
[Federal Register Volume 77, Number 94 (Tuesday, May 15, 2012)]
[Notices]
[Pages 28655-28667]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11718]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Order 2012-5-8; Docket DOT-OST-2012-0069]


Notice of Order Soliciting Community Proposals

AGENCY: Department of Transportation.

ACTION: Notice.

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SUMMARY: The Department of Transportation is soliciting proposals from 
communities or consortia of communities interested in receiving a grant 
under the Small Community Air Service Development Program. The full 
text of the Department's order is attached to this document. There are 
two mandatory requirements for filing of applications, both of which 
must be completed for a community's application to be deemed timely and 
considered by the Department. The first requirement is the submission 
of the community's proposal, as described below; the second requirement 
is the filing of SF424 through http://www.grants.gov.

DATES: Grant Proposals as well as the SF424 should be submitted no 
later than June 11, 2012.

ADDRESSES: Interested parties can submit applications and the SF424 
electronically through http://www.grants.gov. An electronic version of 
this document is available at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Aloha Ley, Office of Aviation 
Analysis, 1200 New Jersey Ave. SE., W86-310, Washington, DC 20590, 
(202) 366-2347.

SUPPLEMENTARY INFORMATION:

[[Page 28656]]

Overview

    By this order, the Department invites proposals from communities 
and/or consortia of communities interested in obtaining a federal grant 
under the Small Community Air Service Development Program (Small 
Community Program or SCASDP) to address air service and airfare issues 
in their communities. Applications 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 p.m. EDT on Monday, June 
11, 2012.
    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 Contents
Appendix C--Summary Information
Appendix D--Application Checklist
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 (Pub. L. 106-
181) and reauthorized by the Vision 100-Century of Aviation 
Reauthorization Act (Pub. 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. 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 in FY 2012 pursuant to the FAA Modernization 
and Reform Act of 2012 (Pub. L. 112-95). The Department has up to $14 
million available for FY 2012 grant awards to carry out 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 
proposals 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 diversity 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 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.
    Communities without existing 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, including 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 funds. However, grant awards to EAS-subsidized communities are 
limited to marketing or promotion projects that support existing or 
newly subsidized EAS. Grant funds will not be authorized for EAS-
subsidized communities to support any new competing air service. 
Furthermore, no funds will be authorized to support additional flights 
by EAS carriers or changes to those carriers' existing schedules. These 
restrictions are necessary to avoid conflicts with the EAS program.
    Consortium applications: 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.
    Multiple Applications: Communities may file only one application 
for a grant, either individually or as part of a consortium.

B. Eligible Projects

    The Department is authorized to award grants under 49 U.S.C. 41743 
to communities that seek to provide assistance to:
     An air carrier to subsidize service to and from an 
underserved airport for a period not to exceed 3 years;
     An underserved airport to obtain service 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 
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 of the airport and the various services it offers, is 
eligible. We recognize that not all revenue guarantees, marketing 
agreements, equipment purchases, etc. are of the same nature, and that 
if a subsequent application incorporates different goals or 
significantly different components, it may be sufficiently different to

[[Page 28657]]

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 be 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 viewed 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:
     Air fares are higher than the national average 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 air 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 markets 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.
     The community or consortium will provide a portion of the 
cost of the activity from local sources other than airport revenue 
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 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.
     The community or consortium has established or will 
establish a public-private 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 
partnership will actively participate in the implementation of the 
proposed project will be viewed more favorably.
     The assistance will provide material benefits to a broad 
segment of the traveling public, including business, educational 
institutions, and other enterprises, whose access to the national air 
transportation system is limited--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 offer lower 
fares.
     The 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 financial incentives. 
Applicants should describe how their projects can be accomplished 
within a reasonable time period.
     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 (Pub. L. 112-95).

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/intra city passenger bus service, marketing of 
intermodal surface transportation options also available 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 communities; and
     Whether the proposed project clearly addresses the 
applicant's stated problems.
    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 
participation 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 larger 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 its 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

[[Page 28658]]

surface transportation providers on behalf of applications that are 
specifically intended to enlist new or expanded air service or surface 
transportation service in support of the air service in the community;
     Whether the applicant has plans to continue with the 
proposed project if it is not self-sustaining after the grant award 
expires; and
     Equitable and geographic distribution of available funds.

C. Additional Guidance

    Market 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).
    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, 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 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. Cash contributions from airport 
revenues must be identified separately from cash contributions from 
other community sources, and cash contributions from the state 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 state, the county or the local government, and/or from 
local businesses, or other private organizations in the community. 
Contributions that are comprised of intangible non-cash items, such as 
the value of donated advertising, are considered in-kind contributions 
(see further discussion below).
    Cash from airport revenues. This includes contributions from funds 
generated by airport operations. Airport revenues may not be used for 
revenue guarantees to airlines, per 49 U.S.C. 47107, 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, 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.
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    \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 of 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.
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    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 those 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. 
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 Web site 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 required 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);
     Attach any letters from the community showing support for 
the application to the proposal, which should be addressed to Aloha 
Ley, Associate Director, Small Community Program; and
     Provide separate submission of confidential material, if 
requested. (see Appendix E)
    Each application must be no longer than 25 one-sided pages 
(excluding the

[[Page 28659]]

completed SF424, cover sheet, Summary Information schedule, and any 
letters from 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 p.m. EDT on June 
11, 2012.
    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 
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 applying 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 directly address those needs/
deficiencies. At a minimum, however, each application must include the 
following information:
     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; and (3) any air service 
development efforts over the past three years and the results of those 
efforts (including marketing and promotional efforts).
     A strategic plan for meeting those needs under the Small 
Community Program, including the community's specific project goal(s) 
and detailed plan for attaining such goal(s). Applicants are advised to 
obtain firm assurances from air carriers proposing to offer new air 
services if a grant is awarded. Plans should:
    [check] For applications involving new or improved service, explain 
how the service will become self-sufficient.
    [check] Fully and clearly outline the goals and objectives of the 
project. When an application is selected, these goals and objectives 
will be incorporated into the grant agreement and define its 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 consider whether the amendment sought is consistent 
with the project scope as set forth in the grant agreement. Amendments 
that would alter the scope will not be permitted.
    [check] Include alternative or back-up strategies for achieving 
their desired goals and objectives. 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 responsibility to ensure that the 
recipient of any funding has the legal authority under state and local 
laws to carry out all aspects of the grant.

V. 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. 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 benefit or priority to a 
community applying for a SCASDP grant.
    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.

VI. Grant Administration

    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. Expenditures made prior to the execution of a grant 
agreement, including costs associated with preparation of the grant 
application, will not be reimbursed. Moreover, there are numerous 
assurances that grant recipients must sign and honor when federal funds 
are awarded. All communities receiving a grant will be required to 
accept the responsibilities of these assurances and to execute such the 
assurances when they execute their grant agreements. Copies of 
assurances are available online at http://ostpxweb.dot.gov/aviation/X50%20Role_files/smallcommunity.htm, (click 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. The Department will grant an extension 
only when the community can provide strong evidence of a firm 
commitment on the part of an air carrier to deliver the desired 
service.
    Payments: The Small Community Program is a reimbursable program; 
therefore, communities are required to

[[Page 28660]]

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 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). Payments/expenditures in forms other than 
cash (e.g. in-kind) are not reimbursable. For example, if a community 
requests $500,000 in federal funding and provides $100,000 in local 
contributions, the reimbursement rate would be 83.33 percent: 
((500,000)/(500,000 + 100,000)) = 83.33.
    Grantee Reports: 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 grant 
funds will not be reimbursed to the community until such final report 
is received. Additional information on award administration for 
selected communities will be provided in the grant agreement.
    Grant Amendments: 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 completing 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 scope of the agreement.

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 Web site 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 International-North America.

    Issued May 9, 2012.

    By:
 Robert A. Letteney,
Deputy Assistant Secretary for Aviation and International Affairs.

Appendix A

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. 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 will not be 
accepted after June 11, 2012; delayed registration is not an 
acceptable 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 federal 
funds include a DUNS (Data Universal Numbering System) 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. 
Obtaining a DUNS number is a free, one-time activity. Obtain a DUNS 
number by calling 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 federal 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 database is 
the repository for standard information about federal financial 
assistance applicants, recipients, and sub-recipients. Organizations 
that have previously submitted applications via www.grants.gov are 
already registered 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 (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 the registration process, go to 
www.grants.gov/applicants/get_registered.jsp.
    4. Acquire Authorization for your AOR from the E-Business 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 
Domestic 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 
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.


[[Page 28661]]



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 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 Web site; (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.

Appendix B

Cover Sheet

    The cover page for all applications should bear the title 
``Application Under the Small Community Air Service Development 
Program, Docket DOT-OST-2012-0069'' 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 Numbering System (DUNS) number, including + 4; Employee 
Identification Number (EIN) or Tax ID; and
    (3) The 2-digit Congressional district code applicable to the 
sponsoring organization and, if a consortium, to each participating 
community.
BILLING CODE 4910-9X-P

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BILLING CODE 4910-9X-C

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 
CFR 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-2012-0069,'' and include with that material a request 
in the form of a motion seeking confidential treatment of the 
material under 14 CFR 302.12 (Rule 12) of the Department's 
regulations. The applicant should submit an original and two copies 
of its motion and an original and two copies of the confidential 
material in the sealed envelope.
    The confidential material should not be included with the 
original of the applicant's proposal that is submitted via 
www.grants.gov. The applicant's original submission, however, should 
indicate clearly where the confidential material would have been 
inserted. If an applicant invokes Rule 12, the confidential portion 
of its filing will be treated as confidential pending a final 
determination. All confidential material must be received by June 
11, 2012, and delivered to the Office of Aviation Analysis, 8th 
Floor, Room W86-310, 1200 New Jersey Ave. SE., Washington, DC 20590.
    A template for the confidential motion can be found at http://ostpxweb.dot.gov/aviation/X-50%20Role_files/smallcommunity.htm.
    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 
CFR 7.17), such information is limited to commercial or financial 
information that, if disclosed, would either likely cause 
substantial harm to the competitive position of a business or 
enterprise or make it more difficult for the Federal Government to 
obtain similar information in the future.
    Applicants seeking confidential treatment of a portion of their 
applications must segregate the confidential material in a sealed 
envelope marked ``Confidential Submission of X (the applicant) in 
Docket DOT-OST-2011-0119,'' and include with that material a request 
in the form of a motion seeking confidential treatment of the 
material under 14 CFR 302.12 (Rule 12) of the Department's 
regulations. The applicant should submit an original and two copies 
of its motion and an original and two copies of the confidential 
material in the sealed envelope.
    The confidential material should not be included with the 
original of the applicant's proposal that is submitted via 
www.grants.gov. The applicant's original submission, however, should 
indicate clearly where the confidential material would have been 
inserted. If an applicant invokes Rule 12, the confidential portion 
of its filing will be treated as confidential pending a final 
determination. All confidential material must be received by August 
2, 2011, and delivered to the Office of Aviation Analysis, 8th 
Floor, Room W86-310, 1200 New Jersey Ave. SE., Washington, DC 20590.
    A template for the confidential motion can be found at http://ostpxweb.dot.gov/aviation/X-50%20Role_files/smallcommunity.htm.

[FR Doc. 2012-11718 Filed 5-10-12; 4:15 pm]
BILLING CODE 4910-9X-P


