Grants and cooperative agreements; availability, etc.: Minority business opportunity committee program,

[Federal Register: September 8, 1998 (Volume 63, Number 173)]

[Notices]

[Page 47480-47484]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr08se98-50]

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.

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

[[Page 47482]]

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:

   ‹bullet› Provide an MBDA Director to the MBOC.

   ‹bullet› Orient MBOC staff.

   ‹bullet› Provide and explain program reporting requirements and procedures.

   ‹bullet› Identify available resources that may enhance the capabilities of the MBOC.

   ‹bullet› Provide detailed information about MBDA's Phoenix- Opportunity databases.

2. Networking, Promoting and Information Exchanges

   MBDA will provide the following:

   ‹bullet› Access to the Phoenix-Opportunity databases.

   ‹bullet› Promote the exchange of new business opportunity information within the MBDA-funded system.

   ‹bullet› Help promote special events at the local, state and national levels in celebration of Minority Enterprise Development Week.

3. Project Management

   ‹bullet› 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.

   ‹bullet› 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

   [[Page 47483]]

   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.

   [[Page 47484]]

   (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. 98-24030Filed9-4-98; 8:45 am]

   BILLING CODE 3510-21-M