Federal State Marketing Improvement Prog. (State, Local, Tribal Gov't.)

FEDERAL-STATE MARKETING
IMPROVEMENT PROGRAM
Catalog of Federal Domestic Assistance Number 10.156

FY 2013
APPLICATION
GUIDELINES
APPLICATION DEADLINE: May 28, 2013

FINAL
April 25, 2013

CHANGES for FY 2013 FSMIP
It is important that applicants read the entire FSMIP Guidelines as there are some changes
and new requirements for 2013. Below are the highlights, but the list is not exhaustive.
PROGRAM SCOPE
• Proposals must have a strong marketing focus, must involve research, and the
primary beneficiaries must be agricultural producers and agribusinesses. Proposals
that involve training or education programs must include a research component that
tests the effects of the program on the marketing goals.
•

•

All projects authorized under FSMIP’s enabling legislation are welcome. AMS
also encourages proposals that address the following objectives:
• Creating wealth in rural communities through the development of local and
regional food systems and value-added agriculture.
•

Developing direct marketing opportunities for producers, or producer
groups.

•

Assessing challenges and developing methods or practices that could assist
local and regional producers in marketing agricultural products that meet
the mandates of the Food and Drug Administration’s new Food Safety
Modernization Act.

A follow-up proposal is allowed only after the original FSMIP project has been
completed, and the final report has been submitted to and accepted by FSMIP. A
follow-up proposal to an in-progress FSMIP project is not allowed.

APPLICATION PROCEDURES AND REQUIREMENTS
• Applications must be submitted online via www.grants.gov . FSMIP will not
accept any other form or method of application.
•

All components of the application must be submitted together by the deadline.

•

The SF 424A Budget Information Non-Construction Programs is not required.

•

The proposal Narrative cannot exceed 10 pages, down from 12 pages last year.

•

Additional required elements include at least one, but no more than three, letters of
support for the project from stakeholders or beneficiaries. Congressional letters do
not meet this requirement.

•

Applicants must provide a statement verifying that any sub grantee or contractor
named in the application is not suspended or debarred or otherwise excluded from
eligibility to receive grant funds.
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Table of Contents
1. OVERVIEW ................................................................................................................4
2. LEGISLATIVE AUTHORITYAND FUNDING LEVEL ..........................................4
3. PROGRAM SCOPE .....................................................................................................4
4. ELIGIBLE APPLICANTS............................................................................................6
5. APPLICABLE REGULATIONS..................................................................................6
6. APPLICATION PROCEDURES AND REQUIREMENTS
A. www.grants.gov (Grants.gov) ...............................................................................7
B. Federal System for Award Management ...............................................................7
C. Developing Proposals ............................................................................................8
D. Project Duration ....................................................................................................9
E. Matching Requirement ..........................................................................................9
F. Restrictions and Limitations on Program Activities and Expenditures ..................9
G. Application Deadline ...........................................................................................12
H. Confirmation of Receipt of Application...............................................................12
I. Application Checklist ...........................................................................................12
J. Federal Application Forms ...................................................................................13
K. Cover Page ..........................................................................................................13
L. Narrative .............................................................................................................13
M. Budget Spreadsheet and Budget Narrative ..........................................................15
N. Other Required Elements .....................................................................................16
7. REVIEW PROCESS ...................................................................................................17
8. AWARD ANNOUNCEMENT ...................................................................................18
9. POST AWARD MANAGEMENT .............................................................................18
10. RECORD RETENTION AND CLOSEOUT .............................................................22
11. FSMIP CONTACT .....................................................................................................23

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1. OVERVIEW
The Federal-State Marketing Improvement Program (FSMIP) provides matching funds on
a competitive basis to State Departments of Agriculture, State agricultural experiment
stations, and other appropriate State agencies to assist in exploring new market
opportunities for U.S. food and agricultural products, and to encourage research and
innovation aimed at improving the efficiency and performance of the U.S. marketing
system. These Application Guidelines are intended for use by applicants and their partners
in developing proposals, applying for FSMIP funds, and understanding the basic
requirements in the post-award period. For the sections of this document that deal with
pre-award and award activities, the term “State Agency” refers to an eligible applicant.
For sections that deal with post-award activities, the term “grantee” refers to an eligible
applicant that has been awarded a FSMIP grant.

2. LEGISLATIVE AUTHORITY AND FUNDING LEVEL
Legislative authority for FSMIP is provided under Section 204(b) of the Agricultural
Marketing Act of 1946, (7 U.S.C. 1621-1627), subject to final appropriation action by
Congress. Approximately $1 million in grant funds are available for fiscal year 2013.
Grants typically average about $50,000 each. In recent years, grants have ranged from
$25,000 to $135,000.

3. PROGRAM SCOPE
FSMIP funds a wide range of applied research projects that address barriers, challenges,
and opportunities in marketing, transporting, and distributing U.S. food and agricultural
products domestically and internationally.
Eligible agricultural categories include livestock, livestock products, food, feed and fiber
crops, fish and shellfish, horticulture, viticulture, apiary, and forest products and processed
or manufactured products derived from such commodities. Reflecting the growing
diversity of U.S. agriculture, in recent years, FSMIP accepts proposals dealing with
nutraceuticals, bioenergy, compost, agroforestry products, and products made from
agricultural residue. To check on the eligibility of other agricultural categories not listed,
please contact the FSMIP Staff Officer.
Proposals may focus on addressing barriers, overcoming challenges or realizing
opportunities manifesting at any stage of the marketing chain including direct, wholesale,
and retail. Proposals must have a strong marketing focus, must involve research, and the
primary beneficiaries must be agricultural producers and agribusinesses. Proposals that
involve training or education programs must include a research component that tests the
effects of the program on the marketing goals. Proposals may involve small, medium or
large scale agricultural entities but should benefit multiple producers or agribusinesses,
whereas proposals that benefit one business or individual will not be considered.
Proposals that address issues of importance at the State, multi-State, or national level are
appropriate for FSMIP. Of particular interest are proposals that reflect a collaborative
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approach between the States, academia, the farm sector and other appropriate entities and
stakeholders. FSMIP will also consider unique proposals on a smaller scale that may serve
as pilot projects or case studies useful as models for others. Such proposals should include
an objective to analyze opportunities and formulate recommendations with regard to how
the project could be scaled up or expanded to other regions.
FSMIP’s enabling legislation authorizes projects to:
• Determine the best methods for processing, preparing for market, packing,
handling, transporting, storing, distributing, and marketing agricultural products.
• Determine the costs of marketing agricultural products in their various forms and
through various channels.
• Assist in the development of more efficient marketing methods, practices and
facilities to bring about more efficient and orderly marketing, and reduce the price
spread between the producer and the consumer.
• Develop and improve standards of quality, condition, quantity, grade and
packaging in order to encourage uniformity and consistency in commercial practices.
• Eliminate artificial barriers to the free movement of agricultural products in
commercial channels.
• Foster new/expanded domestic/foreign markets and new/expanded uses of
agricultural products.
• Collect and disseminate marketing information to anticipate and meet consumer
requirements, maintain farm income, and balance production and utilization.
All proposals that fall within one or more of the above categories are welcome. In
addition, FSMIP encourages State agencies to submit proposals that address the following
objectives:
• Creating wealth in rural communities through the development of local and
regional food systems and value-added agriculture.
•

Developing direct marketing opportunities for producers, or producer groups.

• Assessing challenges and developing methods or practices that could assist local
and regional producers in marketing agricultural products that meet the mandates of the
Food and Drug Administration’s new Food Safety Modernization Act.

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4. ELIGIBLE APPLICANTS
Eligible grant applicants (“State agencies”) are State departments of agriculture, State
agricultural experiment stations, and other appropriate State agencies from the 50 States,
American Samoa, the District of Columbia, Guam, the Federated States of Micronesia, the
Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and
the United States Virgin Islands. The term “other appropriate State Agency” means a State
university, a State college, or a State government entity such as a State department of
forestry, natural resources, or energy. The terms State university and State college include
land-grant universities and colleges established under the Morrill Acts of 1862 and 1890,
and tribal colleges and universities that became land-grant institutions in 1994, under the
Elementary and Secondary Education Reauthorization Act.

5. APPLICABLE REGULATIONS
Administrative provisions and cost principles provide the regulatory framework under
which grantees and subgrantees conduct Federal grants, and they may be consulted when
developing proposals. All grantees and subgrantees must follow 7 CFR Part 3015,
“Uniform Federal Assistance Regulations.” Additional regulations apply depending on the
type of organization. For example, if a grantee is a State department of agriculture, the
administrative requirements contained in 7 CFR Part 3016 and the cost principles
contained in 2 CFR Part 225 apply. If a subgrantee is a non-profit organization, the
administrative requirements contained in 7 CFR Part 3019 and the cost principles
contained in 2 CFR Part 230 apply to the grant activities of the subgrantee.
Following are the relevant administrative provisions and cost principles. The Code of
Federal Regulations (CFR) is accessible through the National Archives and Records
Administration . OMB circulars are available at www.whitehouse.gov/omb/circulars/ .
Administrative Provisions
7 CFR Part 3015, “Uniform Federal Assistance Regulations;”
7 CFR Part 3016, “Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments;” and
7 CFR Part 3019, “Uniform Administrative Requirements for Grants and Other
Agreements with Institutions of Higher Education, Hospitals, Non-profit
Organizations, and For-Profit Organizations.”
Federal Cost Principles
2 CFR Part 225 (OMB Circular No. A-87), “Cost Principles for State, Local, and
Indian Tribal Governments.”
2 CFR Part 220 (OMB Circular No. A-21), “Cost Principles for Educational
Institutions.”

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2 CFR Part 230 (OMB Circular No. A-122), “Cost Principles for Nonprofit
Organizations.”
48 CFR Part 31.2, Federal Acquisition Regulations (FAR), Principles for determining
costs with profit making firms, “Contracts with Commercial Organizations.”
Debarment and Suspension Requirements
In accordance with 2 CFR Part 180, OMB Guidelines to Agencies on Government wide
Debarment and Suspension (NONPROCUREMENT), organizations or individuals that are
suspended, debarred, declared ineligible, or voluntarily excluded from eligibility for
covered transactions by any Federal department or agency cannot, during the period of
suspension, debarment, or exclusion, receive USDA grants or be paid from USDA grant
funds, whether under a primary or lower-tier transaction. Contracts (including individual
consultants) under grants where the contract requires the provision of goods or services
that will equal or exceed $25,000, and all sub awards also are subject to these suspension
and debarment rules.
If sub grantees or contractors will participate in the project, applicants must check the
System for Awards Management (SAM) at www.sam.gov, a centrally maintained
government-wide database that includes the names of organizations and individuals that
have been debarred, suspended, declared ineligible, or been voluntarily excluded.
Applicants must include a statement with the application indicating that they have checked
SAM and that the sub grantee or contractor is not debarred, suspended, declared ineligible,
or been voluntarily excluded.

6. APPLICATION PROCEDURES AND REQUIREMENTS
A. www.grants.gov (Grants.gov)
Applications must be submitted on line via Grants.gov, the central site for finding and
applying for Federal grants. FSMIP will not accept any other form or method of
application, and FSMIP will not accept applications after the posted application
deadline.
Applicants are strongly urged to become familiar with the Federal grants website and
begin the registration process as soon as possible before the application deadline. For
instructions on applying electronically, go to:
www.grants.gov/applicants/apply_for_grants.jsp . The Grants.gov Support Center is
available 24 hours a day at 1-800-518-4726, and by email: [email protected].
B. FEDERAL SYSTEM FOR AWARD MANAGEMENT
The Federal System for Award Management (SAM) is a Federal Government owned
and operated free web site that consolidates the capabilities of multiple Federal systems
including the Central Contractor Registration (CCR). All applicants and potential subgrantees must register at the SAM site: www.sam.gov. To ensure timely completion,
these requirements should be initiated as soon as possible before the application
deadline.
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C. DEVELOPING PROPOSALS
State Agency Responsibilities
State agencies bear the primary responsibility for developing proposals and
overseeing funded projects. Proposals must be structured so that the State Agency
maintains control of the project objectives, sets policy, and ensures that the project
will be carried out in accordance with all applicable Federal statutes and regulations
as well as with the terms and conditions of the grant agreement. State agencies are
responsible for ensuring that subgrantees maintain appropriate records and that they
conform with all applicable Federal statutes and regulations as well as to the terms
and conditions of the grant agreement.
State agencies should ensure that proposals are appropriate for FSMIP by
reviewing the PROGRAM SCOPE on page 4. Contact the FSMIP Staff Officer if
there is any question about whether or not the proposal qualifies for FSMIP.
Outreach
State agencies assume the lead role in FSMIP projects and use cooperative or
contractual linkages as needed to carry out the proposed work. State agencies are
encouraged to reach out to potential project partners within their States such as
producer and commodity groups, community-based organizations, economic
development organizations, and groups that represent American Indians and Alaska
Natives, socially disadvantaged producers, and veterans to engage them in
developing proposals.
Multi-State Proposals
Multi-State proposals are encouraged. For such proposals, the State Agency that
will assume the administrative and coordinating role should submit the application.
Previous and Similar Projects
If the proposal: (a) Builds on a project funded by the AMS Specialty Crop Block
Grant Program, the AMS Farmers Market Promotion Program, or another USDA
grant program; (b) Is part of a larger project; (c) Builds on a previously funded
FSMIP project; or (d) Is similar to or replicates previous FSMIP-funded work done
in another State or under another project, an explanation must be included in the
project Narrative that explains how the proposal relates to, and is distinct from,
such work.
A follow-up proposal to an in-progress FSMIP project is not allowed. A follow-up
proposal is allowed only after the original FSMIP project has been completed, and
the final report on the original FSMIP project has been submitted to and accepted
by FSMIP. It is also FSMIP’s policy not to fund more than three successive
projects on the same topic submitted by the same State Agency and/or its partners.
Proposals Involving Foreign Market Development or Foreign Travel
If a proposal involves foreign market development, determine first if the project is
more appropriate for grant programs administered by the Foreign Agricultural
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Service (FAS) or for funding through the State-Regional Trade Groups. FSMIP
recommends that applicants search the FAS database of GAIN reports to ensure
that proposals will not duplicate existing information. Any request for funds to
conduct foreign travel must be directly related to the project objectives.
Small Scale Project Proposals
FSMIP will consider unique proposals on a smaller scale than State level impact
that may serve as pilot projects or case studies useful as models for others. Such
proposals should include an objective to analyze opportunities and formulate
recommendations with regard to how the project could be scaled up or expanded to
other regions.
D. PROJECT DURATION
FSMIP funds are awarded for proposals of from one to two years’ duration. If
contractual arrangements will be necessary to carry out the project, be sure to factor
that in when deciding on an ending date. FSMIP prefers that applicants request two
years to complete such projects in order to minimize requests for no-cost time
extensions. It is acceptable to complete projects before the scheduled ending date.
E. MATCHING REQUIREMENT
FSMIP grants must be matched $1-for-$1 with cash and/or with properly-valued inkind non-Federal resources. State appropriations, as well as funds or other resources
contributed by project participants, can be used to satisfy the matching requirement.
All matching contributions must be committed or in place when the proposal is
submitted to FSMIP. Non-Federal grant funds that are expected or anticipated to be
awarded by the time the project commences cannot be counted toward the matching
requirement. Program income cannot be contributed as a match. Applicants should
review the applicable Federal regulations and contact FSMIP if there are any questions
about what constitutes a legitimate match.
The State Agency is required to obtain, and submit with the application, written
verification of commitment from any third party who will contribute cash and/or inkind matching resources to the project. Such written verification is not required of the
State Agency because the signature of the State Agency representative on the SF 424
Federal application form affirms the availability of the matching resources the State
Agency brings to the project.
Examples of matching resources include cash, student tuition, partner’s time, meeting
facilities if they would otherwise have to be rented, and travel expenses associated with
the project. If you are uncertain if an activity or resource not listed here would qualify
as a match, please contact the FSMIP Staff Officer.
F. RESTRICTIONS AND LIMITATIONS ON PROGRAM ACTIVITIES AND
EXPENDITURES
All expenditures and accounting must be completed in accordance with applicable
parts of 7 CFR parts 3015, 3016 and 3019; applicable Federal Cost Principles; and with
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successive published regulations. Following is guidance on common categories of
FSMIP proposal budgets:
Advertising and Promotion
FSMIP will not approve the use of grant funds for the following activities:
•

Product advertising through any media, either directly or indirectly, through an
advertising agency or other firm.

•

General publicity or information programs designed to build the image of the
State’s agriculture, State Department of Agriculture, or other State Agency.

•

Costs associated with County and State fair exhibits, or promotion of
commodity months or weeks.

•

Purchase of products or samples of products to give away to the public.
However, products or samples may be purchased with grant funds or brought as
a match if they are used in a study that assesses consumer acceptance or has a
similar evaluative objective.

•

Promotional items such as point-of-sale materials, promotional kits, billboard
space, signs or streamers, automobile stickers, table tents, and place mats, or
promotional gift items of a personal nature.

•

Expenses relating to domestic or foreign trade shows except educational
programs or technical seminars conducted to educate potential buyers about the
properties, characteristics or uses of an agricultural commodity or product.

Equipment and Facilities
FSMIP will not approve the use of grant funds for the construction of facilities or
the acquisition of land. Equipment rental costs may be charged to the project
account. Grant funds may be used to rent a building or room and to purchase
supplies and other materials, however, where appropriate, FSMIP encourages the
use of technologies such as webinars, teleconferencing, or videoconferencing as an
alternative to renting a building or a room. If renting a building or a room is
necessary, the most cost-effective facilities such as State government conference
rooms should be utilized.
Salary and Travel
FSMIP funds can be used to pay salary and travel of individuals for activities
directly related to the project objectives. All travel expenses associated with
FSMIP projects must follow Federal travel regulations (41 CFR Chapters 300
through 304) unless State travel requirements are in place. If alternative
technologies such as teleconferencing or videoconferencing are available,
appropriate for the project, and less costly, they should be utilized as an alternative
to travel.
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Printing and Publications
Grant funds may be used to pay the cost of preparing informational leaflets, reports,
manuals, and publications relating to the project, however the printing of hard
copies is discouraged. All materials should be made available in an electronic
format that complies with Section 508 of the Rehabilitation Act (29 U.S.C. 794d),
as amended by the Workforce Investment Act of 1998 (P.L. 105-220), August 7,
1998.
Conferences/Workshops
FSMIP will not fund a project that consists of only a conference, but a conference
may be part of a larger project. The applicant should clearly indicate the purpose
and target audience for any conference or workshop, and explain how the activity
will be paid for. Also indicate if registration fees will be collected and if so, show
the fees as program income on the Budget Spreadsheet and provide an explanation
in the Budget Narrative. If funds are requested to pay for food or refreshments,
provide an estimate of the cost per person.
Administrative Costs
Administrative costs directly attributable to the project may be charged, on a shared
basis, to both the Federal and matching funds allocated to the project or they may
be credited entirely toward the matching requirement.
Indirect Costs
FSMIP retains the long-held policy of prohibiting use of grant funds to pay
overhead or indirect costs. It is permissible, however, for the State agency to
include such costs as part of the matching requirement, provided that the rates are
established in accordance with appropriate cost principles for Federal grant
programs. The indirect cost rate can be applied to the total project cost (grant +
match). The maximum rate that may be used to calculate indirect costs is the
indirect cost rate negotiated with the cognizant Federal agency.
Political Activity
Provisions of the Hatch Act (5 U.S.C., pages 1501-1508 and 7324-7328), which
limit the political activities of employees whose principal employment activities are
funded in whole or in part with Federal funds, apply to FSMIP projects.
Tuition
FSMIP funds cannot be used to pay tuition of college or university students but
tuition may be brought as part of the match.
Program Income
Program income is gross income earned by a grant recipient resulting from
activities supported by a grant. It includes income in the form of fees for services
performed during the grant period, real property, usage or rental fees, or patent or
copyright royalties. Program income cannot be used to meet the matching
requirement.
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FSMIP projects may involve program income such as registration fees for a
conference held under a FSMIP project. Federal regulations require that the total
grant award be reduced by an amount equal to the program income unless written
permission is obtained from the grant agency. Acceptable uses of program income
that FSMIP may approve include: (a) Expanding the project or program; (b)
Continuing the project or program after the grant or sub-grant support ends; (c)
Supporting other projects or programs that further the broad objectives of FSMIP;
or (d) Obtaining equipment or other assets needed for the project or program or for
other activities that further FSMIP’s objectives.
G. APPLICATION DEADLINE
The deadline for submitting FY 2013 applications is 11:59 pm Eastern Standard Time,
May 28, 2013. Applications must be submitted electronically through Grants.gov.
Ensure that all components are complete before submitting them to Grants.gov. It may
take more than one try before your application is successfully submitted so plan ahead
to leave enough time for the application process.
H. CONFIRMATION OF RECEIPT OF APPLICATION
Once Grants.gov has received your submission, Grants.gov will send email messages
to advise you of the progress of your application through the system. Over the next
two business days, you should receive two emails. The first will confirm receipt of
your application by the Grants.gov system, and the second will indicate that the
application has either been successfully validated by the system prior to transmission to
FSMIP or has been rejected due to errors. If you do not receive a receipt confirmation
AND either a validation confirmation or a rejection email message within two business
days, please contact Grants.gov. You may track your application throughout this
process on Grants.gov under "Track My Application." Once FSMIP retrieves your
application from Grants.gov, you will receive a third email.
Within a week of receiving your application, FSMIP will send you an email to confirm
that all of the components of the application described in Section I have been received.
Note that at any time during the review process, FSMIP may reject an application for
failure to comply with the requirements contained in these Application Guidelines.
I. APPLICATION CHECKLIST
All of the following components of the application are required and must be submitted
together via Grants.gov no later than the application deadline. Details about each of the
application components are covered in subsequent sections of these Application
Guidelines.
(1) Federal Application Forms
• SF 424 – Application for Federal Assistance
• SF 424B – Assurances - Non-Construction Programs
(2) Cover Page
(3) 10-page Narrative
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(4) Budget Spreadsheet and Budget Narrative
(5) Other Required Elements
• Personnel Qualifications
• Statement Regarding Debarment and Suspension Verification of Sub
Grantees and Contractors
• Letters from Third Parties who will Contribute Matching Resources
• 1-3 Letters of Support from Stakeholders or Beneficiaries
J. FEDERAL APPLICATION FORMS
The SF 424 and SF 424B are available when you access the FSMIP opportunity at
Grants.gov. Most information blocks are either self-explanatory or explained in the
instructions. Following is guidance for specific blocks on the SF 424:
Block 8d. Address – street address and 9-digit zip code – do not give P.O.Box
Block 10. Name of Federal Agency – USDA/AMS
Block 11. Catalog of Federal Domestic Assistance Number – 10.156
Block 12. Funding Opportunity Number: USDA-AMS-FSMIP-2013
Title - Federal-State Marketing Improvement Program
Block 15. Descriptive Title of Applicant’s Project:
Provide only the project title, not to exceed 10 words
Block 17. Proposed Project:
a. Start Date –September 30, 2013
b. End Date: no later than September 29, 2015
Block 18. Estimated Funding ($):
a. Federal – Total FSMIP funds requested
b. Applicant – State Agency match
c. State – match from other State Agency (ies) or institution (s), if applicable
d. Local – match from local governments (ex: county, municipality), if applicable
e. Other – match from non-government sources (example: non-profits,
commodity or trade associations, producer groups, etc), if applicable
Block 19. Executive Order 12372: consult the following website to determine if this
is applicable in your State: http://www.whitehouse.gov/omb/grants_spoc .
K. COVER PAGE
The Cover Page consists of a Proposal Title of no more than 10 words, and the names
and contact information of the project leader and other principal partners.
L. NARRATIVE (Pages 1-10)
To ensure a fair and equitable competition, the required format is a 12-point font with
1-inch margins. Number the pages in the right hand bottom corner. The Narrative may
be in Word (.doc, .docx) or Adobe Acrobat (.pdf), but whichever format is used, the
cut/paste function must be operational. The Narrative must include the following
sections in order. All sections of the Narrative must be in a sentence format. Do not
combine sections into a spreadsheet or table.

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(1) PROJECT SUMMARY
A concise, stand-alone description of and justification for the project. The
maximum length is 250 words.
(2) BACKGROUND AND JUSTIFICATION
Clearly identify the marketing issue, problem, barrier, challenge or opportunity to
be addressed and explain why the proposal is important and timely. Provide a brief
literature review. Include data or estimates that demonstrate the extent of the
problem, the number of agricultural producers or operations affected, and the
potential economic impact. Indicate who will benefit and explain how they will
benefit from the project. If the proposal:
•

Builds on a project funded by the AMS Specialty Crop Block Grant Program,
the AMS Farmers Market Promotion Program, or another USDA grant
program, briefly describe what has been accomplished already, how the
proposal is distinct from the previous work, and how the proposal furthers the
ultimate goals of the project.

•

Is part of a larger non-FSMIP project, briefly describe how the proposal fits
into the larger project and how it is distinct from other aspects of the larger
project.

•

Is a follow-up to a previously completed FSMIP project, briefly describe what
has been accomplished already, how the FSMIP proposal is distinct from the
previous project, and how the proposal advances the overall project goals.

•

Is similar to or replicates previous FSMIP-funded work done in another State
or under another project, describe how the proposal is distinct from such work,
and indicate briefly how it will add to the general body of knowledge on this
topic. A search function for FSMIP final reports is available at
www.ams.usda.gov/FSMIP.

•

Involves foreign market development, briefly describe efforts taken to ensure
this proposal does not duplicate publically available reports or data, and
describe how it will fill any data gaps.

(3) OTHER GRANT PROGRAMS
Indicate if the proposal has been or will be submitted to another Federal grant
program, and if so, please identify that grant program.
(4) GOAL(S), OBJECTIVES AND WORK PLAN
Describe the overall goal(s) in one or two sentences. List and describe the proposal
objectives. Explain how each objective will be accomplished and by whom. Also
include the expected completion date for each objective or list the major milestones
of the project.

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If the proposal involves a survey, briefly discuss the nature of the questions that
will be asked, the methodology to be used for data collection and analysis, and the
population to be surveyed. It is not required, but if it is available, include a draft
survey as an appendix. A draft survey does not count toward the 10-page Narrative
maximum.
(5) PROJECT EVALUATION, OUTPUTS AND EXPECTED OUTCOMES
Describe what the project is expected to accomplish and how it will be evaluated
while in progress and upon conclusion. Describe outputs that explain who the
target audience is and what activities are to be completed. Describe expected
measureable outcomes that explain what knowledge may be gained or what actions
may be implemented as a result of the project. Include at least one quantitative
metric that will be reported at the beginning and the end of the project to
demonstrate impact.
(6) PROJECT DELIVERABLES AND OUTREACH PLAN
List any expected deliverables that will result from the project in addition to the
required final report. Examples of project deliverables include professional journal
or farm press articles, Extension bulletins, manuals. Describe how you will
disseminate the project results to the target audience, stakeholders and other
interested parties beyond those directly served by the project. Examples of such
activities include presentations at professional conferences or producer meetings,
and publication of articles in professional journals or the agricultural press,
educational brochures, .ppt presentations, survey instruments, and websites.
(M) BUDGET SPREADSHEET AND BUDGET NARRATIVE
The Budget Spreadsheet should show the relevant expenditure categories in the far left
column and, proceeding across the page, there should be a column showing the dollar
amount of FSMIP funds requested and separate columns showing the dollar amount for
each of the entities that will provide matching resources. For 2-year projects, provide
separate Year 1, Year 2, and cumulative budgets.
The Budget Narrative should explain how the dollar amounts for each category shown
on the Budget Spreadsheet were derived and what they cover. Following is guidance
on some of the more common expenditures associated with FSMIP projects.
Personnel – Show hourly rates and estimated number of hours, FTEs or percent of
time to be spent on the project, and describe the role and responsibilities of each
party. If a third party will be hired after the grant is awarded but has not yet been
identified, provide a brief description of the qualifications to be sought and the type
of wages to be paid hourly, salaried, or graduate assistantship.
Travel – Indicate what the travel includes (mode of travel, how many people, how
many days, destination, lodging, meals, etc. as applicable) and how it relates to the
project goals.

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Contracts – Indicate if the expense represents a flat fee for services, or an hourly
rate. Indicate the actual or estimated hourly rate to be applied. List general
categories of items the contract covers such as professional services, travel,
lodging, administrative expenses, etc.
Indirect Cost – Indicate the rate used to calculate the indirect cost and the source of
the rate. The indirect cost rate can be applied to the total project cost (grant +
match). The maximum rate that may be used to calculate indirect costs is the
indirect cost rate negotiated with the cognizant Federal agency.
Administrative Costs
Administrative costs directly attributable to the project may be charged, on a shared
basis, to both the Federal and matching funds allocated to the project or they may
be credited entirely toward the matching requirement.
N. OTHER REQUIRED ELEMENTS
(1) PERSONNEL QUALIFICATIONS
Provide a one- to two-page resume of relevant experience and/or qualifications of
the principal investigators and for each of the other major project participants.
Longer resumes will be disregarded.
(2) DEBARMENT AND SUSPENSION VERIFICATION OF SUB GRANTEES
AND CONTRACTORS
Applicants must verify that any sub grantee or contractor named in the application
is not suspended or debarred or otherwise excluded from eligibility to receive grant
funds. Applicants should provide a statement such as the following:
I affirm that on I checked the Federal website www.sam.gov and have
determined that is not suspended or
debarred or otherwise excluded from eligibility to receive grant funds.
If the sub grantee or contractor is not currently registered with SAM, the applicant
should strongly advise them to register as their status must be verified as a
condition for awarding grant funds. If this is the case, provide a statement such as
the following:
is not yet registered with SAM, but they
have been advised to do so as a condition for participating in this project.
(3) LETTERS FROM THIRD PARTIES WHO WILL CONTRIBUTE
MATCHING RESOURCES
Written verification of commitment from each third party who will contribute cash
and/or in-kind matching non-Federal resources to the project is required. Written
verification should be in the form of a letter on organization letterhead, and may be
addressed either to the State Agency or to the FSMIP Staff Officer. Letters must
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accompany the proposal at the time of application. Do not send original letters.
Unsigned letters and email messages in lieu of a letter will not be accepted. Clearly
indicate at the top of the letter that it is a MATCH letter. Letters of verification
must include:
• Organization name, name and title of letter writer, address, telephone
number and email address.
• Project title and a reference to FY 2013 FSMIP.
• Total dollar amount of cash contribution and/or a description of the in-kind
contribution. For example, if the in-kind contribution is personnel time,
include name, title, total dollar amount and an indication of number of
hours, percent of salary or FTEs the dollar amount represents.
(4) LETTER(S) OF SUPPORT FROM STAKEHOLDERS OR BENEFICIARIES
At least one, and no more than three, letters of support from stakeholders or
beneficiaries is required. A third party that contributes resources to the project may
write a letter of support, but that letter must be separate from the Match letter
discussed in item (3). The letter(s) should be on letterhead and may be addressed
either to the State Agency or to the FSMIP Staff Officer. Letters of support must
accompany the proposal at the time of application. Do not send original letters.
Unsigned letters and email messages in lieu of letters will not be accepted. Form
letters are discouraged. Clearly indicate at the top of the letter that it is a
SUPPORT letter. Congressional letters of support do not meet this requirement.

7. REVIEW PROCESS
Proposals are evaluated by a team of reviewers. Individual reviewers will evaluate and
score their assigned proposals and will then confer with other team members to derive a
consensus score which will serve as the basis for awarding and allocating FSMIP grant
funds.
Proposals will be evaluated on the criteria listed below. The text under each heading is
provided to help applicants understand generally what aspects of their proposals will be
evaluated. The text is not meant to be a checklist or to indicate how scores will be
weighted.
(1) QUALITY OF PROPOSAL (40 points) – the proposal is well-justified; the goals,
objectives, and work plan are clear and appropriate; the resources in terms of
personnel and time are appropriate for the project scope; and all budget items are
allowable, reasonable and clearly described.
(2) PROGRAM SCOPE (30 points) –the proposal addresses an important marketing
barrier, challenge or opportunity; has a strong research component; and aligns with the
legislative and program goals.
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(3) IMPACT (30 points) – the proposal describes the potential impact it will have on
target producers and agribusinesses, and the potential for the proposal to provide new
knowledge and lessons learned that could be applied in other States or regions of the
country. For small-scale or pilot proposals, the proposal includes recommendations as
to how the project could be scaled up or expanded to other States or regions. The
proposal includes at least one quantitative metric to demonstrate impact; describes
appropriate deliverables in addition to the final report; and outlines a plan to
disseminate project results electronically and in person to the target audience,
stakeholders, and interested parties beyond those directly served by the project.

8. AWARD ANNOUNCEMENT
For the remainder of this document, the term “grantee” refers to a State Agency that has
been awarded a FSMIP grant. The term “subgrantee” refers to a third party who will
receive grant funds in the course of carrying out the project.
Grant Amount
Grants will be awarded at or close to the requested amount, or at a reduced level if
mutually agreed upon during the negotiation phase of the application review.
Grant Agreement
Upon announcement of the grant awards, FSMIP will prepare and send grant agreements
to grantees for signature by the appropriate official. Grant agreements consist of a 1-page
Agreement Face Sheet (AMS-33) that will be signed by AMS and the grantee, plus a
separate document containing detailed grant terms and conditions.
Start and Ending Dates
The FY 2013 grant period begins September 30, 2013. If the project must begin before the
official September 30 start date, the grantee should contact FSMIP upon notification of the
award. Written approval from FSMIP to begin the project before September 30 ensures
that the grantee will be reimbursed for any pre-award costs incurred, and that any matching
resources expended during the pre-award period count toward the one-to-one matching
requirement.
Unsuccessful Applicants
Unsuccessful applicants will be contacted by FSMIP via email as soon as possible after the
awards are announced to inform them of the results. Upon request, FSMIP will email
unsuccessful applicants a copy of the consensus proposal review.

9. POST-AWARD MANAGEMENT
Responsibilities of the Grantee
Grantees are responsible for monitoring the performance of all project activities,
ensuring that the work is completed within the required time frame, maintaining control

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of the project’s objectives, and setting policy for all aspects of the project. Following
are some of the specific responsibilities:
•

Serve as the contact for FSMIP, subgrantees and other project partners about all
grant and project matters. Subgrantees and partners should be instructed to
communicate directly with the grantee, not with FSMIP, on all matters relating
to the project.

•

Contact FSMIP immediately if problems arise that will interfere with or delay
the project.

•

Inform FSMIP immediately if the project contact changes and provide the
name, title, telephone number and email address for the new project contact.

•

Ensure that both FSMIP funds and matching funds are used only for activities
outlined in the approved project and work plan. Use of grant and matching
funds must conform to the budget submitted with the application as accepted or
as modified by mutual consent before the proposal was approved for funding.
However, once a project is underway, grantees may shift expenditures from any
one cost category or project element to another without obtaining prior approval
from FSMIP, provided that the budget for cost categories or project elements is
not increased or decreased by more than 20 percent of the total FSMIP grant
amount.

•

Instruct sub grantees and any partners that will contribute matching resources
on how to document their work on the project following proper accounting
procedures. Records of receipts and expenditures of Federal funds, matching
funds and in-kind resources must be identifiable within the grantee’s
accounting system. Inform subgrantees and partners that all records relating to
the grant must be retained for three years following the end of the grant period.

•

Inform sub grantees that they will be expected to comply with all applicable
Federal statutes and regulations, and that any information obtained, data
derived, and reports resulting from the FSMIP project must be available to the
public.

•

Report required data about sub grantees who receive sub grants of $25,000 or
more to the Federal Funding Accountability and Transparency Act (FFATA)
Subaward Reporting System (FSRS) database at the FSRS website.

•

Upon request by AMS, furnish any records, reports or contracts relating to the
project.

•

Submit progress reports, a final report, requests for grant funds (SF 270), and a
final financial statement (SF 425).

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•

Seek written approval from FSMIP under the following circumstances:
o Changes in project leadership;
o Foreign travel before the travel is taken;
o Shifts of expenditures from any one cost category or project element to
another if the budget for cost categories or project elements is increased
or decreased by more than 20 percent of the total FSMIP grant amount;
o Changes in the project scope or objectives;
o Need for a no-cost time extension if for any reason the project cannot be
completed within the time frame established in the grant agreement; and
o Appropriate use of any program income generated by the project that
was not outlined in the approved proposal.

Reporting Requirements
Federal Funding Accountability and Transparency Act - Grantees are required to
submit certain data about subgrantees who receive a subaward of $25,000 or more
to the Federal Funding Accountability and Transparency Act (FFATA) Subaward
Reporting System (FSRS) database at the FSRS website. FSMIP grantees will
receive additional guidance after the awards are announced.
Progress Reports - Progress reports are required at the midpoint of projects
approved for one year and at six-month intervals for projects of longer duration.
Progress reports should briefly summarize activities performed and milestones
achieved for each objective or sub-element of the narrative; note unexpected delays
or impediments as well as favorable or unusual developments; outline work to be
performed during the succeeding period; and comment on the level of grant funds
and matching contributions expended to date on the project. Although a sub grantee
or another third party may prepare progress reports, it is nevertheless the grantee’s
responsibility to review and approve them before forwarding them to FSMIP.
Final Report - A final report of results and accomplishments is due no later than 90
days after the grant ending date. Final reports are required to fulfill the terms of the
grant agreement, and they represent an important vehicle for sharing research
findings with Federal and State agencies and the public. Although a sub grantee or
another third party may prepare the final report, it is nevertheless the grantee’s
responsibility to review and approve the report before forwarding it to FSMIP. The
final report will be posted on the FSMIP website. It must include:
• An outline of the issue or problem. Provide enough background
information for the reader to understand the importance of the project. This
section may draw from the background and justification contained in the
approved project proposal.
• A description of how the issue or problem was approached via the project.
Reference the project objectives and work plan.

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• A description of the contribution of public or private agency partners in
terms of the work performed.
• A summary of results, conclusions, and lessons learned. Lessons learned
should cover both positive and negative aspects. Include a discussion of how
the project was evaluated and whether or not it met project objectives. To the
extent possible, include measurable results. At least one quantifiable metric
must be included that indicates the change in status of the project from
initiation to completion.
•

A discussion of current or future benefits to be derived from the project.

• Recommendations for future research and, if applicable, an outline of next
steps or additional research that might advance the project goals.
• A description of the project beneficiaries including the number, type and
scale of producers, processors, and other businesses.
• Additional information generated by the grant project such as publications,
presentations, and websites.
•

A contact person for the project with telephone number and email address.

Sometimes, a project will result in a large study completed by a subgrantee or third
party. If the report completed by the subgrantee or third party does not address the
points listed above, the grantee is responsible for providing a document that
discusses each point.
Any informational leaflets, reports, manuals, publications and professional journal
articles that result from a FSMIP project should acknowledge AMS as a cooperator
in the project and bear a statement such as the following that credits the grant
program: “State funds for this project were matched with Federal funds under the
Federal-State Marketing Improvement Program of the Agricultural Marketing
Service, U.S. Department of Agriculture.” Web pages devoted to the project
should also include this information in a prominent location. A similar
acknowledgment is required on other media products of the grant such as audiovisuals unless the grantee receives a waiver from FSMIP. If press releases relating
to the project are issued, FSMIP should be cited as a source of grant funds. All
materials should be made available in an electronic format that complies with
Section 508 of the Rehabilitation Act (29 U.S.C. 794d), as amended by the
Workforce Investment Act of 1998 (P.L. 105-220), August 7, 1998.
Requests for Payment and Financial Status Reports - It is the grantee’s
responsibility to prepare, sign and submit requests for payment (SF 270) and the
final financial status report (SF 425). If third parties contribute matching resources,
it is the grantee’s responsibility to obtain from them the necessary financial data to
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complete SF 270s and the SF 425. Copies of the appropriate forms are available at:
www.whitehouse.gov/omb/grants/grants_forms.html.
SF 270 Request for Payment - Grant funds must be requested using the SF 270.
Grant funds will be transferred electronically to the bank account information
residing in the Federal System for Award Management (SAM). The grantee
is responsible for keeping their SAM records up to date. In addition to the
request for payments, the SF 270 should indicate the value of any matching
funds expended on the project for the period covered by the payment request.
Grant funds should be requested at reasonable intervals during the project.
FSMIP will require a justification if the initial drawdown of grant funds is not
made in the first year of the grant period, and at reasonable intervals thereafter.
Advances are limited to the minimum amount needed to meet current
disbursement needs and should be scheduled so that the funds are available to
the recipient as close as possible to the actual disbursements.
Requests for payment should be scheduled so that grant funds are obligated no
later than the grant ending date, and disbursed no later than 90 days after the
grant ending date. Grant funds already paid to the grantee, but not used, must
be refunded as soon as possible. Contact FSMIP to obtain instructions for
handling the refund.
SF 425 Final Federal Financial Report - FSMIP requires only a final SF 425.
The final SF 425 must be submitted no later than 90 days after the grant ending
date, and it should reflect the cumulative financial activity, including both grant
and matching funds, over the entire grant period. The final SF 425 should be
scanned and emailed to FSMIP, and the original form should be retained in the
grantee’s project file.

10. RECORD RETENTION AND CLOSEOUT
Record Retention - In accordance with Federal regulations, grantees and subgrantees
must retain all records relating to the grant for a period of 3 years from the date of the
final SF 425 financial status report that is submitted to FSMIP.
Closeout – Before the grant can be closed, the grantee must submit the following
items to FSMIP no later than 90 days after the grant ending date. After reviewing all
documents, FSMIP will email the grantee a closeout letter.
(1) Final Report
(2) Final Federal Financial Report (SF 425)
(3) Any outstanding requests for payment (SF 270)
(4) Refund check of unused grant funds previously paid in advance, if
applicable

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11. FSMIP CONTACT
Janise Zygmont
Staff Officer, FSMIP
USDA, AMS, TMP
1400 Independence Avenue SW, Room 4549-South
Washington, D.C. 20250
Tel: 202-720-5024
Fax: 202-690-1144
Email: [email protected]

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