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REIC Expected Deliverables

The cooperative agreement proposal must address specifically, and in detail sufficient to assess the effectiveness of proposed work, how the following deliverables will be provided:

1. An analysis of how and the extent to which cooperatives facilitate the creation and retention of wealth within the local communities they serve. The analysis should include the identification of cooperative models and practices that could enhance cooperative contribution to local wealth creation. An estimate of cooperative wealth creation should be made for the U.S. and for each of the following four categories or classes of cooperatives:
   
   
   • Commercial sales or marketing - includes farm supply and marketing, grocery and consumer goods, business-to-business, the emerging ethanol and biofuels related industry, and manufacturing.
   • Social and public services - includes housing, health care, day care/elder care, transportation, and educational services.
   • Financial services – includes credit unions, banks, and mutual insurance.
   • Utilities – includes electric, telephone, water, waste, and other regulated utilities.
   
   
2. An analysis of the total returns to investment in cooperatives, including returns to the cooperative businesses at the enterprise level as well as the impact of cooperative returns and services to the cooperatives' members at their enterprise levels. Total returns to investment should be analyzed using the same classification scheme as describe in Deliverable 1 above.
   
   
3. Development of sound methodologies to utilize available and newly-generated data to identify and measure the economic impacts of cooperatives as to the following:
   
   
   • Local and regional significance and impact analysis using appropriate input-output, social accounting matrix, and multiplier tools;
   • Differential economic impacts of cooperatives as compared to other types of organizations performing the same general functions, including but not limited to (a) the differential impacts of local ownership versus ownership from outside the region and (b) any special economic impacts generated by the patron-oriented characteristics of cooperative businesses;
   • Whether a non-cooperative business enterprise would exist in the local or regional economy if the cooperative did not exist;
   • Displacement or replacement of other businesses by cooperatives;
   • Departure of a cooperative including a cooperative’s replacement by another type of business; and
   • Impact on local, regional, and national tax generation and on infrastructure.
   
   
4. Because output of the FY 2006 research will likely not be available before January 2009, USDA Rural Development will arrange for the winner of this competition to obtain updates and preliminary data from the University of Wisconsin, the FY 2006 and FY 2007 award recipient, as progress is being made on the FY 2006 and FY 2007 research. Data available to the FY 2008 award recipient will include:
   
   
   • number and headquarters location of cooperatives,
   • volume measures appropriate for each sector (revenues, dollar value, and other appropriate size indicators),
   • number of persons impacted by the cooperative (members, patrons, or investors), and
   • number of full-time equivalent jobs and other economic impact variables.
   • Cooperative data will be identified using the North American Industry Classification System (NAICS).
   
   
5. Economic impact analyses as described in deliverables 3 and 4 above to be conducted on a sector basis. Sectors to be analyzed include:
   
   
   • housing,
   • health care,
   • daycare/elder care,
   • financial services,
   • grocery/consumer retail,
   • business-to-business (wholesaling, manufacturing),
   • agricultural marketing (including organic and conventional),
   • agricultural supplies and services,
   • public services (including transportation and education),
   • renewable energy, and
   • utilities.
   
   
6. The population of a database for individual cooperative and summary data collected and additional data generated as necessary to obtain economic impacts as described in deliverables 3 and 4 above. The database is to be delivered to USDA Rural Development. USDA Rural Development will work with the grantee to integrate data from this deliverable into existing database applications.
   
   
7. The performance of subcontracting services, oversight, and financial controls for the overall project.
   
   
8. The submission of quarterly progress reports and quarterly financial reports to USDA Rural Development; and
   
   
9. The preparation and submission of publishable quality written reports for Deliverables 1 through 5 to USDA Rural Development.
   

USDA Rural Development will competitively award one cooperative agreement to fund the collection and analysis of data to determine the national economic impact of cooperatives. An institution of higher education may subcontract or collaborate with others on the research and data collection. A formal consortium of academic institutions is allowed.