Order: 2011-7-1

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 1st day of July, 2011

In the Matter of Grant Applications

SMALL COMMUNITY AIR SERVICE

DEVELOPMENT PROGRAM

under 49 U.S.C. §§41743 et seq.

 DOCKET DOT-OST-2011-0119

 Served: July 1, 2011

ORDER SOLICITING

SMALL COMMUNITY GRANT PROPOSALS

OVERVIEW

By this order, the Department 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 and/or SCASDP) to address air service and 

airfare problems in their communities. Proposals, including all required information, must be 

submitted to www.grants.gov no later than 5 PM, Eastern Daylight Time (EDT), on Tuesday, 

August 2, 2011. Communities are reminded to register with Grants.gov early in the application 

period since the mandatory Grants.gov registration process can take up to three weeks to 

complete. Tutorials and other guidance for completing the required registration and application 

procedures are available at the “Applicant Resources” page of Grants.gov.1 If a community is a 

registered user of Grants.gov, it is the community’s responsibility to verify that the 

Grants.gov account is valid and that the AOR (Authorized Organization Representative) is 

current and approved. 

Required Steps

• Determine eligibility (see Page 4);

:

• Register with www.grants.gov;

• Submit an Application for Federal Domestic Assistance (SF424);

 1 See http://www07.grants.gov/applicants/app_help_reso.jsp.
[2]

• Submit a cover sheet including all required information (see Appendix B);

• Submit a completed “Summary Information” schedule (see Appendix C); 

• Submit a detailed proposal which meets all required criteria (see Appendix D); 

• Attach any letters of support to the proposal, which should be addressed to Aloha Ley, 

Associate Director, Small Community Program; and,

• Provide separate submission of confidential material, if requested. (see Appendix E)

An application will not be deemed complete and will be ineligible for a grant award until and 

unless all required materials, including SF424, have been submitted through www.grants.gov by 

the 5 PM EDT August 2, 2011, deadline.

This order is organized into the following sections:

I. Background

II. Eligibility Information

III. Types of Projects

IV. Application Review Information

V. Award Administration Information

VI. Appendix A - 49 U.S.C. § 41743

VII. Appendix B – Cover Sheet Contents

VIII. Appendix C – Summary Information

IX. Appendix D – Application Checklist

X. Appendix E – Confidential Commercial Information

I. BACKGROUND

The Small Community Program was established under the Wendell H. Ford Aviation Investment 

and Reform Act for the 21st Century (AIR-21), P.L. 106-181, and reauthorized under the Vision 

100-Century of Aviation Reauthorization Act, P.L. 108-176 (Vision 100). The program is 

designed to provide financial assistance to small communities to help them enhance their air 

service. The Department provides this assistance in the form of financial grants that are 

disbursed on a reimbursable basis.2 

Authorized grant projects may include activities that extend over a multi-year period under a 

single grant award; however, because there is a priority established by statute for communities 

and consortia that show that they can use the assistance “in a timely fashion,” applicants are 

advised to consider that criterion in developing their proposals.

 2 For detailed background on the Small Community Program, see our website at: 

http://ostpxweb.dot.gov/aviation/X-50%20Role_files/smallcommunity.htm.
[3]

Current funding and limitations

The Small Community Program is authorized to receive appropriations under 49 U.S.C. 

41743(e)(2), as amended. Appropriations are provided for the program pursuant to Section 1104 

of the FY 2011 Full-Year Continuing Appropriations Act (P.L. 112-10 (extending the FY 2010 

Consolidated Appropriations Act (P.L. 111-117)). The Department has up to $15 million 

available for FY 2011 grant awards to carry out the Small Community Program. 

The program is limited to a maximum of 40 grant awards, with a maximum of four grants per 

State, in each year the program is funded. There are no limits on the amounts of individual 

awards, and the amounts awarded will vary depending upon the features and merits of the 

proposals selected. In past years, the Department’s individual grant sizes have ranged from 

$20,000 to nearly $1.6 million.

II. ELIGIBILITY INFORMATION

Registration with grants.gov

Communities not previously registered are encouraged to register with www.grants.gov early 

during the application period because the registration and SF424 application process required by 

www.grants.gov can take up to three weeks to complete. A community may file its proposal 

anytime after the initial registration process has been completed on www.grants.gov as long as 

the entire application is filed by August 2, 2011. 

Communities are encouraged to contact the Grants.gov help desk for any technical assistance in 

filing their applications. The Grants.gov “Applicant Resources” page 

(www07.grants.gov/applicants/app_help_reso.jsp) provides instructions and guidance on 

completing the registration and application processes. Further, grant proposals must be 

submitted as an attachment to the SF424. 

Eligibility Requirements

When selecting applicants to participate in the Small Community Program, the Department is 

statutorily required to apply the following eligibility criteria3

1. As of calendar year 1997, the airport serving the community was not larger than a small hub 

airport, and it has insufficient air carrier service or unreasonably high air fares,

:

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; 

3. An applicant may not receive an additional grant to support the same project from a previous 

grant;

4. An applicant may not receive an additional grant, prior to the completion of its previous 

grant;

 

3 49 U.S.C. §41743 (c). 
[4]

5. No more than 4 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; and

6. 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.

In assessing whether a previous grantee’s current proposal represents a new project, we compare 

the goals and objectives of the earlier grant, including the key components of the means by 

which those goals and objectives were to be achieved, to the current proposal. 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 for another revenue guarantee for the same service 

would be disqualified under Section 41743(c), even if the revenue guarantee were structured 

differently or the type of carrier were different. However, we do not read Section 41743(c) to 

disqualify a new application 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. We 

recognize that not all revenue guarantees, marketing agreements, equipment purchases, etc. are 

of the same nature, and that if a subsequent proposal incorporates different goals or significantly 

different components, it may be sufficiently different to constitute a new project under Section

41743(c).

The Department is authorized to award grants 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.4

Priority Considerations:

Priority factors considered. The law directs the Department to give priority consideration to 

those communities or consortia where:5

• air fares are higher than the national average air fares for all communities;

• the community or consortium will provide a portion of the cost of the activity from local 

sources other than airport revenue sources;

• the community or consortium has established or will establish a public-private 

partnership to facilitate air carrier service to the public; 

• the assistance will provide material benefits to a broad segment of the traveling public, 

including business, educational institutions, and other enterprises, whose access to the 

national air transportation system is limited; and 

 

4 49 U.S.C. §41743 (d).

5 49 U.S.C. §41743 (c)(5).
[5]

• the assistance will be used in a timely manner.

Additional factors considered. Applications will be evaluated against the priority 

considerations listed above. Our experience has been that more applications are received than 

can be funded under the Small Community Program. Consequently, consistent with the criteria 

stated above, the selection process will take into consideration such additional factors as:

• the geographic location of each applicant, including the community’s proximity to larger 

centers of air service and low-fare service alternatives;

• the proposed federal grant amount requested compared with the local share offered;

• whether the applicant community has previously received a grant award under this 

program and, if so, whether its application includes an explanation of how the 

community’s proposed project differs from its previously funded project;

• the community’s demonstrated commitment to and participation in the proposed grant 

project;

• the extent to which the applicant’s proposed solution(s) to solving the problem(s) is new 

or innovative; 

• the population and business activity as well as the relative size of each applicant 

community;

• the community’s existing level of air service and whether that service has been increasing 

or decreasing;

• whether the community’s proposal, if successfully implemented, could serve as a 

working model for other communities;

• the grant amount requested compared with total funds available for all communities;

• whether the community has a viable plan to use the funds in a timely manner;

• the uniqueness of an applicant’s claimed problems and whether the proposed project 

clearly addresses the applicant’s claimed problems; 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.

Full community participation is a key goal of this program as demonstrated by the statute’s focus 

on local contributions and active participation in the project. Therefore, applications that 

demonstrate broad community support will be more attractive. For example, communities 

providing proportionately higher levels of cash contributions from other than airport revenues 

will have more attractive proposals. Communities that provide multiple levels of contributions 

(state, local, airport, cash and in-kind contributions) also will have more attractive proposals. 

Similarly, communities that demonstrate participation in the development and execution of the 

proposed air service project will enhance the attractiveness of their proposals. In this regard, the 

Department welcomes letters of intent from airlines on behalf of community proposals that are 

specifically intended to enlist new or expanded air carrier presence. Such letters will be 

accorded greater weight when authorized by airline planning departments.

Proposals that offer innovative solutions to the transportation issues facing the community will 

be more attractive. Small communities have faced many problems retaining and improving their 
[6]

air services and in coping with air fares that are higher than typical for larger communities. 

Therefore, proposals that offer new, creative approaches to addressing these problems, to the 

extent that they are reasonable, will have their attractiveness enhanced. Proposals that provide a 

well-defined plan, a reasonable timetable for use of the grant funds, and a plan for continuation 

and/or monitoring of the project after the grant expires also will have greater attractiveness.

Additional Criteria and Grant Limitations

Communities without existing air service. Communities that do not currently have 

commercial air service are also eligible, but air service providers must have met or be able to 

meet in a reasonable period all Departmental requirements for air service certification, including 

safety and economic authorities.

Essential Air Service communities. Small communities that meet the basic criteria and 

currently receive subsidized air service under the Essential Air Service (EAS) program are 

eligible to apply for funds under the Small Community Program. 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 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 EAS program.

Consortium applications. The statute permits individual communities and consortia of 

communities to apply for grant awards under this program. In some instances in the past, several 

communities in a State have filed a single application as a “consortium,” but in effect the 

application was a collection of individual community requests involving different projects. This 

is not a consortium. An application from a consortium of communities must be one that seeks to 

facilitate the efforts of the communities working together toward a joint grant project. In other 

words, the application must set forth one grant project, with one joint objective, and establish one 

entity to ensure that the joint objective is accomplished according to the terms of a grant 

agreement. For example, several communities surrounding an airport may apply together to 

improve air services at that airport, with a joint objective of securing new or additional service to 

that airport. Or, surrounding airports may apply together in support of a regional plan to lower 

fares or reverse a decline in traffic. 

Prior grant recipients. Communities or members of a consortia that were awarded grants in 

previous years and want to apply for a grant this year should be aware that they are precluded 

from seeking new funds for projects for which they have already received an award under the 

Small Community Program.

In its application, a community that is a previous grant recipient should compare and contrast its 

proposed project with its previously funded one(s) to demonstrate why its latest proposal 

represents a new project. Communities should also note that in prior years of the program, 

interest in participation exceeded the funds available in any one year. For this reason, the fact 

that a community has already received one or more grants will be a consideration when 

comparing its new proposal with those of other applicant communities.
[7]

Concurrent applications. A community or member of a consortium may participate in the 

program a subsequent time only after its participation in a prior grant has terminated. 49 U.S.C. 

§ 41743(c)(4). Simply stated, a community can have only one Small Community Program grant 

at any time. If a grant applicant is applying for a subsequent grant and its current grant has not 

yet expired, it must notify the Department of its intent to terminate the current grant prior to 

entering into the new grant. In addition, for grant applicants that are members of a consortia 

grant, permission must be granted from both the grant sponsor and the Department to withdraw 

from the current grant prior to being eligible to receive a subsequent grant.

Multiple Applications. The Department requests that communities file only one application for 

a grant. In the past, some communities have filed both individual applications and applications 

as part of a consortium. In many cases these applications have involved the same project at the 

same or different funding levels. We will not consider the stand-alone application if a 

community is also submitting a largely identical request as part of a consortium. To the extent 

that a community files separately and as part of a consortium for complementary projects—for 

example, one for a revenue guarantee and one for marketing—we will consider such proposals. 

However, communities should be aware that they can receive only one grant, either the standalone grant or as a member of a consortium, because no community can have concurrent grants.

Market analysis and a complementary marketing commitment. A thorough understanding 

of the target market is essential for the ultimate success of new or expanded air service. 

Likewise, the chances that such a service will become self-sustaining are enhanced when its 

implementation is supported by a well-designed marketing campaign. For these reasons, 

communities requesting funds for a revenue guarantee/subsidy/ financial incentive are 

encouraged to include in their proposals an in-depth analysis evidencing close familiarity with 

their target markets. Such communities also are encouraged to designate in their proposals 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, communities that 

propose to use the grant funds for service in a city-pair market that is already served by a carrier 

must explain in detail why the existing service is insufficient or unsatisfactory, or provide other 

compelling information to support such proposals. This information is necessary for the 

Department to consider the competitive implications of giving financial or other tangible 

incentives for one carrier that the other carrier is not receiving.

Cost Sharing and Local Contributions Are Important Factors. The statute does not require 

communities to contribute toward a grant project, but those communities that contribute from 

local sources other than airport revenues are accorded priority consideration. One core objective 

of the Small Community Program is to promote community involvement in addressing air 

service/air fare issues through public/private partnerships. As a financial stakeholder in the 

process, the community gains greater control over the type, quality, and success of the air service 

initiatives that will best meet its needs, and demonstrates a greater commitment towards 

achieving the stated goals. The Department has historically received many more applications 

than can be accommodated and nearly all of those applications have proposed a community 
[8]

financial contribution to the project. Thus, proposals that propose a community financial 

contribution will be given priority consideration.

Applicant communities should be aware that, if awarded a grant, the Department will not 

reimburse the community for pre-award expenses such as the cost of preparing the grant 

application or for any expenses incurred prior to the community executing a grant agreement 

with the Department. In addition, ten percent of the grant funds will be withheld until the 

Department receives the final report on the grant project. See “Award Administration 

Information,” below.

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. Contributions from already-existing programs or projects (e.g., designating a portion 

of an airport’s existing annual marketing budget to the project) are considered less favorably 

than contributions for new and innovative programs or projects. For those communities 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 State, 

the County or the 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.6 

Community proposals 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, 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,7 as are reduced fares 

offered by airlines.

 6 49 U.S.C. §§ 47107, 47133.

7A travel “bank” involves the actual deposit of funds from participating parties (e.g., businesses, individuals) into a 

designated bank account for the purpose of purchasing air travel on the selected airline, with defined procedures for 

the subsequent use or withdrawal of those funds under an agreement with the airline. Often, however, what 

communities refer to as a travel “bank” in reality involves travel “pledges” from businesses in the community 

without any collection of funds or formal procedures for use of the funds. As with other types of in-kind 

contributions, the Department views travel banks and pledges included in grant proposals as an indicator of local 

community support.
[9]

Cash vs. in-kind contributions. Communities that include local contributions made in cash 

are given priority consideration for selection. 

Financial commitments must be fulfilled. Applicant communities should note that, as part 

of the grant agreement between the Department and the community, the community has 

legally committed itself to fulfilling its proposed financial contribution to the project and that 

its failure to meet this commitment could lead the Department to terminate the grant. 

Community participation in all aspects of the proposal, including the financial aspects, is 

critical to the success of the authorized project initiative. Furthermore, communities cannot 

propose a certain level of cash contribution from non-airport sources, and subsequent to 

being awarded a grant, seek to substitute or replace that contribution with either “in-kind” 

contributions or contributions from airport revenues, or both. Given the statute’s priority for 

contributions from non-airport sources and the competitive nature of the selection process, a 

community’s grant award could be reduced or terminated altogether if it is unable to replace 

the committed funds from non-airport revenue sources.

Payment Reimbursement Receipts: The Small Community Program is a reimbursable 

program; therefore, communities are required to make expenditures in full for project 

implementation under the program prior to seeking reimbursement from the Department. 

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). 

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 contribution the reimbursement rate would be 83.33 percent: ((500,000) / (500,000 + 

100,000)) = 83.33. 

III. TYPES OF PROJECTS

The statute is very general about the types of projects that can be authorized so that communities 

are provided flexibility in addressing their particular air service and airfare issues. Because 

circumstances may differ among communities, applicants have some latitude in identifying their 

own objectives and developing strategies for accomplishing them.

The major objective of the Small Community Program is to help communities secure 

enhancements that will be responsive to their air transportation/air fare needs on a long-term 

basis after the financial support of the grant has ended. There are many ways that a community 

might enhance its current air service or attract new service, such as: 

• Promoting awareness among residents of locally available service;

• Attracting a new carrier through revenue guarantees or operating cost offsets;

• Attracting new forms of service, such as on-demand air taxi service;

• Offering an incumbent carrier financial or other incentives to lower its fares, increase its 

frequencies, add new routes, or deploy more suitable aircraft, including upgrading its 

equipment from turboprops to regional jets;

• Combining traffic support from surrounding communities with regionalized service 

through one airport; or 
[10]

• Providing local ground transportation service to improve access to air service to the 

community and the surrounding area.8

The SCASDP program has already supported numerous standard revenue guarantee and 

marketing projects; there is an increased prospect for favorable consideration if the proposal 

offers distinctive or creative aspects or features that have potential for establishing new and 

better practices. At the same time, proposals must not be general, vague, or unsupported. The 

more highly defined and focused the proposal, the more competitive it will be, particularly in 

light of the priority consideration afforded by the statute to those applicants that can use the 

funds in a timely manner. 49 U.S.C. § 41743(c)(5)(E).

There is no set format that must be used in submitting grant proposals. At a minimum, however, 

a proposal must provide the following information:

Additional Information

• A description of the community’s existing air service

•

, including the carrier(s) providing 

service, service frequency, nonstop destinations offered, fares, and equipment types.

A synopsis of the community’s historical service

•

, including destinations, traffic levels, 

service providers, and any extenuating factors that might have affected traffic in the past 

or that can be expected to influence service needs in the near to intermediate term.

A description of the community’s air service development efforts over the past five years 

and the results of those efforts

•

. The community should describe past air service 

development efforts and their results in its grant proposal. The description should include 

marketing and promotional efforts of airport services as well as efforts to recruit 

additional or improved air service and airfare initiatives.

A description of the community's air service needs or deficiencies.

•

 A community should 

submit any information about (1) major origin/destination markets that are not now 

served or are not served adequately, and (2) fare levels that the community deems 

relevant to consideration of its grant request, including market analyses or studies 

demonstrating an understanding of local air service needs.

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

 Clearly identify the target audience of each component of the proposed transportation 

initiative, including all advertising and promotional efforts.

including 

the community's specific project goal(s) and detailed plan for attaining such goal(s). 

Plans should:

 Set forth a realistic timetable for implementation of the grant project including a 

timeline chart. Because the statute includes timely use of the grant funds as a priority 

consideration, a community must have a well-developed project plan and a detailed 

 8 These examples are illustrative only and are not meant as a list of projects favored by the Department. 

Interested communities can view actual proposals submitted in prior years. Go to 

http://www.regulations.gov and, under “Search,” enter one of the following depending on the desired 

filing year: DOT-OST-2002-11590, DOT-OST-2003-15065, DOT-OST-2004-17343, DOT-OST-2005-

20127, DOT-OST-2006-23671; DOT-OST-2007-27370, DOT-OST-2008-0100, DOT-OST-2009-0149, 

and DOT-OST-2010-0124.
[11]

timetable for implementing that plan. In establishing the timetable, however, the 

community should be realistic about its ability to meet its project deadlines.9

 For proposals involving new or improved service, explain how the service will 

become self-sufficient. Under the statute, a community 

 

cannot

 Fully and clearly outline the goals and objectives of the project; e.g., "to broaden the 

awareness by residents in the Tri-County area of the various services provided by 

passenger carriers at the Tri-County airport," or "to obtain new and affordable service 

to a hub airport in a direction where there is no such service." When an application is 

selected, these goals and objectives will be incorporated into the grant agreement and 

define its basic project scope. Once an agreement is signed, if circumstances change 

and an amendment is sought to allow for different activities or a different approach, 

the Department will look to whether the change being sought is consistent with those

fundamental project goals and objectives. Proposed changes that would alter those 

fundamental goals and objectives cannot be authorized, because doing so would 

undermine the competitive nature of the selection process. Applicants are also 

encouraged to include in their proposals alternative or back-up strategies for 

achieving their desired goals and objectives. By incorporating such information into 

the grant agreement, desired changes may be permitted.

seek grant funding in 

subsequent years in support of the same project. Moreover, in developing a proposal, 

it is important that a community seriously consider the scale of its proposed project 

and the timetable for achieving the stated goals. To the extent that a proposed project 

is dependent upon or relevant to the completion of other federally funded capital 

improvement projects, the community should provide a description of, and the 

construction time-line for, those projects, keeping in mind the statutory requirement 

to use Small Community Program funding in a timely manner. 

 Include metrics by which progress towards goals will be measured, the source(s) of 

those data, and how the data will be analyzed.

 If the applicant received a Small Community Program grant in the past, explain how 

its proposed project differs from its earlier one by comparing and contrasting project 

goals, objectives and methods of achieving them.

• A description of any public-private partnership that will participate in the project. Full 

community involvement is a key aspect of the Small Community Program. The statute 

gives priority to those communities that already have established, or will establish, a 

public-private partnership to facilitate air service to the public. The proposal should fully 

describe the public-private partnership that will participate in the community’s proposal 

and how the partnership will actively

 9 The projected timetable will be an integral part of the grant agreements between the selected communities and the 

Department. Therefore, there is no advantage to a community in proposing an aggressive timetable that cannot be 

met, and there may be disadvantages if the community finds that it cannot meet its timetable or if its timeline is 

deemed unrealistic. Communities should carefully consider all factors affecting implementation of their projects 

and develop realistic timeframes for achieving those objectives.

participate in the implementation of the proposed 

project. In addition, applicants should identify each member of the partnership, the role 

that each will play, and the specific responsibilities of each member in project 
[12]

implementation. If the application does not include specific information on the 

partnership participation in the project, the Department will not be able to evaluate how 

well a community has met this consideration, and the applicant will not

•

be deemed to 

have met this priority consideration in the Department’s evaluation of the community’s 

proposal.

A detailed description of the funding necessary for implementation of the community's 

project, including the federal and non-federal contributions

•

. Proposals should clearly 

identify the level of federal funding sought. They should also clearly identify the 

community’s cash contributions to the proposed project, “in-kind” contributions from the 

airport, and “in-kind” contributions from the community. Cash contributions from 

airport revenues should be identified separately from cash contributions from other 

community sources. Similarly, cash contributions from the State and/or local 

government should be separately identified and described.

An explanation of how the community will ensure that its own funding contribution is 

spent in the manner proposed

•

.

Descriptions of how the community will monitor the progress of the grant project

•

and 

identification of a list of critical milestones to be met during the life of the grant, 

including the need to modify or discontinue funding if the community cannot achieve 

such milestones. This is an important component of the community’s proposal and 

serves to demonstrate the thoroughness of the community’s planning of the proposed 

grant project.

A description of how the community plans to continue with the project if it is not selfsustaining after the grant award expires. A particular goal of the Small Community 

Program is to provide long-term, self-sustaining improvements to air service for small 

communities. A community cannot seek further grant funding in support of the same 

project. 49 U.S.C. § 41743(c)(4). It is possible that new or improved service at a 

community will be well on its way to becoming a self-sustaining service, but it may not 

have reached that goal before the grant expires. Similarly, it is possible that extensive 

marketing and promotional efforts may be in progress, but not have been completed at 

the end of the grant period and will require continued support.10

•

 Therefore, in 

developing its proposal, the community should carefully consider and describe in detail 

its plans for providing any necessary continued financial support for the project after the 

grant funding is no longer available. This aspect of the application reflects the 

community’s commitment to the grant project and is an important component to the 

Department’s consideration of the community’s proposal for selection for a grant award.

Designation of a legal sponsor responsible for administering the program. The legal 

sponsor of the grant project must

 10 Project implementation costs are reimbursable from grant funds only for services or property delivered during the 

grant term.

be a government entity. If the applicant is a publicprivate partnership, a public government member of the organization must be identified 

as the community’s sponsor to receive program reimbursements. In this regard, 

communities can designate only a single government entity as the legal sponsor, even if it 

is applying as a consortium that consists of two or more local government entities. 
[13]

Private organizations cannot be designated as the legal sponsor of a grant under the Small 

Community Program.11

Air Service Development Zone Designation 

The statute authorizing the Small Community Program also provides that the Department will 

designate one of the grant recipients as an Air Service Development Zone. The purpose of the 

designation is to provide communities interested in attracting business to the area surrounding 

the airport and/or developing land-use options for the area to work with the Department on 

means to achieve those goals. The Department will assist the designated community in 

establishing contacts with and obtaining advice and assistance from appropriate government 

agencies, including the Department of Commerce as well as other offices within the Department 

of Transportation, and in identifying other pertinent resources that may aid the community in its 

efforts to attract businesses and to formulate land-use options. However, the community 

receiving the designation will be responsible for developing, implementing, and managing 

activities related to the air service development zone initiative. Only communities that are 

interested in these objectives and have a plan to accomplish them should compete for the 

available designation. There are no additional funds associated with this designation, and 

applying for the designation will provide no special benefit or preference to a community in 

receiving a grant award under the Small Community Program.

Grant applicants interested in selection for the Air Service Development Zone designation must 

include in their applications a separate section, titled, Support for Air Service Development Zone 

Designation.

 detailed information regarding the property and facilities available for development such as 

an existing airpark or land for such an airpark;

 That section should include:

 the other modes of transportation that would be available to support additional economic 

development, such as rail, road, and/or water access;

 information concerning historic, existing, and any future business activity in the area that 

would support further development;

 demographic information concerning the community and its environs relevant to the 

developmental efforts, including population, employment, and per capita income data; and

 any other information that the community believes is relevant to its plans to enhance air 

service development.

The community should provide as detailed a plan as possible, including what goals it expects to 

achieve from the air service development zone designation and the types of activities on which it 

would like to work with the Department in achieving those goals. The community should also 

indicate whether further local government approvals are required in order to implement the 

proposed activities.

 11 The community has the responsibility to ensure that the recipient of any funding has the legal authority under 

State and local laws to carry out all aspects of the grant.
[14]

IV. AWARD ADMINISTRATION INFORMATION

The grant awards will be made as promptly as possible so that selected communities can 

complete the grant agreement process and proceed to implement their plans. Given the 

competitive nature of the grant process, the Department will not meet with grant applicants with 

respect to their grant proposals. 

The Department will announce its grant selections via a selection order, which will be served on 

each grant recipient, all other applicants, and all parties served with this solicitation order. The 

selection order will also be on the Department’s Small Community Program webpage.

Grant agreement. Communities awarded grants are required to execute a grant agreement with 

the Department before they begin to expend funds under the grant award. Grant funds will be 

provided on a reimbursable basis only, with reimbursements made only for expenses incurred 

and billed during the period that the grant agreement is in effect and at the appropriate 

percentage rate.12 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 under the Small Community Program will be 

required to accept the responsibilities of these assurances and to execute such the assurances 

when they execute their grant agreements. Copies of the applicable assurances are available for 

review on the Department’s webpage at http://ostpxweb.dot.gov/aviation/X50%20Role_files/smallcommunity.htm (click on “SCASDP Grant Assurances”).

Grantee reports. The grant agreement between the Department and each selected community 

will require the submission of quarterly reports on the progress the community has made during 

the previous quarter in implementing its grant project. In addition, the grant agreement will 

require the submission, on a quarterly or other time-specific basis, of other materials relevant to 

the grant project, such as copies of advertising and promotional material and copies of contracts 

with consultants and service providers. 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 final report is received. 

Additional information on award administration for selected communities will be provided in the 

grant agreement.

Grant amendments. A grantee may wish to amend its agreement with the Department in the 

event of a change in circumstances after the date the agreement is executed. Typically, 

amendments involve an extension to the time period for completing the grant or a change in the 

types of activities authorized for reimbursement under the goals and objectives (“project scope”) 

of the grant agreement. Grantees are cautioned, however, that the Department cannot 

 

12 The percentage is determined by: (SCASDP Grant Amount) ÷ (SCASDP Grant Amount + Local Cash 

Contribution + State Cash Contribution, if applicable). 
[15]

authorize amendments that are incompatible with the scope of the agreement. For example, 

a grant awarded solely for the purpose of developing an airport marketing plan cannot be 

amended to permit subsidization of an air carrier’s startup costs, or a grant awarded solely for the 

purpose of attracting low-fare service cannot be amended to permit it to attract service from a 

legacy carrier, since the latter, in each example, was never contemplated by the original 

agreement.

Applicants are advised to obtain firm assurances from air carriers proposing to offer new air 

service if a grant is awarded. Many grants have been awarded for the purpose of subsidizing 

new or additional air service for a small community, with the goal of that service becoming selfsustaining by the end of the subsidy period. In virtually all cases, the community seeking the 

grant funds received expressions of interest from one or more air carriers. In some instances, 

these expressions of interest failed to materialize and the community was left without any 

immediate prospects, at which time it asked for a grant extension to allow more time to pursue 

other carriers. Because the Department is charged by law to consider timely use of funds when 

selecting grant recipients, the Department will grant an extension only when the community can 

provide strong evidence of a firm commitment on the part of an air carrier to deliver the desired 

service.

To ensure understanding, grantees contemplating amendments to their agreements are urged to 

discuss their situations with the Small Community Program staff before requesting a formal 

amendment.
[16]

This order is issued under authority delegated in 49 CFR § 1.56a(f).

ACCORDINGLY,

1. Community proposals for funding under the Small Community Air Service Development 

Program should be submitted via http://www.grants.gov as an attachment to the SF424 no later 

than August 2, 2011; and

2. This order will be published in the Federal Register and also will be served on the Conference 

of Mayors, the National League of Cities, the National Governors Association, the National 

Association of State Aviation Officials (NASAO), County Executives of America, the American 

Association of Airport Executives (AAAE), and the Airports Council International-North 

America (ACI), and posted on http://www.grants.gov.

By:

 Susan L. Kurland

 Assistant Secretary for Aviation 

 and International Affairs

(SEAL)

An electronic version of this document is available

on the World Wide Web at http:/www.regulations.gov
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

United States Code Annotated 

Title 49. Transportation 

Subtitle VII. Aviation Programs

Part A. Air Commerce and Safety 

Subpart II. Economic Regulation 

Chapter 417. Operations of Carriers 

Subchapter II. Small Community Air Service 

§ 41743. Airports not receiving sufficient service

(a) Small community air service development program.--The Secretary of Transportation 

shall establish a program that meets the requirements of this section for improving air carrier 

service to airports not receiving sufficient air carrier service.

(b) Application required.--In order to participate in the program established under subsection 

(a), a community or consortium of communities shall submit an application to the Secretary in 

such form, at such time, and containing such information as the Secretary may require, 

including--

(1) an assessment of the need of the community or consortium for access, or improved access, 

to the national air transportation system; and

(2) an analysis of the application of the criteria in subsection (c) to that community or 

consortium.

(c) Criteria for participation.--In selecting communities, or consortia of communities, for 

participation in the program established under subsection (a), the Secretary shall apply the 

following criteria:

(1) Size.--For calendar year 1997, the airport serving the community or consortium was not 

larger than a small hub airport, and--
[2]

(A) had insufficient air carrier service; or

(B) had unreasonably high air fares.

(2) Characteristics.--The airport presents characteristics, such as geographic diversity or 

unique circumstances, that will demonstrate the need for, and feasibility of, the program

established under subsection (a).

(3) State limit.--Not more than 4 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.

(4) Overall limit.--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 

funds are appropriated for the program.

No community, consortia of communities, nor combination thereof may participate in the 

program in support of the same project more than once, but any community, consortia of 

communities, or combination thereof may apply, subsequent to such participation, to participate 

in the program in support of a different project.

(5) Priorities.--The Secretary shall give priority to communities or consortia of communities 

where--

(A) air fares are higher than the average air fares for all communities;

(B) the community or consortium will provide a portion of the cost of the activity to be 

assisted under the program from local sources other than airport revenues;

(C) the community or consortium has established, or will establish, a publicprivate partnership to facilitate air carrier service to the public;

(D) the assistance will provide material benefits to a broad segment of the traveling 

public, including business, educational institutions, and other enterprises, whose access 

to the national air transportation system is limited; and

(E) the assistance will be used in a timely fashion.

(d) Types of assistance.--The Secretary may use amounts made available under this section--
[3]

(1) to provide assistance to an air carrier to subsidize service to and from an underserved 

airport for a period not to exceed 3 years;

(2) to provide assistance to an underserved airport to obtain service to and from the 

underserved airport; and

(3) to provide assistance to 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.

(e) Authority to make agreements.--

(1) In general.--The Secretary may make agreements to provide assistance under this section.

(2) Authorization of appropriations.--There is authorized to be appropriated to the Secretary 

$20,000,000 for fiscal year 2001, $27,500,000 for each of fiscal years 2002 and 2003, and 

$35,000,000 for each of fiscal years 2004 through 2008 to carry out this section. Such sums 

shall remain available until expended.

(f) Additional action.--Under the program established under subsection (a), the Secretary shall 

work with air carriers providing service to participating communities and major air carriers (as 

defined in section 41716(a)(2)) serving large hub airports to facilitate joint-fare arrangements 

consistent with normal industry practice.

(g) Designation of responsible official.--The Secretary shall designate an employee of the 

Department of Transportation--

(1) to function as a facilitator between small communities and air carriers;

(2) to carry out this section;

(3) to ensure that the Bureau of Transportation Statistics collects data on passenger 

information to assess the service needs of small communities;
[4]

(4) to work with and coordinate efforts with other Federal, State, and local agencies to 

increase the viability of service to small communities and the creation of aviation 

development zones; and

(5) to provide policy recommendations to the Secretary and Congress that will ensure that 

small communities have access to quality, affordable air transportation services.

(h) Air Service Development Zone.--The Secretary shall designate an airport in the program as 

an Air Service Development Zone and work with the community or consortium on means to 

attract business to the area surrounding the airport, to develop land use options for the area, and 

provide data, working with the Department of Commerce and other agencies.
APPENDIX B

COVER PAGE

The cover page for all applications should bear the title "Proposal Under the Small Community 

Air Service Development Program, Docket DOT-OST-2011-0119" and should include:

(1) the name of the community or consortium of communities applying for the grant;

(2) the legal sponsor and its Dun and Bradstreet (D&B) Data Universal Numbering System 

(DUNS) number, including + 4; Employee Identification Number (EIN) or Tax ID; and,

(3) the 2-digit Congressional district code applicable to the sponsoring organization and, if a 

consortium, to each participating community.
APPENDIX C

Page 1

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-20110119

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form 

SF424 on http://www.grants.gov. 

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives EAS subsidy

Community (or Consortium member) previously received a Small Community Grant

 

If previous recipient: Date of grant: Expiration date of grant:

B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)
APPENDIX C

Page 2

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

E. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested

2 State 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-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution**

5 TOTAL IN-KIND CONTRIBUTION 

(7a + 7b)

6 TOTAL PROJECT COST (4+8)

F. IN-KIND CONTRIBUTIONS**

For funds in lines 7a (Airport In-Kind contribution) and 7b (Other In-Kind contribution), please 

describe the source(s) of fund(s) for each.
APPENDIX C

Page 3

F. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372

PROCESS?

a. This application was made available to the State 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 State for review.

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

G. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

______________________________________________________________________________

______________________________________________________________________________
APPENDIX D

Page 1

APPLICATION CHECKLIST

INCLUDED? ITEM

For Immediate Action

Determine Eligibility(see Pages 3 & 4)

New Grants.gov users must register with www.grants.gov.

Existing Grants.gov users must verify existing Grants.gov account has not expired and 

the Authorized Organization Representative(AOR) is current

No Later than 5:00 pm EDT, August 2, 2011

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

existing grant in order to be eligible for selection in FY2011

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

Prepare Cover Sheet (see Appendix B)

Prepare Summary Information (see Appendix C)

Prepare proposal, to include:

• A description of the community’s existing air service

• A synopsis of the community’s historical service

• A description of the community’s air service development efforts over the past 

five years and the results of those efforts

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

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

including the community's specific project goal(s), detailed plan for measuring 

and attaining such goal(s), and a timeline chart.

• A description of any public-private partnership that will participate in the project

• A detailed description of the funding necessary for implementation of the 

community's project, including the federal and non-federal contributions

• An explanation of how the community will ensure that its own funding 

contribution is spent in the manner proposed

• Descriptions of how the community will monitor the progress of the grant project 

and the identity of critical milestones to be met during the life of the grant, 

including the need to modify or discontinue funding if identified milestones 

cannot be achieved

• A description of how the community plans to continue with the project if it is not 

self-sustaining after the grant award expires

• Designation of a legal sponsor responsible for administering the program

• Letters of support (community/Congressional) 

• Letters of intent by an air carrier (where applicable)
APPENDIX D

Page 1

• Submit motion for confidential treatment (where applicable)

Submission Checklist

Attach cover sheet to completed SF424 via www.grants.gov

Attach summary information schedule to completed SF424 via www.grants.gov

Attach proposal to completed SF424 via www.grants.gov
APPENDIX D

Page 1

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 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-2011-0119,” and include with that material a request in the form of a 

motion seeking confidential treatment of the material under 14 § CFR 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 August 2, 2011, and delivered to 

the Office of Aviation Analysis, 8th Floor, Room W86-310, 1200 New Jersey Ave., SE, 

Washington, DC 20590.

A template for the confidential motion can be found at http://ostpxweb.dot.gov/aviation/X50%20Role_files/smallcommunity.htm.