Cooperative Agreement Revised Procedures

DEPARTMENT OF DEFENSE

Defense Logistics Agency

Cooperative Agreement Revised Procedures

Agency: Defense Logistics Agency (DLA).

ACTION: Cooperative Agreements Proposed Revised Procedures.

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summary: This proposed revised procedure implements Title 10, United

States Code, Chapter 142, as amended, which authorizes the Secretary of

Defense, acting through the Director, Defense Logistics Agency (DLA),

to enter into cost sharing cooperative agreements to support

procurement technical assistance programs established by state and

local governments, private nonprofit organizations, Tribal

organizations, and Indian-owned economic enterprises. Subpart III of

this issuance establishes the proposed administrative procedures to be

implemented by DLA to enter into such agreements for this purpose.

Dates: Comments will be accepted until 31 January 1995. Proposed

effective date: 15 February 1995.

For further informaton contact: Mr. Sim Mitchell, Program Manager,

Office of Small and Disadvantaged Business Utilization (AQAU), Defense

Logistics Agency, Cameron Station, Alexandria, VA 22304-6100, Telephone

(703) 274-6471.

Sim C. Mitchell,

Program Manager, Office of Small and Disadvantaged Business

Utilization.

I. Background Information

The Procurement Technical Assistance (PTA) Cooperative Agreement

Program was established by the Fiscal year (FY) 1985 Department of

Defense (DoD) Authorization Act, Public Law 98-525. The Public Law

amended Title 10, United States Code (USC), by adding Chapter 142.

Title 10, USC, as amended, continues to authorize the Secretary of

Defense, acting through the Director, Defense Logistics Agency (DLA),

to enter into cost-sharing cooperative agreements to support PTA

programs established by eligible entities.

DoD's efforts to increase competition in the private sector have

been supplemented by many state and local governments, and other

entities that operate PTA programs. The DoD PTA Cooperative Agreement

Program provides assistance to eligible entities by sharing the cost of

establishing new and/or maintaining existing PTA programs.

The FY 95 DoD Authorization Act authorized a total of $12 million

to support the Program during FY 95. Of this total, $600,000 is

available for American Indian programs only.

Limitations placed on these funds are:

a. DoD's share of an eligible entity's net program cost shall not

exceed 50%, unless the eligible entity proposes to cover a distressed

area. If the eligible entity proposes to cover a distressed area, the

DoD share may be increased to an amount not to exceed 75%. In no event

shall DoD's share of net program cost exceed $150,000 for programs

providing less than statewide coverage or $300,000 for programs

providing statewide coverage.

b. For the American Indian program, DoD's share of net program cost

shall not exceed 75% or $150,000, whichever is less, for programs

providing services on reservations within one Bureau of Indian Affairs

(BIA) service area. For programs providing services to 100% of the

reservations located within one BIA service area and at least 50% of

the reservations located within another BIA service area (multi-area

coverage), DoD's share of net program cost shall not exceed 75% or

$300,000, whichever is less.

c. No funds available to DoD may be provided by grant or contract

to any institution of higher education that has a policy of denying, or

which effectively prevents, the Secretary of Defense from obtaining for

military recruiting purposes--

1. entry to campuses or access to students (individuals who are 17

years of age or older) on campuses; or

2. access to directory information pertaining to students.

The purpose of the proposed revised procedure is to make available

to all eligible entities the prerequisites, policies and procedures

that will govern the award of cooperative agreements by DLA. Also, this

procedure establishes the guidelines that will govern the

administration of cooperative agreements.

Although this procedure will affect all eligible entities desiring

to enter into a DLA awarded cooperative agreement, DLA has determined

that this procedure does not involve a substantial issue of fact or

law, and that it is unlikely to have a substantial or major impact on

the Nation's economy or large numbers of individuals or businesses.

This determination is based on the fact that the proposed cooperative

agreement procedure implements policies already published by the Office

of Management and Budget (OMB) pursuant to Title 31, USC, Chapter 63,

Using Procurement Contracts and Grants and Cooperative Agreements. In

addition, DLA cooperative agreements will be entered into pursuant to

the authorities and restrictions contained in the annual DoD

Authorization and Appropriation Acts. Therefore, public hearings were

not conducted.

II. Other Information

The language contained in the current cooperative agreement

procedure limited the period of coverage to the FY 94 Program in that

it addressed the FY 94 Authorization Act requirements in specific

terms, including the exact dollar amounts of funding applicable to the

Program. This proposed revision to the procedure will provide general

guidance for cooperative agreements entered into by the DLA and will

become a permanent document for the duration of the FY 95 Program.

Comments are invited on the procedure. Comments should be submitted

to DLA, Office of Small and Disadvantaged Business Utilization, ATTN:

AQAU, Cameron Station, Alexandria, VA 22304-6100. Comments received

after 31 January 1995 may not be considered in formulating revisions to

the Procedure.

III. Proposed Revision to DLA Procedure--Cooperative Agreements

3-1 Policy

A. Proposals for cooperative agreements are obtained through the

issuance of a DLA solicitation for cooperative agreement proposals

(hereafter referred to as a SCAP). The contents of this procedure shall

be incorporated, in whole or in part, into the SCAP to establish

administrative requirements to execute and administer DLA awarded

cooperative agreements. The SCAP may include additional administrative

requirements that are not included herein.

B. The SCAP is issued by the PTA Cooperative Agreement Program

Manager (hereafter referred to as Program Manager) of the DLA Office of

Small and Disadvantaged Business Utilization. The Program Manager will

respond to any SCAP questions that may arise.

C. Only one proposal will be accepted from a single eligible

entity. An entity that submits more than one proposal, or is listed as

a subagreement applicant in another entity's proposal will not be

considered for an award.

D. Proposals will not be accepted from applicants that apply as

coequal partners or joint ventures. Only one organization can take the

lead and primary responsibility for the proposed program. In other

words, only one eligible entity can submit a proposal.

E. Proposals will not be accepted from applicants who propose to

provide less than county or equivalent (i.e., parish, borough)

coverage. For example, if an applicant proposes to service any part of

a country or equivalent, the applicant must service the entire county

or equivalent.

F. Cooperative agreements will be awarded on a competitive basis

consistent with the SCAP. It is DLA's policy to encourage fair and open

competition when awarding cooperative agreements.

G. Letters of support and recommendation from Members of Congress

are not necessary and will not be considered in the evaluation and

selection of proposals to receive cooperative agreement awards.

H. The SCAP shall be given the widest practical dissemination. It

will be made available to all known eligible entities and to those that

request copies after its issuance. All eligible entities interested in

submitting a proposal under the SCAP will be invited to participate in

a preproposal conference. Preproposal conferences will be held at the

locations designated in the SCAP, approximately 30 calendar days prior

to the SCAP's closing date.

I. The SCAP shall not be considered to be an offer made by DoD. It

will not obligate DoD to make any awards under this Program.

J. If selected for an award, the applicant is bound to perform the

services described in its proposal when the proposal is incorporated

into the cooperative agreement award document.

K. DoD is not responsible for any monies expended or expenses

incurred by applicants prior to the award of a cost-sharing cooperative

agreement. However, actual travel expenses incurred by FY 95 award

recipients to participate in a FY 95 preproposal and/or postaward

conference may be reimbursed under the FY 95 cooperative agreement

award subject to the provisions of the applicable cost principles.

L. The award of a cooperative agreement under this Program shall

not, in any way, obligate DoD to enter into a contract or give

preference for the award of a contract to a business or firm which is

or becomes a client of a DLA cooperative agreement recipient.

M. Cooperative agreement recipients must give special emphasis to

assisting small disadvantaged business (SDB) firms that participate or

aspire to participate in DoD prime and subcontracting opportunities. A

concerted effort must be made by recipients to identify SDB firms and

provide them with marketing and technical assistance, particularly

where such firms are referred for assistance by a DoD component, other

Federal agencies, and state and/or local governments.

N. Award recipients are not required to obtain or retain private,

profit and/or nonprofit consultants to support the Program. Any

subcontract costs being proposed for consulting services shall not

exceed 10% of total program cost for the general program or 25% of

total program cost under the American Indian program. Proposals

containing subcontracting costs for consultant services in excess of

10% of total program cost for the general program and 25% of total

program cost for the American Indian program, will be rejected.

O. Reasonable quantities of government publications, such as

``Selling to the Military,'' may be furnished to award recipients at no

cost, subject to availability. All requests for such publications must

be submitted to the cognizant Deputy for Small Business.

P. Each cooperative agreement recipient's area of performance will

be limited to the county(ies) or equivalent specified in its

cooperative agreement award. Recipients may voluntarily service clients

outside their area of performance provided that the client's location

is not being serviced by another PTA recipient. For the American Indian

program, the recipient's area of performance will be limited to the

reservation(s) specified in its cooperative agreement.

Q. For the American Indian program, if a tribal organization is to

perform services benefiting other Indian tribe(s), written approval

must be obtained by the eligible entity from each Indian tribe it plans

to service. Approval will consist of a written statement (signed by a

responsible official authorized to legally bind the Indian tribe it

plans to service) indicating that the Indian tribe approves and agrees

to accept the services to be provided by the tribal organization.

R. Cooperative agreement awards shall not be made to entities

listed in the General Services Administration's (GSA) ``Lists of

Parties Excluded from Federal Procurement or Nonprocurement Programs.''

Cooperative agreements will not be awarded to entities who employ any

person listed in GSA's ``Lists of Parties Excluded from Federal

Procurement or Nonprocurement Programs.''

S. Proposals submitted in response to the SCAP shall cover a 12-

month period. A proposal that covers less than 12 months will not be

evaluated or otherwise considered for an award.

T. To be considered during the evaluation process, part-time PTA

program employees must be employed by the PTA program a minimum of

three calendar months per year. Time employed may be performed

continuously or incrementally during the 12-month period.

U. Cooperative agreement recipients shall not purchase non-

expendable tangible personal property with a delivery date later than

270 days after the beginning of the cooperative agreement's effective

period. Cost of non-expendable tangible personal property delivered 271

days or later after the beginning of the cooperative agreement's

effective period will be disallowed.

V. Cooperative agreement recipients will be authorized to use GSA's

subscription schedules. Usage will be limited to subscription services

only.

W. Cooperative agreement recipients are required to provide

information to their clients relating to the objectives of the

Government's Electronic Commerce/Electronic Data Interchange

initiatives which are as follow:

1. Exchange procurement information such as solicitations, offers,

contracts, purchase orders, invoices, payments, and other contractual

documents electronically between the private sector and the Federal

government to the maximum practicable extent;

2. Provide businesses, including small, small disadvantaged, and

women-owned businesses with greater access to Federal procurement

opportunities;

3. Ensure that potential suppliers are provided simplified access

to the Federal government's electronic commerce system;

4. Employ nationally and internationally recognized data formats

that serve to broaden and ease the electronic interchange of data.

(These formats are the ANSI ASC X-12 and UNEDIFACT formats).

5. Use agency and industry systems and networks to enable the

Government and potential suppliers to exchange information and access

Federal procurement data.

X. The recipient may add funds to its program after all program

funds are properly expended and before expiration of the cooperative

agreement's effective period. In the event funds are added to the

program, the reimbursable ratio will not be affected and the funds will

not require allocation by object class category. However, total funds

expended during the effective period must be reported on the DLA Form

1806, PTA Cooperative Agreement Performance Report. The expenditure of

additional funds shall be made in accordance with the applicable cost

principles.

Y. If the applicant charges or plans to charge a fee or service

charge for PTA given to clients, or receives any other income as a

result of operating the PTA program, the amount of such reimbursement

must be added to total program cost.

3-2 Scope

This procedure implements Title 10, USC, Chapter 142, as amended,

and establishes procedure and guidelines for the award and

administration of cost-sharing cooperative agreements entered into

between DLA and eligible entities. Under these agreements, financial

assistance provided by DoD to recipients will cover the DoD share of

the cost of establishing new and/or maintaining existing PTA programs

which furnish PTA to business entities.

3-3 Definitions

The following definitions apply for the purpose of this procedure.

A. Act. The enabling legislation that authorizes the establishment

and continuation of the PTA Cooperative Agreement Program each fiscal

year.

B. Administrative Grants Officer (AGO). An official with the

authority to administer grants or cooperative agreements consistent

with the authority delegated by the Grants Officer.

C. Agency. A field office, of one of the twelve service areas, as

published by the Bureau of Indian Affairs (BIA), US Department of the

Interior.

D. American National Standards Institute (ANSI) Standard. A

document published by ANSI that has been approved through the consensus

process of public announcement and review. Each of these standards must

have been developed by an ANSI committee and must be revisited by that

committee within five years for update.

E. Cash contributions. The recipient's cash outlay, including the

outlay of money contributed to the recipient by third parties.

F. Civil jurisdiction. All cities with a population of at least

25,000 and all counties. Townships of 25,000 or more population are

also considered as civil jurisdictions in four States (Michigan, New

Jersey, New York, and Pennsylvania). In Connecticut, Massachusetts,

Puerto Rico and Rhode Island where counties have very limited or no

government functions, the classifications are done for individual

towns.

G. Client. A recognized business entity, including a corporation,

partnership, or sole proprietorship, organized for profit or nonprofit,

which is small or other than small, that has the potential or is

seeking to market its goods and/or services as a prime or subcontractor

to DoD, other Federal agency(ies), state and/or local government(s).

For the American Indian program, the client must be located on a

reservation.

H. Consultant services. Marketing and technical assistance obtained

from private nonprofit and/or profit making individuals, organizations

or otherwise qualified business entities to augment the capabilities of

the PTA center.

I. Cooperative agreement. A binding legal instrument reflecting a

relationship between DLA and the recipient of a cooperative agreement

when the principal purpose of the relationship is to transfer a thing

of value to the recipient to carry out a public purpose of support or

stimulation authorized by a law of the United States instead of

acquiring property or services for the direct benefit or use of the US

Government. Substantial involvement is expected between DLA and the

recipient when carrying out the activity contemplated in the agreement.

J. Cooperative agreement offer/application/proposal. An applicant's

response to the SCAP describing its planned PTA program.

K. Cooperative agreement award recipient. An organization receiving

financial assistance directly from DLA to carry out a PTA program.

Awards will only be made to legal entities recognized under the laws in

the State in which the entity is organized.

L. Cost-matching or sharing. The portion of project or program

costs not borne by the Federal Government.

M. Counseling session. A documented counseling session (telephone

call, correspondence or personal discussion) held with a business firm/

client, where professional guidance is provided to assist the client in

marketing its goods and/or services to DoD, other Federal agencies, and

state and local governments. This includes, but is not limited to,

providing advice and assistance such as:

1. Assisting business firms by providing marketing and technical

assistance in selling their goods and/or services to DoD, other Federal

agencies, and state and local governments;

2. Assisting with understanding specifications;

3. Preparing applicants to be placed on solicitation mailing lists;

4. Preparing offers;

5. Providing postaward assistance in areas such as production,

quality system requirements, finance, engineering, transportation and

packaging; and

6. Providing information to business firms/clients on the DoD

Mentor-Protege Pilot Program; Defense Conversion, Reinvestment and

Transition Assistance Act of 1992; The Metric Conversion Act;

Electronic Commerce/Electronic Data Interchange (EC/EDI); and Total

Quality Management (TQM).

The distribution of publications, specifications, bid matches or

simply referring business firms/clients to another source for advice or

assistance is not a counseling session.

N. Direct cost. Any cost that can be identified specifically with a

particular final cost objective. No final cost objective shall have

allocated to it as a direct cost any cost if other costs incurred for

the same purpose, in like circumstances, have been included in any

indirect cost pool to be allocated to that or any other final cost

objective.

O. Distressed area. The geographical area to be serviced by an

eligible entity in providing PTA to business firms physically located

within an area that:

1. Has a per capita income of 80% or less of that State's average;

2. Has an unemployment rate that is one percent greater than the

national average for the most recent 24-month period in which

statistics are available; or

3. Is a ``reservation'' which includes Indian reservations, public

domain Indian allotments, former Indian reservations in Oklahoma, and

land held by incorporated Native groups, regional corporations, and

village corporations under the provisions of the Alaska Native Claims

Settlement Act.

P. Duplicate coverage. A situation caused by two or more applicants

offering to provide marketing and technical assistance to clients

located within the same county(ies) or equivalent.

Q. Electronic Commerce (EC). The conduct of administration,

finance, logistics, procurement and transportation between the

Government and private industry using an integrated automated

information environment to interchange business transactions.

R. Electronic Data Interchange (EDI): The computer-to-computer

electronic transfer of business transaction information in a public

standard formatted messages through use of a value added network (VAN).

S. Eligible entities. Organizations qualifying to submit a proposal

as follows:

1. General program:

a. State government. Any of the several states of the United

States, the District of Columbia, the Commonwealth of Puerto Rico, any

territory or possession of the United States, or any agency or

instrumentality of a State, exclusive of local governments. The term

does not include any public and Indian housing agency under the US

Housing Act of 1937.

b. Local government. A county, municipality, city, town, township,

local public authority (including any public and Indian Housing agency

under the US Housing Act of 1937), school district, special district,

intrastate district, council of governments (whether or not

incorporated as a nonprofit corporation under State law), any other

regional or interstate government entity (such as regional planning

agencies), or any agency or instrumentality of a local government. The

term does not include institutions of higher education and hospitals.

c. Private, nonprofit organizations. A business entity organized

and operated exclusively for charitable, scientific, or educational

purposes, of which no part of the earnings inure to the benefit of any

private shareholder or individual, of which no substantial part of the

activities is carrying on propaganda or otherwise attempting to

influence legislation or participating in any political campaign on

behalf of any candidate for public office, and which are exempt from

Federal income taxation under section 501 of the Internal Revenue Code.

2. American Indian Program:

a. Indian Economic enterprise. Any Indian-owned (as defined by the

Secretary of the Interior) commercial, industrial, or business activity

established or organized, whether or not such economic enterprise is

organized for profit or nonprofit purposes: Provided, That such Indian

ownership shall constitute not less than 51 per centum of the

enterprise.

b. Tribal organization. The recognized governing body of any Indian

tribe; any legally established organization of Indians which is

controlled, sanctioned, or chartered by such governing body, or which

is democratically elected by the adult members of the Indian community

to be served by such organization and which includes the maximum

participation of Indians in all phases of its activities: Provided,

That in any case where a cooperative agreement is made to an

organization to perform services benefiting more than one Indian tribe,

the approval of each such Indian tribe shall be a prerequisite to the

letting or making of such cooperative agreement.

T. Existing program. Any PTA program that had a cooperative

agreement with DLA for any two years subsequent to FY 88.

U. Federal funds authorized. The total amount of Federal funds

obligated by the Federal government for use by the recipient.

V. Follow-up counseling session. A counseling session held with a

client subsequent to the initial counseling session.

W. Grants officer. An official with the authority to enter into,

administer, and/or terminate grants or cooperative agreements.

X. Indian. Any person who is a member of any Indian tribe, band,

group, pueblo, or community which is recognized by the Federal

Government as eligible for services from the BIA and any ``Native'' as

defined in the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et

seq.].

Y. Indian organization. The recognized governing body of any Indian

tribe; any legally established organization of Indians which is

controlled, sanctioned, or chartered by such governing body, or which

is democratically elected by the adult members of the Indian community

to be served by such organization and which includes the maximum

participation of Indians in all phases of its activities.

Z. Indian tribe. Any Indian tribe, band, group, pueblo, or

community, including Native villages and Native groups (including

corporations organized by Kenai, Sitka, and Kodiak) as defined in the

Alaska Native Claims Settlement Act [43 USC Section 1601 et seq.],

which is recognized by the Federal Government as eligible for services

from the Bureau of Indian Affairs.

AA. Indirect cost. Any cost not directly identified with a single

final cost objective, but identified with two or more final cost

objectives or an intermediate cost objective. An indirect cost is not

subject to treatment as a direct cost.

AB. Initial counseling session. The first counseling session held

with a business firm. The initial counseling session may determine that

the business firm has no potential to do business with a government

agency.

AC. In-kind contributions/donations. The value of noncash

contributions provided by the eligible entity and non-Federal parties

to the PTA Program. Only when authorized by Federal legislation may

property or services purchased with Federal funds be considered as in-

kind contributions/donations. In-kind contributions/donations may be in

the form of charges for real property and nonexpendable personal

property and the value of goods and services directly benefiting and

specifically identifiable to the project or program.

AD. Integrated automated information environment. Computer-to-

computer exchange of public standard formatted messages through use of

a VAN.

AE. Multi-area coverage. A PTA program that proposes to service

100% of the reservations located within one BIA service area and at

least 50% of the reservations located within another BIA service area.

AF. Net program cost. The total program cost (includng all

authorized sources) less any program income and/or other Federal funds

not authorized to be shared.

AG. Networking. A method of providing assistance throughout the

area to be serviced. Examples include:

1. Locating assistance offices in area of industrial concentration;

2. Establishing data links with other organizations; and

3. Creating data exchanges.

AH. New start. An eligible entity that is not an existing program.

AI. Other Federal funds. Federal funds provided by Federal

agency(ies) other than the DoD PTA Cooperative Agreement Program. When

authorized by statute, Federal funds received from other sources,

including grants, may be used as cost-sharing and/or matching

contributions.

AJ. Outlays/expenditures. Represent charges made to the PTA

program. They may be reported on a cash or accrual basis.

1. Cash basis. For reports prepared on a cash basis, outlays are

the sum of:

a. Cash disbursements for direct charges for goods and services;

b. The amount of indirect expense charged;

c. The value of in-kind contributions/donations applied; and

d. The amount of cash advances and payments made to subrecipients.

2. Accrual basis. For reports prepared on an accrual basis, outlays

are the sum of:

a. Cash disbursements for direct charges for goods and services;

b. The amount of indirect expense incurred;

c. The value of in-kind contributions/donations applied:

d. The net increase (or decrease) in the amounts owed by the

recipient for goods and other property received, for services performed

by employees, contractors, subrecipients and other payees; and

e. Other amounts becoming owed under programs for which no current

services or performance are required.

AK. Per capita income. The estimated average amount per person of

total money income received during a calendar year for all persons

residing in a given political jurisdiction as published by the US

Department of Commerce, Bureau of the Census.

AL. Prior approval. A written approval by the GO/AGO evidencing

prior consent.

AM. Procurement Technical Assistance (PTA) Cooperative Agreement

Program. A program organized to generate employment and improve the

general economy of a locality by assisting business firms in obtaining

and performing under Federal, state and local government contracts.

AN. Program income. The gross income received by the recipient or

subrecipient from cooperative agreement supported activities. Program

income includes fees from services performed, or from the use or rental

of property acquired with cooperative agreement funds. Except as

otherwise provided in statute or regulations of the Federal agency,

program income does not include interest earned on advances of grant or

subgrant funds, or rebates, credits, discounts, refunds, etc., or

interest earned on any of them.

AO. Public Standard Format. A data exchange format which includes

the ANSI format ASC X-12 and/or the United Nations Electronic Data

Interchange for Administration, Commerce and Transport (UNEDIFACT).

AP. Reservation. Includes Indian reservations, public domain Indian

allotments, former Indian reservations in Oklahoma, and land held by

incorporated Native groups, regional corporations, and village

corporations under the provisions of the Alaska Native Claims

Settlement Act [43 U.S.C.A., Section 1601 et seq.].

AQ. Service area. Any one of twelve area offices, as published by

the US Department of the Interior, BIA, to include: Aberdeen,

Albuquerque, Anardako, Billings, Eastern, Juneau, Minneapolis,

Muskogee, Navajo, Phoenix, Portland and Sacramento.

AR. Small business (SB). As used in this solicitation, a business,

including its affiliates, that is independently owned and operated, not

dominant in the field of operation in which it is bidding on Government

contracts, and qualified as SB under the criteria and size standards in

13 CFR 121.

AS. Small disadvantaged business (SDB). As used in this

solicitation, a SB concern that is at least 51 percent unconditionally

owned by one or more individuals who are both socially and economically

disadvantaged, or a publicly owned business that has at least 51

percent of its stock unconditionally disadvantaged individuals and that

has its management and daily business controlled by one or more such

individuals. This term also means a SB concern that is at least 51

percent unconditionally owned by an economically disadvantaged Indian

tribe or Native Hawaiian organization, or publicly owned business that

has at least 51 percent of its stock unconditionally owned by one of

these entities, that has its management and daily business controlled

by members of an economically disadvantaged Indian tribe or Native

Hawaiian organization and that meets the requirements of 13 CFR 124.

AT. Solicitation for cooperative agreement proposals (SCAP). A

document issued by DLA containing provisions and evaluation factors

applicable to all applicants which apply for a PTA cooperative

agreement.

AU. Statewide coverage. A PTA program which proposes to service at

least 50% of a State's counties or equivalent and 75% of the State's

labor force.

AV. Subrecipient. The legal entity to which a written subagreement

is awarded and which is accountable to the recipient of the cooperative

agreement for the use of the PTA program funds for providing PTA to

business firms/clients.

AW. Third party in-kind contributions. The value of non-cash

contributions provided by non-Federal third parties. Third party in-

kind contributions may be in the form of real property, equipment,

supplies and other expendable property, and the value of goods and

services directly benefiting and specifically identifiable to the

project or program.

AX. Total program cost. All allowable costs as set forth in OMB

Circular A-21, A-87, and A-122, as applicable.

AY. Total program outlays. All the charges made to the PTA program.

These charges include cash disbursements for direct charges for goods

and services, the amount of indirect expense charged, the value of in-

kind contributions/donations applied, and the net increase (or

decrease) in the amounts owed by the recipient for goods and other

property received for services performed by employees, contractors and

other payees, and other amounts becoming owed under programs for which

no current services or performances are required.

AZ. Total quality management (TQM). Total quality is a philosophy

of management which harnesses the creativity of all employees

(management and non-management), in a structured approach to

continuously improving the processes by which products or services are

produced to meet customer requirements and expectations. It is an

integrated system of management with recognizable components which:

acknowledges that the customer defines quality in products or services;

focuses all of the efforts of the enterprise on understanding and

meeting or exceeding customer needs; employs proven tools and

techniques to map and measure processes so that variations can be

reduced, defects can be prevented, and problems can be solved; and

involves and values everyone.

A1. Unliquidated obligations. For financial reports prepared on a

cash basis, unliquidated obligations are the amount of obligations

incurred by the recipient that have not been paid. For reports prepared

on an accrual basis, they are the amount of obligations incurred by the

recipient for which an outlay has not been recorded.

A2. Unobligated balance. The portion of the funds authorized by DLA

that has not been obligated by the recipient. This amount is determined

by deducting the cumulative obligations from the cumulative funds

authorized.

A3. Value added network (VAN). A commercial telecommunications

service provider which passes electronic commerce traffic between a

government entity and a commercial, private sector vendor.

A4. Woman-owned small business (WOB). As used in this solicitation,

a SB that is at least 51 percent owned by a woman or women who are US

citizens and who also control and operate the business.

A5. Workshop for the blind/nonprofit organization employing the

severely disabled. A qualified, nonprofit agency for the blind or

organization employing the severely disabled which produces a commodity

for, or provides a service to, the Government. As used in this SCAP,

these agencies/organizations may be treated as SBs.

3-4 Program Purpose and Requirements

A. The purpose of the PTA Cooperative Agreement Program is to

generate employment and improve the general economy of a locality by

assisting business firms in obtaining and performing under Federal,

state and local government contracts.

B. Each PTA program must meet these minimum requirements:

1. Program Requirements.

a. Have the resources necessary to implement proposed program.

b. Assist business firms with increasing the number of prime and

subcontract awards received.

c. Assist business firms by providing marketing and technical

assistance in selling their goods and services to DoD, other Federal

agencies, and state and local governments.

d. Provide business firms with information on the DoD Mentor-

Protege Pilot Program; Defense Conversion, Reinvestment and Transition

Assistance Act of 1992; The Metric Conversion Act; EC/EDI; and TQM.

e. PTA program manager must be employed by the PTA center on a

full-time basis and salary must be charged to the PTA Cooperative

Agreement Program.

f. Cooperative agreement recipients will have, on file, policies

and procedures applicable to the PTA center's management control and

financial control systems.

g. Resumes (for filled positions) and qualification standards (for

vacant positions) must be on file, and available for review and

verification during on-site performance surveillance reviews.

2. Service Requirements.

a. Procurement Outreach Program. The plan, procedures and resources

for making the business community aware of the PTA Cooperative

Agreement Program, what assistance it offers, and the criteria for a

business firm to become a client.

b. Personnel. Individuals who are qualified to counsel and advise

business firms/clients regarding PTA Cooperative Agreement Program

requirements as they apply to both prime and subcontracts. Personnel

qualifications should relate to the program being offered by the

applicant. Some areas of consideration are:

(1) Procurement policies and procedures;

(2) Marketing techniques and strategies;

(3) Pricing policies and procedures;

(4) Preaward procedures;

(5) Postaward contract administration;

(6) Quality assurance;

(7) Production and manufacturing;

(8) Financing;

(9) Subcontracting;

(10) Bid and proposal preparation;

(11) EC/EDI;

(12) DoD Mentor-Protege Pilot Program;

(13) Defense Conversion, Reinvestment and Transition Assistance Act

of 1992;

(14) The Metric Conversion Act;

(15) TQM; and

(16) Specialized acquisition requirements for such areas as

construction, research and development, and data processing.

c. Counseling Program. The plan, procedures, and resources for

counseling potential or existing clients in marketing their goods and/

or services to DoD, other Federal agencies, and state and local

governments; the publications to be used in such efforts; the

information to be provided to clients during counseling sessions; and

the procedures for documenting counseling efforts.

d. Marketing Opportunity Program. The plan, procedures and

resources for identifying sources and opportunities for clients to

market their goods and/or services to DoD, other Federal agencies, and

state and local governments.

e. Client Information Program. The plan, procedures and resources

for educating clients concerning each of the following: DoD Mentor-

Protege Pilot Program; Defense Conversion, Reinvestment and Transition

Assistance Act of 1992; The Metric Conversion Act; and TQM.

f. EC/EDI Program. The plan, procedures and resources for educating

clients concerning the Government's EC/EDI initiatives which include

using VAN computer-to-computer exchange of routine business

information, such as: solicitations, offers, contracts, purchase

orders, invoices, payments, and other contractual documents,

electronically exchanged between the private sector and the Federal

Government to the maximum extent practicable, using ANSI ASC X-12

Standards.

g. Postaward Assistance Program. The plan, procedures and resources

for educating clients concerning contract postaward functions, such as:

production, quality systems, finance, transportation, packaging,

subcontracting, etc.

h. Contract Award Verification and Client Satisfaction Program.

(1) Contract Award Verification. The plan, procedures and resources

for collecting, documenting and reporting prime and subcontract awards

received by clients due to assistance provided by the award recipient.

The recipient must be capable of segregating data by origin of the

award (DoD, other Federal agency, and state or local governments) and

type and socio-economic status of the business receiving the award (SB,

SDB, WOB, OTSB). In addition, award recipients are required to have on

file for their clients for each reported award, the following:

(a) The number of dollar value for prime and subcontract awards

received by clients;

(b) A signed statement from the client confirming that the prime

and/or subcontract award was obtained as a result of the assistance

provided by the PTA center; and

(c) A means of validating the data.

(2) Client Satisfaction. The plan and procedures for documenting

award recipient's client satisfaction with the assistance provided. As

a minimum, award recipients are required to have on file an annual

client satisfaction survey for each client serviced.

3-5 Procedures

A. The SCAP and evaluation criteria are developed and prepared by

the Program Manager. The SCAP and evaluation criteria are approved by

the Headquarters (HQ) DLA PTA Cooperative Agreement Program Policy

Committee (hereafter referred to as Policy Committee). The Policy

Committee is comprised of representatives from the HQ DLA Directorates

of Acquisition (Offices of Small and Disadvantaged Business

Utilization, Contract Management and Procurement), Corporate

Administration (Office of Congressional Affairs), Comptroller, and

General Counsel (non-voting member).

B. The Policy Committee is the final administrative appeal

authority for disputes and protests.

C. Grants Officer (GO) as used herein refers to the GO assigned to

HQ DLA Office of Small and Disadvantaged Business Utilization.

D. Proposals and revisions received after the deadline for receipt

of proposals, as specified in the SCAP, will not be evaluated unless

evidence is provided by the applicant. Acceptable evidence to support

an otherwise late proposal or revision received after the closing time

and date shall consist of:

1. An original U.S. Post Office receipt for registered or certified

mail showing date of mailing not later than five calendar days before

the date specified for receipt of proposals and revisions; or

2. When sent by U.S. Postal Service Express Mail Next Day Service--

Post Office to Addressee, the date entered by the Post Office receiving

clerk on the ``Express Mail Next Day Service--Post Office to

Addressee'' label and the postmark on the envelope or wrapper and on

the original receipt from the U.S. Postal Service. The postmark date

must be two working days prior to the date specified for receipt of

proposals. The term working days excludes weekends and Federal

holidays. Applicants should request the postal clerk to place a legible

hand cancellation ``bull's-eye'' postmark on both the receipt and

envelope or wrapper.

3. If the proposal or revision is hand delivered, the specific time

and delivery date shall be supported by a receipt given by the GO or

designated representative.

E. The evaluation of proposals and selection of award recipients

resulting from responses to the SCAP shall be conducted as detailed

below:

1. Initial review. The GO will review each proposal received to

determine if the proposal: (i) offers at least a county or equivalent;

(ii) contains sufficient technical, cost, and other information to

permit evaluation; (iii) has been signed by a responsible official

authorized to bind the eligible entity; and (iv) meets the requirements

of the SCAP. If the proposal is removed from further consideration for

an award by the GO, the applicant will be promptly notified of the

reason for removal. The applicant's proposal will be retained with

other unsuccessful proposals by the GO.

a. Proposal classification. The GO will review and verify the

accuracy of the applicant's program status stated in item 8, ``Type of

Application'' of the Standard Form (SF) 424. If the GO considers the

type of application misclassified, the matter will be reviewed with the

applicant. If the applicant and the GO cannot agree, the GO will

determine the proper program categorization based upon the information

contained in the applicant's proposal at the time the solicitation

closed. The GO's decision regarding the program's classification is

final.

b. Minor informalities and mistakes. The GO shall provide an

applicant the opportunity to cure any deficiency resulting from a minor

informality or irregularity contained in the offer or waive the

deficiency, whichever is to the advantage of the Government. A minor

informality or irregularity is one that is merely a matter of form and

not of substance. It also pertains to some immaterial defect in an

offer or variation of an offer from the exact requirements of the

solicitation that can be corrected or waived without being prejudicial

to other applicants. The defect or variation is immaterial when the

effect on program quality is negligible when contrasted with the

program's total cost. Two examples of minor informalities include the

failure of the applicant to: (i) return the required number of copies

of its proposal; and (ii) execute the certifications required by the

SCAP clauses. The GO shall provide an applicant the opportunity to cure

any deficiency resulting from a minor informality or irregularity

contained in the offer or waive the deficiency, whichever is to the

advantage of the Government as follows:

1. In cases of apparent mistakes and in cases where the GO has

reason to believe that a mistake may have been made, the GO shall

request verification from the applicant that the offer ``should read as

stated'' calling attention to the suspected mistake. Any clerical

mistake apparent in the offer may be corrected by the GO. Examples of

apparent mistakes are: (i) obvious misplacement of a decimal point;

(ii) incorrect transposition of numbers; and (iii) obvious mistake in

identifying the program type (existing versus new start program). The

GO shall obtain from the applicant a written verification of the offer

intended.

2. Correction of a mistake by the GO shall be effected by attaching

the verification to the original offer. The GO shall not make

corrections on the applicant's proposal. Corrections shall be restated

in the cooperative agreement award document, if the applicant receives

an award.

3. If an applicant request permission to correct a mistake, and

clear and convincing evidence establishes the existence of the mistake,

the GO may make a determination permitting the applicant to correct the

mistake. However, if this correction would result in displacing one or

more applicants that would otherwise rank higher, such a determination

shall not be made unless the existence of the mistake and the proposed

information actually intended are ascertainable substantially from the

proposal itself.

c. Notification for proposal removal from consideration for an

award. The GO will notify the applicant by certified mail (return

receipt requested) if its proposal is removed from further

consideration for an award.

2. Comprehensive evaluation. Proposals which pass the initial

review are subjected to a comprehensive evaluation. The comprehensive

evaluation is performed by a HQ DLA evaluation panel. A member of the

HQ DLA Directorate of General Counsel will provide legal assistance to

the evaluation panel, as needed. The purpose of the comprehensive

evaluation is to assess the merits of each proposal to determine which

offer the greatest likelihood of achieving the stated Program purpose

and requirements. The evaluation panel will conduct its evaluations in

accordance with stated criteria. Upon completion of the review, the

evaluation panel will submit its results and recommendations to the GO.

3. Duplicate coverage. An applicant's proposal shall not duplicate

more than 25%, on an individual or cumulative basis, any of the

counties or equivalent (for the general program) or any of the

reservations (for the Indian program) proposed by other applicants. The

GO will give selection priority to the applicant that is assigned the

highest total points by the evaluation panel when the GO determines

that two or more applicants are proposing to provide duplicate

coverage. Only one statewide program (under the general program) will

be awarded in a state.

4. Award. The award recommendations are approved by the Program

Manager and executed by the GO.

3-6 Evaluation Factors

A. Proposals received as a result of the SCAP will be grouped as

existing and new start programs based on the information provided in

block 8 of the SF 424, or as determi3nd by the GO.

B. Each group of proposals will be evaluated separately based upon

the evaluation factors specified for the group.

C. Proposal will be evaluated and awards will be made without

discussions with the applicants (except for discussions conducted for

correcting minor informalities, mistakes and clarifications).

D. Evaluation factors, which may be subject to change, for existing

and new start programs are listed below:

1. Existing program service requirements.

a. Past performance and effectiveness.

b. Description.

(1) Types and qualifications of personnel.

(2) Geographic areas the applicant plans to service.

(3) Estimated number and types of clients the applicant plans to

service.

c. Development.

(1) Procurement Outreach Program.

(2) Counseling Program.

(3) Marketing Opportunities Program.

(4) Client Information Program.

(5) Electronic Commerce/Electronic Data Interchange Program.

(6) Postaward Assistance Program.

(7) Contract Award Verification and Client Satisfaction Program.

2. New start program service requirements.

a. Description.

(1) Types and qualifications of personnel.

(2) Geographic areas the applicant plans to service.

(3) Estimated number and types of clients the applicant plans to

service.

b. Development.

(1) Procurement Outreach Program.

(2) Counseling Program.

(3) Marketing Opportunities Program.

(4) Client Information Program.

(5) Electronic Commerce/Electronic Data Interchange Program.

(6) Postaward Assistance Program.

(7) Contract Award Verification and Client Satisfaction Program.

3-7 DoD Funding

A. The FY 95 DoD Authorization Act authorized a total of $12

million to support the PTA Cooperative Agreement Program for FY 95. Of

this total, $600,000 is available for the American Indian program only.

B. For the American Indian program, proposals will be funded to the

extent the $600,000 authorized for this Program will allow. After

selecting the highest ranking proposals for award, any remaining funds,

which may be insufficient to fund the total amount of Federal funds

requested, may be used to make additional award(s). Thus, an applicant

under the American Indian program, may be offered the opportunity to

reduce the amount of Federal funds requested to facilitate receiving an

award. Notwithstanding the reduction in the amount of Federal funds

requested, all other terms and conditions of the applicant's proposal

must remain unchanged.

3-8 Cost-sharing Limitations

A. General program.

1. The DoD share of net program cost shall not exceed 50%, except

in a case where an eligible entity meets the criteria for a distressed

area. When the prerequisite conditions to qualify as a distressed area

are met, the DoD share may be increased to an amount not to exceed 75%.

In no event shall the DoD share of net program cost exceed $150,000 for

programs providing less than statewide coverage or $300,000 for

programs providing statewide coverage.

2. The amount of subcontracting for consultant services provided

directly to cooperative agreement recipients by private nonprofit and/

or profit making individuals, organizations or otherwise qualified

busienss entities is limited to no more than 10% of total program cost.

B. American Indian program.

1. The DoD share shall not exceed 75% of net program cost or

$150,000 for a program providing service on reservations within one BIA

service area, or $300,000 for a program providing multi-area coverage.

2. The amount of subcontracting for consultant services provided

directly to cooperative agreement recipients by private nonprofit and/

or profit making individuals, organizations or otherwise qualified

business entities is limited to no more than 25% of total program cost.

C. The type and value of third-party in-kind contributions/

donations is limited to no more than 25% of total program cost.

D. Indirect cost and/or indirect rate used in the proposal are

subject to downward revision only.

3-9 Cost-sharing Criteria

A. Cost contributions may be either direct or indirect costs,

provided such costs are otherwise allowable in accordance with the cost

principles. Allowable costs which are absorbed by the applicant as its

share of costs may not be charged directly or indirectly or may not

have been charged in part or in whole to the Federal Government under

other contracts, agreements, or grants.

B. Except as provided by Federal statute, a cost-sharing or

matching requirement may not be met by costs borne by another Federal

grant.

C. Program income or other Federal funds, that are not authorized

for use by Federal statute, (excluding loan guarantee agreements since

these do not provide for disbursement of Federal funds) are not

acceptable for use as the applicant's matching funds. Inclusion of

other Federal funds in the program as part of total program cost is

subject to authorization by Federal statute and the terms of the

instrument containing such funds or written advice obtained from the

agency awarding the Federal funds. Any method used by the eligible

entity in providing the required funds which relies upon Federal funds

must be disclosed and identified in the eligible entity's proposal.

D. Neither costs nor the values of third party in-kind

contributions may count towards satisfying a cost-sharing or matching

requirement of the SCAP if they have been or will be counted towards

satisfying a cost-sharing or matching requirement of another Federal

grant, a Federal procurement contract, or any other award of Federal

funds.

E. Costs and third party in-kind contributions satisfying a cost-

sharing or matching requirement must be verifiable from the records of

recipients, subrecipients, or cost-type contractors. These records must

show how the value placed on third party in-kind contributions was

derived. To the extent feasible, volunteer services must be supported

by the same methods that the organization uses to support the

allocability of regular personnel costs.

F. Third party in-kind contributions may satisfy a cost-sharing or

matching requirement only when the payments would be allowable costs if

the party receiving the contributions were to pay for them. Some third

party in-kind contributions are goods and services that would have been

an indirect cost if the recipient, subrecipient or contractor had been

required to pay for them. Cost-sharing or matching credit for such

contributions may be given only if the recipient, subrecipient or

contractor has established, along with its regular indirect cost rate,

a special rate for allocating to individual projects or programs the

value of the contributions.

G. The value placed on third party in-kind contributions for cost-

sharing or matching purposes must conform to the requirements of the

SCAP.

H. Where distressed funding (greater than 50%) is requested and the

civil jurisdiction(s) which the applicant plans to service is both

distressed and non-distressed, two budgets must be submitted based on

the anticipated distribution of total program cost between these two

areas. In addition, the recipient's accounting system must segregate

and accumulate costs in each of the two budget areas.

I. Recipients of PTA cooperative agreements are required to

maintain records adequate to reflect the nature and extent of their

costs and expenditures, and to ensure that their required cost

participation is achieved.

3-10 Administration

A. Cooperative agreements with state and local governments,

nonprofit organizations and Indian economic enterprises will be

assigned to the cognizant Defense Contract Management Area Operations

for administration. Cooperative agreements with educational

institutions will be assigned to the Office of Naval Research for

administration.

B. The organization having cognizance for postaward administration

will be responsible to ensure surveillance reviews are conducted. The

reviews will include:

1. management control systems;

2. financial management control systems;

3. progress being made by the recipient in meeting its goals; and

4. compliance with certifications, representatives and other

performance factors.

C. For eligible entities covered by OMB Circular No. A-102, Grants

and Cooperative Agreements with State and Local Governments, or OMB

Circular No. A-110, Grants and Agreements with Institutions of Higher

Education, Hospitals and other Non-profit Organizations, the

administrative requirements specified in those circulars will apply.

D. Each state and local entity that receives Federal funding is

required to have audits performed in accordance with the requirements

of OMB Circular A-128. Nonprofit organizations and institutions of

higher education are required to have audits performed in accordance

with the requirements of OMB Circular A-133. Indian economic

enterprises (for profit only) will have audits performed in accordance

with the requirements of OMB Circular A-133. Recipients shall have the

audit organization send a copy of all audit reports which pertain to

the PTA cooperative agreement directly to the Office of the Assistant

Inspector General for Audit, Policy and Oversight, Office of the

Inspector General, 400 Army-Navy Drive, Room 1076, Arlington, VA 22202-

2884.

E. The following OMB Circulars will be used to determine allowable

costs in performance of the program:

1. OMB Circular No. A-21, Cost Principles for Educational

Institutions;

2. OMB Circular No. A-87, Cost Principles for State and Local

Governments; and

3. OMB Circular No. A-122, Cost Principles for Nonprofit

Organizations. This circular will also be used by for-profit

organizations.

F. The cognizant Deputy for Small Business will be the focal point

for the Administrative Grants Officer for small business issues and for

all recipient publication and training requests.

[FR Doc. 94-32047 Filed 12-28-94; 8:45 am]

BILLING CODE 3620-01-M