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MDCP: Frequently Asked Questions

1. Can we get a copy of an application submitted in a prior year by another applicant? Applications usually contain information which is proprietary or sensitive. Our policy is not to send copies of applications out to those who request them. However, one recent MDCP award winner graciously agreed to redact sensitive information from its application so we could share it with others. You can find it on our application preparation page. We also havea mock application that you are welcome to review. 
2. What forms should we start working on? It is probably not best to start with the forms. First, make sure that you have a viable project idea by contacting Brad Hess . Once you get started on writing up your project, you can turn your attention to the forms. Think of your application as "a business plan with OMB forms attached."  
 
3. Where do we get the forms? They are all available in pdf or spreadsheet format at our website: trade.gov/mdcp.
Click on "Application Kit" and scroll to the end for links to downloadable and printable blank forms.  
4. What should we do to get started on our application?

First, contact the Brad Hess to find out if you have a viable project idea. Send inquiries to Brad.Hess@mail.doc.gov. Second, contact other International Trade Administration ITA) officials to find out how ITA can best work with you as design your project. Third, find the industry specialist from ITA's Manufacturing and Services (MAS) program area. Fourth, contact your local U.S. Export Assistance Center (USEAC). ITA maintains over 100 USEACs across the country. The USEACs constitute the domestic presence of ITA's U.S. and Foreign Commercial Service (US&FCS). There's a chance you'll need to involve someone from ITA's Market Access & Compliance (MAC) as well.

5. What do we say when we contact ITA officials? Tell them that you are applying for federal financial assistance for competitiveness strengthening market development projects through ITA's MDCP. Tell them you understand that ITA officials who work in partnership with MDCP award winners normally receive funds to help MDCP winners to achieve their goals. Meet with them face-to-face if possible and ask for their advice.  
 
6. What kinds of comments can ITA officials offer about our application prior to the competition period? Plenty. Here's a list of some of the most important:
  • Viability of the proposed project.
  • Whether the proposed project would duplicate services already provided by ITA.
  • Suggestions on how the ITA team assigned to you (if you win) might be able to enhance your project.

  • Suggestions on information sources.  
7. Are there any restrictions to the comments ITA officials can provide? Yes. When the competition period starts, after the FFO is published, ITA officials cannot comment on the merits of your proposal. They can still refer you to resources and respond to technical and informational questions, but they cannot indicate whether your proposed application is "on the right track."  See FAQ 33 for additional explanation.
 
8. What kinds of things can the ITA team do to enhance our project if we win an MDCP award? Here's a list of some of the enhancements that ITA has offered to MDCP award winners. For the most part, these are funded by "administrative funds" that the ITA team leader receives each fiscal year.
  • Travel expenses for ITA officials who assist you during visits to target markets.
  • Assistance in recruiting U.S. companies to participate in project activities.
  • Contracted research reports.
  • Travel expenses for foreign employees of the U.S. & Foreign Commercial Service to come to the United States to brief U.S. companies prior to traveling to the target market.

Note that these enhancements are just that, enhancements. They should not be included in your application budget. For the most part, these are activities that you cannot or should not fund with monies included in your project budget.  

9. Our project does not have an industry focus. Should I still contact ITA's Manufacturing and Services (MAS)? Yes. If your proposed MDCP application project does not really focus on any specific industry or cluster of industries, contact Brad Hess.  
 
10. Do we have to put up any money as match? Yes. For every dollar you receive, you must put up two dollars in matching funds. For example, if you receive $100,000, you would have to put up at least $200,000 in match.  

11. Must the match be in cash? You must put up cash match that at least equals the federal financial assistance. The balance can be in kind or cash. For example, if you receive $100,000, you must put up at least $100,000 in cash and another $100,000, which may be in cash or in kind.  

12. What is "in kind"? In-kind contributions may be made by either the applicant or another entity. In-kind contributions by other entities are more common than by applicants because only applicants can make claim cash contributions. The following are examples of in-kind contributions by other entities:
  • Value of salaries and benefits.
  • Airline tickets donated by a U.S. carrier. (You cannot include in your budget airfare on non-U.S. carriers except in certain narrowly defined situations.)
  • Value of fees for services.

This is not a complete list. The value you claim for in-kind services must not exceed fair market value.  

13. What is "fair market value"? Fair market value, when used in the context of in-kind contributions, means the price of the claimed amount that the contributing entity would normally pay. For example, if an applicant's partner organization contributed international trade consulting worth $150 per hour, it would need to provide evidence that the provider of the consulting services actually is paid $150 per hour for services rendered to clients who pay that price to the contributing entity in the open market.  

14. How do we find out if our organization is eligible? Click on the "Determine whether you are eligible." text at the bottom right of www.trade.gov/mdcp for details.
15. When are applications due? Applications are generally due eight (8) weeks after the date we publish our notice of federal funding opportunity notice (FFO). See "MDCP News" on our homepage.for the latest information.

16. How will we know when the FFO notice is published? We should know the publication date a couple of days before the notice is published. We'll email everyone who has given us a valid email as soon as we get a publication date.

Until that time, any information about when the notice might be published will be posted on our home page, trade.gov/mdcp.

17. What countries are allowed as target markets? If we focus on particular markets, we will so state in our announcement of federal funding opportunities (FFO). Until the FFO is published, your best guide is the most recent FFO.  

18. Can we promote agricultural products? No. The MDCP is designed for non-agricultural goods and services. The U.S. Department of Agriculture has its own programs to promote the export of agricultural goods. See www.usda.gov/fas.
19. How do you define "agricultural"? The statutory definition is "agricultural, horticultural, viticultural, and dairy products, livestock and the products thereof, the products of poultry and bee raising, the edible products of forestry, and any and all products raised or produced on farms and processed manufactured products thereof..."

There is often a lot of "gray area" in defining what is an agricultural good. Soybeans are definitely agricultural; however, soy sauce would likely be classified as consumer goods under the purview of the U.S. Department of Commerce. Farm equipment to produce soybeans would be classed as non-agricultural as well.

If you have any questions, contact the relevant ITA/MAS industry specialist.  

20. Can we apply online?  Yes. We encourage applicants to submit their applications electronically as email attachments. Pdf is the preferred format for files submitted as email attachments.

See the application submission instructions beginning on page 19 of the Federal Funding Opportunity notice in the application kit.

Some, but not all, of the application can be submitted via grants.gov. See FAQ 37.
 

21. Can indirect costs be claimed as match? Yes. You claim indirect costs by calculating an indirect cost ratio. See the mock application for an example of this calculation and where to claim it in your budget.  
 
22. How much money can we get? You may receive up to $250,000 in federal financial assistance. The amount you request is for the life of the project, not to exceed three years.  
 
23. Does ITA ever charge for services it provides? ITA's U.S. and Foreign Commercial Service (US&FCS) is required to recover costs for many of the services it provides. To determine whether fees are involved for your planned activities, check with the US&FCS Senior Commercial Officer for each foreign country included in your project.  
 
24.
What are "cash" expenditures?
To be counted as "cash" the amount must be money that your organization, the eligible applicant, spends of its own funds for real expenses directly related to project activity. Examples include:
  • Travel expenses for a trade mission.
  • Salaries and benefits for time of your organization's employees.
  • Fees you pay such as trade show booth rental, printing of project brochures, etc.

This is by no means a complete list. Contact the MDCP Manager with any questions.

25. When are the award recipients announced ?

Usually in October.

26. Can we partner with another organization ? As noted above in FAQs 4-8 and 23, MDCP awards are structured as cooperative agreements. Winning an MDCP award establishes a partnership between you and ITA. ITA will work with you to achieve project success. Partnerships with other organizations are okay, but only one of the partners can be designated as the award recipient. Only the award recipient can claim cash match for cash outlays of its own funds.
27. Can we split an award with another organization ? We do not allow for co-applicants or splitting awards.
28. How much description is needed for the performance measure recording and reporting system ? We need to see enough description to assure us that you can actually collect the information. You will probably want to submit more description than was included in the mock application. One of the reporting performance requirements is that you have companies planning to participate in your project activities sign a participation agreement wherein they can indicate their willingness to provide performance data such as value of exports.
29. If we win an award, how soon can we begin working on project activity ? We don't usually announce award winners until early October. Therefore, October 1, would be the earliest practical start date. Start dates between October 1 and January 1, are most common. In the past, MDCP projects have begun as late as April 1. If you want to start project work later than January 1, you should explain in your application the need for delaying the start of project work.
30 We're having trouble modifying the non-personnel and the personnel budget spreadsheets included on the blank budget spreadheet file. These two spreadsheets are not forms per se. They are examples of one way to format your budget. By necessity, at some point a mock application will have to contain portions which are useful only as examples and not as templates. You will note that in our application kit cover page, we did not intend to provide a blank spreadsheet for non-personnel or personnel. You might do better to create your own non-personnel and personnel spreadsheets from scratch rather than try to modify those included on the mock application.
31. We have an active MDCP award. Our ITA team leader, using a separate fund that ITA uses to administer its activity related to MDCP awards, wants to commission some market research that would help us as well as ITA. Can we claim the amount ITA spends on this research as part of our cash contribution on our MDCP budget?

No. Each MDCP award winner enters into a cooperative agreement with ITA. This means that ITA will have substantial involvement with each cooperator as it works on MDCP project activity. Whenever appropriate, and when availability of funds permits, ITA's substantial involvement may include purchasing market research that it will keep and also share with a cooperator in the context of the MDCP project work.

Like all expenditures of administrative funds, ITA accounts for this amount separately. It is not to be included in the cooperator's award accounting at all. This means, for example, that expenditure of ITA award funds for market research may not be counted by the cooperator as match.

32 Referring to the market research in FAQ 31. above, may a cooperator that will benefit from market research commissioned by ITA with administrative funds, bid to receive the contract by which ITA will secure and pay for the requested research?

No. Cooperators should not bid on contracts to be let by ITA for expenditures that benefit the cooperator's MDCP project.

33 Counseling potential applicants. Restrictions during the competition period: Examples of appropriate activity. During the competition period, DOC officials may communicate with MDCP applicants. There is much that DOC officials can share even during the competition period. Here are some examples:

1. Information about ITA products and services.

2. Referrals to sources of information relevant to an applicant's interests.

3. Providing specifics about requested services, planned activities, etc. For example, applicant American Widget Association (AWA) may need to know about the cost and timing for Gold Key Service (GKS) packages for several of its members during a particular time of the coming year. It needs to know about this in order to come up with the detailed project budget it formulates for its MDCP application. By all means, this is the sort of information, even accompanied by related suggestions about using GKS or other CS services, that would be appropriate for anyone planning to use them.

It is normal for MDCP applicants, like anyone else in the U.S. business community served by DOC, to have questions about details and to expect answers from. DOC can provide those answers. DOC should not, however, be in a position of providing advice on the merits of an applicant's MDCP application ideas.

The examples listed above are illustrative. They are not inclusive or restrictive. It is okay for DOC officials to talk to MDCP applicants during the competition period. But, it's not okay for DOC officials to comment on the merits of an application or on application ideas.

34 Potential Applicant FAQs. Submitting an application: Hardcopy There are two ways of submitting complete applications one includes a minimum required three hardcopies and the other an optional five hardcopies:

1. Hard-copy submission of original plus two copies on or before the submission deadline announced in the FFO. (If it does not create a financial hardship, an additional two copies are requested.)

2. Electronic submission by the published deadline (required if this option is chosen), followed by five hardcopies within a week. The five hardcopies are optional. (The minimum requirement for submitting electronically is the electronic submission itself. The five hardcopies make processing easier, but are not required.)

35 Potential Applicant FAQs. Submitting an application: Why submit electronically? Applications are made available for review by ITA professionals posted at numerous locations throughout the world. In order to expedite the application evaluation process, we post the applications electronically on a secure intranet. Here ITA professionals can review applications of interest and provide comments that can be considered by ITA's selection panel.

The more applications we receive electronically, the fewer we have to scan, and the quicker we can make the applications available to ITA reviewers.

36 Potential Applicant FAQs. Submitting an application: Why submit a total of five hard-copies if the minimum requirement is either an electronic submission or an original hard copy plus two copies? The additional copies allow each member of the selection panel to have their own copy of each application, copied, bound, tabbed, and otherwise prepared in the way the applicant prefers to prepare it rather than a rely on basic photocopies that we prepare. (For those applications that are submitted pursuant to the minimum electronic or hard-copy requirements, we will make additional photocopies so that each selection panelist has their own copy of each application.)
37 Potential applicant FAQs. Submitting an application: Online submissions via Grants.gov. It is possible to submit some of the required forms online at www.grants.gov. These include the 424 and 424A. However, the vast bulk of the application cannot be developed or even entered online. Applicants are free to submit the forms online that are available through grants.gov; however, we do not require this. Applicants may choose to simply submit their entire application together as one unit as an email attachment by the published deadline, followed by five hardcopy within a wee. Or applicants may simply submit them minimum: an original plus two hardcopies by the published deadline.

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