Assistance to Small Shipyards

To award grants for capital improvements and related infrastructure improvements at qualified shipyards that will facilitate the efficiency, cost effectiveness, and quality of domestic ship construction for commercial and Federal Government use.

Agency - Department of Transportation

The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.

Program Accomplishments

FY 07 - 0. In FY 08, it is anticipated that 15 applications will be received and 10 awards will be granted. FY 09 - 0.

Uses and Use Restrictions

For capital and related infrastructure improvements.

Cannot be used for physical facility construction or land acquisition unless specifically approved by Administrator as consistent with capital and infrastructure improvements.

Federal funds cannot exceed 75 percent of project cost unless (1) cost is less than $26,075, or (2) determination is made that project merits support and requires additional assistance.

Eligibility Requirements

Applicant Eligibility

Either a shipyard or a State or local government on behalf of a shipyard can apply.

The shipyard must be one in a single geographical location, located in or near a maritime community, that (1) is a small business concern within the meaning of section 3 of the Small Business Act (15 U.S.C.

632); and (2) does not have more than 600 production employees.

Other factors taken into account when grants are awarded will be (a) the economic circumstances and conditions of the maritime community near to which a shipyard is located; and (B) the local, State and regional economy in which such community is located.

Beneficiary Eligibility



As required by application.

Aplication and Award Process

Preapplication Coordination

This program is excluded from coverage under E.O.12372.

Application Procedures

SF-424 application form must be filed with the Maritime Administration. There are specific agency instructions for additional information which should be provided as an addendum to Form SF-424. These instructions were published in the Federal Register on January 10, 2008, in Vol.73, No. 7, pp.1912-1913. Applicants can go to to apply.

Award Procedures

Awards will be made by the Maritime Administrator in such amounts and under such conditions as he determines.


Applications must be received by the Maritime Administration no later than 5:00 PM EST on February 25, 2008.


Section 3506 of Public Law 109-163.

Range of Approval/Disapproval Time

No later than April 24, 2008.





Assistance Considerations

Formula and Matching Requirements

Section 3506 of the National Defense Authorization Act for Fiscal year 2006 (Public Law 109-163) provides that no more than 75 percent of a project' costs may be paid from Federal funds unless the cost is no greater than $26,075 or the Administrator determines otherwise.

Length and Time Phasing of Assistance

To be individually determined based on project.

Post Assistance Requirements


There will be Progress Reports, Annual Reports, and/or Status Reports depending on the nature of the project and the period of time it is expected to take.


Nonfederal entities that expend $500,000 or more in a year in Federal awards shall have a single or 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 with certain exceptions as stated in OMB Circular No. A-133.


Recipient is required to retain intact, for three years following submission of the final expenditure report, pending resolution of audit findings, all project contract documents, financial records and supporting documents.

Financial Information

Account Identification



FY 07 $0; FY 08 $0; and FY 09 est $10,000,000.

Range and Average of Financial Assistance

Awards can be in any amount up to $10,000,000 (if matching requirement is waived).

Regulations, Guidelines, and Literature

Federal Register publication on January 10, 2008 in Vol.73, No.7, pp.1912-1913. Implementing legislation: Section 3506 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) and section entitled "Assistance to Small Shipyards" in Consolidated Appropriations Act, 2008.

Information Contacts

Regional or Local Office


Headquarters Office

Associate Administrator for Business and Workforce Development, Room W21-318, Maritime Administration, 1200 New Jersey Ave., S.E., Washington, DC 20590; Telephone: (202) 366-5737; E-mail:; Fax: (202) 366-6988.

Criteria for Selecting Proposals

(1) How well the project will facilitate the efficiency, cost-effectiveness, and quality of domestic ship construction for commercial and Federal Government use, and (2) the economic factors set forth in section 081 above.

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