Community Economic Adjustment Assistance for Reductions in Defense Industry Employment

Assist States and local governments to plan and carry out community adjustment and economic diversification activities in response to reductions in defense industry employment.

Applicants for this assistance are to contact the Office of Local Defense Community Cooperation and a Project Manager will be assigned to work with the applicant to determine eligibility for assistance under this program. States, counties, municipalities, other political subdivisions of a State, special purpose units of a State or local government, and tribal nations are eligible for this assistance if there is: a publicly announced planned major reduction in Department of Defense (DoD) spending; the closure or significantly reduced operations of a defense facility as the result of the merger, acquisition, or consolidation of the defense contractor operating the defense facility; the cancellation or termination of a DoD contract; or the failure to proceed with an approved major weapon system program if these actions will have a direct and significant adverse impact on a community or its residents. The local action must result in the loss of: 2,500 or more employee positions, in the case of a Metropolitan Statistical Area; 1,000 of more employee positions, in the case of a labor market area outside of a Metropolitan Statistical Area; or one percent of the total number of civilian jobs in that area to be considered for this assistance.

States and communities, including workers, businesses, and other community interests, that may be affected by Defense actions.

Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought. Applicants must document: 1) the publicly announced Defense action that has occurred or will occur; and 2) the known or anticipated impacts on the applicant due to the closure, reduction, cancellation, termination, or failure to proceed.

Plan and carry out local economic adjustment programs, including, but not limited to: assessment of local economic strengths, weaknesses, opportunities and threats; staffing, operating and administrative costs for an organization to represent the affected community; review of local Defense prime and sub contracting activity; outreach to local small businesses, workers, and other community interests; and, facility evaluations. Funds provided under this program may not be used to directly identify or assist a business, including a business expansion, in the relocation of a plant, facility, or operation from one Labor Market Area (LMA) to another if the relocation is likely to result in the loss of jobs in the LMA from which the relocation occurs.

Length of assistance may extend across more than one period and will be determined on the basis of project need and requirements. Project periods should not exceed one year.

An applicant may be notified of funding availability in person, through letter, electronic mail, or a Federal Funding Opportunity Announcement (FFO), and how to apply for the funding through this notification.

An application (SF 424, budget, program or project narrative and assurances) must be submitted that outlines the proposed project and expenditure of funds. Applicants will be invited to submit their applications and supporting documentation electronically to the Director, Office of Local Defense Community Cooperation, Department of Defense. In instances where, for whatever reason, an electronic application cannot be submitted, provisions may be made to accept a paper application addressed to: Director, Office of Local Defense Community Cooperation, Department of Defense, 2231 Crystal Drive, Suite 520, Arlington, VA 22202-3711.

Not applicable. Awards are based on eligibility and availability of funds.

Applications are reviewed by Office of Local Defense Community Cooperation staff. The Office of Local Defense Community Cooperation may consult with other Federal agencies as necessary in consideration of an application. Any issues or concerns noted in the application may be negotiated with the applicant prior to the application being accepted as final by the Office of Local Defense Community Cooperation. Awards by the Director, Office of Local Defense Community Cooperation, will be made on the basis of an approved final application.

To the extent practicable, the Office of Local Defense Community Cooperation will inform an applicant of approval within seven business days of the receipt of a final, completed application for planning assistance, and thirty business days of the receipt of a final, completed application for other types of assistance to carry out community adjustments or economic diversification programs. The Office of Local Defense Community Cooperation will promptly inform an applicant of the rejection of any application once its due diligence has been completed.