Tech Hubs NOFO 2 FINAL (1).pdf

NOTICE OF FUNDING OPPORTUNITY

EXECUTIVE SUMMARY

• Federal Agency Name: Economic Development Administration (EDA or the Agency), U.S. Department of Commerce (DOC).

• Federal Funding Opportunity Title: FY 2023 Regional Technology and Innovation Hub Program Phase 2 Notice of Funding Opportunity (NOFO) (Tech Hubs Phase 2 NOFO).

• Announcement Type and Date: Tech Hubs Phase 2 NOFO publishing EDA’s application submission requirements and application review procedures under the Regional Technology and Innovation Hub Program, as authorized by section 28 of the Stevenson-Wydler Technology Innovation Act of 1980, as amended (15 U.S.C. § 3722a). Effective date: October 23, 2023.

• Funding Opportunity Number: EDA-TECHHUBSPHASE2-2023

• Catalog of Federal Domestic Assistance (CFDA) Number: 11.039, Regional Technology and Innovation Hub

• Dates: This is Phase 2 of a two-phase competition. The deadline for Phase 2 applications is 4:59 p.m.

Eastern Time on February 29, 2023. Applications received after this deadline will not be reviewed or considered. Only applicants that EDA Designated as Tech Hubs in Phase 1 will be permitted to apply to Phase 2.

EDA may amend, cancel, or withdraw the Tech Hubs Phase 2 NOFO at any time. All changes will be communicated via Grants.gov.

• Eligible Applicants: Pursuant to section 28(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. § 3722a(c)), consortia that EDA Designated as Tech Hubs under the Phase 1 NOFO are eligible applicants under this NOFO. An eligible consortium must include one or more of each of the following: (i) institutions of higher education, which may include Historically Black Colleges and Universities, Tribal Colleges or Universities, and Minority-Serving Institutions; (ii) State, territorial, local, or Tribal governments or other political subdivisions of a State, or a consortium thereof; (iii) industry groups or firms in relevant technology, innovation or manufacturing sectors; (iv) economic development organizations or similar entities focused primarily on improving science, technology, innovation, entrepreneurship, or access to capital; and (v) labor organizations or workforce training organizations. See section A.1.b.iii. for additional requirements related to consortia. See section C.1.

of this NOFO for a list of other entities that may also be part of a consortium.

Under this NOFO, EDA is not authorized to provide grants or cooperative agreements to individuals.

Requests from individuals will not be considered for funding.

• Funding Opportunity Description: Subject to the availability of funds, awards made under this NOFO will seek to strengthen U.S. economic and national security through place-based investments in regions with the assets, resources, capacity, and potential to become globally competitive Tech Hubs, within approximately ten years, in the technologies and industries of the future, and for those industries, companies, and the good jobs they create to start, grow, and remain in the United States.

Through this NOFO, EDA will award approximately $50-75 million in implementation grants to each of approximately 5-10 Designated Tech Hubs.

FULL ANNOUNCEMENT TEXT

FY 2023 EDA Regional Technology and Innovation Hub Phase 2 Notice of Funding Opportunity

A. Program Description

1. Competition Structure and Program Information

a. Competition Structure ………………………………………………………………………………………………………….4

b. General Requirements ……………………………………………………………………………………………………….…5

c. Implementation Grants ……………………………………………………………………………………………………

2. Statutory Authorities for EDA’s Tech Hubs Program

B. Federal Award Information

1. What Funding Is Available Under this Announcement?

2. What Type of Funding Instrument Will Be Used to Make Awards? How Long Will a Project’s Period of Performance Be?

C. Eligibility Information

1. Eligible Applicants

2. Cost Sharing or Matching

D. Application and Submission Information

1. Obtaining an Application and Electronic Submission through EDGE

2. Content and Form of Application Submission

3. Submission Dates and Times

4. Intergovernmental Review

5. Funding Restrictions

6. Other Submission Requirements

7. EDGE Systems Issues

E. Application Review Information

1. Criteria, Review, and Selection Process

2. Selection Official’s Decision

3. Review of Responsibility/Qualification Information in SAM.gov

F. Federal Award Administration Information

1. Federal Award Notice

2. Administrative and National Policy Requirements

3. Reporting

G. Federal Awarding Agency Contact

H. Other Information

1. Right to Use Information

2. Freedom of Information Act Disclosure

3. Notice of Government-Wide Procurement Restriction

4. Past Performance and Non-Compliance with Award Provisions

5. Certifications Required by Annual Appropriations Acts for Corporations and for Awards over $5 Million

6. EDA’s Non-Relocation Policy

7. NOFO Changes Communicated on Grants.gov

8. Disclosure of Information

9. Audit Requirements

10. Fraud Awareness Training

11. Office of Inspector General Rights and Responsibilities

Section A: Program Description

A. Program Description

1. Competition Structure and Program Information

a. Competition Structure

Through the Regional Technology and Innovation Hub Program (Tech Hubs Program), and in line with 15 U.S.C. § 3722a(b)(1), EDA seeks to strengthen U.S. economic and national security through place-based investments in regions with the assets, resources, capacity, and potential to become globally competitive, within approximately ten years, in the technologies and industries of the future. These investments aim to enable those industries, companies, and the good jobs they create to start, grow, and remain in the U. S. The Tech Hubs Program will support the growth and modernization of U.S.

manufacturing and improve commercialization and domestic production of innovative research.

The Tech Hubs Program aims to identify and invest in regions where an EDA investment can catalyze self-sustaining growth that centers on a selected core technology area and that leads to global competitiveness over the next decade. To achieve this goal and fulfill statutory direction, EDA has and will continue to run this two-phase competition with a focus on geographic diversity and equity.

Through the Phase 1 Notice of Funding Opportunity (NOFO), EDA funded Strategy Development Grants and Designated certain regions as Regional Technology and Innovation Hubs (Tech Hubs). Under this Phase 2 NOFO, consortia that EDA Designated as Tech Hubs will compete for funding for Implementation projects to help propel the Hub’s chosen geography into self-sustaining global competitiveness.

Implementation Grants can fund a wide range of non-construction and construction activities that aim to increase regional capacity to demonstrate, deploy, and commercialize innovative technology products and services across four broad categories: workforce development, business and entrepreneur development, technology maturation, and infrastructure.1 This large suite of eligible activities is designed to meet the individual needs of a particular region and what it specifically needs to catalyze it becoming a sustainable, globally competitive Tech Hub in its consortium’s selected core technology area. Implementation Grant activities should not only complement but be aligned with other relevant Federal investments, including those in relevant innovation, technologies, industries, and places;2 applicants must make a strong case for complementarity of other relevant Federal investments in or connected to their Hub, demonstrate that Implementation Grant-funded activities are most aligned with the purpose of the Tech Hubs program, indicate the but-for impacts of Tech Hubs funding, and ensure there is no overlap in funding for specific activities.3

Within each Tech Hub selected for Implementation Grants, EDA expects to fund approximately 3-8 tightly aligned projects that aim to collectively address the region’s key inhibitors of global

1 See 15 U.S.C. § 3722a(f)(2) and section A.1.c.i.(3) and (4) below for a more comprehensive list of allowable activities within these four broad categories.

2 E.g., the Regional Innovation Engines, Industry–University Cooperative Research Centers (IUCRC), and Engineering Research Centers (ERC) programs of the National Science Foundation (NSF), funding opportunities administered by CHIPS for America at the National Institutes of Standards and Technology (NIST), the Regional Clean Hydrogen Hub (H2Hubs) program of the Office of Clean Energy Demonstrations (OCED) within the Department of Energy (DOE), and Inflation Reduction Act clean energy manufacturing and deployment tax credits.

3 Federal funding can only be used as match where explicitly authorized by statute. See 2 C.F.R. § 200.306(b)(5).

competitiveness.4 EDA’s aggregate investment into each selected Hub’s projects will likely total approximately $50-75 million.

b. General Requirements

As was expected in Phase 1 of the Tech Hubs competition, there are several general requirements that EDA similarly expects will be addressed in the application materials for Phase 2 (see sections A.1.c. and D.2. below).

i. What constitutes a region for purposes of the Tech Hubs Competition?

EDA defines a Hub’s geography as a Metropolitan Statistical Area (MSA) or a similar area (including Micropolitan Statistical Areas (μSAs) or tightly interconnected combinations of MSAs and/or μSAs)5 with a concentration of assets, capital, R&D, labor market, and infrastructure strongly relevant to the Hub’s selected core technology area, the Hub’s identified market opportunity, and its potential to become globally competitive in that area within a decade. Applicants identified their chosen geography in Phase 1 and must retain it in their Phase 2 application. Applicants should consider their chosen geography as the nexus of the Tech Hub but may include partnerships outside that geography as part of the hub.

Consortia may include assets or members outside the chosen geography—e.g., in nonmetro rural areas or partnerships with geographically distant but tightly mission-aligned organizations—that support the consortia’s strategy and benefit the Hub. A substantial majority of the benefits (e.g., job creation and retention, worker placements, capital formation and deployment, firm creation and growth) expected to result from EDA funding should accrue within the Tech Hub.

ii. What technologies are considered key focus areas?

Consortia that EDA Designated as Tech Hubs in Phase 1 identified respective selected core technology areas within or at the intersection of one or more of the key technology focus areas (KTFAs) listed below.

Key technology focus areas under this NOFO are:

(1) Artificial intelligence, machine learning, autonomy, and related advances;

(2) High performance computing, semiconductors, and advanced computer hardware and software;

(3) Quantum information science and technology;

(4) Robotics, automation, and advanced manufacturing;

(5) Natural and anthropogenic disaster prevention or mitigation;

(6) Advanced communications technology and immersive technology;

(7) Biotechnology, medical technology, genomics, and synthetic biology;

(8) Data storage, data management, distributed ledger technologies, and cybersecurity, including biometrics;

(9) Advanced energy and industrial efficiency technologies, such as batteries and advanced nuclear technologies, including but not limited to for the purposes of electric generation (consistent with 42 U.S.C. § 1874); and

4 The statutory authority envisions possible future investments for consortia that receive Implementation funding.

This may be possible in the future depending on future-year Congressional appropriations.

5 See https://www.whitehouse.gov/wp-content/uploads/2023/07/OMB-Bulletin-23-01.pdf https://www.census.gov/geographies/reference-maps/2020/demo/state-maps.html for current list of MSAs and μSAs.

https://www.whitehouse.gov/wp-content/uploads/2023/07/OMB-Bulletin-23-01.pdf https://www.census.gov/geographies/reference-maps/2020/demo/state-maps.html

(10) Advanced materials science, including composites 2D materials, other next-generation materials, and related manufacturing technologies.

This list is drawn from 42 U.S.C. § 19107, as directed by the Tech Hubs statute.6 Consortia that EDA Designated as Tech Hubs in Phase 1 must retain the respective selected core technology areas that were identified in their Phase 1 applications, which map to the above list. Phase 2 applicants may refine or elaborate on their approach to their respective selected core technology area and should include in their application materials their rationale and supporting evidence or analysis for their approach. Consortia that EDA Designated as Tech Hubs in Phase 1 should represent chosen geographies that have the potential to become, within a reasonable time, self-sustaining and globally competitive in the industries that are related to their respective selected core technology areas and that are critical to economic and national security.

Note that the Tech Hubs program is not intended to fund basic and fundamental research nor activities intended to increase capacity to conduct such research; the National Science Foundation, the Department of Energy, and several other agencies fund such activities. Instead, the Tech Hubs program is intended to advance the capacities of places to commercialize, deploy, and domestically manufacture and deliver these technologies. All projects funded under both phases of the Tech Hubs Program should increase the speed and effectiveness with which industry and other organizations transition technologies upward from Technology Readiness Levels six through nine.7

iii. What entities are eligible to apply for Implementation Grants?

Only consortia that EDA Designated as Tech Hubs in Phase 1 of the Tech Hubs Program are eligible to apply for grants under Phase 2 of the Tech Hubs Program. However, the membership of the consortia may evolve between Phase 1 and Phase 2.

For purposes of this program, each consortium must include at least one of each of the following entity types:

(1) Institutions of higher education, which may include Historically Black Colleges and Universities, Tribal Colleges or Universities, and Minority-Serving Institutions;

(2) State, territorial, local, or Tribal governments or other political subdivisions of a State, including State and local agencies, or a consortium thereof;

(3) Industry groups or firms in relevant technology, innovation, or manufacturing sectors;

(4) Economic development organizations or similar entities that are focused primarily on improving science, technology, innovation, entrepreneurship, or access to capital; and

(5) Labor organizations or workforce training organizations, which may include State and local workforce development boards.

EDA encourages two or more firms directly relevant to the consortium’s selected core technology area to participate as members of the consortium. EDA will be evaluating the quality of the firms’ proposed

6 The National Science Foundation is required to review and update this list annually. For the purposes of both phases of the Tech Hubs Competition, EDA is relying on the initial list enacted by Congress at 42 U.S.C. § 19107(c).

7 Different objectives and technology domains require different TRL definitions, but most TRL scales have nine levels. See, e.g., U.S. Gov’t Accountability Off., Technology Readiness Assessment Guide, GAO-20-48G, App. IV at 115-21 (Jan. 2020), available at https://www.gao.gov/assets/gao-20-48g.pdf. Because this program seeks to advance technologies across a broad array of domains, EDA is not selecting specific TRL definitions but is adopting the common nine-level structure.

https://www.gao.gov/assets/gao-20-48g.pdf participation in the consortium, rather than the quantity of firms participating in it. EDA also encourages the participation of labor organizations, including state labor federations, or other organizations representing workers as direct members of the consortium. EDA expects that all members, including labor unions and federations, will be given equal opportunity to participate in their respective consortia’s efforts.

Consortia may also include one or more of:

(1) Economic development entities with relevant expertise, including a district organization;

(2) Organizations that contribute to increasing the participation of underserved populations in science, technology, innovation, and entrepreneurship;

(3) Venture development organizations;

(4) Organizations that promote local economic stability, high-wage domestic jobs, and broad-based economic opportunities, such as employee ownership membership associations and State or local employee ownerships and cooperative development centers, financial institutions and investment funds, including community development financial institutions and minority depository institutions;

(5) Elementary schools and secondary schools, including area career and technical education schools;

(6) National Laboratories;

(7) Federal laboratories;

(8) Manufacturing extension centers;

(9) Manufacturing USA Institutes;

(10) Transportation planning organizations;

(11) A cooperative extension services;

(12) Organizations that represent the perspectives of underserved communities in economic development initiatives; and

(13) Institutions receiving an award under the National Science Foundation’s (NSF) Regional

Innovation Engines program.

EDA again will evaluate the consortium based on the quality of the partnerships and the relevance of the members to the consortium’s strategy. A more complete description of the above entities may be found in section C.1. of this NOFO.

Consortia may change their membership between Phase 1 and Phase 2, and EDA expects that the exact membership of the consortium may change over time. EDA will view such changes as positive if more meaningfully contributing members join or if the membership is refined to align with the Phase 2 Implementation plan or otherwise increase the likelihood or magnitude of inclusive economic impacts and stronger national and economic security. Applicants should describe how new members or other membership changes improve the likelihood or magnitude of success. However, at minimum the consortium must contain the five required member types, even if one or more of the consortium’s required members change.

iv. Are there any special considerations on how we organize the consortia?

EDA does not require that the consortium have a formal legal structure (i.e., a contractual arrangement or public-private partnership). EDA, however, does expect that consortium members are actively collaborating and aligned behind the content of their Phase 2 application.

EDA requires that each consortium identify a lead member, which commits to:

• be the principal applicant for the Phase 2 implementation Grant and provide the overarching project narrative;

• serve as EDA’s main point of contact during the competition and implementation;

• be the employer of the Regional Innovation Officer (RIO) or otherwise be the organization, institution, or other entity to which the RIO is primarily accountable ;

• serve as the central coordinator of the consortium by leading or otherwise having a significant role in the consortium’s governance;

• convene public, private, academic, labor, and civic leaders to facilitate regional cohesiveness in maximizing the Hub’s competitiveness;

• establish and maintain communication between the consortium and EDA to enable and accelerate collaboration and support;

• ensure funding and other assistance provided by EDA and any other partners are absorbed effectively within communities;

• ensure that the consortium is communicating and coordinating activities and outcomes; and

• timely and proactively identify challenges and barriers to execution and impact of individual projects or across projects, communicate those challenges to EDA, and independently or in collaboration with EDA identify solutions, alternative approaches, and necessary resources.

The lead member also may receive funding for specific implementation project(s) in Phase 2. The lead member may change from Phase 1 to Phase 2, but the consortium should explain the rationale for the change in its application materials.

Letters of commitment should reconfirm and further detail Phase 1 application commitments, and applicants should demonstrate new commitments with additional letters of commitment. Such commitments may include but are not limited to hiring, match funding and other capital, or policy change commitments aligned with increasing the competitiveness of the Tech Hub. In lieu of a separate commitment letter, consortium member commitments may also be evidenced through individual applications for Component Projects. Commitments from entities outside the consortium or from consortium members that are not applying for a Component Project related to their commitments must be documented in a letter of commitment paired with a completed Commitment Form (see section D.2.a).

v. What is the purpose of the Regional Innovation Officer (RIO)?

A common problem within regional innovation ecosystems is the lack of cross-institutional leadership.

While chambers of commerce and other civic institutions represent the regional economy, the rules, processes, and programs that drive innovation can be locked within firms and research institutions. This fragmentation of practices can hurt a region’s ability to increase its scale and make it difficult for external firms, investors, entrepreneurs, and workers to collaborate and succeed in the region. The RIO will lead the Hub’s overall innovation agenda and strategy. EDA requires that in Phase 2 each applicant identify the RIO and their responsibilities. Additionally, the RIO will be accountable for ensuring clear and effective governance and leadership of the consortium. Further, EDA requires applicants to provide the RIO’s resume.

vi. How should applicants consider climate and environmental responsibility?

Industries can both reduce their environmental impact and further their competitive advantage by pursuing net-zero goals and accounting for current and future weather- and climate-related risks.

Applicants are expected to design their projects to minimize the potential for adverse impacts on the environment and the local community, including communities with environmental justice concerns.

Applicants should also account for or have a plan to account for current and future weather- and climate-related risks, such as wildfires, droughts, extreme heat and cold, inland and coastal flooding, and the extreme winds produced by tornadoes, hurricanes, and other weather events. EDA encourages applicants to use the Climate and Economic Justice Screening Tool (CEJST) when accounting for environmental and climate-related impacts and risks.8

vii. How should applicants consider equity?

Consistent with Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities through the Federal Government and Executive Order 14091, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, and EDA’s Equity Investment Priority, EDA expects projects to advance equity to underserved and underrepresented populations.9

Specifically, applicants are expected to explain how the project will benefit underserved populations and communities and how the project will provide for inclusive community engagement, including descriptions of the populations applicants will serve and how applicants will measure whom projects serve and how. See section A.1.c.i. for more detail on how equity should be addressed in the required application materials.

viii. Are there any restrictions related to the ownership or participation of certain consortia members?

The Tech Hubs program seeks to strengthen economic and national security. Consistent with these goals, the statute directs the Secretary to consider thirteen factors in selecting eligible consortia for implementation awards, many of which relate to the consortium’s ability to contribute to “technology or innovation sector[s] critical to national security and economic competitiveness.” 15 U.S.C. § 3722a(h)(1), (4), (5), (6), (7). The Secretary must also consider whether an eligible consortium will “enhance the economic, environmental, and energy security of the United States by promoting domestic development, manufacture, and deployment of innovative clean technologies and advanced manufacturing practices.” Id. § 3722a(h)(13)(A). The Secretary “may specify” the “information” that an applicant consortium must provide to enable such consideration. Id. § 3722a(g).

To effectuate these goals and considerations, EDA prohibits all participation, including but not limited to membership, of foreign entities of concern (FEOCs) in Tech Hubs consortia. FEOCs are entities that are owned by, controlled by, or subject to the jurisdiction or direction of a foreign country of concern as defined in 10 U.S.C. § 4872(d)(2). See 15 C.F.R. Part 231. Foreign entities outside this category may be members of Tech Hubs consortia. Moreover, EDA will not approve any applications where an FEOC—

8 The CEJST is a geospatial mapping tool that identifies areas across the nation where communities are faced with significant burdens. It was developed and deployed pursuant to Executive Order 14008, Tackling the Climate Crisis at Home and Abroad § 222(a), 86 F.R. 7619, 7631 (Jan. 27, 2021); see also Exec. Off. Pres., Climate and Economic Justice Screening Tool: Frequently Asked Questions, available at https://www.whitehouse.gov/wp-content/uploads/2022/02/CEQ-CEJST-QandA.pdf.

9 Underserved and underrepresented populations and communities include but are not limited to persons who rent their home; racial and ethnic minorities; members of religious minorities; women; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) populations; limited English proficiency (LEP) populations; persons with disabilities; and racially and ethnically concentrated areas of poverty, among other communities. See, e.g., Econ.

Dev. Admin., Investment Priorities Definitions (Jun. 13, 2023), available at https://www.eda.gov/sites/default/files/2022-06/EDA-FY21-Investment-Priorities-Definitions.pdf#Underserved- Populations.

https://toolkit.climate.gov/tool/climate-and-economic-justice-screening-tool https://www.whitehouse.gov/wp-content/uploads/2022/02/CEQ-CEJST-QandA.pdf https://www.whitehouse.gov/wp-content/uploads/2022/02/CEQ-CEJST-QandA.pdf https://www.eda.gov/sites/default/files/2022-06/EDA-FY21-Investment-Priorities-Definitions.pdf#Underserved-Populations https://www.eda.gov/sites/default/files/2022-06/EDA-FY21-Investment-Priorities-Definitions.pdf#Underserved-Populations whether or not a member of the applicant Tech Hub—poses an undue risk to a project or U.S. national security interests, through access to information, likelihood of transfer of expertise or knowledge, or other mechanisms involving the applicant. EDA will make this determination in coordination with other Federal Departments and agencies and other relevant entities. Additionally, EDA requires consortia and their members to mitigate national security risks related to technology and innovation, including but not limited to those that arise from development, ownership, control, and use.

To enable these evaluations, and pursuant to 15 U.S.C. § 3722a(g), EDA directs consortia members to provide information via the SF-328 form at the time of application. Consortia members must report any existing investment from an FEOC and must report any new investments from FEOCs throughout the performance and reporting periods of the award. EDA may also require subrecipients or other entities (including entities making policy or investment commitments) to submit an SF-328 as part of due diligence, negotiations, or at any time prior to or after award. Additional information, beyond the scope of the SF-328, may be required in due diligence to further identify and, if necessary, mitigate potential risks to national security. These requirements, restrictions, and constraints do not supersede or replace any other obligations, including transaction reviews by the Committee on Foreign Investment in the United States (CFIUS).

EDA recognizes the importance of foreign firm participation and of secure international collaboration.

Foreign direct investment in a project, either as match or through a commitment, is welcome from foreign entities that are not FEOCs.

ix. What are characteristics of a strong workforce development project?

Strong workforce development projects should be employer-led to ensure that workers gain the skills necessary to perform needed jobs and are connected to quality job opportunities, in line with DOC’s workforce best practices10 and the Commerce and Labor Departments’ Good Jobs Principles.11 Projects should explicitly aim to place workers in good jobs and should have concrete, quantitative targets for job placements and retention. Projects should leverage or establish relevant sector partnerships with employers as well as with entities such as training providers, educational institutions, labor, and community organizations. In addition, EDA encourages consortia to (1) secure commitments from employers to hire individuals who successfully complete workforce training programs; (2) provide wraparound services (e.g., childcare, transportation) to training participants; and (3) structure projects to focus on equitable access to training through recruitment of training participants, including from underserved and disadvantaged communities. The specific training model should align with the sectors, occupations, and skills that the Tech Hub and relevant employers seek to address; example models include skills training programs (including those delivered by community colleges), Registered Apprenticeships and other quality work-and-learn programs, career and technical education programs, and other programs that result in stackable, industry-recognized credentials. Applications should also describe how workforce development organizations and organizations representing workers, including labor organizations and federations, will collaborate within the tech hub to increase job quality and the quantity of good jobs in the selected core technology areas.

10 See https://www.commerce.gov/issues/workforce-development; U.S. Dept. Comm., Strategic Plan 2022 – 2026:

Innovation, Equity, and Resilience, Strengthening American Competitiveness in the 21st Century, Strategic Objective 2.2 at 33-34 (Mar. 2022).

11 For more information on what constitutes a good job, see https://www.dol.gov/general/good-jobs/principles.

https://www.commerce.gov/issues/workforce-development https://www.dol.gov/general/good-jobs/principles

c. Implementation Grants

As provided above in section A.1.a, Implementation Grants can fund a wide range of non-construction and construction activities that aim to increase regional capacity.12 Within each Tech Hub selected for Implementation Grants, EDA expects to fund approximately 3-8 tightly aligned projects that aim to collectively address the Hub’s key inhibitors of global competitiveness at a total funding level of approximately $50-75 million.13

i. Component Projects

As noted above, consortia that EDA Designated as Tech Hubs in Phase 1 may submit applications for Tech Hub Implementation Grants under Phase 2. Each consortium’s application under this NOFO should include (a) an Overarching Narrative and (b) applications for approximately 3-8 tightly aligned component projects. The lead member may submit just the Overarching Narrative application materials.

The lead member may also submit component project applications if the lead plans to administer those component projects (including, e.g., an administrative, management, and governance project that includes costs for the RIO among other costs associated with being the lead). Otherwise, the consortium member that plans to administer the component project should submit application materials relevant to the component project.

Applicants may propose a set of projects that include all or a subset of the four broad categories of eligible activities (workforce development, business and entrepreneur development, technology development and maturation, and related infrastructure activities). Applicants should determine and justify their project mix and should describe in the Overarching Narrative how the proposed projects are strongly linked to the Hub’s success and how that success could not be realized but for these projects.

Further, EDA expects that each component project will have a separate application unless they share leadership and geographic location (i.e., it is on the same campus and will be administered by the owner of the campus). In general, for projects with a physical location, EDA expects the consortium member that is the owner of the location to be an applicant or co-applicant on a component project (e.g., EDA needs to have a grant relationship with the entity that will be encumbering any property with EDA funds). See section D.2 of this NOFO for information on the requirements for a full application;

applications will be evaluated using the criteria in section E.1. EDA expects to select approximately 5-10 consortia for Implementation funding, which will include selecting approximately 3-8 component projects per consortium. Consortia’s component projects not selected for funding in Phase 2 may be eligible for funding from other EDA programs or other federal agencies.

(1) Overarching Narrative

Each eligible consortium should focus on developing a long-term, transformational vision and execution plan for their Hub’s selected core technology area that builds on the consortium’s Phase 1 application.

The plan, to be captured in the Overarching Narrative, should demonstrate how EDA funding for component projects, alongside other capital commitments and support, will catalyze the Hub’s

12 See 15 U.S.C. § 3722a(f)(2) for a more comprehensive list of allowable activities within these four broad categories.

13 The statutory authority envisions possible future investments for consortia that receive Implementation funding.

This may be possible in the future depending on future Congressional appropriations.

emergence over the next decade as a self-sustainable, globally competitive region in their respective selected core technology area.

The plan should include both near-term actions that can be accomplished in the first year and a longer-term strategy to maintain, grow, and evolve capacity to translate innovation into equitable regional economic growth and to strengthen overall national security.

Specifically, the Overarching Narrative must include the following sections:

• An executive summary of no more than 250 words that includes the Tech Hub’s name, selected core technology area, and description of the Hub’s chosen geography.

• A succinct synopsis of the consortium’s vision for regional economic development, the initiatives and partners needed to achieve that vision, and the outcomes expected from achieving that vision. The synopsis should include:

o The consortium members and additional partners (including those making investment and policy commitments);

o A list including short descriptions of component projects, how those component projects contribute to the overall success of the regional Tech Hub, and how they complement and reinforce each other;

o A list including short descriptions of other investment, policy, or other relevant commitments (i.e., any additional, complementary initiatives planned by the consortium, outside of the component projects for which they are requesting EDA funding, such as philanthropic commitments and legislative or regulatory changes) (see section E.1.a.3 (detailing the evaluation criterion related to commitments) and subsections A.1.c.i.4-5 (describing example projects that may be supported by investment commitments and example policy commitments));

o A concise description of how the collection of proposed component projects and related commitments will complementarily lead to the Hub’s global competitiveness in approximately a decade, including the constraints (e.g., infrastructure, workforce, and capital) that the projects and commitments will enable the Hub to overcome;

o A concise description of how the consortium, including via proposed projects and commitments, will consider climate and environmental responsibility, including by addressing climate-related and environmental impacts and risks;

o A concise description of how the consortium, including via proposed projects and commitments, will embed equity in its approach, including by addressing equitable economic growth and inclusive innovation economies;

o Specific outcomes (tied to metrics, measures, and qualitative means to determine progress and success detailed later in the Overarching Narrative) expected from implementing the proposed projects and commitments (e.g., firm density, production capabilities, investment, reduction in unemployment, anticipated job creation and/or wage growth with associated demographics, anticipated regional GDP growth); and o A general timeline for implementation, including completion of any construction.

• A clearly articulated statement of the technological or other problems preventing or slowing technology advancement and commercialization the consortium seeks to solve within a ten-year time horizon and why an individual consortium member cannot solve that alone.

• A description of the nexus among the selected core technology area, the Hub’s chosen geography and assets, and national and economic security, including the explicit connection between technology advancement in that area and national security and economic competitiveness goals and the Hub’s competitive advantage.14

• A detailed overview that describes specific expected participation from private sector entities, including any commitments (e.g., investment and hiring commitments) and expected private sector economic activity (e.g., identifying customers of companies in the Hub that produce and deliver technology goods and services and that are parts of relevant supply chains).

• A description of any commitments or investments from state, local, or other government sources, philanthropy or other nonprofits, and any other source and of any pending or potential Federal investments.

• A detailed plan on how the consortium will ensure the Tech Hub will become self-sustainable after the period of the funded awards.

• A detailed plan on how the consortium will engage labor unions, how the project will incorporate strong labor standards, and/or how the consortium will otherwise pursue economic benefits for local residents, including through project labor agreements and community benefit agreements that offer wages at or above the prevailing rate and include local hire provisions.

• A detailed plan on how the consortium will ensure the benefits of the Tech Hub are equitably shared across relevant regional communities, including efforts to reach historically underrepresented populations.

• A detailed overview of the outcomes expected from the joint impact of the component projects and any complementary work planned by the consortium. Include specific, measurable, achievable, relevant, and time-bound (SMART) goals as well as longer-term and stretch goals, (including outputs and outcomes) and identify necessary data and information. Applicants should include interim goals or milestones against which the Hub and EDA can monitor progress as well as ultimate desired outcomes. Goals will serve not only as the basis for determining the success of the consortium but also as a basis for building evidence to support which strategies and approaches work. This section should link to one or more sets of evaluation activities in at least one Component Project and be reflected in the associated budget.

• A detailed overview of the consortium’s plans to accommodate the growth in housing demand that may result from the success of the investment in this technology hub, including steps to prevent displacement, and to ensure access to jobs created for existing low-income residents and residents of assisted housing.

• An overview of the consortium’s relevant activities between Phase 1 Designation and the Phase 2 application submission, including any new information or risks mitigated. Include a detailed list of any changes to the vision of the Tech Hub since the Phase 1 Designation was made, including any new commitments or investments secured (even if referenced in other parts of the application), any changes to consortium membership, and any refinements in the approach to the selected core technology area. EDA expects proposals may have evolved in the months between Phase 1 Designation application submission and Phase 2 Full Application submission, 14 The following strategies are helpful in identifying the technology’s impact on economic competitiveness and national security considerations: the 100-day supply chain reviews produced pursuant to Executive Order 14017, Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth; the National Security Strategy’s (Oct. 2022) discussion of investing in our national power; Executive Order 14008, Tackling the Climate Crisis at Home and Abroad; and CHIPS for America, A Strategy for the CHIPS for America Fund;

Remarks by National Security Advisor Jake Sullivan at the Special Competitive Studies Project Global Emerging Technologies Summit.

and this section gives the applicant an opportunity to highlight those changes and share the lessons learned that informed the changes.

• Updated documentation evidencing that each consortium member has read the Overarching Narrative and is committed to executing the component(s) of the Tech Hub for which that consortium member is responsible.

• Updated letters of support from key partners, if applicable. Partners who submit additional information in Phase 2 letters of support (e.g., highlighting the benefits from the consortium-building they participated in since providing their Phase 1 letters, identifying any new commitments they are making) may make a Complete Application more compelling.

• In the event that the lead member has changed, a new letter from the lead member describing their commitment to leading the consortium and administering the functions described in sec.

A.1.b.iv.

While the Overarching Narrative should be submitted by the lead applicant, EDA expects that the Overarching Narrative will represent the joint vision of the consortium.

(2) Component Project Applications

All component projects included as part of a Phase 2 application should be coordinated such that the result is more than the sum of their parts and the projects together catalyze private sector investment and tangible outcomes for the Hub’s growth and sustainability. A substantial majority of each Component Project’s intended and expected benefits should accrue within the Tech Hub.

EDA, at its discretion, may award individual grants or cooperative agreements for component projects to various eligible applicants identified as consortium members. EDA at its discretion may fund all or only some of the originally proposed component projects, or parts or modified versions thereof, depending on the viability and feasibility of those components and the availability of funds.

In addition to all required forms as detailed in section D.2. of this NOFO, each component application must submit a Project Narrative that addresses all activities that will be undertaken to complete the individual component project within the Tech Hub and briefly summarizes how the component supports the overall Tech Hub’s goals, referring back to the Overarching Narrative.

Applicants are strongly encouraged to provide a clear and concise narrative that includes a compelling justification for the component project, articulates the connection to the consortium’s selected core technology area, and the expected outcome(s) that will result from the proposed component project. A competitive application will contain the following elements in the Project Narrative:

• Section 1: Project Description and Scope of Work

Section 1a: An executive summary of no more than 250 words that includes the project component title, identifies the name of the lead organization for the project and, if applicable, the applicant implementing the component project, and provides a project overview.

Section 1b: A scope of work of no more than one page linked to the project’s purpose and key milestones, including deliverables. The scope of work should align with and support claims made elsewhere in the project narrative and in the budget narrative. EDA may incorporate this section into the award if selected for funding.

• Section 2: Regional Industry Assets and Needs

Section 2a: A description of the component project’s location or region. The location or region should directly correspond to Questions 14 and 16 of Form SF-424 and align with or be a subset of the chosen geography defined in the Overarching Narrative or should indicate how the project is otherwise deeply interconnected with existing assets in the Hub.

Section 2b: A brief description of how the proposed project supports the Hub’s economy related to the selected core technology area described in the Overarching Narrative. Identify and describe assets that the project will leverage (e.g., sources of innovation, capital, workforce, infrastructure), partners (whether or not those partners are consortium members), and constraints (e.g., infrastructure, workforce, and capital) that the projects and commitments will enable the Hub to overcome.

• Section 3: Challenges, Opportunities, and the Solution

What problems is your project trying to solve or what challenges is it trying to address? Describe the opportunity and the specific solutions. What existing evidence suggests that this project will address the problems you are trying to solve? Describe in detail how the solutions align with specific opportunities or tackle structural challenges. Explain how achievable the solution is (e.g., have you piloted this project or are you adapting a solution that succeeded in another context?). If the solution is completely new, what research has been done that leads you to believe the outcomes are achievable? Why is this opportunity ripe for your chosen geography, and why now? Identify and describe your Hub’s assets, resources, and capacity related to this project and how this project will leverage and strengthen them in pursuit of the Tech Hub’s goals.

• Section 4: Partners and Program Outreach

Section 4a: Describe any former, current, or future partnerships/working relationships with public and/or private entities at the national, state, regional, and/or local level that will be working on this project. Provide a brief description of each entity and specific detail on the roles and responsibilities of these collaborators including effectiveness of past collaboration efforts.

Section 4b: Describe the specific communities and populations that the project will serve and affect, and explain the rationale for how participants and beneficiaries are targeted. Provide an estimate of how many people, organizations, and communities will be affected by the project either directly or indirectly, and indicate how the project will serve and benefit historically underserved, underrepresented, and vulnerable populations in your Hub’s economy.

• Section 5: Measurable Goals and Impacts

What are the anticipated goals you hope to achieve (i.e., outcomes) and what outputs do you plan to measure to assess and demonstrate progress towards those outcomes? Anticipated outcomes should be specific, measurable, attainable, relevant and timebound (SMART), and the application should indicate why and how these outcomes were selected, including existing evidence that suggests these outcomes are appropriate. Applicants should include interim goals or milestones against which the Hub and EDA can monitor progress as well as ultimate desired outcomes.

Applicants should include baseline measures that describe the current state from which to assess any potential changes and should describe how the organization (in collaboration with other consortium members as applicable) will achieve those outcomes. Applicants must describe and budget for overarching Hub-level evaluation activities in one Component Project, and Component Project-level evaluation activities either in each Component Project application or in the single Component Project that encompasses overarching Hub-level evaluation. Applicants selected for funding must use a platform system to track their metrics in a machine-readable format; applicants should include a description of their respective platforms or systems and, if no such system exists, should include their acquisition and implementation in the project narrative and budget. Applicants should also be prepared to participate in program evaluation activities required by EDA.

• Section 6: Sustainability and Evolution or Sunsetting Plan

Provide a sustainability plan that addresses anticipated challenges, potential barriers, and a forecast of post-award period operations. If the project should continue in perpetuity or for the foreseeable future, describe how it will evolve and sustain after federal funds have been spent. If the project’s activities will end after achieving a certain goal, describe the ramp-down and sunsetting and what if any new follow-on activities are expected or necessary. Include a description of how this project will contribute to the Hub becoming self-sustaining and globally competitive once grant funds have been expended.

(3) Eligible Activities

Through this program, EDA can provide funding to support a wide range of non-construction and construction activities, broadly organized into workforce…