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, to

enter into cost sharing cooperative agreements to support procurement

technical

[[Page 8580]]

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 March 29, 1996. Proposed

effective date: April 8, 1996.

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

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

Logistics Agency, 8725 John J. Kingsman Rd., Suite 2533, Fort Belvoir,

VA 22060-6221, Telephone (703) 767-1650.

Sim C. Mitchell,

Program Manager, Office of Small and Disadvantaged Business

Utilization.

I. Background Information

The Procurement Technical Assistance Cooperative Agreement Program

(PTACAP) 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 (U.S.C.), by adding Chapter 142.

Title 10, U.S.C., 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

procurement technical assistance (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 PTACAP provides assistance

to eligible entities by sharing the cost of establishing new and/or

maintaining existing PTA programs.

The enabling legislation placed the following limitation on the use

of funds allocated to the program:

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.

D. No funds appropriated or otherwise available to the Department

of Defense may be obligated by contract or by grant (including a grant

of funds to be available for student aid) to any institution of higher

education that, as determined by the Secretary of Defense, has an anti-

ROTC policy and at which, as determined by the Secretary, the Secretary

would otherwise maintain or seek to establish a unit of the Senior

Reserve Officer Training Corps or at which the Secretary would

otherwise enroll or seek to enroll students for participation in a unit

of the Senior Reserve Officer Training Corps at another nearby

institution of higher education. The term ``anti-ROTC policy'' means a

policy or practice of an institution of higher education that--

1. prohibits, or in effect prevents, the Secretary of Defense from

maintaining or establishing a unit of the Senior Reserve Officer

Training Corps at that institution, or

2. prohibits, or in effect prevents, a student at that institution

from enrolling in a unit of the Senior Reserve Officer Training Corps

at another institution of higher education.

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, U.S.C., 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 95 Program in that

it addressed the FY 95 Authorization Act requirements in specific

terms. 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 FYs 96, 97 and 98

Programs.

Comments are invited on the procedure. Comments should be submitted

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

DDAS, 8725 John J. Kingman Road, Suite 2533, Fort Belvoir, VA 22060-

6221. Comments received after March 29, 1996 may not be considered in

formulating revisions to the Procedure.

III. Proposed Revision to DLA Procedure--Cooperative Agreements

3-1 Policy

A. Applications for cooperative agreements are obtained through the

issuance of a DLA solicitation for cooperative agreement applications

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

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

administrative requirements to execute and administer DLA awarded

cooperative agreements. The SCAA may include additional administrative

requirements that are not included herein.

B. The SCAA is issued by the PTACAP Manager (hereafter referred to

as Program Manager) of the DLA Office of Small and Disadvantaged

Business Utilization every third fiscal year, i.e., FY 96, FY 99, etc.

The Program Manager will respond to any SCAA questions that may arise.

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

entity. An entity that submits more than one

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application, or is listed as a subagreement applicant in another

entity's application will not be considered for an award. D.

Applications 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 an application.

E. Applications 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 county or equivalent, the applicant must service the entire county or

equivalent.

F. Cooperative agreements will be awarded on a competitive basis

consistent with the SCAA. 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 applications to receive cooperative agreement awards.

H. The SCAA 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 an application under the SCAA will be invited to participate

in a pre-application conference. Pre-application conferences will be

held at the locations designated in the SCAA, approximately 30 calendar

days prior to the SCAA's closing date.

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

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

J. In the event that insufficient funds are available to award all

applicants that meet the minimum requirements, only those applicants

found to be the most meritorious will be funded for an award.

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

services described in its application when the application is

incorporated into the cooperative agreement award document.

L. 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 96 award

recipients to participate in a FY 96 pre-application and/or postaward

training conference may be reimbursed under the FY 96 cooperative

agreement award subject to the provisions of the applicable cost

principles.

M. 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.

N. Cooperative agreement recipients must give special emphasis to

assisting small disadvantaged business (SDB) firms and any historically

black colleges and minority institutions 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.

O. 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. Applications

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 removed from

consideration for an award.

P. 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.

Q. 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.

R. 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.

S. 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.''

T. Applications submitted in response to the SCAA shall cover a 12,

24 or 36-month period. All other applications proposing different

periods will not be considered for an award.

U. 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 for the base year and each of the option

years. Time employed must be performed continuously or incrementally

for each 12-month period.

V. Cooperative agreement recipients shall not purchase non-

expendable tangible personal property with a delivery date later than

90 days prior to the expiration of the cooperative agreement's

effective period. Cost of non-expendable tangible personal property

delivered later than 90 days prior to the expiration of the cooperative

agreement's effective period will be disallowed.

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

subscription schedules. Usage will be limited to subscription services

only.

X. Cooperative agreement recipients are required to provide

information to their clients relating to the objectives of the

Government's Electronic Commerce/Electronic Data Interchange (EC/EDI)

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

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electronic inter- change of data. (These formats are the ANSI ASC X-12

and UNEDIFACT formats); and

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

Government and potential suppliers to exchange information and access

Federal procurement data.

Y. 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, Procurement Technical Assistance Cooperative Agreement

Performance Report. The expenditure of additional funds shall be made

in accordance with the applicable cost principles.

Z. If the recipient charges or plans to charge a fee or service

charge for PTA given to business firms/clients, or receives any other

income as a result of operating the PTACAP, the amount of such

reimbursement must be added to total program cost.

3-2 Scope

This procedure implements Title 10, U.S.C., Chapter 142, as

amended, and establishes procedures 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). A person 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 after approval 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 agencies, state and/or local governments. For the

American Indian program, the client must be located on a reservation.

H. Commercial Item.

1. Any item, other than real property, that is of a type

customarily used for nongovernmental purposes and that--

a. has been sold, leased, or licensed to the general public; or,

b. Has been offered for sale, lease, or license to the general

public;

2. Any item that evolved from an item described in paragraph 1. of

this definition through advances in technology or performance and that

is not yet available in the commercial marketplace, but will be

available in the commercial marketplace in time to satisfy the delivery

requirements under a Government solicitation;

3. Any item that would satisfy a criterion expressed in paragraph

1. or 2. of this definition, but for--

a. Modifications of a type customarily available in the commercial

marketplace; or

b. Minor modifications of a type not customarily available in the

commercial marketplace made to meet Federal Government requirements.

``Minor'' modifications means modifications that do not significantly

alter the nongovernmental function or essential physical

characteristics of an item or component, or change the purpose of a

process. Factors to be considered in determining whether a modification

is minor include the value and size of the modification and the

comparative value and size of the final product. Dollar values and

percentages may be used as guideposts, but are not conclusive evidence

that a modification is minor;

4. Any combination of items meeting the requirements of paragraph

1., 2., 3., or 5. of this definition that are of a type customarily

combined and sold in combination to the general public;

5. Installation services, maintenance services, repair services,

training services, and other services if such services are procured for

support of an item referred to in paragraph 1., 2., 3., or 4. of this

definition, and if the source of such services--

a. Offers such services to the general public and the Federal

Government contemporaneously and under similar terms and conditions;

and

b. Offers to use the same work force for providing the Federal

Government with such services as the source uses for providing such

services to the general public;

6. Services of a type offered and sold competitively in substantial

quantities in the commercial marketplace based on established catalog

or market prices for specific tasks performed under standard commercial

terms and conditions. This does not include services that are sold

based on hourly rates without an established catalog or market price

for a specific service performed;

7. Any item, combination of items, or service referred to in

paragraphs 1. through 6., notwithstanding the fact that the item,

combination of items, or service is transferred between or among

separate divisions, subsidiaries, or affiliates of a contractor; or

8. A nondevelopmental item, if the procuring agency determines the

item was developed exclusively at private expense and sold in

substantial quantities, on a competitive basis, to multiple State and

local governments.

I. 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.

J. 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

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carrying out the activity contemplated in the agreement.

K. Cooperative agreement Application. An applicant's response to

the SCAA describing its planned PTA program.

L. 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.

M. Cost matching or sharing. The portion of project or program

costs not borne by the Federal Government.

N. 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 business

firm/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

commercial item acquisitions. 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.

O. 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.

P. 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.

Q. 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 within the same

geographic area.

R. Electronic Commerce (EC). The end-to-end, paperless business

environment that integrates electronic transfer and automated business

systems. EC includes EDI, FAX, Bar Coding, Electronic Funds Transfer,

etc.

S. Electronic Commerce in Contracting (ECIC). Refers to electronic

procurement transactions.

T. Electronic Data Interchange (EDI). A subset of EC. EDI is the

computer-to-computer exchange of routine business transactions.

U. Eligible entities. Organizations qualifying to submit an

application 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.

(1) 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) Indian/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 benefitting 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.

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

agreement with DLA for one or more years.

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

obligated by the Federal government for use by the recipient.

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

client subsequent to the initial counseling session.

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

administer, and/or terminate grants or cooperative agreements.

Z. 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.].

AA. 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

[[Page 8584]]

seq.], which is recognized by the Federal Government as eligible for

services from the Bureau of Indian Affairs.

AB. 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.

AC. Initial counseling session. The first counseling session held

by a recipient with a business firm. The initial counseling session may

determine that the business firm has no potential to do business with a

Federal agency and/or state and local government.

AD. In-kind contributions. 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. In-kind contributions 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.

AE. Integrated automated information environment. Computer-to-

computer exchange of public standard formatted messages through use of

a VAN.

AF. 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.

AG. Net program cost. The total program cost from all authorized

sources- less any program income and/or other Federal funds not

authorized to be shared.

AH. 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 and/or maintaining data links with other

organizations; and

3. creating data exchanges.

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

AJ. Non-profit agencies representing the blind and severely

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

disabled which produces a commodity for, or provides a service to, the

Government. For the PTACAP workshops may be treated as small

businesses.

AK. Other Federal funds. Federal funds such as those 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 cost

matching contributions.

AL. Outlays/expenditures. 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 third party in-kind contributions 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 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.

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

total money income received during the calendar year for all persons

residing in a given political jurisdiction as published by the US

Department of Commerce, Bureau of the Census.

AN. Prior approval. Written approval given by an authorized

official evidencing prior consent as required by the cooperative

agreement award document.

AO. Procurement Technical Assistance Cooperative Agreement Program

(PTACAP). A program established to generate employment and improve the

general economy of a locality by assisting business firms in obtaining

and performing under DoD, other Federal agency and state and local

government contracts.

AP. Program income. Gross income earned by the recipient or

subrecipient from cooperative agreement supported activities. Program

income includes fees for services performed, and the use or rental of

personal property acquired with cooperative agreement funds. Except as

otherwise provided in program regulations or the terms and conditions

of the award, program income does not include the receipt of principal,

interest or loans, rebates, credits, discounts, refunds, etc., or

interest earned on any of them.

AQ. 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).

AR. 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.].

AS. 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.

AT. 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.

AU. 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 owned by one or more socially and

economically 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

that meets the requirements of 13 CFR 124.

AV. Solicitation for cooperative agreement applications (SCAA). A

document issued by DLA containing provisions and evaluation factors

applicable to all applicants which apply for a PTA cooperative

agreement.

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

least 50% of a State's counties or

[[Page 8585]]

equivalent and 75% of the State's labor force.

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

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

agreement from DLA and any modification(s) thereto.

AY. 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

PTACAP.

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

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

A1. Total program outlays. All 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 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.

A2. Unliquidated obligations. For financial reports prepared on a

cash basis, means the amount of obligations incurred by the recipient

that has not been paid. For reports prepared on an accrued expenditure

basis, they represent the amount of obligations incurred by the

recipient for which an outlay has not been recorded.

A3. Unobligated balance. The portion of the funds authorized by DLA

that has not been obligated by the recipient which is determined by

deducting the cumulative obligations from the cumulative funds

authorized.

A4. Value added network (VAN). A commercial telecommunications

service provider which passes electronic commerce traffic between a

government entity and a commercial, private sector vendor.

A5. Woman-owned small business (WOB). A small business concern--(i)

which is at least 51 per centum owned by one or more women; or in the

case of a publicly owned business, at least 51 per centum of the stock

of which is owned by one or more women; and (ii) whose management and

daily business operations are controlled by one or more women.

3-4 Program Purpose and Requirements

A. The purpose of the PTACAP is to generate employment and to

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 center must meet these minimum requirements set forth

below. Failure to meet any of these requirements will be cause to deny

or terminate an award.

1. Service Area

Analyze the service area to identify its geographic and demographic

characteristics. The applicant must maintain and provide information

regarding the characteristics of the local economy (distressed or

nondistressed) and the type of business firms located in the service

area (SB, WOB, SDB, OTSB). Information must include:

a. An explanation how the business community will be made aware of

the PTA Program; the types of assistance being offered to clients; what

is required from a business firm to become a PTA center's client; and

the impact the PTA center will have in generating employment within the

service area.

b. The total number of counties or equivalent within the State and

the identification of each county the applicant plans to service.

c. The average unemployment level for each county the applicant

plans to service.

d. The average per capita income of the State and each county the

applicant plans to service.

e. The total number of procurement outreach conferences the

applicant plans to sponsor.

f. The total number of procurement outreach conferences the

applicant plans to participate in other than as a sponsor.

g. The state's total population and the percent of the population

that the applicant plans to service.

h. The total number of SB, WOB, SDB, and OTSB the applicant plans

to service.

2. Counseling and Client Information

Applicants must provide clients with counseling and information

regarding marketing their goods and services to DoD, other Federal

agencies, and state and local governments. The applicant shall:

a. Analyze the types of business firms within their geographic area

to determine the types to be counseled (by product or service offered).

b. Shall maintain regulations and publications (or identify sources

for obtaining) that govern Federal, state and local government

procurement, as applicable.

c. Identify marketing opportunities for clients consistent with

their products and services.

d. Assist and advise clients concerning post award functions.

e. Educate clients in the following areas:

(1) DoD Mentor-Protege Pilot Program.

(2) Defense Conversion, Reinvestment and Transition Assistance Act

of 1992.

(3) The Metric Conversion Act.

(4) The requirements and procedures used by DoD and other Federal

agencies in the acquisition of commercial products.

f. Maintain records to document services provided during all

counseling sessions (initial and follow-up) to include preparation of

bidders mailing list applications.

3. Electronic Commerce/Electronic Data Interchange

(EC/EDI)--Applicant must provide its clients with information

pertaining to Electronic Commerce in Contracting (ECIC), including the

routine computer exchange of procurement 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. Information to be provided

to the client should include:

a. An explanation of how the business community will benefit from

using EC/EDI.

b. A complete understanding of the Federal Government EC/EDI

program to include:

(1) An identification and explanation of the functions of the

various components of EC/EDI, such as Value Added network (VANs) and

Value Added Services (VASs), Government gateways and networks,

translation software, necessary hardware, and the Central Contractor

Registration (CCR) system.

(2) An explanation of current OSD and Federal policies regarding

ECIC.

(3) An explanation of transaction sets and implementation

conventions.

(4) An explanation of the impact and applicability of the Internet

on ECIC, including identification of Government home pages, electronic

catalogs, electronic bulletin boards and other relevant net sites.

(5) Explanation of FACNET requirements and DoD and Federal efforts

(and status) on meeting these requirements.

[[Page 8586]]

4. Postaward Assistance

Applicant must assist, as appropriate, their clients with

understanding Federal, state and local government requirements

applicable to contracting for services, manufacturing, construction or

other markets. As a minimum, the assistance should include but is not

limited to:

a. Production

b. Quality System

c. Accounting system requirements, and contract payments

d. Transportation

e. Packaging

f. Subcontracting

g. Property

5. Performance Reporting

The PTA center shall collect sufficient information from its

clients to supplement information maintained in its files to report

current, complete and accurate information required by the Procurement

Technical Assistance Cooperative Agreement Performance Report (DLA Form

1806). The DLA Form 1806 shall be submitted to the cognizant contract

administration activity on a semiannual basis. The PTA center shall:

a. Segregate data by origin of award (DoD, other Federal agency,

state and local government) and type of business (small and other than

small) and socioeconomic status of the business receiving the award

(SB, SDB, WOB, OTSB).

b. Have on file:

(1) A minimum of five success stories attesting to the PTA provided

to DoD clients during the base and each option year. Each success story

must be verified by a letter from the applicant's client stating that

the story is true and has resulted from the direct and exclusive effort

on behalf of the client by the PTA center.

(2) The number and dollar value of prime and subcontract awards

received.

(3) A means of validating the number and dollar value for prime and

subcontract awards received.

(4) A signed statement from the client confirming that the reported

prime and/or subcontract awards were obtained as a result of the

assistance provided by the PTA center.

(5) When requested by the reviewing activity, obtain detailed

information such as: the contract awarding activity; name and telephone

number of the point of contact at the contract awarding activity; and

the contract number and dollar value of prime and/or subcontract awards

from the client to support the information reported on the DLA Form

1806, when the information is not available in the PTA center's files.

c. Have on file for the PTA center the number of jobs generated

and/or retain for the base and each option year resulting from the

assistance provided by the PTA center.

6. Client Satisfaction

Clients serviced by the award recipient shall be surveyed annually,

as a minimum, to document client satisfaction with the assistance

provided by the PTA center. The client shall be requested to assess the

performance of the PTA center and its personnel in terms of:

a. Timeliness and responsiveness to general and specific client

needs;

b. Flexibility and ability to change with evolving client

circumstances;

c. Commitment to the client's stated goals;

d. Training offered and received, as appropriate; and,

e. Overall capability to provide relevant advice and assistance to

the client.

Clients shall rate the PTA center as satisfactory or

unsatisfactory. The file will reflect, in sufficient detail, the PTA

center's efforts to overcome areas of client dissatisfaction. The above

information will be compiled, documented and maintained as a part of

each client's permanent file, and as a collective report for the entire

PTA center. The client rating information shall be made available to

the Grants Officer or designated representative for review upon

request.

C. The recipient and subrecipient(s) shall operate their PTA

centers on a forty (40) hour week basis, or during the normal business

hours of the state or local government or PTA center's parent

organization throughout the effective period of the cooperative

agreement. Vacation benefits and holidays allowed to the staff of the

recipient and subrecipient(s) shall conform to the policy of the state

or local government or PTA center's parent organization.

3-5 Procedures

A. The SCAA and selection criteria are developed and prepared by

the Headquarters (HQ), DLA PTA Cooperative Agreement Program Manager

(hereafter referred to as Program Manager). The SCAA and selection

criteria are approved by the HQ DLA PTA Cooperative Agreement Program

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

Policy Committee is comprised of representatives from HQ DLA. The

Director, office of Small and Disadvantaged Business utilization,

serves as the Policy Committee Chairman.

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. Applications and revisions received after the deadline for

receipt of applications, as specified in the SCAA, will not be

evaluated unless acceptable evidence is provided by the applicant.

Acceptable evidence to support an otherwise late application 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 the date of mailing not later than five calendar days

before the date specified for receipt of applications 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 US Postal Service. The postmark date must

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

applications. 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 application 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 applications and selection of award recipients

resulting from responses to the SCAA shall be conducted as detailed

below:

1. The GO will evaluate each application received to determine if

the application: (i) offers at least a county or equivalent coverage;

(ii) contains sufficient management, technical, cost, and other

required information; (iii) has been signed by a responsible official

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

requirements of the SCAA. Applications that fail to meet the

requirements of the SCAA will be removed from further consideration for

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

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

any other unsuccessful application(s) by the GO.

2. Program status classification. The GO will review and verify the

accuracy of the applicant's program status stated

[[Page 8587]]

in item 8, ``Type of Application'' of the Standard Form (SF) 424. If

the GO considers the program status misclassified, the matter will be

reviewed with the applicant. If the applicant and the GO cannot agree,

the GO will determine the applicant's program status based upon the

information contained in the application at the time the solicitation

closed. The GO's decision regarding the program's status is final.

3. 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 application; and (ii) execute the certifications required by the

SCAA clauses.

a. 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 status (existing versus new start program). The

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

intended.

b. 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 application. Corrections shall be restated in the

cooperative agreement award document, if the applicant receives an

award.

c. 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. The determination to allow correction of mistakes will be made

provided that both the existence of the mistake and the application

actually intended are established by clear and convincing evidence from

the solicitation and application.

4. Notification of application removal from consideration for an

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

receipt requested) if its application is removed from further

consideration for an award.

5. Duplicate coverage. An application 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. When the GO

determines that two or more applicants are proposing to provide

duplicate coverage in excess of 25%, selection priority will be given

to the applicant that is determined to be best qualified by the

evaluation team. Only one statewide program (under the general program)

will be awarded in a state.

6. Each application will be reviewed by an evaluation team

consisting of two procurement functionals, one technical functional,

and one small business functional. Each evaluation factor will receive

individual adjectival ratings (highly acceptable, acceptable,

marginally acceptable, and unacceptable) based on the merit of the

applicant's support for the particular evaluation element. The team

will then collectively assess the overall application, taking into

consideration the strengths and weaknesses of the application as it

relates to each individual evaluation factor. A single adjectival

rating will be assigned to the application which will be used to

determine final award status. Applicants should be aware that ultimate

award and inclusion into the DLA PTACAP may depend on funding

limitations and constraints placed upon the Agency.

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

Manager and executed by the GO.

3-6 Evaluation Plan

A. Selection Procedures

1. This section outlines the procedures the Government will use

during the selection process for the FY 96 PTACAP. The Government

contemplates that multiple awards will be made from the applications

submitted for the PTACAP. The Government at its discretion may select

multiple applicants to perform PTACAP requirements at statewide and

other than statewide coverage levels provided that any individual

application shall not duplicate any counties or equivalent (general

program), or reservations (Indian program), proposed by other

applicants.

2. The section entitled Evaluation Criteria describes the criteria

the Government will use to select those applicants that provide the

best overall value to satisfy PTACAP requirements. Evaluation criteria

(in order of importance) are:

a. Past Performance (Existing Programs Only);

b. Management;

c. Technical Qualifications;

d. Service Area (geographic and demographic characteristics); and

e. Cost Realism.

3. Information provided regarding past performance will be

evaluated by the Government to determine the applicant's ability to

perform PTACAP requirements. Applicants selected for the basic award

will be considered for award of option(s) if their demonstrated

performance is equal or better than that required by the base year or

first option year cooperative agreement award and a satisfactory or

better performance rating is received from the cognizant contract

administration activity. In the absence of acceptable performance by

the original awardee, other applicants may be selected to complete the

option period(s).

4. Although cost realism is of lesser importance, the importance of

cost realism could increase among applicants that are rated equally or

nearly equal. Should applicants become equal or nearly equal in terms

of the factors shown above, other factors listed below may be used as

discriminating elements for determining the selection of applications

among otherwise substantially equal applicants. These factors in

descending order of importance are:

a. Duplication of effort;

b. Demographic make-up, to include population, unemployment, and

labor surplus area coverage;

c. Alternative methods employed to stimulate outreach efforts aimed

at small disadvantaged businesses; and,

d. Other strengths and weaknesses of note demonstrated in the

application.

5. The recommendation of applicants to participate in the PTACAP

will be made by the Evaluation Team based on an integrated assessment

of all applications submitted in response to the solicitation and other

terms and conditions agreed upon prior to award. The integrated

assessment will involve a determination by the Government of the

overall value of each proposal

[[Page 8588]]

judged in terms of the applicant's capability. Throughout the

evaluation process, the Government will independently identify

deficiencies within the applications. The team will collectively assess

the overall application, taking into account the strengths and

weaknesses of the application as it relates to each individual

evaluation factor. A single adjectival rating will be assigned to the

application, which will be used to determine final award status.

B. Evaluation Criteria

1. Past Performance (Existing Programs Only)

a. The Government will evaluate the quality of the applicant's past

performance. The assessment of the past performance will be used in two

(2) ways:

(1) First, the assessment of the offeror's performance will be used

as one means of evaluating the credibility of the applicant's

application. A record of marginal or unacceptable past performance may

be considered an indication that the representations made by the

applicant are less than reliable. Such an indication may be reflected

in the overall assessment of the applicant's application.

(2) Second, the assessment of the applicant's past performance will

be used as one means of evaluating the relative capability of the

applicant and the other applicants to meet the performance requirements

of the PTACAP. Thus, an applicant with an exceptional record of past

performance may receive a more favorable evaluation than another whose

record is acceptable, even though both may have otherwise equally

acceptable applications.

b. In investigating an applicant's past performance, the Government

will consider the information in the applicant's proposal and

information obtained from other sources, such as past and present

clients, other Government agencies, and others who may have useful

information.

c. Evaluation of past performance will be a subjective assessment

based on a consideration of all relevant facts and circumstances. It

will not be based on absolute standards of acceptable performance. The

Government is seeking to determine whether the offeror has consistently

demonstrated a commitment to client satisfaction and timely delivery of

quality service at reasonable costs. This is a matter of judgement.

Applicants may be given an opportunity to address especially

unfavorable reports of past performance, and the applicant's response

or lack thereof will be taken into consideration.

d. By past performance, the Government means the applicant's record

of conforming to the PTACAP requirements, including the administrative

aspects of performance, reputation for reasonable and cooperative

behavior, commitment to client satisfaction, and generally, the

applicant's businesslike concern for the interests of the client.

2. Management

a. The proposed management team will be rated to determine the

degree of experience offered by the team proposed and the likelihood of

successful management under the PTACAP.

b. Management will be evaluated to determine whether it meets the

PTACAP requirements.

c. The application will be evaluated to determine the financial

strength and soundness of the organization. The availability of

resources under the application will also be assessed. The strength of

the plan will be assessed to determine the adequacy of the plan

proposed.

3. Technical Qualifications

Understanding of and ability to meet PTACAP requirements by the

personnel involved for this factor will be evaluated to determine the

extent to which it meets the program requirements and the likelihood of

success of the PTACAP as it relates to these requirements. Benefits

will be evaluated in terms of management substance and achievability.

4. Service Area (Geographic and Demographic Characteristics)

a. The service area will be evaluated based upon the population to

be serviced as well as the unemployment conditions in the area to

determine the scope and nature of the coverage proposed.

b. Demographic characteristics will be evaluated including the

total population of the state and the percentage of the population to

be served and the unemployment conditions in the area. The unemployment

rate for the most recent 24 month period for which statistics are

available will be used in this process.

c. Service area will be evaluated to assess the extent to which the

program maximizes coverage and achieves PTACAP requirements and

objectives.

5. Cost Realism

Cost realism will be evaluated on the basis of the applicant's

ability to project cost which indicates an understanding of the nature

and scope of the work required. The costs proposed will also be

evaluated for reasonableness. Reasonableness is a judgement of the

proposed program costs as compared to expected needs of the PTACAP,

appropriate indices and other relevant measures. Implicit in the

assessment is the need to establish that any application considered for

an award must also be realistic with respect to the relationship of the

cost to the level of performance proposed. This determination is

critical to determining the offeror's understanding of the PTACAP

requirements and probability of successful performance. Upon a

determination of cost realism, a comparison of proposed costs will be

made to the other evaluation factors and the Evaluation Team will make

a decision as to which applications represent the best value to the

Government. It is to be noted that this assessment will be a subjective

judgement as to the relative value of the applications received. The

Government reserves the right to verify any and all aspects of each

applicant's application.

3-7 Evaluation Factors

Applications will be evaluated for merit and compliance with the

PTACAP's solicitation requirements. In order to provide full

consideration of the applicant's qualification for an award, each

applicant should ensure that the information furnished is factual

current, accurate, and complete. The content should be presented in a

manner that will allow evaluators to determine the applicant's

understanding of the SCAA, the operating environment desired in PTA

centers, and how the applicant's overall concept meets requirements of

the SCAA. Failure to provide the information requested may result in a

determination that the application is unacceptable and will be removed

from further consideration for an award. The Government reserves the

right to verify information provided by the applicant for evaluation

purposes and to request additional supporting information, if needed.

The evaluation factors (in their order of importance) are:

A. Past Performance (Existing Programs Only). Applicants having no

record of past performance under a DLA PTACAP will receive a neutral

rating for this evaluation factor. A neutral rating for new programs

will have no adverse effect on the determination for award. Each

applicant will be evaluated on its most recent 12-month performance

period (prior to 1 April 1996) under the existing solicitation

regarding compliance with requirements;

[[Page 8589]]

management of the program; and, ability to account for and document

associated costs. The applicant must summarize the requirements in its

most recent 12-month performance period and describe how its program

satisfied those requirements to include jobs generated and/or retained

and justification for any funds that were or will be deobligated.

Evaluation of past performance will be a subjective assessment based on

a consideration of all relevant facts and circumstances. The most

recent copy of the cognizant contract administration activity's

evaluation report must be provided. The following criteria will be used

to evaluate the application:

1. Highly acceptable--The application must demonstrate a high

degree of success in satisfying all PTA Program requirements during the

most recent 12-month performance period. The cognizant administration

activity's evaluation report must substantiate that the applicant has

an above average program.

2. Acceptable--The application must demonstrate that the applicant

has met all PTA Program requirements during the most recent 12-month

performance period. The cognizant administration activity's evaluation

report must substantiate that the applicant has an adequate program.

3. Marginally acceptable--The application must demonstrate that the

applicant has satisfied most of the PTA Program requirements during the

most recent 12-month performance period. The cognizant administration

activity's evaluation report must substantiate that the applicant has

implemented most program requirements.

4. Unacceptable--The applicant has fulfilled few of the PTA Program

requirements during the most current 12-month performance period. The

cognizant administration activity's evaluation report must substantiate

that the applicant has an inadequate program.

Note: Limit this discussion to 4 single-spaced, type-written

pages.

B. Management

Each applicant will be evaluated on its management approach to

successfully implement the PTA Program. The applicant shall describe

the methods and procedures it plans to employ to manage the PTA Program

in an efficient and effective manner. The applicant's approach will be

rated to determine the degree of experience offered and the likelihood

of successful management under the concept proposed. In addition, the

evaluation will include an assessment of the overall strength and

soundness of the organization. The following criteria will be used to

evaluate the application:

1. Highly acceptable--The applicant has fully demonstrated that the

techniques and methodology it intends to employ will enable it to

exceed all PTA Program requirements during the period of performance.

2. Acceptable--The applicant has demonstrated that the techniques

and methodology it intends to employ are adequate and that its

management approach will enable it to satisfy all PTA Program

requirements.

3. Marginally acceptable--The applicant has minimally demonstrated

that the management techniques and methodology it intends to employ

will satisfy most of the PTA Program requirements.

4. Unacceptable--The applicant has not demonstrated an adequate

understanding of the management techniques and methodology needed to

successfully operate a PTA Program and satisfy requirements.

Note: Limit this discussion to 3 single-spaced, type-written

pages.

C. Technical Qualifications

Each applicant will be evaluated on the qualifications of its

personnel regarding the number of years of procurement experience,

including government and industry experience, procurement related

training, and education. The applicant must describe how its personnel

fulfills these requirements. The following criteria will be used to

evaluate the application:

1. Highly acceptable--The majority of the applicant's professional

personnel have at least four years of acquisition experience; a

baccalaureate degree, preferably in business related subject; and, have

experience in operating a PTA Center or equivalent type organization.

2. Acceptable--The majority of the applicant's professional

personnel have at least two years of acquisition experience; a

baccalaureate degree, preferably in business related subject; and, have

experience in operating a PTA Center or equivalent type organization.

3. Marginally acceptable--The majority of the applicant's

professional personnel do not have more than one year of acquisition

experience; have a baccalaureate degree, preferably in business related

subject; and, have at least some experience in operating a PTA Center

or equivalent type organization.

4. Unacceptable--The majority of the applicant's professional

personnel do not have at least one year of acquisition experience; do

not have a baccalaureate degree; and, have no experience in operating a

PTA Center or equivalent type organization.

Note: Limit this discussion to 2 single-spaced, type-written

pages.

D. Service Area (geographic and demographic characteristics)

Each applicant will be evaluated on the population base the

applicant identifies and the unemployment level in the area to be

serviced. Demographic characteristics will be evaluated including the

total population of the State and the percentage of the population to

be served and the unemployment conditions in the area. The following

criteria will be used to evaluate the application:

1. Highly acceptable--The applicant will service an area that

consists of the lesser of either: (i) at least one million residents or

(ii) at least 75% of the population of the State. In addition, the

level of unemployment in the area to be serviced must be at least 1.25

times the national unemployment rate for the most recent 24 month

period for which statistics are available.

2. Acceptable--The applicant will service an area that consists of

the lesser of either: (i) at least five hundred thousand residents or

(ii) at least 50% of the population of the State. In addition, the

level of unemployment in the area to be serviced must be at least equal

to the national unemployment rate for the most recent 24 month period

for which statistics are available. In the event that the level of

unemployment in the area to be serviced is at least 1.5 times the

national unemployment rate for the most recent 24 month period for

which statistics are available, then the number of residents to be

serviced need only to exceed three hundred and fifty thousand.

3. Marginally acceptable--The applicant will service an area that

consists of the lesser of either: (i) two hundred and fifty thousand

residents or (ii) at least 25% of the population of the state. In

addition, the level of unemployment in the area to be serviced must be

at least equal to the national unemployment rate for the most recent 24

month period for which statistics are available. In the event that the

level of unemployment in the area to be serviced is at least 1.5 times

the national unemployment rate for the most recent 24 month period for

which statistics are available, then the number of residents to be

serviced need only to exceed one hundred and fifty thousand.

4. Unacceptable--The applicant will service an area that consists

of neither: (i)two hundred and fifty thousand residents for areas where

the level of unemployment in the area to be

[[Page 8590]]

serviced is less than 1.5 times the national unemployment rate for the

most recent 24 month period for which statistics are available or one

hundred and fifty thousand where the level of unemployment in the area

to be serviced is at least 1.5 times the national unemployment rate for

the most recent 24 month period for which statistics are available or

(ii) at least 25% of the population of the State.

Note: Limit this discussion to 1 single-spaced, type-written

page.

E. Cost Realism

Each applicant's response to this element will be evaluated for

reasonableness and realism in managing cost. Implicit in the assessment

is the need to demonstrate the relationship of the estimated overall

program cost to the proposed level of performance. The applicant shall

describe the measures intended to control, account for, and document

relevant costs. For example, describe the ratio of program management

cost to counselor cost and the ratio of program management cost to

total program cost, with an objective of optimizing the percent of

total program cost to be spent on direct counseling and assistance to

clients. Unrealistic cost reflected in the application will be deemed

indicative of the applicant's inability to perform the PTA Program.

Such applications may also reflect lack of understanding of the

complexity or the risks in scope of the requirement. As such, they will

no longer be considered eligible for award.

The following criteria will be used to evaluate the application:

1. Highly acceptable--The applicant must demonstrate that its

approach to cost management satisfies all PTA Program requirements in

an above average manner.

2. Acceptable--The applicant must demonstrate that its approach to

cost management is adequate to satisfy all PTA Program requirements.

3. Marginally acceptable--The applicant must demonstrate that it

has the capability to satisfy the majority of the PTA Program

requirements.

4. Unacceptable--The applicant has indicated through its response

to this element that its cost management approach is inadequate to

fulfill minimum PTA Program requirements.

Note: Limit this discussion to 1 single-spaced, type-written

pages.

3-9 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. Consultant services provided by private nonprofit and/or profit

making individuals, organizations or otherwise qualified business

entities may be used to augment a cooperative agreement recipient's

internal capabilities subject to the 10% total program cost limitation.

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. Consultant services provided by private nonprofit and/or profit

making individuals, organizations or otherwise qualified business

entities may be used to augment a cooperative agreement recipient's

internal capabilities subject to the 25% total program cost limitation.

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

limited to no more than 25% of total program cost. Third-party in-kind

contributions shall meet the requirements set forth by subparagraphs 3-

10E and 3-10F below.

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

subject to downward revision only.

E. The applicant shall submit a copy of the current negotiated

indirect rate memorandum issued by its cognizant Federal agency.

F. Indirect cost for educational institutions shall be limited to

actual cost incurred for administration expenses and cannot exceed 26%.

3-10 Cost Sharing Criteria

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

provided such costs are otherwise allowable in accordance with the

applicable 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 previously 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 cost 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 Federal funds used by the

eligible entity, other than the DoD PTA Cooperative Agreement Program

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 toward satisfying a cost sharing or matching

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

satisfying a cost sharing or matching requirement of another Federal

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

funds.

E. All applicant contributions, including cash and third party in-

kind, shall be accepted as part of the recipient's cost sharing or

matching when such contributions meet all of the following criteria;

(1) are 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 and 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); (2) are not included as contributions for any other federally-

assisted project or program; (3) are necessary and reasonable for

proper and efficient accomplishment of the project or program

objectives; (4) are allowable under the applicable cost principles; (5)

are not paid by the Federal Government under another award, except

where authorized by Federal statute to be used for cost sharing or

matching; (6) are provided for in the budget and (7) conform to other

provisions for uniform administration requirements under the applicable

OMB Circular.

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

contribu- tions may be given only if the recipient, subrecipient or

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

a special rate for

[[Page 8591]]

allocating to individual projects or programs the value of the

contributions.

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

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

distressed and nondistressed, two budgets must be submitted identifying

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.

H. 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.

3-11 Option To Extend the Term of the Cooperative Agreement

A. A SCAA will be issued every third fiscal year, i.e., 1996, 1999,

etc. Cooperative agreements will be awarded for a base year with one or

two option periods of twelve months each.

B. The awarding of a cooperative agreement for a base year with one

or two option periods of twelve months each does not guarantee the

recipient that an option(s) will be exercised. The Government at its

sole discretion may elect not to exercise an option(s), to exercise an

option(s) or to replace an existing program with either another

existing or new start program. The determination to exercise or not to

exercise an option will be made on a program by program basis.

Duplicate coverage, the number of DLA funded PTA centers operating in a

state and DoD funds available may be considered when deciding to or not

to exercise an option.

C. An option may be exercised by the Government providing the

recipient's:

1. Demonstrated performance is equal or better than that required

by the base year or first option year cooperative agreement award and a

satisfactory or better performance rating is received from the

cognizant administrative contracting officer.

2. Technical capability is equal or better than that required by

the base year or first option year cooperative agreement award.

3. Cost matching funds are available.

4. Five client success stories that resulted from the direct and

exclusive effort of the PTA center are verified by the Government and--

5. No other new application(s) (existing or new start) are received

by DLA that can provide similar or better services at a lower cost to

the Government.

D. The Government shall give the cooperative agreement recipient a

preliminary written notice of its intent to extend the cooperative

agreement performance period no later than 120 calendar days prior to

the end of the Government's current fiscal year (1 October thru 30

September). The preliminary notice does not commit the government to an

extension. The Government may extend the effective period of the

cooperative agreement by giving written notice to the cooperative

agreement recipient no later than 105 calendar days after issuance of

the preliminary notice.

E. New applications for cooperative agreements must be submitted no

earlier than 1 April and received no later than 30 April of each

calendar year. The application shall be prepared in accordance with the

most recent solicitation for cooperative agreement application.

Generally, awards will be made during the month of July.

1. Applications received prior to April 30, 1996, if selected to

receive an award, will be awarded for a base year with two option

periods of twelve months each.

2. Applications received prior to April 30, 1997, if selected to

receive an award, will be awarded for a base year with one option

period of twelve months.

3. Applications received prior to April 30, 1998, if selected to

receive an award, will be awarded for a base year only.

4. The base year application submitted prior to 30 April 1996 or

1997, unless otherwise extended, must include separate SF 424s and SF

424As for the option year(s). Detailed budget information for the

option year(s) is not required to be submitted with the base year

application. However, the net program cost and geographic area of

coverage shall be the same for the option period(s) as that provided

for the base year.

F. The notice of award for the base year will provide funding for a

12-month period only. Option year(s) are subject to the availability of

funds as set forth by the clause entitled ``Availability of funds.''

G. Option Year(s) requirements.

Upon receipt of the Government's preliminary written notice of its

intent to extend, at least 120 calendar days prior to the end of the

Government's current fiscal year, the cooperative agreement recipient

that desires exercising of the option, shall prepare and submit, to the

Grants Officer no later than 30 calendar days after receipt of the

Government's preliminary notice, the following:

1. Completed SF 424A for the option year with a complete narrative

justification for budgeted costs.

2. Completed goal work sheet.

3. Copy of its current negotiated indirect cost rate agreement, if

there are any changes.

4. Certification of cost match.

5. Updated personnel form.

6. Five client success stories that resulted from the direct and

exclusive effort of the PTA center.

7. The number of jobs generated and/or retained resulting from the

procurement technical assistance provided by the recipient.

8. A summary of its most recent 12-month performance period,

description of how its program satisfies the criteria set forth below

and justification for any funds that were deobligated.

H. Evaluation of past performance will be a subjective assessment

based on a consideration of all relevant facts and circumstances. The

most recent copy of the contract administration activity's Evaluation

Report must be provided.

1. Highly acceptable--The application must demonstrate a high

degree of success in satisfying all PTA Program requirements during the

most current 12-month performance period. The evaluation report must

substantiate that the applicant has an above average program.

2. Acceptable--The application must demonstrate that the applicant

has met all PTA Program requirements during the most recent 12-month

performance period. The evaluation report must substantiate that the

applicant has an adequate program.

3. Marginally acceptable--The application must demonstrate that the

applicant has satisfied most of the PTA Program requirements during the

most recent 12-month performance period. The evaluation report must

substantiate that the applicant has implemented most program

requirements.

4. Unacceptable--The applicant has fulfilled few of the PTA Program

requirements during the most recent 12-month performance period. The

evaluation report must substantiate that the applicant has an

inadequate program.

Note: Limit this discussion to 3 single-spaced, type-written

pages.

3-12 Administration

A. Cooperative agreements with state and local governments,

nonprofit organizations and Indian economic enterprises will be

assigned to the cognizant Defense Contract Management Command for

administration. Cooperative agreements with educational institutions

will be assigned to the Office of Naval Research for administration.

[[Page 8592]]

B. The organization having cognizance for postaward administration

will periodically review the recipient's performance under the

cooperative agreement to include:

1. management control systems;

2. financial management systems;

3. progress being made by the recipient in meeting its program

requirements; and

4. compliance with certifications, representations and other

performance factors. The cognizant Deputy for Small Business will be

the focal point for the Administrative Contracting Officer for small

business issues and for all recipient publication and training

requests.

C. For recipients 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 submit

one copy of any audit report that results from any audit performed

pursuant to the requirements of the PTA cooperative agreement 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.

[FR Doc. 96-5062 Filed 3-4-96; 8:45 am]

BILLING CODE 3620-01-P