[Federal Register: February 6, 2008 (Volume 73, Number 25)]
[Notices]
[Page 6921-6929]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06fe08-23]
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DEPARTMENT OF COMMERCE
Economic Development Administration
[Docket No.: 080125088-8090-01]
Program Announcement for the Trade Adjustment Assistance for
Firms Program
AGENCY: Economic Development Administration (EDA), Department of
Commerce.
ACTION: Notice.
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SUMMARY: EDA's mission is to lead the federal economic development
agenda by promoting innovation and competitiveness, preparing American
regions for growth and success in the worldwide economy. As part of
this mission, EDA administers the Trade Adjustment Assistance for Firms
(TAAF) Program under the Trade Act of 1974, as amended, through a
national network of eleven Trade Adjustment Assistance Centers (each, a
TAAC) to provide technical assistance to firms that have lost domestic
sales and employment due to increased imports of similar or competitive
goods. This program announcement applies only to the current eleven
EDA-funded TAACs, and provides information necessary to clarify the
requirements for operating and providing technical assistance to trade-
impacted firms as a TAAC under a cooperative agreement with EDA for
fiscal years 2008-2010. This notice does not solicit new applications
for TAAC operators.
DATES: A current TAAC that wishes to apply for federal financial
assistance for the three-year project period for fiscal years 2008-2010
must submit an application to EDA at least 30 days before the
expiration date of the TAAC's 2005-2007 cooperative agreement. EDA will
amend currently active cooperative agreements as necessary to ensure
that each TAAC that wishes to apply will have at least 30 days to
complete the application requirements set out in this program
announcement. EDA's TAAF Program Officer will hold a teleconference
during the week of February 11, 2008 for all current TAACs to address
questions about this program announcement. The exact date, time,
registration requirements, and protocols for the call will be announced
to all participants in advance of the teleconference.
ADDRESSES: Applications for federal financial assistance may be
submitted in either paper format or electronic format, in accordance
with the procedures provided in this program announcement. The content
of the application is the same for both paper and electronic
submissions. EDA will not accept facsimile transmissions of
applications.
The eleven TAACs may obtain paper application packages by
contacting the designated point of contact listed below under FOR
FURTHER INFORMATION CONTACT or by downloading the required forms from
EDA's Web site at http://www.eda.gov/InvestmentsGrants/Preapp.xml.
Paper Submissions: A complete, signed original application may be
sent via postal mail, shipped overnight or hand-delivered to EDA
headquarters at the following address: William P. Kittredge, Ph.D.,
Program Officer, U.S. Department of Commerce, Economic Development
Administration, 1401 Constitution Avenue, NW., Room 7009, Washington,
DC 20230.
Electronic Submissions: A complete, electronically signed original
application may be e-mailed to taac@eda.doc.gov with the subject line
``[Insert full name of TAAC] FY 2008 application.''
FOR FURTHER INFORMATION CONTACT: For additional information or for a
paper copy of the application package, please contact William P.
Kittredge, Ph.D., Program Officer, at taac@eda.doc.gov or at 202-482-
4122.
SUPPLEMENTARY INFORMATION:
Program Information: EDA's mission is to lead the federal economic
development agenda by promoting innovation and competitiveness,
preparing American regions for growth and success in the worldwide
economy. One of EDA's economic development tools is the TAAF Program
under the Trade Act of 1974, as amended (19 U.S.C. 2341--2355, 2391)
(Trade Act). The goal of the TAAF Program is to identify firms that
have been negatively impacted by import competition and assist these
firms to become competitive in the global economy, thereby creating or
retaining domestic jobs.
Each TAAC is staffed by trade adjustment assistance professionals
that help U.S. production and manufacturing firms apply for
certification under the Trade Act. The TAAC assists the firm in
completing and submitting to EDA a
[[Page 6922]]
petition for certification of eligibility. If EDA determines that the
firm meets the eligibility criteria for technical assistance under the
Trade Act and approves the petition, the TAAC then works closely with
the certified client-firm to diagnose the firm's strengths and
weaknesses, develop an adjustment proposal (AP) to address those
strengths and weaknesses, and implement the AP. As required by the
statute, an AP must: (1) Be reasonably calculated to contribute
materially to the economic adjustment of a client-firm; (2) give
adequate consideration to the interests of the workers of the client-
firm; and (3) demonstrate that the client-firm will make all reasonable
efforts to use its own resources for economic development. The
adjustment assistance identified in the AP must consist of specialized
consulting services designed to assist the firm in becoming more
competitive in the global marketplace. For this purpose, adjustment
assistance generally consists of knowledge-based services such as
market penetration studies, customized business improvements, and
designs for new products. Adjustment assistance does not include
expenditures for capital improvements or for the purchase of business
machinery or supplies.
This program announcement is intended to provide information and
clarify the operational requirements for the current eleven EDA-funded
TAACs. The cooperative agreements associated with fiscal years 2005-
2007 for the current TAACs will expire this year and, therefore, this
program announcement sets out important elements that will be included
in each TAAC's cooperative agreement for fiscal years 2008-2010,
subject to funding availability.
A current TAAC that wishes to apply for federal financial
assistance for the three-year project period for fiscal years 2008-2010
must submit an application to EDA at least 30 days before the
expiration date of the TAAC's 2005-2007 cooperative agreement. EDA will
amend currently active cooperative agreements as necessary to ensure
that each TAAC will have at least 30 days to complete the application
requirements set out under this program announcement.
The current TAACs and the States they serve are:
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TAAC States served
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Great Lakes TAAC.......................... Indiana, Michigan, and Ohio
Mid-America TAAC.......................... Arkansas, Kansas, Missouri
Mid-Atlantic TAAC......................... Delaware, District of
Columbia, Maryland, New
Jersey, Pennsylvania,
Virginia, and West Virginia
Midwest TAAC.............................. Illinois, Iowa, Minnesota,
and Wisconsin
New England TAAC.......................... Connecticut, Maine,
Massachusetts, New
Hampshire, Rhode Island,
and Vermont
New York State TAAC....................... New York
Northwestern TAAC......................... Alaska, Idaho, Montana,
Oregon, and Washington
Rocky Mountain TAAC....................... Colorado, Nebraska, New
Mexico, North Dakota, South
Dakota, Utah, and Wyoming
Southeastern TAAC......................... Alabama, Florida, Georgia,
Kentucky, Mississippi,
North Carolina, South
Carolina, and Tennessee
Southwest TAAC............................ Louisiana, Oklahoma, and
Texas
Western TAAC.............................. California, Arizona, Nevada,
and Hawaii
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Electronic Access: The complete TAAF program announcement is
available at http://www.eda.gov.
Funding Availability: Currently, the TAAF Program is fully funded
and at capacity with eleven TAACs providing technical assistance to
trade-impacted firms throughout the nation. This program announcement
merely clarifies the operating principles and administrative and
procedural requirements applicable to the TAAF Program. Future funding
for the TAAF Program under this program announcement depends upon the
availability of funds appropriated for the Program.
Statutory Authority: The specific authority for the TAAF Program is
chapters 3 and 5 of Title II of the Trade Act, which authorizes EDA to
administer the Program through the TAACs. EDA's regulations at 13 CFR
Part 315 set forth the general and specific regulatory requirements
applicable to the TAAF Program. EDA's regulations and the Trade Act are
accessible on EDA's Internet Web site at http://www.eda.gov/InvestmentsGrants/Lawsreg.xml
.
Catalog of Federal Domestic Assistance (CFDA) Number: 11.313, Trade
Adjustment Assistance for Firms.
Eligibility: The TAAF Program currently is administered through a
national network of eleven TAACs. As set out at 13 CFR 315.4, a TAAC
may be a university affiliate, State or local government affiliate, or
nonprofit organization.
Project Period: EDA administers the TAAF Program by entering into
cooperative agreements with each TAAC for a three-year project period.
Once funded, a TAAC is not required to compete for the second and third
years of funding, providing that performance is satisfactory (as
determined by EDA). Funding beyond the initial year of the project
period also is subject to the availability of funds. Carryover funds
and program income earned in one year may be carried over and used to
carry out eligible activities in a subsequent year throughout the
three-year project period. At the conclusion of the third year of the
project period, each TAAC has 90 days to submit final vouchers for
reimbursement related to eligible activities funded prior to expiration
of the project period. The maximum amount awarded by EDA under a
cooperative agreement is for expenditures related to the TAAC's scope
of work.
Cost Sharing Requirement: EDA may fund up to 100 percent of TAAC
operations. See section 253(b)(3) of the Trade Act (19 U.S.C. 2343).
Once a firm is certified to receive assistance from a TAAC under the
TAAF Program, the client-firm must pay at least 25 percent of the cost
of preparing its AP. A client-firm that requests $30,000 or less in
total assistance to implement an approved AP must pay at least 25
percent of the cost of that assistance. A client-firm that requests
more than $30,000 in total assistance in its approved AP must pay at
least 50 percent of the cost of that assistance. General cost
limitations on APs are set out below in section VI.C. Limitations on
assistance provided through an AP specific to a particular TAAC will be
set out in the cooperative agreement between EDA and the TAAC. See 13
CFR 315.6(c)(2).
Intergovernmental Review: Applications for funding under the TAAF
Program are not subject to the State review requirements imposed by
Executive Order 12372, ``Intergovernmental Review of Federal
Programs.''
Current TAAC Evaluation: EDA generally evaluates currently funded
TAACs based on:
(1) Performance under cooperative agreements with EDA and
compliance with the terms and conditions of such cooperative
agreements;
(2) Proposed scope of work, budget and application or amended
application; and
(3) Availability of funds.
See 13 CFR 315.5(c)(1).
New TAAC Evaluation: If EDA determines that it is necessary to
select a new TAAC to provide assistance under the TAAF Program (for
example,
[[Page 6923]]
if a currently funded TAAC does not timely provide an application per
the requirements of this program announcement), EDA generally evaluates
new TAACs based on:
(1) Competence in administering business assistance programs;
(2) Background and experience of staff;
(3) Proposed scope of work, budget and application; and
(4) Availab3ility of funding.
See 13 CFR 315.5(c)(2).
Content and Form of Application Submissions
General Requirements: A complete application to provide assistance
as a TAAC for the 2008-2010 project period consists of Forms SF-424,
``Application for Federal Assistance;'' SF-424A, ``Budget Information--
Non-Construction Programs;'' SF-424B, ``Assurances--Non-Construction
Programs;'' CD-512, ``Certification Regarding Lobbying Lower Tier
Covered Transactions;'' all supporting documentation required by these
forms; a project narrative; and a detailed budget narrative. All
information submitted by a TAAC in an application for funding shall be
accurate and based on the most current data available for the TAAC's
service region.
TAACs interested in applying for continued funding are advised to
carefully read the instructions contained in this program announcement
and on the application forms. The applicant TAAC is solely responsible
for ensuring that applications are complete and timely received by EDA.
Applications may be submitted either in paper format or electronically.
EDA will evaluate applications consistent with the application
review information set forth in this program announcement. A completed
application must contain all the items listed in the ``Checklist of
Application Materials'' set out below.
Checklist of Application Materials
Project Narrative
Cover Page
Section 1. Organizational History and Capability
Section 2. Service Region, Needs of Service Region, and Target
Audience
Section 3. Scope of Work and Anticipated Impacts and Benefits
Budget and Budget Narrative
Budget Narrative (for each year of the award period)
Staffing Plan
Resumes of Key Project Staff
Standard Forms (SF) and Department of Commerce (CD Forms)
Form SF-424, Application for Federal Assistance (The list of
certifications and assurances referenced in Item 21 of Form SF-424 is
contained in Form SF-424B.)
Form SF-424A, Budget--Non-Construction Programs (for each year of
the project period)
Form SF-424B, Assurances--Non-Construction Programs
Form SF-LLL, Disclosure of Lobbying Activities (if applicable)
(Form SF-LLL can be accessed at EDA's Internet Web site at http://www.eda.gov
and at http://www.whitehouse.gov/omb/grants/grants_forms.html.)
Form CD-511, Certification Regarding Lobbying (Form CD-511 can be
accessed at the Department of Commerce's Forms Management Internet Web
site at http://ocio.os.doc.gov/ITPolicyandPrograms/Electronic_Forms/index.htm.
)
Project Narrative. The Project Narrative must provide both an
overall three-year operational plan and scope of work for the entire
fiscal years 2008 through 2010 project period, and a detailed
operational plan and scope of work for the initial year of the project
period. For each subsequent year of the project period, each TAAC will
execute an amendment to the cooperative agreement and submit an updated
Project Narrative that reflects changes to and trends within the TAAC's
service region. The Project Narrative must provide for a three-year
scope of work and a timeline for project implementation during the
three-year project period. The Project Narrative must include the
following items, which should be presented to EDA in the following
format:
Cover Page
Section 1. Organizational History and Capability
a. Overview. Briefly state the purpose of the submission and the
TAAC's federal funding request and proposed matching funds, if
applicable.
b. Organization and Staffing. Submit a staffing plan listing all
positions that will be charged to the federal and non-federal (if
applicable) portion of the budget for each project year. The staffing
plan must include position titles, maximum annual salaries, and the
total amount of annual salaries that will be charged to the TAAF
Program. The total amount of annual salaries that will be charged to
the Program must be consistent with the amount reflected on the
``Personnel'' budget line-item (found in ``Section B--Budget
Categories'' of Form SF-424A) for each project year. In addition,
identify each TAAC employee, describe their specific role with
reference to TAAC operations, and provide a brief overview of each
employee's most pertinent experience. In addition, the resume,
curriculum vitae, or other statement of qualifications for each
employee must be included as an attachment. If the TAAC plans to hire
employees during the project period, provide a staffing plan for
filling any vacancies or new positions.
c. History and Accomplishments. Provide a narrative overview of the
history of the TAAC and the TAAC's accomplishments in providing
assistance to import-impacted firms under past cooperative agreements
with EDA. Discuss the TAAC's capacity and experience in providing
assistance under the TAAF Program.
d. Organizational Form or Affiliated or Sponsoring Institution, if
applicable. Detail the organizational context in which the TAAC will
provide technical assistance under the TAAF Program. If the TAAC is
affiliated with another entity, such as a university or a nonprofit,
include the TAAC's placement within the organizational structure of
that entity and explain how this affiliation may impact the cooperative
agreement with EDA and the provision of assistance to import-impacted
firms.
Section 2. Service Region, Needs of Service Region, and Target Audience
a. Definition of Service Region. Define the TAAC's geographic
service region.
b. Existing Conditions within Service Region. Detail the economic
development needs, issues, and opportunities of the TAAC's service
region, focusing on import-impacted industries and firms.
c. Target Firms and Industries. Identify target import-impacted
firms and industries within the TAAC's geographic service region.
d. Presentation. Maps and other graphic representations that
accurately portray the current condition of the TAAC's service region
are welcome and encouraged.
e. Accuracy and Timeliness of Information. All information
presented in the application must be pertinent, accurate and current.
This section in particular must contain accurate data and estimates
provided by the Bureau of Economic Analysis, the U.S. Census Bureau, or
other similar governmental agency that compiles socioeconomic data that
is current as of the date of the application. Additional pertinent,
accurate and current data, information, analyses and estimates from
reputable
[[Page 6924]]
non-governmental sources may also be provided, but such data cannot
serve as a substitute for governmental data. Since the goal of the TAAF
Program is to address the existing conditions of import-impacted firms,
the use of outdated data is not acceptable and will be considered
nonresponsive. If an application contains out-of-date data, EDA may
reject the application and choose to re-solicit applications on a
competitive basis.
Section 3. TAAC Business Plan and Anticipated Impacts and Benefits
Outline the scope of work to be undertaken by the TAAC during the
three-year project period. This section must be organized into the
following five elements: (i) TAAC program management; (ii) TAAC
business plan; (iii) timeline and benchmarks for program
implementation; (iv) TAAC outreach strategy; and (v) plan to coordinate
with Trade Adjustment Assistance Programs operated by the Department of
Labor (DOL) to provide the most value to firms and maximize the benefit
of each federal dollar. Pertinent details on the above-listed elements
of the TAAC's scope of work are set out below.
a. TAAC Program Management. Provide a plan for the TAAC's overall
fiscal and TAAF Program management to ensure the TAAC's accountability
for federal funds. In general, TAACs use federal funds to enter into
contracts to meet the needs of client-firms. Therefore, this plan must
include the TAAC's procurement code of conduct and procedures.
Recipients of federal assistance that are institutions of higher
education, hospitals, and other nonprofit and commercial organizations
must have:
(i) Written standards of conduct governing the performance of its
employees engaged in the award and administration of contracts; and
(ii) Written procurement procedures. See 15 CFR 14.42 and 14.44 for
more information on these requirements.
b. TAAC Business Plan. Describe how the TAAC plans to provide
assistance to import-impacted firms and how the TAAC plans to partner
or coordinate with other organizations to provide effective assistance
and leverage federal dollars.
c. Timeline and Benchmarks for Program Implementation. Provide a
three-year timeline for Program implementation, which includes
significant milestones and accomplishments. The TAAC also must submit a
timeline for the initial year of the project period detailing over the
course of that year the activity, timeline, and benchmarks for the
implementation of the TAAF Program. This initial year timeline must
include the current status of any pending certifications, APs, or other
client-firm assistance; the projected number of firms that the TAAC
will contact; the projected number of petitions for certification that
the TAAC will submit for EDA approval; the projected number of APs that
will be submitted for EDA's approval; the projected number of projects
that will be proposed in APs; and the number of projects that the TAAC
anticipates client-firms will complete. These projections should be
based on the TAAC's analysis of need in its geographic service region
and its experience operating the TAAF Program.
d. TAAC Outreach Strategy. Detail how the TAAC will provide
information about assistance services in the TAAC's geographic service
region. Examples of TAAC information and literature provided to
potential client-firms and other outreach strategies are welcome and
encouraged.
e. Plan for Coordination with DOL. Detail how the TAAC will
coordinate with Trade Adjustment Assistance Programs operated by DOL
under the Trade Act to provide comprehensive assistance to import-
impacted firms and employees, avoid duplicative effort, and maximize
federal dollars.
Budget and Budget Narrative. Applicants must submit a separate
budget on Form SF-424A and a budget narrative for each year of the
three-year project period. The budget must include columns reflecting
the federal, non-federal cash, non-federal in-kind (if applicable) and
total amounts allocated to each budget line-item for each project year.
Applicants should use the budget categories identified in ``Section B--
Budget Categories'' of Form SF-424A, with sub-categories and
explanations as necessary. The allowability of costs incurred depends
upon the classification of the TAAC and is determined in accordance
with the requirements set out in 2 CFR Part 220, ``Cost Principles for
Educational Institutions (OMB Circular A-21);'' 2 CFR Part 225, ``Cost
Principles for State, Local, and Indian Tribal Governments (OMB
Circular A-87);'' or 2 CFR Part 230, ``Cost Principles for Non-Profit
Organizations (OMB Circular A-122),'' as applicable. Generally,
allowable costs include salaries, supplies, and other expenses that are
reasonable and necessary for successful completion of the scope of
work.
1. Budget Narrative. The budget for each year must include a brief
narrative describing each budget line-item. For budget planning
purposes, applicant TAACs should assume flat funding for the three-year
project period.
2. Facilities and Administrative Costs. If indirect or facilities
and administrative costs (replacing the term ``indirect costs'' for
institutions of higher education) are included in the budget, the
applicant must include a copy of its current Indirect or Facilities and
Administrative Cost Rate Agreement or documentation applying for an
Indirect or Facilities and Administrative Cost Rate Agreement.
Applicants that do not have a current Indirect or Facilities and
Administrative Cost Rate Agreement negotiated and approved by the
Department of Commerce (or by the applicable cognizant federal agency)
may propose indirect or facilities and administrative costs in their
budget. However, any TAAC without a currently approved Indirect or
Facilities and Administrative Cost Rate Agreement must prepare and
submit an indirect or facilities and administrative cost allocation
plan and rate proposal as required by 2 CFR Part 220 (OMB Circular A-
21), 2 CFR Part 225 (OMB Circular A-87), or 2 CFR Part 230 (OMB
Circular A-122), as applicable. The allocation plan and the rate
proposal must be submitted to the Department of Commerce's Office of
Acquisition Management (or applicable cognizant federal agency) within
90 days from the award start date.
The maximum dollar amount of allocable indirect or facilities and
administrative costs for which EDA will reimburse a recipient shall be
the lesser of the:
(i) Line-item amount for the federal share of indirect or
facilities and administrative costs contained in the EDA-approved
budget for the award; or
(ii) federal share of the total allocable indirect or 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. See Paragraph 5 (Indirect Costs) of the Department of
Commerce Pre-Award Notification Requirements for Grants and Cooperative
Agreements (69 FR 78389).
The TAAC should include a statement in the budget narrative
indicating whether it does not have, or has not applied for, an
Indirect or Facilities and Administrative Cost Rate Agreement.
3. Program Income. If the operation of the TAAC is expected to
generate ``program income'' (as defined in 15 CFR 14.24 or 24.25, as
applicable), such
[[Page 6925]]
amounts must be accounted for in the project budget and must be added
to those budget line-items pertaining to direct Program delivery.
Program Requirements for TAACs
The TAACs are advised to carefully read the following paragraphs
that detail programmatic and administrative requirements to be included
in each TAAC's fiscal years 2008-2010 cooperative agreement with EDA.
Some of the requirements set out below are currently required of TAACs
and some are new requirements.
Petitions for Certification of Eligibility.
1. Petition for Certification Template. Petitions for certification
of eligibility must be made by completing and submitting Form ED-840P,
which will be provided to TAACs as a portable document format (PDF)
document. The TAAF Program Worksheet also is attached as Exhibit C to
this program announcement. EDA strongly encourages TAACs to complete
and submit the TAAF Program Worksheet along with each petition for
certification. The worksheet is formatted as a fillable PDF document,
and will help EDA expedite the TAAC's petitions.
2. Submission of Petitions. All TAAF Program documentation and
submissions must be made electronically. Petitions for certification
must be submitted to EDA's TAAF mailbox at taac@eda.doc.gov in PDF
format. Each petition shall include all information needed for EDA to
assess the petition. Each PDF document included in a petition must use
a descriptive file name that includes both the name of the TAAC and the
name of the petitioning firm.
3. Employment Data. Each TAAC shall require any firm applying for
certification to retrieve and submit the most currently available
documentation of the firm's required quarterly employee contribution to
social security and Medicare under the Federal Insurance Contributions
Act (FICA) or the Self-Employment Contributions Act so that the TAAC
and EDA can confirm the firm's level of employment. This documentation
must be scanned or saved electronically and included in each firm's
petition for certification.
4. Customer Interviews. To help evaluate whether a firm has been
trade-impacted, the firm must provide a list of four important current
or recent customers. Each TAAC must interview at least two of these
customers to determine if and why each customer has decreased purchases
from the firm. A synopsis of each customer interview conducted in the
course of a firm petition, whether or not the customer has adjusted its
purchasing patterns because of import competition, must be included in
the petition. The synopsis shall include all information necessary for
EDA to make the statutory findings that imports contributed importantly
to the decline in employment and sales or production (e.g., what
factors affected the amount of purchases the customer made from the
firm, whether the customer is purchasing imported products in lieu of
the firms products, and the length of time the customer has been
purchasing imported products).
5. The TAAC Director's Certification of Customer Interviews. Each
TAAC Director is responsible for ensuring that the representations made
in a certification petition are complete and accurate to the best
knowledge of the TAAC and must certify to that effect. Failure to
exercise due diligence to ensure that a firm's representations are
accurate constitutes a material breach of the TAAC's cooperative
agreement with EDA. EDA will issue a deficiency memorandum to a TAAC
each time the TAAC submits a certification with inaccurate or
inadequate information. See the paragraph below for more information on
EDA's consideration of deficiency memoranda.
Adjustment Proposals: The AP is the tool through which a client-
firm should begin to reestablish competitive advantage. Each AP is to
be developed by the TAAC in consultation with and submitted on behalf
of a client-firm. Each AP shall contain sufficient information and
detail to allow EDA to make the determination that the AP:
(i) Is reasonably calculated to contribute materially to the
economic adjustment of the client-firm (i.e., that such proposal will
constructively assist the firm to establish a competitive position in
the same or a different industry);
(ii) Gives adequate consideration to the interests of a sufficient
number of separated workers of the client-firm; and
(iii) Demonstrates that the client-firm will make all reasonable
effort to use its own resources for its recovery. See 13 CFR 315.16.
1. AP Template. The AP template and accompanying instructions are
included in this program announcement as Exhibit D. While each AP must
be tailored to the specific needs of the client-firm, the template will
provide a standard format to help TAACs and contractors produce APs
that effectively assist firms and meet EDA requirements. EDA strongly
encourages TAACs and contractors to use the AP template in providing
assistance to firms. The template is formatted as a fillable PDF
document and it will assist EDA Program staff to expeditiously review
APs.
2. Submission of APs. All APs must be submitted electronically to
EDA as a single PDF document at taac@eda.doc.gov. The PDF document must
include all information needed for EDA to evaluate the AP.
3. Assistance Cost Limits. As noted above under ``Cost Sharing
Requirement,'' a client-firm must pay at least 25 percent of the cost
of the preparation of its AP. A client-firm that requests $30,000 or
less in total assistance to implement an approved AP must pay at least
25 percent of the cost of that assistance. A client-firm that requests
more than $30,000 in total assistance in its approved AP must pay at
least 50 percent of the cost of that assistance. The total amount of
assistance provided to a client-firm in an AP is generally limited to
$150,000 ($75,000 EDA funds and $75,000 client-firm funds). Assistance
that exceeds this limit may be provided only with EDA's prior written
approval. Limitations specific to a particular TAAC will be set out in
the cooperative agreement between EDA and the TAAC. Also, the
procurement agreement among the TAAC, the client-firm, and the
contractor providing assistance should describe clearly applicable cost
limitations. See 13 CFR 315.6(c)(2).
4. Procurement of Assistance under APs. Each TAAC must have written
procurement procedures. These procedures must require, in part, that
solicitations for services, including services to create or implement
an AP, must include:
a. A clear and accurate description of the technical requirements
for the material, product, or service to be procured. In competitive
procurements, such a description shall not contain features which
unduly restrict competition;
b. Requirements that the bidder/offeror must fulfill and all other
factors to be used in evaluating bids or proposals;
c. A description, whenever practicable, of technical requirements
in terms of functions to be performed or performance required,
including the range of acceptable characteristics or minimum acceptable
standards;
d. The specific features of ``brand name or equal'' descriptions
that bidders are required to meet when such items are included in the
solicitation;
e. The acceptance, to the extent practicable and economically
feasible, of products and services dimensioned in the metric system of
measurement; and
[[Page 6926]]
f. Preference, to the extent practicable and economically feasible,
for products and services that conserve natural resources and protect
the environment and are energy efficient.
5. Sole-Sourcing of AP Projects. As required by federal acquisition
regulations, a TAAC shall select contractors providing services under
an AP via an open bid process that the TAAC ensures is free from
conflicts of interest.
Each TAAC shall maintain a list of each contractor that produces,
consults, provides services under, receives federal funds through, or
is any way involved in the creation or implementation of an AP for a
client-firm. The TAAC shall provide EDA with this list on request. The
identity of each contractor that produces, consults on, provides
services under, receives federal funds through, or is in any way
involved in the creation or implementation of an AP must be disclosed
and easily identifiable on the document. As noted above, all APs must
be submitted to EDA electronically. Identification of consulting firms
shall include Employer Identification Numbers (EINs) and Data Universal
Number System (DUNS) numbers.
If the procurement of services to create or implement an AP exceeds
$100,000 (the current simplified acquisition threshold), the TAAC
shall, on request, make available for EDA pre-award review and
procurement documents, such as the requests for proposals or
invitations for bids and independent cost estimates. EDA may ask the
TAAC to make available information about its procurement practices if
the procurement was awarded without competition or if only one bid or
offer was received in response to a solicitation or if a proposed
contract modification changed the scope of a contract or increased the
contract amount by more than $100,000. See 15 CFR 14.40-14.48 or 24.36,
as applicable, for more information on these requirements.
6. Implementation of and Changes to APs. APs should be designed to
address a client-firm's current conditions so that the firm can better
compete in the future. To ensure that approved APs are effective tools
for economic recovery, the firm should begin implementing the AP
expeditiously, generally within six months of EDA's approval, subject
to the availability of funds. Each TAAC is responsible for facilitating
its client-firms' implementation of their APs and providing as much
assistance as possible. If active steps towards implementing an
approved AP, as determined by EDA, are not taken within six months of
EDA's approval, the TAAC must provide an explanation of the delay to
EDA. Each TAAC must monitor client-firms' implementation of APs and
provide updates on implementation in the TAAC's regular report to EDA.
However, in accordance with Department of Commerce regulations, TAACs
may not charge a fee for such monitoring. See the paragraph below on
the prohibition on charging a monitoring fee. The following are details
on allowable adjustments to APs:
a. Amended APs. If a certified firm does not satisfactorily
demonstrate progress toward implementing its approved AP within six
months of approval, EDA will assume the projects contained in the
approved AP are no longer current and it will be the firm's fiscal
responsibility to either amend the AP by updating it, or to demonstrate
to EDA that the projects in the AP continue to meet the firm's current
needs and will meet the AP criteria as set out at 13 CFR 315.16(c); and
b. Revised APs. If EDA approves an AP for a certified firm that has
a total cost that is less than the maximum amount of assistance set out
in the cooperative agreement between EDA and the TAAC, and the firm
successfully implements or demonstrates progress towards implementing
its AP, the TAAC, with EDA's prior written approval, may revise it by
adding projects to the AP up to the maximum amount of assistance as set
out in the cooperative agreement between EDA and the TAAC.
7. Prohibition on Monitoring Fees Charged by a TAAC. TAACs
frequently subcontract with third parties to provide services under
APs. Department of Commerce award recipients are responsible for
monitoring subcontractor performance. See 15 CFR 14.51 or 24.40, as
applicable. A TAAC may not assess a fee under the award or otherwise
attempt to generate program income via any other charge or fee for
monitoring contractor performance. In addition, a TAAC may not assess
either client-firms or EDA a fee for monitoring client-firm progress in
implementing an AP. See 15 CFR 14.51 or 24.40, as applicable, and 13
CFR 315.6(c)(2), which sets out matching share requirements to be paid
by client-firms for the preparation of APs. Except as provided in
paragraph 3 of this section (``Assistance Cost Limits'') above, TAACs
may not assess fees in connection with the program.
8. Firms' Responsibility to Implement APs. Certified firms have
five years from the date of EDA's approval of an AP to complete work on
that AP. Generally, EDA will not consider requests to implement an AP
beyond five years from the date of EDA's approval of the AP. Any
request for an extension beyond five years must demonstrate an
exceptional need and justifiable extenuating circumstances for the
delay.
Program Performance Assessment: EDA will assess program performance
to ensure that the TAAF Program accomplishes its purposes and that
federal funds are put to their most productive use. EDA will evaluate
each TAAC using the following criteria to help determine the funding
level for the TAAC's funding periods within a project period.
1. Quality of TAAC Submissions. TAAC Directors are responsible for
the quality of submissions to EDA. All submissions should be timely,
proof-read, complete, and accurate, and should not cause EDA to
undertake additional background work to assess the quality and validity
of the information submitted.
2. Deficiency Citations. EDA will issue a deficiency memorandum
whenever it determines that a petition, AP, or other TAAC submission is
not timely, proof-read, complete, accurate, or otherwise causes EDA to
undertake additional background work to assess the quality and validity
of the information submitted. The number and substance of deficiency
memoranda issued to a TAAC during each year of the TAAC's project
period will be considered when EDA assesses the TAAC's performance and
will have an impact upon TAAC funding for subsequent project periods.
If repeated or major deficiencies are identified through EDA's
assessment of the quality of the TAAC's submissions, EDA will take
steps to protect the federal interest under the award, including
suspension and termination.
3. Services to Client-Firms. EDA must ensure that funds
appropriated to assist trade-impacted firms are put to their highest
and best use. To that end, EDA will examine the percentage of the total
amount awarded to each TAAC that is delivered to firms as client
services. EDA will notify each TAAC of the target percentage.
Percentages higher than the target indicate that the TAAC should re-
evaluate its expenditure of award funds.
4. Collaboration. EDA will examine evidence of the TAAC's
collaboration with DOL Trade Adjustment Assistance Programs to ensure
that both EDA and DOL funds are leveraged to the maximum extent
possible.
5. Firm Survey. Following the completion and delivery of an AP to a
client-firm and the implementation of each project or service proposed
in an approved AP, the TAAC will provide the firm with a survey to help
assess the
[[Page 6927]]
effectiveness of and the firm's satisfaction with the assistance
provided. EDA will provide this survey to the TAACs, and will review
service delivery periodically based in part on this survey.
Financial Management
1. TAAC Budget. The budget is the financial expression of the
TAAC's planned program execution. The TAAC's budget is submitted on the
Form SF-424A, ``Budget Information--Non-Construction Programs,'' both
for an original award (i.e., a three-year project period) and for each
amendment to the original award.
2. Changes to the TAAC Budget. A TAAC shall not transfer funds
across direct cost categories if the federal share of the project
exceeds $100,000 and the cumulative amount of such transfers exceeds
10% of the total federal and non-federal amount of the award. In
addition, a TAAC must receive EDA's written approval if the transfer
implicates a change in project scope or objective or if the transfer is
of amounts budgeted for indirect costs to absorb increases in direct
costs, or vice versa. See 15 CFR 14.25 or 24.30, as applicable.
3. Payment. A TAAC may request an advance or reimbursement of award
funds from EDA to cover costs incurred in providing assistance to
client-firms and to pay for reasonable and necessary TAAC
administrative expenses. Department of Commerce regulations authorize
EDA to advance funds to a TAAC as long as the TAAC maintains:
a. Written procedures that minimize the time elapsing between the
transfer of funds to and the disbursement by the TAAC; and
b. Financial management systems that meet the standards for fund
control and accountability set out at 15 CFR 14.21.
Advances are limited to the minimum amounts needed for project
costs and must be timed in accordance with the actual, immediate cash
requirements of the TAAC in carrying out project needs. The timing and
amount of advances shall be as close as is administratively feasible to
the actual disbursement by the TAAC for direct project costs and the
proportionate share of allowable indirect costs.
The TAAC must submit each request for award funds to EDA using Form
SF-270, ``Request for Advance or Reimbursement,'' in accordance with
these requirements. Each request shall be sufficient to meet the TAAC's
reasonably anticipated needs for the upcoming 30 days or to cover the
TAAC's expenditures for the most recently past 30 days, if the TAAC
receives a reimbursement of award funds. If the TAAC does not meet the
Department of Commerce's requirements for advance payment of award
funds, EDA may decide to make payments solely through reimbursement.
See 15 CFR 14.22 or 24.21, as applicable.
4. Supporting Documentation for Requests for Advances or
Reimbursements. Pursuant to EDA's duty of responsible stewardship over
federal funds, if EDA has reasonable concerns regarding a TAAC's
submitted Form SF-270, EDA may request the TAAC to submit an expense
report with supporting documentation that fully explains the TAAC's
request for an advance or reimbursement. The report shall be in the
same format as the budget submitted as the TAAC's controlling budget,
and shall show the original budget, the budget for the upcoming 30 days
for which the advance is requested, and expenses incurred year to date.
EDA is in the process of developing an expense report template to
provide to each TAAC.
5. Financial Reporting. Each TAAC shall submit Form SF-269,
``Financial Status Report,'' to EDA quarterly to report the status of
unreimbursed obligations. This report will provide information on the
amount of allowable project expenses that have been incurred, but not
claimed for reimbursement by the recipient.
When EDA advances funds to a TAAC, the TAAC also must submit Form
SF-272, ``Report of Federal Cash Transactions,'' to EDA quarterly to
monitor advances to a disbursement by the TAAC. EDA may require the
TAAC to forecast federal funds requirements in the ``Remarks'' section
of the report. When practical and deemed necessary, EDA also may
require the TAAC to report on advances received in excess of three days
and provide short narrative explanations on actions taken by the TAAC
to reduce excess balances in the ``Remarks'' section of the SF-272.
The first submission of Forms SF-269 and SF-272, if applicable,
shall be as of March 30 of each year and shall be submitted to EDA no
later than April 30 of each year; the second report shall be as of June
30 of each year and shall be submitted to EDA not later than July 30 of
each year; the third report shall be of September 30 and shall be
submitted to EDA not later than October 30 of each year; and the fourth
report shall be of December 30 of each year and shall be submitted to
EDA no later than January 30 of the following year. EDA may require
TAACs that receive advances totaling $1 million or more per year to
submit Form SF-272 on a monthly basis. See 15 CFR 14.52 or 24.41, as
applicable.
6. End-of-Year Submission of Budget. Within 90 days of the end of
the TAAC's annual funding period under its award, the TAAC shall submit
an analysis of the TAAC's prior year budget as planned versus
implemented that clearly identifies, justifies, and explains any
differences between planned costs and actual costs, any transfers among
cost categories, and any other changes that took place during the year.
7. Audit Requirements. Organization-wide or program-specific audits
shall be performed in accordance with the Single Audit Act Amendments
of 1996, as implemented by OMB Circular A-133, ``Audits of States,
Local Governments, and Non-Profit Organizations,'' and the related
``Compliance Supplement.'' TAACs typically expend federal awards of
$500,000 or more in a fiscal year and thus are required to have an
audit conducted for that year in accordance with the requirements
contained in OMB Circular A-133. Each TAAC associated with a university
is responsible for instructing the auditor to address the operations
and controls of the sponsored programs or similar university office.
Audit findings shall specifically address the operations and controls
of the sponsored programs or similar office of the university.
A copy of the audit must be submitted to the Bureau of the Census
at the following address: Federal Audit Clearinghouse, 1201 E. 10th
Street, Jeffersonville, IN 47132. In addition, each TAAC must submit
the TAAC's currently valid audit required under OMB Circular A-133 to
EDA headquarters within 30 days of completion of the audit. The address
for OMB Circular A-133 audit submissions is: Department of Commerce,
Economic Development Administration, William P. Kittredge, Ph.D., 1401
Constitution Avenue, NW., Room 7009, Washington, DC 20230.
TAAC Administrative Requirements: Each TAAC will maximize
coordination with the other TAACs and relevant organizations to avoid
duplication of services offered by other organizations. Additionally,
TAACs shall adhere to the minimum administrative guidelines detailed
below. In reviewing performance, EDA will evaluate the TAACs on their
adherence to these guidelines as well as their performance in assisting
firms, since TAAC administration is key to effective firm assistance.
The Director of each TAAC is expected to ensure compliance with these
guidelines.
[[Page 6928]]
1. TAAC Operation and Management. TAACs provide assistance to a
wide range of production and manufacturing firms experiencing
difficulty in adjusting to the global marketplace. These firms provide
jobs and capital that are vital to State, local, and national economic
well-being. Therefore, each TAAC is expected to be managed
professionally and to be capable of responding flexibly to client-
firms.
a. Forty-Hour Customary Workweek. For each week of the calendar
year, each TAAC shall be open to the public during workdays and hours
customary to each TAAC's geographic service region, for not less than a
40-hour, Monday through Friday workweek. Each TAAC Director shall work
a 40-hour workweek during the business hours customary to each TAAC's
geographic service region. If TAAC workload demands additional hours or
a firm requires additional assistance, the TAAC shall include
flexibility in its budget to remain open for the period needed to
resolve the workload or firm issues.
b. Consistent Contact with EDA. During each TAAC's customary
business hours, EDA must have a direct line contact phone number and e-
mail address for each TAAC Director. If the TAAC Director is on
official travel status that is being charged to the award, TAAC staff
shall be able to provide EDA with contact information for the Director,
including the name of the hotel at which the Director is staying and a
telephone number at which the Director can be reached.
c. TAAC Facilities and Resources. TAAC facilities and resources
shall not be used for any activities inconsistent with the terms and
conditions of the award to the TAAC. TAAC offices, addresses, and
telephone numbers are not to be listed in any manner that would cause a
reasonable person to misconstrue the TAAC office as a residence or
other place of business. TAAC employees are prohibited from using the
TAAC address for any purpose other than those described in the
cooperative agreement and award scope of work. EDA will be the sole
interpreter of those provisions.
d. TAAC Staff Training. Each TAAC Director is responsible for
training TAAC staff to deliver services to client-firms. When the TAAC
Director is absent for any reason, there shall be a TAAC staff member
responsible for maintaining consistent TAAC operations in the
Director's absence.
e. TAAC Boards and Other Management or Governing Body. The TAAC
Director is responsible for ensuring that each member of the TAAC's
Board of Directors (or other management or governing body) is aware of
EDA's conflicts of interest rules and that actual or apparent conflicts
of interest are avoided. If a conflict is discovered, the TAAC Director
is responsible for promptly resolving the matter through
disqualification, divestiture, waiver or other appropriate measures.
See 13 CFR 300.3 (for the definition of ``Interested Party'') and
302.17.
2. Travel. A TAAC's travel costs are allowable only to the extent
that they are necessary as determined by EDA and otherwise allowable
under relevant Office of Management and Budget (OMB) cost principles. A
TAAC must provide receipts and documentation of travel-related expenses
and any airfare costs must not exceed the customary standard commercial
airfare (coach or equivalent). If EDA determines that a TAAC is in
persistent noncompliance with the applicable cost principles that
govern travel costs, EDA reserves the right to use the reimbursement
method to cover all travel costs incurred by the TAAC or to take such
other action as EDA deems appropriate.
TAAF Program Promotion: Promoting the TAAF Program helps ensure
that a wide variety of trade-impacted firms receive assistance.
Therefore, the TAAF Program's status as a federally funded program and
EDA as the funding agency must be prominently featured on all public
information, including press releases, Web sites, program brochures,
and reports released by the TAAC, including APs.
No Obligation for Future Funding: As provided in the Department of
Commerce Standard Terms and Conditions for Financial Assistance Awards
(May 2007), if an applicant is awarded funding, neither the Department
of Commerce nor EDA is under any obligation to provide any additional
future funding in connection with that award or to make any future
award(s). Amendment or renewal of an award to increase funding or to
extend the period of performance is at the sole discretion of the
Department of Commerce and of EDA.
Past Performance and Non-Compliance with Award Provisions:
Unsatisfactory performance under prior federal awards, such as audit
reports with findings of reportable conditions and material weaknesses,
may result in an application or a funding period extension not being
considered.
Failure to comply with any or all of the provisions of an award may
have a negative impact on future funding by the Department of Commerce
(or any of its operating units) and may be considered grounds for any
combination or all of the following actions: temporarily withholding
payments pending correction of the deficiency; disallowance of all or
part of the cost of the activity or action not in compliance; wholly or
partially suspending or terminating the current award; withholding
further awards; changing the method of payment from advance to
reimbursement only; or the imposition of other special award conditions
unique to the circumstances at hand. See 15 CFR 14.14 and 14.62 or
24.12 and 24.43, as applicable.
Program Teleconferences: EDA headquarters will hold a
teleconference to provide general program information and information
regarding this program announcement during the week of February 11,
2008. The exact date, time, registration information, and protocols for
the teleconference will be provided to participants in advance of the
call.
Classification
Paperwork Reduction Act: This document contains collection-of-
information requirements subject to the Paperwork Reduction Act (PRA).
The use of Standard Forms (SF) SF-424, SF-424A, SF-424B, and SF-LLL,
and ED-900A has been approved by OMB under the respective OMB Control
Numbers 0348-0043, 0348-0044, 0348-0040, 0348-0046, and 0610-0094.
Notwithstanding any other provision of law, no person is required to
respond to, nor shall any person be subject to a penalty for failure to
comply with, a collection of information subject to the requirements of
the PRA unless that collection of information displays a currently
valid OMB Control Number.
The Department of Commerce Pre-Award Notification Requirements for
Grants and Cooperative Agreements: The administrative and national
policy requirements for all Department of Commerce awards, contained in
the Department of Commerce Pre-Award Notification Requirements for
Grants and Cooperative Agreements (69 FR 78389), are applicable to this
program announcement.
Executive Order 12866: This notice has been determined to be not
significant for purposes of Executive Order 12866.
Executive Order 13132 (Federalism): It has been determined that
this notice does not contain policies with Federalism implications as
that term is defined in Executive Order 13132.
Administrative Procedure Act/Regulatory Flexibility Act: Prior
notice and an opportunity for public comments are not required by the
Administrative Procedure Act or any other law for rules
[[Page 6929]]
concerning grants, benefits, and contracts (5 U.S.C. 553(a)(2)).
Because notice and opportunity for comment are not required pursuant to
5 U.S.C. 553 or any other law, the analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are inapplicable.
Therefore, a regulatory flexibility analysis has not been prepared.
Dated: January 30, 2008.
Benjamin Erulkar,
Deputy Assistant Secretary of Commerce for Economic Development.
[FR Doc. E8-2133 Filed 2-5-08; 8:45 am]
BILLING CODE 3510-24-P