Overview
Title
Small Shipyard Grant Program; Application Deadlines
Agencies
ELI5 AI
The government has set aside some money to help small boat-building places get better at making and fixing boats and training workers, but it's like when there are 10 cookies and 100 kids, not everyone will get a cookie.
Summary AI
The Maritime Administration under the Department of Transportation has announced the availability of $19.6 million in grants through the Small Shipyard Grant Program. These grants aim to enhance efficiency and quality in small shipyard operations, focusing on capital improvements and training for workers in shipbuilding-related industries. Applications for these grants are open until February 25, 2021, with strict eligibility criteria, including the requirement for shipyards to have fewer than 1,200 production employees. The program encourages the use of U.S.-produced goods and supports projects that aid rural areas and opportunity zones.
Abstract
Under the Small Shipyard Grant Program, $19,600,000 is currently available for grants to: (1) Make capital and related improvements to qualified shipyard facilities that will be effective in fostering efficiency, competitive operations, and quality ship construction, repair, and reconfiguration, and (2) provide training for workers in shipbuilding, ship repair, and associated industries. This notice announces the intention of the Maritime Administration (MARAD) to provide for grants to small shipyards. Federal Assistance Listing Number: 20.814 (formerly known as the Catalog of Federal Domestic Assistance Number). Potential applicants are advised that it is expected, based on experience, that the number of applications will far exceed the funds available and that only a small percentage of applications will be funded. Historically, the program has selected roughly 15-30 applications for funding with an average grant amount of about $1 million.
Keywords AI
Sources
AnalysisAI
The recent notice from the Maritime Administration, part of the Department of Transportation, announces the availability of grants totaling $19.6 million through the Small Shipyard Grant Program. This initiative is meant to support small shipyards by funding projects that enhance their efficiency and improve the quality of ship construction, repair, and other operations. Furthermore, the grants are aimed at providing workforce training within shipbuilding and related industries. The deadline for submitting applications is set for February 25, 2021, and the program brings with it a set of criteria and requirements for applicants to meet.
Issues and Concerns
One of the primary concerns raised by this grant program is the competitive nature of the application process, as historically, only a small fraction of applications receive funding. This may present challenges regarding the equitable distribution of funds and transparency in the selection process. Smaller shipyards, in particular, might find it difficult to compete with better-established counterparts if they lack access to necessary financial resources, especially since the grant covers only up to 75% of project costs and third-party in-kind contributions are not permitted.
Another potential issue is the requirement for projects to comply with the Buy America mandates. This could be limiting if domestic suppliers are few, potentially driving up costs and causing delays for projects dependent on foreign materials. The requirement for paper submissions of applications in the digital age may seem outdated, posing an unnecessary administrative burden on applicants and reviewers alike.
Additionally, the complexity of the application process, which demands detailed documentation and rigorous financial evaluation, might deter smaller, less financially stable shipyards from applying. This could inadvertently result in inequitable access to the grants, favoring those with more resources.
Impact on the Public and Stakeholders
The grant program has several implications for different stakeholders. For the broader public, supporting small shipyards can enhance job opportunities and bolster the economy in regions where these shipyards operate. It also aligns with the government's focus on using domestically produced goods, further boosting local industries.
For small shipyards, while the program represents a significant opportunity to obtain funding for vital improvements and training, the stringent eligibility requirements and the competitive nature of the grant could be challenging. Shipyards located in rural areas or designated opportunity zones might benefit more due to possible preferential considerations in the grant evaluations.
In summary, while the Small Shipyard Grant Program has the potential to significantly benefit the shipyard industry by fostering economic growth and job creation, the hurdles in the application process and the requirements could limit accessibility for some stakeholders. Ensuring the program is broadly accessible and that its funds are equitably distributed will be key to its success in supporting the diverse needs of small shipyards across the nation.
Financial Assessment
In the Federal Register document regarding the Small Shipyard Grant Program, the financial aspects, including spending, appropriations, and financial allocations, play a crucial role in understanding how the program operates and its potential impact on the industry.
Summary of Financial Allocations
The document indicates that the Small Shipyard Grant Program has $19,600,000 available for distribution. This funding is aimed at achieving two primary objectives: (1) making capital and related improvements to shipyard facilities to enhance efficiency, competitiveness, and quality in ship construction, repair, and reconfiguration, and (2) providing training for workers in shipbuilding, ship repair, and associated industries. The funds come from the Consolidated Appropriations Act, 2021, which allocated $20,000,000 to the program. After setting aside 2% for administrative expenses, the remaining $19,600,000 is available for grant awards.
Relation to Identified Issues
One of the notable issues identified is that historically, the number of applications exceeds the available funds, causing only a small percentage of applications to be funded. Typically, the program selects about 15-30 applications for funding, with an average grant amount of approximately $1 million. This limitation raises concerns about equitable distribution and whether smaller shipyards, potentially lacking resources to prepare highly competitive applications, can fairly compete against larger or more financially robust entities.
The program's stipulation that Federal funds will not exceed 75% of the total project cost further complicates this issue. Shipyards must secure the remaining 25% from non-Federal sources, which could disadvantage smaller operations with limited financial capabilities. The prohibition on third-party in-kind contributions adds another layer of difficulty, potentially excluding smaller shipyards from utilizing non-cash resources to meet the matching requirement.
The document also highlights a requirement to comply with the Buy America provisions. While this aligns with national policy to maximize the use of American-made goods, it can potentially increase project costs and cause delays, particularly if domestic sourcing options are limited. This constraint could further impact the feasibility and financial planning of proposed projects.
The application process itself could deter applicants due to its complexity, especially regarding detailed financial documentation and analysis required. This level of scrutiny could disadvantage smaller shipyards with fewer administrative resources, resulting in diminished access to the grants for the facilities that might need them the most.
In conclusion, while the program offers substantial support to improve the shipyard industry, its financial prerequisites and the competitive environment it creates may inadvertently favor larger shipyards over smaller ones, potentially leading to issues of fairness and accessibility. This underscores the need for a careful evaluation of the criteria and processes to ensure equitable distribution of these vital funds.
Issues
• The document indicates that historically, only a small percentage of applications are funded due to limited funds. This may lead to concerns about equitable distribution and whether the selection process is transparent and fair.
• The Federal funds for any eligible project will not exceed 75 percent of the total cost, and the document specifies that third-party in-kind contributions are not allowed. This could be a barrier for smaller shipyards without access to substantial financial resources, potentially favoring larger or more financially stable entities.
• The requirement for projects to comply with the Buy America requirements could be restrictive, particularly if domestic sources are limited or unavailable. This may lead to increased project costs and potential delays.
• The document requires physical submission of the application, which might be considered outdated and could be an administrative burden both for applicants and for reviewers, potentially leading to unnecessary delays in processing applications.
• The complexity of the application requirements, including extensive documentation and detailed financial assessments, might deter smaller, less-resourced shipyards from applying, potentially resulting in inequitable access to grant opportunities.
• The review and selection process involves multiple phases and relies heavily on qualitative assessments, which might introduce subjectivity and limit transparency in how decisions are made.
• Language throughout the document can be very technical and bureaucratic, which could be challenging for potential applicants to fully understand without prior experience or professional assistance.