2017_SCBGP_RFA.pdf

OMB No. 0581‐0240

Specialty Crop Block Grant Program

Fiscal Year 2017 Request for Applications

Funding Opportunity Number: USDA-AMS-TM-SCBGP-G-17-0003

Publication Date: March 2, 2017

Application Due Date: 11:59 PM Eastern Time on June 7, 2017

Program Solicitation Information

Funding Opportunity Title: Specialty Crop Block Grant Program – Farm Bill

Funding Opportunity Number: USDA-AMS-TM-SCBGP-G-17-0003

Announcement Type: Initial

Catalog of Federal Domestic Assistance (CFDA) Number: 10.170

Dates: Applications must be received by 11:59 p.m. Eastern Time on June 7, 2017, through Grants.gov. Applications received after this deadline will not be considered for funding.

Executive Summary: The U.S. Department of Agriculture (USDA), AMS, requests applications for the fiscal year (FY)

2017 Specialty Crop Block Grant Program (SCBGP) to award grants to eligible State departments of agriculture to carry out projects that solely enhance the competitiveness of specialty crops. Approximately $60.6 million, less USDA administrative costs, is available to fund applications under this solicitation.

This announcement identifies the eligibility criteria for SCBGP projects and applicants, and the application forms and associated instructions needed to apply for a SCBGP award.

Stakeholder Input: The Agricultural Marketing Service (AMS) seeks your comments about this Request for

Applications (RFA). We will consider the comments when we develop the next RFA for the program. Submit written stakeholder comments by the deadline set forth in the DATES portion of this Notice via e-mail to:

Scblockgrants@ams.usda.gov. (This e-mail address is intended only for receiving comments regarding this RFA and not requesting information or forms.) In your comments, please state that you are responding to the Specialty Crop

Block Grant Program RFA.

https://www.cfda.gov/index?s=program&mode=form&tab=core&id=b7a06eb14d66f0bfc9b849d814b68bcf http://www.grants.gov/ mailto:Scblockgrants@ams.usda.gov

TABLE OF CONTENTS

1.0 Funding Opportunity Description

1.1 Legislative Authority

1.2 Purpose

1.3 Project Types

1.4 Development of Proposals

2.0 Award Information

2.1 Type of Federal Assistance

2.2 Type of Applications

2.3 Available Funding

2.4 Federal Award Period Duration

2.5 Block Grant Amounts Available to Each Applicant

3.0 Eligibility Information

3.1 Eligible Applicants

3.2 Solely Enhance the Competitiveness of U.S. or U.S. Territory Grown Specialty Crops

3.3 Benefit More Than One Product or Organization

3.4 Cost-Sharing and Matching

3.5 Performance Measures

3.6 Projects Attempting to Disparage the Work of Another Organization

3.7 Supplanting

4.0 Application and Submission Information

4.1 Obtaining an Application Package

4.2 Application Checklist

4.3 Content and Form of Application Submission

4.4 Submission Date and Time

4.5 Intergovernmental Review

4.6 Funds Not Applied For

4.7 Funding Restrictions

4.8 Other Submission Requirements

5.0 Application Review Information

6.0 Award Administration Information

6.1 Award Notices

6.2 Administrative and National Policy Requirements

6.3 Acceptance of an Award

6.4 Reporting

7.0 Agency Contacts

7.1 SCBGP Lead Grants Management Specialist

7.2 Grants Management Specialists

7.3 Address

8.0 Other Information

8.1 Release of Application Information

8.2 Equal Opportunity Statement

8.3 Prohibition on Using Funds under Grants and Cooperative Agreements with Entities that Require Certain

Internal Confidentiality Agreements

1.0 FUNDING OPPORTUNITY DESCRIPTION

1.1 LEGISLATIVE AUTHORITY

Legislative authority is provided under section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note) and amended under section 10010 of the Agricultural Act of 2014, Public Law 113-79 (the Farm Bill). SCBGP is currently implemented under 7 CFR 1291 (published March 27, 2009; 74 FR 13313).

1.2 PURPOSE

The Specialty Crop Block Grant Program (SCBGP) assists State departments of agriculture in the 50 States, American

Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the District of

Columbia, Guam, and the U.S. Virgin Islands in solely enhancing the competitiveness of U.S. grown specialty crops.

Specialty crops are fruits and vegetables, dried fruit, tree nuts, horticulture, and nursery crops (including floriculture). A State department of agriculture is the agency, commission, or department of a State government responsible for agriculture within the State.

1.3 PROJECT TYPES

SCBGP encourages States to develop projects pertaining to the following issues affecting the specialty crop industry:

enhancing food safety;

improving the capacity of all entities in the specialty crop distribution chain to comply with the requirements of the Food Safety Modernization Act, for example, by developing “Good Agricultural

Practices,” “Good Handling Practices,” “Good Manufacturing Practices,” and in cost-share arrangements for funding audits of such systems for small farmers, packers and processors;

investing in specialty crop research, including research to focus on conservation and environmental outcomes;

developing new and improved seed varieties and specialty crops;

pest and disease control;

increasing child and adult nutrition knowledge and consumption of specialty crops;

improving efficiency and reducing costs of distribution systems and;

sustainability.

1.3.1 PROJECTS MORE RELEVANT FOR OTHER FEDERAL GRANT PROGRAMS

Projects that support the increased consumption of fruits and vegetables in the Supplemental Nutrition Assistance

Program (SNAP) by providing incentives at the point of purchase and/or include technologies for benefit redemption systems should consider submitting those projects to the Food Insecurity Nutrition Incentive Grant Program (FINI).

Projects that support domestic farmers’ markets, roadside stands, community-supported agriculture programs, agritourism activities, other direct producer-to-consumer market opportunities, local and regional food business enterprises that process, distribute, aggregate, or store locally or regionally produced food products should consider submitting those projects to the Farmers Market Promotion Program and Local Food Promotion Program.

http://uscode.house.gov/view.xhtml?req=(title:7%20section:1621%20edition:prelim)%20OR%20(granuleid:USC-prelim-title7-section1621)&f=treesort&edition=prelim&num=0&jumpTo=true http://uscode.house.gov/view.xhtml?req=(title:7%20section:1621%20edition:prelim)%20OR%20(granuleid:USC-prelim-title7-section1621)&f=treesort&edition=prelim&num=0&jumpTo=true https://www.federalregister.gov/articles/2009/03/27/E9-6816/specialty-crop-block-grant-program-farm-bill http://nifa.usda.gov/funding-opportunity/food-insecurity-nutrition-incentive-fini-grant-program http://www.ams.usda.gov/services/grants/fmpp http://www.ams.usda.gov/services/grants/lfpp

Projects that support biobased products and bioenergy and energy programs, including biofuels and other alternative uses for agricultural and forestry commodities (development of biobased products) should see the USDA energy website at http://www.usda.gov/energy/matrix/home for information on how to submit those projects for consideration to the energy programs supported by USDA.

1.4 DEVELOPMENT OF PROPOSALS

1.4.1 STATE DEPARTMENT OF AGRICULTURE RESPONSIBILITIES

State departments of agriculture are responsible for developing proposals and overseeing funded projects. Proposals must be structured so that the State department of agriculture maintains control of the project objectives, sets policy, and ensures that projects are carried out in accordance with all applicable Federal statutes and regulations as well as with the Grant Agreement and Terms and Conditions of Award. State departments of agriculture are also responsible for ensuring that subrecipients maintain appropriate records and follow all applicable Federal statutes and regulations as well as the Grant Agreement and Terms and Conditions of Award.

State departments of agriculture must ensure that proposals are appropriate for the SCBGP by reviewing section 1.2

Purpose. Contact a specialist listed in section 7.2 Grants Management Specialists if there is any question about whether or not the project qualifies for SCBGP.

1.4.2 GROWER-LEVEL PROJECTS

The SCBGP encourages State departments of agriculture to prioritize and expand funding to projects that are supported by and address the needs of U.S. specialty crop growers. For example, if the State department of agriculture receives multiple research or marketing project proposals, SCBGP encourages State departments of agriculture to prioritize the proposals supported by grower-level groups.

1.4.3 OUTREACH TO IDENTIFY FUNDING PRIORITIES

The SCBGP encourages State departments of agriculture to perform outreach prior to the development and release of the State’s request for proposals or applications to interested parties, including beginning and socially disadvantaged farmers, through a transparent process of receiving and considering public comment to identify State

SCBGP funding priorities. The State department of agriculture should conduct this outreach to ensure that grant applications submitted to the SCBGP are developed with proven and justified public support.

Beginning Farmer or Rancher is an individual or entity that has not operated a farm or ranch for more than 10 years and substantially participates in the operation.

Socially Disadvantaged Farmer or Rancher is a farmer or rancher who is a member of a Socially Disadvantaged

Group. A Socially Disadvantaged Group is a group whose members have been subject to discrimination on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program.

1.4.4 COMPETITIVE GRANT APPLICATION REVIEW PROCESS

The SCBGP encourages State departments of agriculture to develop their State Plans through a competitive review process to ensure maximum public input and benefit. The competitive review process should follow State policies http://www.usda.gov/energy/matrix/home and procedures and include the use of an independent review panel of experts or qualified individuals, overseen by

State department of agriculture officials, to evaluate and score applications and recommend project proposals for selection. The review panel should also provide a recommended award amount for project proposals.

This review should include the factors and reasons for selecting an applicant and any changes in project proposal ranks/scores that may occur during the review process. All documentation affecting the decision to approve, disapprove, defer, or otherwise not fund an application should be maintained in an accessible, centralized program file.

Review panel members must be free from conflicts of interest and conduct fair and impartial reviews. The SCBGP encourages State departments of agriculture to require and keep on file written conflict of interest disclosures from their review panel members.

Conflicts of interest may include:

Served as advisors/advisees of the applicant;

Collaborated with the applicant over a designated amount of time; currently affiliated with, previously employed by, or are being considered for employment at the institution(s) of the applicant(s);

A personal/familial relationship with the applicant(s); or

Participated in a consulting/financial arrangement with the applicant in recent years.

State staff who are directly involved with the management of the grant program or who meet any of the criteria above should also not participate in the review panel. Conflicts of interest have the potential to diminish the credibility of the selection process and leave the State vulnerable to challenges about the fairness of their competitive review process.

In addition, the SCBGP encourages State departments of agriculture to notify successful and unsuccessful grant applicants about the outcome of the competitive process as it relates to the applicant’s proposal.

Finally, the SCBGP encourages State departments of agriculture during their competitive review process to review funding requests carefully for activities funded previously to ensure:

The projects are likely to become self-sustaining and not indefinitely dependent upon publicly and privately granted funds;

Funding decisions are based on the applicant’s/subrecipient’s past performance; and

Specialty crop stakeholders, other than the applicant, individuals and organizations involved in the project, support the continuation of the project.

Examples include:

o If the applicant is a university and the research proposal will establish control techniques for a specific pecan disease, the proposal might identify that a pecan growers association supports the project because this was the organization’s number one research priority.

o If the applicant is a non-profit association requesting funds to promote apples, the proposal might identify specific apple growers that support the project because they are interested in increasing their market share.

1.4.5 MULTI-STATE PARTNERSHIPS

Multi-state partnerships are encouraged and should provide solutions to problems that cross state boundaries including, but not limited to, food safety; plant pests and disease; research; crop-specific projects addressing common issues; and marketing and promotion. State departments of agriculture with multi-state partnership projects can also consider submitting those projects to the Specialty Crop Multi-State Program (SCMP).

A multi-state partnership is a project that implements activities with measureable outcomes that benefit two or more U.S. States and/or Territories.

1.4.6 DEFINITION OF A PROJECT

A project is a set of interrelated tasks with a cohesive distinct, specified, and defined goal. It follows a planned, organized approach over a fixed period of time and within specific limitations (cost, performance/quality, etc.).

Additionally, it uses resources that are specifically allocated to the work of the project and usually involves a team of people.

Projects are different from other ongoing operations in an organization because, unlike operations, projects have a definitive beginning and end - they have a limited duration. One way to think about this is that a project has an overarching goal that you want to accomplish through a series of individual activities or tasks. Examples of projects could include:

Researching new cultivars

Marketing apples through a targeted promotional campaign

Activities or tasks that could be a part of such projects might include:

Hiring personnel

Purchasing special purpose equipment

Holding an educational workshop

Planting specialty crops

Distributing product promotional materials

2.0 AWARD INFORMATION

2.1 TYPE OF FEDERAL ASSISTANCE

SCBGP will use a Grant Agreement to provide support to successful SCBGP applications.

2.2 TYPE OF APPLICATIONS

New application. The SCBGP will review all new applications for conformance with the criteria in section 5.0

Application Review Information and may require the applicant to provide additional information or clarification by a specified date.

2.3 AVAILABLE FUNDING

Approximately $60.6 million is expected to be available to fund applications in fiscal year 2017. Enactment of additional continuing resolutions or an appropriations act may affect the availability of funds or level of funding for this program.

http://www.ams.usda.gov/services/grants/scmp

2.4 FEDERAL AWARD PERIOD DURATION

SCBGP projects must be completed within three years. The grant period must begin no later than September 30, 2017 and end no later than September 29, 2020. The applicant must indicate the start and end dates on the SF-

424, “Application for Federal Assistance” in box #17. SCBGP encourages State departments of agriculture to allow ample time for completion of all projects.

2.5 BLOCK GRANT AMOUNTS AVAILABLE TO EACH APPLICANT

Subject to the amount of available funding as set forth above in section 2.3 Available Funding, each eligible State department of agriculture applicant that submits an application that the SCBGP reviews and accepts is eligible to receive the available grant allocation as indicated below. Each State department of agriculture is eligible to receive an estimated base grant of approximately $201,973.63 and an amount based on the average of the most recent available value of specialty crop cash receipts in the State (2015 calendar year estimates) and the acreage of specialty crop production in the State (2012 Census of Agriculture). The data source for specialty crop cash receipts and acreage is from the U.S. Department of Agriculture, Economic Research Service and National Agricultural Statistics

Service.

State Department of Agriculture Available Grant Allocation

Alabama $ 423,590.42

Alaska 212,525.53

American Samoa 238,623.57

Arizona 1,144,644.53

Arkansas 302,614.03

California 19,243,984.17

Colorado 689,841.01

Connecticut 352,686.29

Delaware 299,250.37

District of Columbia 201,973.63

Florida 3,780,226.20

Georgia 1,120,982.22

Guam 203,836.54

Hawaii 426,578.75

Idaho 1,757,291.00

Illinois 551,272.99

Indiana 409,482.00

Iowa 282,032.76

Kansas 296,263.85

Kentucky 287,372.38

Louisiana 346,822.26

Maine 548,644.29

Maryland 407,527.79

Massachusetts 372,103.11

Michigan 1,802,159.19

Minnesota 1,193,159.28

Mississippi 356,089.80

State Department of Agriculture Available Grant Allocation

Missouri 374,359.81

Montana 1,263,225.58

Nebraska 598,830.42

Nevada 249,563.24

New Hampshire 255,820.00

New Jersey 670,852.04

New Mexico 502,205.05

New York 1,165,464.04

North Carolina 1,091,124.11

North Dakota 2,480,374.81

Northern Mariana Islands 203,625.50

Ohio 576,754.11

Oklahoma 528,803.26

Oregon 1,736,831.26

Pennsylvania 968,139.66

Puerto Rico 451,026.65

Rhode Island 233,218.91

South Carolina 473,547.96

South Dakota 290,146.71

Tennessee 486,991.66

Texas 1,650,198.27

U.S. Virgin Islands 203,017.44

Utah 300,394.43

Vermont 274,447.14

Virginia 481,059.54

Washington 4,102,313.99

West Virginia 249,012.37

Wisconsin 1,180,647.94

Wyoming 297,776.90

3.0 ELIGIBILITY INFORMATION

3.1 ELIGIBLE APPLICANTS

Eligible applicants are State departments of agriculture in the 50 States, American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the District of Columbia, Guam, and the United

States Virgin Islands. A State department of agriculture is the agency, commission, or department of a State government responsible for agriculture within the State.

SCBGP expects that State departments of agriculture will consult with specialty crop growers, processors, and/or distributors before developing SCBGP project applications to ensure maximum public input and benefit. These stakeholders should play an important role in development of project goals and objectives, in implementing the project plan, and in evaluating and disseminating project results and outcomes.

3.2 SOLELY ENHANCE THE COMPETITIVENESS OF U.S. OR U.S. TERRITORY GROWN SPECIALTY

CROPS

Project(s) must solely enhance the competitiveness of U.S. or U.S. territory-grown specialty crops in either domestic or foreign markets. See the SCBGP website for a definition of specialty crops and processed products, including a list of eligible specialty crops and ineligible commodities. Each project must identify at least one expected measurable outcome that specifically demonstrates the project’s impact in solely enhancing the competitiveness of eligible specialty crops.

3.3 BENEFIT MORE THAN ONE PRODUCT OR ORGANIZATION

Applications for grant funds should describe how the project potentially affects and produces measurable outcomes for the specialty crop industry and/or the public rather than a single organization, institution, or individual.

SCBGP will not award grant funds for projects that solely benefit a particular commercial product or provide a profit to a single organization, institution, or individual. In addition, recipients and subrecipients cannot use grant funds to compete unfairly with private companies that provide equivalent products or services. Single organizations, institutions, and individuals are encouraged to participate as project partners.

The following are some examples of acceptable and unacceptable projects:

Examples of Acceptable Projects

A State requests funding to contract with a university to conduct research on the feasibility of planting, cultivating, and growing a specialty crop in a particular area, the results of which will be shared with many growers throughout the State during the project.

A single grower requests funds to demonstrate the viability of organic small fruit production and partners with

Cooperative Extension to publicize the working model of diversification to other regional growers.

A single company requests funds to provide a viable pollination alternative to specialty crop stakeholders in a region that currently does not have one.

A non-profit organization requests funds to conduct an advertising campaign that will benefit their specialty crop members.

A single farmer erects high tunnels on his/her property to extend the growing season of tomatoes and lettuce and conducts a field day and farm tour to encourage other small family farmers to adopt the production methods.

Examples of Unacceptable Projects

A company requests grant funds to purchase starter plants or equipment used to plant, cultivate, and grow a specialty crop to make a profit, or to expand production of a single business or organization.

A State requests grant funds to make grants to individual specialty crop businesses or roadside stands to promote their individual business.

A non-profit organization uses grant funds to purchase produce and then sells that produce to other entities at cost or a higher price than the purchase price while competing with other private companies who sell produce in the area.

A sole proprietor requests grant funds to redesign her/his logo in order to make her/his specialty crop value-added product stand out at the local farmers’ market.

http://www.ams.usda.gov/services/grants/scbgp/specialty-crop

A single specialty crop organization requests grant funds to market its organization so that it can increase its membership.

3.4 COST-SHARING AND MATCHING

The SCBGP does not have a Federal cost-sharing or matching requirement. However, in some cases, an applicant or sub-applicant proposes cost-sharing or matching contributions as a mechanism to ensure all grant funds will solely enhance the competitiveness of eligible specialty crops. In this situation, the recipient or subrecipient of Federal funds must keep adequate records to identify and document the specific costs or contributions proposed to meet the match or cost-share, the source of funding or contributions, and document how the valuation was determined.

3.5 PERFORMANCE MEASURES

AMS is required to report on the outcomes of the SCBGP on a national scale to demonstrate the performance of this program. In an effort to fulfill this requirement, AMS collaborated with stakeholders, including the Office of

Management and Budget (OMB), to develop a listing of measureable outcomes and indictators that quantifiably measure performance toward fulfilling the program’s purpose of solely enhancing the competitiveness of specialty crops. By collecting, aggregating, and reporting performance data across all States and Territories, AMS can share the impact of the SCBGP with all stakeholders, including OMB, U.S. Congress, the agricultural community, and the general public.

Each project submitted in the State Plan must include at least one of the eight outcomes listed in the SCBGP

Evaluation Plan and at least one of the indicators listed in the selected outcome(s). The progress of the one or more outcomes and indicators selected will be reported in the Annual Performance Report, and the final results will be reported in the Final Performance Report. Please refer to the SCBGP’s Evaluation Plan for more information.

3.6 PROJECTS ATTEMPTING TO DISPARAGE THE WORK OF ANOTHER ORGANIZATION

Projects where one organization specifically attempts to disparage the mission, goals, and/or actions of another organization are unallowable.

3.7 SUPPLANTING

SCBGP funds must supplement the expenditure of State funds in support of specialty crops grown in that State, rather than replace State funds. Additionally, Federal funding may not replace State funding that is required under

7 U.S.C. 1621(d)(3). In instances where a question of supplanting arises, the applicant or recipient will be required to substantiate that the reduction in non-Federal resources occurred for reasons other than the receipt or expected receipt of Federal funds.

General Supplanting Definition. A State organization reduces State funds for an activity specifically because Federal funds are available (or expected to be available) to fund that same activity.

Example: State funds are appropriated for a stated purpose and Federal funds are awarded for that same purpose. (If a State has $50.00 budgeted for a specialty crop program and the Federal Government awards a $100.00 grant for the same specialty crop program, the total project must expend $150.00 – the State cannot remove the original $50.00 and use it for something else).

4.0 APPLICATION AND SUBMISSION INFORMATION

4.1 OBTAINING AN APPLICATION PACKAGE

http://www.ams.usda.gov/sites/default/files/media/SCBGP%20FY15%20PerformanceFINAL_10272015.pdf http://www.ams.usda.gov/sites/default/files/media/SCBGP%20FY15%20PerformanceFINAL_10272015.pdf http://www.ams.usda.gov/sites/default/files/media/SCBGP%20FY15%20PerformanceFINAL_10272015.pdf http://uscode.house.gov/view.xhtml?req=(title:7%20section:1621%20edition:prelim)%20OR%20(granuleid:USC-prelim-title7-section1621)&f=treesort&edition=prelim&num=0&jumpTo=true

Applicants must apply for the SCBGP at Grants.gov. Applicants may search for the SCBGP funding opportunity using the SCBGP CFDA number “10.170”, or the SCBGP Funding Opportunity Number “USDA-AMS-TM-SCBGP-G-17-0003.”

4.2 APPLICATION CHECKLIST

The application must include the following:

☐ SF-424 – Application for Federal Assistance

☐ SF-424B – Assurances for Non-Construction Programs

☐ State Plan Narrative

4.3 CONTENT AND FORM OF APPLICATION SUBMISSION

Those State departments of agriculture interested in submitting an application for the SCBGP must submit the following components and associated attachments via Grants.gov.

4.3.1 SF-424 APPLICATION FOR FEDERAL ASSISTANCE (REQUIRED)

Most information blocks on the required form are either self-explanatory or adequately explained in the instructions.

However, for SCBGP applications, you must use the following supplemental instructions associated with specific blocks on form SF-424. See Sample SF-424 (PDF) to a view a completed form.

Block Instruction

#1 Type of Submission Check Application.

#2 Type of Application Check New.

#4 and #5 Not applicable.

# 8c Organizational DUNS Applicant DUNS# for the Organization submitting the application.

See D&B Request a DUNS Number.

#8d Address Enter the State department of agriculture street address as it appears in SAM.gov. P.O. Boxes will not be accepted. Enter a 9-digit zip code.

#10 Name of Federal Agency AMS, USDA

#11 Catalog of Federal Domestic Assistance Number

Enter 10.170 – Specialty Crop Block Grant Program – Farm Bill.

#12 Funding Opportunity Number Enter USDA-AMS-TM-SCBGP-G-17-0003.

#13Competition Identification Number Not applicable.

#14 Areas Affected by Project Enter cities, counties, States affected by project.

#15 Descriptive Title of Applicant’s Project

A detailed description of each project is not necessary.

#16a Congressional Districts for Applicant Enter the Congressional district where your main office is located.

#16b Congressional Districts for Program/Project

Enter the Congressional district where your project is performed.

Write “All” if the projects will be performed in more than one location.

#17 Proposed Project Start Date and End Date

Your grant period cannot be more than 3 years in length. Start date must begin no later than September 30, 2017 and end no later than September 29, 2020.

#18 Estimated Funding Federal =Total Specialty Crop Block Grant funds requested.

#19 Is Applicant Subject to Review by State Under Executive Order 12372 Process?

This initiative is not subject to intergovernmental review.

http://www.grants.gov/ http://www.grants.gov/ http://www.ams.usda.gov/sites/default/files/media/SCBGPSampleSF424.pdf http://fedgov.dnb.com/webform http://www.whitehouse.gov/omb/grants_spoc

4.3.2 SF-424B ASSURANCES FOR NON-CONSTRUCTION PROGRAMS (REQUIRED)

The authorized certifying official must sign this form. See Sample SF-424B (PDF) to view a completed form.

4.3.3 STATE PLAN NARRATIVE (REQUIRED)

You are required to submit a State Plan that includes the content required in the Grant Administration Template and

Project Profile Template. The Grant Administration Template will be provided once at the beginning of your State

Plan; you will use the Project Profile Template for each project submitted through the State Plan.

Narrative Format

Page size for the narrative must be 8.5 inches (21.59 cm) by 11 inches (27.94 cm). The acceptable font size is 11 or

12 pitch with all margins at 1 inch (2.5 cm). The State Plan should include a series of project profiles that details the necessary information to fulfill the goals and objectives of the project. For examples of acceptable formats, please see Grant Administration, Project Profile, and the Sample State Plan.

4.4 SUBMISSION DATE AND TIME

State department of agriculture applicants must submit applications via Grants.gov by 11:59 p.m. Eastern Time on

June 7, 2017. SCBGP cannot consider applications received after this deadline for funding.

4.5 INTERGOVERNMENTAL REVIEW

This initiative is not subject to intergovernmental review.

4.6 FUNDS NOT APPLIED FOR

State department of agriculture eligible applicants who do not apply for or do not request all available funding during the specified grant application period will forfeit all or that portion of available funding not requested. SCBGP will allocate funds not applied for, by a date determined by SCBGP, pro rata to the remaining State department of agriculture applicants who applied during the specified grant application period.

4.7 FUNDING RESTRICTIONS

4.7.1 LIMIT ON ADMINISTRATION COSTS

Administration costs are defined as indirect costs and are limited to 8 percent of the total Federal funds provided under the award per section 10010(4) of the Agricultural Act of 2014, Public Law 113-79. The State department of agriculture must notify their sub-applicants of the limit on indirect costs in their requests for proposals/applications so that indirect costs requested by sub-applicants plus indirect administration costs requested by the State department of agriculture do not exceed 8 percent of the State’s grant request. If the State department of agriculture does not take the full eight (8) percent of indirect costs, individual subapplicants may claim the remaining portion of these costs at the discretion of the State. State-approved indirect costs in subapplicant projects may not exceed eight percent of that project’s budget. See the information below on presenting direct and indirect costs consistently.

http://www.ams.usda.gov/sites/default/files/media/SCBGPSampleSF424B.pdf http://www.ams.usda.gov/sites/default/files/media/SCBGP_SDOA_Template_2-12-15.docx http://www.ams.usda.gov/sites/default/files/media/SCBGP_ProjectProfile_Template_2-12-15%20%289%29.docx http://www.ams.usda.gov/sites/default/files/media/SCBGP_SDOA_Template_2-12-15.docx http://www.ams.usda.gov/sites/default/files/media/SCBGP_ProjectProfile_Template_2-12-15%20%289%29.docx https://www.ams.usda.gov/sites/default/files/media/SCBGPSampleStatePlan.pdf http://www.grants.gov/ http://www.whitehouse.gov/omb/grants_spoc http://uscode.house.gov/view.xhtml?req=specialty+crop+block+grants&f=treesort&fq=true&num=0&hl=true&edition=prelim&granuleId=USC-prelim-title7-section1621

Presenting Direct and Indirect Costs Consistently

Applicants and subapplicants are responsible for presenting direct and indirect costs appropriately and consistently and must not include costs associated with their organization’s indirect cost rate agreement as direct costs. In addition, a cost may not be allocated as an indirect cost if it is also incurred as a direct cost for the same purpose and vice versa. For further information on how to determine if a cost is indirect or direct, please see the Indirect Cost

Decision Tree.

Direct costs are costs that can be identified specifically with a particular award, project or program, service, or other organizational activity or that can be directly assigned to such an activity relatively easily with a high degree of accuracy. Typically direct costs include, but are not limited to, compensation of employees who work directly on the award to include salaries and fringe benefits, travel, equipment, and supplies directly benefiting the grant-supported project or program.

Indirect costs (also known as “facilities and administrative costs”) defined at 2 CFR §200.56 are costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. Refer to 2 CFR §200.413 and 414 for additional information on determining if costs charged to the award are direct or indirect.

The salaries of administrative and clerical staff should typically be treated as indirect costs. However, charging these costs as direct costs may be appropriate where all of the following conditions are met:

(1) administrative or clerical services are integral to a project or activity;

(2) individuals involved can be specifically identified with the project or activity;

(3) such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and

(4) the costs are not also recovered as indirect costs.

Typical Indirect Costs by Organization Type

Type of Organization Typical Indirect Costs

Non-Profits General administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and accounting, depreciation or use allowances on buildings and equipment, and the costs of operating and maintaining facilities.

Colleges and Universities Equipment and capital improvements, operation and maintenance expenses, library expenses, general administration and general expenses, departmental administration, sponsored projects administration, student administration and services, depreciation and use allowances, and interest on debt associated with certain buildings.

State and Local Governments State/local-wide central service costs, general administration of the applicant department or agency, accounting and personnel services performed within the applicant department or agency, depreciation or use allowances on buildings and equipment, and the costs of operating and maintaining facilities.

http://www.ams.usda.gov/sites/default/files/media/SCBGP%20IndirectCosts.pdf http://www.ams.usda.gov/sites/default/files/media/SCBGP%20IndirectCosts.pdf http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1&rgn=div5#se2.1.200_156 http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1&rgn=div5#se2.1.200_1413 http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1&rgn=div5#se2.1.200_1414

4.7.2 ALLOWABLE AND UNALLOWABLE COSTS AND ACTIVITIES

All SCBGP awards are subject to the most recent Award Terms and Conditions, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200), and other laws and regulations affecting

Federal assistance.

All costs must be allowable in accordance with the Federal cost principles outlined in 2 CFR part 200 Subpart E.

The following list describes specific funding restrictions under the SCBGP. This section is not intended to be all-inclusive. The applicant should consult the Federal cost principles for the applicable organization for the complete explanation of the allowability of costs they address. State department of agriculture applicants that have questions concerning the allowability of costs after reviewing the associated Federal cost principles should contact the SCBGP.

Item Description

Alcoholic Beverages Unallowable for alcoholic beverages except when the costs are associated with enhancing the competitiveness of an eligible processed product (products prepared or created for the purposes of promoting a specialty crop but that require other ingredients are considered a processed product). A processed product is defined as a product that constitutes greater than 50% of the specialty crop by weight, exclusive of added water.

Aquaponics Allowable as long as the cultivated crops are eligible specialty crops and the focus of the project is on the specialty crops and not the fish.

Projects that are Acceptable

A project to determine whether carp, catfish, or tilapia are best for growing lettuce is acceptable.

A project to market broccoli grown through aquaponics is acceptable.

A project to compare the quality of lettuce grown in water to lettuce grown in a greenhouse is acceptable.

Projects that are NOT Acceptable

A project to study whether lettuce or tomato produced the highest yield of tilapia is not acceptable.

A project to farm fish using an aquaponics system and then sell the fish is not acceptable.

A project to grow specialty crops where both the specialty crops and the fish are sold is not acceptable.

For more information on constructing or purchasing an aquaponics system, see

Equipment-General Purpose and Equipment – Special Purpose.

Conferences Allowable for costs of conferences as defined in 2 CFR 200.432. Allowable conference costs paid by the non-Federal applicant or subapplicant as a sponsor or host of the conference may include rental of facilities, speakers’ fees, costs of meals (see Meals for restrictions), and refreshments, local transportation, and other items incidental to such http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=988467ba214fbb07298599affd94f30a&n=pt2.1.200&r=PART&ty=HTML http://www.ecfr.gov/cgi-bin/text-idx?SID=0e3a14f56bf3b9ba29a3beea5c420324&node=pt2.1.200&rgn=div5#sp2.1.200.e http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1&rgn=div5#se2.1.200_1432

Item Description conferences with the exception of entertainment costs that are unallowable. If registration fees are collected, the applicant or subapplicant must report fees as program income (See Program Income).

The SCBGP encourages the use of technologies such as webinars, teleconferencing, or videoconferencing as an alternative to renting a building or a room.

Construction and

Renovation and Land or

Building Acquisition

Unallowable for the acquisition of buildings, facilities, or land or to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations or alterations of an existing building or facility (including site grading and improvement, and architecture fees).

Building means any permanent structure that is designed or intended for support, enclosure, shelter or protection of person, animals or property having a permanent roof that is supported by columns or walls.

Contractual/Consultant

Costs (Professional

Services)

Allowable subject to limitations below. Contractual/consultant costs are the expenses associated with purchasing goods and/or procuring services performed by an individual or organization other than the applicant in the form of a procurement relationship.

Allowable for contractor/consultant employee rates that do not exceed the salary of a

GS-15 step 10 Federal employee in your area (for more information please go to https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/). This does not include fringe benefits, travel, indirect costs, or other expenses. Please note that any statutory limitations on indirect costs also apply to contractors and consultants.

If rates exceed this amount, one of the following justifications must be provided:

A description of the steps you took to hire a contractor, which includes obtaining a cost/price analysis. The purpose of the analysis is to review and evaluate each element of cost to determine reasonableness, allocability, and allowability.

OR

Due to the complexity or uniqueness of the project, the pool of available and qualified contractors is limited. Therefore, the selected contractor’s specialized qualifications necessitate hiring at a rate beyond a GS-15 step 10. (Please outline the unique qualifications of the contractor.)

Contributions and

Donations

Unallowable for contributions or donations, including cash, property, and services, from the applicant or subapplicant to other entities.

A non-profit entity using grant funds to purchase produce to donate to other entities and individuals is unallowable.

Entertainment Unallowable. Entertainment costs include amusement, diversion, and social activities and any costs directly associated with such costs (such as bands, orchestras, dance groups, tickets to shows, meals, lodging, rentals, transportation, and gratuities).

https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/

Equipment, Buildings, and Land

Unallowable for acquisition costs of general purpose equipment, vehicles, buildings and land.

Allowable with conditions for renting or leasing of general purpose equipment, buildings, vehicles, and with prior approval for land. Vehicles may be leased, but not purchased. The lease or rental agreement must terminate at the end of the grant cycle.

Unallowable for lease agreements to own (i.e., lease-to-own or rent-to-own). The lease or rental agreement must terminate at the end of the grant cycle.

For vehicle and equipment leases or rentals with an acquisition cost that equals or exceeds $5,000, rates should be in light of such factors as: rental costs of comparable vehicles and equipment, if any; market conditions in the area; alternatives available; and the type, life expectancy, condition, and value of the vehicle or equipment leased.

Allowable with prior approval for acquisition costs and rental costs of special purpose equipment provided the following criterion is met:

1) Necessary for the research, scientific, or other technical activities of the grant award;

2) Not otherwise reasonably available and accessible;

3) The type of equipment is normally charged as a direct cost by the organization;

4) Acquired in accordance with organizational practices;

5) Must only be used to solely enhance the competitiveness of specialty crops;

6) More than one single commercial organization, commercial product, or individual must benefit from the use of the equipment;

7) Must not use special purpose equipment acquired with grant funds to provide services for a fee to compete unfairly with private companies that provide equivalent services; and

8) Equipment is subject to the full range of acquisition, use, management, and disposition requirements under 2 CFR 200.313 as applicable.

Equipment Definitions

Equipment is defined as tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000.

Acquisition cost means the cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired.

General Purpose Equipment means equipment that is not limited to technical activities.

Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles.

Special Purpose Equipment is equipment used only for research or technical activities.

Examples include grape harvesters, high tunnels, fruit or vegetable coolers, vegetable washing machines, fruit or vegetable processing equipment, etc.

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Fines, Penalties, Damages and Other

Settlements

Unallowable for costs resulting from violations of, alleged violations of, or failure to comply with, Federal, State, tribal, local or foreign laws and regulations.

Fixed Amount

Subawards

Allowable with prior written approval from AMS, a pass-through entity may provide subawards based on fixed amounts up to the Simplified Acquisition Threshold, provided that the subawards meet the requirements for fixed amount awards in 2 CFR 200.201.

Foreign Travel For purposes of this provision, ‘‘foreign travel’’ includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However, the term ‘‘foreign travel’’ for a governmental unit located in a foreign country means travel outside that country. An applicant with a proposal that involves foreign market development must determine if the project is more appropriate for grant programs administered by the Foreign Agricultural Service or funded through the State-Regional

Trade Groups. SCBGP recommends that applicants search the Foreign Agricultural Service database of GAIN reports (http://gain.fas.usda.gov/Pages/Default.aspx) to ensure that proposals will not duplicate information that already exists. Any proposal involving foreign travel must be well justified.

See Travel in this table for more information on travel costs.

Fundraising Unallowable for organized fundraising, including financial campaigns, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions, regardless of the purpose for which the funds will be used. This includes salaries of personnel involved in activities to raise capital.

General Costs of

Government

Unallowable for:

1) Salaries and expenses of the Office of the Governor of a State or the chief executive of a local government or the chief executive of an Indian tribe;

2) Salaries and other expenses of a State legislature, tribal council, or similar local governmental body, such as a county supervisor, city council, school board, etc., whether incurred for purposes of legislation or executive direction;

3) Costs of the judicial branch of a government;

4) Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized by statute or regulation (however, this does not preclude the allowability of other legal activities of the Attorney General as described in

§200.435 Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements); and

5) Costs of other general types of government services normally provided to the general public, such as fire and police, unless provided for as a direct cost under a program statute or regulation.

http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=988467ba214fbb07298599affd94f30a&n=pt2.1.200&r=PART&ty=HTML#se2.1.200_1201 http://gain.fas.usda.gov/Pages/Default.aspx http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=27767ced17852a0f709e351009375919&n=pt2.1.200&r=PART&ty=HTML#se2.1.200_1435 http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=27767ced17852a0f709e351009375919&n=pt2.1.200&r=PART&ty=HTML#se2.1.200_1435

Goods or Services for

Personal Use

Unallowable for costs of goods or services for personal use of the applicant’s or subapplicant’s employees regardless of whether the cost is reported as taxable income to the employees.

Health and Nutrition

Messaging

Allowable when health and nutrition information complies with regulations and policies of the:

Federal Trade Commission http://www.ftc.gov/about-ftc/bureaus-offices/bureau-consumer-protection

AND

U.S. Food and Drug Administration http://www.fda.gov/Food/IngredientsPackagingLabeling/LabelingNutrition/default.

htm.

Nutrition and health claims must be truthful, not misleading or deceptive, and include adequate disclaimers if appropriate.

Health and nutrition information should align with the most up-to-date Dietary

Guidelines.

Information Technology

Systems

Unallowable for information technology systems having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established in accordance by generally accepted accounting principles

(GAAP) by the non-Federal applicant or subapplicant for financial statement purposes or

$5,000. Acquisition cost means the cost of the asset including the cost to ready the asset for its intended use. Acquisition costs for software includes those development costs capitalized in accordance with GAAP.

Information technology systems include computing devices, ancillary equipment, software, firmware, and similar procedures, services (including support services), and related resources. Computing devices means machines used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or

“peripherals”) for printing, transmitting and receiving, or storing electronic information.

Examples of unallowable information technology systems include service contracts, operating systems, printers, and computers that have an acquisition cost of $5,000 or more.

Allowable for website development, mobile apps, etc.

Insurance and

Indemnification

Allowable as indirect costs for insurance and indemnification.

Lobbying The applicant should consult with the SCBGP to ensure that it is in compliance with

Federal assistance regulations and laws if it intends to engage in certain activities intended to influence Federal, State or local government entities.

http://www.ftc.gov/about-ftc/bureaus-offices/bureau-consumer-protection http://www.fda.gov/Food/IngredientsPackagingLabeling/LabelingNutrition/default.htm…