[Federal Register Volume 81, Number 61 (Wednesday, March 30, 2016)]
[Notices]
[Pages 17767-17782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07286]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary of Transportation
[Docket No. DOT-OST-2016-0037]
Notice of order soliciting community proposals
AGENCY: Department of Transportation, Office of the Secretary.
ACTION: Notice of order soliciting community proposals (Order 2016-3-
32).
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SUMMARY: The Department of Transportation is soliciting proposals from
communities or consortia of communities interested in receiving grants
under the Small Community Air Service Development Program. The full
text of the Department's order, including Appendices, is included in
this Notice. As noted in the order, an application for a grant under
this program must include a Grant Proposal of no more than 20 pages
(one-sided only), a completed Application for Federal Domestic
Assistance (SF424), a Summary Information Schedule, and any letters
from the applicant community showing support.
DATES: Applications must be submitted no later than May 2, 2016.
ADDRESSES: Communities must submit applications electronically through
http://www.grants.gov.
FOR FURTHER INFORMATION CONTACT: Brooke Chapman, Associate Director,
Small Community Air Service Development Program, Office of Aviation
Analysis, 1200 New Jersey Avenue SE., W86-307, Washington, DC 20590,
(202) 366 0577.
SUPPLEMENTARY INFORMATION: By this order, the U.S. Department of
Transportation (the Department or DOT) invites proposals from
communities and/or consortia of communities interested in obtaining a
federal grant under the Small Community Air Service Development Program
(``Small Community Program'' or ``SCASDP'') to address air service and
airfare issues in their communities. Subject to the availability of
funding, the Department has up to $5 million available for FY 2016
grant awards to carry out this program. There is no other limitation on
the amount of individual awards, and the amounts awarded will vary
depending upon the features and merits of the selected proposals. In
past years, the Department's individual grant sizes have ranged from
$20,000 to nearly $1.6 million. Funding amounts made available for
reimbursement may be impacted by future limitations placed on the
spending authority and appropriations enacted for the Department. OST
cannot award grants until the enactment of authorizing legislation, an
appropriations act, budget authority, and apportionment from the Office
of Management and Budget (OMB). OST may, at its discretion, issue
partial funding awards up to the level authorized and provided that the
above conditions are met. Additional information on the budget process
may be found in OMB A-11: http://www.whitehouse.gov/omb/circulars_default/.
Applications of no more than 20 one-sided pages each (excluding the
completed Application for Federal Domestic Assistance (SF424), Summary
Information schedule, and any letters from the community or an air
carrier showing support for the application), including all required
information, must be submitted to www.grants.gov no later than 5:00
p.m. EDT on May 2, 2016. Applicants are strongly encouraged to submit
applications in advance of the deadline. Please be aware that
applicants must complete the grants.gov registration process before
submitting an application, and that this process usually takes two to
four weeks to complete.\1\ The Department will not accept late-filed
applications except under limited circumstances related to technical
difficulties. Additional information on applying through grants.gov is
in Appendix A, including a notice regarding late-filed applications.
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\1\ If an applicant experiences difficulties at any point during
the registration or application process, it should contact the
grants.gov support center by email (grants.gov">support@grants.gov) or by
telephone (1-800-518-4726, available 24/7 except Federal holidays).
See www.grants.gov/web/grants/support.html.
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[[Page 17768]]
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This order is organized into the following sections:
I. Background
II. Selection Criteria and Guidance on Application of Selection
Criteria
III. Evaluation and Selection Process
IV. How To Apply
V. Air Service Development Zone
VI. Grant Administration
VII. Questions and Clarifications
Appendix A--Additional Information on Applying Through
www.grants.gov
Appendix B--Summary Information
Appendix C--Application Checklist
Appendix D--Confidential Commercial Information
I. Background
The Small Community Program was established by the Wendell H. Ford
Aviation Investment and Reform Act for the 21st Century (Pub. L. 106-
181), reauthorized by the Vision 100-Century of Aviation
Reauthorization Act (Pub. L. 108-176), and subsequently reauthorized by
the FAA Modernization and Reform Act of 2012 (Pub. L. 112-95) (FAA
2012), as amended. The program is designed to provide financial
assistance to small communities in order to help them enhance their air
service. The Department provides this assistance in the form of
monetary grants that are disbursed on a reimbursable basis.
Authorization for this program is codified at 49 U.S.C. 41743.
The Small Community Program is authorized to receive appropriations
under 49 U.S.C. 41743(e)(2), as amended. Appropriations are provided
for this program for award selection in FY 2016 pursuant to FAA 2012
and the Consolidated Appropriations Act, 2016 (Pub. L. 114-113). The
Airport and Airway Extension Act of 2015 provides contract authority
until March 31, 2016, for the Airport Improvement Program, which funds
SCASDP. Therefore, subject to the availability of funding, the
Department has up to $5 million available for FY 2016 grant awards to
carry out this program. There is no other limitation on the amount of
individual awards, and the amounts awarded will vary depending upon the
features and merits of the selected proposals. In past years, the
Department's individual grant sizes have ranged from $20,000 to nearly
$1.6 million. Funding amounts made available for reimbursement may be
impacted by future limitations placed on the spending authority and
appropriations enacted for the Department. OST cannot award grants
until the enactment of authorizing legislation, an appropriations act,
budget authority, and apportionment from the Office of Management and
Budget (OMB). OST may, at its discretion, issue partial funding awards
up to the level authorized and provided that the above conditions are
met. Additional information on the budget process may be found in OMB
A-11: http://www.whitehouse.gov/omb/circulars_default/.
A. Eligible Applicants
Eligible applicants are small communities that meet the following
statutory criteria under 49 U.S.C. 41743, as amended by Public Law 114-
113:
1. (a) The airport serving the community or consortium is not
larger than a small hub airport, according to FAA hub classifications
effective on the date of service of this Order,\2\ or
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\2\ ``Small hub airport'' is defined in 49 U.S.C. 47102 (23) as
``a commercial service airport that has at least 0.05 percent but
less than 0.25 percent of the passenger boardings.'' See also http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/categories/. For FAA passenger enplanement information to use to
determine an airport's eligibility as a small hub airport, see
http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/.
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(b) As of calendar year 1997, the airport serving the community or
consortium was not larger than a small hub airport,\3\ and
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\3\ See, http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, for the FAA's 1997 list of
Primary and Nonprimary Commercial Service Airports.
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2. It has insufficient air carrier service or unreasonably high air
fares; and
3. The airport serving the community presents characteristics, such
as geographic diversity or unique circumstances that demonstrate the
need for, and feasibility of, grant assistance from the Small Community
Program.\4\
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\4\ 49 U.S.C. 41743(c)(1), (2).
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No more than four communities or consortia of communities, or a
combination thereof, from the same State may be selected to participate
in the program in any fiscal year. No more than 40 communities or
consortia of communities, or a combination thereof, may be selected to
participate in the program in each year for which the funds are
appropriated.
Consortium applications: Both individual communities and consortia
of communities are eligible for SCASDP funds. An application from a
consortium of communities must be one that seeks to facilitate the
efforts of the communities working together toward one joint grant
project, with one joint objective, including the establishment of one
entity to ensure that the joint objective is accomplished.
Multiple applications prohibited: A community may file only one
application for a grant, either individually or as part of a
consortium.
Communities without existing air service: Communities that do not
currently have commercial air service are eligible for SCASDP funds.
Essential Air Service communities: Small communities that meet the
basic SCASDP criteria and currently receive subsidized air service
under the Essential Air Service (``EAS'') program are eligible to apply
for SCASDP funds. However, grant awards to EAS-subsidized communities
are limited to marketing or promotion projects that support existing or
newly subsidized EAS. Grant funds will not be authorized for EAS-
subsidized communities to support any new competing air service.
Furthermore, no funds will be authorized to support additional flights
by EAS carriers or changes to those carriers' existing schedules. These
restrictions are necessary to avoid conflicts with the mandate of the
EAS program.
Alternate Essential Air Service communities: Likewise, small
communities that meet the basic SCASDP criteria and currently receive
assistance under the Alternate Essential Air Service Pilot Program
(``Alternate EAS Pilot Program'') (49 U.S.C. 41745(a)) are eligible to
apply for SCASDP funds. Since the Alternate EAS Pilot Program is a
substitute/alternative to traditional EAS, we would consider
applications from communities receiving assistance under 49 U.S.C.
41745(a) only for marketing or promotion projects; however, if the
community is already receiving Department support for marketing
projects, per the community's proposal under the Alternate EAS Pilot
Program, the community's project would not be considered for a SCASDP
grant.
Eligible Projects
The Department is authorized to award grants under 49 U.S.C. 41743
to communities that seek to provide assistance to:
A U.S. air carrier \5\ to subsidize service to and from an
underserved airport for a period not to exceed 3 years;
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\5\ Only U.S. air carriers are eligible to receive assistance
from communities under SCASDP. See 49 U.S.C. 41743(d)(1) and
40102(a)(2).
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An underserved airport to obtain service to and from the
underserved airport; and/or
An underserved airport to implement such other measures as
the Secretary, in consultation with such airport, considers appropriate
to improve air service both in terms of the
[[Page 17769]]
cost of such service to consumers and the availability of such service,
including improving air service through marketing and promotion of air
service and enhanced utilization of airport facilities.
Applicants should also keep in mind the following statutory
restrictions on eligible projects:
An applicant may not receive an additional grant to
support the same project from a previous grant (see Same Project
Limitation below); and
An applicant may not receive an additional grant, prior to
the completion of its previous grant (see Concurrent Grant Limitation
below).
Same Project Limitation: Under 49 U.S.C. 41743(c), a community or
consortium may not receive an additional grant to support the same
project for which it received a previous grant (Same Project
Limitation).\6\ In assessing whether a previous grantee's current
application represents a new project, the Department will compare the
goals and objectives of the previous grant, including the key
components of the means by which those goals and objectives were to be
achieved, to the current application. For example, if a community
received an earlier grant to support a revenue guarantee for service to
a particular destination or direction, a new application by that
community for another revenue guarantee for service to the same
destination or in the same direction is ineligible, even if the revenue
guarantee were structured differently or the type of carrier were
different. However, a new application by such a previous grantee for
service to a new destination or direction using a revenue guarantee, or
for general marketing of the airport and the various services it
offers, is eligible.\7\ The Department recognizes that not all revenue
guarantees, marketing agreements, studies, or other activities are of
the same nature, and that if a subsequent application incorporates
different goals or significantly different components, it may be
sufficiently different to constitute a new project under 49 U.S.C.
41743(c).
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\6\ This limitation applies for all projects contained in a
previous grant agreement's scope; thus, even if the community did
not actively implement a project listed in the scope of an earlier
grant agreement, it may not receive funding for that project in a
subsequent round of SCASDP funding.
\7\ As noted in the ``Market Analysis'' subsection of section C
below, target markets proposed by communities may be destination
specific (e.g., service to LAX), a geographic region (e.g.,
northwest mountain region) or directional (e.g., hub in the
southeastern United States or a point north, south, east, or west of
the applicant community).
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Concurrent Grant Limitation: A community or consortium may have
only one SCASDP grant at any time. If a community or consortium applies
for a subsequent SCASDP grant when its current grant has not yet
expired, that community/consortium must notify the Department of its
intent to terminate the current SCASDP grant, and if the community/
consortium is selected for a new grant, such termination must take
place prior to entering into the new grant agreement. In addition, for
consortium member applicants, permission must be granted from both the
grant sponsor and the Department to withdraw from the current SCASDP
grant before that consortium member will be deemed eligible to receive
a subsequent SCASDP grant.
Airport Capital Improvements Ineligible: Airport capital
improvement projects, including, but not limited to, runway expansions
and enhancements, the construction of additional aircraft gates, and
other airport terminal expansions and reconfigurations are ineligible
for funding under the Small Community Program. Airports seeking funding
for airport capital improvement projects may want to consult with their
local FAA Regional Office to discuss potential eligibility for grants
under the Airport Improvement Program.
II. Selection Criteria and Guidance on Application of Selection
Criteria
SCASDP grants will be awarded based on the selection criteria as
outlined below. There are two categories of selection criteria:
Priority Selection Criteria and Secondary Selection Criteria.
Applications that meet one or more of the Priority Selection Criteria
will be viewed more favorably than those that do not meet any Priority
Selection Criteria.
A. Priority Selection Criteria
The statute directs the Department to give priority consideration
to those communities or consortia where the following criteria are met:
1. Air fares are higher than the national average air fares for all
communities--The Department will compare the local community's air
fares to the national average air fares for all similar markets.
Communities with market air fares significantly higher than the
national average air fares in similar markets will receive priority
consideration. The Department calculates these fares using data from
the Bureau of Transportation Statistics (BTS) Airline Origin and
Destination Survey data. The Department evaluates all fares in all
relevant markets that serve a SCASDP community and compares the SCASDP
community fares to all fares in similar markets across the country.
Each SCASDP applicant's air fares are computed as a percentage above or
below the national averages. The report compares a community's air
fares to the average for all other similar markets in the country that
have similar density (passenger volume) and similar distance
characteristics (market groupings). All calculations are based on 12-
month ended periods to control for seasonal variation of fares.
2. The community or consortium will provide a portion of the cost
of the activity from local sources other than airport revenue sources--
The Department will consider whether a community or consortium proposes
local funding for the proposed project. Applications providing
proportionately higher levels of cash contributions from sources other
than airport revenues will be viewed more favorably. Applications that
provide multiple levels of contributions (state, local, cash and in-
kind contributions) will also be viewed more favorably. See Additional
Guidance--Cost Sharing and Local Contributions, in Subsection C below,
for more information on the application of this selection criterion.
3. The community or consortium has established or will establish a
public-private partnership to facilitate air carrier service to the
public--The Department will consider a community's or consortium's
commitment to facilitate air carrier service in the form of a public-
private partnership. Applications that describe in detail how the
partnership will actively participate in the implementation of the
proposed project will be viewed more favorably.
4. The assistance will provide material benefits to a broad segment
of the traveling public, including businesses, educational
institutions, and other enterprises, whose access to the national air
transportation system is limited--The Department will consider whether
the proposed project would provide, to a broad segment of the
community's traveling public, important benefits relevant to the
community. Examples include service that would offer new or additional
access to a connecting hub airport, service that would provide
convenient travel times for both business and leisure travelers that
would help obviate the need to drive long distances, and service that
would offer lower fares.
5. The assistance will be used in a timely manner--The Department
will consider whether a proposed project provides a well-defined
strategic plan and reasonable timetable for use of the grant funds. In
the Department's experience, reasonable timetables for
[[Page 17770]]
use of grant funds generally include a year to complete studies, two
years for marketing and promotion of the airport, community, carrier,
or destination, and three years for projects that target a revenue
guarantee, subsidy, or other financial incentives. Applicants should
describe how their projects can be accomplished within this timetable,
including whether the airport and proposed air service provider have
the requisite authorities and certifications necessary to carry out the
proposed projects. In addition, because of this emphasis placed on
timely use of funds, applicants proposing new service should describe
the airport and whether it can support the proposed service, including
whether the airport holds, or intends to apply for, an airport
operating certificate issued under 14 CFR part 139. Air service
providers proposed for the new service must have met or be able to
meet, in a reasonably short period of time, all Department requirements
for air service certification, including safety and economic
authorities.
6. Multiple communities cooperate to submit a regional or
multistate application to consolidate air service into one regional
airport--The Department will consider whether a proposed project
involves a consortium effort to consolidate air service into one
regional airport. This statutory priority criterion was added pursuant
to Section 429 of the FAA Modernization and Reform Act of 2012 (Pub. L.
112-95).
B. Secondary Selection Criteria
1. Innovation--The Department will consider whether an application
proposes new and creative solutions to air transportation issues facing
the community, including:
The extent to which the applicant's proposed solution(s)
to solving the problem(s) is new or innovative, including whether the
proposed project utilizes or encourages intermodal or regional
solutions to connect passengers to the community's air service (or, if
the community cannot implement or sustain its own air services, to
connect to a neighboring community's air service) e.g., cost-effective
inter/intra city passenger bus service, or marketing of intermodal
surface transportation options also available to air travelers; and
whether the proposed project, if successfully implemented,
could serve as a working model for other communities.
2. Community Participation--The Department will consider whether an
application has broad community participation, including:
Whether the proposed project has broad community support;
and
the community's demonstrated commitment to and
participation in the proposed project.
3. Location--The Department will consider the location and
characteristics of a community:
The geographic location of each applicant, including the
community's proximity to larger centers of air service and low-fare
service alternatives;
The population and business activity, as well as the
relative size of each community; and
Whether the community's proximity to an existing or prior
grant recipient could adversely affect either its proposal or the
project undertaken by the other recipient.
4. Other Factors--The Department will also consider:
Whether the proposed project clearly addresses the
applicant's stated problems;
The community's existing level of air service and whether
that service has been increasing or decreasing;
Whether the applicant has a plan to provide any necessary
continued financial support for the proposed project after the
requested grant award expires;
The grant amount requested compared with the total funds
available for all communities;
The proposed federal grant amount requested compared with
the local share offered;
any letters of intent from airline planning departments or
intermodal surface transportation providers on behalf of applications
that specifically indicate intent to enlist new or expanded air service
or surface transportation service in support of the air service in the
community;
whether the applicant has plans to continue with the
proposed project if it is not self-sustaining after the grant award
expires; and
equitable and geographic distribution of available funds.
C. Additional Guidance
Market Analysis: Applicants requesting funds for a revenue
guarantee/subsidy/financial incentive are encouraged to conduct and
reference in their applications an in-depth analysis of their target
markets. Target markets can be destination specific (e.g., service to
LAX), a geographic region (e.g., northwest mountain region) or
directional (e.g., hub in the southeastern United States or a point
north, south, east, or west of the applicant community).
Complementary Marketing Commitment: Applicants requesting funds for
a revenue guarantee/subsidy/financial incentive are encouraged to
designate in their applications a portion of the project funds
(Federal, local or in-kind) for the development and implementation of a
marketing plan in support of the service sought.
Subsidies for a carrier to compete against an incumbent: The
Department is reluctant to subsidize one carrier, but not others in a
competitive market. For this reason, a community that proposes to use
the grant funds for service in a city-pair market that is already
served by another air carrier must explain in detail why the existing
service is insufficient or unsatisfactory, or provide other compelling
information to support such a proposal.
Cost Sharing and Local Contributions: Applications must clearly
identify the level of federal funding sought for the proposed project.
Applications must also identify the community's cash contributions to
the proposed project, in-kind contributions from the airport, and in-
kind contributions from the community. Non-federal funds will be
applied proportionately to the entire scope of the project. Communities
cannot use non-federal funds selectively to fund certain components of
a project (see Section VI--Grant Administration--Payments for more
information). Cash contributions from airport revenues must be
identified separately from cash contributions from other community
sources. Cash contributions from the state and/or local government
should be separately identified and described as well.
Types of contributions. Contributions should represent a new
financial commitment or new financial resources devoted to attracting
new or improved service, or addressing specific high-fare or other
service issues, such as improving patronage of existing service at the
airport. For communities that propose to contribute to the grant
project, that contribution can be in the following forms:
Cash from non-airport revenues. A cash contribution can include
funds from the state, the county or local government, and/or from local
businesses, or other private organizations in the community. Because
private cash contributions are to be from local community sources, the
Department will not consider as a part of these non-airport revenues
any funds that a community might receive from an air carrier interested
in providing service under that community's proposal. Moreover,
contributions that are comprised of intangible non-cash items, such as
the value of donated advertising, are considered in-kind
[[Page 17771]]
contributions (see further discussion below).
Cash from airport revenues. This includes contributions from funds
generated by airport operations. Airport revenues may not be used for
revenue guarantees to airlines, per 49 U.S.C. 47107 and 47133.
Applications that include local contributions based on airport revenues
do not receive priority consideration for selection.
In-kind contributions from the airport. This can include such items
as waivers of landing fees, ground handling fees, terminal rents, fuel
fees, and/or vehicle parking fees.
In-kind contributions from the community. This can include such
items as donated advertising from media outlets, catering services for
inaugural events, or in-kind trading, such as advertising in exchange
for free air travel. Travel banks and travel commitments/pledges are
considered to be in-kind contributions.
Cash vs. in-kind contributions. Communities that include local
contributions made in cash will be viewed more favorably.
Eligible Air Carriers: As noted in footnote 3 above, only U.S. air
carriers are eligible to receive assistance from communities under
SCASDP grants. A particular U.S. carrier may hold authority to conduct
operations as a certificated air carrier, a commuter air carrier, or an
air taxi operator.\8\ Communities are encouraged to verify, at an early
stage of any air carrier discussions, that the air carrier does in fact
hold appropriate Department authority to conduct the proposed services.
Communities may verify this authority by contacting the Department's
Air Carrier Fitness Division at (202) 366-9721.
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\8\ For example, an air carrier holding only air taxi authority
under 14 CFR parts 298 and 135 is limited to the use of small
aircraft (60 or fewer seats and a maximum payload capacity of 18,000
pounds or less, and to conducting fewer than five round-trip flights
per week in a particular city-pair market.
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Aviation Security: Communities proposing new or expanded air
service under a SCASDP grant proposal are encouraged to contact the
Transportation Security Administration (TSA) early in the process to
ascertain what the security implications of such service would be with
respect to the airport involved, and what measures that airport would
need to take with the TSA to assure that the service would meet all
applicable TSA requirements.
III. Evaluation and Selection Process
The Department will first review each application to determine
whether it has satisfied the following eligibility requirements:
1. The applicant is an eligible applicant;
2. The application is for an eligible project (including compliance
with the Same Project Limitation); and
3. The application is complete (including submission of a completed
SF424 and all of the information listed in Contents of Application, in
Section IV below).
To the extent that the Department determines that an application
does not satisfy these eligibility requirements, the Department will
deem that application ineligible and not consider it further.
The Department will then review all eligible applications based on
the selection criteria outlined above in Section II. The Department
will not assign specific numerical scores to projects based on the
selection criteria. Rather, ratings of ``highly recommended,''
``recommended,'' ``acceptable,'' or ``not recommended'' will be
assigned to applications. Applications that align well with one or more
of the Priority Selection Criteria will be viewed more favorably than
those that do not align with any Priority Selection Criteria. The
Department will consider the Secondary Selection Criteria when
comparing and selecting among similarly-rated projects.
The Department reserves the right to award funds for a part of the
project included in an application, if a part of the project is
eligible and aligns well with the selection criteria specified in this
Order. In addition, as part of its review of the Secondary Selection
Criterion ``Other Factors,'' the Department will consider the
geographical distribution of the applications to ensure consistency
with the statutory requirement limiting awards to no more than four
communities or consortia of communities, or a combination thereof, from
the same state. The final selections will be limited to no more than 40
communities or consortia of communities, or a combination thereof.
Grant awards will be made as promptly as possible so that selected
communities can complete the grant agreement process and implement
their plans. Given the competitive nature of the grant process, the
Department will not meet with applicants regarding their applications.
All non-confidential portions of each application, all correspondence
and ex-parte communications, and all orders will be posted in the
above-captioned docket on www.regulations.gov.
The Department will announce its grant selections in a Selection
Order that will be posted in the above-captioned docket, served on all
applicants and all parties served with this Solicitation Order, and
posted on the Department's SCASDP Web site https://www.transportation.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.
IV. How To Apply
Required Steps:
Determine eligibility;
Register with www.grants.gov (see Registration with
www.grants.gov, below);
Submit an Application for Federal Domestic Assistance
(SF424);
Submit a completed ``Summary Information'' schedule. This
is your application cover sheet (see Appendix B);
Submit a detailed application of up to one-sided 20 pages
(excluding the completed SF424, Summary Information schedule, and any
letters from the community or an air carrier showing support for the
application) that meets all required criteria (see Appendix C);
Attach any letters from the community or an air carrier
showing support for the application to the proposal, which should be
addressed to: Brooke Chapman, Associate Director, Small Community Air
Service Development Program; and
Provide separate submission of confidential material, if
requested. (see Appendix D)
An application will not be complete and will be deemed ineligible
for a grant award until and unless all required materials, including
SF424, have been submitted through www.grants.gov and time-stamped by
5:00 p.m. EDT on May 2, 2016 (the ``Application Deadline'').
An application consisting of more than 20 pages will be accepted by
the Department, but the content in the additional pages past page 20
will not be evaluated or considered by the Department. The Department
would prefer that applicants use one-inch margins and a font size not
less than 12 point type.
Late Application Notice: Applicants who are unable to successfully
submit their application package through grants.gov prior to the
Application Deadline due to technical difficulties outside their
control must submit an email to [email protected] with the
information described in Appendix A.
Registration with www.grants.gov: Communities must be registered
with www.grants.gov in order to submit an application for funds
available under this program. For consortium
[[Page 17772]]
applications, only the Legal Sponsor must be registered with
www.grants.gov in order to submit its application for funds available
under this program. See Appendix A for additional information on
applying through www.grants.gov.
Contents of Application: There is no set format that must be used
for applications. Each application should, to the maximum extent
possible, address the selection criteria set forth in Section II,
above, including a clear description of the air service needs/
deficiencies and present plans/strategies that directly address those
needs/deficiencies. At a minimum, however, each application must
include the following information:
A description of the community's air service needs or
deficiencies, including information about: (1) Major origin/destination
markets that are not now served or are not served adequately; (2) fare
levels that the community deems relevant to consideration of its
application, including market analyses or studies demonstrating an
understanding of local air service needs; (3) any recent air service
developments that have adversely affected the community; \9\ and (4)
any air service development efforts over the past three years and the
results of those efforts (including marketing and promotional efforts).
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\9\ For example, if a community has lost service or been
otherwise adversely affected as a result of an airline merger, the
applicant should describe the situation in detail and quantify, to
the extent possible, its effects on the community.
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A strategic plan for meeting those needs under the Small
Community Program, including the community's specific project goal(s)
and detailed plan for attaining such goal(s). If the application is
selected, DOT will work with the grantee to incorporate the relevant
elements of the application's strategic plan into the grant agreement's
project scope.\10\ Applicants should note that, once a grant agreement
is signed, the agreement generally cannot be amended in a way that
would alter the project scope. Applicants also are advised to obtain
firm assurances from air carriers proposing to offer new air services
if a grant is awarded. Strategic plans should:
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\10\ If new service is proposed to or from a specific city or
market served by multiple airports (such as New York, Chicago, Los
Angeles, or Washington, DC, for example), the applicant is
encouraged to identify the airport(s) in that city or market the
community would be targeting under its proposal in order to
facilitate the drafting of the grant agreement's project scope.
Communities should carefully select, within a specific city or
market, those airports for which it proposes service, as proposing
multiple airports in a city or market could impact the ability of a
community to seek future grants involving those airports (see Same
Project Limitation, above).
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[cir] For applications involving new or improved service, explain
how the service will become self-sufficient;
[cir] fully and clearly outline the goals and objectives of the
project; and
[cir] fully and clearly summarize the actual, specific steps (in
bullet form, with a proposed timeline) that the community intends to
take to bring about these goals and objectives.
A detailed description of the funding necessary for
implementation of the proposed project (including federal and non-
federal contributions).
An explanation of how the proposed project differs from
any previous projects for which the community received SCASDP funds
(see Same Project Limitation, above).
Designation of a legal sponsor responsible for
administering the proposed project. The legal sponsor of the proposed
project must be a government entity, such as a state, county, or
municipality. The legal sponsor must be legally, financially, and
otherwise able to execute the grant agreement and administer the grant,
including having the authority to sign the grant agreement and to
assume and carry out the certifications, representations, warranties,
assurances, covenants and other obligations required under the grant
agreement with the Department and to ensure compliance by the grant
recipient with the grant agreement and grant assurances. If the
applicant is a public-private partnership, a public government member
of the organization must be identified as the community's sponsor to
receive project cost reimbursements. A community may designate only one
government entity as the legal sponsor, even if it is applying as a
consortium that consists of two or more local government entities.
Private organizations may not be designated as the legal sponsor of a
grant under the Small Community Program. The community has the
responsibility to ensure that the legal sponsor and grant recipient of
any funding has the legal authority under state and local laws to carry
out all aspects of the grant, and the Department may require an opinion
of the legal sponsor's attorney as to its legal authority to act as a
sponsor and to carry out its responsibilities under the grant
agreement. The applicant should also provide the name of the signatory
party for the legal sponsor.
V. Air Service Development Zone Designation
As part of the Small Community Program, the Department may also
designate one grant recipient as an ``Air Service Development Zone''
(ASDZ).\11\ The purpose of the designation is to provide communities
interested in attracting business to the area surrounding the airport
and/or developing land-use options for the area to work with the
Department on means to achieve those goals. The Department will assist
the designated community in establishing contacts with and obtaining
advice and assistance from appropriate government agencies, including
the Department of Commerce and other offices within the Department of
Transportation, and in identifying other pertinent resources that may
aid the community in its efforts to attract businesses and to formulate
land-use options. However, the community receiving this designation
will be responsible for developing, implementing, and managing
activities related to the air service development zone initiative. Only
communities that are interested in these objectives and have a plan to
accomplish them should apply for this designation. There are no
additional funds associated with this designation, and applying for
this designation will provide no special benefits or priority to the
community applying for a SCASDP grant.
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\11\ See 49 U.S.C. 41743(h).
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Grant applicants interested in selection for the Air Service
Development Zone designation must include in their applications a
separate section, titled, Support for Air Service Development Zone
Designation. The community should provide as detailed a plan as
possible, including what goals it expects to achieve from the air
service development zone designation and the types of activities on
which it would like to work with the Department in achieving those
goals. The community should also indicate whether further local
government approvals are required in order to implement the proposed
activities.
VI. Grant Administration
Grant Agreements: Communities awarded grants are required to
execute a grant agreement with the Department before they begin to
expend funds under the grant award. Applicants should not assume they
have received a grant, nor should they obligate or expend local funds
prior to receiving and fully executing a grant agreement with the
Department. Expenditures made prior to the execution of a grant
agreement, including costs associated with preparation of the grant
application, will not be reimbursed. Moreover, there are numerous
assurances that grant
[[Page 17773]]
recipients must sign and honor when federal funds are awarded. All
communities receiving a grant will be required to accept and meet the
obligations created by these assurances when they execute their grant
agreements. Copies of assurances are available online at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, (click on ``SCASDP Grant Assurances'').
Payments: The Small Community Program is a reimbursable program;
therefore, communities are required to make expenditures for project
implementation under the program prior to seeking reimbursement from
the Department. Eligible project implementation costs are reimbursable
from grant funds only for services or property delivered during the
grant term. Reimbursement rates are calculated as a percentage of the
total federal funds requested divided by the federal funds plus the
local cash contribution (which is not refundable). The percentage is
determined by: (SCASDP Grant Amount) / (SCASDP Grant Amount + Local
Cash Contribution + State Cash Contribution, if applicable). For
example, if a community requests $500,000 in federal funding and
provides $100,000 in local contributions, the reimbursement rate would
be 83.33 percent: ((500,000)/(500,000 + 100,000)) = 83.33. Payments/
expenditures in forms other than cash (e.g., in-kind) are not
reimbursable.
Grantee Reports: Each grantee must submit quarterly reports on the
progress made during the previous quarter in implementing its grant
project. In addition, each community will be required to submit a final
report on its project to the Department, and 10 percent of the grant
funds will not be reimbursed to the community until such a final report
is received. Additional information on award administration for
selected communities will be provided in the grant agreement.
VII: Questions and Clarifications
For further information concerning the technical requirements set
out in this Order, please contact Brooke Chapman at
[email protected] or (202) 366-0577. A TDD is available for
individuals who are deaf or hard of hearing at (202) 366-3993. The
Department may post answers to questions and other important
clarifications in the above-captioned docket on www.regulations.gov and
on the program Web site at https://www.transportation.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.
This Order is issued under authority delegated in 49 CFR 1.25a(b).
Accordingly,
1. Applications for funding under the Small Community Air Service
Development Program should be submitted via www.grants.gov as an
attachment to the SF424 by 5:00 p.m. EDT, May 2, 2016; and
2. This Order will be published in the Federal Register, posted on
www.grants.gov and www.regulations.gov, and served on the United States
Conference of Mayors, the National League of Cities, the National
Governors Association, the National Association of State Aviation
Officials, County Executives of America, the American Association of
Airport Executives, and the Airports Council International--North
America.
Issued in Washington, DC on March 28, 2016.
By:
Susan L. Kurland,
Assistant Secretary for Aviation and International Affairs.
An electronic version of this document is available online at
www.regulations.gov.
Additional Information on Applying Through www.Grants.Gov
Applications must be submitted electronically through http://www.grants.gov/web/grants/applicants/apply-for-grants.html. To apply
for funding through www.grants.gov, applicants must be properly
registered. The Grants.gov/Apply feature includes a simple, unified
application process that makes it possible for applicants to apply for
grants online. There are five ``Get Registered'' steps for an
organization to complete at Grants.gov. Complete instructions on how to
register and apply can be found at http://www.grants.gov/web/grants/applicants/organization-registration.html. If applicants experience
difficulties at any point during registration or application process,
please call the www.grants.gov Customer Support Hotline at 1-800-518-
4726, Monday-Friday from 7:00 a.m. to 9:00 p.m. EDT.
Registering with www.grants.gov is a one-time process; however,
processing delays may occur and it can take up to several weeks for
first-time registrants to receive confirmation and a user password. It
is highly recommended that applicants start the registration process as
early as possible to prevent delays that may preclude submitting an
application by the deadlines specified. Applications must be submitted
and time-stamped not later than 5:00 p.m. EDT on May 2, 2016 (the
Application Deadline), and, as set forth below, failure to complete the
registration process before the Application Deadline is not a valid
reason to permit late submissions.
In order to apply for SCASDP funding through http://www.grants.gov/web/grants/applicants/apply-for-grants.html, all applicants are
required to complete the following:
1. DUNS Requirement. The Office of Management and Budget requires
that all businesses and nonprofit applicants for federal funds include
a Dun and Bradstreet Data Universal Numbering System (DUNS) number in
their applications for a new award or renewal of an existing award. A
DUNS number is a unique nine-digit sequence recognized as the universal
standard for identifying and keeping track of entities receiving
federal funds. The identifier is used for tracking purposes and to
validate address and point of contact information for federal
assistance applicants, recipients, and sub-recipients. The DUNS number
will be used throughout the grant life cycle. The DUNS number must be
included in the data entry field labeled ``Organizational DUNS'' on the
SF-424 form. Instructions for obtaining DUNS number can be found at the
following Web site: http://www.grants.gov/web/grants/applicants/organization-registration/step-1-obtain-duns-number.html.
2. System for Award Management. In addition to having a DUNS
number, applicants applying electronically through Grants.gov must
register with the federal System for Award Management (SAM). Step-by-
step instructions for registering with SAM can be found here: http://www.grants.gov/web/grants/applicants/organization-registration/step-2-register-with-sam.html. All applicants must register with SAM in order
to apply online. Failure to register with the SAM will result in your
application being rejected by Grants.gov during the submissions
process.
3. Username and Password. Acquire an Authorized Organization
Representative (AOR) and a www.grants.gov username and password.
Complete your AOR profile on www.grants.gov and create your username
and password. You will need to use your organization's DUNS Number to
complete this step. For more information about creating a profile on
Grants.gov visit: http://www.grants.gov/web/grants/applicants/organization-registration/step-3-username-password.html.
4. After creating a profile on Grants.gov, the E-Biz Point of
Contact (E-Biz POC)--a representative from your organization who is the
contact listed
[[Page 17774]]
for SAM--will receive an email to grant the AOR permission to submit
applications on behalf of their organization. The E-Biz POC will then
log in to Grants.gov and approve an applicant as the AOR, thereby
giving him or her permission to submit applications. To learn more
about AOR Authorization visit: http://www.grants.gov/web/grants/applicants/organization-registration/step-4-aor-authorization.html. To
track an AOR status visit: http://www.grants.gov/web/grants/applicants/organization-registration/step-5-track-aor-status.html.
Applicants are, therefore, encouraged to register early. The
registration process can take up to four weeks to be completed. Thus,
registration should be done in sufficient time to ensure it does not
impact your ability to meet required submission deadlines. You will be
able to submit your application online any time after you have approved
as an AOR.
5. Electronic Signature. Applications submitted through Grants.gov
constitute a submission as electronically signed applications. The
registration and account creation with Grants.gov with E-Biz POC
approval establishes an Authorized Organization Representative (AOR).
When you submit the application through Grants.gov, the name of your
AOR on file will be inserted into the signature line of the
application. Applicants must register the individual who is able to
make legally binding commitments for the applicant organization as the
Authorized Organization Representative (AOR);
6. Search for the Funding Opportunity on www.grants.gov. Please use
the following identifying information when searching for the SCASDP
funding opportunity on www.grants.gov. The Catalog of Federal Domestic
Assistance (CFDA) number for this solicitation is 20.930, titled
Payments for Small Community Air Service Development.
7. Submit an application addressing all of the requirements
outlined in this funding availability announcement. Within 24-48 hours
after submitting your electronic application, you should receive an
email validation message from www.grants.gov. The validation message
will tell you whether the application has been received and validated
or rejected, with an explanation. You are urged to submit your
application at least 72 hours prior to the due date of the application
to allow time to receive the validation message and to correct any
problems that may have caused a rejection notification.
8. Timely Receipt Requirements and Proof of Timely Submission.
Proof of timely submission is automatically recorded by Grants.gov. An
electronic timestamp is generated within the system when the
application is successfully received by Grants.gov. The applicant will
receive an acknowledgement of receipt and a tracking number from
Grants.gov with successful transmission of the application. Applicants
should print this receipt and save it, as a proof of timely submission.
9. Grants.gov allows applicants to download the application
package, instructions and forms that are incorporated in the
instructions, and work offline. In addition to forms that are part of
the application instructions, there will be a series of electronic
forms that are provided utilizing Adobe Reader.
a. Adobe Reader. Adobe Reader is available for free to download
from the Adobe Software Compatibility page: http://www.grants.gov/web/grants/applicants/adobe-software-compatibility.html. Adobe Reader
allows applicants to read the electronic files in a form format so that
they will look like any other Standard form. The Adobe Reader forms
have content sensitive help. This engages the content sensitive help
for each field you will need to complete on the form. The Adobe Reader
forms can be downloaded and saved on your hard drive, network drive(s),
or CDs.
b. Note: For the Adobe Reader, Grants.gov is compatible with
versions 9.0.0 and later versions. Always refer to the Adobe Software
Compatibility page for compatible versions for the operating system you
are using. Please do not use lower versions of the Adobe Reader.
c. Mandatory Fields in Adobe Forms. In the Adobe Reader forms, you
will note fields that will appear with a background color on the data
fields to be completed. These fields are mandatory fields and they must
be completed to successfully submit your application.
Note: When uploading attachments please use generally accepted
formats such as .pdf, .doc, and .xls. While you may imbed picture
files such as .jpg, .gif, .bmp, in your files, please do not save
and submit the attachment in these formats. Additionally, the
following formats will not be accepted: .com, .bat, .exe, .vbs,
.cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora, .sys, and .zip.
Experiencing Unforeseen www.grants.gov Technical Issues
Late Application Notice: Applicants who are unable to
successfully submit their application package through grants.gov
prior to the Application Deadline due to technical difficulties
outside their control must submit an email to [email protected]
with the following information:
The nature of the technical difficulties experienced in
attempting to submit an application;
A screenshot of the error;
The Legal Sponsor's name; and
The Grants.Gov tracking number (e.g. GRANT12345678).
DOT will consider late applications on a case-by-case basis and
reserves the right to reject late applications that do not meet the
conditions outlined in the Order Soliciting Small Community Grant
Proposals. Late applications from applicants that do not provide DOT an
email with the items specified above will not be considered.
If you experience unforeseen www.grants.gov technical issues beyond
your control that prevent you from submitting your application by the
Application Deadline, you must contact us at [email protected] or
[email protected] or (202) 366-1842 by 5:00 p.m. EDT the day
following the deadline and request approval to submit your application
after the deadline has passed. At that time, DOT staff will require you
to provide your DUNS number and your www.grants.gov Help Desk tracking
number(s). After DOT staff review all of the information submitted and
contact the www.grants.gov Help Desk to validate the technical issues
you reported, DOT staff will contact you to either approve or deny your
request to submit a late application through www.grants.gov. If the
technical issues you reported cannot be validated, your application
will be rejected as untimely.
To ensure a fair competition for limited discretionary funds, the
following conditions are not valid reasons to permit late submissions:
(1) Failure to complete the registration process before the deadline
date; (2) failure to follow www.grants.gov instructions on how to
register and apply as posted on its Web site; (3) failure to follow all
of the instructions in the funding availability notice; and (4)
technical issues experienced with the applicant's computer or
information technology (IT) environment.
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BILLING CODE 4910-9X-C
Confidential Commercial Information
Applicants will be able to provide certain confidential business
information relevant to their proposals on a confidential basis. Under
the Department's Freedom of Information Act regulations (49 CFR 7.17),
such information is limited to commercial or financial information
that, if disclosed, would either likely cause substantial harm to the
competitive position of a business or enterprise or make it more
difficult for the Federal Government to obtain similar information in
the future.
Applicants seeking confidential treatment of a portion of their
applications must segregate the confidential material in a sealed
envelope marked ``Confidential Submission of X (the applicant) in
Docket DOT-OST-2016-0037'' and include with that material a request in
the form of a motion seeking confidential treatment of the material
under 14 CFR 302.12 (``Rule 12'') of the Department's regulations. The
applicant should submit an original and two copies of its motion and an
original and two copies of the confidential material in the sealed
envelope.
The confidential material should not be included with the original
of the applicant's proposal that is submitted via www.grants.gov. The
applicant's original submission, however, should indicate clearly where
the confidential material would have been inserted. If an applicant
invokes Rule 12, the confidential portion of its filing will be treated
as confidential pending a final determination. All confidential
material must be received by 5:00 p.m. EDT, May 2, 2016, and delivered
to the U.S. Department of Transportation, Office of Aviation Analysis,
8th Floor, Room W86-307, 1200 New Jersey Ave. SE., Washington, DC
20590.
[FR Doc. 2016-07286 Filed 3-28-16; 4:15 pm]
BILLING CODE 4910-9X-P