[Federal Register Volume 82, Number 200 (Wednesday, October 18, 2017)]
[Notices]
[Pages 48575-48590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22513]


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DEPARTMENT OF TRANSPORTATION

[Docket No. DOT-OST-2017-0155]


Notice of Order Soliciting Community Proposals

AGENCY: Office of the Secretary, Department of Transportation.

ACTION: Notice of Order Soliciting Community Proposals (Order 2017-10-
7).

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

DATES: Applications must be submitted no later than December 15, 2017.

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

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

SUPPLEMENTARY INFORMATION: By this order, the U.S. Department of 
Transportation (the Department or DOT) invites proposals from 
communities and/or consortia of communities interested in obtaining a 
federal grant under the Small Community Air Service Development Program 
(``Small Community Program'' or ``SCASDP'') to address air service and 
airfare issues in their communities. As discussed below, the Department 
has $10 million available for FY 2017 grant awards to carry out this 
program.
    Applications of no more than 20 one-sided pages each (excluding the 
completed Application for Federal Domestic Assistance (SF424), Summary 
Information schedule, and any letters from the community or an air 
carrier showing support for the application), including all required 
information, must be submitted to www.grants.gov no later than 4:00 PM 
EST on December 15, 2017. Applicants are strongly encouraged to submit 
applications in advance of the deadline. Please be

[[Page 48576]]

aware that applicants must complete the grants.gov registration process 
before submitting an application, and that this process usually takes 
two to four weeks to complete.\1\ The Department will not accept late-
filed applications except under limited circumstances related to 
technical difficulties. Additional information on applying through 
grants.gov is in Appendix A, including a notice regarding late-filed 
applications.
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    \1\ If an applicant experiences difficulties at any point during 
the registration or application process, it should contact the 
grants.gov support center by email (<a href="/cdn-cgi/l/email-protection#4f3c3a3f3f203d3b0f732e6f273d2a2972" http: grants.gov">grants.gov</a>">support@grants.gov</a>) or by 
telephone (1-800-518-4726, available 24/7 except Federal holidays). 
See www.grants.gov/web/grants/support.html.
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    In accordance with the requirements of 2 CFR part 200, this order 
is organized into the following sections:

I. Program Description
II. Federal Award Information
III. Eligibility Information
    a. Eligible Applicants
    b. Cost Sharing or Matching
    c. Other
IV. Application and Submission Information
    a. Address To Request Application Package
    b. Content and Form of Application Submission
    c. Dun and Bradstreet Universal Numbering System (DUNS) Number 
and System for Award Management (SAM)
    d. Submission Dates and Times
    e. Funding Restrictions
    f. Other Submission Requirements
V. Application Review Information
    a. Criteria
    i. Priority Selection Criteria
    ii. Secondary Selection Criteria
    iii. Additional Guidance
    b. Review and Selection Process
    c. Anticipated Announcement and Federal Award Dates
VI. Federal Award Administration Information
    a. Federal Award Notices
    b. Administrative and National Policy Requirements
    c. Reporting
VII. Federal Awarding Agency Contact
VIII. Other Information
    a. Air Service Development Zone Designation
    b. Submission of Confidential Commercial Information
Appendix A--Additional Information on Applying Through 
www.grants.gov.
Appendix B--Summary Information
Appendix C--Application Checklist
Appendix D--Confidential Commercial Information

A. Program Description

    The Small Community Program was established by the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (Pub. L. No. 
106-181), reauthorized by the Vision 100-Century of Aviation 
Reauthorization Act (Pub. L. 108-176), and subsequently reauthorized by 
the FAA Modernization and Reform Act of 2012 (Pub. L. No. 112-95) (FAA 
2012), as amended. The program is designed to provide financial 
assistance to small communities in order to help them enhance their air 
service. The Department provides this assistance in the form of 
monetary grants that are disbursed on a reimbursable basis. 
Authorization for this program is codified at 49 U.S.C. Sec.  41743.
    The Small Community Program is authorized to receive appropriations 
under 49 U.S.C. 41743(e)(2), as amended. Appropriations are provided 
for this program for award selection in FY 2016 pursuant to FAA 2012, 
the Consolidated Appropriations Act, 2016 (Pub. L. No. 114-113), as 
extended through FY 2017 by the Continuing Appropriations and Military 
Construction, Veterans Affairs, and Related Agencies Appropriations 
Act, 2017, and Zika Response and Preparedness Act (Pub. L. No. 114-
223).\2\ In addition, the FAA Extension, Safety, and Security Act of 
2016 (Pub. L. No. 114-190) amended 49 U.S.C. 41743(e)(2) to authorize 
the program to receive an additional $6 million in appropriations 
through FY 2017.\3\ The FY17 Continuing Appropriations Act (Pub. L. No. 
115-31 (May 5, 2017)) then provided additional appropriations for the 
program.
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    \2\ See Public Law No. 114-223, September 29, 2016, section 
101(a)(11).
    \3\ See Public Law No. 114-190, July 15, 2016, section 1102(e).
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B. Federal Award Information

    The final selections will be limited to no more than 40 communities 
or consortia of communities, or a combination thereof. Applications for 
renewal or supplementation of existing projects are not eligible to 
compete with applications for new Federal awards.
    Pursuant to the authorities described above, the Department has $10 
million available for FY 2017 grant awards to carry out this program. 
There is no other limitation on the amount of individual awards, and 
the amounts awarded will vary depending upon the features and merits of 
the selected proposals. In past years, the Department's individual 
grant sizes have ranged from $20,000 to nearly $1.6 million. Funding 
amounts made available for reimbursement may be impacted by future 
limitations placed on the spending authority and appropriations enacted 
for the Department. OST may, at its discretion, issue partial funding 
awards up to the level authorized and provided that the above 
conditions are met. Additional information on the budget process may be 
found in OMB A-11: http://www.whitehouse.gov/omb/circulars_default/.

C. Eligibility Information

1. Eligible Applicants

    Eligible applicants are small communities that meet the following 
statutory criteria under 49 U.S.C. 41743, as amended by Public Law No. 
114-113:
    1. (a) The airport serving the community or consortium is not 
larger than a small hub airport, according to FAA hub classifications 
effective on the date of service of this Order,\4\ or
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    \4\ ``Small hub airport'' is defined in 49 U.S.C. 47102 (23) as 
``a commercial service airport that has at least 0.05 percent but 
less than 0.25 percent of the passenger boardings.'' See also http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/categories/. For FAA passenger enplanement information to use to 
determine an airport's eligibility as a small hub airport, see 
http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/.
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    (b) As of calendar year 1997, the airport serving the community or 
consortium was not larger than a small hub airport,\5\ and
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    \5\ See, http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, for the FAA's 1997 list of 
Primary and Nonprimary Commercial Service Airports.
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    2. It has insufficient air carrier service or unreasonably high air 
fares; and
    3. 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.\6\
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    \6\ 49 U.S.C. 41743(c)(1), (2).
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    No more than four communities or consortia of communities, or a 
combination thereof, from the same State may be selected to participate 
in the program in any fiscal year. No more than 40 communities or 
consortia of communities, or a combination thereof, may be selected to 
participate in the program in each year for which the funds are 
appropriated.
    Consortium Applications: Both individual communities and consortia 
of communities are eligible for SCASDP funds. An application from a 
consortium of communities must be one that seeks to facilitate the 
efforts of the communities working together toward one joint grant 
project, with one joint objective, including the establishment of one 
entity to ensure that the joint objective is accomplished.
    Communities Without Existing Air Service: Communities that do not 
currently have commercial air service are eligible for SCASDP funds.
    Eligible Projects: The Department is authorized to award grants 
under 49

[[Page 48577]]

U.S.C. 41743 to communities that seek to provide assistance to:
    <bullet> A U.S. air carrier \7\ to subsidize service to and from an 
underserved airport for a period not to exceed 3 years;
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    \7\ Only U.S. air carriers are eligible to receive assistance 
from communities under SCASDP. See 49 U.S.C. 41743(d)(1) and Sec.  
40102(a)(2).
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    <bullet> An underserved airport to obtain service to and from the 
underserved airport; and/or
    <bullet> 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.

2. Cost Sharing or Matching

    Cost sharing or matching is not required for applications. However, 
applications that provide multiple levels of contributions (state, 
local, cash and in-kind contributions) will be viewed more favorably. 
See Additional Guidance--Cost Sharing and Local Contributions, in 
Section E.1.c. below.
    3. Other
    Multiple Applications Prohibited: A community may file only one 
application for a grant, either individually or as part of a 
consortium.
    Essential Air Service Communities: Small communities that currently 
receive subsidized air service under the Essential Air Service 
(``EAS'') or Alternate Essential Air Service (``AEAS'') program will 
not be considered for SCASDP funds. The EAS statute (49 U.S.C. Sec.  
41733(c)(E)) now includes a provision requiring that the Department 
consider whether an air carrier has included a marketing proposal in 
its proposal to provide subsidized EAS as part of the carrier selection 
criteria. In light of this and the scarcity of SCASDP funds, the 
Department will not consider awarding additional Federal support under 
SCASDP for the marketing of subsidized EAS air service.
    Applicants should also keep in mind the following statutory 
restrictions on eligible projects:
    <bullet> An applicant may not receive an additional grant to 
support the same project from a previous grant (see Same Project 
Limitation below); and
    <bullet> An applicant may not receive an additional grant, prior to 
the completion of its previous grant (see Concurrent Grant Limitation 
below).
    Same Project Limitation: Under 49 U.S.C. Sec.  41743(c), a 
community or consortium may not receive a new grant to support the same 
project for which it received a previous grant (Same Project 
Limitation).\8\ In assessing whether a previous grantee's current 
application represents a new project, the Department will compare the 
goals and objectives of the previous grant, including the key 
components of the means by which those goals and objectives were to be 
achieved, to the current application. For example, if a community 
received an earlier grant to support a revenue guarantee for service to 
a particular destination or direction, a new application by that 
community for another revenue guarantee for service to the same 
destination or in the same direction is ineligible, even if the revenue 
guarantee were structured differently or the type of carrier were 
different. However, a new application by such a previous grantee for 
service to a new destination or direction using a revenue guarantee, or 
for general marketing and promotion (including advertising and public 
relations) of the airport and the various services it offers, is 
eligible.\9\ The Department recognizes that not all revenue guarantees, 
marketing agreements, studies, or other activities are of the same 
nature, and that if a subsequent application incorporates different 
goals or significantly different components, it may be sufficiently 
different to constitute a new project under 49 U.S.C. Sec.  41743(c).
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    \8\ This limitation applies for all projects contained in a 
previous grant agreement's scope; thus, even if the community did 
not actively implement a project listed in the scope of an earlier 
grant agreement, it may not receive funding for that project in a 
subsequent round of SCASDP funding.
    \9\ As noted in the ``Market Analysis'' subsection of section C 
below, target markets proposed by communities may be destination 
specific (e.g., service to LAX), a geographic region (e.g., 
northwest mountain region) or directional (e.g., hub in the 
southeastern United States or a point north, south, east, or west of 
the applicant community).
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    Concurrent Grant Limitation: A community or consortium may have 
only one SCASDP grant at any time. If a community or consortium applies 
for a subsequent SCASDP grant when its current grant has not yet 
expired, that community/consortium must notify the Department of its 
intent to terminate the current SCASDP grant, and if the community/
consortium is selected for a new grant, such termination must take 
place prior to entering into the new grant agreement. In addition, for 
consortium member applicants, permission must be granted from both the 
grant sponsor and the Department to withdraw from the current SCASDP 
grant before that consortium member will be deemed eligible to receive 
a subsequent SCASDP grant.
    Airport Capital Improvements Ineligible: Airport capital 
improvement projects, including, but not limited to, runway expansions 
and enhancements, the construction of additional aircraft gates, and 
other airport terminal expansions and reconfigurations are ineligible 
for funding under the Small Community Program. Airports seeking funding 
for airport capital improvement projects may want to consult with their 
local FAA Regional Office to discuss potential eligibility for grants 
under the Airport Improvement Program.

D. Application and Submission Information

1. Address To Request Application Package

    Applications must be submitted electronically via www.grants.gov. 
This announcement lays out all application steps and includes all 
application forms or Internet addresses where such forms may be found.

2. Content and Form of Application Submission

    Required Steps to Apply:
    <bullet> Determine eligibility;
    <bullet> Register with www.grants.gov (see Registration with 
www.grants.gov, below);
    <bullet> Submit an Application for Federal Domestic Assistance 
(SF424);
    <bullet> Submit a completed ``Summary Information'' schedule. This 
is your application cover sheet (see Appendix B);
    <bullet> Submit a detailed application of up to one-sided 20 pages 
(excluding the completed SF424, Summary Information schedule, and any 
letters from the community or an air carrier showing support for the 
application) that meets all required criteria (see Appendix C);
    <bullet> Attach any letters from the community or an air carrier 
showing support for the application to the proposal, which should be 
addressed to: Brooke Chapman, Associate Director, Small Community Air 
Service Development Program; and
    <bullet> Provide separate submission of confidential material, if 
requested. (see Appendix D)
    An application consisting of more than 20 pages will be accepted by 
the Department, but the content in the additional pages past page 20 
will not be evaluated or considered by the Department. The Department 
would prefer that applicants use one-inch margins and a font size not 
less than 12 point type.

[[Page 48578]]

    Registration with www.grants.gov: Communities must be registered 
with www.grants.gov in order to submit an application for funds 
available under this program. For consortium applications, only the 
Legal Sponsor must be registered with www.grants.gov in order to submit 
its application for funds available under this program. See Appendix A 
for additional information on applying through www.grants.gov.
    Contents of Application: There is no set format that must be used 
for applications. Each application should, to the maximum extent 
possible, address the selection criteria set forth in Section E.1. 
below, including a clear description of the air service needs/
deficiencies and present plans/strategies that directly address those 
needs/deficiencies. At a minimum, however, each application must 
include the following information:
    <bullet> A description of the community's air service needs or 
deficiencies, including information about: (1) Major origin/destination 
markets that are not now served or are not served adequately; (2) fare 
levels that the community deems relevant to consideration of its 
application, including market analyses or studies demonstrating an 
understanding of local air service needs; (3) any recent air service 
developments that have adversely affected the community;\10\ and (4) 
any air service development efforts over the past three years and the 
results of those efforts (such as marketing and promotion (including 
advertising and public relations)).
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    \10\ For example, if a community has lost service or been 
otherwise adversely affected as a result of an airline merger, the 
applicant should describe the situation in detail and quantify, to 
the extent possible, its effects on the community.
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    <bullet> A strategic plan for meeting those needs under the Small 
Community Program, including the community's specific project goal(s) 
and detailed plan for attaining such goal(s). If the application is 
selected, DOT will work with the grantee to incorporate the relevant 
elements of the application's strategic plan into the grant agreement's 
project scope.\11\ Applicants should note that, once a grant agreement 
is signed, the agreement generally cannot be amended in a way that 
would alter the project scope. Applicants also are advised to obtain 
firm assurances from air carriers proposing to offer new air services 
if a grant is awarded. Strategic plans should:
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    \11\ If new service is proposed to or from a specific city or 
market served by multiple airports (such as New York, Chicago, Los 
Angeles, or Washington, DC, for example), the applicant is 
encouraged to identify the airport(s) in that city or market the 
community would be targeting under its proposal in order to 
facilitate the drafting of the grant agreement's project scope. 
Communities should carefully select, within a specific city or 
market, those airports for which it proposes service, as proposing 
multiple airports in a city or market could impact the ability of a 
community to seek future grants involving those airports (see Same 
Project Limitation, above).
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    [cir] for applications involving new or improved service, explain 
how the service will become self-sufficient;
    [cir] fully and clearly outline the goals and objectives of the 
project; and
    [cir] fully and clearly summarize the actual, specific steps (in 
bullet form, with a proposed timeline) that the community intends to 
take to bring about these goals and objectives.
    <bullet> If relevant, a detailed description of the funding 
necessary for implementation of the proposed project (including federal 
and non-federal contributions).
    <bullet> An explanation of how the proposed project differs from 
any previous projects for which the community received SCASDP funds 
(see Same Project Limitation, above).
    <bullet> Designation of a legal sponsor responsible for 
administering the proposed project. The legal sponsor of the proposed 
project must be a government entity, such as a State, county, or 
municipality. The legal sponsor must be legally, financially, and 
otherwise able to execute the grant agreement and administer the grant, 
including having the authority to sign the grant agreement and to 
assume and carry out the certifications, representations, warranties, 
assurances, covenants and other obligations required under the grant 
agreement with the Department and to ensure compliance by the grant 
recipient with the grant agreement and grant assurances. If the 
applicant is a public-private partnership, a public government member 
of the organization must be identified as the community's sponsor to 
receive project cost reimbursements. A community may designate only one 
government entity as the legal sponsor, even if it is applying as a 
consortium that consists of two or more local government entities. 
Private organizations may not be designated as the legal sponsor of a 
grant under the Small Community Program. The community has the 
responsibility to ensure that the legal sponsor and grant recipient of 
any funding has the legal authority under state and local laws to carry 
out all aspects of the grant, and the Department may require an opinion 
of the legal sponsor's attorney as to its legal authority to act as a 
sponsor and to carry out its responsibilities under the grant 
agreement. The applicant should also provide the name of the signatory 
party for the legal sponsor.

3. Dun and Bradstreet Universal Numbering System (DUNS) Number and 
System for Award Management (SAM)

    Each applicant is required to (i) be registered in SAM before 
submitting its application; (ii) provide a valid DUNS number in its 
application; and (iii) continue to maintain an active SAM registration 
with current information at all times during which it has an active 
Federal award or an application or plan under consideration by DOT. DOT 
will not make any award to an applicant until the applicant has 
complied with all applicable DUNS and SAM requirements and, if an 
applicant has not fully complied with the requirements by the time DOT 
is ready to make an award, DOT may determine that the applicant is not 
qualified to receive a Federal award and use that determination as a 
basis for making a Federal award to another applicant. For more 
information on DUNS and SAM requirements for this award, see Appendix 
A.

4. Submission Dates and Times

    An application will not be complete and will be deemed ineligible 
for a grant award until and unless all required materials, including 
SF424, have been submitted through www.grants.gov and time-stamped by 
4:00 p.m. EST on December 15, 2017 (the ``Application Deadline''). See 
Timely Receipt Requirements and Proof of Timely Submission as well as 
Experiencing Unforeseen www.grants.gov Technical Issues in Appendix A 
for more details.
    Late Application Notice: Applicants who are unable to successfully 
submit their application package through grants.gov prior to the 
Application Deadline due to technical difficulties outside their 
control must submit an email to <a href="/cdn-cgi/l/email-protection#aaf9e9ebf9eefacdd8cbc4ded9eacec5de84cdc5dc"><span class="__cf_email__" data-cfemail="ce9d8d8f9d8a9ea9bcafa0babd8eaaa1bae0a9a1b8">[email protected]</span></a> with the 
information described in Appendix A.

5. Funding Restrictions

    Expenditures made prior to the execution of a grant agreement, 
including costs associated with preparation of the grant application, 
will not be reimbursed. For more information, see Section F.1. below.

6. Other Submission Requirements

    Applicants must follow the steps outlined above and in Appendix A 
to submit applications electronically via www.grants.gov. Additional 
information about submission requirements and www.grants.gov 
requirements is detailed in Appendix A.

[[Page 48579]]

E. Application Review Information

1. Criteria

    SCASDP grants will be awarded based on the selection criteria 
outlined below. There are two categories of selection criteria: 
Priority Selection Criteria and Secondary Selection Criteria. 
Applications that meet one or more of the Priority Selection Criteria 
will be viewed more favorably than those that do not meet any Priority 
Selection Criteria.
a. Priority Selection Criteria
    The statute directs the Department to give priority consideration 
to those communities or consortia where the following criteria are met:
    1. Air fares are higher than the national average air fares for all 
communities.--The Department will compare the local community's air 
fares to the national average air fares for all similar markets. 
Communities with market air fares significantly higher than the 
national average air fares in similar markets will receive priority 
consideration. The Department calculates these fares using data from 
the Bureau of Transportation Statistics (BTS) Airline Origin and 
Destination Survey data. The Department evaluates all fares in all 
relevant markets that serve a SCASDP community and compares the SCASDP 
community fares to all fares in similar markets across the country. 
Each SCASDP applicant's air fares are computed as a percentage above or 
below the national averages. The report compares a community's air 
fares to the average for all other similar markets in the country that 
have similar density (passenger volume) and similar distance 
characteristics (market groupings). All calculations are based on 12-
month ended periods to control for seasonal variation of fares.
    2. The community or consortium will provide a portion of the cost 
of the activity from local sources other than airport revenue 
sources.--The Department will consider whether a community or 
consortium proposes local funding for the proposed project. 
Applications providing proportionately higher levels of cash 
contributions from sources other than airport revenues will be viewed 
more favorably. Applications that provide multiple levels of 
contributions (state, local, cash and in-kind contributions) will also 
be viewed more favorably. See Additional Guidance--Cost Sharing and 
Local Contributions, in Subsection c. below, for more information on 
the application of this selection criterion.
    3. The community or consortium has established or will establish a 
public-private partnership to facilitate air carrier service to the 
public.--The Department will consider a community's or consortium's 
commitment to facilitate air carrier service in the form of a public-
private partnership. Applications that describe in detail how the 
partnership will actively participate in the implementation of the 
proposed project will be viewed more favorably.
    4. The assistance will provide material benefits to a broad segment 
of the traveling public, including businesses, educational 
institutions, and other enterprises, whose access to the national air 
transportation system is limited.--The Department will consider whether 
the proposed project would provide, to a broad segment of the 
community's traveling public, important benefits relevant to the 
community. Examples include service that would offer new or additional 
access to a connecting hub airport, service that would provide 
convenient travel times for both business and leisure travelers that 
would help obviate the need to drive long distances, and service that 
would offer lower fares.
    5. The assistance will be used in a timely manner.--The Department 
will consider whether a proposed project provides a well-defined 
strategic plan and reasonable timetable for use of the grant funds. In 
the Department's experience, reasonable timetables for use of grant 
funds generally include two years to complete studies, three years for 
marketing and promotion (including advertising and public relations) of 
the airport, community, carrier, or destination, and four years for 
projects that target a revenue guarantee, subsidy, or other financial 
incentives. Applicants should describe how their projects can be 
accomplished within this timetable, including whether the airport and 
proposed air service provider have the requisite authorities and 
certifications necessary to carry out the proposed projects. In 
addition, because of this emphasis placed on timely use of funds, 
applicants proposing new service should describe the airport and 
whether it can support the proposed service, including whether the 
airport holds, or intends to apply for, an airport operating 
certificate issued under 14 CFR Part 139. Air service providers 
proposed for the new service must have met or be able to meet, in a 
reasonably short period of time, all Department requirements for air 
service certification, including safety and economic authorities.
    6. Multiple communities cooperate to submit a regional or 
multistate application to consolidate air service into one regional 
airport.--The Department will consider whether a proposed project 
involves a consortium effort to consolidate air service into one 
regional airport. This statutory priority criterion was added pursuant 
to Section 429 of the FAA Modernization and Reform Act of 2012 (Pub. L. 
No. 112-95).
b. Secondary Selection Criteria
    1. Innovation--The Department will consider whether an application 
proposes new and creative solutions to air transportation issues facing 
the community, including:
    <bullet> the extent to which the applicant's proposed solution(s) 
to solving the problem(s) is new or innovative, including whether the 
proposed project utilizes or encourages intermodal or regional 
solutions to connect passengers to the community's air service (or, if 
the community cannot implement or sustain its own air services, to 
connect to a neighboring community's air service) e.g., cost-effective 
inter/intra city passenger bus service, or marketing of intermodal 
surface transportation options also available to air travelers; and
    <bullet> whether the proposed project, if successfully implemented, 
could serve as a working model for other communities.
    2. Community Participation--The Department will consider whether an 
application has broad community participation, including:
    <bullet> whether the proposed project has broad community support; 
and
    <bullet> the community's demonstrated commitment to and 
participation in the proposed project.
    3. Location--The Department will consider the location and 
characteristics of a community:
    <bullet> the geographic location of each applicant, including the 
community's proximity to larger centers of air service and low-fare 
service alternatives;
    <bullet> the population and business activity, as well as the 
relative size of each community; and
    <bullet> whether the community's proximity to an existing or prior 
grant recipient could adversely affect either its proposal or the 
project undertaken by the other recipient.
    4. Other Factors--The Department will also consider:
    <bullet> whether the proposed project clearly addresses the 
applicant's stated problems;
    <bullet> the community's existing level of air service and whether 
that service has been increasing or decreasing;
    <bullet> whether the applicant has a plan to provide any necessary 
continued

[[Page 48580]]

financial support for the proposed project after the requested grant 
award expires;
    <bullet> the grant amount requested compared with the total funds 
available for all communities;
    <bullet> the proposed federal grant amount requested compared with 
the local share offered;
    <bullet> any letters of intent from airline planning departments or 
intermodal surface transportation providers on behalf of applications 
that specifically indicate intent to enlist new or expanded air service 
or surface transportation service in support of the air service in the 
community;
    <bullet> whether the applicant has plans to continue with the 
proposed project if it is not self-sustaining after the grant award 
expires; and
    <bullet> equitable and geographic distribution of available funds.
c. Additional Guidance
    Market Analysis: Applicants requesting funds for a revenue 
guarantee/subsidy/financial incentive are encouraged to conduct and 
reference in their applications an in-depth analysis of their target 
markets. Target markets can be destination specific (e.g., service to 
LAX), a geographic region (e.g., northwest mountain region) or 
directional (e.g., hub in the southeastern United States or a point 
north, south, east, or west of the applicant community).
    Complementary Marketing Commitment: Applicants requesting funds for 
a revenue guarantee/subsidy/financial incentive are encouraged to 
designate in their applications a portion of the project funds 
(federal, local or in-kind) for the development and implementation of a 
marketing plan in support of the service sought.
    Subsidies for a Carrier to Compete Against an Incumbent: The 
Department is reluctant to subsidize one carrier, but not others in a 
competitive market. For this reason, a community that proposes to use 
the grant funds for service in a city-pair market that is already 
served by another air carrier must explain in detail why the existing 
service is insufficient or unsatisfactory, or provide other compelling 
information to support such a proposal.
    Cost Sharing and Local Contributions: Applications must clearly 
identify the level of federal funding sought for the proposed project. 
Applications must also identify the community's cash contributions to 
the proposed project, in-kind contributions from the airport, and in-
kind contributions from the community. Non-federal funds will be 
applied proportionately to the entire scope of the project. Communities 
cannot use non-federal funds selectively to fund certain components of 
a project (see Section F.2. below on Payments for more information). 
Cash contributions from airport revenues must be identified separately 
from cash contributions from other community sources. Cash 
contributions from the state and/or local government should be 
separately identified and described as well.
    Types of contributions. Contributions should represent a new 
financial commitment or new financial resources devoted to attracting 
new or improved service, or addressing specific high-fare or other 
service issues, such as improving patronage of existing service at the 
airport. For communities that propose to contribute to the grant 
project, that contribution can be in the following forms:
    Cash from non-airport revenues. A cash contribution can include 
funds from the state, the county or local government, and/or from local 
businesses, or other private organizations in the community. Because 
private cash contributions are to be from local community sources, the 
Department will not consider as a part of these non-airport revenues 
any funds that a community might receive from an air carrier interested 
in providing service under that community's proposal. Moreover, 
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 
subsidies (including revenue guarantees) to airlines, per 49 U.S.C. 
Sec. Sec.  47107 and 47133. Applications that include local 
contributions based on airport revenues do not receive priority 
consideration for selection.
    In-kind contributions from the airport. This can include such items 
as waivers of landing fees, ground handling fees, terminal rents, fuel 
fees, and/or vehicle parking fees.
    In-kind contributions from the community. This can include such 
items as donated advertising from media outlets, catering services for 
inaugural events, or in-kind trading, such as advertising in exchange 
for free air travel. Travel banks and travel commitments/pledges are 
considered to be in-kind contributions.
    Cash vs. in-kind contributions. Communities that include local 
contributions made in cash will be viewed more favorably.
    Eligible Air Carriers: As noted in footnote 7 above, only U.S. air 
carriers are eligible to receive assistance from communities under 
SCASDP grants. A particular U.S. carrier may hold authority to conduct 
operations as a certificated air carrier, a commuter air carrier, or an 
air taxi operator.\12\ Communities are encouraged to verify, at an 
early stage of any air carrier discussions, that the air carrier holds 
appropriate Department authority to conduct the proposed services. 
Communities may verify this authority by contacting the Department's 
Air Carrier Fitness Division at (202) 366-9721.
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    \12\ For example, an air carrier holding only air taxi authority 
under 14 CFR parts 298 and 135 is limited to the use of small 
aircraft (60 or fewer seats and a maximum payload capacity of 18,000 
pounds or less), and to conducting fewer than five round-trip 
flights per week in a particular city-pair market.
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    Aviation Security: Communities proposing new or expanded air 
service under a SCASDP grant proposal are encouraged to contact the 
Transportation Security Administration (TSA) early in the process to 
ascertain what the security implications of such service would be with 
respect to the airport involved, and what measures that airport would 
need to take with the TSA to assure that the service would meet all 
applicable TSA requirements.

2. 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 D.2. above).
    To the extent that the Department determines that an application 
does not satisfy these eligibility requirements, the Department will 
deem that application ineligible and not consider it further.
    The Department will then review all eligible applications based on 
the selection criteria outlined above in Section E.1. The Department 
will not assign specific numerical scores to projects based on the 
selection criteria. Rather, ratings of ``highly recommended,'' 
``recommended,'' ``acceptable,'' or ``not recommended'' will be 
assigned to applications. Applications that align well with one or more 
of the Priority Selection Criteria will be viewed more favorably than

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those that do not align with any Priority Selection Criteria. The 
Department will consider the Secondary Selection Criteria when 
comparing and selecting among similarly-rated projects.
    The Department reserves the right to award funds for a part of the 
project included in an application, if a part of the project is 
eligible and aligns well with the selection criteria specified in this 
Order. In addition, as part of its review of the Secondary Selection 
Criterion ``Other Factors,'' the Department will consider the 
geographical distribution of the applications to ensure consistency 
with the statutory requirement limiting awards to no more than four 
communities or consortia of communities, or a combination thereof, from 
the same state. The final selections will be limited to no more than 40 
communities or consortia of communities, or a combination thereof.

F. Federal Award Administration Information

1. Federal Award Notices

    Grant awards will be made as promptly as possible so that selected 
communities can complete the grant agreement process and implement 
their plans. Given the competitive nature of the grant process, the 
Department will not meet with applicants regarding their applications. 
All non-confidential portions of each application, all correspondence 
and ex-parte communications, and all orders will be posted in the 
above-captioned docket on www.regulations.gov.
    The Department will announce its grant selections in a Selection 
Order that will be posted in the above-captioned docket, served on all 
applicants and all parties served with this Solicitation Order, and 
posted on the Department's SCASDP website https://www.transportation.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.
    Grant Agreements: Communities awarded grants are required to 
execute a grant agreement with the Department before they begin to 
expend funds under the grant award. Applicants should not assume they 
have received a grant, nor should they obligate or expend local funds 
prior to receiving and fully executing a grant agreement with the 
Department. As noted above, expenditures made prior to the execution of 
a grant agreement, including costs associated with preparation of the 
grant application, will not be reimbursed.

2. Administrative and National Policy Requirements

    Assurances: There are numerous assurances that grant recipients 
must sign and honor when federal funds are awarded. All communities 
receiving a grant will be required to accept and meet the obligations 
created by these assurances when they execute their grant agreements. 
Copies of assurances are available online at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, (click on 
``SCASDP Grant Assurances'').
    Payments: The Small Community Program is a reimbursable program; 
therefore, communities are required to make expenditures for project 
implementation under the program prior to seeking reimbursement from 
the Department. Eligible project implementation costs are reimbursable 
from grant funds only for services or property delivered during the 
grant term. Reimbursement rates are calculated as a percentage of the 
total federal funds requested divided by the federal funds plus the 
local cash contribution (which is not refundable). The percentage is 
determined by: (SCASDP Grant Amount) / (SCASDP Grant Amount + Local 
Cash Contribution + State Cash Contribution, if applicable). For 
example, if a community requests $500,000 in federal funding and 
provides $100,000 in local contributions, the reimbursement rate would 
be 83.33 percent: ((500,000)/(500,000 + 100,000)) = 83.33. Payments/
expenditures in forms other than cash (e.g., in-kind) are not 
reimbursable.

3. Reporting

    Each grantee must submit semi-annual reports on the progress made 
during the previous period in implementing its grant project. In 
addition, each community will be required to submit a final report on 
its project to the Department, and 10 percent of the grant funds will 
not be reimbursed to the community until such a final report is 
received. Additional information on award administration for selected 
communities will be provided in the grant agreement.

G. Federal Awarding Agency Contact

    For further information concerning the technical requirements set 
out in this Order, please contact Brooke Chapman at 
<a href="/cdn-cgi/l/email-protection#fdbf8f92929698d3be959c8d909c93bd999289d39a928b"><span class="__cf_email__" data-cfemail="da98a8b5b5b1bff499b2bbaab7bbb49abeb5aef4bdb5ac">[email protected]</span></a> 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 https://www.transportation.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.

H. Other Information

1. Air Service Development Zone Designation

    As part of the Small Community Program, the Department may also 
designate one grant recipient as an ``Air Service Development Zone'' 
(ASDZ).\13\ 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 and 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 this 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 apply for this designation. There are no 
additional funds associated with this designation, and applying for 
this designation will provide no special benefits or priority to the 
community applying for a SCASDP grant.
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    \13\ See 49 U.S.C. Sec.  41743(h).
---------------------------------------------------------------------------

    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. 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.

[[Page 48582]]

2. Submission of Confidential Commercial Information

    Applicants may provide certain proprietary business information 
relevant to their applicants on a confidential basis. For additional 
information, see Appendix D.
    This Order is issued under authority delegated in 49 CFR Sec.  
1.25a(b).
    Accordingly,
    1. Applications for funding under the Small Community Air Service 
Development Program should be submitted via www.grants.gov as an 
attachment to the SF424 by 4:00 PM EST, December 15, 2017; and
    2. This Order will be published in the Federal Register, posted on 
www.grants.gov and on www.regulations.gov, and served on the United 
States Conference of Mayors, the National League of Cities, the 
National Governors Association, the National Association of State 
Aviation Officials, County Executives of America, the American 
Association of Airport Executives, and the Airports Council 
International_North America.

    Issued in Washington, D.C. on October 12, 2017.
Susan McDermott,
Deputy Assistant Secretary for Aviation and International Affairs.

    An electronic version of this document is available online at 
www.regulations.gov.

ADDITIONAL INFORMATION ON APPLYING THROUGH WWW.GRANTS.GOV

    Applications must be submitted electronically through http://www.grants.gov/web/grants/applicants/apply-for-grants.html. To apply 
for funding through www.grants.gov, applicants must be properly 
registered. The Grants.gov/Apply feature includes a simple, unified 
application process that makes it possible for applicants to apply 
for grants online. There are five ``Get Registered'' steps for an 
organization to complete at Grants.gov. Complete instructions on how 
to register and apply can be found at http://www.grants.gov/web/grants/applicants/organization-registration.html. If applicants 
experience difficulties at any point during registration or 
application process, please call the www.grants.gov Customer Support 
Hotline at 1-800-518-4726, Monday-Friday from 7:00 AM to 9:00 PM 
EDT.
    Registering with www.grants.gov is a one-time process; however, 
processing delays may occur and it can take up to several weeks for 
first-time registrants to receive confirmation and a user password. 
It is highly recommended that applicants start the registration 
process as early as possible to prevent delays that may preclude 
submitting an application by the deadlines specified. Applications 
must be submitted and time-stamped not later than 4:00 PM EST on 
December 15, 2017 (the Application Deadline), and, as set forth 
below, failure to complete the registration process before the 
Application Deadline is not a valid reason to permit late 
submissions.
    In order to apply for SCASDP funding through http://www.grants.gov/web/grants/applicants/apply-for-grants.html, all 
applicants are required to complete the following:
    1. DUNS Requirement. The Office of Management and Budget 
requires that all businesses and nonprofit applicants for federal 
funds include a Dun and Bradstreet Data Universal Numbering System 
(DUNS) number in their applications for a new award or renewal of an 
existing award. A DUNS number is a unique nine-digit sequence 
recognized as the universal standard for identifying and keeping 
track of entities receiving federal funds. The identifier is used 
for tracking purposes and to validate address and point of contact 
information for federal assistance applicants, recipients, and sub-
recipients. The DUNS number will be used throughout the grant life 
cycle. The DUNS number must be included in the data entry field 
labeled ``Organizational DUNS'' on the SF-424 form. Instructions for 
obtaining DUNS number can be found at the following website: http://www.grants.gov/web/grants/applicants/organization-registration/step-1-obtain-duns-number.html.
    2. System for Award Management. In addition to having a DUNS 
number, applicants applying electronically through Grants.gov must 
register with the federal System for Award Management (SAM). Step-
by-step instructions for registering with SAM can be found here: 
http://www.grants.gov/web/grants/applicants/organization-registration/step-2-register-with-sam.html. All applicants must 
register with SAM in order to apply online. Failure to register with 
the SAM will result in your application being rejected by Grants.gov 
during the submissions process.
    3. Username and Password. Acquire an Authorized Organization 
Representative (AOR) and a www.grants.gov username and password. 
Complete your AOR profile on www.grants.gov and create your username 
and password. You will need to use your organization's DUNS Number 
to complete this step. For more information about creating a profile 
on Grants.gov visit: http://www.grants.gov/web/grants/applicants/organization-registration/step-3-username-password.html.
    4. After creating a profile on Grants.gov, the E-Biz Point of 
Contact (E-Biz POC)--a representative from your organization who is 
the contact listed for SAM--will receive an email to grant the AOR 
permission to submit applications on behalf of their organization. 
The E-Biz POC will then log in to Grants.gov and approve an 
applicant as the AOR, thereby giving him or her permission to submit 
applications. To learn more about AOR Authorization visit: http://www.grants.gov/web/grants/applicants/organization-registration/step-4-aor-authorization.html. To track an AOR status visit: http://www.grants.gov/web/grants/applicants/organization-registration/step-5-track-aor-status.html.
    Applicants are, therefore, encouraged to register early. The 
registration process can take up to four weeks to be completed. 
Thus, registration should be done in sufficient time to ensure it 
does not impact your ability to meet required submission deadlines. 
You will be able to submit your application online any time after 
you have approved as an AOR.
    5. Electronic Signature. Applications submitted through 
Grants.gov constitute a submission as electronically signed 
applications. The registration and account creation with Grants.gov 
with E-Biz POC approval establishes an Authorized Organization 
Representative (AOR). When you submit the application through 
Grants.gov, the name of your AOR on file will be inserted into the 
signature line of the application. Applicants must register the 
individual who is able to make legally binding commitments for the 
applicant organization as the Authorized Organization Representative 
(AOR);
    6. Search for the Funding Opportunity on www.grants.gov. Please 
use the following identifying information when searching for the 
SCASDP funding opportunity on www.grants.gov. The Catalog of Federal 
Domestic Assistance (CFDA) number for this solicitation is 20.930, 
titled Payments for Small Community Air Service Development.
    7. Submit an application addressing all of the requirements 
outlined in this funding availability announcement. Within 24-48 
hours after submitting your electronic application, you should 
receive an email validation message from www.grants.gov. The 
validation message will tell you whether the application has been 
received and validated or rejected, with an explanation. You are 
urged to submit your application at least 72 hours prior to the due 
date of the application to allow time to receive the validation 
message and to correct any problems that may have caused a rejection 
notification.
    8. Timely Receipt Requirements and Proof of Timely Submission. 
Proof of timely submission is automatically recorded by Grants.gov. 
An electronic timestamp is generated within the system when the 
application is successfully received by Grants.gov. The applicant 
will receive an acknowledgement of receipt and a tracking number 
from Grants.gov with successful transmission of the application. 
Applicants should print this receipt and save it, as a proof of 
timely submission.
    9. Grants.gov allows applicants to download the application 
package, instructions and forms that are incorporated in the 
instructions, and work offline. In addition to forms that are part 
of the application instructions, there will be a series of 
electronic forms that are provided utilizing Adobe Reader.
    a. Adobe Reader. Adobe Reader is available for free to download 
from the Adobe Software Compatibility page: http://www.grants.gov/web/grants/applicants/adobe-software-compatibility.html. Adobe 
Reader allows applicants to read the electronic files in a form 
format so that they will look like any other Standard form. The 
Adobe Reader forms have content sensitive help. This engages the 
content sensitive help

[[Page 48583]]

for each field you will need to complete on the form. The Adobe 
Reader forms can be downloaded and saved on your hard drive, network 
drive(s), or CDs.
    b. NOTE: For the Adobe Reader, Grants.gov is compatible with 
versions 9.0.0 and later versions, and with certain versions of 
Adobe Reader DC. Always refer to the Adobe Software Compatibility 
page for compatible versions for the operating system you are using. 
Please do not use lower versions of the Adobe Reader.
    c. Mandatory Fields in Adobe Forms. In the Adobe Reader forms, 
you will note fields that will appear with a background color on the 
data fields to be completed. These fields are mandatory fields and 
they must be completed to successfully submit your application.
    NOTE: When uploading attachments please use generally accepted 
formats such as .pdf, .doc, and .xls. While you may imbed picture 
files such as .jpg, .gif, .bmp, in your files, please do not save 
and submit the attachment in these formats. Additionally, the 
following formats will not be accepted: .com, .bat, .exe, .vbs, 
.cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora, .sys, and .zip.

Experiencing Unforeseen www.grants.gov Technical Issues

    Late Application Notice: Applicants who are unable to 
successfully submit their application package through grants.gov 
prior to the Application Deadline due to technical difficulties 
outside their control must submit an email to <a href="/cdn-cgi/l/email-protection#f8abbbb9abbca89f8a99968c8bb89c978cd69f978e"><span class="__cf_email__" data-cfemail="c5968684968195a2b7a4abb1b685a1aab1eba2aab3">[email protected]</span></a> 
with the following information:
    <bullet> The nature of the technical difficulties experienced in 
attempting to submit an application;
    <bullet> A screenshot of the error;
    <bullet> The Legal Sponsor's name; and
    <bullet> The Grants.Gov tracking number (e.g. GRANT12345678).
    DOT will consider late applications on a case-by-case basis and 
reserves the right to reject late applications that do not meet the 
conditions outlined in the Order Soliciting Small Community Grant 
Proposals. Late applications from applicants that do not provide DOT 
an email with the items specified above will not be considered.
    If you experience unforeseen www.grants.gov technical issues 
beyond your control that prevent you from submitting your 
application by the Application Deadline, you must contact us at 
<a href="/cdn-cgi/l/email-protection#b2e1f1f3e1f6e2d5c0d3dcc6c1f2d6ddc69cd5ddc4"><span class="__cf_email__" data-cfemail="510212100215013623303f252211353e257f363e27">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#fbad9295989ed5b89489889a8994bb9f948fd59c948d"><span class="__cf_email__" data-cfemail="73251a1d10165d301c010012011c33171c075d141c05">[email protected]</span></a> or (202) 366-1842 by 
4:00 PM EST December 18, 2017 (the first business day following the 
deadline) and request approval to submit your application after the 
deadline has passed. At that time, DOT staff will require you to 
provide your DUNS number and your www.grants.gov Help Desk tracking 
number(s). After DOT staff review all of the information submitted 
and contact the www.grants.gov Help Desk to validate the technical 
issues you reported, DOT staff will contact you to either approve or 
deny your request to submit a late application through 
www.grants.gov. If the technical issues you reported cannot be 
validated, your application will be rejected as untimely.
    To ensure a fair competition for limited discretionary funds, 
the following conditions are not valid reasons to permit late 
submissions: (1) Failure to complete the registration process before 
the deadline date; (2) failure to follow www.grants.gov instructions 
on how to register and apply as posted on its website; (3) failure 
to follow all of the instructions in the funding availability 
notice; and (4) technical issues experienced with the applicant's 
computer or information technology (IT) environment.
BILLING CODE 4910-9X-P

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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-2017-0155'' 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 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 4:00 PM 
EST, December 15, 2017, and delivered to the U.S. Department of 
Transportation, Office of Aviation Analysis, 8th Floor, Room W86-
307, 1200 New Jersey Ave. SE., Washington, DC 20590.

[FR Doc. 2017-22513 Filed 10-17-17; 8:45 am]
BILLING CODE 4910-9X-C


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