Consortia of American Businesses in the Newly Independent States Announcement of Availability of Funds; Notice

DEPARTMENT OF COMMERCE

International Trade Administration

[940531-4131]

Consortia of American Businesses in the Newly Independent States

Announcement of Availability of Funds

AGENCY: International Trade Administration, Commerce.

ACTION: Notice.

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SUMMARY: This is a notice of availability of Federal funds for the

Consortia of American Businesses in the Newly Independent States

(CABNIS) program to assist U.S. firms in establishing a commercial

presence in the former Soviet Union. CABNIS is a program designed to

assist U.S. firms in establishing a commercial presence in the Newly

Independent States of the former Soviet Union (NIS). Through CABNIS

funding, non-profit organizations form business consortia to promote

the sale of U.S. goods and services in the NIS. The participants in

such CABNIS consortia are for-profit U.S. firms interested in trade

with the NIS. CABNIS recipients establish consortia offices and staff

in the NIS to provide a broad range of services for their for-profit

member firms, including market research; sales promotion; communication

of sales, joint venture and investment opportunities; identification of

and introduction to potential buyers and trade contacts; staging trade

and technical missions and seminars; provision or arrangement of

necessary legal services; and other export trade facilitation services.

Through the CABNIS program, Federal funds are awarded as seed money to

help pay the start-up costs of establishing and operating U.S.

consortia offices in the NIS. A CABNIS consortium can be organized

along a single industry line or represent more than one business

sector. There is no limitation on the number of for-profit firms that a

consortium may represent.

DATES: Competitive Application Kits (Application Kit #410-3172) will be

available from Commerce starting May 24, 1994. Applications are to be

received at the address designated in the Application Kit no later than

3PM E.D.T. July 7, 1994.

ADDRESSES: To obtain a copy of the Application Kit #410-3172, please

send a written request with two self-addressed mailing labels to Ms. W.

Dawn Busby, Director, Office of Export Trading Company Affairs, room

1800 HCHB, U.S. Department of Commerce, 14th and Constitution Avenue,

NW., Washington, DC 20230. Only written requests will be honored;

telephone, fax, or walk-in requests will not be accepted. Only one copy

of the Application Kit will be mailed promptly to each organization

requesting it, but it may be reproduced by the requester.

FOR FURTHER INFORMATION CONTACT: For further information, contact Ms.

Heather Moxon, Office of Export Trading Company Affairs at the above

address or at telephone (202) 482-5004.

SUPPLEMENTARY INFORMATION:

Program Authority: Section 303(b)(4) of the FREEDOM Support Act,

22 U.S.C. 5823(b)(4).

Program Objectives: CABNIS consortia are intended to strengthen the

U.S. business presence in the NIS. They will provide direct trade

facilitation support for their member firms, stimulating increased U.S.

exports to the NIS. The consortia will be expected to support host

country private sector development through assistance with finding

markets for NIS products, promoting U.S. investment and U.S.-NIS joint

ventures, providing technical training, and/or identifying and

assisting with defense plant conversion projects.

Funding Availability: Funding for the program will be provided by

the U.S. Department of Commerce, International Trade Administration

(ITA). The total amount of ITA Federal assistance funds available for

CABNIS is $1.5 million for FY 1994. Commerce anticipates awarding a

minimum of three awards prior to the end of FY 1994.

Funding Instrument and Project Duration: The funding instrument

will be a grant. The Federal funding contribution will not exceed 50

percent of proposed allowable project costs with a maximum funding

amount of $500,000 per grantee. Applicants must commit non-Federal

resources (cash and/or in-kind contribution) to match the remaining

share of project costs. The award period will be up to three years.

Eligibility: Eligible applicants for Federal assistance through the

CABNIS program are private and public non-profit U.S. organizations

that will represent the commercial interests of U.S. firms in

furthering trade and economic relations with the NIS. Applicants should

be able to show that there exists within the organization proven

experience in trade and economic relations with the NIS. Only

applicants proposing to open an office in one or more of the following

Newly Independent States are eligible for CABNIS assistance: Armenia,

Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan,

Turkmenistan, Ukraine, and Uzbekistan.

Membership in a consortium must be available on a non-

discriminatory basis. For example, membership in a trade association

cannot be a requirement for membership in a consortium.

Selection Procedures: Each application will receive an independent,

objective review by one or more review panels qualified to evaluate the

applications submitted under the program. The review panel(s) will

evaluate all applications on a competitive basis, in accordance with

the evaluation criteria below, and make award recommendations to the

Selecting Official. A minimum of six weeks will be necessary to

complete the evaluation process.

Awards will not necessarily be made to the highest ranked

applicant. The Selection Official shall recommend awards based on the

ranking of applications as determined by the review panel(s),

geographic distribution among those NIS countries identified by CABNIS,

distribution among industry sectors, and the availability of funds.

Preference may also be given to private non-profit applicants.

Evaluation Criteria: Consideration for financial assistance will be

given to those CABNIS proposals that:

1. Demonstrate a realistic work plan detailing how the consortium

will assist proposed U.S. member firms to promote and/or market their

products and services in the NIS. Examples of the types of services

that a consortium can provide include advertising and publicity,

conducting technical and sales seminars, communicating business

opportunities, identifying potential buyers and distributors,

conducting market research, etc. Evidence of marketability of the U.S.

products and/or services to be marketed in the NIS will be taken into

account in evaluating applications.

2. Demonstrate a well-reasoned plan as to how the consortium will

support private sector development in the NIS (e.g., through product

marketing assistance, technical training, investment promotion,

identifying and assisting with defense conversion projects, working

with or helping to form indigenous counterpart trade organizations

[such as trade associations], etc.). Evidence that the consortia

activities in the NIS will be related to the proposed U.S. member

firms' exports will be taken into account in evaluating applications

(e.g., a consortium representing U.S. suppliers of medical equipment

and supplies may choose to work with host country industry groups and

arrange for training in western-style hospital administration and

health services, bring technical trade missions to the U.S., and/or

encourage U.S.-NIS business ventures for the joint production of

medical equipment and supplies).

3. Are proposed by non-profit organizations with the capacity,

qualifications and staff necessary to undertake successfully the

intended activities.

In addition, priority consideration will be given to applications

that:

4. Demonstrate the capability and intent of enlisting small and

mid-sized U.S. firms as members of the consortium.

5. Provide a reasonable assurance that the proposed project can be

continued on a self-sustained basis after expiration of the Federal

award.

6. Present a reasonable and realistic, itemized budget for the

proposed activities and reflect an appropriate balance between program

support (e.g., establishing a commercial office in the NIS, providing

export trade services to U.S. firms, conducting on-site conferences,

seminars, etc.) and operational expenses (e.g., personnel salaries,

consulting fees, domestic travel, overhead, etc.).

Evaluation criteria factors 1 through 3 will be weighted equally

and will take precedence over priority consideration factors 4 through

6. Priority consideration factors 4 through 6 will be weighted equally.

The Newly Independent States of the former Soviet Union share a

demand for U.S. equipment, instrumentation, services, and technology

(e.g., products, services and technology related to aerospace,

agriculture, banking systems, defense conversion, distribution systems,

energy [including mining and oil and gas fields], machine tools, and

medical and pharmaceutical industries). Some NIS locations, however,

demand products and services unique to their region (e.g., mining, oil

and gas field equipment). Countries eligible for consideration are:

Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia,

Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

Other Requirements: All applicants are advised of the following:

1. Delinquent Federal Debts: No award of Federal funds shall be

made to an applicant who has an outstanding delinquent Federal debt

until either the delinquent account is paid in full, a negotiated

repayment schedule is established and at least one payment is received,

or other arrangements satisfactory to the Department of Commerce are

made.

2. 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: Nonprocurement Debarment and Suspension: Prospective

participants (as defined at 15 CFR Part 26, Section 105) are subject to

15 CFR Part 26, ``Governmentwide Debarment and Suspension

(Nonprocurement)'' and the related section of the certification form

prescribed above applies.

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.

Anti-Lobbying: Persons (as defined at 15 CFR 28, Section 105) are

subject to the lobbying provisions of 31 U.S.C. 1352, ``Limitation 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

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.

3. 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.

4. False Statements: A false statement on the 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.

5. 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.

6. Past Performance: Unsatisfactory performance under prior Federal

awards may result in an application not being considered for funding.

7. 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 pre-award costs.

8. 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.

9. Federal Policies and Procedures: Award Recipients and

subrecipients are subject to all applicable Federal laws and Federal

and Department of Commerce policies, regulations, and procedures

applicable to Federal financial assistance awards.

10. Indirect Cost Rates: If applicable, 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.

11. Purchase of American-Made Equipment and 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).

12. Intergovernmental Review: Applications under this program are

not subject to Executive Order 12372, ``Intergovernmental Review of

Federal Programs.''

13. Catalog of Federal Domestic Assistance Number: A Catalog of

Federal Domestic Assistance number is not available for the Department

of Commerce's Consortia of American Businesses in the Newly Independent

States program.

Dated: May 19, 1994.

W. Dawn Busby,

Director, Office of Export Trading Company Affairs.

[FR Doc. 94-12654 Filed 5-23-94; 8:45 am]

BILLING CODE 3510-DR-P