ita-mas-opcm-2012-2003089-ffo-report[1].pdf

ANNOUNCEMENT OF FEDERAL FUNDING OPPORTUNITY

EXECUTIVE SUMMARY

Federal Agency Name(s): Manufacturing and Services (MAS), International Trade Administration (ITA), Department of Commerce

Funding Opportunity Title: Market Development Cooperator Program 2012

Announcement Type: Initial

Funding Opportunity Number: ITA-MAS-OPCM-2012-2003089

Catalog of Federal Domestic Assistance (CFDA) Number: 11.112, Market Development Cooperator Program

Dates: Public Meeting: ITA will hold a public meeting to discuss MDCP proposal preparation, procedures, and selection process on Tuesday, January 24, 2012. The ninety-minute meeting will begin at 2:00 p.m. in Room 4813, at the Herbert Clark Hoover Building, 14th and Constitution Avenue, N.W., Washington, D.C. ITA will not discuss specific proposals at this meeting. Attendance is not required in order to apply or seek an eligibility determination. Interested parties may participate via telephone conference.

Instructions for participation via teleconference are available at trade.gov/mdcp or by contacting Mr. Brad Hess at 202-482-2969, or via e-mail at Brad.Hess@trade.gov.

Applications: Complete applications must be received and validated by grants.gov, or if submitted as hard-copy, received by ITA on or before 5:00 p.m. EST, February 21, 2012.

Applicants should note: Validation or rejection of an application by grants.gov may take up to two (2) business days after submission. Applications received after the deadline will be rejected/returned to the sender without further consideration. Use of U.S. mail or another delivery service must be documented with a receipt.

Applicants whose applications have been received by the deadline will be notified via e-mail or fax within ten (10) days of the submission deadline.

Funding Opportunity Description: ITA requests that eligible organizations submit proposals (applications) for the fiscal year (FY) 2012 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.

FULL ANNOUNCEMENT TEXT

I. Funding Opportunity Description

A. Program Objective

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, state departments of trade and other regional associations, and other non-profit industry organizations 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.)

1. Definitions

Several definitions are provided in VIII. Other Information.

2. Examples of Project Activity

Applicants should propose foreign market development activities tailored to strengthen the competitiveness of a U.S. industry. Examples from prior years are set forth below and, in greater detail, at trade.gov/mdcp. These are provided only for illustration. Applicants are not required to propose any of these activities:

a. Encouraging the adoption of industry-developed internationally-recognized standards that ensure market access for U.S. products and services;

b. Helping business leaders to leverage free trade agreements to the advantage of U.S. industry;

c. Demonstration of U.S. products and services abroad;

d. Creation of a U.S.A. pavilion at a foreign trade show;

e. Establishment of technical servicing of U.S. products and services abroad;

f. Establishment of a trade association office in a target market; and

g. Training foreign staff for after-sale service of U.S. products in target markets;

B. Program Priorities

ITA strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of trade laws and agreements. ITA supports the National Export Initiative (NEI) to sustain economic growth and support American jobs. With regard to the priorities listed below, each applicant must demonstrate how its proposed project will help ITA to address priority 1, and at least two of the priorities 2-6. ITA is interested in receiving proposals that:

(Required.)

1. Create or sustain U.S. jobs by increasing or maintaining exports; and

(Two (2) of priorities 2-6 are required.)

2. Increase exports to major emerging markets with rapid growth and new customers such as Brazil, India, and China as well as to other high-growth emerging markets that are not as large such as Vietnam, Turkey, Colombia, South Africa, Indonesia, and Saudi Arabia and other markets in the Persian Gulf region; or

3. Increase exports by any of the following U.S. industries: aerospace, ground/marine transportation equipment, health/medical products/services, chemicals, processed foods, education services, design/construction products/services, energy/environmental products/services, information/communications technology, media/entertainment, machinery/equipment, professional services, advanced textiles, travel/tourism, and/or logistics/distribution services; or

4. Help U.S. businesses to secure export financing; or

5. Engage more U.S. businesses in major international trade shows and other significant foreign outreach activities; or

6. Help current exporters to expand to more markets.

(An applicant may also show how its project will address any of priorities 7- 10; however, applicants are not required to address any of these.)

7. Address non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, and technical requirements;

8. Secure strong intellectual property rights protection and combat counterfeiting and piracy;

9. Counter discriminatory trade policies such as "indigenous innovation;" and

10. Shape and encourage the adoption of standards outside the United States that are industry-developed, market-driven, science-based, and internationally recognized.

An applicant is not judged based on how many priorities it claims its project will address, but rather by how well its project addresses priority 1, at least two (2) of priorities 2-6, and any of priorities 7-10 that may be relevant.

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.

II. Award Information

A. Funding Availability

Approximately $2,000,000 is expected to be available through this announcement for fiscal year 2012. 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 seven (7) to ten (10) cooperative agreements.

B. Project/Award Period

The project period is the time-span established in the award document during which federal sponsorship begins and ends. In the past, the term "award period" has also been used to refer to the project period. Each applicant proposes a project period of up to three (3) years in its application. The project period may be extended.

Extensions usually do not exceed 12 months. All extensions must be approved by the grants officer.

C. Type of Funding Instrument

MDCP awards are cooperative agreements, see definition in section VIII.I.3.

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 projects. 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, 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 applications demonstrating that no entity in the 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, non-commercial 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 above 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 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 two dollars for each federal dollar received. The first dollar's-worth of contribution must be cash, the second dollar can be either cash or in-kind contribution worth one dollar. 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 been determined already 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.

Such an eligibility requester should send its determination request to Ms. Annette Henderson, via email to Annette.Henderson@trade.gov or via fax to 202-482-4462.

If unable to obtain an application package via email or fax, an eligibility requester may send its determination request via mail: Attn: Ms. Annette Henderson, U.S.

Department of Commerce, HCHB 3215, 14th Street and Constitution Avenue, N.W., Washington, DC 20230.

The eligibility requirements above are also summarized on a table 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.

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 not found 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 Cuba, 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

Application packages are available at grants.gov and at trade.gov/mdcp.

Applicants are strongly encouraged to submit applications via grants.gov. If unable to obtain an application package via grants.gov or trade.gov/mdcp, an applicant may request an application package via email from Brad.Hess@trade.gov or by contacting Mr. Brad Hess, U.S. Department of Commerce, HCHB 3215, 14th Street and Constitution Avenue, N.W., Washington, DC 20230. Mr. Hess can be reached via telephone at 202-482-2969.

B. Content and Form of Application

In order to be able to submit an application online at grants.gov an applicant must register at grants.gov. Registration is not immediate, so applicants are strongly encouraged to register on grants.gov as soon as possible. It often takes several days between registration on grants.gov and approval to submit an application.

Accordingly, in order to be able to submit via grants.gov applicants should register on grants.gov no later than February 3, 2012.

Applicants will 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. The non-form majority of the application must be drafted, assembled, and saved as .pdf files prior to attempting to submit via grants.gov. (An example of a complete MDCP application is available online at trade.gov/mdcp.) Simply downloading the forms, completing them, and posting them at grants.gov is not enough to constitute a complete MDCP application.

Any applicant that chooses to submit a hard-copy application must do so by delivering an unbound original and two bound copies to the agency contact listed below in VII. Agency Contacts. Applicants should submit electronically via grants.gov or in hard-copy, not both. An applicant that chooses to provide hard-copy must ensure that the service it uses to deliver its application can do so by the deadline. Due to security concerns, packages and envelopes sent to ITA via U.S. mail are often delayed several days. The delays affect all forms of the U.S. mail, including first-class, priority, and express. See IV.F.2.b. Hard-Copy Submissions.

An applicant organizes its application in accordance with the grants.gov filing protocols. Accordingly, the application will be organized into four parts: forms, project, budget, and other.

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 within the margins. Pages that are not easily legible may be ignored by reviewers.

The four 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, budget, and other parts are prepared, an applicant can submit the forms as well as project, budget, and other parts at grants.gov. The forms are as follows:

a. SF-424 Application for Federal Assistance;

b. SF-424A Budget Information;

c. SF-424B Assurances - Non-Construction Programs; and

d. CD-511 Certifications Regarding Lobbying.

Prior to completing SF-424A most applicants find it helpful to use linked electronic spreadsheets to prepare a detailed project budget. Example spreadsheets are available in a document in the application kit at trade.gov/mdcp. Most applicants find it helpful to download this file 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. 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 downloaded from grants.gov.

Some situations might require the use of additional forms; however, applicants must not include documents other than forms in part 1, forms. Any applicant that plans to engage in lobbying the federal government as part of its MDCP project must complete form SF-LLL "Disclosure of Lobbying Activities."

Also, any applicant that plans to sub-contract work or make sub-awards may determine that it needs to complete form CD-512 "Certifications Regarding Lobbying-Lower Tier Covered Transactions." (Any applicant that determines that it needs to complete a CD-512 should complete it but should not submit it. Instead, the applicant should keep it on file.) Forms SF-LLL and CD-512 are available for download at grants.gov as well as at trade.gov/mdcp as part of the application kit, which includes explanations of the forms.

2. Project Narrative File (page limit: 25)

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. This summary should communicate the essence of the application including the following:

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

(2) Partner(s): if applicable, name of any partner organization other than ITA, that will work with applicant (omit if there are none);

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

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

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

(6) Project period: up to three years, proposed by applicant, to begin no sooner that the beginning day of the project period identified by applicant in its application, but not sooner than July 1, 2012;

(7) Project exports: exports anticipated to be generated during the project period;

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

(9) Foreign markets targeted;

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

(11) U.S. market share: size in U.S. dollars of current U.S. share of (10) above;

(12) U.S. industry to be promoted; and

(13) Project description: planned activities and methods.

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 target market(s).

c. Project Description

The project description should include a work plan listing specific activities planned, including the different phases of the project identifying each milestone 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 thirty (30) days after the end of each calendar quarter.

(1) ITA Performance Measures

An applicant must demonstrate that it will gather and report the effect of MDCP project activity on the value of exports of services or goods delivered or contracted. A report template is available at trade.gov/mdcp. The information requested is summarized below.

(a) Exports

Each cooperator reports the dollar value of:

(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 other than MDCP-project-generated transaction-originated reports.

(b) Export class

Each cooperator reports the class of each type of:

(i) Export transaction as new-to-market, new-to-export, or increased-export-to-market;

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

(iii) Export that is not transaction-specific such as an extrapolation of exports from other data or claiming one (1) percent of all exports of targeted products to the foreign market resulting from standards-related MDCP project activity per the Deutsches Institut für Normung (DIN) finding that standards-liberalizing activity generally results in a one (1) percent increase in gross domestic product.

(c) Other Export-Related Information

Each cooperator reports as much of the following information as is available regarding exports: foreign market, exporter's name/city/state/email address, and names of ITA Commercial Service staff who facilitated the export.

(d) Progress indicators

For each event-recruiting campaign, each cooperator reports the date it first presented its success agreement to potential participating companies. For each event a cooperator reports the date that it first sent to its ITA-MDCP team a list of companies that plan to participate in an upcoming activity. Each cooperator reports trade decision points, instances resulting from project activity where a target-market official with authority to make trade decisions takes action. Examples of trade decision points include, but are not limited to, a potential buyer meeting with a U.S.

exporter, or a foreign official making a standards determination that will allow U.S.

exporters to better determine conformity of their products to be exported.

(2) Applicant-Designed Performance Goals

In its application an applicant should develop and utilize performance goals that reasonably gauge project 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.

(3) Estimate Performance in the Application

In the application each applicant must estimate the performance level that it believes it will achieve for each of the measures and explain how it arrived at the estimates. Export performance estimates must be listed in the executive summary for both project period exports and post-project period exports (those exports anticipated to be generated during the four years immediately following the project period).

For applicant-designed performance goals, an applicant selected as a cooperator must be able to measure progress during the award period. For example, a cooperator that plans to average a trade mission every six (6) months during a three

(3) year project would have a performance goal of six (6) for trade missions, 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 success of individual companies that demonstrate an industry's strengthened competitiveness. Therefore, each applicant should demonstrate how it plans to get success information from participant companies and any other relevant sources.

e. Partnership

In order to obtain the maximum market development impact, each applicant should display in its application the imagination and innovation of the private sector working in partnership with the government. 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 resume for the project director and professional personnel;

and

(6) Project 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 or not 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.

h. Use of ITA Emblem

Each applicant must provide at least one mock-up example indicating how the applicant 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 that are selected for MDCP awards. An example of the proposed use of the ITA emblem is available at trade.gov/mdcp.

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. Such an agreement generally includes a list of the benefits that participants will receive and a notice that participants are obligated to report performance measurement information. An example is available at trade.gov/mdcp.

j. Eligibility Letter

No applicant needs to submit letters they have received from ITA regarding determination of eligibility. ITA already has determinations of eligibility on file.

3. Budget Narrative Attachment Form (page limit: 20)

Each applicant must provide a detailed budget for the project including the elements listed below.

a. Budget for Project Award Period

This spreadsheet breaks down the budget into the categories used on the SF- 424A and apportions it over the award 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 spreadsheet is available for download at trade.gov/mdcp.

b. Supporting Worksheets and Explanations;

The figures summarized on the budget for project award period 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 award period 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 indirect expenses. Example spreadsheets are available for download at trade.gov/mdcp.

c. Financial Systems

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 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 five years. Only awards of $20,000, or more need to be considered when summing the amounts. If the total of such awards exceeds $100,000, the applicant must provide a summary of each award in excess of $20,000.

The summary should include the following information about each award-making organization: award reference number, contact name, title, telephone number, current email or fax, and mailing address. Awards of less than $20,000 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.

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 in the event that 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

In the event that none of the methods described above are sufficient to demonstrate its financial responsibility, an applicant may choose to provide other suitable proof of same.

4. Other Attachment (page limit: 10)

Although the term of art in grants.gov is "mandatory other attachment," for many MDCP applicants, this part will not be mandatory. This part should only be attached to the application in grants.gov if one or more of the elements listed below is relevant to an MDCP project application.

a. 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.b. Table Comparing Application to Current or Past MDCP Project, below.

b. 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.

c. Letters of Support from Public Officials

Letters of support from public officials are not required or expected. However, the one exception as noted under IV.B.3.f. is a public official who has pledged financial or in-kind support for the proposed project. A letter of support from such a person is directly relevant to the viability of the project. An applicant that chooses to submit a letter of support should secure it soon enough to include it in the "other" attachment. This will ensure that the merit review panel and other reviewers will see the letter. It also reduces administrative burden because ITA does not respond to letters appended to MDCP applications.

In order to include a letter of support in its application, an applicant should request that any authors of letters of support send the original or a copy to the applicant. It is the responsibility of the applicant to include a copy of the letter in its application.

ITA officials 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.

d. 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., 2. or 3. above, nor under IV.B.4.a. through c. above. An applicant may include any such documentation within the "other documents" section. Any documentation provided should support or explain the other portions of the application and should be labeled so as to identify its relevance to the application.

Other documentation provided under this section 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. Submission Dates and Times

Complete applications must be received and validated by grants.gov or if submitted as hard-copy received by ITA on or before 5:00 p.m. EST, February 21, 2012. Applicants should note: Validation or rejection of an application by grants.gov may take up to two (2) business days after submission. Applications received after the deadline will be rejected/returned to the sender without further consideration. Use of U.S. mail or another delivery service must be documented with a receipt.

Applicants whose applications have been received by the deadline will be notified via e-mail or fax within ten (10) days of the submission deadline.

D. Intergovernmental Review

There are no intergovernmental review requirements beyond those already noted.

E. Funding Restrictions

1. Non-Construction Project

Neither an MDCP award nor 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 above 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 by the government.

3. Joint Ventures

Entities may join together to submit an application as a joint venture;

however, only one eligible organization can be the designated 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.2. Supplemental Explanation of Cost Share and Match, below, when formulating a partnership or joint venture.

F. Other Submission Requirements

1. Number of Pages

Each of the four parts of the application has a page limit. The maximum number of pages for an entire application is 55 plus the number of pages for all required forms as identified in IV.B.1. Forms, above. These page limits are summarized below.

a. Forms: limited to the number of required forms (typically 9 or 10 pages)

b. Project: 25 pages

c. Budget: 20 pages

d. Other: 10 pages

The page limits are not fungible. Over-limit pages from one section cannot take the place of under-limit pages from another. For example, if an applicant has 15 pages in the project part, ten (10) less than the limit, it is not allowed to submit 30 budget part pages, ten (10) over the 20-page limit for the budget part.

Every 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 aren't really necessary. Another way to reduce the number of pages in an application is to send eligibility determination documents directly to ITA rather than include them in the application. This can be done even after the deadline for submitting an MDCP application has passed.

2. 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.

b. Hard-Copy Submissions

If, instead of submitting via grants.gov, the applicant submits hard copy, ITA will scan the unbound original with a pass-through scanner to create an electronic copy which can be easily transmitted to ITA reviewers. Any applicant that chooses hard-copy submission must present a signed unbound original application in addition to the two copies. It is important that the original be unbound in order to facilitate scanning.

It is the responsibility of the applicant to ensure prompt delivery of its application to ITA. Applicants should not rely on first-class mail because this service has no guaranteed delivery time. Even if an applicant chooses an express delivery service, it must use one that represents that it can deliver the application to ITA by the deadline.

In the event that the guaranteed delivery time is not fulfilled, the applicant should contact the official listed in VII., below, as soon as the delivery delay or failure is known. If the applicant can document that the chosen delivery service should have delivered the application on time, ITA will grant a reasonable amount of time to receive the application or allow the applicant to resend it in the event that the previously sent application was lost, destroyed, or mutilated. Otherwise, ITA will reject the application as untimely.

3. 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 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 years. Otherwise, late applications and applications submitted by ineligible applicants are destroyed if submitted as hardcopy and erased if submitted electronically. 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.

Applicants should apply online at grants.gov. If unable to apply electronically, hard copy submissions will be accepted. Hard copy submissions must be addressed to: Mr. Brad Hess, U.S. Department of Commerce, 1401 Constitution Ave., N.W., Room 3215, Washington, DC 20230.

V. Application Review Information

A. Evaluation Criteria

ITA is interested in projects that demonstrate the possibility of both significant progress during the award period and lasting benefits extending beyond the award period. To that end, the merit review panel reviews each application for MDCP financial assistance based upon the evaluation criteria listed below.

1. Potential to Strengthen Competitiveness (20 points)

Each applicant must demonstrate the effects the project proposed in its application will have on U.S. employment. An applicant that fails to demonstrate how project-generated exports will sustain or create U.S. jobs cannot earn more than ten (10) points under this criterion. For example, a project to generate exports of U.S.-manufactured widgets strengthens U.S. industry competitiveness better than a project to facilitate the sale of widget manufacturing technology abroad because the sale of widget manufacturing technology abroad is likely to decrease U.S.

employment in the widget industry. Such a technology-transfer approach would likely result in a short-term windfall to a U.S. exporter selling the technology, but would ultimately fail to translate into U.S. job growth, rather it may cause the loss of U.S. widget jobs to newly-enabled foreign competitors. This is just one example.

Each applicant must consider the ramifications of its project on exports and U.S. jobs and MDCP objectives when it applies for an MDCP award.

Given that the primary performance metric for MDCP projects is exports generated, an applicant will demonstrate competitiveness-enhancement in the likelihood that it will get U.S. companies, particularly SMEs (small- and medium-size enterprises), to engage in activities that will result in exports. As noted above in I.A.2. Examples of Project Activity, many different kinds of activity can strengthen the competitiveness of U.S. industry; however, an applicant can earn the maximum number of points under this criterion only by demonstrating how its proposed project is expected to result in increased export initiatives by individual U.S. firms and exports by those firms.

2. Performance Measurement (20 points)

Applicants must provide quantifiable estimates of exports to result from project activity and explain how the estimates are derived. No application that lacks an estimate of exports can receive a performance measurement score that exceeds ten (10). Applicants must detail the methods they will use to gather and report performance information.

Merit review panelists will consider the relative significance of the projected exports. The total value of exports projected when compared to the amount of MDCP award requested is one measure of export significance that the merit review must consider. However, merit review panelists 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.

3. Partnership and Priorities (20 points)

The merit review panel will consider the degree to which the project initiates or enhances partnership with ITA and the degree to which the proposal furthers or is compatible with ITA's priorities stated under I.B. Program Priorities above.

4. Creativity and Capacity (20 points)

The applicant must demonstrate creativity, innovation, and realism in the work plan as well as its institutional capacity to carry out the work plan.

a. Demonstrating Creativity

Creativity may be illustrated by seeking to develop 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, such as the client groups served by the proposed project or by the manner in which techniques are customized to meet the specific needs of certain client groups.

b. Current or Past MDCP Projects

An applicant that has received an MDCP award in the past 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 start-up 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, the merit review panel will consider the level to which a particular applicant has incorporated elements of its previously funded MDCP projects. To do this, a current or past cooperator must submit a table wherein it estimates the amount of resources devoted to each 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 receive fewer points under this criterion than it would receive otherwise.

c. Institutional Capacity

ITA measures institutional capacity by what each applicant submits. An applicant that is a current or past cooperator should not assume that success with a prior MDCP project will be taken into account automatically by the merit review panel when reviewing its application. Each applicant must document its institutional capacity in its application.

One indicator of institutional capacity that the merit review panel will take into account is the extent to which the applicant abides by the MDCP application parameters stated in this notice. For example, in order for an applicant to score as high as possible with regard to institutional capacity, an applicant must stay within the page limitations and submit an application that is easily legible.

5. Budget and Sustainability (20 points)

This criterion encompasses the reasonableness of the itemized budget for project activities, the amount of the cash match that is readily available at the beginning of the project, and the probability that the project can be continued on a self-sustained basis after the completion of the award. Each applicant, even if it is a current or past cooperator, must show how the proposed project will achieve self-sustainability. ITA does not assume that completed or ongoing projects undertaken by current or past cooperators are self-sustaining. As noted in V.A.4.c., above, ITA assesses each application based on what each applicant includes in its application.

Each of the above criteria is worth a maximum of 20 points. The five (5) criteria together constitute the application score. At 20 points per criterion, the total possible score is 100.

B. Review and Selection Process

The applicant is responsible for submitting a complete application by the application deadline. Prior to selection, each complete application receives a thorough evaluation as set forth below.

1. Eligibility Determination

No applicant may receive an MDCP award until it has first been found to be eligible as defined under III.C.2. Determination of Eligibility, above. Staff of the Office of Planning, Coordination and Management (OPCM) in ITA's Manufacturing and Services (MAS), in consultation with the Department's Office of General Counsel, reviews all applications to ensure that each applicant has received a determination that it is eligible to receive an MDCP award. Each applicant should ensure that it has an eligibility determination from ITA before submitting its application.