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
Program Number
Federal Agency/Office
Office of Economic Adjustment, Department of Defense
Type(s) of Assistance Offered
B - Project Grants
Program Accomplishments
Not applicable.
10 U.S.C. 2391
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
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.
Beneficiary Eligibility
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Environmental impact information is not required for this program. An environmental impact assessment is not required for this listing. 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. 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.
Application Procedure
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.
Award Procedure
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.
Not applicable.
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.
Not applicable.
Not applicable.
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?
Performance Reports: Performance monitoring is required. The frequency of the monitoring will be identified in the "Terms and Conditions" of the award.
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
Statutory formula is not applicable to this assistance listing.

Matching is voluntary. 10%. A minimum of ten percent of the project's total proposed funding is to be comprised of non-Federal sources.

MOE requirements are not applicable to this assistance listing.
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. Funds are disbursed quarterly or as required.
Who do I contact about this opportunity?
Regional or Local Office
Regional Director, Western Region Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814. Phone: (916) 557-7365.
Headquarters Office
Karen E. Bass-McFadden
2231 Crystal Drive, Suite 520
Arlington, VA 22202-3711 US
Phone: (703) 697-2161
Website Address
Financial Information
Account Identification
(Project Grants) FY 18$2,466,536.00; FY 19 est $1,000,000.00; FY 20 est $1,000,000.00; FY 17 Estimate Not Available FY 16 est $10,028,299.00; FY 15 est $10,000,000.00; -
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 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 In response to a series of layoffs at multiple defense manufacturing companies, a collaboration of economic development and governmental organizations in the area is working to: align local economic development plans and update them with diversification strategies; promote the growth of new and existing businesses in defense sector 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.
Fiscal Year 2018 Previously funded projects included efforts to retain and retrain workers affected by a shipyard layoff. An effort to create a cybersecurity industry cluster in response to a series of layoffs in the regional defense sector, and a project to upgrade worker skill sets to prepare for an expected increase in workload at a defense facility.