80 FR 12461 - Office of Economic Adjustment; Announcement of Federal Funding Opportunity (FFO)

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 80, Issue 45 (March 9, 2015)

This notice announces an opportunity to request funding from the Office of Economic Adjustment (OEA), a Department of Defense (DoD) field activity, for community planning assistance and economic diversification in response to major reductions or cancellations in DoD spending, including the cancellation or termination of DoD contracts or failure to proceed with a major weapon system program. Assistance may be granted if the DoD action has a direct and significant adverse effect on a community or its residents. This notice includes proposal submission requirements and instructions, eligibility, and selection criteria that will be used to evaluate proposals from eligible respondents. OEA grants to a state or local government may result from any proposal submitted under this notice, subject to the availability of appropriations.

[Federal Register Volume 80, Number 45 (Monday, March 9, 2015)]
[Notices]
[Pages 12461-12465]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05264]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Office of Economic Adjustment; Announcement of Federal Funding 
Opportunity (FFO)

AGENCY: Office of Economic Adjustment (OEA), Department of Defense 
(DoD).

ACTION: Federal funding opportunity anouncement.

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SUMMARY: This notice announces an opportunity to request funding from 
the Office of Economic Adjustment (OEA), a Department of Defense (DoD) 
field activity, for community planning assistance and economic 
diversification in response to major reductions or cancellations in DoD 
spending, including the cancellation or termination of DoD contracts or 
failure to proceed with a major weapon system program. Assistance may 
be granted if the DoD action has a direct and significant adverse 
effect on a community or its residents. This notice includes proposal 
submission requirements and instructions, eligibility, and selection 
criteria that will be used to evaluate proposals from eligible 
respondents. OEA grants to a state or local government may result from 
any proposal submitted under this notice, subject to the availability 
of appropriations.

SUPPLEMENTARY INFORMATION: 
    a. Federal Awarding Agency: Office of Economic Adjustment (OEA), 
Department of Defense (DoD).
    b. Funding Opportunity Title: Community Economic Adjustment 
Assistance for Reductions in Defense Industry Employment.
    c. Announcement Type: Modification of Previously Announced Federal 
Funding Opportunity (79 FR 28914).
    d. Catalog of Federal Domestic Assistance (CFDA) Number & Title: 
12.611, Community Economic Adjustment Assistance for Reductions in 
Defense Industry Employment.
    e. Key Dates: Proposals will be considered on a continuing basis. 
OEA will evaluate all proposal documents and requests, and provide a 
response to the respondent within 30 business days of OEA's receipt of 
a final and complete proposal.

I. Period of Funding Opportunity

    Proposals will be considered on a continuing basis, subject to the 
availability of appropriations, commencing on the date of publication 
of this notice.

II. Funding Opportunity

a. Program Description

    OEA is a DoD Field Activity authorized under 10 U.S.C. 2391 to 
provide assistance to state or local governments, and entities of state 
and local governments, including regional governmental organizations, 
to plan and carry out community adjustments and economic 
diversification activities in response to the cancellation or 
termination of a DoD contract; the failure to proceed with an approved 
major weapon system program; or the publicly announced planned major 
reduction in DoD spending. States may request assistance to enhance 
their capacity to assist adversely affected communities, businesses, 
and workers; support local adjustment and diversification initiatives; 
and stimulate cooperation between statewide and local adjustment and 
diversification efforts.
    The objectives of OEA's Defense Industry Adjustment (DIA) 
Assistance Program are to assist States and local governments to plan 
and carry out community adjustments and economic diversification 
activities in response to reductions in defense industry employment. 
Unlike base closures where surplus property can be reused as part of a 
broader program to replace lost jobs and expand the local tax base, 
OEA's support for communities impacted by factory closures and laid-off 
employees focuses on developing community adjustments and 
diversification strategies concentrating on workforce skills, 
opportunities for manufacturing investment/expansion, and adaptability 
of local plant and capital.
    These strategies usually focus on regional job creation through 
business development, attraction and expansion, workforce development, 
and community economic diversification. Additionally, during the 
planning process, OEA also coordinates with and provides information on 
other relevant federal assistance programs that can support coordinated 
economic development efforts.
    OEA is accepting proposals for grant assistance to support 
communities and regions to organize, plan, and carry out local economic 
adjustment programs. Proposals will be evaluated against the 
eligibility criteria provided in Section II, c of this notice and the 
selection criteria provided in Section E of this notice by OEA staff in 
coordination with representatives from the U.S. Department of Commerce 
and U.S. Department of Labor, as well as other Federal agencies as 
invited by OEA. OEA will notify the respondent within thirty (30) days 
of receipt of a proposal whether their proposal was successful. The 
successful proposer will then be invited to submit an application 
through OEA's eGrants system. Additional details about the review and 
selection process is provided in Section II, e of the FFO.
    The final amount of each award will be determined by OEA based upon 
a review of the final grant application, as well as comments from other 
Federal agencies, and will be subject to availability of funds.

b. Federal Award Information

    Awards under this FFO will be issued in the form of a grant 
agreement. In accordance with 31 U.S.C. 6304 a grant is defined as the 
legal instrument reflecting a relationship between the United States 
Government and a State,

[[Page 12462]]

a local government, or other recipient when: (1) The principal purpose 
of the relationship is to transfer a thing of value to the State or 
local government or other recipient to carry out a public purpose of 
support or stimulation authorized by a law of the United States instead 
of acquiring (by purchase, lease, or barter) property or services for 
the direct benefit or use of the United States Government; and (2) 
Substantial involvement is not expected between the executive agency 
and the State, local government, or other recipient when carrying out 
the activity contemplated in the agreement.

c. Eligibility Information

    Awards resulting from this FFO are based on eligibility and the 
responsiveness of proposals to local needs. Therefore, an eligibility 
determination by OEA is required prior to submission of a proposal.
i. Eligible Respondents
    Eligible respondents are states, counties, municipalities, other 
political subdivisions of a state; special purpose units of a state or 
local government; other instrumentalities of a state or local 
government; and tribal nations. If multiple sub-state jurisdictions for 
the same affected region respond to the same event, only one proposal 
will be considered.
    A proposal must respond to: A publicly announced planned major 
reduction in DoD spending; the cancellation or termination of a DoD 
contract; or the failure to proceed with an approved major weapons 
system program.
    This DoD action must result in the loss of: 2,500 or more employee 
positions in the case of a Metropolitan Statistical Area (MSA); 1,000 
or more employee positions if the labor market area is outside of a 
MSA; or one percent of the total number of civilian jobs in the local 
labor market for the impacted area. For the purposes of demonstrating 
eligibility, only direct (i.e., prime and supply-chain) job loss may be 
counted. Respondents may document a cumulative job loss over the span 
of not more than three consecutive years (e.g., two years prior to 
proposal and one year forward, or three years prior). Induced job loss 
may not be considered as a factor in demonstrating eligibility. The 
respondent must also explain how this job loss will cause direct and 
significant adverse effects to the community or residents in the area.
    Respondents are strongly advised to review the Program Information 
stated for CFDA Number 12.611 on http://www.cfda.gov, prior to 
preparing and/or submitting a proposal.
ii. Cost Sharing or Matching
    Cost sharing is required. A minimum of ten percent (10%) of the 
project's total proposed funding is to be comprised of non-Federal 
sources.
iii. Other Eligibility Information
    Funding will be awarded to only one governmental entity on behalf 
of a region, therefore applications on the behalf of a multi-
jurisdictional region should demonstrate a significant level of 
cooperation in their proposal.
    Proposed activities for grants under this program should not 
duplicate nor replicate activities otherwise eligible for or funded 
through other Federal programs. Respondents are encouraged to submit 
proposals that demonstrate appropriate leverage of all public and 
private resources and programs, such as:
    (a) U.S. Department of Commerce's Manufacturing Extension 
Partnership (MEP) Program for provision of relevant assistance to the 
region's manufacturers that operate as part of affected Defense supply 
chains; and state, regional, and local economic development 
organizations which often work with the U.S. Department of Commerce's 
Economic Development Administration (EDA);
    (b) Small Business Development Centers as well as local Small 
Business Administration District offices; and
    (c) U.S. Department of Labor's (DOL) Employment and Training 
Administration (ETA) grantees, including local Workforce Investment 
Boards and/or American Job Centers.
    Funds provided under this program may not be used to assist a 
business, including a business expansion, in the relocation of a plant, 
facility, or operation from one Labor Market Area (LMA) to another if 
the relocation is likely to result in the loss of jobs in the LMA from 
which the relocation occurs.

d. Proposal and Submission Information

i. Submission of a Proposal
    Proposals should be submitted by contacting OEA via email at 
[email protected] with a courtesy copy to 
[email protected]. Include ``Proposal for Defense Industry 
Community Adjustment Assistance'' on the subject line of the message 
and request delivery/read confirmation to ensure receipt.
    Proposals may also be mailed or hand-delivered to: Director, Office 
of Economic Adjustment, 2231 Crystal Drive, Suite 520, Arlington, VA 
22202-3711.
ii. Content and Form of Proposal Submission
    A proposal from a state respondent must demonstrate how the 
proposed grant would support adversely affected communities, 
businesses, and workers; support local adjustment and diversification 
initiatives or planning for such initiatives; and stimulate cooperation 
between statewide and local adjustment and diversification efforts. The 
proposal should also explain efforts to provide business planning and 
market exploration services to defense contractors and subcontractors 
seeking modernization or diversification assistance as well as any 
training, counseling, and placement services to dislocated defense 
workers.
    Eligible proposals from respondents other than states must be 
designed to allow an affected region to: (1) Organize itself to 
represent and respond on behalf of affected communities, workers, and 
businesses; (2) plan local community and economic adjustment activities 
to assist affected communities, workers, and businesses; and (3) carry-
out plans to effectively respond to the defense impacts and stabilize 
the local economy. Respondents must specifically demonstrate how the 
proposed project will replace lost jobs, improve the resiliency of 
affected defense manufacturers, and assist displaced workers in order 
to stabilize the local economy.
    Eligible activities may include (but are not limited to): Staffing, 
operating, and administrative costs for an organization; outreach to 
businesses, workers, and other community interests; regional supply-
chain mapping of defense-specific industry clusters; asset mapping to 
support a response; economic data collection and analysis to identify 
regional comparative advantages; preparation of diversification plans 
to lessen economic dependency on defense expenditures; facilitation of 
workforce adjustment and retraining efforts; provision of business 
planning and market exploration services for defense contractors and 
sub-contractors that seek modernization or diversification assistance; 
and preliminary strategies and plans for the potential reuse or 
redevelopment of existing defense facilities.
    Proposals will be accepted as received on a continuing basis 
commencing on the date of this publication and processed when deemed to 
be a final, complete proposal. Each proposal shall consist of no more 
than fifteen (15) single-sided pages exclusive of cover sheet and/or 
transmittal letter, and must

[[Page 12463]]

include the following information at a minimum:
    (a) Point of Contact: Name, Title, phone number, email address, and 
organization address of the respondent's primary point of contact;
    (b) Defense Action/Impact: A description of the publicly announced 
planned major reduction in DoD spending; the cancellation or 
termination of a DoD contract; or the failure to proceed with an 
approved major weapon system program. Also include documentation of the 
known or anticipated job loss; the average unemployment rate over the 
past year; the current unemployment rate; and other factors indicating 
community impact and need;
    (c) Project Description: A description of the proposed project, 
specifically:
    (i) How the project relates to OEA's statutory authority under 10 
U.S.C. 2391, OEA's goals, and the goals of the DIA Program;
    (ii) how the project addresses the impacts of Defense actions on 
communities, workers, and businesses;
    (iii) how the project will capitalize on existing strengths (e.g. 
infrastructure, institutions, capital, etc.) within the affected area; 
and
    (iv) how the project would be integrated with existing/ongoing 
economic development efforts.
    (d) Project Parties: A description of the local partner 
organizations/jurisdictions, and their roles and responsibilities, that 
will carry out the proposed project. Letters of support may be included 
as attachments and will not count against the fifteen-page limit;
    (e) Grant Funds and Other Sources of Funds: A summary of local 
needs, including need for Federal funding; an overview of all State and 
local funding sources, including the funds requested under this notice; 
financial commitments for other Federal and non-Federal funds needed to 
undertake the project, to include acknowledgment of the requirement to 
provide a minimum of ten percent (10%) of the funding from non-Federal 
sources; a description of any other Federal funding for which the 
respondent has applied, or intends to apply to support this effort; and 
a statement detailing how the proposal is not duplicative of other 
available Federal funding;
    (f) Project Schedule: A sufficiently detailed project schedule, 
including milestones;
    (g) Performance Metrics: A description of metrics to be tracked and 
evaluated over the course of the project to gauge performance of the 
project;
    (h) Grants Management: Evidence of the respondent's ability and 
authority to manage grant funds;
    (i) Submitting Official: Documentation that the Submitting Official 
is authorized by the respondent to submit a proposal and subsequently 
apply for assistance.
    The proposal should be emailed to the account stated in Section II, 
d. These papers should be submitted in Microsoft Word or Adobe Acrobat 
PDF. OEA reserves the right to ask any respondent to supplement the 
information in its proposal, but expects the proposal to be complete 
upon submission. To the extent practicable, OEA encourages respondents 
to provide data and evidence of all project merits in a form that is 
publicly available and verifiable.
iii. Unique Entity Identifier and System for Award Management (SAM)
    Each respondent (unless the respondent is excepted from those 
requirements under 2 CFR 25.110(b) or (c), or has an exception approved 
by the Federal awarding agency (OEA) under 2 CFR 25.110(d)) is required 
to: (a) Provide a valid Dun and Bradstreet Universal Numbering System 
(DUNS) number; (b) be registered in the System for Award Management 
System (SAM) before submitting its application; and (c) continue to 
maintain an active SAM registration with current information at all 
times during which it has an active Federal award or an application or 
plan under consideration by a Federal awarding agency. OEA may not make 
a Federal award to an respondent until the respondent has complied with 
all applicable unique entity identifier and SAM requirements and, if a 
respondent has not fully complied with the requirements by the time OEA 
is ready to issue a Federal award, OEA may determine that the 
respondent is not qualified to receive a Federal award.
iv. Submission Dates and Times
    Proposals will be considered on a continuing basis, subject to 
available appropriations, commencing on the date of publication of this 
notice. The end date for this program has not yet been determined. OEA 
will evaluate all proposals and provide a response to each respondent 
via email within 30 business days of OEA's receipt of a final, complete 
grant proposal.
v. Funding Restrictions
    The following are unallowable activities under this grant program:
     Construction;
     Marketing efforts or any other assistance that would 
result in the relocation of a plant, facility, or operation from one 
Labor Market Area (LMA) to another if the relocation is likely to 
result in the loss of jobs in the LMA from which the relocation occurs;
     Individual training for displaced workers; and
     International travel.
    OEA reserves the right to decline to fund pre-Federal award costs. 
Final awards may include pre-Federal award costs at the discretion of 
OEA; however, this must be specifically requested in the grantee's 
final application.
vi. Other Submission Requirements
    All respondents will submit all proposal materials electronically 
as an emailed attachment in Microsoft Word or Adobe Acrobat PDF format.

e. Application Review Information

i. Selection Criteria
    Upon validating respondent eligibility, to include job loss numbers 
and whether there is a direct and significant adverse impact as a 
result of the job loss on the area, OEA will consider each of the 
following equally-balanced factors as a basis to invite formal grant 
applications:
    (a) An appropriate and clear project design to address the need, 
problem, or issue identified;
    (b) Evidence of an holistic approach to the problem that leverages 
education, the workforce system, businesses, higher education, economic 
development, and other relevant assets at local, state, regional, and 
Federal levels;
    (c) The innovative quality of the proposed approach to economic 
adjustment or economic diversification; and
    (d) A reasonable proposed budget with a non-Federal match 
commitment and schedule for completion of the work program specified.
ii. Review and Selection Process
    All proposals will be reviewed on their individual merit by a panel 
of OEA staff, all of whom are Federal employees. OEA will also seek the 
input of other Federal agencies with relevant expertise (e.g., U.S. 
Department of Labor, U.S. Department of Commerce, and the Small 
Business Administration) in the evaluation of proposals. OEA will 
notify the respondent within thirty (30) days of receipt of a proposal 
whether their proposal was successful. The successful respondent will 
then be instructed to submit an application through OEA's grants 
management system, eGrants. OEA will assign a Project Manager to advise 
and assist successful respondents in the

[[Page 12464]]

preparation of the application. Grant applications will be reviewed for 
their completeness and accuracy and a grant award notification will be 
issued, to the extent possible, within seven (7) business days from its 
receipt.
    Unsuccessful respondents will be notified that their proposal was 
not selected for further action and funding, and may request a 
debriefing on their submitted proposal. When applicable, OEA may 
include information about other applicable federal grant programs in 
this communication. Requests for debriefing must be submitted in 
writing within 3 calendar days of notification of an unsuccessful 
proposal.
    OEA is committed to conducting a transparent financial assistance 
award process and publicizing information about funding decisions. 
Respondents are advised that their respective applications and 
information related to their review and evaluation may be shared 
publicly. Any proprietary information must be identified as such in the 
proposal and application. In the event of a grant award, information 
about project progress and related results may also be made publicly 
available.

f. Federal Award Administration Information

i. Federal Award Notices
    In the event a grant is ultimately awarded, the successful 
respondent (Grantee) will receive a notice of award in the form of a 
Grant Agreement, signed by the Director, OEA (Grantor), on behalf of 
DoD. The Grant Agreement will be transmitted electronically or, if 
necessary, by U.S. Mail.
ii. Administrative and National Policy Requirements
    Any grant awarded under this program will be governed by the 
provisions of the OMB circulars applicable to financial assistance and 
DoD's implementing regulations in place at the time of the award. A 
Grantee receiving funds under this opportunity and any consultant or 
pass-thru entity operating under the terms of a grant shall comply with 
all Federal, State, and local laws applicable to its activities. 
Federal regulations that will apply to an OEA grant include 
administrative requirements and provisions governing allowable costs as 
stated in:
     2 CFR part 200, ``Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards'';
     2 CFR part 1103, ``Interim Grants and Cooperative 
Agreements Implementation of Guidance in 2 CFR part 200, ``Uniform 
Administrative Requirements, Cost Principles, And Audit Requirements 
for Federal Awards'';
     2 CFR part 25, ``Universal Identifier and System for Award 
Management'';
     2 CFR part 170, ``Reporting Subaward and Executive 
Compensation Information'';
     2 CFR part 180, OMB Guidelines to Agencies on Government-
wide Debarment and Suspension (Nonprocurement), as implemented by DoD 
in 2 CFR part 1125, Department of Defense Nonprocurement Debarment and 
Suspension; and
     32 CFR part 28, ``New Restrictions on Lobbying''.
iii. Reporting
    OEA requires periodic performance reports, an interim financial 
report for each 12 months a grant is active, and one final performance 
report for any grant. The performance reports will contain information 
on the following:
    (a) A comparison of actual accomplishments to the objectives 
established for the period;
    (b) reasons for slippage if established objectives were not met;
    (c) additional pertinent information when appropriate;
    (d) a comparison of actual and projected quarterly expenditures in 
the grant; and,
    (e) the amount of Federal cash on hand at the beginning and end of 
the reporting period.
    The final performance report must contain a summary of activities 
for the entire grant period. All required deliverables should be 
submitted with the final performance report.
    The final SF 425, ``Federal Financial Report,'' must be submitted 
to OEA within 90 days after the end of the grant.
    Any grant funds actually advanced and not needed for grant purposes 
shall be returned immediately to OEA. Upon award, OEA will provide a 
schedule for reporting periods and report due dates in the Grant 
Agreement.

III. Federal Awarding Agency Contacts

    For further information, to answer questions, or for help with 
problems, contact: Mr. Michael Gilroy, Program Director, Defense 
Industry Adjustment, Office of Economic Adjustment, 2231 Crystal Drive, 
Suite 520, Arlington, VA 22202-3711. Office: (703) 697-2081. Email: 
[email protected].
    The OEA homepage address is: http://www.oea.gov.

f. Other Information

a. Grant Award Determination
    Selection of an organization under this FFO does not constitute 
approval of a grant for the proposed project as submitted. Before any 
funds are awarded, OEA may enter into negotiations about such items as 
program components, staffing and funding levels, and administrative 
systems in place to support implementation of the award. The amount of 
available funding may require the final award amount to be less than 
that originally requested by the respondent. If the negotiations do not 
result in a mutually acceptable submission, OEA reserves the right to 
terminate the negotiations and decline to fund an application. OEA 
further reserves the right not to fund any proposal received under this 
FFO.
    In the event OEA approves an amount that is less than the amount 
requested, the respondent will be required to modify its grant 
application to conform to the reduced amount before execution of the 
grant agreement. OEA reserves the right to reduce or withdraw the award 
if acceptable modifications are not submitted by the respondent within 
15 working days from the date the request for modification is made. Any 
modifications must be within the scope of the original application and 
approved by both the Grantee and OEA. OEA reserves the right to cancel 
any award for non-performance.
b. No Obligation for Future Funding
    Amendment or renewal of an award to increase funding or to extend 
the period of performance is at the discretion of OEA. If a respondent 
is awarded funding under this FFO, no other federal agencies (e.g. the 
U.S. Department of Commerce, National Institute of Standards and 
Technology, U.S. Department of Labor, or the U.S. Small Business 
Administration) are under any obligation to provide any additional 
future funding in connection with that award or to make any future 
award(s).
c. Intellectual Property Rights
    In the event of a grant award, the Grantee may copyright any work 
that is subject to copyright and was developed, or for which ownership 
was purchased, under an award. The Federal awarding agencies reserve a 
royalty-free, nonexclusive and irrevocable right to reproduce, publish, 
or otherwise use the work for Federal purposes, and to authorize others 
to do so. Such uses include, but are not limited to, the right to 
modify and distribute such products

[[Page 12465]]

worldwide by any means, electronically or otherwise. The Grantee may 
not use Federal funds to pay any royalty or license fee for use of a 
copyrighted work, or the cost of acquiring by purchase a copyright in a 
work, where the Department has a license or rights of free use in such 
work. If revenues are generated through selling products developed with 
grant funds, including intellectual property, these revenues are 
program income and shall be added to the grant and must be expended for 
allowable grant activities.

    Dated: March 3, 2015.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2015-05264 Filed 3-6-15; 8:45 am]
 BILLING CODE 5001-06-P