FY 2009 Port Security Grant Program

1. FY 2009 Port Security Grant Program United States Coast Guard and FEMA Grant Programs Directorate Area Maritime Security Committee Briefing November - December 2008

2. Agenda • Overview • FY 2009 PSGP • Application Process • Fiduciary Agent Program • Additional Guidance

3. Overview: FEMA Grant Programs • Homeland Security Grant Program (HSGP) • State Homeland Security Program (SHSP) • Urban Areas Security Initiative (UASI) • Metropolitan Medical Response System (MMRS) • Citizen Corps Program (CCP) • Critical Infrastructure Security Programs • Intercity Bus Security Grant Program (IBSGP) • Port Security Grant Program (PSGP) • Transit Security Grant Program (TSGP) • Freight Rail Security Grant Program • Inter Passenger Rail • Trucking Security Program (TSP)

4. Overview: Port Security Grant Program • Grant programs strengthen the security of our nation’s infrastructure through: • Laws, strategy documents, plans • Policy directives: • National Preparedness Guidelines • National Infrastructure Protection Plan • National Strategy for Transportation Security • National Strategy for Maritime Security • Coordination is facilitated through: • FEMA – Grant Programs Directorate • Transportation Security Administration • United States Coast Guard • Department of Transportation (MARAD) • Industry

5. FY 2009 PSGP: Available Funding

6. FY 2009 PSGP: Key Updates • Cost Sharing Requirement • Non-Federal share can be met by a cash or an in-kind match (excluding construction activities for which non-Federal share must be a cash match) • In-kind match must consist of eligible costs (i.e. purchase price of allowable contracts, equipment) and occur during the performance period of the award • Examples of cost sharing requirement: • Grantee is modifying an existing building into a Maritime Security Operation Center and installing a back-up generator previously purchased by the grantee. Current value of the generator may be used as meeting the in-kind match. • Grantee is utilizing in-house staff for planning and engineering design to develop the Maritime Security Operation Center noted above. Salary for the time used for planning and engineering may be used as in-kind match. • Grantee project includes the purchase of a prevention/response vessel and equipping the vessel with a side scan sonar that the grantee owns. The side scan sonar could meet the in-kind match requirement. • See FEMA 44 CFR §13.24 for further guidance

7. FY 2009 PSGP: Key Updates • Construction • Construction and renovation projects allowable under FY 2009 PSGP: • Maritime Domain Awareness Fusion Centers • Maritime Security Operations Centers • Port Security Operations Centers • Port Security Emergency Communications Centers • Any other building or physical facility that enhances access control to the port area • Costs may not exceed the greater of $1,000,000 per project or such greater amount as may be approved by the Secretary, which may not exceed 10 percent of the total amount of the grant, as stated in the SAFE Port Act • Cannot use FY 2009 PSGP funds for construction projects that are eligible for funding under other Federal grant programs. PSGP funds may only be used for construction activities directly related to port security enhancements. • Subject to cash-match cost share requirement • Must undergo EHP review • Must comply with Davis-Bacon Act

8. FY 2009 PSGP: Key Updates • Explosive Detection Canine Team Operational Packages (OPacks) • Available for funding only to eligible Group I, Group II (excluding new Group II port areas that elect to opt out of Group II) and ferry systems • One time allowance • May apply for up to $450,000 ($150,000/year for 3 years) • At end of grant period (36 months) grantee responsible for maintaining • May not be used to fund drug detection and apprehension technique training • Can only be used for new capabilities/programs and cannot be used to pay for existing capabilities/programs (e.g. canine teams) already supported by port area or system

9. FY 2009 PSGP: Funding Priorities • Enhancing Maritime Domain Awareness (MDA) MDA is the critical enabler that allows leaders at all levels to make effective decisions and act early against threats to the security of the Nation’s seaports. In support of the National Strategy for Maritime Security, port areas should seek to enhance their MDA through projects that address knowledge capabilities within the maritime domain. This could include access control/standardized credentialing, command and control, communications, and enhanced intelligence sharing and analysis. • Enhancing Improvised Explosive Device (IED) and Weapons of Mass Destruction (WMD) prevention, protection, response and recovery capabilities Port areas should seek to enhance their capabilities to prevent, detect, respond to and recover from terrorist attacks employing IEDs, WMDs and other non-conventional weapons. Of particular concern in the port environment are attacks that employ IEDs delivered via small craft (similar to the attack on the USS Cole), by underwater swimmers (such as underwater mines) or on ferries (both passenger and vehicle).

10. FY 2009 PSGP: Funding Priorities • Training and Exercises Port areas should first seek to ensure that appropriate capabilities exist among staff and managers, and then regularly test these capabilities through emergency drills and exercises. Emergency drills and exercises (such as those in the Transportation Security Administration (TSA) Port Security Exercise Training Program) test operational protocols that would be implemented in the event of a terrorist attack. The efforts include live situational exercises involving various threat and disaster scenarios, table-top exercises, and methods for implementing lessons learned. • Efforts supporting implementation of the Transportation Worker Identification Credential (TWIC) The TWIC is a congressionally mandated security program through which DHS will conduct appropriate background investigations and issue biometrically enabled and secure identification cards for individuals requiring unescorted access to U.S. port facilities. Regulations outlining the initial phase of this program (card issuance) were issued by TSA in cooperation with the Coast Guard in 72 Federal Register 3492 (January 25, 2007).

11. FY 2009 PSGP: Ferry Priorities • Development and enhancement of capabilities to prevent, detect, respond to and recover from terrorist attacks employing improvised explosive devices (IEDs) and vehicle borne improvised explosive devices (VBIEDs) • Mitigation of other high consequence risks identified through individual ferry system risk assessments • Use of canine teams at the embarkation and exit points of a system, as well as during passage • Innovative utilization of mobile technology for prevention and detection of explosives or other threats and hazards

12. FY 2009 PSGP: Ferry Priorities • Development and enhancement of physical and perimeter security capabilities to deny access around maintenance facilities, dry docks, and piers • Development of emergency preparedness and response capabilities in the event of a ferry being used as a weapon to inflict damage on critical infrastructure • Development and enhancement of training and awareness among ferry operators and employees • Public awareness training

13. 147 91 5 FY 2009 PSGP: Eligibility • SAFE Port Act states all entities covered by an AMSP may submit an application for consideration of funding • Congress specifically directed DHS to apply these funds to the highest risk ports • In support of this, a total of 147 critical port areas representing approximately 95 percent of the foreign waterborne commerce of the United States, have been identified • These ports are aggregated into 91 discreet port funding areas Critical Ports Port Areas Pools of Funds

14. FY 2009 PSGP: Eligibility • Entities encouraged to apply: • Owners or operators of federally regulated terminals, facilities, U.S. inspected passenger vessels or ferries as defined in the Maritime Transportation Security Act (MTSA) and Title 33 of the Code of Federal Regulations (CFR) Parts 101, 104, 105, and 106 • Port authorities or other State and local agencies that are required to provide security services to eligible Ferry System applicants (MTSA regulated facilities) pursuant to an AMSP or a Facility or Vessel Security Plan • Consortia composed of local river organizations, ports and terminal associations, and other local stakeholder groups representing federally regulated ports, terminals, U.S. inspected passenger vessels or ferries that are required to provide security services to federally regulated facilities in accordance with an AMSP or a Facility or Vessel Security Plan • Group I and II Fiduciary Agents (including newly identified Group II port areas who choose to begin the FA process) • Ferry Systems identified in Table 3 of guidance

15. FY 2009 PSGP: Eligibility • All PSGP applicants must be fully compliant with relevant Maritime Security Regulations (33 CFR Parts 101-106) • Any open or outstanding Notice of Violation (NOV), as of the grant application submission deadline date, which has been issued to an applicant, and the applicant has (1) failed to pay within 45 days of receipt; (2) failed to decline the NOV within 45 days of receipt (in which case a finding of default will be entered by the Coast Guard in accordance with 33 CFR § 1.07-11(f)(2)); or (3) the applicant has appealed the NOV as provided for in 33 CFR § 1.07-70 and is in receipt of a final appeal decision from Commandant, U.S. Coast Guard, as described in 33 CFR § 1.07-75, and has failed to come into compliance with the final adjudication within the timelines noted therein, will not be allowed to make application for PSGP

16. FY 2009 PSGP: Eligibility • Each Group I and Group II port area has been designated specific amount of money based on FY 2009 risk analysis • Existing Group I and II Port Areas • Option of continuing with current FA or selecting new FA • If changing FA, designated COTP must certify in writing to the FEMA Program Office via USCG Headquarters (CG-5142) as to new selection • Certifications must be submitted 30 days prior to the application due date (if no certification of change is submitted, FY 08 FA will remain) • New Group II Port Areas • Option of selecting an FA and beginning FA process, or opting out of FA process • If opting out of FA process, individual eligible entities apply directly to FEMA and applicants comply with all requirements of Group III and All Other Port Areas • Must certify in writing to FEMA Program Office via USCG Headquarters (CG-5142) which option respective port area will pursue • Certifications must be submitted NLT 30 days (12/14/08) prior to the application due date (01/13/09)

17. FY 2009 PSGP: Eligibility • Group III and All Other Port Areas • Ports not identified in Group I or II eligible to apply as a Group III or “All Other Port Areas” applicant • Compete for the funding identified in their corresponding Group • Ferry Systems • Under a fifth group, eligible ferry systems may also apply for funding • If the ferry system elects to participate and receive funds under the FY 2009 Transportation Security Grant Program the same ferry system cannot participate in the FY 2009 PSGP

18. Clarification on Ferry Systems • All Ferry Systems meeting the eligibility criteria outlined on page 10 of the FY 2009 Guidance are encouraged to apply • Ferry Systems identified on Page 15, Table 3 will compete for the $5,000,000 allocated to this group • All other Ferry System Applicants will apply as a Group III or All Other Port Area and compete among all applicants within the respective group for funding • For Fiscal Year 2009, ALL Ferry System Applicants will apply directly through grants.gov (including Ferry Systems listed in Table 3) • Ferry Systems that fall within a Group I or Group II Port Area and upon approval of their Port-Wide Risk Management/Mitigation Plan, future year applications will be submitted through the FA Process

19. *Completed applications must be received on Grants.gov by 11:59pm EDT, Tuesday, January 13th 2009 FY 2009 PSGP Timeline Application Period Opens FA Decision Due Date Application Due Date Announcement of Awards November 5, 2008 December 15, 2008 January 13, 2009* Late Spring 2009

20. Application Requirements • Eligible entities must apply for funding through www.grants.gov • To access application: • Select “Apply for Grants,” then “Download Application Package” • Enter CFDA number (97.056) and/or the Funding Opportunity Number (DHS-09-GPD-056-1959) • Select “Download Application Package,” and follow prompts to download application package • Complete on-line application required forms and submissions • All Applicants: • Standard Forms 424, 424A and 424B • Standard Forms 424C and 424D (if applicable – for construction) • Standard Form LLL • Group III, All Other and Ferry Applicants only: • Investment Justification • Detailed Budget • Memorandum of Understanding/Memorandum of Agreement (if applicable)

21. Application Requirements • DUNS® Number: • Applicant must provide a Dun and Bradstreet Data Universal Numbering System (DUNS) number with their application. This number is a required field within grants.gov and for CCR Registration • Organizations should verify that they have a DUNS number, or take the steps necessary to obtain one, as soon as possible • Applicants can receive a DUNS number at no cost by calling the dedicated toll-free DUNS Number request line at (866) 705-5711. • Valid Central Contractor Registry (CCR) Registration: • The application process also involves an updated and current registration by the applicant • Eligible applicants must confirm CCR registration at http://www.ccr.gov, as well as apply for funding through grants.gov.

22. Port-Wide Risk Management program that compliments urban area and state efforts Primarily a facility security focused grant program Fiduciary Agent Program and Port-Wide Risk Management Planning Process • Implementing the NIPP Risk Management Strategy is a fundamental shift of DHS’ PSGP: • This strategy will focus the security needs of port stakeholders and will provide ports with investment justifications for Federal dollars Old Focus New Focus

23. Fiduciary Agent Program • What is the Fiduciary Agent (FA)? • An entity, not an individual • Point of contact with FEMA for application/management/administration of award • Not the sole decision maker • The FA may retain up to 3% of total award to be used solely for Management and Administration (M&A) purposes associated with the PSGP award. Approved M&A costs include: • Hiring of full-time or part-time staff, contractors or consultants and M&A expenses related to pre-application submission management activities and application requirements or meeting compliance with grant reporting or data collection requirements, including data calls • Development of operating plans for information collections and processing necessary to respond to DHS data calls • Travel expenses

24. Fiduciary Agent Program • What does the FA do? • Applies for award via Grants.gov • Accepts award • Registers in PARS • Submits deliverables to Portal (CONOPS, Draft Plan, Final Plan, IJs) • Maintains an official grant folder to keep all grant related documents • Stays up-to-date on all reporting requirements including: * • Financial Status Reports (SF269s) - due quarterly • Categorical Assistance Progress Reports (CAPRs) - due biannually • Sends official requests for Grant Adjustment Notices (GANs) to Program Manager* • Ensures all sub-recipients are compliant with the following: • Organizational audit requirements of OMB Circular A-133 • Audits of States, Local Governments, and Non-Profit Organizations

25. Port-Wide Risk Management Planning Process • Port-Wide Risk Management Planning Process • Group I and Group II port areas identified in FY 2007 Supplemental PSGP or FY 2008 PSGP that remain in Group I or Group II for FY 2009 are required to continue with the Fiduciary Agent (FA) process. Those port areas which, as a result of the FY 2009 PSGP risk methodology are new to Group II have the option of selecting an FA and beginning the FA process, or opting out of the FA process. • Plan development is to be accomplished through the active engagement of ALL port partners and AMSC representatives, along with key federal, state, local, and nongovernmental entities • The plan should lay out a strategy and series of concrete actions which must be undertaken to address the prevention of, protection against, response to, and recovery from major security incidents (to include all hazard compatibility) within the port area in order to minimize the impact upon lives, property, and the economy (local, regional, national)

26. Port-Wide Risk Management Planning Process Timetable for Developing and Implementing Group I and Group II Port-Wide Plans * Extensions may be considered on a case-by-case basis ** Any projects eligible for grant funding must be certified by the COTP as having a port wide benefit

27. Port-Wide Risk Management Planning Process • Concept of Operations (CONOPS) • 2 pages in length • 2 part focus • 1. Risk Management/Mitigation • 2. Business Operations/Resumption of Trade • Primary elements: • Roles and responsibilities of key subcommittee members • Relationship of FA and AMSC • How plan will be developed (in house/contract support) • Timeline for developing and implementing plan

28. Port-Wide Risk Management Planning Process • The Plan • Complements Area Maritime Security Plans, not meant to replace them • Provides a 5-year investment strategy and establishes a forward-looking risk management approach for non-federal segments of the port community • Identifies port wide gaps in security, authorities, capabilities, capacities, competences and partnerships across the security continuum of awareness, prevention, protection, response and recovery • Port specific risk based upon MSRAM results and Area Maritime Security preparedness activities • Links to other Federal plans (National Strategy for Maritime Security, National Infrastructure Protection Plan, Maritime Incident Response Plan) • Should be marked Sensitive Security Information • Not an extensive document

29. Port-Wide Risk Management Planning Process • Investment Justifications (IJs) • i.e. Projects (based on Final Plan) • Not required from the FA until Final Plan has been approved • Non-federal cost share requirement is 25% percent of the total project cost. Because the FA represents and serves on behalf of the AMSC, a public sector entity, the public cost share requirement (25%) is applicable. • Any project submitted via the Fiduciary Agent costing less than $25,000.00 must reflect the 25% cost share requirement.

30. Additional Guidance • M&A • Costs associated with managing the award i.e. Personnel, Office Supplies, Travel, Conferences, Meetings • Examples: Submitting progress and financial reports, coordinating with FEMA/PSGP Program Analyst, travel to PSGP related events (such FA Symposium) • Repair and Replacement • Consistent with Information Bulletin No. 293 • Must be used to support PSGP priorities • Must have approval from Program Analyst prior to work/purchase • Examples: Batteries, sensors, fencing, access control systems

31. Additional Guidance • Security Operational and Maintenance Costs • Operational costs include costs for personnel (i.e. over time and back-fill for personnel participating in training and exercises). • Maintenance costs include maintenance agreements purchased for equipment funded by PSGP. PSGP funded maintenance contracts are only allowable for the period of performance of the award • Examples: Acquisition, Operation, and Maintenance of Monitoring and Recording, Security Gates and Fencing, Marine Barriers, Security Vessels • Unallowable Costs • See page 46 of the PSGP Guidance and Application Kit • No costs incurred before or after the period of performance will be funded by PSGP funds • Matching requirements are subject to the same restrictions as the Federal share of the projects

32. Program Office Contact Information

33. VA 12 HI 8 PSGP Program Analyst State Assignments (Effective August 2008) Kathleen Steinle Kathleen.Steinle@dhs.gov Venita Lane Venita.Lane@dhs.gov Duane Davis Duane.Davis@dhs.gov Jackie Jackson Jacqueline.Jackson1@dhs.gov Alex Berberian Alexander.Berberian@dhs.gov AK 16 WA 26 I ME 15 X VT MT N/A ND N/A NH 5 I MN 13 OR 10 VIII II WI 10 MA 19 NY 20 ID N/A SD N/A MI 10 RI 10 WY N/A CT 13 PA 31 V IA N/A NJ 11 NE N/A III NV N/A OH 8 VII IN 8 IL 7 IX DE 9 UT N/A NY/NJ 47 WV WV 4 CO N/A MD 8 KS N/A MO 7 CA 46 KY 12 CT/NY 9 NC 14 TN 10 IL/IN 1 AZ N/A OK 4 IV SC 12 AR 2 NM N/A GA 13 VI AL 11 MS 12 TX 90 LA 66 DC: Puerto Rico: 7 FL 39 Guam: 2 Northern Mariana Islands: 2 American Samoa: Virgin Island: 5 Tier I Port Area

34. Questions?