- MDCP Home
- New Awards for 2020
- What is MDCP?
- Impact
- Reputation for Efficacy
- Important Dates/Contact
- Current ITA Project Teams
- List of All Projects
Click headers to expand:
Results & Highlights
Apply for Project Funding
Cooperator Project Mgt
ITA-MDCP Project Team
Cooperator Financial Mgt
Other MDCP Resources
More Resources
Market Development Cooperator Program
Brief History of MDCP Funding
Thirteen Consecutive Years of Funding
The International Trade Administration (ITA) of the U.S. Department of Commerce has made Market Development Cooperator Program (MDCP) awards each year since the program began in 1993, when Congress included $2.5 m in its Commerce Department appropriation for MDCP funding. MDCP is managed by ITA's Industry and Analysis (I&A) program area. (Prior to 2014, this program area was known as Manufacturing and Services (MAS). From ITA's inception in 1980 to the early 2000s, it was known as Trade Development (TD).) After 1993, MDCP funding was no longer a separate line item in the Commerce Department’s appropriation. Instead, it was considered to be part of ITA’s “base” allocation from the appropriation the Commerce Department received from Congress. Within the ITA base appropriation, funding for MDCP awards has always been under I&A (or its predecessors TD and MAS). Actual amounts that ITA/I&A applied to MDCP awards from 1993 to 2005 range from $1.6 m to $2.5 m with an average of over $2.3 m.
Increase in Earmarks in 2006 Put Squeeze on Non-Earmarked Funding
In its fiscal 2006 appropriation, Congress, using language originating in the Senate, instructed the Commerce Department to increase the level of funding to several organizations, most of them with relation to the textile industry. These “earmarks”, most of which were for programs that had received funding in previous years, totaled about $5 m more than they had in previous years. Congress did not increase ITA’s budget to accommodate the increase in earmarks. In order to fund the $5 m in additional earmark grants, ITA/MAS had to cut funding for several programs normally included in its base budget allocation. As a result, ITA decided it was not able to fund an MDCP competition for 2006. (For more information see a recent history of ITA earmarks and a recent history of ITA's MDCP awards.)
Cause of Cancellation of 2006 Competition Was Budgetary
It is important to note that Congress did not instruct ITA to withhold funding for a 2006 MDCP competition. MDCP is recognized by U.S. industry as one of the most successful programs for helping U.S. industry to become more competitive internationally. (See, for example, pages 7-8 of Congressional testimony by the National Association of Manufactuers from April 2008.) For the amount of money invested, MDCP is the most successful federal program at generating job-creating exports through public-private partnerships. ITA decided not to fund the 2006 competition based on extreme budgetary constraints. Congress did not instruct ITA to cancel the 2006 competition. MDCP funding comes from ITA's base allocation and the ultimate funding decisions are made by ITA. Therefore, Congress would not have known that its 2006 appropriation would place ITA in a position where it would be obliged to curtail its 2006 MDCP competition.
Competiton Resumed in 2007
House Joint Resolution 20 (HJR 20) passed on February 14, 2007, resulted in funding for the Commerce Department through September 2007 at about the same level as for fiscal 2006. This continuing resolution contained none of the earmarks that had the effect of consuming ITA budget that could have otherwise funded a 2006 MDCP competition. On the other hand, HJR 20 did not cover $10 million in uncontrollable increases such as pay raises, increased space costs, and other inflationary type increases. As a result, ITA/MAS had to reduce the amount of MDCP funding available for a 2007 competition. Four awards were made totaling $576,000. Again, the reduction in the amount available for awards was made by ITA based on limited availability of funds in ITA's "base" funding. Congress gave ITA no instructions with regard to MDCP funding one way or the other.
2008 Competition Results in Four New Awards
In late September 2008, ITA selected four (4) new organizations to receive MDCP awards totaling $431,000. ITA was able to make the awards due to some unexpected economies it was able to achieve earlier in the fiscal year.
2009 Competition and Beyond
Funding of MDCP awards at or near the historical $2 m per year average resumed in fiscal year 2009.
Legislation to Increase MDCP Funding Passed in 2010 But Was Not Funded
On March 5, 2010 Senator Amy Klobuchar (D-MN) introduced the Export Promotion Act of 2010 that included $15 million in increased funding for MDCP. This bill was incorporated as an amendment into the Small Business Job Creation and Access to Capital Act of 2010. The MDCP provision was not funded by the Congress.
Other Proposed Legislation that Refers to MDCP
American Export Promotion Act of 2013
Cancelation of 2017 Competition
Due to budget constraints, ITA was obliged to cancel the 2017 MDCP competition.
Prospects for Future MDCP Competitions
As noted above, except for 1993, MDCP has not been a line item in the Commerce/ITA/I&A appropriation from Congress. So, except for 1993, ITA has held MDCP competitions only when it has deemed there to be sufficient funding available in its I&A base budget. In fact, with the exception of 2006, noted above, ITA/I&A was able to fund MDCP competitions every year from 1994 through 2016. A 2018 MDCP competition will be possible only if ITA/I&A has sufficient funding to make MDCP awards.
Projects Funded from Awards Made Prior to 2017 Continue
An MDCP award results in a long-term cooperative agreement between an MDCP award recipient, or "cooperator", and ITA. Projects generally last five to six years, including allowed extensions. While the projects last many years, the federal share of the MDCP project cost is obligated entirely from the ITA budget during the fiscal year that the MDCP award is made. (The federal share of the MDCP project cost is the amount of the MDCP award and never exceeds one third. The balance comes from the cooperator.) So the cancelation of the 2017, MDCP competition does not affect cooperators who received their awards prior to 2017. So for example, the federal share of project cost for cooperators who received their MDCP awards in fiscal 2016, is available to them through the end of fiscal 2022.
Project Activity Continues Through at Least 2022
Prior to 2010, ITA allowed project periods less than three years. At any given time during the 1990s and 2000s, there were about 20 MDCP projects active. Projects tended to last two to four years. The project periods proved to be so short that cooperators were unable to gather export results. Since that time, ITA has required a three-year minimum project period. (In practice, most projects now last five to six years.) Export reporting has increased as a result and the number of projects active at any given time is higher as well. In 2017, there are 23 active MDCP projects. In 2018, if there are no new MDCP awards made, about 20 projects will still be active. Under a scenario where no MDCP awards are made in 2019, 2020, 2021, and 2022, there would be, respectively, 18, 16, 10, and 5 MDCP projects active. (See a graphic comparison of the MDCP project workload after the 2006 and 2017 competition cancelations.)
(updated 17.09.28)
The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. This site contains PDF documents. A PDF reader is available from Adobe Systems Incorporated.