Market Development Cooperator Program

DEPARTMENT OF COMMERCE

International Trade Administration

[Docket No. 940385-4085]

RIN 0625-ZA00

Market Development Cooperator Program

AGENCY: International Trade Administration (ITA), Commerce.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The mission of ITA is to promote U.S. exports and to

strengthen the international trade position of the United States. ITA's

ability to fulfill its mission is enhanced through building

partnerships with the private sector. To encourage such partnerships,

ITA has created the Market Development Cooperator Program to develop,

maintain, and expand foreign markets for nonagricultural goods and

services produced in the United States. For purposes of this program,

``nonagricultural goods and services'' means goods and services other

than agricultural products as defined in 7 U.S.C. 451. ``Produced in

the United States'' means having substantial inputs of materials and

labor originating in the United States, such inputs constituting at

least 50 percent of the value of the good or service to be exported.

The advantage of a joint effort is that it permits the Government

to pool expertise and funds with non-federal sources so that each

maximizes its market development resources. Partnerships of this sort

also may provide a sharper focus on long-term export market development

than do traditional trade promotion activities and serve as a mechanism

for improving Government-industry relations.

While the Market Development Cooperator Program is sponsored,

guided and funded by the Department of Commerce with a matching

requirement by the recipient, applicants are expected to develop,

initiate and carry out market development project activities. As an

active partner, ITA will provide assistance identified by the applicant

as being essential to the achievement of project goals and objectives.

U.S. industry is best able to assess its problems and needs in the

foreign marketplace and to recommend innovative solutions and programs

that can be the formula to success in international trade.

Examples of activities that might be included in an applicant's

project are described below. Not one of these activities or any

combination of these activities must be included for a proposal to

receive favorable consideration. Applicants are encouraged to propose

activities that (1) would be most appropriate to market development

needs of their industry or industries; and (2) display the imagination

and innovation of the applicant working in partnership with the

Government to obtain the maximum market development impact.

A public meeting for parties considering applying for funding under

the MDCP will be held on May 10, 1994. Attendance at this public

meeting is not required of potential proposers. The purpose of the

meeting is to provide general information regarding the MDCP

procedures, selection process, and proposal preparation to potential

applicants unfamiliar with the MDCP. No discussion of specific

proposals will occur at this meeting.

DATES: The public meeting will be held May 10, 1994. Completed

applications must be received no later than June 7, 1994. Competitive

application kits will be available from the Department of Commerce

starting April 26, 1994. It is anticipated that it will take 6 weeks to

process applications.

ADDRESSES: The public meeting will be held at the Herbert Clark Hoover

Building, U.S. Department of Commerce, 14th and Constitution Avenue,

NW., Washington, DC Contact the information contact for room location.

To obtain an application kit, please send a written request with a

self-addressed mailing label to Mr. Greg O'Connor, Manager, Market

Development Cooperator Program, Trade Development/OPCRM, room 3211,

U.S. Department of Commerce, Washington, DC 20230. Application kits may

also be picked up in room 3211, U.S. Department of Commerce, 14th and

Constitution Avenue, NW., Washington, DC 20230. All forms necessary to

submit an application will be included in the application kit.

Completed applications should be sent to the Office of Planning,

Coordination and Resource Management, Trade Development, room 3211,

14th & Constitution Avenue, NW., Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Applicants wanting further information

on this program should contact Mr. Greg O'Connor, Manager, Market

Development Cooperator Program, Trade Development, room 3211,

Washington, DC 20230, (202) 482-3197.

SUPPLEMENTARY INFORMATION:

Authority

The Omnibus Trade and Competitiveness Act of 1988, Pub. L. No.

100-418, Title II, sec. 2303, 102 Stat. 1342, 15 U.S.C. 4723.

Catalog of Federal Domestic Assistance (CFDA)

No. 11.112, Market Development Cooperator Program.

Program Description

The objective of the Market Development Cooperator Program is to

develop, maintain, and expand foreign markets for nonagricultural goods

and services produced in the United States. The intended beneficiaries

are U.S. producers of nonagricultural goods or services that seek to

export such goods or services.

Market Development Cooperator Program funds should not be viewed as

a replacement for funding from other sources, either public or private.

An important goal of this program is to increase the sum of Federal and

non-Federal export market development activities. This goal can best be

achieved by using program funds to encourage new initiatives. In

addition to new initiatives, expansion of the scope of an existing

project also may qualify for funding consideration. The Department of

Commerce will consider such projects as entirely new initiatives.

Applicants are encouraged to propose activities that would be most

appropriate to the market development needs of their industry or

industries. The following are examples of activities which might be

included in an application (no one of these activities or any

combination of these activities must be included for an application to

receive favorable consideration):

(1) Opening an overseas office or offices to perform a variety of

market development services for companies joining a consortium to avail

themselves of such services; such an office should not duplicate the

programs or services of the U.S. and Foreign Commercial Service

(US&FCS) post(s) in the region;

(2) Detailing a private sector individual to a US&FCS post in

accordance with 15 U.S.C. 4723(c);

(3) Entering into a contract with a bona fide market research

company to conduct detailed, product-specific market research;

(4) Assigning industry specialists to work with Department of

Commerce/U.S. Executive Director Procurement Liaison Offices at the

Multilateral Development Banks to seek out and develop procurement

opportunities;

(5) Underwriting the cost of overseas market research or

participation in overseas trade exhibitions and trade missions to

promote U.S. exports, or covering the expenses of reverse trade

missions and/or foreign buyer group travel to U.S. domestic trade

shows;

(6) Overseas product demonstrations;

(7) Export seminars in the United States or market penetration

seminars in the market(s) to be developed;

(8) Technical trade servicing that helps overseas buyers to choose

the right U.S. good(s) or service(s) and to use the good or service

efficiently;

(9) Joint promotions with foreign customers;

(10) Training of foreign nationals to perform after-sales service

or to act as distributors;

(11) Working with organizations in the foreign marketplace

responsible for setting standards and for product testing to improve

market access; and

(12) Publishing an export resource guide or an export product

directory for the industry or industries in question if no comparable

one exists.

Funding Availability

The total amount of funds available for this program is $2.5

million for fiscal year (FY) 94. It is contemplated that a minimum of

four (4) cooperative agreements will be concluded with eligible

entities for this program. Each cooperative agreement will not exceed a

total of $500,000 regardless of the duration of the award.

Matching Requirements

Applicants will be expected to supply two thirds (2/3) of total

project costs, with the Federal portion to be one third (1/3). The

Department of Commerce will support only a portion of the direct costs

of each project. Each applicant will support a portion of the direct

costs (to be specified in the application). For purposes of this

program, ``direct costs'' are defined as personnel, fringe benefits,

travel, equipment, supplies, contractual, and other direct costs (e.g.,

rent and furnishings for an overseas office).

A minimum of one half (1/2) of each applicant's support must be in

the form of new cash outlays expressly for the project. The balance of

the applicant's support may consist of in-kind contributions (goods and

services). Applicants may charge companies in the industry or other

industry organizations reasonable fees to take part in or avail

themselves of services provided as part of applicants' projects. Plans

to charge fees should be described in detail in the applicant's

application.

Type of Funding Instrument

Since it is anticipated that ITA will be substantially involved in

the implementation of each project for which an award is made, the

funding instrument for this program will be a cooperative agreement.

Eligibility Criteria

Trade associations, nonprofit industry organizations, state trade

departments and their regional associations including centers for

international trade development, and private industry firms or groups

of firms in cases where no entity described above represents that

industry are eligible to apply for cooperative agreements under this

program. For the purpose of this program, a ``nonprofit industry

organization'' is defined as any nonprofit organization (such as

chambers of commerce and world trade centers) made up of firms in an

industry, or which is established or funded by and which operates on

behalf of an industry. For the purpose of this program, a ``trade

association'' is defined as consisting of member firms in the same

industry, or in related industries, or which share common commercial

concerns. The purpose of the association is to further the commercial

interests of its members through the exchange of information,

legislative activities, and the like.

Eligible entities may join together to submit an application as a

joint venture and to share costs. For example, two trade associations

representing different segments of a single industry or related

industries may pool their resources and submit one application. Foreign

businesses and private groups also may join with eligible U.S.

organizations to submit applications and to share the costs of proposed

projects. Applications will be accepted from eligible entities

representing any industry, subsector of an industry or related

industries. Each applicant must permit all companies in the industry in

question to participate, on equal terms, in all activities that are

scheduled as part of a proposed project whether or not the company is a

member or constituent of the eligible organization.

Eligible entities desiring to participate in this program must

demonstrate the ability to provide a competent, experienced staff and

other resources to assure adequate development, supervision and

execution of the proposed project activities. Applicants must describe

in detail all assistance expected from the Department of Commerce or

other Federal Government agencies to implement project activities

successfully. Each applicant must provide a description of the

membership of the eligible entity, the degree to which the entity

represents the industry or industries in question, and the role, if

any, foreign membership plays in the affairs of the eligible entity.

Applicants should summarize both the recent history of their industry

or industries' competitiveness in the international marketplace and the

export promotion history of the eligible entity or entities submitting

the application.

Project proposals must be compatible with U.S. trade and commercial

policy.

Award Period

Funds may be expended over the period of time required to complete

the scope of work, but not to exceed three (3) years from the date of

the award.

Indirect Costs

The total dollar amount of the indirect costs proposed in an

application under this program must not exceed the indirect cost rate

negotiated and approved by a cognizant Federal agency prior to the

proposed effective date of the award or 100 percent of the total

proposed direct costs dollar amount in the application, whichever is

less.

Application Forms and Kit

Standard Forms 424 (Rev. 4-92), 424A (Rev. 4-92), and 424B (Rev. 4-

92), which are required as part of the application, are available from

the contact person indicated above. Applicants must submit a signed

original and three (3) copies of the application and supporting

materials.

Project Funding Priorities

Applications may be targeted for any market in the world. In ITA's

view, projects in the following sectors and countries present

opportunities to develop, maintain and expand overseas markets and

enhance jobs through U.S. exports:

(a) Sectors: Environmental technologies, transportation

technologies, energy technologies, information technologies, health

technologies, and financial services;

(b) Geographic Markets: Argentina, Brazil, China, Hong Kong, India,

Indonesia, Korea, Mexico, Poland, Russia and the other Newly

Independent States of the former Soviet Union, South Africa, Taiwan,

and Turkey.

While the proposed projects may entail an overseas presence,

activities may take place in the United States if it is necessary to

the project's success.

Developing a project plan requires solid background research.

Applicants should study, and applications should reflect such study of,

the following:

1. The market potential of the good(s) or service(s) to be promoted

in a particular market(s),

2. The competition from host-country and third-country suppliers,

and

3. The economic situation and prospects that bear upon the ability

of a country to import the good(s) or service(s).

Applicants should present in their applications an assessment of

industry resources that can be brought to bear on developing a market;

the industry's ability to meet potential market demand expeditiously;

and the industry's after-sales service capability in a particular

foreign market(s).

After describing their completed basic research, applicants should

develop marketing plans that set forth the overall objectives of the

projects and the specific activities applicants will undertake as part

of these projects. Applications should display the imagination and

innovation of the private sector working in partnership with the

Government to obtain the maximum market development impact.

Evaluation Criteria

The Department of Commerce is interested in projects that

demonstrate the possibility of both significant results during the

project period and lasting benefits extending beyond the project

period. To that end, consideration for financial assistance under the

Market Development Cooperator Program will be based upon the following

evaluation criteria:

(1) Anticipated

(a) Increase in U.S. exports generated (per dollar of cooperator

program funds spent) by the proposed expenditure of funds; and

(b) Increase in the industry's foreign market share. Applicant

should provide quantifiable estimates of expected project results,

along with detailed explanations, for (1)a and (1)b above.

(2) Anticipated

(a) Increase in the number of U.S. companies operating in the

market(s) selected (multiplier effect); and/or

(b) Increase in the number of current companies in the market

undertaking new export initiatives. Applicant should provide

quantifiable estimates of expected project results for either (2)a or

(2)b above, or for both where proposed project increases are

anticipated.

(3) Export potential of the good(s) and/or service(s) to be

promoted.

(4) Willingness and ability of the applicant to back up promotional

activities with aggressive marketing and after-sales service and

probability that the project can be continued on a self-sustained basis

after the completion of the award.

(5) Intent and capability of the applicant to enlist the

participation of small and medium size American companies in consortia

and activities that are to be part of the proposed project;

(6) Size of the cash portion of the applicant's funding for the

proposed project and institutional capacity of the applicant to carry

out the work plan;

(7) Creativity and innovation displayed by the work plan while at

the same time being realistic; and

(8) Reasonableness of the itemized budget for project activities.

Evaluation criteria 1-3 are of utmost importance in the selection

process and will be worth 60 out of a possible 100 points as follows:

Criterion #1--maximum 20 points.

Criterion #2--maximum 20 points.

Criterion #3--maximum 20 points.

Evaluation criteria 4-8 together will be worth a total of 40

points. Evaluation criteria 4-8 will be weighed equally.

Selection Procedures

Each application will receive an independent, objective review by a

panel qualified to evaluate the applications submitted under the

program. The Review Panel, consisting of at least three people, will

review all applications based on the criteria stated above. The Review

Panel will identify and rank the top ten proposals and make

recommendations to the Assistant Secretary for Trade Development

concerning which of the ten should receive awards. The Assistant

Secretary for Trade Development will make the final selection regarding

the funding of applications from the group of ten identified by the

Review Panel.

Other Requirements

(1) Federal Policies and Procedures

Recipients and subrecipients are subject to all Federal laws and

Federal and DOC policies, regulations, and procedures applicable to

Federal financial assistance awards.

(2) Past Performance

Unsatisfactory performance under prior Federal awards may result in

an application not being considered for funding.

(3) Preaward Activities

If applicants incur any costs prior to an award being made, they do

so solely at their own risk of not being reimbursed by the Government.

Notwithstanding any verbal or written assurance that they may have

received, there is no obligation on the part of the Department of

Commerce to cover preaward costs.

(4) No Obligation for Future Funding

If an application is selected for funding, the Department of

Commerce has no obligation to provide any additional future funding in

connection with that award. Renewal of an award to increase funding or

extend the period of performance is at the total discretion of the

Department of Commerce.

(5) Delinquent Federal Debts

No award of Federal funds shall be made to an applicant who has an

outstanding delinquent Federal debt until either:

i. The delinquent account is paid in full,

ii. A negotiated repayment schedule is established and at least one

payment is received, or

iii. Other arrangements satisfactory to the DOC are made.

(6) Name Check Review

All non-profit and for-profit applicants are subject to a name

check review process. Name checks are intended to reveal if any key

individuals associated with the applicant have been convicted of or are

presently facing criminal charges such as fraud, theft, perjury, or

other matters which significantly reflect on the applicant's management

honesty or financial integrity.

(7) Primary Applicant Certifications

All primary applicants must submit a completed Form CD-511,

``Certifications Regarding Debarment, Suspension and Other

Responsibility Matters; Drug Free Workplace Requirements and

Lobbying,'' and the following explanations are hereby provided:

i. Nonprocurement Debarment and Suspension

Prospective participants (as defined at 15 CFR part 26, section

105) are subject to 15 CFR part 26, ``Nonprocurement Debarment and

Suspension'' and the related section of the certification form

prescribed above applies;

ii. Drug-Free Workplace

Grantees (as defined at 15 CFR part 26, section 605) are subject to

15 CFR part 26, subpart F, ``Governmentwide Requirements for Drug-Free

Workplace (Grants)'' and the related section of the certification form

prescribed above applies;

iii. Anti-Lobbying

Persons (as defined at 15 CFR part 28, section 105) are subject to

the lobbying provisions of 31 U.S.C. 1352, ``Limitations on use of

appropriated funds to influence certain Federal contracting and

financial transactions,'' and the lobbying section of the certification

form prescribed above applies to applications/bids for grants,

cooperative agreements, and contracts for more than $100,000, and loans

and loan guarantees for more than $150,000, or the single family

maximum mortgage limit for affected programs, whichever is greater; and

iv. Anti-Lobbying Disclosures

Any applicant that has paid or will pay for lobbying using any

funds must submit an SF-LLL, ``Disclosure of Lobbying Activities,'' as

required under 15 CFR part 28, appendix B.

(8) Lower Tier Certifications

Recipients shall require applicants/bidders for subgrants,

contracts, subcontracts, or other lower tier covered transactions at

any tier under the award to submit, if applicable, a completed Form CD-

512, ``Certifications Regarding Debarment, Suspension, Ineligibility

and Voluntary Exclusion-Lower Tier Covered Transactions and Lobbying''

and disclosure form, SF-LLL, ``Disclosure of Lobbying Activities.''

Form CD-512 is intended for the use of recipients and should not be

transmitted to the Department of Commerce. SF-LLL submitted by any tier

recipient or subrecipient should be submitted to the Department of

Commerce in accordance with the instructions contained in the award

document.

(9) False Statements

A false statement on an application is grounds for denial or

termination of funds and grounds for possible punishment by a fine or

imprisonment as provided in 18 U.S.C. 1001.

(10) Intergovernmental Review

Applications under this program are not subject to Executive Order

12372, ``Intergovernmental Review of Federal Programs.''

(11) Requirement to Buy American-Made Equipment or Products

Applicants are hereby notified that any equipment or products

authorized to be purchased with funding provided under this program

must be American-made to the maximum extent feasible in accordance with

Public Law 103-121, sections 606 (a) and (b). Adequate justifications

will be required for any proposed purchases of equipment or products

that are not American-made.

Classification

This notice has been determined to be not significant for purposes

of Executive Order 12866. The standard forms reference in this notice

are cleared under OMB Control No. 0348-0043, 0348-0044, 0348-0040, and

0348-0046 pursuant to the Paperwork Reduction Act.

Dated: April 20, 1994.

Jerome S. Morse,

Director, Resource Management and Planning Staff, Trade Development.

[FR Doc. 94-10064 Filed 4-25-94; 8:45 am]

BILLING CODE 3510-DR-P