[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16423-16426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07846]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Small Shipyard Grant Program; Application Deadlines

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of Small Shipyard Grant application deadlines.

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SUMMARY: Under the Small Shipyard Grant Program, $19,600,000 is 
currently available for grants for capital and related improvements to 
qualified shipyard facilities that will be effective in fostering 
efficiency, competitive operations, and quality ship construction, 
repair, and reconfiguration. This notice announces the intention of the 
Maritime Administration to provide grants to small shipyards. Catalog 
of Federal Domestic Assistance Number: 20.814. Potential applicants are 
advised that it is expected, based on experience, that the number of 
applications will far exceed the funds available and that only a small 
percentage of applications will be funded. It is anticipated that 
roughly 8-20 applications will be selected for funding with an average 
grant amount of about $1 million. Applications must be received by the 
Maritime Administration by 5 p.m. EDT on May 22, 2018. Applications 
received later than this time will not be considered. The Administrator 
shall award grants not later than 120 days after the date of the 
enactment of the Appropriations Act for the fiscal year concerned.

ADDRESSES: Grant Applications should be sent to the Associate 
Administrator for Business and Finance Development, Room W21-318, 
Maritime Administration, 1200 New Jersey Avenue SE, Washington, DC 
20590. Only applicants who comply with all submission requirements 
described in this Notice will be eligible for award.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this notice, please contact David M. Heller, Director, Office of 
Shipyards and Marine Engineering, Maritime Administration, Room W21-
318, 1200 New Jersey Ave. SE, Washington, DC 20590; phone: (202) 366-
5737; or fax: (202) 366-6988.

SUPPLEMENTARY INFORMATION: Grants under the Maritime Administration's 
Small Shipyard Grant Program may not be used to construct buildings or 
other physical facilities or to acquire land. Grant funds may be used 
for maritime training programs to foster employee skills and enhanced 
productivity related to shipbuilding, ship repair, and associated 
industries. Grants for such training programs may only be awarded to 
``Eligible Applicants'' as described below, but training programs can 
be established through vendors to such applicants.

Table of Contents

A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review
F. Federal Award Administration
G. Federal Awarding Agency Contacts
H. Other Information

A. Program Description

    The Small Shipyard Grant Program was authorized under Section 3505 
of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 
115-91), codified at 46 U.S.C. 54101. The statute authorizes the 
Maritime Administrator to provide assistance in the form of grants to 
make capital and related improvements in small shipyards and to provide 
training for workers in shipbuilding, ship repair, and associated 
industries. The Consolidated Appropriations Act, 2018, appropriated 
$20,000,000 to the Small Shipyard Grant Program. The purpose of the 
Program is to foster efficiency, competitive operations, and quality 
ship construction, repair, and reconfiguration in small shipyards 
across the United States in addition to fostering employee skills and 
enhanced productivity related to shipbuilding, ship repair, and 
associated industries.

B. Federal Award Information

    Under the Small Shipyard Grant Program, $19,600,000 is available 
for grants for: (1) Capital and related improvements to qualified 
shipyard facilities that will be effective in fostering efficiency, 
competitive operations, and quality ship construction, repair, and 
reconfiguration; and (2) training projects that would be effective in 
fostering employee skills and enhanced productivity related to 
shipbuilding, ship repair, and associated industries. The Maritime 
Administration intends to award the full amount of the available 
funding through grants to the extent that there are worthy 
applications. No more than 25 percent of the funds available will be 
awarded to shipyard facilities in one geographic location that have 
more than 600 production employees. The Maritime Administration will 
seek to obtain the maximum benefit from the available funding by 
awarding grants to as many of the worthiest projects as possible. The 
Maritime Administration may partially fund applications by selecting 
parts of the total project. The start date and period of performance 
for each award will depend on the specific project and must be agreed 
to by the Maritime Administration. Amounts awarded as a grant under 
this Notice that are not expended by the recipient shall remain 
available to the Administrator for use for grants under this program, 
either in the same or different fiscal year as this Notice.

C. Eligibility Information

    To be selected for a Small Shipyard Grant, an applicant must be an 
Eligible Applicant and the project must be an Eligible Project.

1. Eligible Applicants

    Section 54101, Title 46, United States Code, provides that 
shipyards can apply for grants. The shipyard facility for which a grant 
is sought must be in a single geographic location and may not have more 
than 1,200 production employees. The applicant must be the operating 
company of the shipyard facility. The shipyard facility must construct, 
repair, or reconfigure vessels 40 feet in length or greater for 
commercial or government use, or

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construct, repair, or reconfigure vessels 100 feet in length or greater 
for non-commercial vessels.

2. Cost Sharing or Matching

    The Federal funds for any eligible project will not exceed 75 
percent of the total cost of such project. The remaining portion of the 
cost shall be paid in funds from or on behalf of the recipient. The 
applicant is required to submit detailed financial statements and 
supporting documentation demonstrating how and when such matching 
requirement is proposed to be funded as described below. The 
recipient's entire matching requirement must be paid prior to payment 
of any Federal funds for the project.

3. Eligible Projects

    Eligible projects include: (1) Capital and related improvement 
projects that will be effective in fostering efficiency, competitive 
operations, and quality ship construction, repair, and reconfiguration; 
and (2) training projects that will be effective in fostering employee 
skills and enhanced productivity related to shipbuilding, ship repair, 
and associated industries. For capital improvement projects, all items 
proposed for funding must be new and to be owned by the applicant. For 
both capital improvement and training projects, all project costs, 
including the recipient's share, must be incurred after the date of the 
grant agreement.

D. Application and Submission Information

1. Address for Application

    Applications must be filed on standard form SF-424, which is 
available on the Maritime Administration's website at 
www.marad.dot.gov.

2. Content and Form of Application Submission

    Although the form is available electronically, the application must 
be filed in hard copy as indicated below due to the amount of 
information requested. Applicants must submit an original paper copy of 
the application, one additional paper copy of the application, and two 
CDs each containing a complete electronic version of the application in 
PDF format to: Associate Administrator for Business and Finance 
Development, Room W21-318, Maritime Administration, 1200 New Jersey 
Ave. SE, Washington, DC 20590. A shipyard facility in a single 
geographic location applying for multiple projects must do so in a 
single application. The application for a grant must include all of the 
following information as an addendum to form SF-424. The information 
should be organized in sections as described below:
    Section 1: A description of the shipyard including (a) location of 
the shipyard; (b) a description of the shipyard facilities; (c) years 
in operation; (d) ownership; (e) customer base; (f) current order book 
including type of work; (g) vessels delivered (or major projects) over 
last 5 years; and (h) website address, if any.
    Section 2: For each project proposed for funding the following must 
be included:
    (a) A comprehensive detailed description of the project, including 
a statement of whether the project will replace existing equipment, and 
if so, the disposition of the replaced equipment.
    (b) A description of the need for the project in relation to 
shipyard operations and business plan and an explanation of how the 
project will fulfill this need.
    (c) A quantitative analysis demonstrating how the project will be 
effective in fostering efficiency, competitive operations, and quality 
ship construction, repair, or reconfiguration (for capital improvement 
projects) or how the project will be effective in fostering employee 
skills and enhanced productivity related to shipbuilding, ship repair, 
and associated industries. The analysis should quantify the benefits of 
the projects in terms of man-hours saved, dollars saved, percentages, 
or other meaningful metrics. The methodology of the analysis should be 
explained with assumptions used, identified and justified.
    (d) A detailed methodology and timeline for implementing the 
project.
    (e) A detailed itemization of the cost of the project together with 
supporting documentation, including current vendor quotes and estimates 
of installation costs.
    (f) A statement explaining if any elements of the project require 
action under the National Environmental Policy Act (42 U.S.C. 4321, et 
seq.) or require any licenses or permits.
    (g) A statement describing whether the project will be in, or will 
affect, a floodplain. If so, the statement should explain whether a 
practicable alternate siting location exists which would not be in, or 
affect, the floodplain. If alternate siting locations for the project 
are not practicable, the statement should describe the factors that 
prevent alternate siting and identify, as appropriate, ways in which 
the project may be modified to mitigate the long- and short-term 
adverse impacts associated with the occupancy and modification of a 
floodplain or the direct or indirect support of floodplain development.
    Items 2(a) thru 2(g) should be repeated, in order, for each 
separate project included in the application.
    Section 3: A table with a prioritized list of projects and total 
cost and Federal government share (in dollars) for each.
    Section 4: A description of any existing programs or arrangements, 
if any, which will be used to supplement or leverage the federal grant 
assistance.
    Section 5: Shipyard company officer's certification of each of the 
following requirements:
    (a) That the shipyard facility for which a grant is sought is in a 
single geographic location and (i) the shipyard facility has no more 
than 600 production employees, or (ii) the shipyard facility has more 
than 600 production employees, but less than 1200 production employees 
(the shipyard officer must certify to one or the other of (i) or (ii));
    (b) That the applicant has the authority to carry out the proposed 
project; and
    (c) In accordance with the Department of Transportation's 
regulation restricting lobbying, 49 CFR part 20, that the applicant has 
not, and will not, make any prohibited payments out of the requested 
grant. Certifications are not required to be notarized.
    Section 6: Unique entity identifier of shipyard's parent company 
(when applicable): Data Universal Numbering System (DUNS + 4 number) 
(when applicable).
    Section 7: The most recent year-end audited, reviewed or compiled 
financial statements, prepared by a certified public accountant (CPA), 
per U.S. generally accepted accounting principles (not tax-based 
accounting financial statements). If CPA prepared financial statements 
are not available, provide the most recent financial statement for the 
entity. Do not provide tax returns.
    Section 8: Statement regarding the relationship between applicants 
and any parents, subsidiaries or affiliates, if any such entity is 
going to provide a portion of the match.
    Section 9: Evidence documenting applicant's ability to make 
proposed matching requirement (loan agreement, commitment from 
investors, cash on balance sheet, etc.) and in the times outlined in 
2(d) above.
    Section 10: Pro-forma financial statements reflecting (a) financial 
condition beginning of period; (b) effect on balance sheet of grant and 
matching funds (e.g., a decrease in cash or

[[Page 16425]]

increase in debt, additional equity and an increase in fixed assets); 
and (c) impact on company's projected financial condition (balance 
sheet) of completion of project, showing that company will have 
sufficient financial resources to remain in business.
    Section 11: Statement whether during the past five years, the 
applicant or any predecessor or related company has been in bankruptcy 
or in reorganization under Chapter 11 of the Bankruptcy Code, or in any 
insolvency or reorganization proceedings, and whether any substantial 
property of the applicant or any predecessor or related company has 
been acquired in any such proceeding or has been subject to foreclosure 
or receivership during such period. If so, give details.
    Additional information may be requested as deemed necessary by the 
Maritime Administration to facilitate and complete its review of the 
application. If such information is not provided, the Maritime 
Administration may deem the application incomplete and cease processing 
it.

3. Unique Entity Identifier and System for Award Management (SAM)

    The Maritime Administration may not make a Small Shipyard Grant 
Award to an applicant until the applicant has complied with all 
applicable unique entity identifier and SAM requirements.
    Each applicant must be registered in SAM before submitting its 
application, provide a valid unique entity identifier number in its 
application, and maintain an active SAM registration with current 
information throughout the period of the award. Applicants may register 
with the SAM at www.SAM.gov. If an applicant has not fully complied 
with the requirements by the submission deadline, the application will 
not be considered.

4. Submission Dates and Times

    Applications must be received by the Maritime Administration by 5 
p.m. EDT on May 22, 2018. Applications received later than this time 
will not be considered. The Maritime Administration encourages 
applicants to submit applications using a carrier and method that will 
provide proof and time of delivery. The Administrator shall award 
grants under this section not later than 120 days after the date of the 
enactment of the Appropriations Act for the fiscal year concerned.

5. Funding Restrictions

    Grants under the Maritime Administration's Small Shipyard Grant 
Program may not be used to construct buildings or other physical 
facilities or to acquire land.

6. Other Submission Requirements

    Applicants must submit an original paper copy of the application, 
one additional paper copy of the application, and two compact discs 
(CDs) each containing a complete electronic version of the application 
in PDF format to: Associate Administrator for Business and Finance 
Development, Room W21-318, Maritime Administration, 1200 New Jersey 
Ave. SE, Washington, DC 20590.

E. Application Review

1. Selection Criteria

    This section specifies the criteria that the Maritime 
Administration will use to evaluate and award applications for Small 
Shipyard grants. The criteria incorporate the statutory eligibility 
requirements for this Program, which are specified in this notice as 
relevant.
    Consistent with the requirements of 46 U.S.C. 54101(b)(1), the 
Maritime Administration will evaluate the applications on the basis of 
how effective the project will be in fostering efficiency, competitive 
operations, and quality ship construction, repair, and reconfiguration 
(for capital improvement projects) or how effective the project will be 
in fostering employee skills and enhancing productivity related to 
shipbuilding, ship repair, and associated industries.

2. Review and Selection Process

    The Maritime Administration reviews all eligible applications 
received before the deadline. The Small Shipyard Grant review and 
selection process consists of three phases: Technical Review, Senior 
Review, and Final Selection. In the Technical Review phase, a Review 
Panel made up of technical experts, including naval architects and 
engineers from the Maritime Administration's Office of Shipyards and 
Marine Engineering will review all timely applications. Additional 
input may be provided to the Review Panel on economic issues by the 
Office of Financial Approvals, on environmental issues by the Office of 
Environment, and on legal issues by the Office of Chief Counsel. The 
Review Panel will assign a rating of ``Highly Recommended,'' 
``Recommended,'' or ``Not Recommended'' based on how well the 
applications align with the selection criteria. As a secondary 
criteria, higher considerations for award shall be made if applicants' 
percentage match contribution toward the overall project is greater 
than the minimum and greater than other competing grant applications.
    In the second review phase, the Senior Review Team, which is led by 
the Maritime Administrator, will consider applications based upon the 
input of the Review Panel and apply key Departmental objectives: 
Supporting economic vitality at the national and regional level; 
Utilizing alternative funding sources and innovative financing models 
to attract non-Federal sources of infrastructure investment; Accounting 
for the life-cycle costs of the project to promote the state of good 
repair; Using innovative approaches to improve safety and expedite 
project delivery; and, Holding grant recipients accountable for their 
performance and achieving specific, measurable outcomes identified by 
grant applicants.
    The Senior Review Team will determine which projects to advance to 
the Secretary. In the third phase, the Secretary selects projects for 
final award.

3. FAPIIS Check

    The Maritime Administration is required to review and consider any 
information about the applicant that is in the designated integrity and 
performance system accessible through SAM (currently FAPIIS) (see 41 
U.S.C. 2313). An applicant, at its option, may review information in 
the designated integrity and performance systems accessible through SAM 
and comment on any information about itself that a Federal awarding 
agency previously entered and is currently in the designated integrity 
and performance system accessible through SAM. The Maritime 
Administration will consider any comments by the applicant, in addition 
to the other information in the designated integrity and performance 
system, in making a judgment about the applicant's integrity, business 
ethics, and record of performance under Federal awards when completing 
the review of risk posed by applicants.

F. Federal Award Administration

1. Federal Award Notices

    Following the evaluation outlined in Section E, and after the 
required notice to Congress, the Maritime Administration will announce 
awarded projects by posting a list of selected projects at 
www.marad.dot.gov/ships-and-shipping/small-shipyard-grants. Following 
the announcement, the Maritime Administration will contact the point of 
contact listed in the SF-424 to initiate development of the grant 
agreement.

[[Page 16426]]

2. Administrative and National Policy Requirements

    All awards must be administered pursuant to applicable Federal 
laws, rules, and regulations of the Maritime Administration.
    Federal wage rate requirements included in Subchapter IV of Chapter 
31 of Title 40, United States Code, apply to all projects receiving 
funds under this Program, and apply to all parts of the project, 
whether funded with Small Shipyard Grant funds, other Federal funds, or 
non-Federal funds.

3. Reporting

    Each applicant selected for a Small Shipyard capital or training 
grant will be required to work with the Maritime Administration on the 
development and implementation of a plan to collect information and 
report on the project's performance with respect to the relevant long-
term outcomes that are expected to be achieved through the capital 
project or training. Performance indicators will not include formal 
goals or targets, but will require analysis of post-project outcomes, 
which will inform the Small Shipyard Grant Program in working towards 
best practices, programmatic performance measures, and future decision-
making guidelines.

4. Requirements for Products Produced in the United States

    Consistent with the requirements of Section 410 of Division L--
Transportation, Housing and Urban Development, and Related Agencies 
Appropriations Act, 2018, of the Consolidated Appropriations Act of 
2018 (Pub. L. 115-141), the Buy American requirements of 41 U.S.C. 
Chapter 83 apply to funds made available under this Notice of Funding 
Opportunity.

G. Federal Awarding Agency Contacts

    For further information concerning this notice please contact David 
M. Heller, Director, Office of Shipyards and Marine Engineering, 
Maritime Administration, Room W21-318, 1200 New Jersey Ave. SE, 
Washington, DC 20590; phone: (202) 366-5737; or fax: (202) 366-6988. To 
ensure applicants receive accurate information about eligibility or the 
Program, you are encouraged to contact the Maritime Administration 
directly, rather than through intermediaries or third parties, with 
questions.

H. Other Information

    All information submitted as part of or in support of any 
application shall use publicly available data or data that can be made 
public and methodologies that are accepted by industry practice and 
standards, to the extent possible. If the application includes 
information you consider to be a trade secret or confidential 
commercial or financial information, you should do the following: (1) 
Note on the front cover that the submission ``Contains Confidential 
Business Information (CBI);'' (2) mark each affected page ``CBI;'' and 
(3) highlight or otherwise denote the CBI portions. The Maritime 
Administration protects such information from disclosure to the extent 
allowed under applicable law. In the event the Maritime Administration 
receives a Freedom of Information Act (FOIA) request for the 
information, the Maritime Administration will follow the procedures 
described in the Department of Transportation FOIA regulations at 49 
CFR 7.17. Only information that is ultimately determined to be 
confidential under that procedure will be exempt from disclosure under 
FOIA.

(Authority: 46 U.S.C. 54101 and the Consolidated Appropriations Act, 
2018, Pub. L. 115-141.)

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    Dated: April 11, 2018.

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2018-07846 Filed 4-13-18; 8:45 am]
 BILLING CODE 4910-81-P