final program announcement.osbdc-2016-01 and 02.pdf

U.S. Small Business Administration Office of Small Business Development Centers

OSBDC Program Announcement Program Announcement No. OSBDC-2016-01 and

Program Announcement No. OSBDC-2016-02

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OSBDC PROGRAM ANNOUNCEMENT

FY/CY 2016

PROGRAM ANNOUNCEMENT NO.

OSBDC -2016-01 &

OSBDC -2016-02

The purpose of this Program Announcement is to invite proposals for funding from entities that are current recipients of an SBA Small Business Development Center (SBDC) award. Only applications that are submitted by SBDC Lead Centers will be considered for funding. For-profit businesses are not eligible for this award.

Opening Date: June 5, 2015

Closing Date for Fiscal Year Proposals: Thursday, July 30, 2015

Closing Date for Calendar Year Proposals: Thursday, August 27, 2015

Proposals responding to this program must be posted to www.grants.gov by 11:59 PM Eastern Time Thursday, July 30, 2015 for fiscal year proposals and Thursday, August 27, 2015 for calendar year proposals. No other methods of submission will be permitted. Proposals submitted after the stipulated deadline will be rejected without being evaluated.

http://www.grants.gov/

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U.S. SMALL BUSINESS ADMINISTRATION

OFFICE OF SMALL BUSINESS DEVELOPMENT CENTERS

Table of Contents

Paragraph Subject

1.0 Section I – Funding Opportunity Description 5

1.1 Program Overview 5

1.2 Introduction 6

1.3 Background 6

1.4 Purpose 6

1.5 Leveraging of Resources 6

1.6 SBA Involvement and Oversight 7

1.7 Changes or Cancellation 7

2.0 Section II – Award Information 7

2.1 Estimated Funding 7

2.2 Expected Number of Awards 7

2.3 Period of Performance/Budget Periods 7-8

2.4 Funding Information 8

2.5 Funding Instrument 8

2.6 Matching Requirement 8

3.0 Section III – Eligibility Information 9

3.1 General 9

3.2 Eligible Applicants 9

3.3 Ineligible Applicants 9

4.0 Section IV – Application and Submission Information 9

4.1 Application Instructions 9-24

4.2 Submission Instructions 24-25

4.3 Required Proposal Submission Dates 25-27

5.0 Section V – Application Review Information 27

5.1 General 27-35

5.2 Evaluation Criteria 35-37

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5.3 Review and Selection Process 37

6.0 Section VI – Award Administration Information 37

6.1 Award Notification 37

6.2 Administrative and National Policy Requirements 37-38

6.3 Reporting 38-47

6.4 Recordkeeping Requirements 46-50

7.0 Section VII – Agency Contacts 50

8.0 Section VIII – Other Information 50

8.1 Definitions 50-58

8.2 Guidelines 58-66

8.3 Advance Understandings 66-67

8.4 Checklist of Required Submissions

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1.0 Section I – Funding Opportunity Description

1.1 Program Overview

1.1.1. Federal Agency Name U. S. Small Business Administration, Office of Small Business Development Centers

1.1.2. Funding Opportunity Title Small Business Development Centers

1.1.3. Announcement Type Initial

1.1.4. Funding Opportunity Number: Program Announcement No. OSBDC-2016-01 or OSBDC-2016-02

1.1.5. CDFA Number 59.037

1.1.6. Closing Date for Submissions: July 30, 2015, Proposal due to the OSBDC via www.grants.gov at 11:59 p.m. EDT for Program Announcement No. OSBDC-2016-01 for FY 2016;

August 27, 2015; Proposal due to the OSBDC via www.grants.gov at 11:59 p.m. EDT for Program Announcement No. OSBDC-2016-02 for

CY 2016.

1.1.7. Authority: Small Business Act, Section 21(c)(3)(T) and Section 27 (15 USC §§ 648(c)(3)(T) and 654) (Title IX of Public Law 105-277, Public Law 108- 447)

1.1.8. Duration of Authority: Permanent

1.1.9. Funding Instrument: Cooperative Agreement

1.1.10. Funding: Funding is for a twelve month period.

1.1.11. Award Amount/Funding Range: Section 21 of the Small Business Act sets forth a formula by which funds are to be distributed among the States. This formula, for the most part, rests upon a per capita basis, subject to the amount of an appropriation in any given fiscal year. The preliminary funding amount for the SBDC program for fiscal year 2016 is $115,000,000.00. The Recipient Organization receiving the Cooperative Agreement is required to match funding received on a 1:1 ratio.

1.1.12. Project Duration: Awards will be made for a one year period. SBA intends to continue to fund the SBDC program annually, subject to availability of funds.

However, an SBDC may not receive funding for future performance periods if there has been a clear showing of poor performance;

improper activity affecting the operation and integrity of the SBDC; or a failure to follow the rules and procedures set forth in the statute regulation and/or Program Announcement (see 13 C.F.R. Part 130.700) as incorporated into the Cooperative Agreement; or has been denied Accreditation.

1.1.13. Project Starting Date: Approximately 90 days after closing date, but no later than October 1, 2015 for Program Announcement No. OSBDC-2016-01 for FY 2016;

and January 1, 2016 for Program Announcement No. OSBDC-2016-02 http://www.grants.gov/ http://www.grants.gov/ http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+15%2FChapter+14a%2FSec.+648&granuleId=USCODE-2010-title15-chap14A-sec648&packageId=USCODE-2010-title15&collapse=true&fromBrowse=true http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+15%2FChapter+14a%2FSec.+648&granuleId=USCODE-2010-title15-chap14A-sec648&packageId=USCODE-2010-title15&collapse=true&fromBrowse=true http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+15%2FChapter+14a%2FSec.+654&granuleId=USCODE-2010-title15-chap14A-sec654&packageId=USCODE-2010-title15&collapse=true&fromBrowse=true http://www.gpo.gov/fdsys/search/pagedetails.action?st=Public+Law+105-277&granuleId=&packageId=PLAW-105publ277 http://www.gpo.gov/fdsys/search/pagedetails.action?st=Public+Law+108-447&granuleId=&packageId=PLAW-108publ447 http://www.gpo.gov/fdsys/search/pagedetails.action?st=Public+Law+108-447&granuleId=&packageId=PLAW-108publ447 http://www.gpo.gov/fdsys/search/pagedetails.action?st=13+CFR+130.700&granuleId=CFR-2012-title13-vol1-sec130-700&packageId=CFR-2012-title13-vol1

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1.1.14. Proposal Evaluation: Proposals will be reviewed for sufficiency in meeting the requirements of the program as defined in 13 C.F.R. Part 130.340. SBA may ask Applicants for clarification of the technical and cost aspects of proposals.

1.1.15. Agency Programmatic Point of

Contact:

Small Business Administration, Office of Small Business Development Centers, Tel: (202) 205-6766. Email: osbdc@sba.gov

1.2 Introduction

The Small Business Development Center (SBDC) Program is the U.S. Small Business Administration’s

(SBA’s) largest matching grant-funded program providing quality service to the small business community.

The SBDC program has 63 Recipient Organizations - one in each state (four in Texas and six in California), the District of Columbia, Puerto Rico, the Virgin Islands, Guam and American Samoa. The Recipient is responsible to establish a Lead Center and network of Service Centers to cover its designated area of service.

The SBDC program links the resources of federal, state and local governments with the resources of the educational community and the private sector to provide assistance to the small business community. In partnership with SBA’s Office of Small Business Development Centers (OSBDC) and District Offices, SBDCs develop business counseling and training programs, informational tools and other services that enhance the economic development goals and objectives of SBA, their respective service areas and their local funding partners.

1.3 Background

Since its inception in 1953, SBA has served to aid, counsel, assist and protect the interests of small businesses.

While SBA is best known for its financial support of small businesses through its many lending programs, the

Agency also plays a critical role in providing funding to organizations that deliver technical assistance in the form of counseling and training to small business concerns and nascent entrepreneurs in order to promote growth, expansion, innovation, increased productivity and management improvement. The mission of SBA’s

OSBDC, which bears responsibility for administering the SBDC Program, is to provide assistance to the small business community by linking the resources of federal, state and local governments with the resources of the educational community and the private sector.

1.4 Purpose

Eligible organizations (as defined in Section 3.2) may apply to SBA for an award of financial assistance under this Program Announcement to fund an existing statewide or regional Small Business Development Center program. SBDC programs deliver professional, high quality, individualized business advising and technical assistance to existing small businesses and pre-venture entrepreneurs. SBDCs shall provide problem solving assistance to help small businesses access capital, develop and exchange new technologies, and improve business planning, strategy, operations, financial management, personnel administration, marketing, export assistance, sales and other areas required for small business growth and expansion, management improvement, increased productivity and innovation.

http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+13%2FChapter+I%2FPart+130%2FSection+130.340&granuleId=CFR-2009-title13-vol1-sec130-340&packageId=CFR-2009-title13-vol1&collapse=true&fromBrowse=true&bread=true mailto:osbdc@sba.gov

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1.5 Leveraging of Resources

Applicants selected for awards under this Announcement are required to maximize their efforts to leverage

SBA funding by working in conjunction with SBA District Offices and other federal, state, local and tribal government small business development programs and activities; SBA resource partners such as SCORE, Women’s Business Centers (WBCs), Veterans Business Outreach Centers (VBOCs), Regional Innovative

Clusters, 7(j) Technical Assistance providers, Small Business Investment Companies (SBICs), U.S. Export

Assistance Centers (USEACs), Certified Development Companies (CDCs), and SBA lenders; universities, colleges, and other institutions of higher education; and private organizations such as chambers of commerce and trade and industry groups and associations.

1.6 SBA Involvement and Oversight

The SBDC program is managed by the Associate Administrator for the Office of Small Business

Development Centers (AA/OSBDC) at SBA headquarters. OSBDC shall assign a Grants Management

Officer (GMO) to review the budget and all fiscal documentation for compliance with applicable federal and program requirements, and issue the Notice of Award. A Program Manager within OSBDC serves as the

Grants Officer’s Representative (GOR) responsible for overall monitoring and oversight of the Recipient’s

SBDC program award, including compliance with the terms of the Cooperative Agreement. The SBA District

Office negotiates the annual proposal with the SBDC Lead Center, incorporating Agency Priorities and performance goals, and designates a Project Officer (PO) to conduct delegated grant monitoring activities on behalf of OSBDC. SBA will also conduct biennial financial and programmatic examinations of each SBDC recipient, as required by statute.

1.7 Changes or Cancellation

SBA reserves the right to amend or cancel this Announcement, in whole or in part, at the Agency’s discretion.

Should SBA make material changes to this Announcement, the Agency will extend the closing date as necessary to afford Applicants sufficient opportunity to address such changes

2.0 Section II – Award Information

2.1 Estimated Funding

SBA expects to issue up to $115,000,000 in awards under these Announcements. Section 21 (a) (4) (C) of the

Small Business Act sets forth a formula by which funds are to be distributed.

In the event that SBA is operating under a Continuing Resolution (CR) at the time of award, funding will be available during the period of the CR to the extent that funds are provided to the SBA for this purpose by the Office of Management and Budget (OMB). The amount available under the period of the CR may be less than the pro rata total anticipated amount of award.

Subject to the availability of funds and compliance with the terms and conditions of the Cooperative

Agreement, SBA has the discretion to increase the award to an amount consistent with the authorized funding level under the federal appropriations law. SBA may increase award funds for the total federal funding to the recipient not to exceed $80,000,000 but these amounts are not guaranteed.

https://www.sba.gov/content/small-business-act

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2.2 Expected Number of Awards

SBA anticipates making no more than 63 awards under this Announcement.

2.3 Period of Performance/Budget Periods

The period of performance for this award is one year, with a corresponding one-year budget period.

2.3.1 Project Start Dates

The project start dates are:

October 1, 2015 for states/regions responding to Program Announcement No. OSBDC-

2016-01 for FY 2016; and

January 1, 2016 for states/regions responding to Program Announcement No. OSBDC-

2016-02 for CY 2016.

2.3.2 Continuation of Funds

SBA intends to award continuation funding to the Recipient under subsequent annual SBDC

Cooperative Agreements for future fiscal/calendar years, subject to continued program authorization, availability of funds, satisfactory performance, and the continued interest of the recipient organization. However, an SBDC may not receive continued funding if there has been a clear showing of poor performance, as measured by SBA. Poor performance is indicated by unsatisfactory oversight reviews (Program, Financial), Accreditation issues, improper or insufficient activity affecting the operation and integrity of the SBDC, and/or a failure to follow the rules and procedures set forth in the statute, regulation and/or Program Announcement (see 13 C.F.R. Part

130.700).

Intent to Renew

SBDCs wishing to exercise a renewal option must e-mail or fax the Letter of Intent to Renew to the

Program Manager in OSBDC by the date listed on the SBDC Applicant’s Timeline in Section 4.3 of this Program Announcement.

2.4 Funding Information

Funds provided under the SBDC program must be used solely for the purposes stipulated in this

Announcement and the Notice of Award and may not be commingled with any other monies. All costs proposed in an Applicant’s budget must meet the tests of allowability, allocability, and reasonableness set forth in the Office of Management and Budget (OMB) Uniform Guidance at 2

C.F.R. Part 200, Subpart E.

Reimbursement of indirect costs from federal funds will be capped at a maximum of 20% percent, regardless of the amount stipulated in an Applicant’s indirect cost rate (ICR) agreement.

Reimbursement is the preferred payment method for the SBDC program. The submission of a

Standard Form 270 (SF 270) is required at least quarterly, but not more frequently than monthly.

http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+13%2FChapter+I%2FPart+130%2FSection+130.700&granuleId=CFR-2011-title13-vol1-sec130-700&packageId=CFR-2011-title13-vol1&collapse=true&fromBrowse=true&bread=true http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+13%2FChapter+I%2FPart+130%2FSection+130.700&granuleId=CFR-2011-title13-vol1-sec130-700&packageId=CFR-2011-title13-vol1&collapse=true&fromBrowse=true&bread=true

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2.5 Funding Instrument

The funding instrument is a Cooperative Agreement.

2.6 Matching Requirement

The organization receiving the Cooperative Agreement is required to match federal funds on a 1:1 ratio. Nonfederal matching funds may take the form of cash or cash equivalent, in-kind donations, or unreimbursed indirect costs (i.e., waived indirect).

Cash match in an amount not less than 50 percent of the federal funding is required. The remainder may be in the form of waived indirect costs and/or in-kind contributions (13 C.F.R. Part 130.450).

No portion of the match may be from federal sources, with the exception of applicable Community

Development Block Grant (CDBG) funds. See Section 4.1.7.3 on use of CDBG funds for SBDC activities.

Program income (e.g., fees collected from clients and/or attendees for training) may not be used as a source of matching funds.

For insular areas, American Samoa, Guam and the U.S. Virgin Islands, 48 USC § 1469a requires the

SBA to waive the match requirements on awards less than $200,000 and further provides the discretion to waive match for these awards exceeding $200,000.

3.0 Section III – Eligibility Information

3.1 General

An organization may NOT submit more than one proposal in response to this Announcement.

3.2 Eligible Applicants

To be eligible for this funding opportunity an Applicant must:

be an existing SBDC Lead Center, currently funded by SBA;

meet the Accreditation requirement for SBDC Program renewal under § 21(k)(3)(B) of the Small

Business Act (15 U.S.C. § 648(k)(3)(B).

3.3 Ineligible Applicants

The following will automatically be considered ineligible and their applications will be rejected without being evaluated:

Any organization NOT a currently funded SBDC Lead Center;

Any organization currently having an outstanding, unresolved financial obligation to any federal agency;

Any organization that is currently suspended, debarred, or otherwise prohibited from receiving awards of contracts or grants from the Federal Government;

Any organization with an outstanding and unresolved material deficiency reported under the requirements of the Single Audit Act or OMB Circular A-133 within the past three years;

http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+13%2FChapter+I%2FPart+130%2FSection+130.450&granuleId=CFR-2011-title13-vol1-sec130-450&packageId=CFR-2011-title13-vol1&collapse=true&fromBrowse=true http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+48%2FChapter+10%2FSec.+1469a&granuleId=USCODE-2009-title48-chap10-sec1469a&packageId=USCODE-2009-title48&collapse=true&fromBrowse=true&bread=true http://www.gpo.gov/fdsys/pkg/USCODE-2013-title15/html/USCODE-2013-title15-chap14A-sec648.htm

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Any organization having at least one substantially non-compliant condition within SBA program guidelines occurring while administering or implementing any SBA program, including denial of

Accreditation;

Any organization that has had a grant or cooperative agreement involuntarily terminated or non-renewed by SBA for cause;

Any organization that has filed for bankruptcy within the past five years; and/or

Any organization that proposes to serve as a pass-through and permit another organization to manage the day-to-day operations of the project.

4.0 Section IV – Application and Submission Information

4.1 Application Instructions

Applications must consist of the following elements: (i) concurrence letter from the SBA District Director;

(ii) technical proposal; (iii) budget information; (iv) certifications, forms and assurances; and (v) attachments and exhibits.

4.1.1 Technical Proposal (not to exceed 50 pages)

The technical proposal serves as the blueprint for the Applicant’s planned project. This information must be provided in a paginated attachment not to exceed 50 pages. It must include the following information:

4.1.1.1 Program Narrative:

Organization and Structure An organizational chart for the total SBDC network indicating the position of the

Lead Center within the Applicant organization and the department/division and person/title to whom the SBDC Lead Center Director reports.

Program Management A brief description of:

i) the service area of the SBDC program (must be statewide or region-wide);

ii) the methodology, philosophy and justification for the distribution of service area resources, such as Service Centers, satellites and specialty programs, using factors such as population or business census, population/counselor distribution formulas, etc., and any planned adjustments;

iii) the correlation of resource distribution to needs assessment studies and the

SBDC’s strategic plan for the management and coordination of SBDC services throughout the state or area being served.

iv) If applicable, describe plans for the addition of new Service Centers or programs, including the staffing plan, management strategy for vacancies

(interim measures and acceptable vacancy timeframes), desirable client wait time for counseling assistance, and any changes anticipated in the coming year.

Program Objectives SBDC must include a brief summary of major program objectives and ongoing programs, highlighting any new programs, special projects or activities, with

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SBA’s important priorities as listed in Section 5.2.2, below. To facilitate proposal review, categorize the information on planned program objectives and activities using the reporting categories listed in Section 6.3.3 to the extent possible. (Success stories should not be included in the proposal.)

On-line Client Services SBA views the use of web-based technology as a means to increase outreach within existing budgets, to access populations or areas otherwise difficult to reach, and to offer services 24/7 when appropriate. Describe the current level of online counseling and/or training service and the approach being taken to achieve a higher level. This discussion should include the planned operating environment and the process to be taken to achieve it, including timelines, benchmarks, anticipated results, resources and budget. Where possible and to reduce duplicative efforts, SBA’s Small Business Training Network (SBTN) at www.sba.gov/training should be used for on-line training.

SBDC Scheduled Closures SBDC Lead Center and Service Centers must be accessible to the public during normal business hours throughout the year except for those times provided in a listing of all scheduled holidays and planned closures for the SBDC Lead Center and

Service Centers. Emergency closures must be reported to the SBA Project Officer as soon as possible.

PIMS Contact Identify the SBDC contact designated to maintain information in SBA’s Partner

Identification Management System (PIMS), by name, title, phone number and email address.

Advisory Board

i) Provide a list of the members of the SBDC’s statewide/region-wide advisory board in accordance with 15 USC § 648(j), including their titles. A majority of the advisory board members must be representatives from small businesses or associations representing small businesses located throughout the entire area of service. Veterans, women, minorities and Native

Americans should be represented, as appropriate. If a member, the SBA

District Director should be a non-voting member.

ii) Include a description of the board’s responsibilities and provide the date of the advisory board’s last meeting. There should be regular periodic meetings each year.

iii) The reasonable cost of travel of any board member for official board activities may be paid out of the SBDC’s budgeted funds, and must follow the Recipient Organization’s policy for per diem and related travel costs.

Conflict of Interest Policy Include a copy of the SBDC’s current conflict of interest policy for the SBDC network. Each SBDC network must have a written conflict of interest policy which http://www.sba.gov/training http://www.gpo.gov/fdsys/search/pagedetails.action?browsePath=Title+15%2FChapter+14a%2FSec.+648&granuleId=USCODE-2010-title15-chap14A-sec648&packageId=USCODE-2010-title15&collapse=true&fromBrowse=true

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Training

Provide a list of the types of training to be offered during the budget period. The

Lead Center is expected to provide the SBA Project Officer with a quarterly calendar of SBDC trainings, or with electronic access to comparable information.

Personnel Resumes Attach résumés for any new key personnel directly employed by the SBDC (i.e. Lead and Service Center Directors and special program Directors such as for technology or international trade) since the start of the last program year. Do not include résumés for trainers, counselors or support staff.

Activities Supported with Program Income Describe planned activities that will be supported with SBDC Program Income during the performance period, and estimated cost.

Program Income must be used to expand the quantity or quality of services, resources or outreach provided by the SBDC network. Planned expenditures from

Program Income are subject to OMB Uniform Guidance and SBDC program rules and requirements as set forth in 13 C.F.R. § 130.480. However, do not include program costs supported with program income on the application, network budget summary or budget justifications.

Funds Managed Outside the Cooperative Agreement Fully describe any other federal or state small business assistance programs, contributions or grant funds (excluding foundation accounts) managed by the

SBDC Lead Center outside the SBA Cooperative Agreement (e.g. Procurement

Technical Assistance Centers, Manufacturing Extension Partnership programs).

Include the source and amount of funds provided by each organization and the purpose for which the funds have been provided.

In accordance with 15 USC § 648(a)(5), before bidding on another federal contract, the SBDC must receive approval from the AA/OSBDC as to the subject and general scope of the project. SBDC Lead Centers may not manage other funds, regardless of funding source, when the scope of activity is inconsistent with this

Program Announcement.

The SBDC must maintain an updated list of funding sources and amounts for each source of funds received by the SBDC network including grants, contracts and contributions. In addition, for each source of funds, documentation regarding the name and phone number of the donor/contractor/grantor, the amount of funding, the intended purpose and any requirements, stipulations or deliverables must be maintained and made available during the biennial financial examination process.

http://www.ecfr.gov/cgi-bin/text-idx?node=se2.1.2701_1112 http://www.ecfr.gov/cgi-bin/text-idx?node=se2.1.2701_1112 http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=e35e4db75b8bcec456c8086da4eee05a&mc=true&n=pt13.1.130&r=PART&ty=HTML#se13.1.130_1480 http://www.gpo.gov/fdsys/pkg/USCODE-2010-title15/html/USCODE-2010-title15-chap14A-sec648.htm

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SBDCs managing other small business programs outside the SBA Cooperative

Agreement must maintain separate accounting/financial records to ensure a clear audit trail for the funds provided under the SBDC Cooperative Agreement.

4.1.1.2 Planned Milestones Worksheet:

Complete this worksheet and include as an attachment to the proposal. The Lead Center shall list goals negotiated with SBA for the SBDC network, as well as goals the Lead Center has established for each Service Center, and other planned milestones, major project objectives and special projects planned for the upcoming program year.

The Lead Center must also complete information about matching funds in the section on

“Non-SBA Contributions”. The worksheet is available from OSBDC at: SBDC Forms and

Worksheets.

4.1.1.3 SBDC Network Listing:

Provide a list of all service locations by name, host institution, key contact, physical address, phone number, and PIMS location code. Also identify whether each location is a Service

Centers, specialty center or satellite location. (Please refer to Section 8.1 “Definitions”). The

SBDC Network Listing shall be validated from SBA’s PIMS system. Each Service Center must have a separate PIMS location. However, do not request PIMS location codes for satellite centers or other part-time service delivery sites. The location ID code for each center is issued through the PIMS system and directly affects the SBDC’s ability to report program activity to the SBA’s data collection system (EDMIS); therefore, it is vital to keep the information in this system current. Guidance on maintaining PIMS is in 6.3 “Reporting”, PIMS Maintenance.

4.1.2 Cost Proposal

Information on proposed project costs must be provided through the completion or submission of the following:

i. Application for Federal Assistance (SF-424). Included in Grants.gov package.

ii. Budget Information—Non Construction Programs (SF424A). Included in Grants.gov package.

In Section B of SF-424A, line 6 g titled “Construction” shall be used for Consultant costs as described in the SBDC Budget Justification Instructions Section 4.1.2.3 below.

iii. SBDC Budget Justification and Personnel List. Template available from OSBDC at:

SBDC Forms and Worksheets.

Include a separate budget justification form with required cost detail for the Lead Center and each Service Center or Specialty Program (such as International Trade Center or Technology Program).

https://www.sba.gov/offices/headquarters/osbdc/resources/20351 https://www.sba.gov/offices/headquarters/osbdc/resources/20351

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Applicant may use its own budget justification form, but ALL budget detail required in OSBDC’s template must be included AND Applicant must include a separate 424A for the Lead Center and each other Service Center

iv. Budget Narrative.

If all required cost detail is not shown on the SBDC Budget Justification and Personnel list, include a separate Budget Narrative for the Lead Center and each Service Center or specialty program.

v. Indirect Cost Rate (ICR) Agreements, negotiated with the cognizant federal agency.

Provide a complete signed copy of the current ICR agreement for the Lead Center and each Service Center that plans to claim indirect costs.

Organizations that have never had an ICR agreement with a federal agency may utilize the 10% de Minimis rate as provided in 2 C.F.R. Part 200.414. The de Minimis rate may not be used by organizations that have an expired ICR.

vi. Schedule of Indirect Cost Worksheet. Template available from OSBDC at: SBDC Forms and Worksheets.

4.1.2.1 Budget Preparation

OSBDC will provide SBDCs with projected funding levels to be used in budget preparation.

Budget information must describe the financial resources contributed by the

Applicant. The amount and source of funds provided as match must be clearly indicated, in Box 18 of SF424, and the budget summary SF424A, Lead Center and

Service Center budget justification forms must clearly indicate which program costs will be paid by federal dollars, cash, in-kind and waived indirect. Applicants must show how the value of each in-kind match contribution is determined. This applies to costs incurred by Service Centers as well as recipient costs.

In addition, matching funds included in the budget information must also be listed by amount and contributor (i.e., state, university, private sector) in Section 5 of the

Planned Milestones worksheet required as part of the Technical Proposal (See section 4.1.1.2).

Applicants must NOT include SBDC program income, nor unspent program funds from prior budget periods (carryover requests) on the Application SF424, Budget

Information SF424A or SBDC budget justification forms submitted in response to this Program Announcement. Planned program income expenditures should be described instead as part of the Technical Proposal. See Section 4.1.1.1 for guidance.

Specifically:

o leave BLANK and do not include program income on the line f in Box 18, “Total Estimated Funding” of the SF424;

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4.1.2.2 Service Center Costs

If an Applicant proposes costs for Service Centers under the contractual budget element (i.e.

sub-awards), it must also provide separate Service Center budgets with a line item breakout, including the amount of federal dollars allocated to each Service Center, as well as indirect cost with applicable cost base and rate. If the Service Center proposes sub-contractual costs, supporting budget details such as a statement of work, the number of hours and rate of pay must be provided for each contractor.

For those SBDCs operating separate International Trade Centers, Technology Centers or other specialty centers as part of the Cooperative Agreement, the proposal must include a separate budget and milestone worksheet.

An Applicant may substitute its own forms or spreadsheets in place of the SBDC Budget

Justification Worksheet so long as it includes all of the information requested in section

4.1.2.3, below.

4.1.2.3 SBDC Budget Justification Instructions

The budget cost categories and required cost detail for each category are described below.

The direct cost and indirect cost total must agree with the SF-424 and SF-424A.

a. Personnel:

List name and title of all personnel charged to federal and non-federal funds (direct costs). For vacancies, show position title in budget justification or budget narrative. Use the Personnel List to show annual salary, number of months, level of effort in percentage and total amount budgeted for each position, as the basis used to estimate personnel costs charged to the SBDC program.

b. Fringe

Benefits:

Indicate the fringe rates approved by your cognizant federal agency for audits when available. If not available provide the schedule used. Do not include fringe cost in the total amount required for personnel.

c. Travel:

For local travel, provide total anticipated mileage and mileage rate.

For out of state/region travel (including foreign travel), provide estimated cost and justification including: i) purpose, ii) destination, iii) mode of transportation and rate

(i.e. airfare or mileage and rate), iv) number of trips, and v) number and position of travelers.

d. Equipment:

List items costing at least $5,000 and having at least one year of useful life. The

Recipient Organization must maintain an inventory of equipment purchased with program dollars including cost, location and detailed description of each item.

Equipment inventory must be made available upon request of SBA.

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e. Supplies:

Show anticipated cost of supply items such as general office, operational, computer supplies, and other supply items costing less than $5,000. The Recipient Organization must maintain an inventory of controlled supplies of higher dollar value and high potential for loss such as computers, etc. and it must be made available upon request of the SBA.

f. Contractual:

List costs for Contractual services that support program operations, such as website support, equipment maintenance, or meeting facilitation. Provide budget details including: name of contractor, statement of work, number of hours and rate of pay.

If Applicant proposes contractual costs for Service Centers (sub-awards), include separate line item budgets for each Center. Applicants who use their own budget justification template instead of the OSBDC template must also include an SF424A with each Center’s detailed budget.

g. Consultants:

Provide detail for Consultant costs shown on line 6g of 424A. (Note that form SF424A lists category g. as “Construction”, but Applicants are asked to use this line for SBDC

Consultant costs only.)

Consultant costs include costs for non-employee SBDC advisors, trainers and other staff who provide client services on an hourly or fee for service basis. Provide consultant(s) name, if known, specify purpose, and indicate the number of hours and rate of pay.

h. Other:

List all expenses included in this cost category separately, with planned cost per item.

Other Expense items may include, but are not limited to, computer software, copying, postage, printing, publications, subscriptions, dues, telephone, conference fees and office space rental.

If rental costs are proposed, provide square footage required for SBDC activities and rate.

Do not list other items with zero amounts.

j. Indirect cost:

Show indirect cost amount on line j of the Budget Justification ONLY. (Do not include indirect costs as cash match or as in-kind contributions; or as a contractual cost category.)

A rate no higher than that approved by your cognizant agency should be used to estimate indirect costs, except that organizations that have never had an Indirect Cost

Rate Agreement with the federal government may use the 10% de Minimis rate provided in 2 C.F.R. Part 200.414. You may obtain the Schedule of Indirect Costs

Worksheet from OSBDC at: SBDC Forms and Worksheets.

Reimbursement of indirect costs charged to federal funds will be capped at a maximum of 20%. The amount remaining of the total indirect cost is the waived portion (i.e.

indirect match, if any).

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4.1.3 Certification Forms and Assurances

Consistent with 2 C.F.R. Part 200.415 financial Certifications must be signed by an authorized individual at a level no lower than vice president or chief financial officer of the organization. Each

Applicant must complete and submit the following forms.

Certification Regarding Debarment, Suspension, and Other Responsibility Matters, Primary Covered Transactions (SBA Form 1623)

Certification Regarding Drug-Free Workplace Requirements

Certification Regarding Lobbying (SBA Form 1711)

Cash Match and Program Income Certification Form

Cost Sharing Proposal (SBA Form 1224)

Assurances-Non-Construction Programs (SF-424B)**

Disclosure Form (SF-LLL)**

Most recent A-133 Audit. Note: if the Applicant’s A-133 audit document is large, provide a website link and instructions on where to locate the audit.

** SF424B and SF-LLL are incorporated as part of the electronic application form on Grants.gov.

All other required Certification forms can be obtained from OSBDC at: SBDC Forms and

Worksheets and uploaded as Attachments to the Application. See Section 4.1.4 for Attachment order.

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4.1.4 Attachments and Exhibits

There will be 15 attachment buttons. Please attach documents in the following order, and include

“Attachment #” in the document name. See Section 8.4, Checklist of Required Submissions for additional guidance and location of required forms.

1. Attachment #1: List of Attachments submitted through Grants.gov

2. Attachment #2: Technical Proposal, including program narrative, organization chart, network listing, resumes and other required information

3. Attachment #3: Planned Milestones worksheet

4. Attachment #4: Cost Proposal, including SBDC budget narrative, detailed budget justification by line item, personnel listing and other required cost detail for each center

5. Attachment #5: Additional 424A budget summary forms for Lead Center and Service

Centers. These are required only if the applicant does not use OSBDC’s budget justification template for each center in Attachment #4.

6. Attachment #6: Indirect Cost Rate Agreement for Applicant and Subrecipients (if any).

7. Attachment #7: Indirect Costs Allocation worksheet

8. Attachment #8: Certification Regarding Debarment, Suspension and Other Responsibility

Matters (SBA Form 1623)

9. Attachment #9: Certification Regarding Drug Free Workplace Requirement

10. Attachment #10: Certification Regarding Lobbying (SBA Form 1711)

11. Attachment #11: Cash Match and Program Income Certification Form

12. Attachment #12: Cost Sharing Proposal (SBA Form 1224)

13. Attachment #13: A133 Audit Report (or link to a webpage with instructions on how the report can be viewed by SBA).

14. Attachment #14: Approval Letter from SBA District Director

15. .Attachment #15: Additional information or other documentation the Applicant believes is necessary to support its proposal.

4.1.5 Treatment of Proposal Information

If the SBDC’s proposal contains confidential data, the SBDC must follow Part 102 of SBA’s regulations (13 C.F.R. Part 102).

Unless otherwise specified, all financial, statistical, personnel and/or technical information and data furnished, produced or otherwise made available to the SBDC by its small business customers during the performance of this Agreement shall not be used for purposes other than performance of work under this Agreement. The above information received by the SBDC may be privileged and must not be released or disclosed by the SBDC without the prior written consent of the client unless otherwise required by law. If such information is requested in a legal proceeding, the SBDC must take the necessary precautions and legal recourse to protect privileged information.

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Public Law 108-447, approved December 8, 2004, provides that client information can only be made available to SBA for legal enforcement action and financial audits. However, SBA is also allowed access to client data for obtaining program activity information or conducting client surveys.

No files or records will be removed from the premises of any government agency with which the

Recipient may work without the approval of the agency in possession of such documents.

Publication of any information will be in accordance with 2 C.F.R.200.333-.337.

4.1.6 Funding Restrictions

4.1.6.1 Administrative Requirements and Cost Principles

SBDCs are governed by the Uniform Administrative Requirements, Cost Principles and

Audit Requirements for Federal Awards, codified at 2 C.F.R. Part 200 et seq.

4.1.6.2 Budget Preparation & Funding

Specific items of cost may be included in the proposal and considered allowable under the additional conditions and requirements set forth below.

1. Travel

All travel performed as part of this Agreement must be in accordance with SBDC program objectives and in compliance with the recipient's travel policy and governed by

OMB Uniform Guidance at 2 C.F.R. § 200.474. The proposed budget must include a description of the out-of-state (region) travel proposed, indicating estimated costs, number of persons traveling and purpose of travel.(Travel to be completed using vacation time regularly earned is not subject to approval by the AA/OSBDC.)

Refer to Section 8.3.2 for guidelines on requesting unanticipated out of state and out-of-country travel that is necessary to further SBDC objectives, but for which a complete description and/or justification could not be provided in the proposal.

2. Payment of Dues

The proposed budget must show amounts estimated for payment of memberships, subscriptions and dues for business, technical and professional associations, including the ASBDC. Costs proposed for membership in any civic or community organization, however, must be justified in terms of the benefit to the SBDC derived from this expenditure. All other requirements of 2 C.F.R. § 200.454 apply. In addition, all memberships purchased with project funds must be in the name of the SBDC program rather than in the name of an individual.

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3. Lobbying

There is a broad federal restriction on all grantees of the Federal Government, which prohibits the use of federal appropriated funds to lobby Congress or agencies concerning certain specified federal actions (31 USC § 1352 (also known as the Byrd

Amendment). In addition, OMB’s Uniform Guidance at 2 C.F.R. § 200.450 provides that lobbying activities are generally unallowable costs, and defines unallowable activities as well as the limited activities that are allowed.

4. Indirect Costs and Overhead

To propose and subsequently claim indirect costs, Applicants must furnish their current indirect cost rate (ICR) agreement as negotiated with their cognizant federal agency, certified by their state governmental unit and approved by their cognizant federal agency, or a rate approved by SBA.

ICR agreements for participating Service Centers must also be submitted.

Entities currently without an ICR agreement negotiated with another federal agency may request that the SBA Project Officer provide an SBA indirect cost rate agreement (at

24% of Modified Total Direct Costs) to be used exclusively for the SBDC program. For entities using an SBA provided ICR Agreement, the following terms apply:

These terms are to assist in identifying and clarifying those costs considered to be “general administrative and general expenses” noted in 2 C.F.R. § 200.

They form the basis for this SBA ICR Agreement and subsequently may not also be included as direct costs against the award when the SBDC ICR

Agreement is used.

Cost pools underlying the ICR Agreement include personnel compensation and benefits for positions or for activities which are not: 1) in direct support of the SBDC program goals and objectives, and 2) under the direction or supervision of the key person identified in the Cooperative

Agreement as responsible for program performance at the respective host entity.

Examples include, but are not limited to, those expenditures allocable to human resources and accounting departments, sponsored project staff, corporate marketing staff, controllers, deans, chief executives and presidents of colleges and universities.

Non-personnel costs such as audits, supplies, materials, insurance, and other services and operating costs allocable to administrative departments and to the activities of the host entity are considered part of the “general and administrative cost pool” and thus may not also be directly charged.

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Any agreements subsequently negotiated with a federal agency will supersede the SBA ICR Agreement.

If the applicant or participating Service Center has never had an approved ICR and its budget includes indirect costs, it may utilize a de Minimis rate of 10% of Modified Total

Direct Costs (to include Federal and non-Federal) until the non-Federal entity can provide a copy of a current indirect cost rate agreement either through the SBA or from another cognizant federal agency. This new rule does not apply to organizations that have an expired ICR agreement.

The negotiated indirect cost rate in effect at the time of the initial proposal will be used for the budget period covered by the proposal. If a provisional indirect cost rate is in effect at the time the proposal is submitted and it has been more than one year since the date the provisional rate became effective, the SBDC must furnish OSBDC with documentation showing that they have made an effort to negotiate a final rate.

When making new sub-awards, administrative costs incurred for establishing technical needs, determining qualified candidates, issuing requests for bids, evaluating replies and selecting an awardee may be claimed as indirect costs according to 2 C.F.R. Part 200, Appendices III and V. The Circular allows these incremental Facilities and

Administrative costs on the first $25,000 to be claimed one time in the indirect cost base for each subcontract or sub-award. It is not appropriate to claim these costs when obtaining annual funding to continue the sub-award. These costs only may be claimed when an open, competitive bidding process was involved in issuing the sub-award that included the aforementioned administrative costs.

Indirect costs cannot be claimed for the Lead Center or for Service Centers that do not submit approved ICR agreements for the proposed funding period. Indirect costs cannot exceed the amount allowable under the approved ICR Agreement submitted with the proposal. Facilities & Administration (F&A) costs may not otherwise be charged, directly or indirectly, to the Cooperative Agreement or claimed as non-cash match contributions except as described here.

5. Justification of Costs

All costs proposed require justification and narrative explanation for the Lead Center and each Service Center. All proposed costs must be included in the specific line items and fully justified. All forms contained in the financial application package must be completed accurately and in full.

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6. Supplies, Printing and Costs Related To SBDC Logo

Generally, promotional items are not an allowable expense using SBDC program funds

(including program income). Promotional items are objects such as gifts, memorabilia, awards, mugs, and any other item which does not have a specific direct benefit to the

SBDC. See 2 C.F.R. § 200.421 e (3). However, costs proposed for printing using the

SBDC logo for training supplies such as pens, notepads or flash drives (which contain course material), etc. are allowable. Certain promotional items (shirts) may be charged to program funds on a case-by-case basis and shall be listed in detail in the proposal. These items will be considered on a case by case basis based on reasonableness as determined by OSBDC.