certified firm does not satisfactorily 
demonstrate progress toward implementing its approved AP within six 
months of approval, EDA will assume the projects contained in the 
approved AP are no longer current and it will be the firm's fiscal 
responsibility to either amend the AP by updating it, or to demonstrate 
to EDA that the projects in the AP continue to meet the firm's current 
needs and will meet the AP criteria as set out at 13 CFR 315.16(c); and
    b. Revised APs. If EDA approves an AP for a certified firm that has 
a total cost that is less than the maximum amount of assistance set out 
in the cooperative agreement between EDA and the TAAC, and the firm 
successfully implements or demonstrates progress towards implementing 
its AP, the TAAC, with EDA's prior written approval, may revise it by 
adding projects to the AP up to the maximum amount of assistance as set 
out in the cooperative agreement between EDA and the TAAC.
    7. Prohibition on Monitoring Fees Charged by a TAAC. TAACs 
frequently subcontract with third parties to provide services under 
APs. Department of Commerce award recipients are responsible for 
monitoring subcontractor performance. See 15 CFR 14.51 or 24.40, as 
applicable. A TAAC may not assess a fee under the award or otherwise 
attempt to generate program income via any other charge or fee for 
monitoring contractor performance. In addition, a TAAC may not assess 
either client-firms or EDA a fee for monitoring client-firm progress in 
implementing an AP. See 15 CFR 14.51 or 24.40, as applicable, and 13 
CFR 315.6(c)(2), which sets out matching share requirements to be paid 
by client-firms for the preparation of APs. Except as provided in 
paragraph 3 of this section (``Assistance Cost Limits'') above, TAACs 
may not assess fees in connection with the program.
    8. Firms' Responsibility to Implement APs. Certified firms have 
five years from the date of EDA's approval of an AP to complete work on 
that AP. Generally, EDA will not consider requests to implement an AP 
beyond five years from the date of EDA's approval of the AP. Any 
request for an extension beyond five years must demonstrate an 
exceptional need and justifiable extenuating circumstances for the 
delay.
    Program Performance Assessment: EDA will assess program performance 
to ensure that the TAAF Program accomplishes its purposes and that 
federal funds are put to their most productive use. EDA will evaluate 
each TAAC using the following criteria to help determine the funding 
level for the TAAC's funding periods within a project period.
    1. Quality of TAAC Submissions. TAAC Directors are responsible for 
the quality of submissions to EDA. All submissions should be timely, 
proof-read, complete, and accurate, and should not cause EDA to 
undertake additional background work to assess the quality and validity 
of the information submitted.
    2. Deficiency Citations. EDA will issue a deficiency memorandum 
whenever it determines that a petition, AP, or other TAAC submission is 
not timely, proof-read, complete, accurate, or otherwise causes EDA to 
undertake additional background work to assess the quality and validity 
of the information submitted. The number and substance of deficiency 
memoranda issued to a TAAC during each year of the TAAC's project 
period will be considered when EDA assesses the TAAC's performance and 
will have an impact upon TAAC funding for subsequent project periods. 
If repeated or major deficiencies are identified through EDA's 
assessment of the quality of the TAAC's submissions, EDA will take 
steps to protect the federal interest under the award, including 
suspension and termination.
    3. Services to Client-Firms. EDA must ensure that funds 
appropriated to assist trade-impacted firms are put to their highest 
and best use. To that end, EDA will examine the percentage of the total 
amount awarded to each TAAC that is delivered to firms as client 
services. EDA will notify each TAAC of the target percentage. 
Percentages higher than the target indicate that the TAAC should re-
evaluate its expenditure of award funds.
    4. Collaboration. EDA will examine evidence of the TAAC's 
collaboration with DOL Trade Adjustment Assistance Programs to ensure 
that both EDA and DOL funds are leveraged to the maximum extent 
possible.
    5. Firm Survey. Following the completion and delivery of an AP to a 
client-firm and the implementation of each project or service proposed 
in an approved AP, the TAAC will provide the firm with a survey to help 
assess the

[[Page 6927]]

effectiveness of and the firm's satisfaction with the assistance 
provided. EDA will provide this survey to the TAACs, and will review 
service delivery periodically based in part on this survey.

Financial Management

    1. TAAC Budget. The budget is the financial expression of the 
TAAC's planned program execution. The TAAC's budget is submitted on the 
Form SF-424A, ``Budget Information--Non-Construction Programs,'' both 
for an original award (i.e., a three-year project period) and for each 
amendment to the original award.
    2. Changes to the TAAC Budget. A TAAC shall not transfer funds 
across direct cost categories if the federal share of the project 
exceeds $100,000 and the cumulative amount of such transfers exceeds 
10% of the total federal and non-federal amount of the award. In 
addition, a TAAC must receive EDA's written approval if the transfer 
implicates a change in project scope or objective or if the transfer is 
of amounts budgeted for indirect costs to absorb increases in direct 
costs, or vice versa. See 15 CFR 14.25 or 24.30, as applicable.
    3. Payment. A TAAC may request an advance or reimbursement of award 
funds from EDA to cover costs incurred in providing assistance to 
client-firms and to pay for reasonable and necessary TAAC 
administrative expenses. Department of Commerce regulations authorize 
EDA to advance funds to a TAAC as long as the TAAC maintains:
    a. Written procedures that minimize the time elapsing between the 
transfer of funds to and the disbursement by the TAAC; and
    b. Financial management systems that meet the standards for fund 
control and accountability set out at 15 CFR 14.21.
    Advances are limited to the minimum amounts needed for project 
costs and must be timed in accordance with the actual, immediate cash 
requirements of the TAAC in carrying out project needs. The timing and 
amount of advances shall be as close as is administratively feasible to 
the actual disbursement by the TAAC for direct project costs and the 
proportionate share of allowable indirect costs.
    The TAAC must submit each request for award funds to EDA using Form 
SF-270, ``Request for Advance or Reimbursement,'' in accordance with 
these requirements. Each request shall be sufficient to meet the TAAC's 
reasonably anticipated needs for the upcoming 30 days or to cover the 
TAAC's expenditures for the most recently past 30 days, if the TAAC 
receives a reimbursement of award funds. If the TAAC does not meet the 
Department of Commerce's requirements for advance payment of award 
funds, EDA may decide to make payments solely through reimbursement. 
See 15 CFR 14.22 or 24.21, as applicable.
    4. Supporting Documentation for Requests for Advances or 
Reimbursements. Pursuant to EDA's duty of responsible stewardship over 
federal funds, if EDA has reasonable concerns regarding a TAAC's 
submitted Form SF-270, EDA may request the TAAC to submit an expense 
report with supporting documentation that fully explains the TAAC's 
request for an advance or reimbursement. The report shall be in the 
same format as the budget submitted as the TAAC's controlling budget, 
and shall show the original budget, the budget for the upcoming 30 days 
for which the advance is requested, and expenses incurred year to date. 
EDA is in the process of developing an expense report template to 
provide to each TAAC.
    5. Financial Reporting. Each TAAC shall submit Form SF-269, 
``Financial Status Report,'' to EDA quarterly to report the status of 
unreimbursed obligations. This report will provide information on the 
amount of allowable project expenses that have been incurred, but not 
claimed for reimbursement by the recipient.
    When EDA advances funds to a TAAC, the TAAC also must submit Form 
SF-272, ``Report of Federal Cash Transactions,'' to EDA quarterly to 
monitor advances to a disbursement by the TAAC. EDA may require the 
TAAC to forecast federal funds requirements in the ``Remarks'' section 
of the report. When practical and deemed necessary, EDA also may 
require the TAAC to report on advances received in excess of three days 
and provide short narrative explanations on actions taken by the TAAC 
to reduce excess balances in the ``Remarks'' section of the SF-272.
    The first submission of Forms SF-269 and SF-272, if applicable, 
shall be as of March 30 of each year and shall be submitted to EDA no 
later than April 30 of each year; the second report shall be as of June 
30 of each year and shall be submitted to EDA not later than July 30 of 
each year; the third report shall be of September 30 and shall be 
submitted to EDA not later than October 30 of each year; and the fourth 
report shall be of December 30 of each year and shall be submitted to 
EDA no later than January 30 of the following year. EDA may require 
TAACs that receive advances totaling $1 million or more per year to 
submit Form SF-272 on a monthly basis. See 15 CFR 14.52 or 24.41, as 
applicable.
    6. End-of-Year Submission of Budget. Within 90 days of the end of 
the TAAC's annual funding period under its award, the TAAC shall submit 
an analysis of the TAAC's prior year budget as planned versus 
implemented that clearly identifies, justifies, and explains any 
differences between planned costs and actual costs, any transfers among 
cost categories, and any other changes that took place during the year.
    7. Audit Requirements. Organization-wide or program-specific audits 
shall be performed in accordance with the Single Audit Act Amendments 
of 1996, as implemented by OMB Circular A-133, ``Audits of States, 
Local Governments, and Non-Profit Organizations,'' and the related 
``Compliance Supplement.'' TAACs typically expend federal awards of 
$500,000 or more in a fiscal year and thus are required to have an 
audit conducted for that year in accordance with the requirements 
contained in OMB Circular A-133. Each TAAC associated with a university 
is responsible for instructing the auditor to address the operations 
and controls of the sponsored programs or similar university office. 
Audit findings shall specifically address the operations and controls 
of the sponsored programs or similar office of the university.
    A copy of the audit must be submitted to the Bureau of the Census 
at the following address: Federal Audit Clearinghouse, 1201 E. 10th 
Street, Jeffersonville, IN 47132. In addition, each TAAC must submit 
the TAAC's currently valid audit required under OMB Circular A-133 to 
EDA headquarters within 30 days of completion of the audit. The address 
for OMB Circular A-133 audit submissions is: Department of Commerce, 
Economic Development Administration, William P. Kittredge, Ph.D., 1401 
Constitution Avenue, NW., Room 7009, Washington, DC 20230.
    TAAC Administrative Requirements: Each TAAC will maximize 
coordination with the other TAACs and relevant organizations to avoid 
duplication of services offered by other organizations. Additionally, 
TAACs shall adhere to the minimum administrative guidelines detailed 
below. In reviewing performance, EDA will evaluate the TAACs on their 
adherence to these guidelines as well as their performance in assisting 
firms, since TAAC administration is key to effective firm assistance. 
The Director of each TAAC is expected to ensure compliance with these 
guidelines.

[[Page 6928]]

    1. TAAC Operation and Management. TAACs provide assistance to a 
wide range of production and manufacturing firms experiencing 
difficulty in adjusting to the global marketplace. These firms provide 
jobs and capital that are vital to State, local, and national economic 
well-being. Therefore, each TAAC is expected to be managed 
professionally and to be capable of responding flexibly to client-
firms.
    a. Forty-Hour Customary Workweek. For each week of the calendar 
year, each TAAC shall be open to the public during workdays and hours 
customary to each TAAC's geographic service region, for not less than a 
40-hour, Monday through Friday workweek. Each TAAC Director shall work 
a 40-hour workweek during the business hours customary to each TAAC's 
geographic service region. If TAAC workload demands additional hours or 
a firm requires additional assistance, the TAAC shall include 
flexibility in its budget to remain open for the period needed to 
resolve the workload or firm issues.
    b. Consistent Contact with EDA. During each TAAC's customary 
business hours, EDA must have a direct line contact phone number and e-
mail address for each TAAC Director. If the TAAC Director is on 
official travel status that is being charged to the award, TAAC staff 
shall be able to provide EDA with contact information for the Director, 
including the name of the hotel at which the Director is staying and a 
telephone number at which the Director can be reached.
    c. TAAC Facilities and Resources. TAAC facilities and resources 
shall not be used for any activities inconsistent with the terms and 
conditions of the award to the TAAC. TAAC offices, addresses, and 
telephone numbers are not to be listed in any manner that would cause a 
reasonable person to misconstrue the TAAC office as a residence or 
other place of business. TAAC employees are prohibited from using the 
TAAC address for any purpose other than those described in the 
cooperative agreement and award scope of work. EDA will be the sole 
interpreter of those provisions.
    d. TAAC Staff Training. Each TAAC Director is responsible for 
training TAAC staff to deliver services to client-firms. When the TAAC 
Director is absent for any reason, there shall be a TAAC staff member 
responsible for maintaining consistent TAAC operations in the 
Director's absence.
    e. TAAC Boards and Other Management or Governing Body. The TAAC 
Director is responsible for ensuring that each member of the TAAC's 
Board of Directors (or other management or governing body) is aware of 
EDA's conflicts of interest rules and that actual or apparent conflicts 
of interest are avoided. If a conflict is discovered, the TAAC Director 
is responsible for promptly resolving the matter through 
disqualification, divestiture, waiver or other appropriate measures. 
See 13 CFR 300.3 (for the definition of ``Interested Party'') and 
302.17.
    2. Travel. A TAAC's travel costs are allowable only to the extent 
that they are necessary as determined by EDA and otherwise allowable 
under relevant Office of Management and Budget (OMB) cost principles. A 
TAAC must provide receipts and documentation of travel-related expenses 
and any airfare costs must not exceed the customary standard commercial 
airfare (coach or equivalent). If EDA determines that a TAAC is in 
persistent noncompliance with the applicable cost principles that 
govern travel costs, EDA reserves the right to use the reimbursement 
method to cover all travel costs incurred by the TAAC or to take such 
other action as EDA deems appropriate.
    TAAF Program Promotion: Promoting the TAAF Program helps ensure 
that a wide variety of trade-impacted firms receive assistance. 
Therefore, the TAAF Program's status as a federally funded program and 
EDA as the funding agency must be prominently featured on all public 
information, including press releases, Web sites, program brochures, 
and reports released by the TAAC, including APs.
    No Obligation for Future Funding: As provided in the Department of 
Commerce Standard Terms and Conditions for Financial Assistance Awards 
(May 2007), if an applicant is awarded funding, neither the Department 
of Commerce nor EDA is under any obligation to provide any additional 
future funding in connection with that award or to make any future 
award(s). Amendment or renewal of an award to increase funding or to 
extend the period of performance is at the sole discretion of the 
Department of Commerce and of EDA.
    Past Performance and Non-Compliance with Award Provisions: 
Unsatisfactory performance under prior federal awards, such as audit 
reports with findings of reportable conditions and material weaknesses, 
may result in an application or a funding period extension not being 
considered.
    Failure to comply with any or all of the provisions of an award may 
have a negative impact on future funding by the Department of Commerce 
(or any of its operating units) and may be considered grounds for any 
combination or all of the following actions: temporarily withholding 
payments pending correction of the deficiency; disallowance of all or 
part of the cost of the activity or action not in compliance; wholly or 
partially suspending or terminating the current award; withholding 
further awards; changing the method of payment from advance to 
reimbursement only; or the imposition of other special award conditions 
unique to the circumstances at hand. See 15 CFR 14.14 and 14.62 or 
24.12 and 24.43, as applicable.
    Program Teleconferences: EDA headquarters will hold a 
teleconference to provide general program information and information 
regarding this program announcement during the week of February 11, 
2008. The exact date, time, registration information, and protocols for 
the teleconference will be provided to participants in advance of the 
call.

Classification

    Paperwork Reduction Act: This document contains collection-of-
information requirements subject to the Paperwork Reduction Act (PRA). 
The use of Standard Forms (SF) SF-424, SF-424A, SF-424B, and SF-LLL, 
and ED-900A has been approved by OMB under the respective OMB Control 
Numbers 0348-0043, 0348-0044, 0348-0040, 0348-0046, and 0610-0094. 
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 PRA unless that collection of information displays a currently 
valid OMB Control Number.
    The Department of Commerce Pre-Award Notification Requirements for 
Grants and Cooperative Agreements: The administrative and national 
policy requirements for all Department of Commerce awards, contained in 
the Department of Commerce Pre-Award Notification Requirements for 
Grants and Cooperative Agreements (69 FR 78389), are applicable to this 
program announcement.
    Executive Order 12866: This notice has been determined to be not 
significant for purposes of Executive Order 12866.
    Executive Order 13132 (Federalism): It has been determined that 
this notice does not contain policies with Federalism implications as 
that term is defined in Executive Order 13132.
    Administrative Procedure Act/Regulatory Flexibility Act: Prior 
notice and an opportunity for public comments are not required by the 
Administrative Procedure Act or any other law for rules

[[Page 6929]]

concerning grants, benefits, and contracts (5 U.S.C. 553(a)(2)). 
Because notice and opportunity for comment are not required pursuant to 
5 U.S.C. 553 or any other law, the analytical requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are inapplicable. 
Therefore, a regulatory flexibility analysis has not been prepared.

    Dated: January 30, 2008.
Benjamin Erulkar,
Deputy Assistant Secretary of Commerce for Economic Development.
[FR Doc. E8-2133 Filed 2-5-08; 8:45 am]
BILLING CODE 3510-24-P