Community Economic Adjustment Assistance for Reductions in Defense Industry Employment
Assist States and local governments to plan and carry out community adjustment and economic diversification activities in response to reductions in defense industry employment.
General information about this opportunity
Last Known Status
Agency: Department of Defense
Office: Office of Economic Adjustment
Type(s) of Assistance Offered
Fiscal Year 2014: The program provided financial and technical assistance to four local governments impacted by defense industry reductions to: organize themselves to speak with one voice on behalf of affected workers, businesses, and communities; plan strategies to ease and/or offset local economic impacts; and carry out strategies through public-private ventures, with support from other Federal agencies as necessary. Fiscal Year 2015: Funding will be used for next steps related to a FY14 project and one new project in response to defense personnel reductions. Fiscal Year 2016: No Current Data Available
10 U.S.C. 2391.
Who is eligible to apply/benefit from this assistance?
Applicants for this assistance are to contact the Office of Economic Adjustment and a Project Manager will be assigned to work with the applicant to determine eligibility for assistance under this program. States, counties, municipalities, other political subdivisions of a State, special purpose units of a State or local government, and tribal nations are eligible for this assistance if there is: a publicly announced planned major reduction in Department of Defense (DoD) spending; the closure or significantly reduced operations of a defense facility as the result of the merger, acquisition, or consolidation of the defense contractor operating the defense facility; the cancellation or termination of a DoD contract; or the failure to proceed with an approved major weapon system program if these actions will have a direct and significant adverse impact on a community or its residents. The local action must result in the loss of: 2,500 or more employee positions, in the case of a Metropolitan Statistical Area; 1,000 of more employee positions, in the case of a labor market area outside of a Metropolitan Statistical Area; or one percent of the total number of civilian jobs in that area to be considered for this assistance.
States and communities, including workers, businesses, and other community interests, that may be affected by Defense actions.
Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought. Applicants must document: 1) the publicly announced Defense action that has occurred or will occur; and 2) the known or anticipated impacts on the applicant due to the closure, reduction, cancellation, termination, or failure to proceed. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
An applicant may be notified of funding availability in person, through letter, electronic mail, or a Federal Funding Opportunity Announcement (FFO), and how to apply for the funding through this notification. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. An application (SF 424, budget, program or project narrative and assurances) must be submitted that outlines the proposed project and expenditure of funds. Applicants will be invited to submit their applications and supporting documentation electronically to the Director, Office of Economic Adjustment, Department of Defense. In instances where, for whatever reason, an electronic application cannot be submitted, provisions may be made to accept a paper application addressed to: Director, Office of Economic Adjustment, Department of Defense, 2231 Crystal Drive, Suite 520, Arlington, VA 22202-3711.
Applications are reviewed by Office of Economic Adjustment staff. The Office of Economic Adjustment may consult with other Federal agencies as necessary in consideration of an application. Any issues or concerns noted in the application may be negotiated with the applicant prior to the application being accepted as final by the Office of Economic Adjustment. Awards by the Director, Office of Economic Adjustment, will be made on the basis of an approved final application.
Approval/Disapproval Decision Time
To the extent practicable, the Office of Economic Adjustment will inform an applicant of approval within seven business days of the receipt of a final, completed application for planning assistance, and thirty business days of the receipt of a final, completed application for other types of assistance to carry out community adjustments or economic diversification programs. The Office of Economic Adjustment will promptly inform an applicant of the rejection of any application once its due diligence has been completed.
How are proposals selected?
Not applicable. Awards are based on eligibility and availability of funds.
How may assistance be used?
Plan and carry out local economic adjustment programs, including, but not limited to: assessment of local economic strengths, weaknesses, opportunities and threats; staffing, operating and administrative costs for an organization to represent the affected community; review of local Defense prime and sub contracting activity; outreach to local small businesses, workers, and other community interests; and, facility evaluations. Funds provided under this program may not be used to directly identify or 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.
What are the requirements after being awarded this opportunity?
Program reports are required. Cash reports are required. Progress reports are required. Expenditure reports are required. The frequency of these reports will be identified in the "Terms and Conditions" of the award. Performance monitoring is required. The frequency of the monitoring will be identified in the "Terms and Conditions" of the award.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Standard Federal audit requirements apply, as appropriate to the type of recipient.
Grant records shall be retained for a period of 3 years from the day the recipient submits its final expenditure report. If any litigation, claim, negotiation, audit, or other action involving the records has been started before the expiration of the 3-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular 3-year period, whichever is later. Grant records include financial and program/progress reports, support documents, statistical records, and other documents that support the activity and/or expenditure of the recipient or subrecipient under the award.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching Requirements: A minimum of ten percent of the project's total proposed funding is to be comprised of non-Federal sources.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Length of assistance may extend across more than one period and will be determined on the basis of project need and requirements. Project periods should not exceed one year. See the following for information on how assistance is awarded/released: Funds are disbursed quarterly or as required.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Regional Director, Western Region Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814. Phone: (916) 557-7365.
Director, 2231 Crystal Drive, Suite 520, Arlington, Virginia 22202-3711 Email: oea.ncr.OEA.email@example.com
Phone: (703) 697-2130 Fax: (703) 607-0170
(Project Grants) FY 14 $5,678,029; FY 15 est $10,000,000; and FY 16 Estimate Not Available
Range and Average of Financial Assistance
$250,000 - $1,500,000; $500,000.
Regulations, Guidelines and Literature
The Recipient, and any subrecipient or consultant/contractor, operating under the terms of a grant or cooperative agreement shall comply with all Federal, State, and local laws including the following, where applicable: Part 1103 of title 2, Code of Federal Regulations (CFR), Interim Grant and Cooperative Agreement Implementation of 2 CFR Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;” Part 28 of title 32, CFR, "New Restrictions on Lobbying;" Part 1125 of title 2, CFR, “Department of Defense Nonprocurement Debarment and Suspension,” Subpart B, “Requirements for Recipients Other Than Individuals,” of Part 26 of title 32, CFR, “Governmentwide Requirements for Drug-Free Workplace (Financial Assistance);” and Part 25 of title 2, CFR, “Universal Identifier and Central Contractor Registration.”
Examples of Funded Projects
Fiscal Year 2014: In response to layoffs at a defense company, a collaboration of organizations in the region is working to: align local economic development plans and update them with diversification strategies; promote the growth of new and existing businesses in targeted industries through workforce and supply chain initiatives; map the regional defense industry supply chain; and, provide technical assistance to a company’s suppliers and affected workers.
A local organization is studying reemployment opportunities for displaced workers, identifying the region's comparative advantages, and developing opportunities to diversify local economic activity. Fiscal Year 2015: A county organization and its partners are entering Phase II of their economic adjustment response. The county will build on existing data and the related successes of an OEA-supported Phase I to create a comprehensive workforce response, closely examine and evaluate the region's economy, and develop and carry out a strategic plan. The project includes staff support for a High Strain Rate Metal Forming Commercialization Center, a key component of the region's emerging innovation infrastructure.
In coordination with regional partners, a city has developed a Plant Closure Transition Program to assist the region (to include impacted firms and neighboring jurisdictions) in transitioning successfully while retaining the regional skills base, competitiveness and sector expertise; minimizing the economic impact of the plant closure by supporting the re-employment of as many as 3,000 defense workers directly dislocated; conducting land use planning, infrastructure and economic development studies of the site; and producing a Transition Master Plan as a guiding economic and land use / infrastructure planning strategy for the region. Fiscal Year 2016: No Current Data Available