Solicitation of Applications for the Minority Business Opportunity Committee (MBOC) Program

DEPARTMENT OF COMMERCE

Minority Business Development Agency

[Docket No. 980901228-8228-01]

RIN: 0640-ZA04

Solicitation of Applications for the Minority Business

Opportunity Committee (MBOC) Program

AGENCY: Minority Business Development Agency, Commerce.

ACTION: Notice.

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SUMMARY: In accordance with Executive Order 11625 and 15 U.S.C. 1512,

the Minority Business Development Agency (MBDA) is soliciting

competitive applications from organizations seeking to operate Minority

Business Opportunity Committees (MBOCs). All information required to

submit a cooperative agreement application by eligible applicants is

contained in this announcement and in the Competitive Application

Package (CAP).

The MBDA provides business development services to minority

entrepreneurs through different types of programs. Each program is

designed to focus on the unique business problems of a specific market.

MBDA's programs from a national business delivery network that

addresses needs of minority entrepreneurs throughout the United States.

The MBOC program is designed to provide minority business owners with

enhanced access to the marketplace by identifying marketing and sales

opportunities, financing resources, potential joint venture partners,

and otherwise assisting minority firms to position themselves for long-

term growth. State or local government entities, American Indian

Tribes, colleges, universities, and/or non-profit organizations are

eligible to operate MBOCs. For-profit organizations are not eligible to

operate MBOCs.

DATES: Complete applications for the MBOC program must be: (1) Mailed

(USPS postmark) by October 8, 1998 to the address below; or (2)

received by MBDA at the address below no later than 5 p.m. Eastern

Daylight Time. Applications postmarked later than the closing date or

received after the closing date will not be considered. Anticipated

time for processing of applications is 90 days. MBDA anticipates that

awards will be made with start dates of January 1, 1999.

ADDRESSES: Applicants must submit one signed original plus two (2)

copies of the application, including all information required by the

CAP. Completed application packages must be submitted to: Minority

Business Opportunity Committee Program Manager, Office of Executive

Secretariat, HCHB, Room 5073, Minority Business Development Agency,

U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington,

DC 20230.

If the application is hand-delivered by the applicant or its

representative, it must be delivered to Room 1874, which is located at

Entrance #10, 15th Street, NW, between Pennsylvania and Constitution

Avenues. Unsigned applications will be considered non-responsive and

will be returned to the applicant. Failure to submit other required

information may result in points being deducted from an applicant's

score.

FOR FURTHER INFORMATION CONTACT:

For further information and a Competitive Application Package contact

Stephen Boykin, the MBOC Program Manager, at (202) 482-1712.

SUPPLEMENTARY INFORMATION:

Authority: Exeuctive Order 11625 and 15 U.S.C. 1512.

Catalogue of Federal Domestic Assistance (CFDA): 11.803, Minority

Business Opportunity Committees.

Program Description: The MBDA has established the MBOC Program as a

vehicle for providing timely market leads, access to resources, and

current business information to minority businesses seeking to market

effectively their products and services within the local economy. In

accomplishing this purpose, MBOCs help to bring regional coordination

and synergy to the minority business development efforts taking place

within an applicant-defined geographical service area.

MBOCs are comprised of local or regional governments, business and

industry leaders, as well as representatives of organizations that

conduct substantial purchasing within the regional economy. These

organizations may include large corporations located or having regional

headquarters within the region, government agencies at the Federal,

State, and local levels, banking and

[[Page 47481]]

financial institutions, chambers of commerce, community development

organizations, training organizations, trade associations, economic

development groups, quasi-public entities such as transit authorities,

ports, stadium authorities, and public utilities, and non-profit

entities such as hospitals, colleges, and universities. Industries

represented on the MBOC should include, where appropriate,

transportation, construction, travel and tourism, high technology,

health care, telecommunications, manufacturing, retailing, and any

other sector of the local economy which generates, or has the potential

to generate, sales, and business ownership opportunities for minority

entrepreneurs. The participation on the MBOC of a broad cross-section

of government and industry executives helps to ensure that minority

businesses have access to a breadth of information concerning available

market opportunities. The purpose of the MBOC Program is to promote the

full inclusion of the minority business sector in the overall economy.

Applicants should first include a description in their proposals

showing how they intend to establish a detailed organizational and

functional framework for the management and operation of the MBOC. The

applicant must demonstrate how the operational structure of the MBOC

will function and be financed. For example, the applicant should

indicate how a program will be developed to recruit members from

Federal, state, local and private sector organizations, and how the

applicant intends to operate the MBOC in terms of meetings and the

establishment of subcommittees or task forces. In addition, the

selection of key personnel, such as a chairperson and executive

director to manage the MBOC on a day-to-day basis, is important. The

applicant may also indicate how it intends to encourage member

organizations to enter into goals for the utilization of minority

business enterprises and to track performance in meeting those goals.

In designing its MBOC proposal, the applicant must note that there

are six core areas in which activities must be conducted. MBOC

encourages applicants to submit proposals that are ``tailored'' to

their defined markets, and that display the imagination and innovation

of the applicant in carrying out activities in the core areas to obtain

the maximum business development impact for minority firms. While

examples of activities that might be conducted under each of the core

areas are mentioned, applicants are encouraged to submit innovative

proposals setting forth the activities which the applicant plans to

conduct under the core areas.

(1) Access to Markets--MBOCs should promote relationship-building

and the sharing of information between organizations in the applicant-

defined geographical service area which conduct substantial purchasing

activity, and minority businesses that provide the products or services

sought by these organizations. MBOCs must make full use of the Agency's

Phoenix and Opportunity databases (OMB No. 0640-002) by requiring

participating businesses to enter the requisite information into the

systems. The MBOCs will serve as a clearinghouse both for minority

companies seeking timely market leads for available contract

opportunities, and for mainstream institutions seeking to identify

particular categories of minority suppliers. Activities in this core

area may include facilitating contract awards to minority businesses by

collecting and disseminating information to the minority business

community concerning available market opportunities, and engaging in

matchmaking between corporate and governmental purchasers and minority-

owned suppliers.

(2) Access to Capital--MBOCs should work to create an environment

within the finance and investment community that fairly values the

business assets of minority-owned companies. Whether these assets are

in the form of property, plants or equipment located in minority

communities, a workforce which consists largely of minority employees,

or the character and credit-worthiness of an individual minority

business owner, the MBOC should help to ensure that the capital markets

evaluate these assets objectively, and provide minority companies with

access to capital on a nondiscriminatory basis. In addition to helping

to ensure the availability of debt financing sources such as commercial

banks and government-sponsored loan and/or loan guaranty programs, MBOC

activities should include assisting in the identification of sources of

equity capital for minority firms, such as venture capital funds,

institutional investors (insurance companies, pension funds, etc.), and

high net-worth individuals.

(3) Sustained Advocacy on Behalf of the Minority Business Sector--

MBOCs should play a clear and highly visible role in articulating the

benefits to the economic region which are derived from the full

participation of the minority business sector. MBOC leadership,

including government officials, private executives, and other

designated representatives of the MBOC should conduct media outreach,

disseminate economic data, and otherwise advocate for inclusion of

minority businesses in the region's economic mainstream, including

exporting. Activities in this area may include the establishment of a

newsletter, conducting workshops, holding receptions, making media

appearances, participating in Minority Enterprise Development Week

activities, and ensuring that achievements of the MBOC are communicated

regularly to the corporate community, elected officials, and trade and

industry groups. MBOCs should sponsor workshops and seminars on topics

that promote utilization of minority-owned companies within the

regional economy. Such activities may be directed at minority

businesses, for example, arranging and promoting workshops on marketing

to corporate and institutional clients, or may be directed at the

mainstream business community, such as workshops on structuring

diversity programs for procurements, or both. Workshops, conferences,

and seminars should be designed by the MBOC leadership based on those

topics which best address the needs and opportunities present within

that MBOC's particular service area. For instance, an MBOC might

participate in or develop educational activities to promote export

opportunities for minority businesses. In addition to being a

consistant vehicle for the promotion to the mainstream business

community of the economic benefits of a healthy minority business

sector, the MBOC should develop recommendations for changing

procurement, banking, or other practices which may impede the growth of

minority firms.

(4) Business Ownership Opportunities--Lack of succession, corporate

divestitures, and other fortuitous circumstances often create

opportunities for entrepreneurs to acquire companies as going concerns.

Key to identifying such opportunities is establishing relationships

with corporate decisionmakers, banking executives, suppliers and others

having first-hand knowledge of such companies' conditions. The MBOC

should serve as a vehicle for bringing members of the minority and non-

minority business communities together through the following

activities: networking, subcommittee assignments, and other activities

designed to promote the sharing of information. In addition, the MBOC

should assist minority executives and managers within the

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corporate sector who have an interest in leveraging their current

expertise through business acquisitions.

(5) Youth Entrepreneurship--In light of the continuing low

formation rate of minority business, MBOCs should direct some of their

activities to promoting youth entrepreneurship. MBOCs should, wherever

possible, sponsor activities designed to cultivate the entrepreneurial

spirit in minority youth between the ages of 14 and 18, and to make

them view business ownership as something realistically attainable.

(6) Resource Development--The MBOC should maintain a constant

inventory of the various resource providers within the project's

service area that offer services that can assist minority companies.

Such resource providers may include banks and other financial

institutions, bonding companies, business consultants, chambers of

commerce and other networking groups, trade associations active in all

viable local industries, state, local and private technical assistance

providers, etc.

In accordance with OMB Circular A-110 and 15 CFR part 24, selected

recipients must manage and monitor functions and activities supported

by the financial award. Recipients will be required to use program

performance measures in quarterly reports and to provide an end-of-year

assessment of the accomplishments of the project using these measures.

Criteria to measure MBOC program performance must include, but are not

limited to, the following:

1. The establishment of the MBOC and holding regularly scheduled

meetings;

2. The number of contracting opportunities disseminated;

3. The generating of actual procurement opportunities;

4. The number of procurement matches effected through the Phoenix-

Opportunity databases;

5. The identifying of sources of financing, both debt and equity,

for capital development;

6. The identifying of business acquisition opportunities;

7. The collecting and analyzing of data on MBOC members and

participants to allow tracking of minority business activities;

8. The sponsoring or participating in events, workshops,

conferences, and seminars, either directly or in partnership with other

public and/or private sector organizations to promote minority

business;

9. The promoting of youth entrepreneurship through a series of

events, conferences or workshops;

10. The providing to minority businesses of information on the

resources available to assist them.

Applicants should be mindful of these performance measures and

should use them when estimating projected project results in their

proposals. Applicants are also encouraged to develop and utilize

additional performance measures they find meaningful to demonstrate the

success of innovative techniques and methodologies. Finally, applicants

must include a detailed workplan that delineates a schedule of proposed

activities and milestones for implementing the tasks indicated above

within the award.

Funding Availability: MBDA anticipates that approximately $2.5

million will be available in FY 1999 for Federal assistance under this

program. Applicants are hereby given notice that funds have not yet

been appropriated for this program. In no event will MBDA or the

Department of Commerce be responsible for proposal preparation costs if

this program fails to receive funding or is canceled because of other

agency priorities.

Financial assistance awards under this program may range from

$1000,000 to $250,000 in Federal funding per year based upon the size

of the market and its need for MBDA resources as evidenced by applicant

proposals. An applicant may request up to $750,000 in total Federal

support over a period of three years. Applicants must submit project

plans and budgets for three years. The annual awards must have Scopes

of Work that are clearly severable and can be easily separated in

annual increments of meaningful work which represent solid

accomplishments if prospective funding is not made available to the

Applicant. Projects will be funded for no more than one year at a time.

Funding for subsequent years will be at the sole discretion of the

Department of Commerce (DoC) and will depend on satisfactory

performance by the recipient and the availability of funds to support

the continuation of the project.

Matching Requirements: Cost sharing of at least 30% is required.

Additional cost sharing is encouraged. Cost sharing may be in the form

of cash, third party in-kind contributions, non-cash applicant

contributions or combinations thereof. There share may also be

contributed by local, state, and private sector organizations. Some

applicants may want to apply jointly for an award to operate an MBOC.

Type of Funding Instrument: Financial assistance awards in the form

of cooperative agreements will be used to fund this program. MBDA's

substantial involvements with recipients will include performing the

following duties to further the MBOC's objectives:

1. Post-Award Conferences

MBDA will conduct post-award conferences for all new MBOC awards in

order that each MBOC have a clear understanding of the program and its

objectives. The Agency will:

Provide an MBDA Director to the MBOC.

Orient MBOC staff.

Provide and explain program reporting requirements and

procedures.

Identify available resources that may enhance the

capabilities of the MBOC.

Provide detailed information about MBDA's Phoenix-

Opportunity databases.

2. Networking, Promoting and Information Exchanges

MBDA will provide the following:

Access to the Phoenix-Opportunity databases.

Promote the exchange of new business opportunity

information within the MBDA-funded system.

Help promote special events at the local, state and

national levels in celebration of Minority Enterprise Development Week.

3. Project Management

Monitor the performance of the MBOC. This will include an

onsite review, when deemed necessary and appropriate by the Regional

Office, to verify MBOC performance. MBDA will then provide a report of

the findings and recommendations for improvement, if appropriate.

Approve qualifications of key MBOC staff.

Eligibility Criteria: State or local government entities, American

Indian Tribes, colleges, universities, and/or non-profit organizations

are eligible to operate MBOCs. Experience has demonstrated that public

and quasi-public entities such as these are best positioned within the

local market to coordinate the voluntary participation of corporate and

government officials which is so critical to an MBOC's success. For-

profit organizations are not eligible to operate MBOCs.

Award Period: The total project award period is three (3) years.

Funding will be provided annually at the discretion of MBDA and the

Department of Commerce, and will depend upon satisfactory performance

by the recipient and availability of funds to continue the project.

Project proposals accepted for funding will not compete for funding in

subsequent budget periods within the approved project award period.

Publication of this notice

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does not obligate the Department of Commerce or MBDA to award any

specific cooperative agreement or to obligate all or any part of

available funds.

Indirect Costs: The total dollar amount of the indirect costs

proposed in an application under this program must not exceed the

indirect cost rate negotiated and approved by a cognizant Federal

agency prior to the proposed effective date of the award or 100 percent

of the total proposed direct costs dollar amount in the application,

whichever is less.

Application Forms and Package: Standard Forms 424, Application for

Federal Assistance; 424A, Budget Information--Non-Construction

Programs; and 424B, Assurances--Non-Construction Programs, (Rev. 4-92);

and other Department of Commerce forms shall be used in applying for

financial assistance. These forms may be obtained by contacting MBDA as

described in the ``CONTACT'' section above. Applicants and recipients

are subject to all requirements of the CAP.

Project Funding Priorities: MBDA is especially interested in

receiving innovative proposals that focus on the following: (1)

Identifying and working to eliminate barriers which reduce the access

of minority businesses to markets and capital; (2) identifying and

working to meet the special needs of minority businesses at they seek

to enter the export marketing community; (3) promoting the

understanding and use of Electronic Commerce by minority businesses.

Evaluation Criteria: Proposals will be evaluated based on the

following criteria:

(1) Applicant Capability (25%). Considers, among other things,

knowledge of economic region, i.e., minority business demographics and

an assessment of the community's need, prior experience in the minority

business community, and relationships (ties) with organizations from

which members of the MBOC will be recruited. Includes an assessment of

the number, qualifications, experience, and proposed roles of staff who

will administer the MBOC program. Qualifications of the chairperson and

executive officer of the MBOC are particularly important. Position

descriptions should be included as part of the application.

(2) Techniques and Methodologies (40%). Includes the applicant's

plan on how to carry out the MBOC work requirements relating to

activities in the six core areas, the establishment and operation of

the MBOC itself, and the applicant's proposed strategies for overcoming

traditional barriers to the success of minority businesses. The

applicant must provide a detailed discussion relating its plan to the

particular resources and business capabilities of its service area.

Applicants and recipients are subject to all requirements in the CAP.

(3) Creativity and Innovation (15%). Can include unique or novel

approaches to solving the problems of minority businesses, the manner

in which activities are customized to meet the special economic needs

of the MBOC's service area, and creativity in the way the applicant

proposes to bring together the diverse components which are necessary

for the success of the MBOC.

(4) Proposed Budget/Cost (20%). Includes the reasonableness,

allowability, and allocability of costs. Cost sharing proposed by the

applicant is also important, particularly if the applicant proposes

cost sharing in excess of 30%.

An application must receive at least a 70% average score of all

four criteria to be considered programmatically acceptable and

responsive.

Selection Procedures: Each application will receive an independent,

objective review by a panel qualified to evaluate the applications

submitted. The independent review panel, consisting of at least three

individuals, will review all applications based on the criteria above.

The independent review panel will evaluate and rank the proposals. The

Director of MBDA makes the final recommendations to the Department of

Commerce Grants Officer regarding the funding of applications, taking

into account the following selection criteria:

(1) The evaluations and rankings of the independent review panel;

(2) The degree to which applications address MBDA priorities as

established under the project funding priorities listed above;

(3) The availability of funding;

(4) The national geographic distribution of the proposed awards.

MBDA anticipates placing at least two MBOCs in each of the Agency's

five Regions; and

(5) The mixture of large and small economic regions/markets/cities.

The amount of funds awarded to each recipient, the scope of

programmatic activities, and clarifications and/or correction of errors

will be determined and/or conducted in preaward negotiations between

the applicant, the Grants Officer, and the MBDA Program Officer.

Other Requirements

(1) Purchase of American-Made Equipment and Products: Applicants

are hereby notified that they are encouraged, to the greatest extent

practicable, to purchase American-made equipment and products with

funding provided under this program.

(2) Paperwork Reduction Act: This notice involves collections of

information subject to the Paperwork Reduction Act, which have been

approved by OMB under OMB control numbers 0348-0043, 0348-0044, 0348-

0040, and 0348-0046. 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.

(3) Federal Policies and Procedures--Recipients and subrecipients

are subject to all Federal laws and Federal and DoC policies,

regulations, and procedures applicable to Federal financial assistance

awards.

(4) Past Performance--Unsatisfactory performance under prior

Federal awards may result in an application not being considered for

funding.

(5) Preaward Activities--If applicants incur any costs prior to an

award being made, they do so solely at their own risk of not being

reimbursed by the Government. Notwithstanding any verbal or written

assurance that may have been received, there is no obligation on the

part of DoC to cover preaward costs.

(6) 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.

(7) Delinquent Federal Debts--No award of Federal funds shall be

made to an applicant who has an outstanding delinquent Federal debt

until either:

i. The delinquent account is paid in full,

ii. A negotiated repayment schedule is established and at least one

payment is received, or

iii. Other arrangements satisfactory to DoC are made.

(8) Name Check Review. All non-profit and for-profit applicants are

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

reveal if any key individuals associated with the applicant have been

convicted of or are presently facing criminal charges such as fraud,

theft, perjury, or other matters which significantly reflect on the

applicant's management honesty or financial integrity.

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(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:

i. 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;

ii. Drug-Free Workplace. Grantees (as defined at 15 CFR part 26,

Section 605) are subject to 15 CFR part 26, subpart F, ``Governmentwide

Requirements for Drug-Free Workplace (Grants)'' and the related section

of the certification form prescribed above applies;

iii. Anti-Lobbying. 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; and

iv. Anti-Lobbying Disclosures. Any applicant that has paid or will

pay for lobbying using any funds must submit an SF-LLL, ``Disclosure of

Lobbying Activities,'' as required under 15 CFR part 28, appendix B.

(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 complete 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) False Statements. A false statement on an 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.

(12) Intergovernmental Review. Applications under this program are

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

Federal Programs.''

(13) Executive Order 12866. It has been determined that this notice

is not significant for purposes of Executive Order 12866.

Dated: September 2, 1998.

Courtland Cox,

Director, Minority Business Development Agency.

[FR Doc. 98-24030 Filed 9-4-98; 8:45 am]

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