[Federal Register Volume 78, Number 69 (Wednesday, April 10, 2013)]
[Pages 21492-21494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08486]



Maritime Administration

Small Shipyard Grant Program; Application Deadlines

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice.


SUMMARY: Under the Small Shipyard Grant Program, there is currently 
$9,457,986.00 available for grants for capital and related improvements 
to qualified shipyard facilities that will be effective in fostering 

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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, based on past experience, 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 up to 10 
applications will be selected for funding with an average grant amount 
of about $1 million.

DATES: The period for submitting grant applications, as mandated by 
statute, commenced on March 26, 2013. All applications must be received 
by the Maritime Administration by 5:00 p.m. EDT on May 28, 2013. 
Applications not received by this deadline will not be considered. The 
Maritime Administration intends to award grants no later than July 24, 

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 

FOR FURTHER INFORMATION CONTACT: David M. Heller, Director, Office of 
Shipyards and Marine Engineering, Maritime Administration, Room W21-
318, 1200 New Jersey Ave. SE., Washington, DC 20590; 
David.Heller@dot.gov; 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 unless such use is 
specifically approved by the Maritime Administration as being 
consistent with, and supplemental to, capital and related 
infrastructure improvements. Grant funds may also be used for maritime 
training programs to foster technical skills and operational 
productivity in communities, the economies of which are related to or 
dependent upon the maritime industry. 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 
    Award Information: The Maritime Administration intends to award the 
full amount of the available funding through grants to applications 
with merit. 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 projects with merit 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.
    Eligibility Information: 1. Eligible Applicants--46 U.S.C. 54101 
provides that shipyards can apply for grants. The shipyard facility for 
which a grant is sought must be in a single geographical location, 
located in or near a maritime community, and may not have more than 
1200 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. 2. Eligible Projects--capital and related improvement 
projects that will be effective in fostering efficiency, competitive 
operations, and quality ship construction, repair, and reconfiguration; 
and training projects that will be effective in fostering employee 
skills and enhancing productivity. For capital improvement projects, 
all items proposed for funding must be new and will 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.
    Matching Requirements: 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. However, when good 
cause can be shown, the Maritime Administrator may waive the matching 
requirement in whole or in part, if the Administrator determines that a 
proposed project merits support and cannot be undertaken without a 
higher percentage of Federal financial assistance.
    Application: An application should be filed on Standard Form SF-424 
which can be found at http://marad.dot.gov. Although the form is 
available electronically, the application must be filed in hard copy as 
indicated below due to the amount of information requested. 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 Standard 
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) Web site address, if any.
    Section 2: For each project proposed for funding, the following:
    (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 enhancing productivity (for training projects). 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 
    (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 
    Section 3: A table with a prioritized list of projects and total 
cost and Federal portion (in dollars) for each.
    Section 4: A description of any existing programs or arrangements, 

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any, which will be used to supplement or leverage the Federal grant 
    Section 5: Special economic circumstances and conditions, if any, 
of the maritime community in which the shipyard is located (beyond that 
which is reflected in the unemployment rate of the county in which the 
shipyard is located and whether that county is in an economically 
distressed area, as defined by 42 U.S.C. 3161).
    Section 6: Shipyard company officer's certification of each of the 
following requirements:
    (a) That the shipyard facility for which a grant is sought is 
located in a single geographical location in or near a maritime 
community and (i) the shipyard facility has no more than 600 production 
employees, or (ii) the shipyard facility has more than 600 production 
employees, but fewer than 1200 production employees (shipyard officer 
must certify to either (i) or (ii));
    (b) That the applicant has the authority to carry out the proposed 
project; and
    (c) Certification 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 
    Section 7: Unique identifier of shipyard's parent company (when 
applicable): Data Universal Numbering System (DUNS + 4 number) (when 
    Section 8: 2011 or 2012 (if available) year-end, audited, reviewed, 
or compiled financial statements, prepared by a certified public 
accountant, according to U.S. generally accepted accounting principles, 
not on an income-tax basis. The September 30, 2012 financial statements 
prepared by the company if December 31, 2012, CPA-prepared statements 
are not available. Note: Do not provide tax returns.
    Section 9: 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 10: Evidence documenting applicant's ability to make the 
proposed matching contribution (loan agreement, commitment from 
investors, cash on balance sheet, etc.) and in the time period outlined 
in 2(d) above.
    Section 11: Pro-forma financial statements reflecting (a) September 
30, or December 31, 2012, financial condition; (b) effect on balance 
sheet of grant and matching funds (i.e. 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 12: 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 had 
been acquired in any such proceeding or had been subject to foreclosure 
or receivership during such period. If so, provide details.
    Additional information may be requested as deemed necessary by the 
Maritime Administration in order to facilitate and complete its review 
of the application. If such information is not provided, the 
application may be deemed incomplete by the Maritime Administration and 
will not be processed.
    Where to File Application: Submit an original paper copy of the 
application, one additional paper copy of the application, and two 
Compact Disks (CDs) each containing complete electronic versions 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.
    Evaluation of Applications: The Maritime Administration will award 
grants in its sole discretion in such amounts and under such conditions 
it determines will best further the statutory purposes of the small 
shipyard grant program. The Maritime Administration will evaluate the 
applications on the basis of how well the project for which a grant is 
requested would be effective in fostering efficiency, competitive 
operations, and quality ship construction, repair, and reconfiguration 
(for capital improvement projects) or how well the project for which a 
grant is requested would be effective in fostering employee skills and 
enhancing productivity (for training projects), as requested in section 
2 (c) above. The economic circumstances and conditions will be based 
upon the unemployment rate of the county in which the shipyard is 
located and whether that county is an economically distressed area, 
supplemented by any special economic circumstances and conditions 
identified by the applicant. Projects that may require additional 
environmental assessments such as those including waterside 
improvements (dredging, bulkheading, pier work, pilings, etc.) will not 
be considered for funding. Preference will be given to funding 
applications: (1) That propose matching funds greater than a 25% share 
of the project; (2) that impact existing operations and/or product 
lines rather than expanding the capabilities of the shipyard into new 
product lines or capabilities; and (3) that result in a geographic 
diversity of grant recipients.
    Conditions Attached To Awards: The grant agreement will specify the 
records to be maintained by the recipient that must be available for 
review and audit by the Maritime Administration, as well as any other 
conditions and requirements.

(Authority: 46 U.S.C. 54101 and the Consolidated and Further 
Continuing Appropriations Act, 2013, Pub. L.113-6.)

    Dated: April 8, 2013.

    By Order of the Maritime Administrator.
Ryan Kabacinski,
Acting Secretary, Maritime Administration.
[FR Doc. 2013-08486 Filed 4-8-13; 4:15 pm]