The Defense Industry Adjustment Program

Office of Economic Adjustment, U.S. Department of Defense Arlington, Virginia

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Office of Economic Adjustment

• Field activity established under Secretary of Defense– Founded in 1961– Staff of 21 Project Managers– Western Regional Office

• Created to help state and local governments plan and carry out community adjustment and diversification programs in response to DoD actions, including:

Personnel reductions Industry/contractor reductionsBase closures or realignmentsBase expansionsOperational/training impacts

• Legacy as a result of providing technical and financial assistance to over 500 defense-impacted communities

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DIA Background • Not BRAC• 10 USC §2391• Catalog of Federal Domestic Assistance (www.cfda.gov)

– 12.611 - Community Economic Adjustment Assistance for Reductions in Defense Industry Employment

– 12.614 - Community Economic Adjustment Assistance for Advance Planning and Economic Diversification

– 12.617 - Economic Adjustment Assistance for State Governments

• DIA Program enhanced for FY14-18– $198M available: normal program level: $12M/year– FY-14-18 Enhancement: $138M

• FY 14 augmentation: $36.6M• FY 15 augmentation: $46.1M• FY 16 augmentation: $33.1M• FY 17 augmentation: $17.2M• FY 18 augmentation: $5M

Defense Industry Adjustment Goals

• Organize impacted communities to address local/regional economic issues– Create localized approaches to loss of defense

manufacturing

• Promote business diversification– Maintain critical defense applications– Integrate Administration’s Investing in

Manufacturing Communities Partnership– Seek commercial markets where possible

• Transition workers to new jobs or industries– Maintain and backfill existing skill base– Up-skill or re-skill– Credentials that are portable and nationally

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Three Step Process

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Typical OEA Roles

• Organize “OneStop shop” for all Federal assistance Group Facilitation Organization/Governance consulting Scoping and Program design Economic region definition and analysis

• Plan Short-term operational plans Best practices Project Management consultation Federal grant administration assistance/consulting

• Implement Governance structure development Sustainability

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Collaboration

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Managing the Network

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Lessons Learned

• Strong and robust community partnerships

• Commitment to a shared vision

• Begin with the end in mind• Embrace change as the

potential for new opportunities

• Eliminate silo thinking and turf issues

• Innovate!

Contacts

Michael GilroyIndustry Adjustment Team LeadO: (703) 697-2081C: (703) 901-7660Email: michael.p.gilroy3.civ@mail.milWeb: www.oea.gov

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