1. The Defense Industry Adjustment Program
Office of Economic Adjustment, U.S. Department of Defense Arlington, Virginia

2. 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:
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 Personnel reductions
 Industry/contractor reductions
 Base closures or realignments
 Base expansions
 Operational/training impacts
• Legacy as a result of providing technical and financial
assistance to over 500 defense-impacted communities

3. 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
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• FY 14 augmentation: $36.6M
• FY 15 augmentation: $46.1M
• FY 16 augmentation: $33.1M
• FY 17 augmentation: $17.2M
• FY 18 augmentation: $5M

4. 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
recognized
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5. Three Step Process
5

6. Typical OEA Roles
• Organize
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 “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

7. Collaboration
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8. Managing the Network
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9. 9
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!

10. Contacts
Michael Gilroy
Industry Adjustment Team Lead
O: (703) 697-2081
C: (703) 901-7660
Email: michael.p.gilroy3.civ@mail.mil
Web: www.oea.gov
www.oea.gov