Operation Safe Commerce (OSC) Cooperative Agreement Program

To explore commercially viable options to enhance cargo security, including business processes and technology prototypes, which support containerized cargo supply chain security management while facilitating the flow of trade.

Examples of Funded Projects

Security measures addressed 18 specified supply chain nodes, pilot use of commercial-off-the-shelf technology and emerging technologies; development and demonstration of a comprehensive supply chain security approach; and monitoring and warning about potential threats in supply chain logistics.

Agency - Department of Homeland Security

The Department of Homeland Security has three primary missions: Prevent terrorist attacks within the United States, reduce America's vulnerability to terrorism and minimize the damage from potential attacks and natural disasters.

Website Address


Program Accomplishments

During the last funding period, 18 projects were approved.

Uses and Use Restrictions

Allowable costs are detailed in the Request for Applications (RFA).

Cost principles applicable to the awards are OMB Circular No.

A-21 for institutions of higher education, with OMB Circular No.

A-87 for State and local governments, with OMB Circular No.

A-122 for nonprofit organizations, and with 48 CFR Part 31 for commercial organizations.

In general, funds may be used for equipment, supplies, services or consultants, travel, audits, other direct costs, facilities and administrative costs (i.e., indirect costs), and other costs related to meeting the program objectives.

Funds shall not be used for personnel.

Eligibility Requirements

Applicant Eligibility

Applicants eligible for the most recent competition were Load Centers, defined as the Ports of Los Angeles/Long Beach, Seattle/Tacoma, and the Port Authority of New York/New Jersey.

Beneficiary Eligibility

Immediate beneficiaries include applicable stakeholders in the supply chain. Applicable ports will benefit as designated in successful proposals.


Stakeholder participation must be demonstrated through letter(s) of commitment. A copy of the applicant's Federally approved indirect cost rate agreement should be submitted. In addition, National Environmental Policy Act (NEPA)information is required.

Aplication and Award Process

Preapplication Coordination

Preapplication Coordination: This program is not covered under Executive Order 12372, "Intergovernmental Review of Federal Programs".

Application Procedures

Application deadline and other information are contained in the application/program guidance.

Award Procedures

Applications or plans are reviewed by DHS program and administrative staff. Any issues or concerns noted in the application will be negotiated with the successful applicant prior to the award being issued.


Refer to announcement or application guidance for further information.


DHS Appropriations Act for Fiscal Year 2005, Public Law 108-334.

Range of Approval/Disapproval Time

Refer to program guidance document.





Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula and no matching requirements.

Length and Time Phasing of Assistance

Refer to program guidance. Awards are subject to the Cash Management Improvement Act for payment/or reimbursement of expenditures.

Post Assistance Requirements


Categorical Assistance Progress Reports (CAPR) are due within 30 days after the end of the reporting periods, which are June 30 and December 31, for the life of the award.

Grantees are also required to submit quarterly financial reports.

These reports are due 30 days after the end of each quarter: January 30, April 30, July 30, and October 30.Final financial and CAPR reports are due 90 days after the expiration or termination of grant award.


In accordance with the provisions of OMB Circular A-133 (Revised, June 27, 2003), Audits of States, Local Governments, and Nonprofit Organizations, nonfederal entities that expend financial assistance of $500,000 or more in Federal awards (or receive property, or a combination of both, within the fiscal year) will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular A-133. These audits are due to the cognizant Federal agency, submitted through the Federal Audit Clearinghouse, not later than 9 months after the end of the grantees fiscal year.


Grant records shall be retained for a period of 3 years from the day the recipient submits its final expenditure report. If any litigation, claim, negotiation, audit, or other action involving the records has been started before the expiration of the 3-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular 3-year period, whichever is later. Grant records include financial and program/progress reports, support documents, statistical records, and other documents that support the activity and/or expenditure of the recipient or sub-recipient under the award.

Financial Information

Account Identification



(Cooperative Agreements)FY 07 $0; FY 08 $0 not available; and FY 09 est not available.

Range and Average of Financial Assistance

Refer to program guidance.

Regulations, Guidelines, and Literature

Department of Transportation (DOT) grant related regulations include 49 CFR Parts 17-21, 26, 29, and 32. DOT regulations may be superseded by corresponding or applicable new regulations issued by the Department of Homeland Security for this program. Cost principles applicable to the awards are OMB Circular No. A-21 for institutions of higher education, with OMB Circular No. A-87 for State and local governments, with OMB Circular No. A-122 for nonprofit organizations, and with 48 CFR Part 31 for commercial organizations. In addition, the U.S. Customs Service operates related initiatives called the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Container Security Initiative (CSI). See http://www.customs.treas.gov/ for further information on those programs.

Information Contacts

Regional or Local Office

Not applicable.

Headquarters Office

Department of Homeland Security 245 Murray Lane, Bldg. #410, Washington, DC 20528.

Criteria for Selecting Proposals

Refer to the program guidance for information on criteria for selecting proposals.

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