ITA-INA-OIE-2022-2007189 NOFO Report.pdf

Market Development Cooperator Program 2022

TABLE OF CONTENTS

I. Funding Opportunity Description 3

A. Program Objective 3 B. Program Priorities 3 C. Program Authority 3

II. Award Information 4 A. Funding Availability 4 B. Project/Award Period 4 C. Type of Funding Instrument 4

III. Eligibility Information 4 A. Eligible Applicants 4 B. Cost Sharing or Matching Requirement 6 C. Other Criteria that Affect Eligibility 6

IV. Application and Submission Information 7 A. Address to Request Application Package 7 B. Content and Form of Application 7 C. Unique Entity Identifier and System for Award Management (SAM) 14 D. Submission Dates and Times 15 E. Intergovernmental Review 15 F. Funding Restrictions 15 G. Other Submission Requirements 15

V. Application Review Information 17 A. Evaluation Criteria 17 B. Review and Selection Process 21 C. Selection Factors 22 D. Anticipated Announcement and Award Dates 23

VI. Award Administration Information 23 A. Award Notices 23 B. Administrative and National Policy Requirements 23 C. Reporting 24

VII. Agency Contacts 25 VIII. Other Information 25

Notice of Federal Funding Page 1 of 38

NOTICE OF FUNDING OPPORTUNITY

EXECUTIVE SUMMARY

Federal Agency Name(s): Industry & Analysis (INA), International Trade Administration (ITA), Department of Commerce

Funding Opportunity Title: Market Development Cooperator Program 2022

Announcement Type: Initial

Funding Opportunity Number: ITA-INA-OIE-2022-2007189

Federal Assistance Listings Number: 11.112, Market Development Cooperator Program

Dates: Complete applications must be received and validated by grants.gov on or before 5:00 p.m. EDT, May 13, 2022. Validation or rejection of an application by grants.gov may take up to two (2) business days after submission. Applicants that wish to receive validation of submission from grants.gov prior to the May 13 deadline should submit their applications by May 10.

Applications received after the May 13 deadline will be rejected/returned to the sender without further consideration. Applicants whose applications have been received by the deadline will be notified via e-mail not later than 10 business days after the submission deadline.

Funding Opportunity Description: ITA requests that eligible organizations submit proposals (applications) for the fiscal year (FY) 2022 competition for MDCP awards. ITA creates economic opportunity for U.S. workers and firms by promoting international trade and investment, strengthening industry competitiveness, and ensuring fair trade.

Notice of Federal Funding Page 2 of 38

FULL ANNOUNCEMENT TEXT

I. Funding Opportunity Description

A. Program Objective

Market Development Cooperator Program (MDCP) financial assistance awards help to underwrite the start-up costs of new foreign market development projects that industry organizations are often reluctant to undertake without federal government support. MDCP projects strengthen the competitiveness of U.S. industry by generating exports of nonagricultural goods and services produced in the United States.

Trade associations, other non-profit industry organizations, and departments of trade and other regional associations are eligible to apply for MDCP awards. These organizations are particularly effective in reaching small- and medium-size enterprises (SMEs). Through MDCP cooperative agreements, ITA provides technical and financial assistance that these organizations match. Organizations compete for a limited number of MDCP awards. See III.

Eligibility Information below.

B. Program Priorities

Each applicant must demonstrate how its proposed project will help ITA to create or sustain U.S. jobs by increasing or maintaining exports. This could include:

1. Outreach to U.S. companies, and particularly underserved companies, to support exporting to foreign markets. Underserved companies include minority-owned businesses (African American, Asian American, Hispanic American, and Native Americans), Veteran & Service- Disabled Veteran Owned Businesses, LGBTQI+ owned businesses, and rural businesses;

2. Addressing non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, onerous standards or conformity assessment procedures, and other measures that may be unreasonably trade restrictive;

3. Securing strong intellectual property rights protection and combating counterfeiting and piracy;

4. Participating in the formulation and encouraging the adoption of standards that are industry developed, market-driven, science-based, and internationally recognized; and

5. When appropriate, encouraging the development of aligned regulatory requirements that avoid unnecessary costs on businesses.

C. Program Authority

MDCP is provided for in 15 U.S.C. § 4723. The program strengthens U.S. industry's competitiveness by developing, maintaining, and expanding foreign markets for nonagricultural goods and services produced in the United States.

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II. Award Information

A. Funding Availability

A. Funding Availability Approximately $1,500,000 is expected to be available through this announcement for fiscal year 2022. The total number of awards made will depend on the amounts requested by top-scoring applicants and the availability of funds. No award will exceed $300,000. ITA anticipates concluding five (5) to seven (7) cooperative agreements.

B. Project/Award Period

The project period of performance is the time span established in the award document during which federal sponsorship begins and ends. Each applicant proposes a project period of performance of at least three (3) years but not to exceed five (5) years. An applicant should propose a project period of performance that allows ample time to complete project activities and generate exports. The start date for all projects is October 1, 2022. The project period of performance may be extended. Extensions usually do not exceed 12 months. All extensions must be approved by the grants officer. The MDCP award covers the entire project period of performance and shall not be increased, even if the project period of performance is extended.

C. Type of Funding Instrument

MDCP awards are cooperative agreements, see definition in section VIII.I.2.

Cooperative Agreement. The awards are not grants. Accordingly, an applicant that is selected to receive an MDCP award is called a “cooperator.” ITA expects to have substantial involvement with a cooperator as it works on its MDCP project. This involvement is discussed below in VIII.D. Working as a Team with ITA.

III. Eligibility Information

A. Eligible Applicants

Entities that fall within the following categories are generally found to be eligible to apply for an MDCP award: trade associations; state departments of trade and their regional associations; and non-profit industry organizations, including organizations such as World Trade Centers, standards-developing organizations, centers for international trade development, and small business development centers. In cases where no entity described above represents the industry, private industry firms or groups of firms may be eligible to apply for an MDCP award. Such private industry firms or groups of firms must provide documentation in their eligibility determination request demonstrating that no entity in the

Notice of Federal Funding Page 4 of 38 first three categories listed below represents their industry.

1. Trade Association A trade association is a fee-based organization consisting of member firms in the same industry, or in related industries, or which share common commercial concerns. The purpose of the trade association is to further the commercial interests of its members through the exchange of information, legislative activities, and the like.

2. Non-Profit Industry Organization To be found eligible within this category an entity must be found to be a/an: a. Non-profit small business development center operating under agreement with the Small Business Administration; or b. Non-profit World Trade Center chartered or recognized by the non-profit World Trade Centers Association; or c.

Organization granted status as a non-profit organization under 26 U.S.C. § 501(c)(3), (4), (5), or (6), which operates as one of the following:

(1) Chamber of commerce;

(2) Board of trade;

(3) Business, export or trade council/interest group;

(4) Visitors bureau or tourism promotion group;

(5) Economic development group;

(6) Standards-developing or conformity-assessment organization;

(7) Small business development center; or

(8) Port authority.

3. State Departments of Trade and Their Regional Associations To be eligible within this category an entity must be found to be a/an:

a. Department of a state government tasked with promoting trade, tourism, or another type of economic development; or

b. Association of the departments of trade (as defined above) of two or more states; or

c. Entity within a state or within a region that is associated with a state department of trade, tourism, or other type of economic development including non-profit, non-private, noncommercial entities, which is at least partially funded by, directed by, or tasked by a state government to promote trade, tourism, or another type of economic development.

4. Special Note Regarding Educational Institutions Educational institutions, such as schools, colleges, and universities, are not eligible.

However, organizations that are part of or affiliated with an educational institution for administrative, accounting, financial, legal, or logistical reasons may be eligible. Such organizations that are not independent legal entities, for example, an unincorporated organization, that otherwise may be classified under III.A. Eligible Applicants, above, as a trade association, non-profit industry association, or state department of trade and its regional associations, are eligible. In such a case, the eligible organization will include in its application a signed letter from the educational institution stating that MDCP funds will be used only by the eligible organization for the purposes outlined in its application and that no such funds will be used by or retained by the educational institution, even though the funds

Notice of Federal Funding Page 5 of 38 may need to go through the educational institution because of the eligible organization's lack of a separate accounting system or lack of status as a separate legal entity.

B. Cost Sharing or Matching Requirement

A cooperator must contribute at least $2 for each federal dollar received. The first dollar's-worth of contribution must be cash, the second dollar can be either cash or an in-kind contribution worth $1. See VIII.B. Supplemental Explanation of Cost Share and Match.

C. Other Criteria that Affect Eligibility

An applicant that fails to meet the eligibility criteria cannot receive an MDCP award even if its application is reviewed. An eligible applicant may submit more than one application.

1. Eligibility of Current or Past Cooperators ITA seeks to foster foreign market development activities by offering MDCP financial awards to encourage new initiatives. MDCP awards are not intended to replace funds from other sources, nor are they intended to replace previous MDCP awards. A current or past cooperator may propose a new project. See V.A.4. Creativity and Capacity below.

2. Determination of Eligibility A prospective applicant that has not already been determined by ITA to be eligible must request an eligibility determination in writing accompanied by the most current version of all of the following documents that apply:

a. Articles of incorporation or state-level certificate of corporate good standing;

b. Charter;

c. Bylaws;

d. Information on types of members and membership fees;

e. Internal Revenue Service acknowledgment of non-profit status;

f. Annual report;

g. Audited financial statements;

h. Documentation of ties to state trade departments or their regional associations; and

i. Letter described in III.A.4. Special Note Regarding Educational Institutions above, if applicable.

A prospective applicant should submit an eligibility determination request as soon as possible if it wishes to have a determination prior to the application deadline.

To initiate a request, a prospective applicant should visit trade.gov/mdcp and select “Let’s Talk”. Alternatively, a prospective applicant can email MDCP@trade.gov.

The eligibility requirements above are also summarized at trade.gov/mdcp. An applicant that has requested an eligibility determination should continue to work on its application while awaiting ITA's eligibility determination. An applicant may submit an application even if it has not yet received an eligibility determination. An applicant does not need to include in its

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MDCP application the letter it receives from ITA regarding determination of eligibility. ITA keeps determinations of eligibility on file.

3. Exclusion of Entities from MDCP Project Activity As noted in I.C. Program Authority, above, MDCP projects must be designed to develop, maintain, and expand "foreign markets for nonagricultural goods and services produced in the United States." This term is defined below in VIII.H. Definitions Regarding Nonagricultural Goods and Services Produced in the United States. Accordingly, entities that are found not to be exporters of goods and services produced in the United States will be excluded from MDCP project activity. ITA may also exclude an entity from MDCP project activity where participation in such activity would be contrary to applicable U.S. law, federal government policy, or Department of Commerce policy. For example, ITA is prohibited by law from promoting exports to North Korea, therefore, any exporter that proposes prohibited exports will be excluded based on the legal prohibition.

IV. Application and Submission Information

A. Address to Request Application Package

An application package is available at grants.gov. Applicants are strongly encouraged to submit applications via grants.gov. Applicants can learn more by visiting trade.gov/mdcp.

B. Content and Form of Application

Applicants should register on grants.gov as soon as possible. It often takes several days between registration on grants.gov and approval to submit an application. Applicants download forms from grants.gov then complete them offline. Applicants should note that the bulk of a complete MDCP application is made up of documents other than forms. Simply downloading the forms, completing them, and posting them at grants.gov is not enough to constitute a complete MDCP application. The non-form majority of the application must be drafted, assembled, and saved as .pdf files prior to attempting to submit via grants.gov. Visit trade.gov/mdcp to learn more. Click on “Let’s Talk” and request more information.

An applicant organizes its application into three parts in accordance with the grants.gov filing protocols: forms, project, and budget. Every page of the application must be easily legible. Textual documents generated by an applicant should have a one-inch margin on either side and top and bottom, and the typeface should be no smaller than 11-point. Headers and footers can lie outside the margins. Pages that are not easily legible may be ignored by reviewers. The three parts of the application are set forth below.

1. Forms (page limit: the number of forms required, 9-10 for most applicants) An applicant downloads forms from grants.gov and completes them offline. After the project and budget parts are prepared, an applicant can submit the forms as well as project and

Notice of Federal Funding Page 7 of 38 budget at grants.gov.

a. Forms required of all applicants:

i. SF-424 Application for Federal Assistance

ii. SF-424A Budget Information - Non-Construction Programs The applicant must submit a line-item budget (SF-424A) and corresponding budget narrative for each of the funding periods anticipated. Prior to completing the SF-424A most applicants find it helpful to use linked electronic spreadsheets to prepare a detailed project budget.

Example spreadsheets are available at https://www.trade.gov/mdcp-application-worksheets.

Most applicants find it helpful to download the MDCP App Budget Worksheet and use it, with modifications as needed, to prepare the MDCP project budget. One of the spreadsheets in the document is an SF-424A that is automatically populated with required information as the budget detail is entered on other spreadsheets. The information generated within the spreadsheet document is not a replacement for the submission of the actual SF-424A. Once the final budget information displays on the SF-424A spreadsheet in this document, applicants can enter that information on the SF-424A that they download from grants.gov.

iii. SF-424B Assurances - Non-Construction Programs

iv. CD-511 Certifications Regarding Lobbying.

b. Forms required only for special circumstances:

i. SF-LLL Disclosure of Lobbying Activities This form is only required of applicants that plan to engage in lobbying the federal government as part of their MDCP project. (It is rare that an MDCP project would require submission of an SF-LLL.)

ii. CD-512 Certifications Regarding Lobbying-Lower Tier Covered Transactions The CD-512 is required if an applicant plans to sub-contract work or make sub-awards. If so, the applicant completes the CD-512 but does not submit it with the application. In such case, the applicant should keep the completed CD-512 on file.

2. Project Narrative File (page limit: 12)

a. Executive summary In accordance with V.B. Review and Selection Process below, ITA will distribute each applicant's one-page summary to its experts to solicit comments. The executive summary may be included either at the first page of the project narrative or as the first page of the budget narrative. This summary should communicate the essence of the application including the following:

(1) Applicant: entity name, headquarters city/state, and website;

(2) Industry(s): Primary U.S. industry that will benefit from project activity; if another U.S.

industry will benefit, list it as the secondary industry; if more than two industries will benefit, list them in descending order of priority as "other" industries;

(3) Specific foreign markets targeted: list each sovereign state (or economic zone, e.g. Hong Kong special administrative region) in descending order of priority focus (not listing a

Notice of Federal Funding Page 8 of 38 market will not preclude you from claiming exports to that market generated by your project); do not list a region such as "Latin America" or an organization of sovereign states such as the "European Union"; specify each sovereign state or special economic/administrative zone;

(4) Market size: value in U.S. dollars of annual sales for the sector of the foreign market targeted by the project;

(5) U.S. market share: size in U.S. dollars of the current U.S. share of each targeted foreign market;

(6) Project period of performance: a minimum of three (3) years and a maximum of five (5) years, proposed by applicant, to begin on October 1, 2022;

(7) Project exports: sales to foreign buyers anticipated to be generated during the project period of performance;

(8) Post-project exports: exports anticipated to be generated during the four years following the project period of performance;

(9) Federal share: amount of federal funds requested;

(10) Match: amount of cash and in-kind match that applicant pledges to support the project;

(11) Project description: planned activities and methods in list form;

(12) ITA and other federal collaborators: names of federal staff with whom applicant has discussed the project; and

(13) Partner(s): if applicable, the name of any partner organization other than ITA, that will work with applicant. Omit if there are none.

b. Background The applicant should make clear why it believes that the project is needed and has a good chance to succeed. Applicants should rely on solid research and address appropriate considerations that may have a bearing on how well proposed projects address I.B. Program Priorities above. The considerations to address will depend entirely on the nature of the proposed project. The list of considerations below is provided as an example. The actual considerations addressed in a given proposal may or may not include all of those listed below and may well include others. Examples include:

(1) Current competitive position of the U.S. industry, including market potential for the industry's products and services;

(2) Local and third-country competitors in the target market(s);

(3) Target market economic conditions and the likelihood that potential buyers will purchase U.S. goods or services to be offered;

(4) U.S. industry resources that can be brought to bear on developing target market(s);

(5) U.S. industry's ability to meet potential market demand; and

(6) U.S. industry's after-sales service capability in the target market(s).

c. Project description The project description should include a work plan listing specific activities planned, Notice of Federal Funding Page 9 of 38 including the different phases of the project identifying relevant milestones and activity in chronological order; and the location where activities will take place.

d. Performance measurement Each cooperator reports its performance on its own distinct performance measures as well as on ITA performance measures. The reports are due 30 days after the end of each calendar quarter. An applicant may address performance measurement in either the project narrative or the budget narrative.

(1) ITA performance measures (quarterly report part A) An applicant must demonstrate that it will report the effect of MDCP project activity on the value of exports of services or goods delivered or contracted. The information requested is summarized below. Dollar value of exports generated by the project, (a) below, is the primary index of project success. Applicants should focus on how they will generate exports and get U.S. firms participating in the project to report.

(a) Exports Each cooperator reports the dollar value of any of the following that are relevant:

(i) Actual, verified export sales, leases, or rentals of U.S. goods or services;

(ii) Export-related developments including the value of agent contracts and other export related agreements, loss avoided, trade complaints resolved; and/or

(iii) Exports that are not transaction-specific that must be extrapolated from reliable sources.

(b) Export class Each cooperator reports as much of the following information as is available and relevant regarding the class of each type of:

(i) Export-related development such as an agent agreement or removal of a market-access barrier; and/or

(ii) Exports that are not transaction-specific such as an extrapolation of exports from other data.

(c) Other export-related information Each cooperator reports as much of the following information as is available regarding exports: foreign market and exporter's name/city/state/email address.

(d) Progress indicators If relevant to the project, each cooperator reports the number of firms that have signed a success agreement and have been identified to its ITA-MDCP team.

(e) Projected exports Each cooperator estimates future export results for the next four quarters. Accordingly, in the report for the quarter just completed, a cooperator estimates the dollar value of exports its MDCP project activity will generate during the next calendar quarter, the quarter following that quarter, the next quarter after that, and the next quarter after that.

(2) Applicant-designed performance goals (quarterly report part B). In its application an applicant should develop and utilize performance goals that reasonably gauge project

Notice of Federal Funding Page 10 of 38 success. All applicants selected as cooperators report on ITA performance measures;

therefore, an applicant should not duplicate ITA performance measures in its discussion of applicant-designed goals. Most cooperators find that three (3) to eight (8) measures suffice.

Each cooperator has its own distinct template identified as part B of the quarterly report.

(3) Estimate performance in the application With regard to ITA performance measures (quarterly report part A), an applicant must describe the methodology used to estimate the dollar value listed in its executive summary of project-period exports IV.B.2.a.(7) and post-project-period exports IV.B.2.a.(8). With regard to IV.B.2.d.(2) applicant-designed performance goals (quarterly report part B), an applicant must establish a quantifiable goal for each milestone it proposes to include on its part B quarterly report template. For example, a technical seminar every six (6) months during a three (3) year project would have a performance goal of six (6) for technical seminars, two

(2) per year for three (3) years.

(4) Performance measure recording and reporting system Each applicant describes its recording and reporting system in its proposal. Ultimately, it is the export success of individual companies that demonstrates an industry's strengthened competitiveness. Therefore, each applicant should explain how it plans to get export success information from participant companies and any/or other relevant sources.

e. Partnership As noted under VIII.D.1. Project Team below, each cooperator will work with a project team leader and other ITA-MDCP team members. Team members from other federal agencies also may be invited to participate. Each applicant must describe in detail how it plans to work with ITA.

f. Credentials Each cooperator must ensure adequate development, supervision, and execution of project activities for itself and for each non-federal partner with significant involvement in the project. Therefore, for itself and each such partner, each applicant must:

(1) Address its ability to provide a competent, experienced staff and other resources;

(2) Describe its structure and composition;

(3) Discuss the degree to which it represents the industry in question;

(4) Describe the role, if any, foreign membership plays in its affairs;

(5) Provide a short summary of experience for the project director and professional personnel who plan to participate in project activities; and

(6) Include in the budget the amount of time each professional will devote to the project.

g. Evidence of support from U.S. firms interested in participating Perhaps the best indication of whether an MDCP project will generate exports is the level of interest among the companies of the U.S. industry that would export. Each applicant should document the interest of potential U.S. exporters in leveraging the proposed MDCP project to generate exports.

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h. Use of ITA emblem Each applicant must provide at least one mock-up example indicating how it anticipates using the ITA emblem in the course of the project. Use of the ITA emblem is a graphic reminder that the project is backed by a partnership with ITA. The example will help secure formal clearance for use of the emblem by applicants selected for MDCP awards.

i. Success agreement Any applicant that plans to solicit export or other performance measurement data from companies participating in project activity must append a draft success agreement.

Applicants who are not planning to solicit data from companies do not need to submit a success agreement. Success agreements must contain these three parts:

(1) A list of the benefits that participants will receive,

(2) A notice that participants are obligated to report exports and other performance measurement information, and

(3) An affirmation that the goods or services that the participant seeks to export are produced in the United States. See the definition in VIII.H.8. Goods and Services Produced in the United States. An example of a success agreement is available at https://www.trade.gov/mdcp-cooperator-tools.

3. Budget Narrative Attachment Form (page limit: 10 pages plus up to 20 pages for financial statements) Each applicant must provide a detailed budget for the project including the elements listed below.

a. Budget for project period of performance This spreadsheet breaks down the budget into the categories used on the SF-424A and apportions it over the project period. This spreadsheet should allow an applicant to identify all of the figures needed to complete the SF-424A, which is submitted separately as described in IV.B.1 Forms above. An applicant is free to create its own way of accomplishing this, but an example MDCP App Budget Worksheet is available for download at https://www.trade.gov/mdcp-application-worksheets

b. Supporting worksheets and explanations The figures summarized on the budget for project period of performance are derived from more detailed spreadsheets that must be provided. Applicants may organize these supporting spreadsheets in whatever manner supports the figures on the budget for project period of performance and SF-424A and do so in a way that explains the details of the budget. For example, total travel expenses should be derived from adding up the cost of individual trips that take into account destination, number of travelers, and length of time. Most applicants find that it is helpful to group their supporting explanations on three worksheets: personnel, non-personnel direct expenses, and benefits. Example spreadsheets are available at https://www.trade.gov/mdcp-application-worksheets

c. Financial systems

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Each applicant should include a discussion of financial systems and projections that identify how, when, and from what sources the matching funds will be or have been raised. This discussion should address any of the following items that are relevant:

(1) Source of funds as documented in the applicant's financial statements or annual budget if the financial statements do not allow a sufficient level of specificity;

(2) Proof of past performance generating program income; and

(3) Letters of commitment from partners and others who have pledged to provide cash donations or in-kind resources.

d. Other financial assistance awards Each applicant sums the grants and similar financial assistance awards that it has received over the last three (3) years. Only awards of $100,000 or more need to be considered when summing the amounts. If the total of such awards exceeds $300,000, the applicant must provide a summary of each award in excess of $100,000. The summary should include the following information about the award-making entity and its official charged with monitoring performance on the award: entity name, award identifier/reference number, contact name, and current email. Awards of less than $100,000 should neither be included in the sum of awards nor in the summary of awards.

e. Financial statements Each applicant must include in its application its most recent audited financial statements, even if the applicant has recently submitted them as part of an eligibility determination request. If the applicant is a sub-unit of an audited entity, in addition to the financial statements of the audited entity, the applicant should provide financial statements at the most specific level available, whether or not these are audited. If the applicant's most recent financial statements are not audited, it should submit the most recent un-audited financial statements and a statement indicating whether it currently has an auditor and when it plans to issue audited financial statements. At a minimum, the financial statements an applicant should provide include:

i. Statement of income or revenue,

ii. Balance sheet, and

iii. Auditor notes.

f. Evidence committing cash or in-kind support If a significant source of cash or in-kind support is coming from any entity other than the applicant, then the applicant must provide evidence that such support will be forthcoming if the applicant wins an MDCP award. Examples of evidence of such support include a letter from an official in a position to pledge support, line items in official budget documents, and public laws.

g. Any additional evidence of financial responsibility If none of the methods described above are sufficient to demonstrate its financial responsibility, an applicant may choose to provide other suitable proof of same.

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h. Project comparison table Only applicants that are current or past cooperators are required to provide a table comparing the proposed project to current or past projects. See V.A.4.a.ii. current or past MDCP projects, below.

i. Letters of commitment from partner organizations If an applicant's proposed MDCP project will rely upon input or support from a partner organization other than ITA, the applicant should provide a letter of support from each partner confirming the amount of support that it will provide.

j. Letters of support from public officials Letters of support from public officials are welcome but are not required or expected.

However, an applicant should submit a support letter from any public official who has pledged financial or in-kind support for the proposed project. See IV.B.3.f. credentials, above. An applicant that chooses to submit a letter of support should secure it soon enough to include it in the application as an attachment. This will ensure that the merit review panel and other reviewers see the letter. It also reduces administrative burden because ITA does not respond to letters included as attachments in MDCP applications.

In order to include a letter of support in its application, an applicant should request that the author of a letter of support send it to the applicant. It is the responsibility of the applicant to include a copy of the letter in its application.

ITA officials, including all employees of Industry & Analysis (I&A) and Global Markets (GM) and its Commercial Service, a unit within GM, are instructed not to provide letters of support for MDCP applications.

ITA officials have the opportunity to comment on applications as part of the review and selection process as set forth in V.B. Review and Selection Process.

k. Other documentation An applicant may include anything else it feels is relevant for ITA reviewers to consider.

There may be documents relevant to an application that are not specified under IV.B.1.

Content and Form of Applications above. An applicant may include any such documentation within the budget part. Any documentation provided should support or explain the other portions of the application and should be labeled to identify its relevance to the application.

Other documentation provided under this part will be considered to constitute part of the application. As such it will undergo the same type of review as the rest of the application.

C. Unique Entity Identifier and System for Award Management (SAM)

Pursuant to 2 C.F.R. part 25, applicants and recipients are required to: (i) be registered in SAM before submitting its application; (ii) provide a valid unique entity identifier in its application; and (iii) continue to maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by a Federal awarding agency, unless otherwise excepted from these

Notice of Federal Funding Page 14 of 38 requirements pursuant to 2 C.F.R. § 25.110. ITA will not make a Federal award to an applicant until the applicant has complied with all applicable unique entity identifier and SAM requirements and, if an applicant has not fully complied with the requirements by the time that ITA is ready to make a Federal award pursuant to this NOFO, may determine that the applicant is not qualified to receive a Federal award and use that determination as a basis for making a Federal award to another applicant.

D. Submission Dates and Times

Complete applications must be received and validated by grants.gov on or before 5:00 p.m. EDT, May 13, 2022. Validation or rejection of an application by grants.gov may take up to two (2) business days after submission. Applicants that wish to receive validation of submission from grants.gov prior to the May 13 deadline should submit their applications by May 10. Applications received after the May 13 deadline will be rejected/returned to the sender without further consideration. Applicants whose applications have been received by the deadline will be notified via e-mail not later than 10 business days after the submission deadline.

E. Intergovernmental Review

There are no intergovernmental review requirements beyond those already noted.

F. Funding Restrictions

1. Non-Construction Project Neither an MDCP award nor any portion of the matching funds is to be used for construction projects.

2. Pre-Project-Period Activities There is no obligation on the part of ITA to cover pre-award costs. Except as noted below in VIII.G. Approved Pre-Project-Period Expenditure, if an applicant incurs any costs prior to an award being made, it does so solely at its own risk of not being reimbursed from award funds.

3. Joint Ventures Entities may submit an application as a joint venture; however, only one eligible organization can be the designated award recipient/cooperator. For example, two trade associations may pool their resources and submit one application, but only one of the two will be the cooperator. Foreign businesses and private groups also may join with eligible U.S. organizations to submit applications and to share project costs. Applicants should pay special attention to VIII.B.1. Cash Contribution and VIII.B.2. In-Kind Contribution, below, when formulating a partnership or joint venture.

G. Other Submission Requirements

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1. Number of Pages Grants.gov requires that applications be submitted in three parts: forms, project, and budget.

These and their page limits are summarized below. The budget part is limited to 40 pages, includes all attachments other than forms – even if they are not budget-related - and has sub-sections with their own page limits.

a. Forms: identified in IV.B.1. above are limited to the number of required forms, typically nine or 10 pages;

b. Project: 10 pages; and

c. Budget: 40 pages [Up to 10 pages for the budget, up to 20 pages of financial statements, and up to 10 pages of other attachments].

The page limits are not fungible. Over-limit pages from one part cannot take the place of under-limit pages from another. For example, if an applicant has 8 pages of financial statements in the budget part, 12 less than the limit, it is not allowed to apply these 12 pages towards other parts of the application. Each page counts towards the limit including cover pages. In order to stay within the page limits, applicants may need to omit irrelevant pages from financial statements, label the tops of pages instead of using cover pages, or omit reports and promotional brochures that are not necessary.

2. Retention of Applications Copies of winning applications are made available to ITA-MDCP teams for use in coordinating project work with the entire MDCP project team. ITA will keep the winning application on file for at least seven (7) years. For each eligible applicant whose application is not selected for MDCP funding, ITA will retain the signed original or its electronic equivalent for at least seven (7) years. Late applications are not accepted. ITA may choose to retain a copy of the cover page, transmittal letter, or electronic equivalent of a late application. In such cases ITA's policy is to keep such documentation for seven (7) years.

Otherwise, applications that are late or submitted by ineligible applicants are erased. In no event will ITA be responsible for proposal preparation costs. Publication of this announcement does not obligate ITA to award funds for any specific project or to obligate any available funds.

3. Method of Submission In order to expedite the application evaluation process, ITA posts the applications electronically to ITA reviewers and distributes them to each of the merit review panelists.

a. Electronic submissions In order to facilitate the electronic access to applications by reviewers, applicants should submit their applications via grants.gov.

4. Freedom of Information Act and Public Release of Winning Applications ITA may make applications publicly available pursuant to the Freedom of Information Act (FOIA). An application might contain information or data that the applicant does not want disclosed prior to award for purposes other than the evaluation of the application. In such

Notice of Federal Funding Page 16 of 38 case, the applicant should:

a. Bracket information to be withheld from public disclosure with the words "Limited use:

Business identifiable information (BII) surrounded by brackets [] includes trade secrets, commercial, or financial information.”; and

b. Explain why the information should not be disclosed and mark each affected page to assist ITA in making disclosure determinations. Department of Commerce regulations implementing FOIA, 5 U.S.C 552, are found at 15 C.F.R. Part 4, which sets forth rules for the Department and its bureaus, including ITA, to make requested materials, information, and records publicly available under FOIA. The contents of funded applications may be subject to requests for release under FOIA. Based on the information provided by the applicant, the confidentiality of the content of funded applications will be maintained to the maximum extent permitted by law. There are FOIA exemptions, but the fact that an exemption is claimed does not mean that it will be granted. If ITA does not agree with the justification, it informs the applicant or MDCP award winner that offered the justification.

ITA may then take appropriate action, including release of the information if requested. By bracketing such information in its application, an applicant can, if it is selected to receive an MDCP award, easily redact bracketed information to create a public version of its application that ITA will make available to anyone upon request. ITA's policy is to make available only applications that are funded. Applicants should apply online at grants.gov. If unable to apply electronically, hard-copy submissions will be accepted.

Applicants should submit electronically via grants.gov or via attachment of pdf files to an email addressed to mdcp@trade.gov if they are unable to submit via grants.gov.

V. Application Review Information

A. Evaluation Criteria

A. Evaluation Criteria The magnitude of a score that ITA assigns to an application is based on the degree to which proposed project activity addresses and/or has a positive effect on the criteria below.

1. Potential to Engage U.S. Firms in Generating Exports that Create or Sustain U.S. Jobs (20 points) Each applicant must demonstrate how, as a result of project activity, executives of export-capable U.S. economic entities will commit to actions that result in exports that create or sustain U.S. jobs. These U.S. economic entities include companies, partnerships, sole proprietorships, etc. These are referred to collectively as “firms.” Of primary and particular interest are firms that are SMEs.

As a general matter, an applicant must demonstrate that firms that appear to be well-positioned to generate exports resulting from project activity support the proposed MDCP project and intend to participate as appropriate.

Notice of Federal Funding Page 17 of 38

ITA will not allow any MDCP award recipient to include in a funded project, activity that appears to result in exports that do not create or sustain U.S. jobs. In this regard, applicants should keep in mind the following:

a. Exports that create or sustain U.S. jobs are sales by U.S. firms to non-U.S. customers where, as a consequence, there is ongoing or increased paid employment of U.S. entities engaged in producing the good sold or providing the service sold. ITA can infer the jobs created or sustained directly and indirectly from the exports generated by the project.

Applicants are not required to estimate jobs created or sustained.

b. Exports that do not create or sustain U.S. jobs are usually characterized by one-time transfers of technology or know-how in exchange for a fee. While such transactions may be considered to be exports, they do not generally result in the creation of new U.S. jobs or the sustaining of existing U.S. jobs to any significant degree, if at all. ITA does not fund projects that include activities likely to result in such non-job-sustaining exports. Applications that propose such activities receive a score of 0 for criterion 1.

2. Export estimate (5 points) Each applicant must estimate the dollar value of exports that its project is likely to generate during the proposed project period of performance and during the four years following the proposed project period of performance. While no applicant that becomes an award winner is required to report to ITA MDCP-project-generated exports after the end of the project period of performance, estimating such exports as part of the application process helps ITA to consider to what degree the applicant is designing the project to be sustainable. See criterion 11 below. As described below, ITA considers both the estimate methodology and significance.

3. Export Estimate Methodology (5 points) To be considered credible, estimates should normally be based either on prior experience or extrapolation from reliable, objective data. Failure to provide a methodology results in a score of 0.

4. Export estimate significance (5 points) In addition to the total value of exports projected, as measures of significance, ITA will consider the projected export value in the context of credibility as described in criterion 3 above and as compared to the amount of the MDCP award requested. ITA may also consider other measures of export significance, including, but not limited to, the extent to which the industry to be helped has already engaged in exports and the ITA priorities listed in I.B.

Program Priorities, above.

5. Export recording procedures and reporting likelihood (10) Each applicant must demonstrate that it will have effective export-reporting procedures in place.

a. Trade-barrier-focused projects For many applicants with projects focused on addressing standards or other trade barrier

Notice of Federal Funding Page 18 of 38 issues, export reporting is derived from reliable trade statistics. For such projects an applicant must identify the source of the statistics, justify the pre-project baseline it proposes to use for comparison, and explain why its proposed export reporting procedures are the most accurate and practical way to estimate the export impact of the project.

b. Exports reported by individual firms In most situations, exports by individual companies generated by project activity constitute the most compelling evidence of project success. When reporting by this method, an applicant must do the following.

i. Describe in detail how it intends to ensure that U.S. firms report exports. ITA will consider the extent to which an applicant demonstrates that it has previous or ongoing experience getting firms to report information or to respond to surveys.

ii. Include a draft success agreement as described in IV.B.2.i. success agreement, above.

6. Prospects for partnership with ITA (15 points) To earn the highest score possible, an applicant should identify in its application, individual ITA officials with whom it has worked in the past and with whom it has discussed the MDCP proposal. This normally includes from ITA's I&A unit relevant industry specialists, and from ITA’s GM unit the applicant’s local CS domestic field office, country desk officers, and CS staff based in target markets. The applicant should also outline how it intends to leverage not just the MDCP award funds, but also ITA’s network of trade professionals worldwide as part of a unified project team.

7. Compatibility with ITA Priorities (7 points) It should be evident in the application how the proposed MDCP project furthers or is compatible with ITA priorities. These are stated under I.B. Program Priorities above. In this regard, if the project proposed in an application will not significantly further ITA Priority I.B.1. the highest score it can receive is three.

8. Creativity (12 points) The applicant must demonstrate creativity, innovation, and realism in the work plan.

a. Demonstrating creativity Creativity may be demonstrated by proposing new ideas not previously developed or by promoting a particular industry in a market. Creativity may also be demonstrated in ways that are less straight-forward. For example, it may be that the U.S. exporters targeted for help have never before engaged in the types of activities included in the proposed project. Or, it may be that the manner in which techniques are customized to meet the specific needs of certain U.S. exporters is novel.

b. Current or past MDCP projects For demonstrating creativity, there are special requirements for an applicant that has previously received an MDCP award. A current or past cooperator must submit a table comparing its current or past MDCP project(s) to its proposed project. As noted above in I.

Funding Opportunity Description, MDCP awards are designed to help underwrite the startup

Notice of Federal Funding Page 19 of 38 costs of new projects. Accordingly, a current or past cooperator can earn the maximum number of points under this criterion only if it proposes a project that is entirely new.

In determining the number of points under this criterion, ITA considers the level to which an applicant has incorporated elements of its previously-funded MDCP projects. To assist in this analysis, a current or past cooperator must submit a table wherein it estimates the amount of resources devoted to each major project element for each project. See VIII.C.

Table Comparing Application to Current or Past MDCP Projects. A current or past cooperator that proposes a project that is not entirely new will…