Order: 201 2

- 5

- 8

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Depa rtm ent of Transportation

on the 11 th day of Ma y, 201 2

In the Matter of Grant Applications

SMALL COMMUNITY AIR SERVICE

DEVELOPMENT PROGRAM

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

- OST

- 2012

- 0069

Served: May 11 , 2012

ORDER SOLICITING

SMALL COMMUNITY GRANT PROPOSALS

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 or SCASDP ) to address air service and

airfare issues in their communities. Application s of no more than 25 pages each (one

- sided only , excluding the completed SF424, cover sheet, Summary Information schedule, and any letters from the community showing support for the application ) , including all required information, must be submitted to www.grants.gov no later than 5 PM EDT on Mon day

, June 11 , 201 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

– Cover Sheet Conte n ts Appendix C

– Summary Information Appendix D

– Application Checklist2

Appendix E

– 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.L. 106

- 181 ) and reauthorized by the Vision 100

- Century

of Aviation Reauthorization Act ( P.L. 108

- 176). 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 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 amended. Appropriations are provided for this program for award in FY 2012

pursuant to the FAA Modernization and Reform Act of 2012 (P.L. 112

- 95 ). The Department has

up to $ 14 million available for FY 2012 grant awards to carry o ut this program

. There is no limit

on the amount of individual awards, and the amounts awarded will vary depending upon the features and merits of the propos als selected. In past years, the Department’s individual grant

sizes have ranged from $20,000 to nearly $1.6 million.

A. Eligible Applicants

Eligible applicants are small communities that meet the following statutory criteria (49 U.S.C. § 41743) :

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; and

2. The airport serving the community presents characteristics, such as geographic

di versity or unique circumstances

, that demonstrate the need for, and feasibility of, grant assistance from the Small Community Program.

No more than 4 communities 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 communities, or a combination thereof, may be selected to participate in the program in each year for which the funds are appropriated.

Communities without existi ng air service : Communities that do not currently have commercial air service are eligible for SCASDP funds, but air service providers must have met or be able to meet in a reasonable period all Departmental requirements for air service certification, inc luding safety and economic authorities.

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 f unds. 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 new3

competing air ser vice. 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 : Both indiv idual 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 : Communities may file only one application for a grant , either individually or as part of a consortium

.

B. Eligible Project s

The Department is authorized to award grants under 49 U.S.C. § 41743 to communities that seek to provide assistance to:

• an air carrier to subsidize service to and from an underserved airport for a period not to exceed 3 years;

• an underserved airport to obtain service to and from the underserved airport; and/or

• an underserved airport to implement such other measures as the Secretary, in consultation with such airport, considers appropriate to improve air service both in terms

of the cost of such service to consumers and the availability of such service, including improving air service through marketing and promotion of air service and enhanced utilization of airport facilities.

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

• An applicant may not receive an additional grant to support the same project from a previous grant ( see Same Project Limitation , below); and

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

grant ( see Concurrent Grant Limitation , below ).

Same Project Limitation : A community may not receive an additional grant to support the same project for which it received a previous grant. In assessing whether a previous grantee’s current application represe nts a new project, the Department will compare the goals and objectives of the previous grant, including the key components of the means by which those goals and objectives were to be achieved, to the current application. For example, if a community recei ved 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, equipment4

purchases, etc. are of the same nature, and that if a subsequent application incorporates different goals or significantly diff erent components, it may be sufficiently different to constitute a new project under 49 U.S.C. § 41743(c).

Concurrent Grant Limitation : A community may have only one SCASDP grant at any time. If a community applies for a subsequent SCASDP grant when its current grant has not yet expired, that community must notify the Department of its intent to terminate the current SCASDP grant 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 the consortium will be deemed eligible to receive a subsequent SCASDP grant.

II. SELECTION CRITERIA AND GUIDANCE ON APPLICATION OF SELECTION

CRITERIA

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

A. Priority Selection Criteria

The law directs the Department to give priority consideration to those communities or consortia

where the following criteria are met :

1. A ir fares are higher than the national averag e air fares for all communities

– DOT will compare the local community’s air fares to the national average air fares for all communities. Communities with air fares significantly higher than the national average

ai r fares for all communities will be given priority. DOT calculates these fares using the Bureau of Transportation Statistics (BTS) database. BTS Origin Destination Survey data is used to gather fare data for all markets that serve airports represented in SCASDP applications. The SCASDP air fare comparison report represents a community’s (each individual applicant’s) air fares as a percentage of National Averages (Fare Premium). The report compares a community’s air fares to the average for all other mar kets in the Country that have similar density (passenger volume) and distance characteristics (market groupings). The Fare

Premium calculation includes all markets that averaged more than 1 passenger a day.

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

– DOT will consider whether a community or consortium proposes local funding for the proposed project. Applications providing proportionately higher levels of cash contributions from other than airport revenues will be viewed more favorably

. Applications that provide multiple levels of contributions (state, local, airport, cash and in

- kind contributions) also will be v iewed more favorably

.5

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

- pri vate partnership to facilitate air carrier service to the public

– DOT 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 partner ship will actively participate in the implementation of the proposed project will be viewed more favorably

.

4. T he 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 transp ortation system is limited

– DOT will consider whether the proposed project would provide, to a broad segment of the community’s traveling public, important

benefits relevant to the community

, for example : 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, or service that would offe r lower fares

.

5. T he assistance will be used in a timely manner

– DOT will consider whether a proposed project provides a well

- defined plan and reasonable timetable for use of the grant funds. In DOT’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 fin ancial incentives

. Applicants should describe how their projects can be accomplished within a reasonable time period

.

6. Multiple communities cooperate to submit a regional or multistate application to consolidate air service into one regional airport

– DOT will consider whether a proposed project involves a consortium effort to consolidate air service into one regional airport. This is a new statutory priority criterion, added pursuant to Section 429 of the FAA

Modernization and Reform Act of 2012 (P.L. 11 2

- 95).

B. Secondary Selection Criteria

1. Innovation

– DOT will consider whether an application proposes new and creative solutions to the transportation issues facing the community, including :

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

is new or innovative , including whether the proposed project utilizes or

encourages intermodal or regional solutions to connect passengers to the community’s air service (i.e., cost

- effective inter/i ntra city passenger bus service, marketing of intermodal surface transportation options also avail able to air travelers, or projects that have a positive impact on travel and tourism); whether the proposed project, if successfully implemented, could serve as a working

model for other comm unities; and

• whether the proposed project clearly addresses the applicant’s stated problems

.6

2. Participation

– DOT will consider whether an application has broad community participation, including:

• whether the proposed project has broad community support; and

• the community’s demonstrated commitment to and participatio n in the proposed project.

3. Location

– DOT will consider the location and characteristics of a community :

• the geographic location of each applicant, including the community’s proximity to large r centers of air service and low

- fare service alternatives;

• the population and business activity

, as well as the relative size of each community; and

• whether the community’s proximity to an existing or prior grant recipient could adversely affect either it s proposal or the project undertaken by the other recipient.

4. Other Factors

– DOT will also consider :

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

• whether the applicant has a plan to provide any necessary continued financial support for the proposed project after the requested grant award expires;

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

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

• any letters of intent from airline planning departments or intermodal surface transportation providers on behalf of applications that are specifically intended to enlist new or expanded air service or surface transportation service in suppor t 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 nalysis : 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).

Complementary M arketing C ommitment : Applicants requesting funds for 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.7

Subsidies for a carrier to compete against an incumbe nt : 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.

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. Cash contributions from airport revenues must be identified

separat ely 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

. Contributions should represent a new financial commitment or new financial resources devoted to attracting new or improved service, or addressing specific high

- fare or other service issues, such as improving patronage of existing service at the airport. For 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 s tate,
the c ounty or the local government, and/or from local businesses, or other private organizations in the commun ity. 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 genera ted by airport operations. Airport revenues may not be used for revenue guarantees to airlines , per 49 U.S.C. §§ 47107, 47133

. Applications that include local contributions based on airport

revenues do not receive priority consideration for selection

.

I

n

- 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, 1 as are reduced fares offered by airlines.

1 A travel bank involves the actual deposit of funds from participating parties (e.g., businesses, individuals) into a designated bank account for purchasing air travel on the selected airline, with defined procedures for the subsequent use or withdrawal o f those funds under an agreement with the airline. Often, however, what communities refer to as a travel bank actually 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 applications as an indicator of local community support.8

Cash vs. in

- kind contributions

. Communities that include local contributions made in cash

will be viewed more favorably

.

III. EVALUATION AND SELECTION PROCESS

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

1. The applicant is an Eligible Applicant;

2. The application is for an Eligible Project (including compliance with the Same Project Limitation); and

3. The application is complete (including submission of a completed SF424 and all of the

information listed in Contents of Application , in Section IV below).

To the extent that the Department determines that an application does not satisfy these eligibility requirements, the Department will deem that application ineligible and will not consider it

further.

The Department will then review all eligible applications based on the selection criteria outlined

above in Section II. Applications that meet one or more of the priority selection criteria will be viewed more favorably than tho se that do not meet any priority selection criteria

.

Grant awards will be made as promptly as possible so that selected communities can complete the grant agreement process and implement their plans. Given the competitive nature of the grant process, the Department will not meet with applicants regarding their applications. 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 parties serve d with this Solicitation Order, and posted o n the Department’s SCASDP website at http://ostpxweb.dot.gov/aviation/X50%20Role_files/smallcommunity.htm

.

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 cover sheet including all requir ed information ( see Appendix B );

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

• Submit a detailed application of up to 25 pages (one

- sided only , excluding the completed SF424, cover sheet, Summary Information schedule, and any letters from the community showing support for the application ) that meets all required criteria ( see Appendix D );9

• Attach any letters from the community showing support for the application to the proposal, which should be addressed to Aloha Ley, Associate Directo r, Small Community Program; and

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

Each appli cation must be no longer than 25 one

- sided pages (excluding the completed SF424, cover sheet, Summary Information schedule, and any letters f rom the community showing support for the application )

. DOT will not consider any information contained in pages beyond page 25 (excluding any letters of support ).

An application will not be complete and will be deemed ineligible for a grant award until and unless all required materials, including SF424, have been submitted through www.grants.gov by

5 PM EDT on June 11 , 2012

.

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 consortium must be registered with www.grants.gov in order to submit its application for funds available under this program. See Appendix A for additional information on applyin g through www.grants.gov

.

Contents of Application : There is no set format that must be used for applications. Each application should, to the 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 consideration of its application , i ncluding 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 promotional efforts)

.

• A strategi c 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). Applicants are advised to obtain firm assurances from air carriers proposing to offer new

ai r services if a grant is awarded. Plans should:

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

become self

- sufficient.

 Fully and clearly outline the goals and objectives of the p roject. When an application is selected, these goals and objectives will be incorporated into the grant agreement

and define i ts basic project scope. Once a grant agreement is signed, if an amendment is sought to allow for different activities or a different approach, the Department will conside r whether the amendment sought is consistent with the project scope as set forth in the grant agreement

. A m endments that would alter the

scope will not be permitted

.10

 I nclude alternative or back

- up strategies for achieving their desired goals and objective s. These strategies will be incorporated into the grant agreement.

• A detailed description of the funding necessary for implementation of the proposed project ( including federal and non

- federal contributions )

.

• An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds ( see Same Project Limitation , above )

.

• Designation of a legal sponsor responsible for administering the proposed project . The legal sponsor of the proposed project must be a government entity. If the applicant is a public

- private partnership, a public government member of the organization must be identified as the community’s sponsor to receive project cost reimbursements. A community may designate only one government entity as the legal sponsor, even if it is applying as a consortium that consists of two or more local government entities. Private organizations may not be designated as the legal sponsor of a grant under the Small Community Program. The community has the res ponsibility to ensure that the recipient of any funding has the legal authority under s tate and local laws to carry out all aspects of the grant.

V. AIR SERVICE DEVELOPM ENT ZONE DESIGNATION

As part of the Small Community Program

, the Department may also designate one grant recipient 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 t he 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 and other offic es 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 this designation will be responsib le 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 apply for this designation. There are no

a dditional funds associated with this designation, and applying for this designation will provide no special benefit or priority to a community applying for a SCASDP grant

.

Grant applicants interested in selection for the Air Service Development Zone desig nation must include in their applications a separate section, titled, Support for Air Service Development Zone Designation

. The community should provide as detailed a plan as possible, including what goals it expects to achieve from the air service develo pment 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 a ctivities.11

V I

. GRANT ADMINISTRATION

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 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 assoc iated with preparation of the grant application , will not be reimbursed. Moreover, there are numerous assurances that grant recipients must sign and honor when federal funds are awarded. All communities receiving a grant will be required to accept the re sponsibilities of these assurances and to execute

such the assurances when they execute their grant agreements. Copies of assurances are

available online at http://ostpxw eb.dot.gov/aviation/X50%20Role_files/smallcommunity.htm

, ( cli ck on “SCASDP Grant Assurances”)

.

Carrier Assurances for New Air Service : Applicants are advised to obtain firm assurances from air carriers proposing to offer new air service if a grant is awarded. T he Department will grant an extension only when the community can provide strong evidence of a firm commitment on the part of an air carrie r to deliver the desired service.

Payments : The Small Community Program is a reimbursable program; therefore, communities are required to make expenditures for project implementation under the program prior to seeking reimbursement from the Department. Project implementation costs are reimbursable from grant funds only for services or property delivered during the grant term. Reimbursement rates are calculated as a percentage of the total f ederal funds requested divided by the f ederal funds plus the loc al cash contribution (which is not refundable). The percentage is determined by: (SCASDP Grant Amount) ÷ (SCASDP Grant Amount + Local Cash
Contribution + State Cash Contribution, if applicable). Payments/ expenditures in forms other than cash (e.g. in

- k ind) are not reimbursable. For example, if a community requests $500,000 in f ederal funding and provides $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 implementing its grant project. In addition, each community will be required to submit a final report on its project to the Department, and 10 percent of the gr ant 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 A mendments : Any amendment to a grant agreement must be approved by the Department. 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 comple ting the grant or a change in the types of activities authorized for reimbursement under the goals and objectives of the grant agreement. Grantees are cautioned, however, that the Department cannot authorize amendments that are incompatible with the sc ope of the agreement

.12

VII. QUESTIONS AND CLARIFICATIONS

For further information concerning this notice please contact Aloha Ley at Aloha.Ley@dot.gov or (202) 366

- 2347, or 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://ostpxweb.dot.gov/aviation/X

- 50%20Role_ files/smallcommunity.htm

.

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

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 June 11 , 2012 ; and

2. This order will be published in the Federal Register

, posted on www.grants.gov

, and served

on the 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 A merica

.

By:

Robert A. Letteney Deputy Assistant Secretary for Aviation

and International Affairs (SEAL)

An electronic version of this document is available

on the World Wide Web at www.regulations.gov

.APPENDIX A Page 1

ADDITIONAL INFORMATION ON APPLYING THROUGH WWW.GRANTS.GOV

Applications must be submitted through www.grants.gov

. To apply for funding through

www.grants.gov , applicants must be properly registered. Complete instructions on how to register and apply can be found at www.grants.gov

. If applicants experience difficulties at any point during registration or application process, please call the www.grants.gov Customer Support Hotline at 1

- 800

- 518

- 4726, Monday

– Friday from 7 a.m. to 9 p.m. 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 applic ants start the registration process as early as possible to prevent delays that may preclude submitting an application by the deadlines specified. Applications will not be accepted after June 11 , 2012 ; delayed registration is not an ac ceptable

reason for extensions.

In order to apply for SCASDP funding and to apply for funding through www.grants.gov , all applicants are required to complete the following:

1. Acquire a DUNS Number. A DUNS number is required for www.grants.gov registration. The Office of Management and Budget requires that all businesses and nonprofit applicants for f ederal funds include a DUNS (Data Universal Numbering System) number in their applications for a new a ward 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 a ddress and point of contact information for f ederal assistance applicants, recipients, and sub

- recipients. The DUNS number will be used throughout the grant life cycle. Obtaining a DUNS number is a free, one

- time activity. Obtain a DUNS number by callin g 1

- 866 705

– 5711 or by applying online at http://fedgov.dnb.com/webform

.

2. Acquire or Renew Registration with the Central Contractor Registration (CCR) Database. All applicants for f ederal financial assistance maintain current registrations in the Central Contractor Registration (CCR) database. An applicant must be registered in the CCR to successfully register in www.grants.gov . The CCR databas e is the repository for

standard information about f ederal financial assistance applicants, recipients, and sub

recipients. Organizations that have previously submitted applications via

www.grants.gov are already regi stered with CCR, as it is a requirement for

www.grants.gov registration. Please note, however, that applicants must update or renew their CCR registration at least once per year to maintain an active status, so it is critical to check registration status well in advance of relevant application deadlines. Information about CCR registration procedures can be accessed at www.ccr.gov

.

3. Acquire an Authorized Organization Representative (AO R) and a www.grants.gov Username and Password. Complete your AOR profile on www.grants.gov and create your username and password. You will need to use your organization’s DUNS Nu mber to complete this step. For more information about the registration process, go to www.grants.gov/applicants/get_registered.jsp

.APPENDIX A Page 2

4. Acquire Authorization for your AOR from the E

- Busines s Point of Contact (E

- Biz POC).

The E

- Biz POC at your organization must log in to www.grants.gov to confirm you as an AOR. Please note that there can be more than one AOR for your organization.

5. 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 Domes tic Assistance (CFDA) number for this

solicitation is 20.930 , titled Payments for Small Community Air Service Development

.

6. Submit an Application Addressing All of the Requirements Outlined in this Funding Availability Announcement. Within 24

– 48 hours after submitting your electronic application, you should receive an email validation message from www.grants.gov . The validation message will tell you whether the application has been received and validated or rejected, with an explanation. You are urged to submit your application at least 72 hours prior to the due date of the application to allow time to receive the validation message and to correct any problems that may have caused a rejection notification.

Note: When uploading attachments please use generally accepted formats such as .pdf, .doc, and .xls. While you may imbed picture file s 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

If you experience unforeseen www.grants.gov technical issues beyond your control that prevent you from submitting your application by 5 p.m. EDT on June 11 , 2012 , you must contact us at Brooke.Chapman@dot.gov or (202) 366

- 0577 within the 24 hours following the deadline and request approval to submit your application after the deadline has passed. At that time, DOT

staff will require you to provide your DUNS number and your www.grants.gov Help Desk tracking number(s). After DOT staff review all of the information submitted and contact the

www.grants.gov Help Desk to validate the technical issues you reported, DOT staff will contact you to either approve or deny your request to submit a late application through w ww.grants.gov

. If the technical issues you reported cannot be validated, your application will be rejected as untimely. To ensure a fair competition for limited discretionary funds, the following conditions are not valid reasons to permit late submissions: (1) Failure to complete the registration process before the deadline date; (2) failure to follow www.grants.gov instructions on how to register and apply as posted on its Web site; (3) failure to follow al l of the ins tructions in the funding availability notice; and (4) technical issues experienced w ith the applicant’s computer or

information technology (IT) environment.APPENDIX B

COVER SHEET

The cover page for all appl ications should bear the title “Application Und er the Small Community Air Service Development Program, Docket DOT

- OST

- 201 2

- 0069 ” 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 Numberi ng 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

- 2012

- 0069

SUMMARY INFORMATION

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

SF424 on www.grants.gov

.

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

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: Federal Funds Requested:

Carr ier(s) Service Obtained: Destination(s) Served:

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

C. P ROJECT P ROPOSAL : ( 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. E XISTING L ANDING A IDS AT L OCAL A IRPORT :

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

E. 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 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

- 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 )

F. IN

- KIND CONTRIBUTIONS **

For funds in lines 5 a (Airport In

- Kind contribution) and 5 b (Other In

- Kind contribution), please

describe the source(s) of fund(s) for each.APPENDIX C Page 3

F

. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y 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.

G. I S T H E A PPLICANT D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE

E XPLANATION )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________APPENDIX D

APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action

Determine Eligibility

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 rganization R epresentative (AOR) is current

. For Submission by 5:00 pm EDT on June 11 , 201 2

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 FY201 2

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

C over S heet (see Appendix B )

S ummary Information sheet (see Appendix C )

A pplication of up to 25 one

- sided pages (excluding any letters from the community 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 funding necessary for implementation of the community's project

.

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

• Designation of a legal sponsor responsible for administering the program

.

• A motion for confidential treatment ( if applicable)

.APPENDIX E

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 i s 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 th e 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 a pplicant)

in Docket DOT

- OST

- 2012

- 0069 ,” 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 Department’s regulations. The applicant should submit an original and two copies of its motion and an original and two copi es 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 June 11 , 2012 , and delivered to the Office of Aviation Analysis, 8 th Floor, Roo m 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/X

50%20Role_files/smallcommunity.htm

.