Through the Market Development Cooperator Program (MDCP),
the International Trade Administration (ITA) aims to develop, maintain and
expand foreign markets for nonagricultural goods and services produced in the
United States.
TYPES OF ASSISTANCE:
Project Grants. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
A detailed description of the program is published each year in a notice in
the Federal Register. The most recent notice published is available at
www.export.gov/mdcp, or from the contact listed in "Information
Contacts" below. The most prominent uses and restrictions are summarized
below. (1) Applicants should propose foreign market development activities
that result in increased exports by U.S. firms; (2) the primary beneficiaries
of project activity should be small-and medium-sized enterprises; (3) no more
than $400,000 in Federal funds is available for each project; (4) the Federal
funds are to last for the life of the project, not to exceed three years; (5)
applicant match is two for one: for each Federal dollar received, applicant
must match at least one dollar with cash and another dollar with cash or
in-kind contribution; and (6) Federal funds and the first dollar of applicant
match can be used only on direct costs.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Applicants are found to be
eligible in one of three categories: (1) Nonprofit industry organizations
(includes small business development centers, World Trade Centers, and 501(c)
nonprofits such as chambers of commerce, international trade centers, port
authorities, economic development organizations, and other business interest
groups); (2) trade associations; and (3) State departments of trade and their
regional associations (includes centers for international trade and similar
entities that may fall within a university organization). The Statute
stipulates that private industry firms or groups of firms may be found
eligible in cases where no entity described above represents that industry.
However, since the program began operating in 1993, no private firm has been
able to demonstrate that an organization in one of the first three categories
did not represent its interests.
Beneficiary Eligibility: U.S. firms that sell
non-agricultural goods or services.
Credentials/Documentation: In order to determine
eligibility, applicants should consult www.export.gov/mdcp and request an
eligibility determination in writing from the MDCP Manager (see
"Information Contacts"). The written request should be accompanied
by the most current version of all the following documents that apply: (1)
Articles of incorporation; (2) charter; (3) bylaws; (4) information on types
of members and membership fees; (5) Internal Revenue Service acknowledgment of
non-profit status; (6) Annual Report; (7) Audited financial statements; and
(8) documentation of ties to State trade departments or their regional
associations.
APPLICATION AND AWARD PROCESS:
Pre-application Coordination: None. This program is
excluded from coverage under E.O. 12372.
Application Procedure: The main body of the
application should include the substance of the applicant's proposal as
identified in elements (1) through (4) below. It is limited to 50 pages.
Elements (5) through (7) below, as well as information which supplements
elements (1) through (4) should be submitted as appendices. There is no limit
to the number of pages for the appendices. The elements of the application are
summarized below. (1) Executive summary of one-page that lists application
essentials such as a summary of the proposal, name address, contact
information, ITA offices to be involved in the proposal, budget, amount of
Federal funds requested, term of project, U.S. industry(s) to be promoted, and
target markets; (2) background research on the market potential of U.S.
products to be marketed, competition, economic situation, ability/desire of
the U.S. industry to export, and the ability/desire of foreign customers to
purchase U.S. products; (3) project description including a work plan,
performance measures, a description of performance measurement recording and
reporting, and a description of how applicant plans to incorporate partnership
with ITA in its project; (4) credentials including a description of the
applicant's competence and resumes of principal players; (5) budget including
financial statements, a detailed description of the budget, the "Budget
for Project Award Period" worksheet, and the form "Budget
Information" (SF-424A); (6) other forms including SF-424, SF424B, CD-
511, and CD-346. Applicants that intend to lobby the Federal Government with
funds included in the project budget should also submit SF-LLL. All of these
forms are available at www.export.gov/mdcp; (7) other appendices.
Award Procedure: A selection panel of at least
three senior ITA officials evaluates each MDCP application based on the
following criteria: (1) Export success potential; (2) performance measurement;
(3) partnership potential with ITA and compatibility with ITA priorities; (4)
creativity and institutional capacity; and (5) budget, cash match, and
sustainability. Each application can receive up to 20 points in each of the
five categories for a total possible score of 100. Once applications are
received, applicants may not revise them. Unsuccessful applicants will be
notified in writing within 10 days after award decisions have been announced.
Since the program began in 1993, ITA has made, on average, 7 awards per year.
Deadlines: May vary from year to year. Most
recent information is posted at www.export.gov/mdcp.
Range of Approval/Disapproval Time: Approximately
90 to 180 days.
Appeals: All award decisions are final. There is
no appeal process.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Omnibus Trade and
Competitiveness Act of 1988, Public Law 100-418, Title II, Section 2303, 102
Stat. 1342, 15 U.S.C. 4723. This information on formula and matching
requirements is published in the Federal Register in an annual solicitation
for applications, available at www.export.gov/mdcp.
Length and Time Phasing of Assistance: Funds may
be expended over the period of time required to complete the scope of the
work, but not exceed three years from the date of the award. Assistance is
released according to approved marketing plans in the Market Development
Cooperator Program.
POST ASSISTANCE REQUIREMENTS:
Reports: Award recipients submit reports and
requests as set forth below. (1) Quarterly reports: (a) progress in project
activity, and (b) financial status (SF-269); (2) requests/reports as needed:
(a) Advance or reimbursement request (SF-270); and (b) cash transactions
reports (SF-272)(for recipients that receive award funds in advance).
Audits: "In accordance with the provisions
of OMB Circular No. A- 133 (Revised, June 24, 1997), recipients that are
States, Local Governments, Non-profit Organizations (to include Hospitals),
and Institutions of Higher Learning shall be subject to the audit requirements
contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507).
Records: All financial and programmatic records,
supporting documents, statistical reports, and other records of recipients or
sub recipients must be maintained in accordance with the terms of the award.
Generally, the recipient must retain records for 3 years from the date on
which the final expenditure report is submitted.
FINANCIAL INFORMATION:
Account Identification: 13-1250-0-1-376.
Obligations: (Grants) FY 01 $2,300,000; FY 02 est
$2,000,00; and FY 03 est $2,000,000.
Range and Average of Financial Assistance:
$40,000 to $400,000. Average: $298,000.
PROGRAM ACCOMPLISHMENTS:
In fiscal year 2001, ITA received 61 applications and made seven awards.
REGULATIONS, GUIDELINES, AND LITERATURE:
Applicants can link to Internet sources for each of the authorities cited
below at www.export.gov/mdcp. (1) MDCP-specific authorities and guidelines:
(a) Federal Register notice soliciting applications; (b) mock application; and
(c) application kit; (2) statutory authority: Omnibus Trade and
Competitiveness Act of 1988, Public Law 100-418, Title II, Section 2303,102
Stat. 1342, 15 U.S.C. 4723. (3) regulatory/administrative guidelines: (a)
costs will be determined in accordance with OMB Circular No. A-87 for State
and local governments, and with OMB Circular No. A- 122 for nonprofit and
for-profit organizations; (b) financial assistance management will be in
accordance with OMB Circular No. A-110 for nonprofit organizations and 15 CFR
Part 24 for State and local governments.
INFORMATION CONTACTS:
Regional or Local Office: The MDCP is managed from
the headquarters office, which should be the applicant's initial point of
contact for MDCP information. In addition, applicants are encouraged to
contact relevant ITA industry specialists in Washington, DC and their nearest
ITA Export Assistance Center. Contact information is available at
www.export.gov/mdcp.
Headquarters Office: MDCP Manager, Brad Hess,
14th Street and Constitution Avenue, NW., HCHB 3215, Washington, DC 20230.
Telephone: (202) 482-2969. FAX: (202) 482-5828. Organizational Reference: U.S.
Department of Commerce, International Trade Administration, Trade Development,
Office of Planning, Coordination and Management. Management and Planning
Division.
Web Site Address: http://www.ita.doc.gov/mdcp.
EXAMPLES OF FUNDED PROJECTS:
Examples of activities which applicants from prior years have found
appropriate are set forth below. These are provided only for illustration.
Applicants are not required to propose any of these activities (1) Foreign
trade shows; (2) foreign trade missions; (3) reverse trade missions; (4)
product demonstrations abroad; (5) export seminars; (6) technical seminars
abroad; (7) joint product promotions with foreign partners; (8) establishment
of offices abroad; (9) co-locating an office with the U.S.& Foreign
Commercial Service; (10) advice to foreign standards and testing
organizations; (11) training of foreign agents and distributors; and (12)
creating and promoting matchmaking databases. Descriptions of the 61 MDCP
award recipients' projects are available at www.export.gov/mdcp.
CRITERIA FOR SELECTING PROPOSALS:
Additional details on the selection criteria are published in the Federal
Register in an annual solicitation for applications. The most recent
solicitation is available at www.export.gov/mdcp.
