81 FR 569 - Funding Availability for Small Shipyard Grant Program; Application Deadline

DEPARTMENT OF TRANSPORTATION
Maritime Administration

Federal Register Volume 81, Issue 3 (January 6, 2016)

Under the Small Shipyard Grant Program, there is currently $4,900,000 available for grants for capital and related improvements to qualified shipyard facilities that will be effective in fostering efficiency, competitive operations, and quality ship construction, repair, and reconfiguration. This notice announces the intention of the Maritime Administration to provide grants to small shipyards. Catalog of Federal Domestic Assistance Number: 20.814. Potential applicants are advised that it is expected, based on past experience, that the number of applications will far exceed the funds available and that only a small percentage of applications will be funded. It is anticipated that about 5-10 applications will be selected for funding with an average grant amount of about $1 million.

[Federal Register Volume 81, Number 3 (Wednesday, January 6, 2016)]
[Notices]
[Pages 569-572]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-33315]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Funding Availability for Small Shipyard Grant Program; 
Application Deadline

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of funding availability.

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SUMMARY: Under the Small Shipyard Grant Program, there is currently 
$4,900,000 available for grants for capital and related improvements to 
qualified shipyard facilities that will be effective in fostering 
efficiency, competitive operations, and quality ship construction, 
repair, and reconfiguration. This notice announces the intention of the 
Maritime Administration to provide grants to small shipyards. Catalog 
of Federal Domestic Assistance Number: 20.814. Potential applicants are 
advised that it is expected, based on past experience, that the number 
of applications will far exceed the funds available and that only a 
small percentage of applications will be funded. It is anticipated that 
about 5-10 applications will be selected for funding with an average 
grant amount of about $1 million.

DATES: The period for submitting grant applications commenced with the 
enactment of the Consolidated Appropriations Act, 2016, on December 18, 
2015. Applications must be received by the Maritime Administration by 5 
p.m. EST on February 16, 2016. Applications received later than this 
time will not be considered. The Maritime Administration intends to 
award grants no later than April 18, 2016.

ADDRESSES: Grant Applications should be sent to the Associate 
Administrator for Business and Finance Development, Room W21-318, 
Maritime Administration, 1200 New Jersey Avenue SE., Washington, DC 
20590. Only applicants who comply with all submission requirements 
described in this Notice will be eligible for award.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this notice, please contact David M. Heller, Director, Office of 
Shipyards and Marine Engineering, Maritime Administration, Room W21-
318,1200 New Jersey Ave. SE., Washington, DC 20590; phone: (202) 366-
5737; or fax: (202) 366-6988.

SUPPLEMENTARY INFORMATION: Grants under the Maritime Administration's 
Small Shipyard Grant Program may not be used to construct buildings or 
other physical facilities or to acquire land unless such use is 
specifically approved by the Maritime Administration as being 
consistent with, and supplemental to, capital and related 
infrastructure improvements. Grant funds may also be used for maritime 
training programs to foster technical skills and operational 
productivity in communities, the economies of which are related to or 
dependent upon the maritime industry. Grants for such training programs 
may only be awarded to ``Eligible Applicants'' as described below, but 
training programs can be established through vendors to such 
applicants.

Table of Contents

A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review
F. Federal Award Administration
G. Federal Awarding Agency Contacts
H. Other Information

A. Program Description

    The Small Shipyard Grant program was established under Section 
3508(a) of the Duncan Hunter National Defense Authorization Act for 
Fiscal Year 2009 (Pub. L. 110-417), codified at 46 U.S.C. 54101. The 
statute authorizes the Maritime Administrator to provide assistance in 
the form of grants to make capital and related improvements in small 
shipyards located in or near maritime communities and to provide 
training for workers in communities whose economies are related to the 
maritime industry. The Consolidated Appropriations Act, 2016, 
appropriated $5,000,000 to the Small Shipyard Grant program to include 
administrative expenses. The purpose of the program is to foster 
efficiency, competitive operations, and quality ship construction, 
repair, and reconfiguration in small shipyards across the United 
States. The program also seeks to foster projects that would be 
effective in fostering employee skills and enhancing productivity in 
communities whose economies are related to or dependent upon the 
maritime industry.

B. Federal Award Information

    Under the Small Shipyard Grant program, there is currently 
$4,900,000 available for grants for capital and related improvements to 
qualified shipyard facilities that will be effective in fostering 
efficiency, competitive operations, and quality ship construction, 
repair, and reconfiguration and for training projects that would be 
effective in fostering employee skills and enhancing productivity. The 
Maritime Administration intends to award the full amount of the 
available

[[Page 570]]

funding through grants to the extent that there are worthy 
applications. No more than 25 percent of the funds available will be 
awarded to shipyard facilities in one geographic location that have 
more than 600 production employees. The Maritime Administration will 
seek to obtain the maximum benefit from the available funding by 
awarding grants to as many of the most worthy projects as possible. The 
Maritime Administration may partially fund applications by selecting 
parts of the total project. The start date and period of performance 
for each award will depend on the specific project and must be agreed 
to by the Maritime Administration.

C. Eligibility Information

    To be selected for a Small Shipyard Grant, an applicant must be an 
Eligible Applicant and the project must be an Eligible Project.

1. Eligible Applicants

    Section 54101, Title 46, United States Code, provides that 
shipyards can apply for grants. The shipyard facility for which a grant 
is sought must be in a single geographical location, located in or near 
a maritime community, and may not have more than 1200 production 
employees. The applicant must be the operating company of the shipyard 
facility. The shipyard facility must construct, repair, or reconfigure 
vessels 40 feet in length or greater for commercial or government use, 
or construct, repair, or reconfigure vessels 100 feet in length or 
greater for non-commercial vessels.

2. Cost Sharing or Matching

    The Federal funds for any eligible project will not exceed 75 
percent of the total cost of such project. The remaining portion of the 
cost shall be paid in funds from or on behalf of the recipient. The 
applicant is required to submit detailed financial statements and 
supporting documentation demonstrating how and when such matching 
requirement is proposed to be funded as described below. The 
recipient's entire matching requirement must be paid prior to payment 
of any Federal funds for the project. However, for good cause shown, 
the Maritime Administrator may waive the matching requirement in whole 
or in part, if the Administrator determines that a proposed project 
merits support and cannot be undertaken without a higher percentage of 
Federal financial assistance.

3. Eligible Projects

    Eligible projects include: (1) Capital and related improvement 
projects that will be effective in fostering efficiency, competitive 
operations, and quality ship construction, repair, and reconfiguration; 
and (2) training projects that will be effective in fostering employee 
skills and enhancing productivity. For capital improvement projects, 
all items proposed for funding must be new and to be owned by the 
applicant. For both capital improvement and training projects, all 
project costs, including the recipient's share, must be incurred after 
the date of the grant agreement.

D. Application and Submission Information

1. Address for Application

    Applications must be filed on standard form SF-424, which is 
available on the Maritime Administration's Web site at 
www.marad.dot.gov.

2. Content and Form of Application Submission

    Although the form is available electronically, the application must 
be filed in hard copy as indicated below due to the amount of 
information requested. Applicants must submit an original paper copy of 
the application, one additional paper copy of the application, and two 
CDs each containing a complete electronic version of the application in 
PDF format to: Associate Administrator for Business and Finance 
Development, Room W21-318, Maritime Administration, 1200 New Jersey 
Ave. SE., Washington, DC 20590. A shipyard facility in a single 
geographic location applying for multiple projects must do so in a 
single application. The application for a grant must include all of the 
following information as an addendum to form SF-424. The information 
should be organized in sections as described below:
    Section 1: A description of the shipyard including (a) Location of 
the shipyard; (b) a description of the shipyard facilities; (c) years 
in operation; (d) ownership; (e) customer base; (f) current order book 
including type of work; (g) vessels delivered (or major projects) over 
last 5 years; and (h) Web site address, if any.
    Section 2: For each project proposed for funding the following must 
be included:
    (a) A comprehensive detailed description of the project, including 
a statement of whether the project will replace existing equipment, and 
if so, the disposition of the replaced equipment.
    (b) A description of the need for the project in relation to 
shipyard operations and business plan and an explanation of how the 
project will fulfill this need.
    (c) A quantitative analysis demonstrating how the project will be 
effective in fostering efficiency, competitive operations, and quality 
ship construction, repair, or reconfiguration (for capital improvement 
projects) or how the project will be effective in fostering employee 
skills and enhancing productivity (for training projects). The analysis 
should quantify the benefits of the projects in terms of man-hours 
saved, dollars saved, percentages, or other meaningful metrics. The 
methodology of the analysis should be explained with assumptions used 
identified and justified.
    (d) A detailed methodology and timeline for implementing the 
project.
    (e) A detailed itemization of the cost of the project together with 
supporting documentation, including current vendor quotes and estimates 
of installation costs.
    (f) A statement explaining if any elements of the project require 
action under the National Environmental Policy Act (42 U.S.C. 4321, et 
seq.) or require any licenses or permits.
    (g) A statement describing whether the project will be located in, 
or will affect, a floodplain. If so, the statement should explain 
whether a practicable alternate siting location exists which would not 
be located in, or affect, the floodplain. If alternate siting locations 
for the project are not practicable, the statement should describe the 
factors that prevent alternate siting and identify, as appropriate, 
ways in which the project may be modified to mitigate the long- and 
short-term adverse impacts associated with the occupancy and 
modification of a floodplain or the direct or indirect support of 
floodplain development.
    Items 2(a) thru 2(g) should be repeated, in order, for each 
separate project included in the application.
    Section 3: A table with a prioritized list of projects and total 
cost and Government portion (in dollars) for each.
    Section 4: A description of any existing programs or arrangements, 
if any, which will be used to supplement or leverage the federal grant 
assistance.
    Section 5: Special economic circumstances and conditions, if any, 
of the maritime community in which the shipyard is located (beyond that 
which is reflected in the unemployment rate of the county in which the 
shipyard is located and whether that county is in an economically 
distressed area, as defined by 42 U.S.C. 3161).

[[Page 571]]

    Section 6: Shipyard company officer's certification of each of the 
following requirements:
    (a) That the shipyard facility for which a grant is sought is 
located in a single geographical location in or near a maritime 
community and (i) the shipyard facility has no more than 600 production 
employees, or (ii) the shipyard facility has more than 600 production 
employees, but less than 1200 production employees (the shipyard 
officer must certify to one or the other of (i) or (ii));
    (b) That the applicant has the authority to carry out the proposed 
project; and
    (c) In accordance with the Department of Transportation's 
regulation restricting lobbying, 49 CFR part 20, that the applicant has 
not, and will not, make any prohibited payments out of the requested 
grant. Certifications are not required to be notarized.
    Section 7: Unique identifier of shipyard's parent company (when 
applicable): Data Universal Numbering System (DUNS + 4 number) (when 
applicable).
    Section 8: The most recent year-end audited, reviewed or compiled 
financial statements, prepared by a certified public accountant (CPA), 
according to U.S. generally accepted accounting principles (not tax-
based accounting financial statements). If CPA prepared financial 
statements are not available, provide the most recent financial 
statement for the entity. Do not provide tax returns.
    Section 9: Statement regarding the relationship between applicants 
and any parents, subsidiaries or affiliates, if any such entity is 
going to provide a portion of the match.
    Section 10: Evidence documenting applicant's ability to make 
proposed matching requirement (loan agreement, commitment from 
investors, cash on balance sheet, etc.) and in the times outlined in 
2(d) above.
    Section 11: Pro-forma financial statements reflecting (a) financial 
condition period; (b) effect on balance sheet of grant and matching 
funds (i.e. a decrease in cash or increase in debt, additional equity 
and an increase in fixed assets); and (c) impact on company's projected 
financial condition (balance sheet) of completion of project, showing 
that company will have sufficient financial resources to remain in 
business.
    Section 12: Statement whether during the past five years, the 
applicant or any predecessor or related company has been in bankruptcy 
or in reorganization under Chapter 11 of the Bankruptcy Code, or in any 
insolvency or reorganization proceedings, and whether any substantial 
property of the applicant or any predecessor or related company has 
been acquired in any such proceeding or has been subject to foreclosure 
or receivership during such period. If so, give details.
    Additional information may be requested as deemed necessary by the 
Maritime Administration in order to facilitate and complete its review 
of the application. If such information is not provided, the Maritime 
Administration may deem the application incomplete and cease processing 
it.

3. Unique Entity Identifier and System for Award Management (SAM)

    The Maritime Administration may not make a Small Shipyard Grant 
Award to an applicant until the applicant has complied with all 
applicable unique entity identifier and SAM requirements. Each 
applicant must be registered in SAM before submitting its application, 
provide a valid unique entity identifier number in its application, and 
maintain an active SAM registration with current information throughout 
the period of the award. Applicants may register with the SAM at 
www.SAM.gov. If an applicant has not fully complied with the 
requirements by the submission deadline, the application will not be 
considered.

4. Submission Dates and Times

    The period for submitting grant applications commenced with the 
enactment of the Consolidated Appropriations Act, 2016, on December 18, 
2015. Applications must be received by the Maritime Administration by 5 
p.m. EST on February 16, 2016. Applications received later than this 
time will not be considered. The Maritime Administration encourages 
applicants to submit applications using a carrier and method that will 
provide proof and time of delivery. The Maritime Administration intends 
to award grants no later than April 18, 2016.

5. Funding Restrictions

    Grants under the Maritime Administration's Small Shipyard Grants 
Program may not be used to construct buildings or other physical 
facilities or to acquire land unless such use is specifically approved 
by the Maritime Administration as being consistent with, and 
supplemental to, capital and related infrastructure improvements.

6. Other Submission Requirements

    Applicants must submit an original paper copy of the application, 
one additional paper copy of the application, and two compact discs 
(CDs) each containing a complete electronic version of the application 
in PDF format to: Associate Administrator for Business and Finance 
Development, Room W21-318, Maritime Administration, 1200 New Jersey 
Ave. SE., Washington, DC 20590.

E. Application Review

1. Selection Criteria

    This section specifies the criteria that Maritime Administration 
will use to evaluate and award applications for Small Shipyard grants. 
The criteria incorporate the statutory eligibility requirements for 
this program, which are specified in this notice as relevant. There are 
two categories of selection criteria, ``Primary Selection Criteria'' 
and ``Secondary Selection Criteria.'' Within each relevant selection 
criteria, applicants are encouraged to present in measurable terms how 
the Small Shipyard Grant will lead to transformative change(s) in their 
maritime community.
    i. Primary Selection Criteria--Consistent with the requirements of 
46 U.S.C. 54101(b)(1), the Maritime Administration will evaluate the 
applications on the basis of how effective the project will be in 
fostering efficiency, competitive operations, and quality ship 
construction, repair, and reconfiguration (for capital improvement 
projects) or how effective the project will be in fostering employee 
skills and enhancing productivity (for training projects).
    ii. Secondary Selection Criteria:
    (a) Project Need: The overall need for the project in relation to 
shipyard operations and business plans, with emphasis on projects that 
impact existing operations and/or product lines rather than expanding 
the capabilities of the applicant into new capabilities or product 
lines.
    (b) Timing: Project commencement timing and the amount of time 
required for completion.
    (c) Environmental Impact: Whether any project elements require 
action under the National Environmental Policy Act (42 U.S.C. 4321, et 
seq.), including those requiring waterside improvements.
    (d) Cost Sharing: State, local, or private fiscal contribution 
toward the project as compared to the overall Federal share of project 
costs and the existence of any existing programs or arrangements that 
may be available to leverage the Federal share.
    (e) Demonstrated Financial Capability: Evidence of the applicant's 
economic ability to meet its stated share of project costs.

[[Page 572]]

    (f) County Economics: The unemployment rate of the county in which 
the applicant is located, and whether that county is an economically-
distressed area.
    (g) Special Economic Circumstances: Special economic circumstances 
and conditions of the maritime community in which the shipyard is 
located.
    (h) Geography: The desire for geographic diversity in grant 
recipients.

2. Review and Selection Process

    The Maritime Administration reviews all eligible applications 
received before the deadline. The Small Shipyard Grant review and 
selection process consists of three phases: Technical Review, Senior 
Review, and Final Selection. In the technical review phase, a Review 
Panel made up of technical experts, including naval architects and 
engineers from the Maritime Administration's Office of Shipyards and 
Marine Engineering will review all timely applications. Additional 
input may be provided to the Review Panel on economic issues by the 
Office of Financial Approvals, on environmental issues by the Office of 
Environment, and on legal issues by the Office of Chief Counsel. The 
Review Panel will assign a rating of ``Highly Recommended,'' 
``Recommended,'' or ``Not Recommended'' based on how well the 
applications align with the selection criteria.
    In the second review phase, the Senior Review Team, which is led by 
the Maritime Administrator, will consider all applications that were 
rated as Recommended or Highly Recommended, based upon the input of the 
Review Panel. The Senior Review Team will determine which projects to 
advance to Secretary as Highly Rated. In the third phase, the Secretary 
selects from the Highly Rated projects for final award.

F. Federal Award Administration

1. Federal Award Notices

    Following the evaluation outlined in Section E, the Maritime 
Administration will announce awarded projects by posting a list of 
selected projects at www.marad.dot.gov/ships-and-shipping/small-shipyard-grants. Following the announcement, the Maritime 
Administration will contact the point of contact listed in the SF-424 
to initiate development of the grant agreement.

2. Administrative and National Policy Requirements

    All awards must be administered pursuant to the Uniform 
Administrative Requirements, Cost Principles and Audit Requirements for 
Federal Awards found in 2 CFR part 200, as adopted by the Department of 
Transportation at 2 CFR part 1201. Additionally, applicable Federal 
laws, rules, and regulations of the Maritime Administration will apply 
to the projects that receive Small Shipyard Grant Awards.
    Federal wage rate requirements included in Subchapter IV of Chapter 
31 of Title 40, United States Code, apply to all projects receiving 
funds under this program, and apply to all parts of the project, 
whether funded with Small Shipyard Grant funds, other Federal funds, or 
non-Federal funds.

3. Reporting

    Each applicant selected for a Small Shipyard capital or training 
grant will be required to work with the Maritime Administration on the 
development and implementation of a plan to collect information and 
report on the project's performance with respect to the relevant long-
term outcomes that are expected to be achieved through the capital 
project or training. Performance indicators will not include formal 
goals or targets, but will require analysis of post-project outcomes, 
which will inform the Small Shipyard Grant program in working towards 
best practices, programmatic performance measures, and future decision-
making guidelines.

G. Federal Awarding Agency Contacts

    For further information concerning this notice please contact David 
M. Heller, Director, Office of Shipyards and Marine Engineering, 
Maritime Administration, Room W21-318,1200 New Jersey Ave. SE., 
Washington, DC 20590; phone: (202) 366-5737; or fax: (202) 366-6988. To 
ensure applicants receive accurate information about eligibility or the 
program, you are encouraged to contact the Maritime Administration 
directly, rather than through intermediaries or third parties, with 
questions.

H. Other Information

    All information submitted as part of or in support of any 
application shall use publicly available data or data that can be made 
public and methodologies that are accepted by industry practice and 
standards, to the extent possible. If the application includes 
information you consider to be a trade secret or confidential 
commercial or financial information, you should do the following: (1) 
Note on the front cover that the submission ``Contains Confidential 
Business Information (CBI);'' (2) mark each affected page ``CBI;'' and 
(3) highlight or otherwise denote the CBI portions. The Maritime 
Administration protects such information from disclosure to the extent 
allowed under applicable law. In the event the Maritime Administration 
receives a Freedom of Information Act (FOIA) request for the 
information, the Maritime Administration will follow the procedures 
described in the Department of Transportation FOIA regulations at 49 
CFR 7.17. Only information that is ultimately determined to be 
confidential under that procedure will be exempt from disclosure under 
FOIA.

    Authority:  46 U.S.C. 54101 and the Consolidated Appropriations 
Act, 2016, Public Law 114-113.

    Dated: December 31, 2015.

    By Order of the Maritime Administrator:
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015-33315 Filed 1-5-16; 8:45 am]
 BILLING CODE 4910-81-P