Export Promotion Market Development Cooperation
Published on AidPage by IDILOGIC
on Jun 24, 2005
Purpose of this program:
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.
Possible 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.
Who is eligible to apply...
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.
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.
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
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.
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
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.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
May vary from year to year. Most recent information is posted at www.export.gov/mdcp.
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
Approximately 90 to 180 days.
None. This program is excluded from coverage under E.O. 12372.
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
All award decisions are final. There is no appeal process.
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
U.S. firms that sell non-agricultural goods or services.
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
The funding, for fixed or known periods, of specific projects. Project grants can include fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants, evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.
How much financial aid...
Range and Average of Financial Assistance
$40,000 to $400,000. Average: $298,000.
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
(Grants) FY 03 $2,000,000; FY 04 est $2,000,000; and FY 05 est $2,000,000.
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
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 77 MDCP award recipients' projects are available at www.export.gov/mdcp.
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
ITA anticipates making new awards.
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.
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.
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.
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
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).
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
"In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 27, 2003), 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).
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
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.
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's 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 section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
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.