Economic Adjustment Assistance for State Governments

 

To provide technical and financial assistance to a State, or an entity of State government, to enhance its capacities to assist communities, businesses, and workers affected by Defense program activity to plan and carry out community adjustment and economic diversification activities; support local adjustment and diversification efforts; and stimulate cooperation between statewide and local adjustment and diversification efforts.

Active 12.617 Office of Economic Adjustment, Department of Defense B - Project Grants Fiscal Year 2015 The program will support organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size Defense businesses, in 11 additional States. The program supported organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size Defense businesses, in 11 additional States.
Fiscal Year 2016 The program provided financial and technical assistance to nine (9) states impacted by defense industry reductions and ongoing support to another eleven (11) states. The program enalbled those jurisdictions 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 2019 As a result of a $1.5M OEA Industry Resilience Investment, the Commonwealth of Kentucky Aerospace Industry Consortium helped increase Kentucky aerospace exports from $8.7B to $11.7B which contributed to the resilience of the DoD supply chain. Kentucky manufacturers are a major element of the supply chain for the Virginia-class submarine, the Patriot Missile System, the Super Hercules C-130J and the Minuteman III Missile System.
Fiscal Year 2020 $2.6 million in Industry Resilience enabled the University of Michigan, Purdue University and the Ohio State University, on behalf of their respective states, to strengthen the cybersecurity of 173 small- to medium-size defense suppliers, many in rural areas of their respective states. In surveys, 40% of the companies served stated they would not have completed their cybersecurity compliance project, or would have significantly delayed implementation, thus weakening a critical portion of the ground systems supply chain. In addition, the universities have educated over 2,500 companies and/or individuals in the defense supply chain about cybersecurity requirements for defense companies.
Fiscal Year 2021 A $648k grant enabled the University of Alaska's Center for Economic Development to undertake the first comprehensive, statewide effort to analyze the economic impacts of the military in Alaska, understand the defense supply chain in the state, and identify the vendor base in detail. This information was shared widely, and highlighted, among other issues, the importance of portability of occupational licenses for military spouses. In 2022, the State Legislature passed a new law simplifying the licensing process for military spouses. Another proposed law would establish an Alaska Military Affairs Council to focus on military liaison functions at a high level.
Fiscal Year 2022 A $1.5M project enabled the Purdue University Manufacturing Extension Partnership to provide modernization assessments to improve the capabilities of at least 36 Indiana small Defense industrial base businesses; increase supply chain awareness; adapt to the requirements of government and industry prime contractors; and identify strategic growth opportunities. More than 80 Indiana companies have benefited from the grant program in areas such as increased productivity, workforce training, cybersecurity, and technology adoption. These activities ensure companies are prepared to support future Department of Defense capabilities. This project stimulates cooperation between statewide and local adjustment and diversification efforts.
Fiscal Year 2023 A $1.3M project enables the State of Vermont to continue work across six states in the New England region to increase awareness of Industry 4.0 technologies and explore the barriers and solutions for small and medium-size enterprises to adopt these technologies, support development of a communication plan to increase feedback loops and impact within the ecosystem, and introduce a regional workforce program to address challenges in creating a unified regional training and career pathway in advanced manufacturing to modernize the defense industrial base. These activities will ensure small and medium-size companies are prepared to support future Department of Defense capabilities. This project stimulates cooperation between statewide and local adjustment and diversification efforts. 10 U.S.C. 2391. States, entities of States, Indian Tribal Governments, the District of Columbia, U.S. Territories and possessions. Applicants are to contact the Office of Local Defense Community Cooperation and a Project Manager will be assigned to work with the applicant to determine eligibility. States, Indian Tribal Governments, and communities, including workers, businesses, and other community interests affected by Defense budget reductions, base closures/realignments, and/or civilian encroachment that is likely to impair the continued operational utility of a military installation. Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought. Preapplication coordination is required. 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 on how to apply for the funding through this notification. 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 Local Defense Community Cooperation, 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 Local Defense Community Cooperation, Department of Defense, 2231 Crystal Drive, Suite 520, Arlington, VA 22202-3711 Applications are reviewed by Office of Local Defense Community Cooperation staff. The Office of Local Defense Community Cooperation 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 Local Defense Community Cooperation. Awards by the Director, Office of Local Defense Community Cooperation, will be made of the basis of an approved final application. Contact the headquarters or regional location, as appropriate for application deadlines To the extent practicable, the Office of Local Defense Community Cooperation 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 assistance to carry out community adjustments or economic diversification programs. The Office of Local Defense Community Cooperation will promptly inform an applicant of the rejection of any application once its due diligence has been completed. Not applicable. Not applicable. Not applicable. Awards are based on eligibility and availability of funds. Enhance State capacities to assist communities, businesses, and workers adversely affected by: 1. the proposed or actual establishment, realignment, or closure of a military installation; 2. the cancellation or termination of a Department of Defense contract or the failure to proceed with an approved major weapon system program; 3. a publicly announced planned major reduction in Department of Defense; 4. the encroachment of a civilian community on a military installation; or 5. the closure or the significantly reduced operations of a defense facility as the result of a merger, acquisition, or consolidation of the defense contractor operating the defense facility. Planning activities to support, respond to, and prepare for local adjustment and diversification initiatives. Stimulate cooperation between statewide and local adjustment and diversification efforts. Provide planning assistance to understand Defense worker, business, and community linkages and dependencies across regions. Performance Reports: Performance monitoring is also required, and the frequency of monitoring will be identified in the "Terms and Conditions" of an award. Standard Federal audit requirements apply, as appropriate to the type of recipient. These audits are due to the cognizant Federal agency, submitted through the Federal Audit Clearinghouse, not later than 9 months after the end of the Grantee's fiscal year. 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. Statutory formula is not applicable to this assistance listing.

Matching is voluntary. 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 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. Department of Defense, Office of Local Defense Community Cooperation, Western Regional Office Director, 1325 J Street, Suite 1500, Sacramento, CA 95814, Phone: (916) 557-7365 Karen E. Bass-McFadden
2231 Crystal Drive, Suite 520
Arlington, VA 22202-3711 US
karen.e.bass-mcfadden.civ@mail.mil
Phone: (703) 697-2161 https://oldcc.gov/grant-management-administration 97-0100-1-7-051 (Project Grants) FY 22$6,820,057.00; FY 23 est $9,900,000.00; FY 24 est $3,000,000.00; FY 21$17,096,574.00; FY 20$19,860,439.00; FY 19$26,680,494.00; FY 18$20,406,865.00; FY 17 Estimate Not Available FY 16 est $43,242,528.00; FY 15 est $38,953,711.00; - Financial support for operational costs and consultants will allow entities of state to work with local government to stimulate cooperation between statewide and local diversification efforts, and assist workers, communities, and businesses impacted by DoD activity as authorized by 10 U.S.C. 2391. $1,000,000 - $7,200,000, $1,900,000 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 Grants and Cooperative Agreements Implementation of Guidance in 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." Fiscal Year 2015 States and local governments intend to use financial assistance for defense industry supply chain mapping, export training for defense-oriented manufacturing firms, and business process reengineering services. Also intend to support States in providing technical assistance to existing small and medium-size defense-oriented businesses seeking to diversify their customer base.
Fiscal Year 2016 State governments used program financial assistance for: defense industry supply chain mapping, export training for defense-oriented manufacturing firms, and business process reengineering services. Several states also provided support and technical assistance to existing small and medium-size defense-oriented businesses seeking to diversify their customer base. Two states sought to augment existing workforce development programs by more narrowly targeting support to defense-sector workers and their unique workforce development needs.
Fiscal Year 2018 Previously funded projects include an effort to identify and map defense manufacturers with a state in order to provide targeted business services to them (e.g. ISO certification, business process re-engineering, etc.). Projects by state universities to conduct defense technology research and commercialization programs designed to move defense technologies to market faster. A project by a state university to train and expand the regional defense manufacturing workforce in technologies used to produce composite materials in order to support an increased demand for these skills at a local Air Force base. A project by a state economic development agency to train small- and mid-sized defense manufacturers in cybersecurity compliance requirements under the NIST 800-171 standard so that these companies would remain eligible to receive Department of Defense contracts.
Fiscal Year 2019 Financial support for operational costs and consultants, authorized by 10 USC 2391 enhanced the capacity of states to stimulate cooperation between statewide and local diversification efforts in response to reductions in defense spending. Entities of state and local government collaborated to help defense manufacturers develop and manufacture new product offerings, capture new investments, and create new technologies. In addition, entities of state and local government collaborated to strengthen the economic and cyber resiliency of local defense industry supply chains.
Fiscal Year 2020 Funded projects include a statewide effort in support of 10 U.S.C. 2391 to support local adjustment and diversification initiatives that will stimulate cooperation between statewide and local adjustment and diversification efforts These projects will strengthen the ability of innovation-based companies to endure continuing uncertainty in defense spending and ultimately improve the resilience and responsiveness of this critical segment. The grant focuses on the acceleration of large-scale of dual use technologies critical to missions of DoD, and specifically the Army Futures Command and Defense Innovation Unit. The project will drive key DoD technologies to market more quickly, and build the regional innovation economy by creating company start-ups and jobs within the manufacturing sector. Another project led by a large regional university will work one on one with small and mid-sized companies across the state to familiarize them with the defense marketplace in order to increase the proportion of dual-use technologies and increase the diversification of the defense industrial base while also increasing the sustainability and resilience of the state’s manufacturing sector. This project will create new pathways for companies that do not have a strong or existing relationship with DoD . The overall goal is to provide DoD with access to novel technologies which are currently outside its purview.
Fiscal Year 2021 A funded project enables three institutions of higher education to promote the adoption of automation and other Industry 4.0 technologies by small and medium-size companies in Georgia’s defense industrial base. To build a more resilient workforce, the consortium is creating pathways and training curricula which will encourage greater involvement in the defense manufacturing sector by underrepresented groups within the local economy. This project stimulates cooperation between statewide and local adjustment and diversification efforts making the industrial base more resilient to fluctuations in defense spending.
Fiscal Year 2022 A funded project is enabling a university to provide modernization assessments to defense suppliers in Mobile, Alabama, and the surrounding area to evaluate companies’ readiness to apply advanced technologies, identify gaps where these technologies could be utilized, evaluate the potential impact of adding technology, and provide training on technology adoption. At least 25 business participating will receive an introduction to advanced manufacturing and an additional 12 businesses will be provided in depth technical assistance to ensure a robust defense industrial base to support future Department of Defense capabilities. This project stimulates cooperation between statewide and local adjustment and diversification efforts.
Fiscal Year 2023 A proposed project will enable a state government to provide modernization assistance through tools and resources to scale the adoption of model-based technology by the more than 700 firms in the state’s defense industrial base. In addition, the proposed project will develop curricula for 10 new courses related to model-based definition adoption to support the upskilling of at least 1,000 individuals employed by defense suppliers. These activities will ensure companies are prepared to support future Department of Defense capabilities. This project stimulates cooperation between statewide and local adjustment and diversification efforts.