Recovery.gov - Track the Money

The purpose of the grants is to make capital and infrastructure improvements at small shipyards that facilitate the efficiency, cost-effectiveness and quality of domestic ship construction, conversion, or repair for commercial and federal government use. The grants cover a maximum of 75-percent of the estimated cost of improvements. The shipyard ownership is responsible for the remainder.

The Maritime Administration, or MARAD, intends to award the full amount of the available funding through grants to the extent that there are worthy applications. Not more than twenty-five percent of the funds available will be awarded to shipyard facilities that have more than 600 production employees.

A shipyard is a commercial facility that builds and delivers or repairs completed vessels. Companies that repair or build components or ship systems are not eligible.

The shipyard facility for which a grant is sought must be in a single geographical location within or near a maritime community, and may not have more than 1200 production employees. Other considerations include economic circumstances and conditions of the maritime community near to which a shipyard facility is located; and projects that would be effective in fostering efficiency, competitive operations, and quality ship construction or repair.

Challenge 1: The applicant may not be able to fully fund the twenty-five percent they are required to pay prior to payment of any federal funds for a project.

Challenge 2: Implementation of reporting requirements including grantee compliance with enhanced Recovery Act reporting requirements.

Challenge 3: Communicating program information to grantees and the public.


Mitigation strategies:
Mitigation Strategy 1: If the Administrator of the Maritime Administration 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) of the above Federal Register reference. Unless waived for good cause, the awardee’s matching requirement must be paid prior to payment of any federal funds for the project.

Mitigation Strategy 2: Grantees will provide quarterly Performance Program Reports (Form SF-PPR) including performance narrative addressing and updating status and progress of grant-funded projects. Input provided in these reports will inform program oversight and project-level and program-level tracking and reporting.

Mitigation Strategy 3: In addition to notifications to individual grantees, as necessary or appropriate, the program will utilize agency internet sites for posting/provision of program information and updates. DOT will also provide program information via the internet.

The Maritime Administration will announce awards in August 2009. All awards granted will be posted as a new release on the Maritime Administration's Internet Web site, which may be found by clicking on the following link:

http://www.marad.dot.gov/news_room_landing_page/news_item_summary/news_item_summary_2009.htm

Grants will have agreements in place detailing each grantee’s methodology and timeline for implementing the project. Grants will be monitored through the performance progress report's reporting requirements, and in accordance with the Government Performance Results Act of 1993 reporting cycle for annual performance reports.

Grantees are required to submit a monthly report to the program manager within the Maritime Administration. The grantee will be required to provide the detailed project progress, along with their request for reimbursement as expenses are paid out.

The performance data will be reviewed by the program manager and management within the Maritime Administration to validate for accuracy and timeliness of the project to ensure they are meeting project milestones. If there are any inconsistencies, the program manager will contact the grantee via phone.

The awardees will be required to maintain records, which they must have available for the Maritime Administration to review and audit, and submit periodic reports to include the number of direct, on-project jobs created or sustained by the award. They will also have to include, to the extent possible, the estimated number of indirect jobs created or sustained in the associated supplying industries that includes 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.

Accountability will be provided through a detailed methodology and timeline for implementing the project or by a prioritized list of project elements and cost of each if funding for entire project is not available.

All funds are awarded and spent as planned.

Grants are awarded to private shipyards, which support the economic development of local port communities. Also, through shipbuilding and repairs, the shipyards contribute to maintaining or expanding waterborne freight transport capacity serving suppliers, manufacturers, retailers and consumers. Waterborne transport can help alleviate congestion in other transportation modes, and significantly reduce fuel consumption per ton-mile, with a related carbon footprint reduction, contributing to livability and communities. In addition, as waterborne transport provides a cost-effective transportation alternative, it can impact the cost of goods consumers use every day and contribute to improving quality of life.

Shipyards will be required to complete a NEPA checklist as part of their award.