Special American Business Internship Training Program (SABIT)

DEPARTMENT OF COMMERCE

International Trade Administration

[Docket No. 980930252-8252-01]

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 and scientists (also referred to as ``interns'')

from the NIS. 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 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 may be from any of the following

Independent States: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan,

Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and

Uzbekistan. 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 the NIS.

DATES: The closing date for applications is January 29, 1999. 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 no later than 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. All awards are expected to be

made by May 1, 1999.

ADDRESSES: Request for Applications: Competitive Application kits will

be available from ITA starting on the day this notice is published. 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. Only one copy of

the Application Kit will be provided to each organization requesting

it, but it may be reproduced by the requester.

FOR FURTHER INFORMATION CONTACT: Liesel C. Duhon, Director, SABIT

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

facsimile--(202) 482-2443. These are not toll free numbers.

SUPPLEMENTARY INFORMATION: SABIT exposes NIS business managers and

scientists 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.

Managers: SABIT assists economic restructuring in the NIS 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 the NIS, and creates a

unique opportunity for U.S. firms to familiarize key executives from

the NIS with their products and services. Sponsoring U.S. firms will

benefit by establishing relationships with key managers in similar

industries who are uniquely positioned to assist their U.S. sponsors do

business in the Independent States.

Scientists: 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.

The Special American Business Internship Training program's Catalog

of Federal Domestic Assistance (CFA) number is 11.114.

Funding Availability: Pursuant to section 632(a) of the Foreign

Assistance Act of 1961, as amended (the ``Act'')

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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 $ 2 million. At least $800,000 of that amount is reserved

for U.S. organizations which host scientists. Additional funding may

become available at a future date.

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 to six 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

the NIS to the U.S. internship site, upon submission to ITA of the paid

travel invoice, payment receipt, or other evidence of payment and the

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

program is subject to the Fly America Act. 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 six months, upon

submission by company of an end-of-internship report and form SF-270.

Recipient firms provide housing for the interns; ITA will reimburse

recipient firms for up to $500 per month for housing costs, at the same

time as the stipend, and upon submission by company of an end-of-

internship report and form SF-270. In general, each award will have a

cap of $10,500 per intern for total cost of airline travel, stipend and

housing costs. 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 the NIS. 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, 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

all for profit or non-profit U.S. corporations, associations,

organizations or other public or private entities. Agencies or

divisions of the federal government are not eligible.

Project Funding Priorities: Applicant proposal must provide an

explanation, including description and extent of involvement, in

priority business sector(s). While Applicants involved in any industry

sector may apply to the program, priority consideration is given to

those operating in the following 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, (j). Transportation and (k) Biotechnology.

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 scientist interns, a practical,

commercially-oriented scientific training experience. Include a brief

objectives section indicating why the Applicant wishes to provide an

internship to a manager(s) or scientist(s) from the NIS, and how the

proposed internship would further the purpose of the SABIT program as

described above. Also, the Applicant should note how the internship to

be provided will respond to the priority needs of senior business

managers and scientists in the NIS, as determined by ITA.

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

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

include 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 account of what the intern's(s')

duties and responsibilities will be during the training.

(3). The application should also have a section noting: (a).

Whether Applicant is applying to host managers or scientists, or both

(and the number of each); (b). the duration of the internship; (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 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; (h). a statement that the host firm is

solidly committed to interns' return to their own countries upon

completion of the internships.

(4). 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 the

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

to sponsoring interns from a variety of NIS countries.

Evaluation criteria 1-4 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

reserves the right to reject any application; to limit the number of

interns per applicant; and to waive informalities and minor

irregularities in applications received.

[[Page 59940]]

The final selecting official reserves the right to make awards based on

U.S. geographic and organization size diversity among applicants, as

well as to consider priority business sectors (listed in Project

Funding Priorities, above) when making awards. 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 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. All primary applicants must also submit a completed Standard

Form 424, ``Application for Federal Assistance'' and a Standard Form

424B, ``Assurances--Non-Construction Programs.'' Form CD-511 and

Standard Forms 424 and 424B are included in the Application Kit

supplied by the SABIT office.

11. 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.

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

program.

13. 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 greatest extent practicable.

14. The following statutes apply to this program: Section 907 of

the FREEDOM Support Act, Public Law 102-511, 22 U.S.C. 5812 note

(Restriction on Assistance to the Government of Azerbaijan); 7 U.S.C.

Sec. 5201 et seq. (Agricultural Competitiveness and Trade--the Bumpers

Amendment); The Foreign Assistance Act of 1961, as amended, including

Chapter 11 of Part I, section 498A (b) Public Law 102-511, 22 U.S.C.

2295a(b), (regarding ineligibility for assistance); 22 U.S. C. 2420(a),

Section 660(a) of The Foreign Assistance Act of 1961, as amended

(Police Training

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Prohibition); and provisions in the annual Foreign Operations, Export

Financing, and Related Programs Appropriations Acts, concerning Use of

American Resources, Impact on Jobs in the United States and Commerce

and Trade (see, e.g., Secs. 546, 538 and 513 respectively of the

Foreign Operations, Export Financing, and Related Appropriations Act,

1998, Public Law 105-118).

15. 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.

16. 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.

17. 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 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 protected from

disclosure 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 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, DC

20230.

FOR FURTHER INFORMATION CONTACT: Special American Business Internship

Training, International Trade Administration, at (202)482-0073. This is

not a toll free-number.

Dated: November 3, 1998.

Liesel C. Duhon,

Director, SABIT Program.

[FR Doc. 98-29791 Filed 11-5-98; 8:45 am]

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