[Federal Register Volume 86, Number 13 (Friday, January 22, 2021)]
[Notices]
[Pages 6733-6737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01359]


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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 Grants Application Deadlines.

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SUMMARY: Under the Small Shipyard Grant Program, $19,600,000 is 
currently available for grants to: (1) Make 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) provide training for 
workers in shipbuilding, ship repair, and associated industries. This 
notice announces the intention of the Maritime Administration (MARAD) 
to provide for grants to small shipyards. Federal Assistance Listing 
Number: 20.814 (formerly known as the Catalog of Federal Domestic 
Assistance Number). 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. Historically, the program has selected 
roughly 15-30 applications for funding with an average grant amount of 
about $1 million.

Timing of Grant Applications

    In accordance with the statutory requirement at 46 U.S.C. 
54101(f)(1) that applications must be submitted within 60 days of the 
Consolidated Appropriations Act, 2021 (Pub. L. 116-260, December 27, 
2020), applications must be received by MARAD by 5:00 p.m. EST on 
February 25, 2021. Applications received later than this time will not 
be considered. 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.

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 Avenue SE, Washington, DC 20590; phone: (202) 366-
5737; or fax: (202) 366-6988.

SUPPLEMENTARY INFORMATION: Grants under MARAD'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 Information
F. Federal Award Administration Information
G. Federal Awarding Agency Contacts
H. Other Information

A. Program Description

    The Small Shipyard Grant Program was authorized under Section 3501 
of the National Defense Authorization Act for Fiscal Year 2020 (Pub. L. 
116-92), codified at 46 U.S.C. 54101. The statute authorizes the 
Maritime Administrator to provide assistance in the form of

[[Page 6734]]

grants to make capital and related improvements in small shipyards and 
to provide training for workers in shipbuilding, ship repair, and 
associated industries. Federal Assistance Listing Number: 20.814 
(formerly known as the Catalog of Federal Domestic Assistance Number). 
The Consolidated Appropriations Act, 2021, appropriated $20,000,000 to 
the Small Shipyard Grant Program. Per 46 U.S.C. 54101, 2 percent of the 
funds may be set aside for grant administration. Therefore, the total 
amount available for grant awards is $19,600,000. 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, and grants will be awarded to further this 
purpose. Award recipients will be expected to comply with the 
performance goals and reporting requirements as outlined in the 
executed grant agreement, such as the completion of actions of the 
capital and related improvement projects or training projects 
completed.

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. MARAD intends to 
award the full amount of 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. MARAD 
will seek to obtain the maximum benefit from the available funding by 
awarding grants to as many of the worthiest projects as possible. MARAD 
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 MARAD. MARAD 
will administer each Small Shipyard Grant pursuant to a grant agreement 
with the Small Shipyard Grant recipient. 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 construct, repair, or reconfigure 
vessels 100 feet in length or greater for non-commercial vessels. Refer 
to section D.5, Funding Restrictions, for more information.

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. Third-
party in-kind contributions are not allowed to satisfy the matching 
requirement. 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. Refer to section D.2 for the 
documentation required to satisfy the matching requirement.

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.

4. Requirements for Products Produced in the United States

    As expressed in Executive Orders 13788 of April 18, 2017 and 13858 
of January 31, 2019, it is the policy of the executive branch to 
maximize, consistent with law, the use of goods, products, and 
materials produced in the United States in the terms and conditions of 
Federal financial assistance awards. Section 3507 of the National 
Defense Authorization Act for Fiscal Year 2020 included a requirement 
for Small Shipyard Grantees to comply with Buy America requirements, 
codified at 46 U.S.C. 54101(d)(2). Subject to few exceptions, these 
requirements state that no funds may be obligated by MARAD for this 
program unless each product or material purchased with these funds 
(including products and materials purchased by a grant recipient), and 
including any commercially available off-the-shelf item, is:
    (i) An unmanufactured article, material, or supply that has been 
mined or produced in the United States; or
    (ii) A manufactured article, material, or supply that has been 
manufactured in the United States substantially all from articles, 
materials, or supplies mined, produced, or manufactured in the United 
States.
    Applications that use grant funds for domestic-content purchases 
will be viewed more favorably. If a project intends to use any product 
with foreign content or of foreign origin, this information should be 
listed and addressed in the application. Applications should expressly 
address how the applicant plans to comply with domestic-preference 
requirements. If an applicant anticipates any potential foreign-content 
issues with its proposed project, applications should demonstrate that 
the domestic source is not available and how that determination was 
achieved. If certain foreign content is granted an exception from the 
Buy America requirements, a Cargo Preference requirement may apply.

D. Application and Submission Information

1. Address To Request Application Package

    This announcement contains all the information needed for 
applicants to apply for this funding opportunity. Applications must 
include the Standard Form 424 (Application for Federal Assistance), 
which is available on the

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Grants.gov website at https://www.grants.gov/web/grants/forms/sf-424-family.html.

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 
USB flash drives 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 Avenue 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 the 
following information as an addendum to the 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.
    Items 2(a) thru 2(f) should be repeated, in order, for each 
separate project included in the application.
    Section 3: A table with a prioritized list of projects with the 
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 1,200 production employees 
(the shipyard officer must certify to either (i) or (ii));
    (b) That the applicant has the authority to carry out the proposed 
project; and
    (c) In accordance with the U.S. 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 (e.g., loan agreement, commitment from 
investors, and cash on balance sheet) and in the timeline 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 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.
    Section 12: Consistent with the Department's R.O.U.T.E.S. 
Initiative (https://www.transportation.gov/rural), a strong 
transportation network is critical to the functioning and growth of the 
American economy. The nation's industry depends on the transportation 
network to move the goods that it produces, and facilitate the 
movements of the workers who are responsible for that production. When 
the nation's highways, railways, and ports function well, that 
infrastructure connects people to jobs, increases the efficiency of 
delivering goods and thereby cuts the costs of doing business, reduces 
the burden of commuting, and improves overall well-being. Rural 
transportation networks play a vital role in supporting our national 
economic vitality. Addressing the deteriorating conditions and 
disproportionately high fatality rates on our rural transportation 
infrastructure is of critical interest to the Department, as rural 
transportation networks face unique challenges in safety, 
infrastructure condition, and passenger and freight usage. Consistent 
with the R.O.U.T.E.S. Initiative, the Department encourages applicants 
to consider how the project will address the challenges faced by rural 
areas.
    Applicants should also state whether a project is located in a 
Qualified Opportunity Zone designated pursuant to 26 U.S.C. 1400Z-1.
    Additional information may be requested as deemed necessary by 
MARAD to facilitate and complete its review of the application. If such

[[Page 6736]]

information is not provided, MARAD may deem the application incomplete 
and cease processing it.
    Section 13: If a project intends to use any product with foreign 
content or of foreign origin, the application should expressly address 
how the applicant plans to comply with domestic preference requirements 
as described in section C.4 of this notice and 46 U.S.C. 54101(d)(2). 
If an applicant anticipates any potential foreign-content issues with 
its proposed project, applications should demonstrate that the domestic 
source is not available and how that determination was achieved.

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

    MARAD 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 at all times during which it has 
an active Federal award or an application or plan under consideration 
by a Federal awarding agency. Applicants may register with the SAM at 
www.SAM.gov. MARAD may not make a Federal award until the applicant has 
complied with all applicable unique entity identifier and SAM 
requirements and, if an applicant has not complied with the 
requirements by the time MARAD is ready to make a Federal award, MARAD 
may determine that the applicant is not qualified to receive a Federal 
award and use that determination as a basis for making a Federal award 
to another applicant.

4. Submission Dates and Times

    Applications must be received by MARAD by 5:00 p.m. EST on February 
25, 2021. Applications received later than this time will not be 
considered. MARAD 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 MARAD's Small Shipyard Grant Program may not be used 
to construct buildings or other physical facilities or to acquire land.
    Federal award recipients and subrecipients are prohibited from 
obligating or expending grant funds to procure or obtain; extend or 
renew a contract to procure or obtain; or enter into a contract (or 
extend or renew a contract) to procure or obtain equipment, services, 
or systems that uses covered telecommunications equipment or services 
as a substantial or essential component of any system, or as critical 
technology as part of any system. See Section 889 of Public Law 115-232 
(National Defense Authorization Act 2019).

6. Other Submission Requirements

    Applicants must submit an original paper copy of the application, 
and two USB flash drives 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 Avenue SE, Washington, DC 20590.

E. Application Review Information

1. Selection Criteria

    This section specifies the criteria that MARAD 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), MARAD 
will evaluate the applications based on 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.
    As a secondary criterion, 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.

2. Additional Considerations

(A) Opportunity Zones
    MARAD may also consider whether a project is located in a Qualified 
Opportunity Zone designated pursuant to 26 U.S.C. 1400Z-1.
(B) R.O.U.T.E.S.
    Consistent with the R.O.U.T.E.S. Initiative, the Department will 
consider how the project will address the challenges faced by rural 
areas under the Small Shipyard Grant Program. Rural transportation 
networks play a vital role in supporting our national economic 
vitality. Addressing the deteriorating conditions and 
disproportionately high fatality rates on our rural transportation 
infrastructure is of critical interest to the Department, as rural 
transportation networks face unique challenges in safety, 
infrastructure condition, and passenger and freight usage. The 
Department's R.O.U.T.E.S. Initiative can be found at (https://www.transportation.gov/rural).

2. Review and Selection Process

    MARAD 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 
MARAD'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. 
In addition, 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. The Senior Review Team will determine which 
projects to advance to the Secretary. In the third phase, the Secretary 
selects projects for final award.
    The Department will review and consider applications for funding 
pursuant to this notice in accordance with the President's September 2, 
2020 memorandum, entitled Memorandum on Reviewing Funding to State and 
Local Government Recipients of Federal Funds That Are Permitting 
Anarchy, Violence, and Destruction in American Cities, consistent with 
guidance from the Office of Management and Budget and the Attorney 
General, and with all applicable laws.

3. Federal Awardee Performance and Integrity Information System 
(FAPIIS) Check

    MARAD is required to review and consider any information about the

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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. MARAD 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 Information

1. Federal Award Notices

    Following the evaluation outlined in section E, and after the 
required notice to Congress, MARAD 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, MARAD will 
contact the point of contact listed in the SF-424 to initiate 
development of the grant agreement.

2. Administrative and National Policy Requirements

    All awards must be administered pursuant to applicable Federal 
laws, rules, and regulations of MARAD.
    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 MARAD 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.

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 Avenue 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 MARAD 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. MARAD protects such 
information from disclosure to the extent allowed under applicable law. 
In the event MARAD receives a Freedom of Information Act (FOIA) request 
for the information, MARAD will follow the procedures described in the 
Department of Transportation FOIA regulations at 49 CFR 7.29. 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, 
2021, Public Law 116-260, December 27, 2020.)

    Dated: January 15, 2021.

    By Order of the Chief Counsel in lieu of the Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2021-01359 Filed 1-21-21; 8:45 am]
BILLING CODE 4910-81-P