Notice of Order Soliciting Community Proposals, 38110-38123 [2014-15696]

Agencies

• DEPARTMENT OF TRANSPORTATION
• Office of the Secretary of Transportation

[Federal Register Volume 79, Number 128 (Thursday, July 3, 2014)]
[Notices]
[Pages 38110-38123]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15696]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

[Docket No. DOT-OST-2014-0113]


Notice of Order Soliciting Community Proposals

AGENCY: Department of Transportation, Office of the Secretary.

ACTION: Notice of Order Soliciting Community Proposals (Order 2014-6-
17).

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SUMMARY: The Department of Transportation is soliciting proposals from 
communities or consortia of communities interested in receiving grants 
under the Small Community Air Service Development Program. The full 
text of the Department's order, including Appendices, is included in 
this Notice. As noted in the order, an application for a grant under 
this program must include a Grant Proposal of no more than 20 pages 
(one-sided only), a completed Application for Federal Domestic 
Assistance (SF424), a Summary Information Schedule, and any letters 
from the applicant community showing support.

DATES: Applications must be submitted no later than July 31, 2014.

ADDRESSES: Communities must submit applications electronically through 
https://www.grants.gov.

FOR FURTHER INFORMATION CONTACT: Brooke Chapman, Associate Director, 
Small Community Air Service Development Program, Office of Aviation 
Analysis, 1200 New Jersey Avenue SE., W86-307, Washington, DC 20590, 
(202) 366 0577.

SUPPLEMENTARY INFORMATION: By this order, the Department of 
Transportation (the Department or DOT) invites proposals from 
communities and/or consortia of communities interested in obtaining a 
federal grant under the Small Community Air Service Development Program 
(``Small Community Program'' or ``SCASDP'') to address air service and 
airfare issues in their communities. Applications of no more than 20 
one-sided pages each (excluding the completed Application for Federal 
Domestic Assistance (SF424), Summary Information schedule, and any 
letters from the community or an air carrier showing support for the 
application), including all required information, must be submitted to 
www.grants.gov no later than 5 p.m. EDT on July 31, 2014. You are 
strongly encouraged to submit applications in advance of the deadline. 
Please be aware that you must complete the registration process before 
submitting an application, and that this process usually takes two to 
four weeks to complete. If interested parties experience difficulties 
at any point during the registration or application process, please 
call the grants.gov Customer Support Hotline at 1-800-518-4726, Monday-
Friday, from 7 a.m. to 9 p.m. EDT. The Department will not accept late-
filed applications. Additional information on applying through 
grants.gov is in Appendix A, including a notice regarding late 
submissions related to technical difficulties.
    This order is organized into the following sections:

I. Background
II. Selection Criteria and Guidance on Application of Selection 
Criteria
III. Evaluation and Selection Process
IV. How to Apply
V. Air Service Development Zone
VI. Grant Administration
VII. Questions and Clarifications
Appendix A--Additional Information on Applying Through 
www.grants.gov
Appendix B--Summary Information
Appendix C--Application Checklist
Appendix D--Confidential Commercial Information

I. Background

    The Small Community Program was established by the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (Pub. L. 106-
181) and reauthorized by the Vision 100--Century of Aviation 
Reauthorization Act (Pub. L. 108-176) and subsequently the FAA 
Modernization and Reform Act of 2012 (Pub. L. 112-95) (FAA 2012). The 
program is designed to provide financial assistance to small 
communities in order to help them enhance their air service. The 
Department provides this assistance in the form of monetary grants that 
are disbursed on a reimbursable basis. Authorization for this program 
is codified at 49 U.S.C. 41743.
    The Small Community Program is authorized to receive appropriations 
under 49 U.S.C. 41743(e)(2), as amended. Appropriations are provided 
for this program for award selection in FY 2014 pursuant to FAA 2012 
and the FY 2014 Appropriations Act (Pub. L. 113-76). The Department has 
up to $7 million available for FY 2014 grant awards to carry out this 
program. There is no limit on the amount of individual awards, and the 
amounts awarded will vary depending upon the features and merits of the 
selected proposals. In past years, the Department's individual grant 
sizes have ranged from $20,000 to nearly $1.6 million.

A. Eligible Applicants

    Eligible applicants are small communities that meet the following 
statutory criteria under 49 U.S.C. 41743:
    1. As of calendar year 1997, the airport serving the community was 
not larger than a small hub airport,\1\ and it has insufficient air 
carrier service or unreasonably high air fares; and
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    \1\ See, https://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, for the FAA's 1997 list of 
Primary and Nonprimary Commercial Service Airports.
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    2. The airport serving the community presents characteristics, such 
as geographic diversity or unique circumstances that demonstrate the 
need for, and feasibility of, grant assistance from the Small Community 
Program.
    No more than four communities or consortia of communities, or a 
combination thereof, from the same state may be selected to participate 
in the program in any fiscal year. No more than 40 communities or 
consortia of communities, or a combination thereof, may be selected to 
participate in the program in each year for which the funds are 
appropriated.
    Consortium applications: Both individual communities and consortia 
of communities are eligible for SCASDP funds. An application from a 
consortium of communities must be one that seeks to facilitate the 
efforts of the communities working together toward one joint grant 
project, with one joint objective, including the establishment of one 
entity to ensure that the joint objective is accomplished.
    Multiple Applications: A community may file only one application 
for a grant, either individually or as part of a consortium.
    Communities without existing air service: Communities that do not 
currently have commercial air service are eligible for SCASDP funds.
    Essential Air Service communities: Small communities that meet the 
basic SCASDP criteria and currently receive subsidized air service 
under the Essential Air Service (``EAS'') program are eligible to apply 
for SCASDP funds. However, grant awards to EAS-subsidized communities 
are limited to marketing or promotion projects that support existing or 
newly subsidized EAS. Grant funds will not be authorized

[[Page 38111]]

for EAS-subsidized communities to support any new competing air 
service. Furthermore, no funds will be authorized to support additional 
flights by EAS carriers or changes to those carriers' existing 
schedules. These restrictions are necessary to avoid conflicts with the 
mandate of the EAS program.

B. Eligible Projects

    The Department is authorized to award grants under 49 U.S.C. 41743 
to communities that seek to provide assistance to:
     An air carrier to subsidize service to and from an 
underserved airport for a period not to exceed 3 years;
     an underserved airport to obtain service to and from the 
underserved airport; and/or
     an underserved airport to implement such other measures as 
the Secretary, in consultation with such airport, considers appropriate 
to improve air service both in terms of the cost of such service to 
consumers and the availability of such service, including improving air 
service through marketing and promotion of air service and enhanced 
utilization of airport facilities.
    Applicants should also keep in mind the following statutory 
restrictions on eligible projects:
     An applicant may not receive an additional grant to 
support the same project from a previous grant (see Same Project 
Limitation, below); and
     An applicant may not receive an additional grant, prior to 
the completion of its previous grant (see Concurrent Grant Limitation, 
below).
    Same Project Limitation: Under 49 U.S.C. 41743(c), a community may 
not receive an additional grant to support the same project for which 
it received a previous grant (Same Project Limitation).\2\ In assessing 
whether a previous grantee's current application represents a new 
project, the Department will compare the goals and objectives of the 
previous grant, including the key components of the means by which 
those goals and objectives were to be achieved, to the current 
application. For example, if a community received an earlier grant to 
support a revenue guarantee for service to a particular destination or 
direction, a new application by that community for another revenue 
guarantee for service to the same destination or in the same direction 
is ineligible, even if the revenue guarantee were structured 
differently or the type of carrier were different. However, a new 
application by such a previous grantee for service to a new destination 
or direction using a revenue guarantee, or for general marketing of the 
airport and the various services it offers, is eligible. We recognize 
that not all revenue guarantees, marketing agreements, studies, etc. 
are of the same nature, and that if a subsequent application 
incorporates different goals or significantly different components, it 
may be sufficiently different to constitute a new project under 49 
U.S.C. 41743(c).
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    \2\ This limitation applies for all projects contained in a 
previous grant agreement's scope; thus, even if the community did 
not actively implement a project listed in the scope of an earlier 
grant agreement, it may not receive funding for that project in a 
subsequent round of SCASDP funding.
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    Concurrent Grant Limitation: A community or consortium may have 
only one SCASDP grant at any time. If a community or consortium applies 
for a subsequent SCASDP grant when its current grant has not yet 
expired, that community/consortium must notify the Department of its 
intent to terminate the current SCASDP grant, and, if the community/
consortium is selected for a new grant, such termination must take 
place prior to entering into the new grant. In addition, for consortium 
member applicants, permission must be granted from both the grant 
sponsor and the Department to withdraw from the current SCASDP grant 
before that consortium member will be deemed eligible to receive a 
subsequent SCASDP grant.
    Airport Capital Improvements Ineligible: Airport capital 
improvement projects, including, but not limited to, runway expansions 
and enhancements, the construction of additional aircraft gates, and 
other airport terminal expansions and reconfigurations are ineligible 
for funding under the Small Community Program. Airports seeking funding 
for airport capital improvement projects may want to consult with their 
local FAA Regional Office to discuss potential eligibility for grants 
under the Airport Improvement Program.

II. Selection Criteria and Guidance on Application of Selection 
Criteria

    SCASDP grants will be awarded based on the selection criteria as 
outlined below. There are two categories of selection criteria: 
Priority Selection Criteria and Secondary Selection Criteria. 
Applications that meet one or more of the Priority Selection Criteria 
will be viewed more favorably than those that do not meet any Priority 
Selection Criteria.

A. Priority Selection Criteria

    The statute directs the Department to give priority consideration 
to those communities or consortia where the following criteria are met:
    1. Air fares are higher than the national average air fares for all 
communities--The Department will compare the local community's air 
fares to the national average air fares for all similar markets. 
Communities with market air fares significantly higher than the 
national average air fares in similar markets will receive priority 
consideration. The Department calculates these fares using data from 
the Bureau of Transportation Statistics (BTS) Airline Origin and 
Destination Survey data. The Department evaluates all fares in all 
relevant markets that serve a SCASDP community and compares the SCASDP 
community fares to all fares in similar markets across the country. 
Each SCASDP applicant's air fares are computed as a percentage above or 
below the national averages. The report compares a community's air 
fares to the average for all other similar markets in the country that 
have similar density (passenger volume) and similar distance 
characteristics (market groupings). All calculations are based on 12-
month ended periods to control for seasonal variation of fares.
    2. The community or consortium will provide a portion of the cost 
of the activity from local sources other than airport revenue sources--
The Department will consider whether a community or consortium proposes 
local funding for the proposed project. Applications providing 
proportionately higher levels of cash contributions from sources other 
than airport revenues will be viewed more favorably. Applications that 
provide multiple levels of contributions (state, local, airport, cash 
and in-kind contributions) will also be viewed more favorably. See 
Additional Guidance--Cost Sharing and Local Contributions, in 
Subsection C below, for more information on the application of this 
selection criterion.
    3. The community or consortium has established or will establish a 
public-private partnership to facilitate air carrier service to the 
public--The Department will consider a community or consortium's 
commitment to facilitate air carrier service in the form of a public-
private partnership. Applications that describe in detail how the 
partnership will actively participate in the implementation of the 
proposed project will be viewed more favorably.
    4. The assistance will provide material benefits to a broad segment 
of the traveling public, including businesses, educational 
institutions, and other enterprises, whose access to the national air 
transportation system is limited--The Department will consider

[[Page 38112]]

whether the proposed project would provide, to a broad segment of the 
community's traveling public, important benefits relevant to the 
community. Examples include service that would offer new or additional 
access to a connecting hub airport, service that would provide 
convenient travel times for both business and leisure travelers that 
would help obviate the need to drive long distances, and service that 
would offer lower fares.
    5. The assistance will be used in a timely manner--The Department 
will consider whether a proposed project provides a well-defined 
strategic plan and reasonable timetable for use of the grant funds. In 
the Department's experience, a reasonable timetable for use of grant 
funds includes a year to complete studies, two years for marketing and 
promotion of the airport, community, carrier, or destination, and three 
years for projects that target a revenue guarantee, subsidy, or other 
financial incentives. Applicants should describe how their projects can 
be accomplished within this timetable, including whether the airport 
and proposed air service provider have the requisite authorities and 
certifications necessary to carry out the proposed projects. In 
addition, because of this emphasis placed on timely use of funds, 
applicants proposing new service should describe the airport and 
whether it can support the proposed service, including whether the 
airport holds, or intends to apply for, an airport operating 
certificate issued under 14 CFR part 139. Air service providers 
proposed for the new service must have met or be able to meet in a 
reasonably short period of time, all Department requirements for air 
service certification, including safety and economic authorities.
    6. Multiple communities cooperate to submit a regional or 
multistate application to consolidate air service into one regional 
airport--The Department will consider whether a proposed project 
involves a consortium effort to consolidate air service into one 
regional airport. This statutory priority criterion was added pursuant 
to Section 429 of FAA 2012.

B. Secondary Selection Criteria

    1. Innovation--The Department will consider whether an application 
proposes new and creative solutions to air transportation issues facing 
the community, including:
     the extent to which the applicant's proposed solution(s) 
to solving the problem(s) is new or innovative, including whether the 
proposed project utilizes or encourages intermodal or regional 
solutions to connect passengers to the community's air service (or, if 
the community cannot implement or sustain its own air services, to 
connect to a neighboring community's air service (e.g., cost-effective 
inter/intra city passenger bus service, or marketing of intermodal 
surface transportation options also available to air travelers; and
     whether the proposed project, if successfully implemented, 
could serve as a working model for other communities.
    2. Participation--The Department will consider whether an 
application has broad community participation, including:
     whether the proposed project has broad community support; 
and
     the community's demonstrated commitment to and 
participation in the proposed project.
    3. Location--The Department will consider the location and 
characteristics of a community:
     the geographic location of each applicant, including the 
community's proximity to larger centers of air service and low-fare 
service alternatives;
     the population and business activity, as well as the 
relative size of each community; and
     whether the community's proximity to an existing or prior 
grant recipient could adversely affect either its proposal or the 
project undertaken by the other recipient.
    4. Other Factors--The Department will also consider:
     whether the proposed project clearly addresses the 
applicant's stated problems;
     the community's existing level of air service and whether 
that service has been increasing or decreasing;
     whether the applicant has a plan to provide any necessary 
continued financial support for the proposed project after the 
requested grant award expires;
     the grant amount requested compared with total funds 
available for all communities;
     the proposed federal grant amount requested compared with 
the local share offered;
     any letters of intent from airline planning departments or 
intermodal surface transportation providers on behalf of applications 
that are specifically intended to enlist new or expanded air service or 
surface transportation service in support of the air service in the 
community;
     whether the applicant has plans to continue with the 
proposed project if it is not self-sustaining after the grant award 
expires; and
     equitable and geographic distribution of available funds.

C. Additional Guidance

    Market Analysis: Applicants requesting funds for a revenue 
guarantee/subsidy/financial incentive are encouraged to conduct and 
reference in their applications an in-depth analysis of their target 
markets. Target markets can be destination specific (e.g., service to 
LAX), a geographic region (e.g., northwest mountain region) or 
directional (e.g., hub in the southeastern United States or a point 
north, south, east, or west of the applicant community).
    Complementary Marketing Commitment: Applicants requesting funds for 
a revenue guarantee/subsidy/financial incentive are encouraged to 
designate in their applications a portion of the project funds 
(federal, local or in-kind) for the development and implementation of a 
marketing plan in support of the service sought.
    Subsidies for a carrier to compete against an incumbent: The 
Department is reluctant to subsidize one carrier but not others in a 
competitive market. For this reason, a community that proposes to use 
the grant funds for service in a city-pair market that is already 
served by another air carrier must explain in detail why the existing 
service is insufficient or unsatisfactory, or provide other compelling 
information to support such a proposal.
    Cost Sharing and Local Contributions: Applications must clearly 
identify the level of federal funding sought for the proposed project. 
Applications must also identify the community's cash contributions to 
the proposed project, in-kind contributions from the airport, and in-
kind contributions from the community. Non-federal funds will be 
applied proportionately to the entire scope of the project. Communities 
cannot use non-federal funds selectively to fund certain components of 
a project (see Section VI-Grant Administration-Payments for more 
information). Cash contributions from airport revenues must be 
identified separately from cash contributions from other community 
sources, and cash contributions from the state and/or local government 
should be separately identified and described.
    Types of contributions. Contributions should represent a new 
financial commitment or new financial resources devoted to attracting 
new or improved service, or addressing specific high-fare or other 
service issues, such as improving patronage of existing service at the 
airport. For communities that propose to contribute to the grant

[[Page 38113]]

project, that contribution can be in the following forms:
    Cash from non-airport revenues. A cash contribution can include 
funds from the state, the county or local government, and/or from local 
businesses, or other private organizations in the community. 
Contributions that are comprised of intangible non-cash items, such as 
the value of donated advertising, are considered in-kind contributions 
(see further discussion below).
    Cash from airport revenues. This includes contributions from funds 
generated by airport operations. Airport revenues may not be used for 
revenue guarantees to airlines, per 49 U.S.C. 47107 and 47133. 
Applications that include local contributions based on airport revenues 
do not receive priority consideration for selection.
    In-kind contributions from the airport. This can include such items 
as waivers of landing fees, ground handling fees, terminal rents, fuel 
fees, and/or vehicle parking fees.
    In-kind contributions from the community. This can include such 
items as donated advertising from media outlets, catering services for 
inaugural events, or in-kind trading, such as advertising in exchange 
for free air travel. Travel banks and travel commitments/pledges are 
considered to be in-kind contributions.
    Cash vs. in-kind contributions. Communities that include local 
contributions made in cash will be viewed more favorably.

III. Evaluation and Selection Process

    The Department will first review each application to determine 
whether it has satisfied the following eligibility requirements:
    1. The applicant is an eligible applicant;
    2. The application is for an eligible project (including compliance 
with the Same Project Limitation); and
    3. The application is complete (including submission of a completed 
SF424 and all of the information listed in Contents of Application, in 
Section IV below).
    To the extent that the Department determines that an application 
does not satisfy these eligibility requirements, the Department will 
deem that application ineligible and not consider it further.
    The Department will then review all eligible applications based on 
the selection criteria outlined above in Section II. The Department 
will not assign specific numerical scores to projects based on the 
selection criteria. Rather, ratings of ``highly recommended,'' 
``recommended,'' ``acceptable,'' or ``not recommended'' will be 
assigned to applications. Applications that align well with one or more 
of the Priority Selection Criteria will be viewed more favorably than 
those that do not align with any Priority Selection Criteria. The 
Department will consider the Secondary Selection Criteria when 
comparing and selecting among similarly-rated projects. The Department 
reserves the right to award funds for a part of the project included in 
an application, if a part of the project is eligible and aligns well 
with the selection criteria specified in this Order. In addition, as 
part of its review of the Secondary Selection Criterion ``Other 
Factors,'' the Department will consider the geographical distribution 
of the applications to ensure consistency with the statutory 
requirement limiting awards to no more than four communities or 
consortia of communities, or a combination thereof, from the same 
state. The final selections will be limited to no more than 40 
communities or consortia of communities, or a combination thereof.
    Grant awards will be made as promptly as possible so that selected 
communities can complete the grant agreement process and implement 
their plans. Given the competitive nature of the grant process, the 
Department will not meet with applicants regarding their applications. 
All non-confidential portions of each application, all correspondence 
and ex-parte communications, and all orders will be posted in the 
above-captioned docket on www.regulations.gov.
    The Department will announce its grant selections in a Selection 
Order that will be posted in the above-captioned docket, served on all 
applicants and all parties served with this Solicitation Order, and 
posted on the Department's SCASDP Web site at https://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.

IV. How To Apply

    Required Steps:
     Determine eligibility;
     Register with www.grants.gov (see Registration with 
www.grants.gov, below);
     Submit an Application for Federal Domestic Assistance 
(SF424);
     Submit a completed ``Summary Information'' schedule. This 
is your application cover sheet (see Appendix B);
     Submit a detailed application of up to one-sided 20 pages 
(excluding the completed SF424, Summary Information schedule, and any 
letters from the community or an air carrier showing support for the 
application) that meet al. required criteria (see Appendix C);
     Attach any letters from the community or an air carrier 
showing support for the application to the proposal, which should be 
addressed to Brooke Chapman, Associate Director, Small Community Air 
Service Development Program; and
     Provide separate submission of confidential material, if 
requested. (see Appendix D)
    An application will not be complete and will be deemed ineligible 
for a grant award until and unless all required materials, including 
SF424, have been submitted through www.grants.gov and time-stamped by 5 
p.m. EDT on July 31, 2014 (the ``Application Deadline'').
    An application consisting of more than 20 pages will be accepted by 
the Department, but the content in the additional pages past page 20 
will not be evaluated or considered by the Department. The Department 
would prefer that applicants use one-inch margins and a font size not 
less than 12 point type.
    Late Application Notice: Applicants who are unable to successfully 
submit their application package through grants.gov prior to the 
Application Deadline due to technical difficulties outside their 
control must submit an email to SCASDPgrants@dot.gov with the 
information described in Appendix A.
    Registration with www.grants.gov: Communities must be registered 
with www.grants.gov in order to submit an application for funds 
available under this program. For consortium applications, only the 
Legal Sponsor must be registered with www.grants.gov in order to submit 
its application for funds available under this program. See Appendix A 
for additional information on applying through www.grants.gov.
    Contents of Application: There is no set format that must be used 
for applications. Each application should, to the maximum extent 
possible, address the selection criteria set forth in Section II, 
above, including a clear description of the air service needs/
deficiencies and present plans/strategies that directly address those 
needs/deficiencies. At a minimum, however, each application must 
include the following information:
    A description of the community's air service needs or deficiencies, 
including information about: (1) Major origin/destination markets that 
are not now served or are not served adequately; (2) fare levels that 
the community deems relevant to consideration of its application, 
including market analyses

[[Page 38114]]

or studies demonstrating an understanding of local air service needs; 
and (3) any air service development efforts over the past three years 
and the results of those efforts (including marketing and promotional 
efforts).
     A strategic plan for meeting those needs under the Small 
Community Program, including the community's specific project goal(s) 
and detailed plan for attaining such goal(s). If the application is 
selected, DOT will work with the grantee to incorporate the relevant 
elements of the application's strategic plan into the grant agreement's 
project scope. Applicants should note that, once a grant agreement is 
signed, the agreement cannot be amended in a way that would alter the 
project scope. Applicants also are advised to obtain firm assurances 
from air carriers proposing to offer new air services if a grant is 
awarded. Strategic plans should:
    [cir] for applications involving new or improved service, explain 
how the service will become self-sufficient;
    [cir] fully and clearly outline the goals and objectives of the 
project; and
    [cir] fully and clearly summarize the actual, specific steps (in 
bullet form, with a proposed timeline) that the community intends to 
take to bring about these goals and objectives.
     A detailed description of the funding necessary for 
implementation of the proposed project (including federal and non-
federal contributions).
     An explanation of how the proposed project differs from 
any previous projects for which the community received SCASDP funds 
(see Same Project Limitation, above).
     Designation of a legal sponsor responsible for 
administering the proposed project. The legal sponsor of the proposed 
project must be a government entity, such as a state, county, or 
municipality. The legal sponsor must be legally, financially, and 
otherwise able to execute the grant agreement and administer the grant, 
including having the authority to sign the grant agreement and to 
assume and carry out the certifications, representations, warranties, 
assurances, covenants and other obligations required under the grant 
agreement with the Department and to ensure compliance by the grant 
recipient with the grant agreement and grant assurances. If the 
applicant is a public-private partnership, a public government member 
of the organization must be identified as the community's sponsor to 
receive project cost reimbursements. A community may designate only one 
government entity as the legal sponsor, even if it is applying as a 
consortium that consists of two or more local government entities. 
Private organizations may not be designated as the legal sponsor of a 
grant under the Small Community Program. The community has the 
responsibility to ensure that the legal sponsor and grant recipient of 
any funding has the legal authority under state and local laws to carry 
out all aspects of the grant, and the Department may require an opinion 
of the legal sponsor's attorney as to its legal authority to act as a 
sponsor and to carry out its responsibilities under the grant 
agreement. The applicant should also provide the name of the signatory 
party for the legal sponsor.

V. Air Service Development Zone Designation

    The statute authorizing the Small Community Program also provides 
that the Department will designate one of the grant recipients in the 
program as an Air Service Development Zone (ASDZ). A current grant 
recipient remains active as the ASDZ designee. As a result, the 
Department is not currently soliciting applications for selection as an 
ASDZ designee.

VI. Grant Administration

    Grant Agreements: Communities awarded grants are required to 
execute a grant agreement with the Department before they begin to 
expend funds under the grant award. Applicants should not assume they 
have received a grant, nor should they obligate or expend local funds 
prior to receiving and fully executing a grant agreement with the 
Department. Expenditures made prior to the execution of a grant 
agreement, including costs associated with preparation of the grant 
application, will not be reimbursed. Moreover, there are numerous 
assurances that grant recipients must sign and honor when federal funds 
are awarded. All communities receiving a grant will be required to 
accept and meet the obligations created by these assurances when they 
execute their grant agreements. Copies of assurances are available 
online at https://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, (click on ``SCASDP Grant Assurances'').
    Payments: The Small Community Program is a reimbursable program; 
therefore, communities are required to make expenditures for project 
implementation under the program prior to seeking reimbursement from 
the Department. Project implementation costs are reimbursable from 
grant funds only for services or property delivered during the grant 
term. Reimbursement rates are calculated as a percentage of the total 
federal funds requested divided by the federal funds plus the local 
cash contribution (which is not refundable). The percentage is 
determined by: (SCASDP Grant Amount) / (SCASDP Grant Amount + Local 
Cash Contribution + State Cash Contribution, if applicable). Payments/
expenditures in forms other than cash (e.g., in-kind) are not 
reimbursable. For example, if a community requests $500,000 in federal 
funding and provides $100,000 in local contributions, the reimbursement 
rate would be 83.33 percent: ((500,000)/(500,000 + 100,000)) = 83.33.
    Grantee Reports: Each grantee must submit quarterly reports on the 
progress made during the previous quarter in implementing its grant 
project. In addition, each community will be required to submit a final 
report on its project to the Department, and 10 percent of the grant 
funds will not be reimbursed to the community until such a final report 
is received. Additional information on award administration for 
selected communities will be provided in the grant agreement.

VII: Questions and Clarifications

    For further information concerning the technical requirements set 
out in this Order, please contact Brooke Chapman at 
Brooke.Chapman@dot.gov or (202) 366-0577. A TDD is available for 
individuals who are deaf or hard of hearing at (202) 366-3993. The 
Department may post answers to questions and other important 
clarifications in the above-captioned docket on www.regulations.gov and 
on the program Web site at https://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP. This Order is issued under 
authority delegated in 49 CFR 1.25a(b).
    Accordingly,
    1. Applications for funding under the Small Community Air Service 
Development Program should be submitted via www.grants.gov as an 
attachment to the SF424 by 5:00 p.m. EDT, July 31, 2014; and
    2. This Order will be published in the Federal Register, posted on 
www.grants.gov and www.regulations.gov, and served on the United States 
Conference of Mayors, the National League of Cities, the National 
Governors Association, the National Association of State Aviation 
Officials, County Executives of America, the American Association of 
Airport Executives, and the Airports Council International-North 
America.


[[Page 38115]]


    Issued in Washington, DC on June 30, 2014.
Brandon Belford,
 Deputy Assistant Secretary for, Aviation and International Affairs.
    An electronic version of this document is available online at 
www.regulations.gov

Appendix A

Additional Information on Applying Through www.grants.gov

    Applications must be submitted electronically through https://www.grants.gov/web/grants/applicants/apply-for-grants.html. To apply 
for funding through www.grants.gov, applicants must be properly 
registered. The Grants.gov/Apply feature includes a simple, unified 
application process that makes it possible for applicants to apply 
for grants online. There are five ``Get Registered'' steps for an 
organization to complete at Grants.gov. Complete instructions on how 
to register and apply can be found at https://www.grants.gov/applicants/organization_registration.jsp. If applicants experience 
difficulties at any point during registration or application 
process, please call the www.grants.gov Customer Support Hotline at 
1-800-518-4726, Monday-Friday from 7 a.m. to 9 p.m. EDT.
    Registering with www.grants.gov is a one-time process; however, 
processing delays may occur and it can take up to several weeks for 
first-time registrants to receive confirmation and a user password. 
It is highly recommended that applicants start the registration 
process as early as possible to prevent delays that may preclude 
submitting an application by the deadlines specified. Applications 
must be submitted and time-stamped not later than 5 p.m. EDT on July 
31, 2014 (the Application Deadline), and, as set forth below, 
failure to complete the registration process before the Application 
Deadline is not a valid reason to permit late submissions. In order 
to apply for SCASDP funding through https://www.grants.gov/web/grants/applicants/apply-for-grants.html, all applicants are required 
to complete the following:
    1. DUNS Requirement. The Office of Management and Budget 
requires that all businesses and nonprofit applicants for federal 
funds include a Dun and Bradstreet Data Universal Numbering System 
(DUNS) number in their applications for a new award or renewal of an 
existing award. A DUNS number is a unique nine-digit sequence 
recognized as the universal standard for identifying and keeping 
track of entities receiving federal funds. The identifier is used 
for tracking purposes and to validate address and point of contact 
information for federal assistance applicants, recipients, and sub-
recipients. The DUNS number will be used throughout the grant life 
cycle. The DUNS number must be included in the data entry field 
labeled ``Organizational DUNS'' on the SF-424 form. Instructions for 
obtaining DUNS number can be found at the following Web site: https://www.grants.gov/web/grants/applicants/organization-registration/step-1-obtain-duns-number.html.
    2. System for Award Management. In addition to having a DUNS 
number, applicants applying electronically through Grants.gov must 
register with the federal System for Award Management (SAM). Step-
by-step instructions for registering with SAM can be found here: 
https://www.grants.gov/web/grants/applicants/organization-registration/step-2-register-with-sam.html. All applicants must 
register with SAM in order to apply online. Failure to register with 
the SAM will result in your application being rejected by Grants.gov 
during the submissions process.
    3. Username and Password. Acquire an Authorized Organization 
Representative (AOR) and a www.grants.gov username and password. 
Complete your AOR profile on www.grants.gov and create your username 
and password. You will need to use your organization's DUNS Number 
to complete this step. For more information about creating a profile 
on Grants.gov visit: https://www.grants.gov/web/grants/applicants/organization-registration/step-3-username-password.html.
    4. After creating a profile on Grants.gov, the E-Biz Point of 
Contact (E-Biz POC)--a representative from your organization who is 
the contact listed for SAM--will receive an email to grant the AOR 
permission to submit applications on behalf of their organization. 
The E-Biz POC will then log in to Grants.gov and approve an 
applicant as the AOR, thereby giving him or her permission to submit 
applications. To learn more about AOR Authorization visit: https://www.grants.gov/web/grants/applicants/organization-registration/step-4-aor-authorization.html. To track an AOR status visit: https://www.grants.gov/web/grants/applicants/organization-registration/step-5-track-aor-status.html.
    Applicants are, therefore, encouraged to register early. The 
registration process can take up to four weeks to be completed. 
Thus, registration should be done in sufficient time to ensure it 
does not impact your ability to meet required submission deadlines. 
You will be able to submit your application online any time after 
you have approved as an AOR.
    5. Electronic Signature. Applications submitted through 
Grants.gov constitute a submission as electronically signed 
applications. The registration and account creation with Grants.gov 
with E-Biz POC approval establishes an Authorized Organization 
Representative (AOR). When you submit the application through 
Grants.gov, the name of your AOR on file will be inserted into the 
signature line of the application. Applicants must register the 
individual who is able to make legally binding commitments for the 
applicant organization as the Authorized Organization Representative 
(AOR);
    6. Search for the Funding Opportunity on www.grants.gov. Please 
use the following identifying information when searching for the 
SCASDP funding opportunity on www.grants.gov. The Catalog of Federal 
Domestic Assistance (CFDA) number for this solicitation is 20.930, 
titled Payments for Small Community Air Service Development.
    7. Submit an application addressing all of the requirements 
outlined in this funding availability announcement. Within 24-48 
hours after submitting your electronic application, you should 
receive an email validation message from www.grants.gov. The 
validation message will tell you whether the application has been 
received and validated or rejected, with an explanation. You are 
urged to submit your application at least 72 hours prior to the due 
date of the application to allow time to receive the validation 
message and to correct any problems that may have caused a rejection 
notification.
    8. Timely Receipt Requirements and Proof of Timely Submission. 
Proof of timely submission is automatically recorded by Grants.gov. 
An electronic timestamp is generated within the system when the 
application is successfully received by Grants.gov. The applicant 
will receive an acknowledgement of receipt and a tracking number 
from Grants.gov with successful transmission of the application. 
Applicants should print this receipt and save it, as a proof of 
timely submission.
    9. Grants.gov allows applicants to download the application 
package, instructions and forms that are incorporated in the 
instructions, and work offline. In addition to forms that are part 
of the application instructions, there will be a series of 
electronic forms that are provided utilizing Adobe Reader.
    a. Adobe Reader. Adobe Reader is available for free to download 
from on the Download Software page: https://www.grants.gov/help/download_software.jsp. Adobe Reader allows applicants to read the 
electronic files in a form format so that they will look like any 
other Standard form. The Adobe Reader forms have content sensitive 
help. This engages the content sensitive help for each field you 
will need to complete on the form. The Adobe Reader forms can be 
downloaded and saved on your hard drive, network drive(s), or CDs.
    b. Note: For the Adobe Reader, Grants.gov is compatible with 
versions 8.1.1 and later versions. Always refer to the Download 
Software page for compatible versions for the operating system you 
are using. Please do not use lower versions of the Adobe Reader.
    c. Mandatory Fields in Adobe Forms. In the Adobe Reader forms, 
you will note fields that will appear with a background color on the 
data fields to be completed. These fields are mandatory fields and 
they must be completed to successfully submit your application.

    Note: When uploading attachments please use generally accepted 
formats such as .pdf, .doc, and .xls. While you may imbed picture 
files such as .jpg, .gif, .bmp, in your files, please do not save 
and submit the attachment in these formats. Additionally, the 
following formats will not be accepted: .com, .bat, .exe, .vbs, 
.cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora, .sys, and .zip.

Experiencing Unforeseen www.grants.gov Technical Issues

    Late Application Notice: Applicants who are unable to 
successfully submit their application package through grants.gov 
prior to the Application Deadline due to technical difficulties 
outside their control must submit an email to SCASDPgrants@dot.gov 
with the following information:

[[Page 38116]]

     The nature of the technical difficulties experienced in 
attempting to submit an application;
     A screenshot of the error;
     The Legal Sponsor's name; and
     The Grants.Gov tracking number (e.g. GRANT12345678).
    DOT will consider late applications on a case-by-case basis and 
reserves the right to reject late applications that do not meet the 
conditions outlined in the Order Soliciting Small Community Grant 
Proposals. Late applications from applicants that do not provide DOT 
an email with the items specified above will not be considered.
    If you experience unforeseen www.grants.gov technical issues 
beyond your control that prevent you from submitting your 
application by the Application Deadline, you must contact us at 
[SCASDPgrants@dot.gov or] Vince.Corsaro@dot.gov or (202) 366-1842 by 
5:00 p.m. EDT the day following the deadline and request approval to 
submit your application after the deadline has passed. At that time, 
DOT staff will require you to provide your DUNS number and your 
www.grants.gov Help Desk tracking number(s). After DOT staff review 
all of the information submitted and contact the www.grants.gov Help 
Desk to validate the technical issues you reported, DOT staff will 
contact you to either approve or deny your request to submit a late 
application through www.grants.gov. If the technical issues you 
reported cannot be validated, your application will be rejected as 
untimely.
    To ensure a fair competition for limited discretionary funds, 
the following conditions are not valid reasons to permit late 
submissions: (1) Failure to complete the registration process before 
the deadline date; (2) failure to follow www.grants.gov instructions 
on how to register and apply as posted on its Web site; (3) failure 
to follow all of the instructions in the funding availability 
notice; and (4) technical issues experienced with the applicant's 
computer or information technology (IT) environment.
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Appendix D

Confidential Commercial Information

    Applicants will be able to provide certain confidential business 
information relevant to their proposals on a confidential basis. 
Under the Department's Freedom of Information Act regulations (49 
C.F.R. Sec.  7.17), such information is limited to commercial or 
financial information that, if disclosed, would either likely cause 
substantial harm to the competitive position of a business or 
enterprise or make it more difficult for the Federal Government to 
obtain similar information in the future.
    Applicants seeking confidential treatment of a portion of their 
applications must segregate the confidential material in a sealed 
envelope marked ``Confidential Submission of X (the applicant) in 
Docket DOT-OST-2014-0113'' and include with that material a request 
in the form of a motion seeking confidential treatment of the 
material under 14 C.F.R. Sec.  302.12 (``Rule 12'') of the 
Department's regulations. The applicant should submit an original 
and two copies of its motion and an original and two copies of the 
confidential material in the sealed envelope.
    The confidential material should not be included with the 
original of the applicant's proposal that is submitted via 
www.grants.gov. The applicant's original submission, however, should 
indicate clearly where the confidential material would have been 
inserted. If an applicant invokes Rule 12, the confidential portion 
of its filing will be treated as confidential pending a final 
determination. All confidential material must be received by 5:00 
p.m. EDT, July 31, 2014, and delivered to the U.S. Department of 
Transportation, Office of Aviation Analysis, 8th Floor, Room W86-
307, 1200 New Jersey Ave. SE., Washington, DC 20590.

[FR Doc. 2014-15696 Filed 7-2-14; 8:45 am]
BILLING CODE 4910-9X-P