oppmbda-obd-2016-2004579-cfda11.805-cid2568631-instructions.pdf

MBDA-OBD-2016-2004579

ANNOUNCEMENT OF FEDERAL FUNDING OPPORTUNITY

FULL TEXT OF ANNOUNCEMENT

Federal Agency Name: U.S. Department of Commerce, Minority Business Development Agency

Funding Opportunity Title: MBDA Business Center Program Announcement Type: Initial Announcement FFO Number: MBDA-OBD-2016-2004579 CFDA Number: 11.805 MBDA Business Center Program Funding Instrument: Cooperative Agreement1

Funding Amount: Funding has not been appropriated, but we expect a total of $1,540,225 in FY 2016 funds to be available. We also expect $1,540,225 per year for continued funding of this program through FY 2021.

Closing Date for Submissions: A completed application must be transmitted and time-stamped at www.Grants.gov no later than 11:59 p.m. Eastern Time (ET) on December 21, 2015. Applications received after the closing date will not be considered.

Funding Opportunity Description: This Federal Funding Opportunity (FFO or Announcement) announces the anticipated availability of funding for the MBDA Business Center (“Center”) program, and solicits competitive applications for operators of MBDA Business Centers in (5) five locations. MBDA Business Centers are established to provide technical assistance and business development services. The technical assistance and business development services are provided through federal financial assistance awards to generate increased financing and contract opportunities for minority business enterprises (MBEs). In addition, the services provided will assist MBEs in creating and retaining jobs.

Pre-Application Teleconference: MBDA will conduct a pre-application teleconference on – November 2, 2015. The time of the pre-application teleconference has yet to be determined.

Participants must register at least 24 hours in advance of the teleconference. Please visit the MBDA Internet Portal at www.mbda.gov for more information.

1 A cooperative agreement is the funding instrument used when there will be substantial Federal Government programmatic involvement. Substantial involvement means that, after award, MBDA program staff will assist, guide, coordinate, or participate in Center activities. This FFO is not to start or to expand an individual business.

Applications must be submitted for the operation of an MBDA Business Center that will provide business development services to eligible minority-owned firms as set forth in this Announcement. Applications that do not meet these requirements will not be considered.

Table of Contents

SECTION I: FUNDING OPPORTUNITY DESCRIPTION

A. Program Overview B. Introduction C. Program Objective D. Program Authority

SECTION II: AWARD INFORMATION

A. Funding Availability B. Period of Performance C. Type of Funding Instrument D. Notification of Award

SECTION III: ELIGIBILITY INFORMATION

A. Eligible Applicants B. Cost Sharing or Matching Requirement

SECTION IV: APPLICATION SUBMISSION INFORMATION

A. Application Overview B. Application Package C. Grants.gov Registration D. Electronic Submission E. Unique Entity Identifier and System for Award Management (SAM) F. Returning Grants.Gov Users G. Content and Form of Application H. Required Applicant Narrative Attachments I. Proposed Budget and Budget Narrative J. Performance-Based Budgeting ……………………………………………………….….17

K. Program Income Budgeting L. Funding Restrictions

M. Bonus Points Available ………………………………………………………………

N. Standard Forms O. Application Submission Checklist

SECTION V: APPLICATION REVIEW INFORMATION

A. Initial Screening B. MBDA Merit Review Panel C. Evaluation Criteria……………………………………………………………………….22 D. Final Selection and Recommendation for Funding E. Intergovernmental Review F. Anticipated Announcement and Award Dates G. Application Submission Checklist

SECTION VI: FEDERAL AWARD ADMINISTRATION INFORMATION

A. Federal Award Notices B. Post Award Conference C. Administrative and National Policy Requirements D. Program Award Requirement

SECTION VII: AGENCY CONTACT

SECTION VIII: OTHER INFORMATION

A. Past Performance and Non-Compliance with Award Provisions B. Limitation of Liability C. Audit Costs D. Freedom of Information Act Disclosure E. Appendices to the FFO and Program Requirements Documents

SECTION I: FUNDING OPPORTUNITY DESCRIPTION

A. Program Overview MBDA Business Centers provide technical assistance and business development services to minority business enterprises (MBEs). In accordance with Executive Order 11625 and 15 U.S.C. § 1512, MBDA is soliciting competitive applications from eligible organizations for the operation of MBDA Business Centers. MBDA will award five (5) individual cooperative agreements pursuant to this Announcement in the following metropolitan areas:

The applicant may propose the physical location of the center in the metropolitan area as noted above. Alternatively, the applicant may propose the location of the center in an area adjacent to the noted metropolitan area above.

B. Introduction The Minority Business Development Agency (MBDA), a bureau of the U.S. Department of Commerce, leads Federal Government efforts to promote the growth and global competiveness of America’s growing minority business enterprise (MBE) community. Through MBDA’s services, MBEs are better equipped to create jobs, contribute to local economies, and sustain America’s position as a world economic leader. Today, MBEs number more than 7.9 million and generate over $1.6 trillion in revenues. Minority-owned firms are consistently cited by economists as an engine of employment growth and economic expansion in America.

The MBDA Business Center program, a key component of the Agency’s overall portfolio of minority business development services, focuses on securing domestic public and/or private contracts and financing transactions, exports, and job creation for “eligible minority-owned businesses.” Organizations that are owned or controlled by the following persons or groups of persons are eligible to receive technical business assistance services from the MBDA Business Center Program: African American, Hispanic American, American Asian and Pacific Islander, Native American (including Alaska Natives, Alaska Native Corporations and Tribal entities), Asian Indian American, and Hasidic Jewish Americans. See 15 C.F.R. §1400.1, 1400.2 and Executive Order 11625.

The services are designed to assist MBE clients with achieving higher levels of growth and competitiveness. While Centers serve all MBEs target clients are (1) firms with annual revenues of over $1,000,000; (2) firms involved in high-growth industries (e.g., green technology, clean energy, health care, IT, infrastructure and broadband technology, among others); or (3) firms with rapid growth potential (see Appendix D: Definitions of Key Terms).2

2 Start-up and/or micro firms will be served by the MBDA Business Center program via strategic partnership referrals

COMPETITION ID 2553674

Baltimore, MD

COMPETITION ID 2568627

Boston, MA

COMPETITION ID 2568629

Manhattan, NY

COMPETITION ID 2568631

Pasadena, CA

COMPETITION ID 2568633

St. Louis, MO

Promoting the success of MBEs is anticipated to have a significant impact on employment and the tax base in their communities, and positive economic impact throughout the nation.

C. Program Objective The primary drivers of the Business Center program are: (i) capacity building, and (ii) job creation/retention resulting from facilitating contracts and financing for medium-sized minority businesses. MBDA Centers provide technical business services including (but not limited to) the development of a pool of contract and finance opportunities; direct matching of opportunities with qualified/vetted MBEs; relationship management and deal sourcing initiatives (e.g. industry clusters); facilitating MBE growth through exports (identifying global markets and financing); identifying, matching and securing alternative sources of capital and financing; educating MBEs on the benefits of strategic growth alternatives (e.g., mergers, acquisitions and/or joint ventures); MBE advocacy; and providing service referrals to MBEs of all sizes.

Each Center is required to work collaboratively with all MBDA Business Centers and other MBDA sponsored projects (“Network”). Each Center will engage the Network and offer its services to assisting MBE clients through Network collaboration.

D. Program Authority MBDA is authorized, in accordance with Executive Order 11625 and 15 U.S.C. § 1512, to solicit competitive applications from eligible organizations for the Minority Business Development Agency Business Center program.

or electronic service delivery mechanisms (e.g., MBDA Business Portal) www.mbda.gov.

SECTION II: AWARD INFORMATION

A. Funding Availability The total funding period for the awards made under this solicitation is three (3) base years and two (2) optional years. Funding for this program has not yet been appropriated, but we expect a total of $1,540,225 per year to fund the financial assistance awards for the operation of MBDA Business Centers identified in this FFO through FY 2021. The anticipated amount of the federal funding for each Center being competed under this FFO for each of the program years is listed (see Appendix A: Funding Availability by Center Location).

Each award is expected to range from $285,400 to $321,800 per year. The federal share of funding levels is based at $250,000 plus locality adjustments. The locations of the Centers are based on the size and ranking of minority populations in each metropolitan statistical area (MSA), the overall number of minority firms in MSAs (as established by U.S. Census Bureau data), and other available research and data.

Applicants requesting renewal of existing projects are eligible to apply for new awards under this announcement.

The minimum non-federal cost sharing requirements under the MBDA Business Center program are discussed in the FFO (see Section II.D —Non-Federal Cost Share Requirement).

The funding periods and funding amounts referenced in this FFO are subject to the availability of appropriated funds, as well as Department of Commerce and MBDA priorities at the time of award. Neither the Department of Commerce nor MBDA m a y be held responsible for proposal preparation costs. All funding periods under the award are subject to the availability of funds to support the continuation of the project. Publication of this FFO does not obligate the Department of Commerce or MBDA to award any specific cooperative agreement or to obligate all or any part of available funds.

Federal funds must be fully expended by the Center operator during each funding period and are not permitted to be carried-over to subsequent funding periods. The Center operator’s failure to fully expend annual federal award funds for purposes related to the Business Center program may result in programmatic enforcement or termination of federal funding allocated by MBDA to subsequent funding periods under the award.

B. Period of Performance Awards are anticipated to be made with a start date of September 1, 2016. The period of performance under this solicitation is five years, consisting of one base period (three consecutive program years) and optional (two program years) periods. Applicants must submit one budget (Form SF-424A) and corresponding budget narrative for each year, including the two optional program years. MBDA may approve funding for a Center in years two through three if the Center is operating at a “Commendable” or “Outstanding” performance level at the time during the current program year that MBDA makes its recommendations to the Grants Officer for continuation funding for the next program year. A Center operator with a performance rating of “Good” or lower will not qualify for automatic renewal, but the award terms and conditions will be subject to renegotiation and special award conditions for the next funding period at the discretion of MBDA, and subject to the approval of the Grants Officer.

Recommendations for continued funding are generally evaluated by MBDA based on the mid-year performance rating and/or a combination of the mid-year and cumulative third quarter performance ratings for the current performance year. MBDA and the Department of Commerce will consider all the facts and circumstances of each case, such as, but not limited to, market conditions, most recent performance of the Center and any mitigating circumstances.

C. Type of Funding Instrument Financial assistance awards in the form of cooperative agreements will be used to fund the MBDA Business Center program. MBDA shall maintain substantial involvement with the Center operator and Center staff throughout the award period. The substantial involvement will include a post-award conference, training, and advisement, in addition to work coordination and collaboration with MBDA and other MBDA funded programs, project monitoring, and administrative and reporting requirements (see below, section VI.B and VI.D, Federal Award Administration Information).

D. Notification of Award Anticipated time for processing awards is approximately two hundred (200) days from the closing date for receipt of applications. MBDA anticipates awards will be made with a start date of September 1, 2016.

SECTION III: ELIGIBILITY INFORMATION

A. Eligible Applicants For-profit entities (including but not limited to sole-proprietorships, partnerships, limited liability companies and corporations), non-profit organizations, state and local government entities, Native American Tribes and educational institutions are eligible to apply to operate MBDA Business Centers.

Successful applicants will possess experience in assisting minority firms in obtaining large scale contracts/procurements and financing awards; accessing established supply chains;

educating and assisting minority firms in joint ventures, teaming arrangements, mergers and acquisitions; minority business advocacy; and, facilitating entry and large scale transactions in global markets. It is also anticipated that the mission of successful applicant organizations will align with both the mission of MBDA and the MBDA Business Center program objectives.

B. Cost Sharing or Matching Requirement “Cost sharing or matching” is the portion of project costs not paid by Federal funds; these costs are provided by the Center operator or Center as direct or in-kind contributions. These costs are not borne by the Federal Government, or other federal awards or grants unless allowed by statute. Beyond the required generation of program income, applicants may contribute additional non-federal cost share to the award by one or more of the following methods: (1) applicant cash contributions; (2) applicant in-kind (i.e., non-cash) contributions;

or (3) third-party cash or in-kind contributions (including a state or local grant or other form of support for the project). All cost sharing or matching must be consistent with the requirements of 2 CFR §200.306.

Each Center shall have a minimum of 33% (of estimated total) non-federal cost share under the MBDA Business Center program (see Appendix A: Funding Availability by Center Location.)

Additionally, cost sharing or matching through the generation of “program income” is mandatory. Applicants may propose non-federal cost share beyond the minimum requirement.

Applicants who propose non-federal cost share in excess of the minimum 33% will receive bonus points under the competitive evaluation process (see Section V-3.Bonus Points – Non- Federal Cost Share in Excess Minimum).

The Center program is a fee-for-service program and the Center operator is required to generate “program income” through the collection of client fees, membership fees, success fees and/or other fee structures proposed by the applicant. All proposed fee structures must be acceptable to MBDA, approved by the Grants Officer, and consistent with the requirements for cost sharing and matching in 2 CFR §200.306. Program income identified by the applicant in the applicant’s proposed budget and approved by the Grants Officer must be applied directly to the Center’s non-federal cost share and must be used in furtherance of program objectives. In addition, for each funding period under the award, the Center operator will be required to contribute cash or another acceptable form of non-federal cost share to the award to compensate for uncollected program income that was included in the approved Center budget.

If the Center generates more program income during a funding period than is allocated to the award’s non-federal cost share for such funding period, the excess program income must be used by the Center operator in furtherance of eligible Center objectives. Subject to written approval by the Grants Officer, program income generated by the Center that cannot be expended during the funding period in which it is earned may be carried forward by the Center operator for one year and expended only in furtherance of program objectives in the award’s next subsequent funding period.

However, the Center operator may not apply excess program income generated during one funding period to prior program funding periods to fund non-federal cost share shortfalls. In addition, program income that is not (1) expended in furtherance of project objectives, (2) carried forward for expenditure in the succeeding funding period with written approval of the Grants Officer, or (3) used for completion of the work by the end of the overall award period will be deducted from the project’s total allowable cost. The Center operator may be required to reimburse MBDA for some, or all, of the federal share disbursed to the Center operator under the award if any of the aforementioned circumstances occur (see Section IV – I.

Proposed Budget and Budget Narrative).

SECTION IV: APPLICATION SUBMISSION INFORMATION

A. Application Overview Please make sure to begin registration early, as the process takes between three business days and three weeks. Before applying for a funding opportunity, your organization needs to register with Grants.gov, and assign one or more Authorized Organization Representatives (AOR). We recognize registration activities may take extra time, but this is part of the security process the U.S. Government must use to prevent fraud and abuse of funds. If you do not complete your registration by the submission deadline, you will not be allowed to submit an application. The Grants.gov application process is outlined below.

Obtain a DUNS Number. Call 1-866-705-5711 or access the Dun & Bradstreet website http://fedgov.dnb.com/webform. (1-2 business days).

Register with SAM. Access https://www.sam.gov. You'll also need the authorizing official of your organization and an Employer Identification Number (EIN). (7-10 business days)

Create Grants.gov Username and Password. Complete your Authorized Organization Representative (AOR) profile and create your username and password. You'll need to use your organization's DUNS Number. (same day)

Authorize the AOR. Request approval, then your organization's E-Biz POC must log in to Grants.gov to confirm you as an AOR. (same day)

Track AOR Status. Log in to Grants.gov and look at the Applicant Center welcome box for your current status. (same day)

Download an application package. Use Funding Opportunity Number MBDA-OBD-2016-2004579 and Download a Grant Application Package, (same day)

Complete your application package. Write your proposal and fill out ALL the required forms, fields, and certifications. (allow 3 days)

Submit your application package. Access your completed application package, ensure all the necessary information is entered, check the package for errors, then click the "Save & Submit" button on the cover page. (3 days) Track my application package. Enter the tracking number you received after Step 8 and click the "Submit Tracking Number(s)" button.

B. Application Package All application materials and forms are available at the grants.gov website (http://www.Grants.gov). Additional competition materials can be found on the MBDA Internet Portal (www.mbda.gov). Applicants may also obtain a paper copy of the application forms by making a request to the agency contact, Joann Hill or Nakita Chambers (see VII.

Agency Contacts, for contact information).

Applications must be submitted electronically via www.grants.gov and received by MBDA by 11:59 p.m. Eastern Time (ET) on December 21, 2015. The electronic submission will receive a date and time stamp at www.grants.gov and will be processed after it is fully uploaded. The time it takes to completely upload an application will vary depending on a number of factors, including the size of the application, the speed of the applicant’s Internet connection, and the time it takes www.grants.gov to process the application. If www.grants.gov rejects the application, the applicant must resubmit the entire application before the deadline date and receive a date and time stamp from www.grants.gov. The www.grants.gov time stamp will be considered the date and time of submission receipt. Before beginning to apply through www.grants.gov, please review the application instructions posted at www.grants.gov and in this FFO Announcement.

C. Grants.gov Registration To submit an application through www.grants.gov, you must register for a user ID and password. This process can take between three to five business days; and up to four weeks if all steps are not completed correctly. To avoid delays, start early and do not wait until the deadline approaches to register or to review the application instructions. Information about the registration process can be found at http://www.grants.gov/web/grants/register.html.

Before applying, your organization needs to register with Grants.gov, which requires appointment of one or more Authorized Organization Representatives (AOR). Below are instructions for registering as an organization. 3

Please make sure to begin registration early, as the process takes between three business days and three weeks. If you do not complete your registration by the submission deadline, then you will not be allowed to submit an application. Applicants should register as organizations, not individuals. You must register an (AOR) for your organization. The AORs registered at www.grants.gov are the only officials with the authority to submit applications for your organization. Your organization may authorize multiple AORs for www.grants.gov purposes.

3 An organization is an entity that submits grant applications on behalf of the group, such as a state government, nonprofit organization, or a private business.

D. Electronic Submission The electronic submission date is the date that applications will be deemed to have been submitted electronically and shall be the date and time received by www.Grants.gov.

You must save and print the proof of submission www.Grants.gov. Applicants should plan to submit the application electronically several (3-5) days before the deadline to ensure that the application is complete and accepted by grants.gov before the submission deadline. If problems occur while using www.Grants.gov, the applicant is advised to (i) print any error message received, and (ii) call www.Grants.gov at 1-800-518-4726 for immediate assistance.

If you experience a Grants.gov “systems issue” (technical problems or glitches with the Grants.gov website) that you believe threatens your ability to complete a submission before an applicable funding cycle deadline, please (i) print any error message received; and (ii) call the Grants.gov Contact Center at 1-800-518-4726 for immediate assistance. Ensure that you obtain a case number regarding your communications with Grants.gov. Please note: problems with an applicant organization’s computer system or equipment are not considered “systems issues.”

Similarly, an applicant’s failure to: (i) complete the required registration, (ii) ensure that a registered AOR submits the application, or (iii) receipt of an email message from Grants.gov are not considered systems issues. A Grants.gov “systems issue” is an issue occurring in connection with the operations of Grants.gov system, such as the temporary loss of service by Grants.gov due to unexpected volume of traffic or failure of information technology systems, both of which are highly unlikely. In the event of a confirmed “systems issue,” MBDA may allow more time for applicant submission due to system problems at Grants.gov at the time of application submission that are beyond the control of the applicant. Problems with your application or computer systems are not considered systems issues. Failure to complete the required registration, ensure that the AOR submits the application, and obtains a notice receipt in the form of an email message from www.grants.gov or any other government site (e.g., www.sam.gov), and failure to comply with the requirements of www.grants.gov are not systems issues.

The preferred format for electronic attachments is .pdf. This is the most prevalent format for documents that are scanned from hard-copy. However, the Department will accept electronic files in Word or Excel formats.

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

Each applicant (unless the applicant is an individual or Federal awarding agency which has an exception from the requirements of 2 CFR § 25.110(b) or (c), or an exception approved by the MBDA under 2 CFR § 25.110(d)) is required to:

(i) register in SAM before submitting an application;

(ii) provide a valid unique entity identifier in the 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 MBDA (or any other Federal agency).

MBDA may not make a Federal award to an applicant until the applicant has complied with all applicable unique entity identifier and SAM requirements. If an applicant has not fully complied with the requirements by the time MBDA is ready to make a Federal award, MBDA 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.

F. Returning Grants.Gov Users Organizations already registered with Grants.gov do not need to re-register, but the organization must maintain its System for Award Management (SAM) registration (formerly Central Contractor Registration (CCR)). If the applicant’s SAM registration is not up-to-date the application will not be accepted by Grants.gov. An applicant’s CCR username will not work in SAM. Applicants must create a new SAM user account to renew or update your registration. To obtain additional information and to verify that all required registrations are current, please visit www.sam.gov/portal/public/SAM. SAM is the Official U.S. Government system that consolidated the capabilities of CCR Federal Agency Registration (FedReg), Online Representations and Certifications Application (ORCA), and Excluded Parties List System (EPLS).

G. Content and Form of Application In general, the applicant’s proposal must define how it will implement the Center work requirements (see Appendix K: Work Requirements) and achieve the performance goals set forth in this FFO. A complete application includes the following:

Detailed applicant narrative with defined sections;

Detailed budget with narratives for each performance year;

Required attachments and certain Standard Forms (SF); and, Department of Commerce (CD) forms.

An applicant must submit a separate proposal for each MBDA Business Center for which it is applying. Applications should include the elements for each section as described below in order to be eligible for the maximum number of points. ( Refer to Section V.C.—Evaluation Criteria for discussion of points associated with each element discussed in this section.)

Applications that fail to include all of the necessary elements (in the order outlined below) will not be reviewed or considered and will be disqualified. The Applicant Narrative should not exceed 50 pages (this does not include budget and budget narrative). A complete application should contain the following:

1) Cover Page and Table of Contents. At a minimum, the application cover page must provide the applicant’s name, address, telephone number, email address, date of submission, and the Competition ID listed for the Center for which the applicant is applying. Under the table of contents applicants should outline the full contents of the application and provide corresponding page numbers. All pages of the application must be consecutively numbered.

2) Applicant Narrative. The applicant narrative must contain the following:

a) Capability.

i) Organizational Background and Knowledge of Community: This section should discuss the Applicant’s organizational background, emphasizing knowledge of the minority business sector and strategies for enhancing its growth and expansion.

Consideration will be given to whether the applicant has a physical presence in the applicable location and past experience providing related services.

b) Mission Alignment. The extent to which the mission of the applicant organization aligns with the mission of MBDA and the objectives of the MBDA Business Center program.

i) Access to Contracts and Markets: Applicant’s knowledge of and experience in public and private sector contracting opportunities for MBEs, as well as demonstrated experience in assisting clients into supply chains, and demonstrated experience working with high growth industries. The applicant’s professional working relationships and networks with potential sources of contracts for MBEs will also be considered.

Additionally, the applicant’s experience with facilitating large contract/procurement deals on behalf of minority firms, conducting business matchmaking forums, and assisting MBEs with the establishment of joint ventures and teaming arrangements will be considered.

ii) Access to Capital: Applicant experience in successfully preparing and matching MBEs with traditional sources of capital, alternative sources of financing (e.g., equity and venture capital), loan and bonding packages, and mergers and acquisitions. Applicant’s professional working relationships and networks with financial institutions (e.g., corporate, banking and investment communities) that can be used for immediate implementation.

iii) Business Consulting: The applicant’s experience with and strategies for enhancing minority business growth and delivery of business consulting services and related successful client outcomes. Give three examples through client success stories (include description of challenge, action taken and results) and three related customer satisfaction results/ reports.

iv) MBE Advocacy: Demonstrated knowledge and action pertaining to the challenges faced by minority business owners and willingness to provide information and dialogue with MBDA leadership and strategic partners.

c) Resources.

i) Key Staff: Qualifications and experience required of proposed staff, including but not limited to, the Center director and Center business consultants. The applicant is encouraged to identify a proposed Center director with its application or after an award is issued. All Center staff shall possess the ability to deliver and/or support the program services and fulfill the work requirements of this FFO, and must be experienced in using information systems. Position descriptions, qualification requirements, education requirements, and salary ranges must be provided for each proposed Center staff position (include under Program Narrative attachments). If a specific individual is identified for a position, a copy of the individual’s resume must be submitted.

Applicant’s plan for recruiting staff should be addressed.

ii) Partners: The applicant’s plans for establishing and maintaining a network of strategic partners and the extent to which each partner will support the Center in implementing program services and meeting program performance goals. Whether the partnerships will be used to assist clients with securing contracts, securing financing, job creation, penetrating global markets, achieving size and scale, advocating for minority businesses, or providing referrals for services will also be considered. A description of how the applicant will interact and coordinate with its strategic partners for successful client outcomes will also be considered.

iii) Other Resources: Resources that will be used to implement the program in each of the five program years will be considered. Resources include, but are not limited to, existing prior and/or current data lists that will serve in fostering immediate success for the Center.

iv) Location/Equipment: The applicant’s strategic rationale for the proposed Center office (see Appendix J: Office and Space Requirements). The applicants plan to satisfy Center information technology requirements, including computer hardware, software, creation and support of the Center website, and network map will also be considered (see Appendix E: Information Technology and Computer Requirements).

d) Techniques and Methodologies.

i) Performance Measures: For each of the five (5) funding periods, the applicant’s techniques and methodology to be used in implementing the program will be considered, including the quarterly breakdown of the performance goals. In addition, the applicant’s recognition of and strategy for addressing existing market conditions in achieving performance goals will be considered. Additionally, how the applicant proposes to establish a system that corresponds to, or may complement, MBDA’s tracking and validation of contracts and financings will be considered (see Appendix B:

Performance Goals by Center). Please note that deviations, either above or below, from the Performance Goals by Center require justification.

ii) Start-up Phase: The applicant’s project work plan for commencement of Center operations within the initial 60-day period will be considered. The Center shall have sixty (60) days to become fully operational after an award is made (see Appendix K:

Work Requirements). The work plan must include significant implementation milestones, such as the hiring of key staff and the opening of the Center facility.

iii) Work Requirements Execution Plan: The applicant’s description of how Center staff time will be used effectively and efficiently to achieve the work requirements of the overall program (including the start-up phase) will be considered. Please note that the applicant must include a specific five-year plan-of-action detailing how the Center work requirements will be met for each of the five (5) funding periods (see Appendix K:

Work Requirements). A staff allocation chart for each of the five (5) years must also be included as part of the work requirements execution plan (example provided below). The Center staff allocation summary must include a Center director, and all other Center staff, volunteers, and interns. Each staff role must be identified as full or part- time, with the estimated hours to be worked on a yearly basis.

iv) Center Operating Hours: A description of the Center operating hours and all scheduled holiday closures for each year of the anticipated five-year award period.

Please note: MBDA expects that the operating hours will follow the traditional business hours of opening on or before 9:00 a.m. and remaining open until or after 5:00 p.m. each business day. In addition, the Center hours should follow the federal work schedule regarding the dates that it will be open for business. The federal holiday schedule (i.e., those dates that the federal government is not opened) is available at: https://www.opm.gov/policy-data-oversight/snow-dismissal-procedures/federal-holidays/#url=2015 for each year of the anticipated five-year award period.

Deviations from the operating hours and business working days expected by MBDA (e.g., religious holidays) must be identified, with justification, in the application.

EXAMPLE ONLY: Staff Allocation Chart Summary – Funding Period 1

Role Status Allocation Available Hours Director Full Time 100% 2,040 Business Consultant Full Time 100% 2,040 Business Consultant Full Time 100% 2,040 Admin. Asst. Part Time 25% 510 On Call Contractor Part Time 25% 510

Total 7,140

H. Required Applicant Narrative Attachments

1) Applicant organization chart;

2) Proposed Center organization chart (include lines of reporting for the Center director to the head of the applicant organization);

3) Scanned Letter of Commitment from the proposed Center director (if applicable);

4) Center director resume and three (minimum) professional references must be provided (if proposed);

5) Resumes of other key Center staff (if applicable);

6) Position descriptions, qualification requirements, and salary ranges for all Center staff;

7) Proof of legal entity, for example, State-issued Certificate of Good Standing, copy of registered Articles of Incorporation, by-laws, IRS 501 (c)(3) tax-exempt letter, authorizing legislation, or other evidence of applicant entity legal status;

8) Scanned Letter(s) of Commitment from strategic partners and other resources listed, indicating their willingness to work with the applicant (ten maximum); and

9) Quarterly breakdown of performance goals, one chart for each year (see Appendix B:

Performance Goals by Center Location).

I. Proposed Budget and Budget Narrative All Center cost expenditures should be broken down into their individual units and discussed.

The budget narrative must match the proposed line item budget, time phased plan, and staff allocation table. Fringe benefits and other percentage item calculations should match the proposed budget line-item and narrative. Line item amounts in the detailed budget and budget narrative must match the budget numbers reflected in Standard Form (SF) 424 (one for all five years ) and 424A (one for each of the five years).

All costs included in the proposed budget must be allowable, allocable, and reasonable. Each item of cost must be accompanied by a sufficiently detailed description and cost breakdown to enable reviewers to determine if the cost is allowable, allocable, and reasonable. One word descriptions and lump sum amounts are not adequate for justifying costs. Each budget item should be broken out and described fully so that there is no ambiguity or question regarding its relevance or reasonableness to the program objectives and reasonable. The following Office of Management and Budget (OMB) Uniform Guidance will be used to determine allowable costs, and will apply to the entire amount of the Center award, including both the federal and non-federal costs. See, Uniform Guidance: Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR Pt. 200 (2015); adopted by U.S. Department of Commerce, 80 Fed. Reg. 44829 (August 27, 2015).

J. Performance-Based Budgeting MBDA will consider the extent to which the line-item budget and budget narrative relates to the work requirements and performance measures (i.e., performance-based budgeting). The budget will be compared to the Applicant Narrative to determine if the budget is realistic from a programmatic perspective and whether the proposed costs are necessary to complete the work requirements. Costs included in the budget that are determined to be unrealistic may be considered as an indication of an applicant’s lack of understanding of the requirements of the Center program and/or the methods that must be utilized to deliver services.

K. Program Income Budgeting Applicants must submit a line item budget (SF-424A) and corresponding budget narrative for each of the five (5) funding periods under the award.

The federal contribution to the budget is non-negotiable. The amount of federal funds designated for the award in the FFO (see Appendix A: Funding Availability by Center Location) must not be exceeded in the proposed budget. Costs must be proposed, on a per-event, per-person, per-item basis for all travel (e.g., airfare, per diem, ground transportation).

Each of the training events are set forth in this announcement (see Appendix F: Training Requirements and Definitions). The applicant must budget accordingly for this requirement. If a venue for an event is not stated, applicants are to assume that the event will be held in Washington, D.C. Applicants may include training costs under federal and/or non-federal cost share.

Non-federal cost share must be itemized on the SF-424A, the program line-item budget and in the budget narrative. All third-party, in-kind contributions must be supported by a scanned original and signed commitment letter from those resources. It is recommended that letters of commitment for years 1-3 be provided in the application and optional for years 4-5. Failure to provide this documentation may result in the disallowance of the amount proposed, reduction of available points or possible rejection of the application for an award.

Special Mention: The applicant must also describe how the Center director will have access to necessary funds and/or decision making for the use of funds to ensure optimization of the Business Center service delivery. Failure to address this in Budget Narrative section of the proposal will result in the applicant losing 2 points.

Program Income: As discussed in the FFO (see Section II. D- Non-Federal Cost Share Requirement), the generation of program income is mandatory for the Center program and the Center operator is required to account for all program income generated in whole or in part under the financial assistance awards. Program income is defined as gross income earned by a non-Federal entity that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance. For purposes of the MBDA Business Center program, program income specifically includes client fees, membership fees, success fees and other income generated by the center. See, 2 C.F.R. §§ 200.80 and 200.307.

For each of the five anticipated funding periods under the Center award, applicants must identify:

1) How program income will be generated by the Center;

2) The anticipated amount of program income (which must be identified as non-federal cost share in the project’s proposed budget);

3) How the program income will be used to further the Center objectives; and

4) Mandatory 33% non-federal cost share. Proposed fee structures and other methods for the Center’s generation of program income must be acceptable to MBDA and approved by the Grants Officer.

The applicant should take care in projecting the total dollar amount in fees and other program income that will be generated each performance year. The applicant must state clearly the methodology for estimating the amount of fees to be billed and to be collected.

It is also important to note that in some cases the Center operator may apply a policy for fee waivers and/or accounts not collectable. The applicant must indicate, for each of the funding periods, at what point fees are charged to its clients (e.g., upon completion of work assignment and/or successful completion of awarded transaction) and how it intends to collect and manage fees. These items should be taken into consideration and discussed in the budget narrative.

L. Funding Restrictions

1) Profits or Fees: Profits, fees or other increments above cost may not be paid on MBDA financial assistance awards and must not be included as part of the proposal.

2) Indirect Costs: Indirect cost rates will generally be set in accordance with negotiated indirect cost rate agreements which are established for all Federal assistance awards by the cognizant federal agency. The Program Officer must consult with the Grants Officer and FALD before limiting indirect costs.

Indirect costs are those costs proposed for common or joint objectives and which cannot be readily identified with a particular cost objective. Therefore, if the MBDA award is to be the sole source of support for the applicant organization, all costs are direct costs and indirect costs should not be proposed. (The term “indirect costs” has been replaced with the term “facilities and administrative costs” for educational institutions and non-profit organizations). See, 2 C.F.R. § 200.414(a).

Under the Center program, indirect costs charged to an award shall not exceed the indirect cost rate negotiated and approved by the applicant’s cognizant federal agency. In addition, in accordance with 2 C.F.R. § 200.414(f), any non-Federal entity that has never received a negotiated indirect cost rate, except for those non-Federal entities described in Paragraph D.1.b of Appendix VII to 2 C.F.R. Part 200 (specifically, a governmental department or agency that receives more than $35 million in direct Federal funding), may elect to charge a de minimis rate of 10 percent of modified total direct costs.

This limitation applies separately and collectively to each of the three anticipated funding periods under the award. Indirect costs in excess of the above limitations must not be included as part of the proposal. Indirect costs proposed under the award must be clearly identified as a separate budget line-item.

If indirect costs are included in the budget, the applicant must include a copy of its current Facilities and Administrative Cost Rate Agreement or documentation establishing that it has a pending application. If an applicant that does not have a current Facilities and Administrative Cost Rate Agreement negotiated and approved by the Department of Commerce (or by the applicable cognizant Federal agency) may propose facilities and administrative costs in its budget. However, the applicant must prepare and submit a facilities and administrative cost allocation plan and rate proposal or a negotiated indirect cost rate as required by 2 C.F.R. part 200 “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.” See, 2 C.F.R. § 200.414. The allocation plan and the rate proposal must be submitted to MBDA (or applicable cognizant Federal agency) within ninety days from the award start date. The applicant shall provide the Grants Officer with a copy of the transmittal letter.

The maximum dollar amount of allocable indirect costs for which MBDA will reimburse a recipient shall be the lesser of the: (i) line-item amount for the Federal share of facilities and administrative costs contained in the MBDA approved budget for the award, or (ii) Federal share of the total allocable facilities and administrative costs of the award based on the cost rate approved by the Department of Commerce (or applicable cognizant Federal agency), provided that the cost rate is current at the time the costs were incurred and provided that the rate is approved on or before the award end date. The applicant should include a statement in its budget narrative if the applicant does not have, or has not applied for, a Facilities and Administrative Cost Rate Agreement.

The indirect cost policies contained in 2 C.F.R. part 200 (Appendix III, “Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Educational Organizations”; Appendix IV, “Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations“; and Appendix VII, “States and Local Government and Indian Tribe Indirect Cost Proposals”) will apply to MBDA awards for its business development programs. See generally, 2 C.F.R. § 200.414 (e).

Center operators are expected to understand and adhere to regulations pertaining to use of Federal funds.

M. Bonus Points Available

1. Youth Entrepreneurship — The Agency has determined that it is important to assist in the development of the next generation of minority entrepreneurs. Applicants may receive bonus points for proposals that include concepts to support youth entrepreneurship in addition to program priorities, that:

1) Meet the need for awareness and exploration activities in entrepreneurship for minority youth;

2) Instruct minority students in entrepreneurship skills that will give them a head start in the business world and an incentive to continue their education;

3) Provide knowledge and education on the fundamentals of entrepreneurship;

4) Teach the importance of creating capital ownership and wealth within a community and help bring economic empowerment to the members of the community;

5) Begin preparing a class of future minority entrepreneurs, especially in urban and rural areas marked by underserved populations;

6) Enhance business growth, create jobs, develop community resources and stimulate national economy;

7) Show minority youth the real possibility of business ownership as a career; and

8) Provide early introduction to economics, entrepreneurship skills, and venture initiation.

This component is optional and any service(s) proposed for youth entrepreneurship are in addition to the core MBDA Business Center program. Proposed concepts cannot be used as a substitute for the defined MBDA Business Center program and service requirements.

An applicant proposing Youth Entrepreneurship development must fully describe the aspects of any concept in addition to the work requirements that the applicant will implement. Some examples have been provided (see Appendix G: Youth Entrepreneurship Concepts). Applicants are not required to utilize these examples. MBDA encourages any innovative concepts.

Proposed ideas must be fully developed and articulated along with processes and anticipated results.

2. Non-Federal Cost Share in Excess of Minimum - The Agency has determined that additional resources allocated to the Center can improve the services provided to MBEs.

Applicants may propose non-federal cost sharing in excess of the minimum amounts indicated in this FFO. An applicant will be issued additional “bonus” points to the final scoring (see Section V- D. Evaluation Criteria).

N. Standard Forms Applications must contain the following Standard Forms (SF):

1) SF-424 —…