FEDERAL AGENCY:

INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE

AUTHORIZATION:

Omnibus Trade and Competitiveness Act of 1988, Public Law 100-418, Title II, Section 2303, 102 Stat. 1342, 15 U.S.C. 4723.

OBJECTIVES:

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:   Individual awards may not exceed $300,000.

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:  
See Regional Agency Offices. 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 export.gov/mdcp.

Headquarters Office:  
Bradlee W. Hess 14th Street & Constitution Ave., N.W., Room 20023, Washington, District of Columbia 20230 Email: brad.hess@trade.gov Phone: 2024822969 Fax: 2024824462

Web Site Address:  
http://www.export.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.