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Community Economic Adjustment Assistance for Reductions in Defense Industry Employment

Number: 12.611
Agency: Department of Defense
Office: Office of Economic Adjustment

Program Information 

Program Number/Title (010):
12.611 Community Economic Adjustment Assistance for Reductions in Defense Industry Employment
Federal Agency (030):
Office of Economic Adjustment, Department of Defense
Authorization (040):
10 U.S.C. 2391.
Objectives (050):
Assist States and local governments to plan and carry out community adjustment and economic diversification activities in response to reductions in defense industry employment.
Types of Assistance (060):
Uses and Use Restrictions (070):
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.
Eligibility Requirements (080)
Applicant Eligibility (081):
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 (082):
States and communities, including workers, businesses, and other community interests, that may be affected by Defense actions.
Credentials/Documentation (083):
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. OMB Circular No. A-87 applies to this program.
Application and Award Process (090)
Preapplication Coordination (091):
The applicant may be notified of funding availability in person, through letter, electronic mail, or a Federal Funding Opportunity Announcement (FFO). The applicant will be advised on 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.
Application Procedures (092):
OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. 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 (093):
Applications are reviewed by Office of Economic Adjustment program and administrative staff. Any issues or concerns noted in the application will be negotiated with the applicant prior to the application being approved by the Director, Office of Economic Adjustment.
Deadlines (094):
Not Applicable.
Range of Approval/Disapproval Time (095):
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. The Office of Economic Adjustment will promptly inform an applicant of the rejection of any application once its due diligence has been completed.
Appeals (096):
Not Applicable.
Renewals (097):
Not Applicable.
Assistance Consideration (100)
Formula and Matching Requirements (101):
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 (102):
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.
Post Assistance Requirements (110)
Reports (111):
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.
Audits (112):
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Standard Federal audit requirements apply, as appropriate to the type of recipient.
Records (113):
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.
Financial Information (120)
Obligations (122):
(Project Grants) FY 13 $0; FY 14 est $4,001,787; and FY 15 est $4,000,000
Range and Average of Financial Assistance (123):
$500,000 - $1,500,000; $500,000.
Program Accomplishments (130):
Fiscal Year 2013: There were no funded projects in Fiscal Year 2013. Fiscal Year 2014: The program is projected to provide financial and technical assistance to at least five instrumentalities of State and local government to help regions 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: No Current Data Available
Regulations, Guidelines, and Literature (140):
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 33 of title 32, Code of Federal Regulations (CFR), "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments;” Part 225 of title 2, CFR, "Cost Principles for State, Local, and Indian Tribal Governments;” Part 25 of title 32, CFR, OMB Circular A-133;“ Audits of States, Local Governments and Non-Profit Organizations;” 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.”
Information Contacts (150)
Regional or Local Office (151) :
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.
Headquarters Office (152):
Director 2231 Crystal Drive, Suite 520, Arlington, Virginia 22202-3711 Email: Phone: (703) 697-2130 Fax: (703) 607-0170
Website Address (153):
Examples of Funded Projects (170):
Fiscal Year 2013: There were no funded projects in Fiscal Year 2013. 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: No Current Data Available
Criteria for Selecting Proposals (180):
Not applicable. Awards are based on eligibility and availability of funds.