Order 2014

- 6

- 17
Served: July 3 , 2014

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Depa rtm ent of Transportation

on the 30 th day of June

, 201 4

In the Matter of Grant Applications

SMALL COMMUNITY AIR SERVICE
DEVELOPMENT PROGRAM

under 49 U.S.C. § 41743 et seq. Docket DOT

- OST

- 2014

- 0113

ORDER SOLICITING
SMALL COMMUNITY GRANT PROPOSALS

By this order, the Department of Transportation (the Department or DOT) invites proposals from
communities and/or consortia of c ommunities 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. Application s of no more than 2 0 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 su bmitted to www.grants.gov no later than 5 :00 PM 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 bef ore 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 Hotlin e at 1

- 800

- 518

- 4726, Monday

- Friday, from 7:00 a.m. to 9:00 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

.2

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 (P ub

. L. No. 106

- 181 ) and reauthorized by the Vision 100

- Century of Aviation Reauthorization Act ( P ub

. L. No. 108

- 176 ) and subsequently the FAA Modernization and Reform Act of 2012 (P ub

. L. No. 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 as sistance in the form of monetary grants that are

disbursed on a reimbursable basis. Authorization for this program is codified at 49 U.S.C. § 417 43.

The Small Community Program is authorized to receive appropriations under 49 U.S.C. § 41743(e)(2), as ame nded. Appropriations are provided for this program for award selection in

FY 2014 pursuant to FAA 2012 and the FY 2014 Appropriations Act (Pub. L. No. 113

- 76)

. The Department has up to $ 7 million available for FY 2014 grant awards to carry o ut this progr am

. 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 m illion.

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 i nsufficient air carrier service or unreasonably high air fares; and

1 See

, http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- s ervice/SCASDP

, for the FAA’s 1997 list of Primary and Nonprimary Commercial Service Airports.3

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 c ommunities or consortia of communities, or a combination thereof, from the

same s tate may be selected to participate in the program in any fiscal year. No more than 40

communities or consortia of communitie s, 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 jo int 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 eli gible 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. Howev er, 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 for EAS

- subsidized communities to support any new competing air service. Furth ermore, 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 t o 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.4

Applicants should also keep in mind the following statutory restrictions on eligible project s:

• 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 previou s 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 applicat ion. 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).

Concurrent Grant Limitation : A community or consortium may have only one SCASDP grant at any time. If a community or co nsortium 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 gran t, 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 consor tium 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 air craft
gates

, and other airport terminal expansion s 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 Offic e to discuss potential eligibility for grants under the Airport Improvement Program.

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 lis ted in the scope of an earlier grant agreement, it may not receive funding for that project in a subsequent round of SCASDP funding.5

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 t wo categories of selection criteria: Priority Selection Criteria and Secondary Selection Criteria. Applications that meet one or more of the P riority S election C riteria will be viewed more favorably than those that do not meet any P riority S election C rit eria.

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 c onsideration. 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 com pares 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 n ational a verages

. The report compares a community’s air fares to the average for all o ther 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. T he community or consortium will provide a portion of the cost of the activity from local sources other than airport r evenue sources

– The Department will consider whether a community or consortium proposes local funding for the proposed project. Applications providing pr oportionately 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
viewe d 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. T he community or consortium has established or will establish a public

- private

p artnership 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 pa rtnership will actively participate in the implementation of the proposed project will be viewed more favorably

.6

4. T he assistance will provide material benefits to a broad segment of the traveling public, including business es , educational institutions, and other enterprises, whose access to the national air transp ortation system is limited

– The Department will consider whether the proposed project would provide, to a broad segment of the community’s traveling public, important benefits relevant to the commu nity . 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 o ut 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 C.F.R. Part 139 . Air service providers proposed for the new service must have met or be able to meet in a

reasonabl y short period of time, all Department requirements for air service certificati on, 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 consorti um 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 n ew 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 i ntermodal 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/i ntra city passenge r bus service, or marketing of intermodal surface transportation options also avail able to air travelers ; and

• whether the proposed project, if successfully implemented, could serve as a working model for other communities

.7

2. Participation

– The Department w ill 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 participatio n in the proposed project.

3. Location

– The Departmen t 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 wel l 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 c onsider :

• 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 con tinued 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 A nal ysis : Applicants requesting funds for a revenue guarantee/subsidy/ financial incentive are encouraged to conduct and reference in their application s 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 M arketing C ommitment : Applicants requesting funds f or a revenue guarantee/subsidy/financial incentive are encouraged to designate in their applications a portion of the project funds ( f ederal, local or in

- kind) for the development and implementation of a marketing plan in support of the service sought.8

Su bsidies 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 communit y that

propose s to use the grant funds for service in a city

- pair market that i s 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 S haring 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 S ection VI

- Grant Administration

- Payments for more information).
Cash contr ibutions from airport revenues must be identified separately from cash contributions from other community sources, and cash contributions from the s tate and/or local government should be separately identified and described.

Types of contributions

. Contri butions 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 com munities that propose to contribute to the grant project, that contribution can be in the following forms:

Cash from non

- airport revenues. A cash contribution can include funds from the s tate,
the c ounty 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 donat ed 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 com munity. 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

.9

III. EVALUATION AND SELECTION PROCESS

The Department will first review each application to determine whe ther it has satisfied the following eligibility requirements:

1. The applicant is an e ligible a pplicant;

2. The application is for an e ligible p roject (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 appli cation 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 selec tion 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 tha n 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 th e 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,” t he Department will co nsider 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, o r 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. Gi ven the competitive nature of the grant process, the Department will not meet with applicants regarding their applications. A ll

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 parti es serve d with this Solicitation Order, and posted on the Department’s SCASDP website at http://www.dot.gov/policy/aviation

policy/small

- community

- rural

- air

- service/SCASDP

.10

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 2 0 pages ( excluding the completed SF424, Summary Information schedule, and any letters from the community or an air carrier showing support for the application ) tha t meets all 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 Devel opment 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 bee n submitted through www.grants.gov
and time

- stamped by 5 :00 PM 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 inf ormation described in Appendix A.

Registration wit h 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

infor mation 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 direct ly address those needs/deficiencies

. At a minimum, however, each application must include the following information :

• A description of the communit y’ s air service needs or deficiencies , including information
about : (1) major origin/destination markets that are not now serv ed or are not served adequately; (2) fare levels that the community deems relevant to considerati on of its11

application , including market analyses 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 promotion al 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 in corporate the relevant elements of the application’s strategic plan into the grant agreement ’s project scope

. Applicants should note that, o nce a grant agreement is signed, the agreement cannot be amended in a way that would alter the project scope. Appl icants also are advised to obtain firm assurances from air carriers proposing to offer new air services if a grant is
awarded. Strategic plans should :

o f or applications involving new or improved service, explain how the service will

become self

- sufficient ;

o f ully and clearly outline the goals and objectives of the p roject ; and

o 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 detai led 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 fu nds ( 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 spons or must be legally, financially, and otherwise

able to execute the grant agreement and administer the gr ant, 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 me mber 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 l ocal 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 lega l authority under s tate 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 agre ement

. The applicant should also provide the name of the signatory party for the legal sponsor

.12

V. AIR SERVICE DEVELOPM ENT ZONE DESIGNATION The statute authorizing the Small Community P rogram also provides that the Department will designate one of the gr ant 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.

V I

. GRANT ADM INISTRATION

Grant A greement s : 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 obli gate 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 reimb ursed. 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 t heir grant agreements. Copies of assurances are available online at http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/SCASDP

, ( cli ck 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 delive red during the grant term. Reimbursement rates are calculated as a percentage of the total f ederal funds requested divided by the f ederal funds plus the local cash contribution (which is not refundable). The percentage is determined by: (SCASDP Grant Am ount) ÷ (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 f ederal funding and

p rovides $100,000 in local contribution s, the reimbursement rate would be 83.33 percent: ((500,000) / (500,000 + 100,000)) = 83.33.

Grantee R eports : Each grantee must submit quarterly reports on the progress made during the previous quarter in implementin g 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 infor mation 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 website at http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/SCASDP

.13

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 PM 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 I nternational

- North America

.

Issued in Washington, D.C. on June 30, 2014

By:

Brandon Belford Deputy Assistant Secretary for
Aviation and International Affairs

(SEAL)

An electronic version of this document is available

online at www.regulations.gov

.APPENDIX A Page 1

ADDITIONAL INFORMATION ON APPLYING THROUGH WWW.GRANTS.GOV

Applications must be submitted electronically through http://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 http://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 :00 AM

to 9 :00 PM ED T.

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 5:00 PM 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 http://www.grants.gov/web/grants/applicants/apply

- for

- gran ts.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 f ederal funds include a Dun and Bradstreet Data
Universal Numbering System (D UNS) 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 f ederal funds. The identifier is used for tracking purposes and to validate address and point of contact information for f ederal a ssistance 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 website : http://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 f ederal System for Award Management (SAM). Step

- by

- step instructions for registering with SAM can be

found here: http://www.grants.gov/web/gr ants/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 submission s process.APPENDIX A Page 2

3. Username and Password. Acquire an Authorized Organization Representative (AOR)

and a www.grants.gov u sername and p assword. 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: http://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 applic ations 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 : http://www.grants.gov/web/grants/applicants/organization

registration/step

- 4

- aor

- authorization.html

. To track an AOR status visit: http://www.grants.gov/web/grants/applicants/organization

- registration/step

- 5

- track

- aor

status.html

.

Applicants are, therefore, encouraged to register early. The registrati on 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 yo u have approved as an A O R.

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 e stablishes an Author ized 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 bindi ng 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 a pplication a ddressing a ll of the r equirements o utlined in this f unding

a vailability a nnouncement. Within 24

– 48 hours after submitting your electronic application, you should receive an email validation message from ww w.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 tim e to receive the validation message and to correct any problems that may have caused a rejection notification.APPENDIX A Page 3

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. Applicant s 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: http://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 sensit ive 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 : F or 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 Read er 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.

N OTE : 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 submi t 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:

• T he 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

- cas e basis and re serves the right to reject late applications that do not meet the conditions outlined in the Order Soliciting Small CommunityAPPENDIX A Page 4

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 [SCASDPgra nts@dot.gov or] Vince.Corsaro @dot.gov or (202) 366

- 1842 by 5:00 PM 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 y our 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 r ejected as untimely.

To ensure a fair competition for limited discretionary funds, the following conditions are not valid reasons to permit late submissions: (1) f ailure 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 website ; (3) failure to follow all of the ins tructions in the funding availability notice; and (4) technical issues experienced w ith the applica nt’s computer or information technology (IT) environment.APPENDIX B Page 1

APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 2014

- 0133

SUMMARY INFORMATION 1

All applicants must submit this Summary Information schedule , as the application

co versheet
, a completed standard form SF424 and the full application proposal on www.grants.gov

.
For your preparation convenience, this Summary Information schedule is located at http://www.dot.gov/policy/aviation

- pol icy/small

- community

- rural

- air

- service/SCASDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL

NUMBERING SYSTEM (DUNS) NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER

(EIN) OR TAX ID

. Legal Sponsor Name:

Name of Signa tory Party for Legal Sponsor:

DUNS Number:

EIN/ Tax ID:

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING :

1.

____________________________________________________ 2._____________________

_______________________________ 3.________

____________________________________________ 4.

____________________________________________________

C

. P ROVIDE THE FULL AIRPORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE

APPLICANT ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FO R THE AIRPORT ( S ) THAT ARE ACTUALLY

S EEKING SERVICE ).

1. 2

.

3

. 4

.

1 Note that the Summary Information does not count against the 20

- page limit of the SCASDP application.APPENDIX B Page 2

D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPER ATING CERTIFICATE IS SUED BY

THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139 ? (I F “ N O ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER P ART 139 IS PENDING

. )

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ D. L IST THE 2

- DIGIT CONGRE SSIONAL DISTRICT COD E APPLICABLE TO THE SPONSORING

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

.

1. 2

.

3

. 4

.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate C onsortium

Community currently receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Provide year of grant (s) :

__________________________ _____ ; and
, the text of the grant agreement section(s) setting forth the scope of the grant project :

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

F

. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.APPENDIX B Page 3

G

. P ROJECT P ROPOSAL :

1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restora tion

Regional Service Surface Transportation Professional Services 2

Other (explain below)

2. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising ) : promotion of the air service to the public

Start

- up Cos t Offset : offsetting expenses to assist an air service provider in setting up a

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee : a n agreement with an air service provider setting forth a minimum

guarant eed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of Air Carrier : air service development activities to recruit new air service,

including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers : waiv er of airport fees, such as landing fees, to encourage new air service ;

counted as in

- kind contributions only

Ground Handling Fee : reimbursement of expenses for passenger, cabin, and ramp (below

wing) se rvices provided by third party ground handlers

Travel Bank : travel pledges, or deposited monetary funds

, from participating parties for

the purchas e of air travel on an air carrier

, with defined procedures for the subsequent use

of the pledges or the depo sited funds; counted as in

- kind contributions only

2 “Professional Ser vices” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.APPENDIX B Page 4

Other (explain below)

______________________________________________________________________________

______________________________________________________________________________

H

. E XISTING L ANDING A I DS AT L OCAL A IRPORT :

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

I

. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested

2 Sta te cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

3 Total local cash funds ( 3a + 3b )

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution * *

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION

( 5

a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

J . IN

- KIND CONTRIBUTIONS **

For funds in lines 5 a (Airport In

- Kind contribution) and 5 b (Other In

- Kind contribution), please

describe the sou rce(s) of fund(s) and the value ($) of each.APPENDIX B Page 5

K

. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN A FFECTED S T ATE U NDER E XECUTIVE

O RDER 12372 P ROCESS ?

a. This application was made available to the S tate under the Executive Order 12372

Process for review on ( date) _____________.

b. Program is subject to E.O. 12372, but has not been selected by the S tate for review.

c. Program is not covered by E.O. 12372.

L

. I S T HE L EAD A PPLICANT OR A NY C O

- A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ?

(I F “Y ES ”, P ROVIDE E XPLANATION )

No Yes ( explain)

______________________________________________________________________________

______________________________________________________________________________APPENDIX C

APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action

Determine El igibility

New Grants.gov users must r egister with www.grants.gov

. Existing Grants.gov users must verify ex isting www.grants.gov account has not expired
and the A uthorized O rganiz ation R epresentative (AOR) is current

. For Submission by 5:00 PM EDT on July 31 , 2014

Communities with active SCASDP grants: n otify DOT/X50 of intent to terminate

exis ting grant in order to be eligib le for selection in FY2014

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

S ummary Information s chedule complete and used as cover sheet (see Appendix B )

A pplication of up to 2 0 one
- sided pages (excluding any letters from the
communi ty or an air carrier showing support for the application ) , to include:

• A description of the community’ s air service needs or deficiencies

.

• A strategic plan for meeting those needs under the Small Community Program

.

• A detailed description of the fundi ng necessary for implementation of the community's project

.

• An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

• Designation of a legal sponsor responsible for admi nistering the program

.

• A motion for confidential treatment ( if applicable)

– see Appendix D below

.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. § 7.17), such information is limited to commercial or financial information that, if disclosed, would either likely cause substantial harm to the competitive posi tion 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 s ealed envelope marked “Confidential Submission of X (the a pplicant)
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

. § 302.12 ( “ Rule 12 ” ) of the Dep artment’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 ap plicant’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 PM EDT , July 31 , 2014 , and
delivered to the U.S. Department of Transportation, Office of Aviation An alysis, 8 th Floor, Roo m W86

- 3 07 , 1200 New Jersey Ave. SE, Washington, DC 20590.