Nationwide Capital Development Center

DEPARTMENT OF COMMERCE

Minority Business Development Agency

Nationwide Capital Development Center

AGENCY: Minority Business Development Agency, Commerce.

ACTION: Notice.

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SUMMARY: Funds are available to conduct a competitive solicitation in

order to select an applicant to operate a nationwide Capital

Development Center to assist minority business clients to access debt

and equity capital. This Center, to be operated under detailed work

requirements established by the Minority Business Development Agency

(MBDA), will provide client services designed to enable minority

business enterprises (MBEs) to implement long-term growth strategies by

securing capital through both mainstream and specialized capital

markets. Such services shall include analyzing an MBE's financial

statements, assisting in the preparation of financial plans,

introduction of the MBE to prospective investors and lenders, and

assistance in transaction closings. The Center will act as a liaison

between the MBE community and the capital markets, serving as a

clearinghouse for available resources and opportunities, and matching

qualified MBEs with potential funding sources.

The project will be national in scope, and will serve eligible

minority firms throughout the fifty states, as provided by the work

requirements. Firms eligible to receive client assistance shall be

growth-oriented firms, in business for not less than two years, and who

seek to engage in capital transactions of $500,000 or more.

Executive Order 11625, effective October 13, 1991, authorizes MBDA

to provide management and technical assistance to socially and

economically disadvantaged businesses and to coordinate Federal efforts

to assist in the growth and expansion of the nation's minority business

sector. MBDA has determined that a substantial impediment to minority

business growth involves the inability to access financial capital. The

primary objective of this project is to provide management and

technical assistance to middle-market MBEs who are seeking to approach

the capital markets to obtain financing. Areas of assistance will

include: obtaining venture capital financing, the design and

implementation of financial plans as vehicles for sustained growth,

replacement of debt with equity capital, and financing business

acquisitions and mergers.

The successful applicant will operate the Center for a three-year

period, subject to agency priorities, recipient performance and the

availability of funds.

DATES: The closing date for applications is August 15, 1996.

Applications must be received in the MBDA Headquarters' Executive

Secretariat on or before August 15, 1996. A pre-application conference

to assist all interested applicants will be held on July 30, 1996, at

1:00 p.m., at the U.S. Department of Commerce, 14th and Constitution

Avenue, N.W., Room 5045, Washington, D.C. 20230.

PROPER IDENTIFICATION IS REQUIRED FOR ENTRANCE INTO ANY FEDERAL

BUILDING.

ADDRESSES: Competitive Application Packages for the Capital Development

Center will be available from MBDA beginning on the date this Notice is

published. To obtain a copy of the Application Package, please call via

telephone (202) 482-3261, or facsimile (202) 482-6021, or send a

written request with two (2) self-addressed mailing labels to Robert

Hooks, Chief, Resource and Market Division, Minority Business

Development Agency, Room 5092, U.S. Department of Commerce, 14th &

Constitution Avenue, N.W., Washington, D.C. 20230.

Completed proposals should be submitted to the U.S. Department of

Commerce, Minority Business Development Agency, Executive Secretariat,

14th and Constitution Avenue, N.W., Room 5073, Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Elio Muller, Associate Director for

Strategic Planning and Operations, (202) 482-1015.

SUPPLEMENTARY INFORMATION: Contingent upon the availability of Federal

funds, the cost of performance for the first budget period (13 months)

from October 1, 1996 to October 31, 1997, is estimated at $588,235. A

30-day start-up period will be added to the first budget period, making

it a 13-month award. The application must include a minimum cost-share

of $88,235 or 15% of the total project cost, through non-Federal

contributions. The Federal share, to be in the amount of $500,000,

includes $12,000 for an annual audit fee. Cost-sharing may be in the

form of cash contributions, client fees, in-kind contributions or

combinations thereof.

The funding instrument for this project will be a cooperative

agreement. Competition is open to individuals, non-profit and for-

profit organizations, state and local governments, American Indian

tribes and educational institutions.

Applications will be evaluated on the following criteria: the

expertise and capabilities of the firm and its staff in addressing the

capital needs of businesses in general and, more specifically, of

minority businesses (50 points); the resources available to the firm in

assisting minority firms to raise capital (10 points); the firm's

approach (techniques and methodologies) to performing the work

requirements developed for this project (20 points);

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and the firm's estimated cost of performing the work requirements. An

application must receive at least 70% of the points assigned to each of

the evaluation criteria to be considered programmatically acceptable

and responsive. Those applications determined to be acceptable and

responsive will then be evaluated by the Director of MBDA. Final award

selections shall be based on the number of points received, the

demonstrated responsibility of the applicant, and the determination of

those most likely to further the MBDA program. Negative audit findings

and recommendations and unsatisfactory performance under prior Federal

awards may result in an application not being considered for award. The

applicant with the highest point score will not necessarily receive the

award.

The Capital Development Center operator shall be required to

contribute at least 15% of the total project cost through non-Federal

contributions. To assist in this effort, the operator may charge client

fees for management and technical assistance (M&TA) rendered. Any

client fees charged for services rendered under this award must be

charged at rates determined under an established fee policy approved by

the Department of Commerce (DOC).

If an application is selected for funding, DOC 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 DOC. Awards under this

program shall be subject to all Federal laws, Federal and Departmental

regulations, policies and procedures applicable to Federal assistance

awards.

Quarterly reviews culminating in year-end evaluations will be

conducted to determine if funding for the project should continue.

Continued funding will be at the total discretion of MBDA based on such

factors as the operator's performance, the availability of funds and

Agency priorities. The anticipated processing time for this award is 90

days.

Pre-Award Costs--Applicants are hereby notified that if they 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 assurance that an applicant may have received, there is no

obligation on the part of the Department of Commerce to cover pre-award

costs.

Outstanding Accounts Receivable--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, or a repayment

schedule is established and at least one payment is received, or other

arrangements satisfactory to the Department of Commerce are made.

Name Check Policy--All non-profit and for-profit applicants are

subject to a name check review process. Name checks are intended to

reveal whether any key individuals associated with the applicant have

been convicted 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.

Award Termination--The Departmental Grants Officer may terminate

any grant/cooperative agreement in whole or in part at any time before

the date of completion whenever it is determined that the award

recipient has failed to comply with the conditions of the grant/

cooperative agreement. Examples of some of the conditions which can

cause termination are failure to meet cost-sharing requirements;

unsatisfactory performance of the MBDC work requirements; and reporting

inaccurate or inflated claims of client assistance. Such inaccurate or

inflated claims may be deemed illegal and punishable by law.

False Statements--A false statement on an application for Federal

financial assistance 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.

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.''

Non-Procurement Debarment and Suspension--Prospective participants

(as defined at 15 CFR, Part 26, Section 26.105) are subject to 15 CFR,

Part 26, ``Non-Procurement Debarment and Suspension'' and the related

section of the certification form prescribed above applies.

Drug-Free Workplace--Grantees (as defined at 15 CFR, Part 26,

Section 26.605) are subject to 15 CFR, Part 26, Subpart F,

``Government-wide 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, Part 28, Section

28.105) 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.

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.

Lower Tier Certifications--Recipients shall require applications/

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 DOC. SF-LLL

submitted by any tier recipient and should not be transmitted to DOC in

accordance with the instructions contained in the award document.

Buy American-Made Equipment or Products--Applicants are hereby

notified that they are encouraged, to the extent feasible, to purchase

American-made equipment and products with funding provided under this

program in accordance with Congressional intent as set forth in the

resolution contained in Public Law 103-121, Sections 606 (a) and (b).

Dated: July 10, 1996.

Frances B. Douglas,

Alternate, Federal Register Liaison Officer, Minority Business

Development Agency.

[FR Doc. 96-17986 Filed 7-15-96; 8:45 am]

BILLING CODE 3510-21-M