Special American Business Internship Training Program (SABIT)

DEPARTMENT OF COMMERCE

International Trade Administration

[Docket No. 971202287-7287-01]

Special American Business Internship Training Program (SABIT)

AGENCY: International Trade Administration, Commerce.

ACTION: Notice.

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SUMMARY: This notice announces availability of funds for the Special

American Business Internship Training Program (SABIT), for training

business executives (also referred to as ``interns'') from Russia. The

Department of Commerce, International Trade Administration (ITA)

established the SABIT program in September 1990 to assist the former

Soviet Union's transition to a market economy. Since that time, SABIT

has been matching business executives and scientists from the New

Independent States of the former Soviet Union (NIS) with U.S. firms

which provide them with three to six months of hands-on training in a

U.S. market economy.

Under the SABIT program, qualified U.S. firms will receive funds

through a cooperative agreement with ITA to help defray the cost of

hosting interns. ITA will interview and recommend eligible interns to

participating companies. Interns must come from Russia and be citizens

of the Russian Federation. The U.S. firms will be expected to provide

the interns with a hands-on, non-academic, executive training program

designed to maximize their exposure to management or commercially-

oriented scientific operations. At the end of the training program,

interns must return to Russia. All interns will be selected from a pre-

screened group of qualified mid-level managers; nominations from

outside of this group will not be accepted.

DATES: The closing date for applications is March 31, 1998. An original

and two copies of the application (Standard Form 424 (Rev. 4-92) and

supplemental material) are to be sent to the address designated in the

Application Kit and postmarked by the closing date. Applications will

be considered on a ``rolling'' basis as they are received, subject to

the availability of funds. If available funds are depleted prior to the

closing date, a notice to that effect will be published in the Federal

Register. Processing of complete applications takes approximately two

to three months. Competitive Application kits will be available from

ITA starting on January 23, 1998.

ADDRESSES: To obtain a copy of the Application Kit please E-mail:

[email protected] (please state which format, e.g.

WordPerfect 6.1), telephone (202) 482-0073,

facsimile (202) 482-2443 (these are not toll free numbers), or send a

written request with two self-addressed mailing labels to ``Application

Request'' The SABIT Program, HCHB Room 3319, U.S. Department of

Commerce, 14th Street and Constitution Avenue, NW., Washington, DC,

20230.

FOR FURTHER INFORMATION CONTACT: Liesel Duhon, Director, SABIT Program,

U.S. Department of Commerce, phone--(202) 482-0073, facsimile--(202)

482-2443. These are not toll free numbers. Only one copy of the

Application Kit will be provided to each organization requesting it,

but it may be reproduced by the requester.

SUPPLEMENTARY INFORMATION: SABIT exposes Russian business managers and

scientific managers to a completely new way of thinking in which

demand, consumer satisfaction, and profits drive production. Senior-

level interns visiting the U.S. for internship programs with public or

private sector companies will be exposed to an environment which will

provide them with practical knowledge for transforming their countries'

enterprises and economies to the free market. The program provides

first-hand, eye-opening experience to managers and scientists which

cannot be duplicated by American managers traveling to their

territories.

Business Executives

SABIT assists economic restructuring in Russia by providing top-

level business managers with practical training in American methods of

innovation and management in such areas as strategic planning,

financing, production, distribution, marketing, accounting,

wholesaling, and labor relations. This first-hand experience in the

U.S. economy enables interns to become leaders in establishing and

operating a market economy in Russia, and creates a unique opportunity

for U.S. firms to familiarize key executives from Russia with their

products and services.

Scientist Managers

SABIT provides opportunities for gifted scientists to apply their

skills to peaceful research and development in the civilian sector, in

areas such as defense conversion, medical research, and the

environment, and exposes them to the role of scientific research in a

market economy where applicability of research relates to business

success. Sponsoring firms in the U.S. scientific community also benefit

from exchanging information and ideas, and different approaches to new

technologies.

Funding Availability

Pursuant to section 632(a) of the Foreign Assistance Act of 1961,

as amended (the ``Act'') funding for the program will be provided by

the United States Agency for International Development (A.I.D). ITA

will award financial assistance and administer the program pursuant to

the authority contained in section 635(b) of the Act and other

applicable grant rules. The estimated amount of financial assistance

available for the program is $175,000. Additional funding is

anticipated at a future date in 1998. Funding Instrument and Project

Duration: Federal assistance will be awarded pursuant to a cooperative

agreement between ITA and the recipient firm. All internships are three

months; however, ITA reserves the right to allow an intern to stay for

a shorter period of time (no less than one month) if the U.S. company

agrees and the intern demonstrates a need for a shorter internship

based on his or her management responsibilities. ITA will reimburse

companies for the round trip international travel of each intern from

the intern's home city in Russia to the U.S. internship site, upon

submission to ITA of the paid travel invoice, payment receipt, or other

evidence of payment

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and the form SF-270, ``Request for Advance or Reimbursement.'' Travel

under the program is subject to the Fly America Act. ITA will reimburse

companies for up to $500 per month housing subsidy. Recipient firms

provide $30 per day directly to interns. ITA will reimburse recipient

firms for this stipend of $30 per day per intern for up to three months

as well as the actual price of the monthly housing, up to $500 per

month, upon submission by company of an end-of-internship report and

form SF-270. If the Russian Government pays for the international

airline travel, recipients will not be eligible for reimbursement for

airtravel. In general, each award will have a cap of $5,000 per intern

for total cost of airline travel, housing subsidy and stipend. ITA

reserves the right to allow an award to exceed this amount in cases of

unusually high costs, such as airfare from remote regions of Russia.

However, the total payment cannot exceed the award amount. There are no

specific matching requirements for the awards. Host firms, however, are

expected to bear the costs beyond those covered by the award,

including: visa fees, additional housing costs beyond the $500 housing

subsidy per month, insurance, any food and incidentals costs beyond $30

per day, any training-related travel within the U.S., and provision of

the hands-on training for the interns.

U.S. firms wishing to utilize SABIT in order to be matched with an

intern without applying for financial assistance may do so. Such firms

will be responsible for all costs, including travel expenses, related

to sponsoring the intern. However, prior to acceptance as a SABIT

intern, work plans and candidates must be approved by the SABIT

Program. Furthermore, program training will be monitored by SABIT staff

and evaluated upon completion of training.

Eligibility

Eligible applicants for the SABIT program will include any for

profit or non-profit U.S. corporation, association, organization or

other public or private entity. Agencies or divisions of the federal

government are not eligible.

Evaluation Criteria

Consideration for financial assistance will be given to those SABIT

proposals which:

(1). Demonstrate a commitment to the intent and goals of the

program to provide practical, on-the-job, non-academic, non-classroom,

training: in the case of manager interns, an appropriate management

training experience, or, in the case of scientific managers, a

practical, commercially-oriented scientific training experience.

(2). Respond to the priority needs of senior business managers and

scientists in Russia, as determined by ITA.

(3). Host firms must be solidly committed to interns' return to

Russia upon completion of the internships.

(4). Present a realistic work plan describing in detail the

training program to be provided to the SABIT intern(s). Work plans must

include the following:

(a). Whether Applicant is applying to host managers or scientific

managers, or both (and the number of each); (b). the duration of the

internship. As noted above, ITA reserves the right to allow an intern

with very senior management responsibilities to stay for a shorter

period (minimum of one month) if the U.S. company agrees and the intern

demonstrates a compelling need for a shorter internship based on his or

her management responsibilities; (c). the location(s) of the

internship; (d). the name, address, and telephone number of the

designated internship coordinator; (e). name(s) of division(s) in which

the intern(s) will be placed; (f). the individual(s) in the U.S.

company under whose supervision the intern will train; (g). the

proposed internship training activities. The components of the training

activities must be described in as much detail as possible, preferably

on a week-by-week basis. The description of the training activities

should include an accounting of what the intern's(s') duties and

responsibilities will be during the training; (h). the anticipated

housing arrangements to be provided for the intern(s). Note that

housing arrangements should be suitable for mid- and senior-level

professionals, and that each intern must be provided with a private

room.

(5). Include a brief objectives section indicating why the

Applicant wishes to provide an internship to a manager(s) or

scientist(s) from Russia, and how the proposed internship would further

the purpose of the SABIT program as described above.

(6). Provide a general description of the profile of the intern(s)

the Applicant would like to host, including: educational background;

occupational/professional background (including number of years and

areas of experience); size and nature of organization at which the

intern(s) is/are presently employed; preference for the region of

Russia where the intern(s) is/are employed; and whether Applicant is

open to sponsoring interns from a variety of Russian regions.

(7). Indicate whether Applicant organization operates in one or

more of the following business sectors: (a). Agribusiness (including

food processing and distribution, and agricultural equipment), (b).

Defense conversion, (c). Energy, (d). Environment (including

environmental clean-up), (e). Financial services (including banking and

accounting), (f). Housing, construction and infrastructure, (g).

Medical equipment, supplies, pharmaceuticals, and health care

management, (h). Product standards and quality control, (i).

Telecommunications, and (j). Transportation. Applicant proposal must

provide an explanation including description and extent of involvement

in the sector(s). While Applicants involved in any industry sector may

apply to the program, priority consideration is given to those

operating in the above sectors.

Evaluation criteria 1-6 will be weighted equally. ITA does not

guarantee that it will match Applicant with the profile provided to

SABIT.

Selection Procedures

Each application will receive an independent, objective review by

one or more three or four-member ITA review panels qualified to

evaluate applications submitted under the program. Applications will be

evaluated on a competitive, ``rolling'' basis as they are received in

accordance with the selection evaluation set forth above. Awards will

be made to those applications which successfully meet the selection

criteria. If funds are not available for all those applications which

successfully meet the criteria, awards will be made to the first

applications received which successfully do so. ITA review panel(s)

reserve(s) the right to reject any application; to limit the number of

interns per applicant; to waive informalities and minor irregularities

in applications received; and to consider other than competitive

procedures to distribute assistance under this program and in

accordance with the law. ITA review panel(s) reserve(s) the right to

make awards based on diversity of U.S. geographic and organization

size. Recipients may be eligible, pursuant to approval of an amendment

of an active award, to host additional interns under the program. ITA

reserves the right to evaluate applicants based on past performance.

The Director of the SABIT Program is the final selecting official for

each award.

Additional Information

Applicants must submit: (1) Evidence of adequate financial

resources of Applicant organization to cover the costs involved in

providing an

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internship(s). As evidence of such resources, Applicant should submit

financial statements audited by an outside organization or an annual

report including such statements. If these are not available, a letter

should be provided from the Applicant's bank or outside accountant

attesting to the financial capability of the firm to undertake the

scope of work involved in training an intern under the SABIT program.

(2) Evidence of a satisfactory record of performance in grants,

contracts and/or cooperative agreements with the Federal Government, if

applicable. (Applicants who are or have been deficient in current or

recent performance in their grants, contracts, and/or cooperative

agreements with the Federal Government shall be presumed to be unable

to meet this requirement). (3) A statement that the Applicant will

provide medical insurance coverage for interns during their

internships. Recipients will be required to submit proof of the

interns' medical insurance coverage to the Federal Program Officer,

before the interns' arrivals. The insurance coverage must include an

accident and comprehensive medical insurance program as well as

coverage for accidental death, emergency medical evacuation, and

repatriation.

Other Requirements

All applicants are advised of the following:

1. No award of Federal funds shall be made to an Applicant who has

an outstanding delinquent Federal debt until either the delinquent

account is paid in full, a negotiated repayment schedule is established

and at least one payment is received, or other arrangements

satisfactory to the Department of Commerce (DOC) are made.

2. A false statement on the application is grounds for denial or

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

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

3. Recipients and subrecipients are subject to all Federal laws and

Federal and Departmental regulations, policies and procedures

applicable to financial assistance awards.

4. Participating companies will be required to comply with all

relevant U.S. tax and export regulations. Export controls may relate

not only to licensing of products for export, but also to technical

data transfer.

5. Applications under this program are not subject to Executive

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

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

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

Notwithstanding any verbal or written assurance that may have been

received, there is no obligation on the part of DOC to cover pre-award

costs.

7. Past performance: Unsatisfactory performance by an applicant

under prior Federal awards may result in an application not being

considered for funding.

8. No obligation for future funding: 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.

9. Primary Applicant Certifications: All primary applicants must

submit a completed Form CD-511, ``Certifications Regarding Debarment,

Suspension and Other Responsibility Matters; Drug-Free Workplace

Requirements and Lobbying,'' and the following explanations are hereby

provided:

(a) Nonprocurement Debarment and Suspension: Prospective

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

15 CFR part 26, ``Nonprocurement Debarment and Suspension'' and the

related section of the certification form prescribed above applies.

(b) Drug Free Workplace: Grantees (as defined at 15 CFR part 26,

Section 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.

(c) Anti-Lobbying: Funds provided under the SABIT program may not

be used for lobbying activities. Persons (as defined at 15 CFR part 28,

Section 105) are subject to the lobbying provisions of 31 U.S.C. 1352,

``Limitation on use of appropriated funds to influence certain Federal

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

the certification form prescribed above applies to applications/bids

for grants, cooperative agreements, and contracts for more than

$100,000, and loans and loan guarantees for more than $150,000, or the

single family maximum mortgage limit for affected programs, whichever

is greater.

(d) Anti-Lobbying Disclosures: Any applicant that has paid or will

pay for lobbying in connection with this award using any funds must

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

under 15 CFR part 28, Appendix B.

10. Lower Tier Certifications: Recipients shall require applicants/

bidders for subgrants, contracts, subcontracts, or other lower tier

covered transactions at any tier under the award to submit, if

applicable, a completed Form CD-512, ``Certifications Regarding

Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier

Covered Transactions and Lobbying'' and disclosure form, SF-LLL,

``Disclosure of Lobbying Activities.'' Form CD-512 is intended for the

use of recipients and should not be transmitted to DOC. SF-LLL

submitted by any tier recipient or subrecipient should be submitted to

DOC in accordance with the instructions contained in the award

document.

11. Indirect Costs: Indirect costs are not allowed under the SABIT

program.

12. Applicants are hereby notified that any equipment or products

authorized to be purchased with funding provided under this program

must be American-made to the maximum extent feasible.

13. The following statutes apply to this program: Chapter 11 of

Part I of the Foreign Assistance Act of 1961, as amended, including

section 498A (b), regarding ineligibility for assistance; provisions in

annual Foreign Operations, Export Financing, and Related Programs

Appropriations Act, including the following provisions contained in

Public Law 103-87: Use of American Resources (Section 559 of the

Foreign Operation, Export Financing, and Related Programs

Appropriations Act, 1995, Pub. L. 103-87); Impact on Jobs in the United

States (Section 545 of the Foreign Operation, Export Financing, and

Related Programs Appropriations Act, 1995, Pub. L. 103-87); Bumpers

Amendment (Section 513(b) of the Foreign Operations, Export Financing,

and Related Programs Appropriations Act, 1994, Pub. L. 103-87);

Lautenberg Amendment (Section 513(b) of the Foreign Operations, Export

Financing, and Related Programs Appropriations Act, 1994, Pub. L. 103-

87); and Section 660(a) of the Foreign Assistance Act of 1961, as

amended.

14. Audit Requirements: The DOC Office of Inspector General has

authority under the Inspector General Act of 1978, as amended, to

conduct an audit of any DOC award at any time.

15. Payments. As required by the Debt Collections Improvement Act

of 1996, all Federal payments to award recipients pursuant to this

announcement will be made by electronic funds transfer.

16. The collection of information is approved by the Office of

Management and Budget, OMB Control Number 0625-0225. Public reporting

for this collection of information is estimated to

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be three hours per response, including the time for reviewing

instructions, and completing and reviewing the collection of

information. All responses to this collection of information are

voluntary, and will be provided confidentially to the extent allowed

under the Freedom of Information Act. Notwithstanding any other

provision of law, no person is required to respond to nor shall a

person be subject to a penalty for failure to comply with a collection

of information subject to the requirements of the Paperwork Reduction

Act unless that collection of information displays a current valid OMB

Control Number. Send comments regarding the burden estimate or any

other aspect of this collection of information, including suggestions

for reducing this burden, to the Reports Clearance Officer,

International Trade Administration, Department of Commerce, Room 4001,

14th and Constitution Ave., N.W., Washington, D.C. 20230.

Dated: January 20, 1998.

Liesel C. Duhon,

Director, SABIT Program.

[FR Doc. 98-1618 Filed 1-22-98; 8:45 am]

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