Small Shipyard Grants
UPDATE: The application period for 2009 Small Shipyard grants has closed. Over 500 applications were received, requesting over $1.25 billion. Successful applicants will be contacted by Maritime Administration staff prior to August 17, 2009.
Section 3508 of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417) and the section entitled ‘‘Supplemental Grants for Assistance to Small Shipyards’’ in the American Recovery and Reinvestment Act, 2009, provide that the Maritime Administration shall establish an assistance program for small shipyards. Under this program, there is $98,000,000 available for grants ($2,000,000 of the $100,000,000 appropriated for the program is reserved for program administration.). The sectioned entitled "Assistance to Small Shipyards" of the Omnibus Appropriations Act of 2009 provides an additional $17,150,000 for grants ($350,000 of the $17,500,000 appropriated for the program is reserved for program administration). Grant funds under both appropriations are to be used for capital improvements, and related infrastructure improvements at qualified shipyards that will be effective in fostering efficiency, competitive operations, and quality ship construction, repair, and reconfiguration. Such grants may not be used to construct buildings or other physical facilities or to acquire land unless such use is specifically approved by the Administrator 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 whose economies are related to or dependent upon the maritime industry. However, 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.
Key Dates:
The period for submitting grant applications for the $98 million available under the American Recovery and Reinvestment Act, as mandated by statute terminated on April 20, 2009. The period for submitting grant applications for the $17,150,000 available under the Omnibus Appropriations Act of 2009 commenced on March 11, 2009 and terminated on May 11, 2009. Applications received by the Maritime Administration by 5 p.m. EST on April 20, 2009 will be considered for assistance under both the American Recovery and Relief Act and the Omnibus Appropriations Act. Applications received between April 20 and May 11, 2009 will be considered for assistance from the Omnibus Appropriations Act. Applications received later than this time will not be considered. The Maritime Administrator intends to award grants under the American Recovery and Relief Act no later than August 17, 2009 and under the Omnibus Appropriations Act no later than July 9, 2009. Maritime Administration staff will contact grant recipients prior to these award dates.
Award Information:
The Maritime Administration intends to award the full amount of the available funding through grants to the extent that there are worthy applications. No more than 25 percent of the funds available will be awarded to shipyard facilities that have more than 600 production employees. The Maritime Administration will seek to obtain the maximum benefit from the available funding by awarding grants for as many of the most worthy projects as possible. The Maritime Administration may partially fund projects 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 - The statutes referenced above provide 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.
2. Other Considerations in Making Awards - In providing grants, the Administrator will take into account (a) the economic circumstances and conditions of the maritime community near to which a shipyard facility is located; (b) projects that would be effective in fostering efficiency, competitive operations, and quality ship construction, repair, and reconfiguration; and (c) projects that would be effective in fostering employee skills and enhancing productivity.
Matching Requirements:
(1) Except as provided in item (2) below, Federal funds for any eligible project will not exceed 75 percent of the total cost of such project. The remaining portion of the cost will be paid in funds from or on behalf of the grant recipient. The applicant will be required to submit detailed financial statements and any necessary supporting documentation demonstrating how and when such matching requirement is proposed to be funded.
(2) Exceptions - If the Administrator determines that a proposed project merits support and cannot be undertaken without a higher percentage of Federal financial assistance, the Administrator may award a grant for such project with a lesser matching requirement than is described in item (1).
(3) Unless waived for good cause, the awardee’s matching requirement must be paid prior to payment of any federal funds for the project.
Evaluation of Applications:
The Maritime Administration is evaluating the applications on the basis of the economic information provided and in terms 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. The Maritime Administration will award grants in its sole discretion in such amounts and under such conditions for those projects it determines will best further the statutory purposes of the small shipyard grant program.
Conditions Attached To Awards:
The grant agreement will set out the records to be maintained by the grant recipient which must be available for review and audit by the Administrator, as well as any other conditions and requirements. Grant recipients under the American Recovery and Relief Act will be required to submit periodic reports to include, among other things, the number of direct, on-project jobs created or sustained by the award, and to the extent possible, the estimated indirect jobs created or sustained in the associated supplying industries, including the number of job-years created and the total increase in employment since the date of enactment of the American Recovery and Reinvestment Act of 2009. Grant recipients under the Omnibus Appropriations Act who receive over $5 million in grant funds (if any) will be required to certify that they have filed all Federal tax returns required during the three years preceding the certification, have not been convicted of a criminal offense under the Internal Revenue Code of 1986, and have not, more than 90 days prior to certification, been notified of any unpaid Federal tax assessment for which the liability remains unsatisfied, unless the assessment is the subject of an installment agreement or offer in compromise that has been approved by the Internal Revenue Service and is not in default, or the assessment is the subject of a non-frivolous administrative or judicial proceeding.
The Small Shipyard Grants program is Catalog of Federal Domestic Assistance Number 20.814.
Related Links
After award of grants, recipients use the following forms to request reimbursement and report progress:
Request for Reimbursement (SF 270)
Information about the 2008 Small Shipyard grants can be found on our news release page.
Contacts
The Small Shipyards Grant program is administered by the Office of Shipyards and Marine Engineering:
Office of Shipyards and Marine Engineering
Maritime Administration
U.S. Department of Transportation
1200 New Jersey Avenue, SE
Washington, D.C. 20590
(202) 366-5737
