Grant Applications Must Be Received by April 16, 2001

Grant Application

Kiln Drying Facilities
USDA Forest Service
Alaska Region /

Grant Applications Must be Received by – April 16, 2001

Background

The USDA Forest Service is accepting grant applications for cost-share kiln-drying facilities in southeast and south-central Alaska.

Eligible Applicants and Facilities

Eligible applicants are those entities capable of developing and operating cost-share kiln-drying facilities. Funding consideration will be given to new or upgraded facilities[1] such as:

Stacking and Unstacking Equipment

Pre-dryers

Planers

Dry Lumber Protection Facilities

Dry Kilns

Air Drying Sheds

Project Area & Timeline

Project area includes southeast and south-central (generally south of the Alaska Mountain Range) Alaska. Grant applications will be considered for projects that require less than two years to complete. Applicants should assume funds will be available in June 2001.

Funding Available

The USDA Forest Service anticipates having approximately $2,000,000 available for award. Typical grants will be awarded up to $800,000. This program is for cost-share facilities, the Federal contribution will not exceed 80% of the total project cost. Generally, grant funds will be allocated on a reimbursable basis. Applicants will expend funds and are reimbursed periodically for the USDA Forest Service portion of the expenditures.

Further Information and Grant

Contact: /

Alan Vandiver

Dan Parrent

Mailing Address: / USDA Forest Service
3301 ‘C’ Street, Suite 522
Anchorage, AK 99503 / Wood Products Development Service
204 Siginaka Way
Sitka, AK 99835
Phone: / 907-271-2550 / 907-747-5688
Fax: / 907-271-2897 / 907-747-4331
E-Mail: / /

Grant applications can be requested from Cheryl Gargrave at (907) 271-2833 or downloaded from the following website: .

[Insert information electronically, manually, or on separate sheet of paper using the same format.]

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Section A

General Information

Applicant:______

Company Name:______

Contact:______

Mailing Address:______

______

E-mail Address:______

Phone:______

FAX Number:______

Southeast Alaska Facility Location:______

South-central Alaska Facility Location:______

Certification:

To the best of my knowledge, the representations in this application are true.

______

Signature of person authorized to sign on behalf of the applicant

______ / ______
Printed Name and Title / Date

Rating Criteria:

Two primary criteria will be used to rate the applications: Project Impact and Financial Package. Project Impact is covered in Section B of the application. This section will be rated on such items as dry kiln capacity and jobs created. The higher the project impacts, the higher the rating. The Financial Package is covered in Section C of the application. Proposals will be rated on such items as economic feasibility and the amount of the applicant’s cost-share. The stronger the financial package, the higher the rating. Each criterion will be rated with a maximum of 50 points. An evaluation panel will review all applications and rate them based on the criterion. It is very important to read the entire application and include detailed narratives. The narratives should help the panel give fair consideration to each application.

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Section B

[Continued on page 4]

Project Impact

1. Applicant's currentannual lumber production: softwood: ______(mbf) hardwood: ______(mbf)

2. As a result of project implementation, would total annual production be expected to increase? Yes____ No____

 If yes, indicate expectedannual lumber production: softwood: ______(mbf) hardwood:______(mbf)

3. Does the applicant currently have one or more dry kilns? Yes____ No____

 If yes, specify number of drying chambers and nominal capacity of each:______

 If yes, indicate total current annual dry softwood production: ______(mbf) and total current annual dry hardwood production: ______(mbf)

4. Does this project call for a first kiln, additional kiln(s) or no kiln(s)?______

 If this project calls for kiln(s), specify number of drying chambers and nominal capacity of each chamber:

______

 If this is a first kiln or additional kiln(s), specify the total expected dry lumber production on an annual basis (current production, if any, plus additional production): softwood: ______(mbf), hardwood: ______(mbf)

5.Complete the following table indicating total annual estimates of dry lumber production by product category (of your own choosing). Indicate current total dry lumber production, if any, and expected total dry lumber production upon full project implementation. (Est. = estimated)

Dry lumber product / Est. volume (mbf/yr) / Est. unit price ($/mbf) / Est. annual sales ($)
Current / Expected / Current / Expected
eg. sftwd. dimension lumber / 50 / 100 / 700 / $35,000 / $70,000

(Section B continued on next page)

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6.Upon full project implementation, estimate total annual sales ($) from dry lumber products: $______

7.Upon full project implementation, estimate total annual sales ($) from alllumber products: $______

8.Current number of employees (including yourself): Full time: ______Part time or seasonal: ______Total annual payroll: $______

9.Number of jobs expected to be created: Full time: ______Part time or seasonal: ______Additional annual payroll: $______

10.Will any jobs be lost as a result of improved efficiency? If so, explain:

______

11.Project Impact Narrative:

Describe the project. What facilities would be installed or constructed? When would the project begin? If a capital project, list the feasibility, marketing, engineering, design or other technical studies. If the project requires site control, attach a copy of the deed, lease or easement. If permits are required, list the permits, permitting agency and status of applications. Is this project dependent on other activities or action? If yes, discuss. Please list as much detail as necessary for the evaluation panel to rate the project impact.

12.Project Related Narrative:

Describe existing facilities and how they relate to the proposed project. This information will be used, by the evaluation panel, to put the proposed project in context with existing facilities. Does the proposed project complement existing facilities and/or make them more efficient? Will the proposed project add value to existing products?

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Section C

[Continued page 6 - 8]

Financial Package

Grant proposals can include two different types of facilities: Non-Construction Facilities and Construction Facilities. Non-Construction Facilities are defined as machinery and equipment such as stacking equipment, planers etc. Construction Facilities include real property such as air-drying sheds and stationary dry kilns. Dry kilns that may be readily moved are generally considered equipment while stationary dry kilns are considered a construction facility. Complete a separate table for each eligible facility, add additional tables if necessary. Only complete tables where the applicant is seeking Federal Dollars. See Attachment B for category information that should be included in the tables and narratives. The criteria for Applicant In-Kind or Applicant Cash are described in Attachment C. The criteria for Other Sources may include such items as grants from private organizations or State government.

Facility A: Project Budget – Non Construction Facility

Facility Description: examples - stacking equipment, planer______

Category / Federal Dollars
$$$ / Applicant
In-Kind
$$$ / Applicant
Cash
$$$ / Other Sources
$$$
Personnel
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Other
Facility A Total

Facility A Narrative:

______

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Facility B: Project Budget – Non Construction Facility

Facility Description:examples - stacking equipment, planer______

Category / Federal Dollars
$$$ / Applicant
In-Kind
$$$ / Applicant
Cash
$$$ / Other Sources
$$$
Personnel
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Other
Facility B Total

Facility B Narrative:

______

Facility C: Project Budget – Construction Facility

Facility Description: examples - drying shed, pre-dryer______

Category / Federal Dollars
$$$ / Applicant
In-Kind
$$$ / Applicant
Cash
$$$ / Other Sources
$$$
Architectural & engineering fees
Project inspection fees
Construction
Equipment
Miscellaneous
Facility C Total

Facility C Narrative:

______

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Facility D: Project Budget – Construction Facility

Facility Description:_examples - drying shed, pre-dryer______

Facility D Narrative:

______

Facility Budget Summary

Facility Type / Federal Dollars
$$$ / Applicant
In-Kind
$$$ / Applicant
Cash
$$$ / Other Sources
$$$
Facility A
Facility B
Facility C
Facility D
Facility Totals

Cost Share Summary

Total Federal Dollars / $______

Total Applicant In-Kind

/ $______

Total Applicant Cash

/ $______

Total Other Sources

/ $______
Total Project Cost / $______

Federal Dollars_____%

(Total Federal Dollars divided by Total Project Cost times 100; Federal Dollars must not exceed 80%)

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Financial Package Narrative:

Describe the financial support for the project.

What are the secured funds? Have you demonstrated that the project is economically feasible? How will the Operation and Maintenance costs be addressed? If a Capital project, do you have site control and documentation?

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Submittal Instructions

Complete Section A - General Information. Provide signature for certification.
Complete Section B – Project Impact.
Complete Section C – Financial Package.
If the grant is a capital project, include, as appropriate, documentation of permits, site control (deeds, easements, lease) etc.
Include documentation of financial support (cash or in-kind match).
Include four copies of the grant application.
FAX or electronic transmitted proposals will not be accepted.
Grant applications must be received by April 16, 2001.
Grant applications should be mailed to:

USDA Forest Service

State and Private Forestry

Attn: Dry-Kiln Facilities Grants

3301 ‘C’ Street, Suite 522

Anchorage, AK 99503

These funds are being made available by P.L. 106-291 which reads "the conference agreement also includes $2,000,000 to cost-share kiln-drying facilities in southeast and south-central Alaska".

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternate means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity employer."

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Attachment A

Eligible Facilities Descriptions

Stacking and unstacking equipment. Stacking equipment is equipment/machinery used to create uniform packs of lumber, each course (or layer) of which is separated from those above or below by a layer of "stickers" (stacking sticks, roughly 3/4" thick and 1 1/2" to 2" wide) spaced 12" to 24" apart, uniformly. The purpose of such pack construction is to foster good air circulation through the pack and accommodate drying of the lumber. Unstacking equipment allows for the automated removal of the stickers and assembly of dried and/or dried and planed lumber into finished packs.

Air-drying sheds. In its simplest form, an air-drying shed might amount to little more than an open-sided pole building with a good roof (and overhangs). The ground may be native soil, gravel, rock fill or poured concrete. Somewhat more advanced designs may incorporate open-weave fabric or latticework on the windward side (applicable in areas of high winds and warm temperatures), while others may incorporate fans to promote drying.

Pre-dryers are low temperature (75o to 100oF) dryers used to dry lumber to average moisture content of 25 to 30 percent, prior to drying the lumber to final moisture content in a dry kiln. A pre-dryer may appear to be little more than a warehouse, but the addition of heat and the control of humidity (usually through venting) make them a dryer.

Dry kilns. Dry kilns come in a variety of sizes and drying methods. A kiln is basically a tightly sealed, well-insulated chamber where lumber is heated and dried under controlled conditions of temperature and relative humidity. There are a variety of kiln drying systems including conventional steam kilns, direct-fired kilns, hot water/hot oil kilns, dehumidification kilns, radio frequency (RF) kilns, vacuum kilns, and solar kilns.

Dry lumber protection facilities. It does little good to kiln dry lumber if, upon removal from the kiln, the lumber will be exposed to the elements. At the very least, dry lumber must be stored under cover, although over time even that will prove insufficient. Some sort of warehousing would be desirable (see discussion of air drying sheds and pre-dryers), as would the ability to wrap lumber in some sort of protective plastic wrapper.

Planers. In order for dimension (construction) lumber to be accepted in the broad market, it must be planed (surfaced on 4 sides), as well as graded (grade stamped). Though technically not a “drying” operation, the inability to plane could seriously hamper an operator's ability to market products. "Planers" come in a variety of configurations (single head, double head, 3-sided, 4-sided, etc.) and may be referred to by different names (planer, moulder, planer/moulder, matcher, planer/matcher, timber-sizer and even "sticker" machine (not to be confused with stickering equipment).

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Attachment B

Budget Category Information

The budget category information is described by the two different types of tables: Non-Construction Facility and Construction Facility. Include pertinent information in the narratives. Explain the source of in-kind, cash match and other match commitments and provide documentation.

Non-Construction Facility

Personnel: Identify job titles and responsibilities. Detail how costs were determined and what is included.

Fringe Benefits: Identify and explain how the fringe benefits support the project.

Travel: Identify who is expected to travel, for what purpose and how the travel supports the project.

Equipment: Identify and explain how the equipment supports the project. Equipment in excess of $5,000 triggers federal ownership retention requirements.

Supplies: Identify and explain how the supplies support the project, why it is needed and how the cost estimate was derived.

Contractual: Identify and explain how the contractual costs support the project, why they are needed and how the cost estimate was derived.

Other: Describe how other costs support the project.

Construction Facility

Architectural and Engineering Fees: Enter estimated basic engineering fees related to construction, describe types of fees in narrative.

Project Inspection Fees: Estimated engineering inspection costs, describe types of fees in narrative.

Construction: Identify and describe construction costs including salaries, subcontracts etc.

Equipment: Identify and describe office, shop, safety equipment, etc. to be used at the facility, if such costs are not included in the construction contract.

Miscellaneous: Identify and describe miscellaneous supplies and how they support the project.

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Attachment C

In-kind or Cash Matching Information

The following are some of the criteria for cash and third party in-kind contributions:

All contributions must be verifiable from the recipient’s records. Eligible facilities such as existing planers, dry kilns etc. may be legitimate in-kind contributions if the values are verified from materials submitted with the applicants grant package.
All contributions must not be included as contributions for any other federally assisted project or program.
All contributions must be necessary and reasonable for proper and efficient accomplishment of project or program objectives.
The cost of land acquisition or site clearing is not a legitimate in-kind contribution.
If the facilities are operational and the applicant no longer has a need for the real property, the applicant may be directed to sell the property and pay the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation. Real Property means land improvements, structures and appurtenances thereto, but excludes movable machinery and equipment.

Please note: Those entities selected in this pre-award process will be required to complete an application for federal assistance package. Federal requirements apply to different types of organizations that are awarded grants and cooperative agreements by the Forest Service. Requirements include:

1)Federal Cost Principles: OMB Circular A-21 (Educational); OMB Circular A-122 (Nonprofit); OMB Circular A-87 (State and local governments); FAR, Part 31 (Profit organizations).

2)Federal Management Standards/USDA Regs: OMB Circular A-110/7 CFR 3019 (Profit, educational, nonprofit); OMB Circular A-102/7 CFR 3016 (State and local governments).

3)Federal Audit Requirements/USDA Regs: OMB Circular A-133/7 CFR 3052 (Educational, nonprofit, State and local governments); Cognizant agency (profit organizations).

These documents should be reviewed when filling out this application package. They can be found at the following websites:

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[1]See Attachment A for detailed definitions.