1. Office of Economic Adjustment Informational Session
August 8, 2018
Nia Hope, Deputy Director, Compliance and Integration
Michael Wilson, Deputy Program Director, Compliance and Integration

2. National Defense Strategy
“the foundation on which DoD sets its
priorities and aligns its resources”

3. National Defense Strategy
“the foundation on which DoD sets its
priorities and aligns its resources”
“leverage geography, other U.S. Government departments and agencies, and the Department’s network of allies and partners”

4. National Defense Strategy
“the foundation on which DoD sets its
priorities and aligns its resources”
“leverage geography, other U.S. Government departments and agencies, and the Department’s network of allies and partners”
“demonstrate how different investments improve the combat credibility of the Joint Force”

5. National Defense Strategy
“the foundation on which DoD sets its
priorities and aligns its resources”
“leverage geography, other U.S. Government departments and agencies, and the Department’s network of allies and partners”
“demonstrate how different investments improve the combat credibility of the Joint Force”
“capitalize on its (DoD) comparative advantages and leverage those of its external partners”

6. Secretary of Defense Priorities
Three Overarching Priorities
Rebuild military readiness as we build a more lethal force

7. Secretary of Defense Priorities
Three Overarching Priorities
Rebuild military readiness as we build a more lethal force
Strengthen alliances and attract new partners

8. Secretary of Defense Priorities
Three Overarching Priorities
Rebuild military readiness as we build a more lethal force
Strengthen alliances and attract new partners
Bring business reforms to the Department of Defense for greater performance and affordability

9. FY16 Defense Spending by State Report Extract
Before we talk about OEA, we need to talk about what DoD is doing in California.
First let’s look at FY16 defense spending by state – it will be released on our website in the next week or two (currently being tagged for 508 compliance) California is the top state by total defense spending - $48.8B - $6B more than the #2 state (VA)
California is the top state by defense contract spending - $36.4B - $8B more than the #2 state (VA)
The dollar amounts may differ for upcoming FY17 report, but we don’t anticipate the trends to change significantly

10. Supporting Lethality and Readiness
OEA Programs
Supporting Lethality and Readiness
We know many of you here today, but for those we don’t know, next is an overview of who we are and what we do at OEA
OEA has to align with the National Defense Strategy, which includes the application of our resources – all in support of lethality and readiness

11. Compatible Use Supporting Lethality & Readiness
The “enabler” -- only Department of Defense source of technical and financial resources for civilian efforts to optimize the local mission - support lethality and enhance the military value/resilience of our installations, ranges, and test evaluation facilities – BE READY FOR THE FIGHT!
Currently supports 77 local efforts to support the mission
Facilities, missions, and their threat environments are more complex than what they used to be – respond if no JLUS in the last 5 years – CONVERSATION – COMPREHENSIVE MASTER PLAN
Sustaining Military Readiness Conference, St. Louis, MO August 13-16
If you haven’t had a Joint Land Use Study in the last 5 years, come talk with us
OEA will be at the Sustaining Military Readiness Conference in St. Louis next week

12. Compatible Use Supporting Lethality & Readiness
State of California – Created California Strategic Coordination and Engagement Program to build partnership between DoD, State of California, and local governments to get sound policies adopted and help maintain the vital mission of the armed services in CA
R2508 Range Complex – Joint Land Use Study completed in 2008 and identified likely impairments to the sustained operational utility of the largest single area of overland Special Use Airspace in the U.S. (12% of CA’s total airspace)
Energy Siting – CA Office of Planning and Research submitted a proposal in response to OEA’s energy siting FFO. On and Off-Shore renewable energy development would be addressed as part of the proposal to facilitate siting of energy projects so they do not impair the operational utility of the California military installations, testing and training ranges, and military operations areas
Background info on projects:
State of CA grant – Closed, Success: California Advisory Handbook for Community and Military Compatibility Planning
R2508 – closed - involved Edwards AFB, China Lake NAWS, and Fort Irwin; success: red yellow green map for wind farms
Energy Siting – pending OEA application process - We believe intent is to focus on northern CA first then southern CA. There is a major military training route that runs along the coast from Travis AFB to the vicinity of Edwards AFB, which is also leveraged by aircraft from NAS Fallon in Nevada and others. Also concerned about airspace in southeast CA in area between China Lake, Miramar, and Luke AFB (AZ)

13. [PLACEHOLDER] CA map for Compatible Use projects in last 5 years
This is a map of the OEA Compatible Use projects in California over the last 5 years, with total grant funding per project
If you’re an installation community that hasn’t had a Joint Land Use Study in 5 years, we recommend you consider a new JLUS to ensure compatibility with mission requirements

14. Industry Resilience Supporting Lethality & Readiness
The “enabler” -- only Department of Defense source of technical and financial resources for civilian efforts to help strengthen the economic and cyber resiliency of their supply chains - advancing warfighting lethality/capabilities
– BE READY FOR THE FIGHT
$89.7B in procurement reductions since
FY2010 = 52 projects
Helps to maintain the effective delivery of goods and services for our installations and warfighters

15. Industry Resilience Supporting Lethality & Readiness
State of California: Leading national model to support defense firms in meeting defense cybersecurity contract requirements to modernize and remain integral part of supply chain
Ridgecrest Region: Establish 3D printing ecosystem in rural region to diversify economy and support more robust local supply chain for Edwards AFB and China Lake NAWS
City of Long Beach: Redevelop closed Boeing C-17 Globemaster production facility and transition Long Beach economy to preserve vital workforce skills
San Diego Region: Respond to more than 2,000 regional defense jobs lost by developing strategic framework for workforce transition focused on re-employment
Background on projects in case there are questions:
State of CA: The California Governor’s Office of Planning and Research (OPR) and Office of Business and Economic Development (GO- Biz) are working with a coalition of partners on multiple workforce, supply chain, and cybersecurity resilience initiatives
Ridgecrest – Grantee is Kern County – implementing recommendations made in previous economic development plan.
City of Long Beach: Grantee is City of Long Beach. Currently in phase II, which will complete the economic, workforce, and site-planning needed to fully transition the Long Beach economy, C-17 supply chain and site toward non-defense opportunities aligned with the region’s economic vision.
San Diego: Grantee is City of San Diego. The funding sought through this grant proposal will:
Apply knowledge from the OEA 2016 Grant to develop specific workforce/career programs and business development programs to enhance local economic resiliency.
Enhance communication and networking among defense-sector participants and stakeholders.
Foster an enabling environment (regulatory and physical) for integrated implementation of workforce and business development programs in support of economic resiliency.
Implement strategies for companies to adapt and realize new, or alternate, economic opportunities.

16. This map shows grant efforts for Industry Resilience program (sometimes referred to by folks as Defense Industry Adjustment – DIA) since 2013.

17. This map shows BRAC 2005 locations that we continue to work with because property has not yet transferred from DoD (Riverbank, Concord)
Community Investment projects involve Public Schools on Military Installations and based on the 2011 SECDEF priority list of schools with condition and/or capacity concerns, which is a retention concern for DoD.
China Lake – two schools
San Diego – two schools
Camp Pendleton – one school construction grant, one school design grant only pending match availability
Edwards - one school construction grant, one school design grant only pending match availability

18. FY19 National Defense Authorization Act Conference Report
Military Resilience added to 10 USC §2391
10 year community infrastructure pilot program
Public Schools on Military Installations priority list
Economic Adjustment Committee response for Commonwealth of Northern Mariana Islands
Military resilience – change 10 USC 2391 (which is foundation of OEA’s program authority) to include military resilience. Definition of military resilience: the capability of a military installation to avoid, prepare for, minimize the effort of, adapt to, and recover from extreme weather events, or from anticipated or unanticipated changes in environmental conditions that do, or have the potential to, adversely affect the military installation or essential transportation, logistical, or other necessary resources outside of the military installation that are necessary in order to maintain, improve, or rapidly reestablish installation mission assurance and mission-essential functions.
Community infrastructure – potential new program - 30% match, expires after 10 years
PSMI: updates FY18 NDAA language to lock in priority list from 33 projects to 38. Richmond elementary school at NAWS China Lake is #37
EAC for CNMI – OEA staffs EAC process –NDAA language Convened no later than 90 days after enactment
Even if NDAA passes and is signed by President, decisions have to be made within DoD of who executes.
This proposed authority invites spending funds appropriated to DoD for outside the fence efforts. That is a paradigm shift for DoD – not sure how that will unfold or how long it will take.

19. OEA Financial Assistance

20. Financial Assistance
10 U.S.C 2391 – Secretary of Defense may make grants, cooperative agreements, and supplement funds available under Federal programs administered by agencies other than DoD in order to assist State and local governments in planning community adjustments and economic diversification in response to:
Base closures and realignments
Base expansions
DoD personnel reductions
Industry/contractor reductions
Civilian encroachment on a military installation
- Eligible applicants include State and local governments as well as other instrumentalities of government (ex. Council of Governments, Economic Development Districts).

21. Financial Assistance
Initial inquires can be made through our website ( phone, or in-person.
OEA takes the inquiry and assigns a Project Manager, who will be the community’s primary point of contact and resource for information on OEA’s program of assistance as well as other areas of assistance across the Federal government.
If there is a validated basis for a project, then the Project Manager will work with the community to understand the potential or actual impacts resulting from DoD action.
Legal determination must be made in order to provide financial assistance.

22. Financial Assistance
Communities can make initial contact with OEA by submitting an inquiry through our website at

23. Financial Assistance
Inquiries can be submitted as either general inquiry or program specific.

24. Financial Assistance
If legal determination is made, then an eligible applicant agency will be identified as the sponsor/applicant and invited to submit a grant application through OEA’s grant management system, “EADS II.”
The Project Manager will assist the sponsor/applicant in completing a grant application to include a scope of work and detailed budget.
The application will go through an internal review process and if approved, the application will be processed and awarded.
The Project Manager will work closely with the applicant throughout the application process.

25. Financial Assistance
- Applicants can access our quick start guide for submitting an application. This as well as your assigned Project Manager are resources in assisting you with submitting an application.

26. Financial Assistance Match Requirement (ex. Staff time, cash)
Grant Period – Typically 12 to 18 months but will be determined based on the needs of the community.
Deadline for Applying – Applications are accepted year round.
Approval – To the extent practicable, determination is made within 7 business days following the submission of a signed application for planning grants and 30 days for non-planning grants.

27. Post Award Support
The assigned Project Manager will continue to work with the grantee during the award period and will be responsible for facilitating a grants “kick-off” meeting and monitoring grant activities.
A Grant Management Specialist will also be assigned and is an additional resource to the grantee.
Grantees are responsible for adhering to the standard grant conditions as well as program specific conditions which are accessible on OEA’s website.

28. Contacts Nia Hope Deputy Director, Compliance and Integration
(703) /2130
Michael Wilson
Deputy Program Director, Compliance and Integration
(703) /2130
Gary Kuwabara
Director, Western Regional Office
(916)

29. Questions