The Office of Economic Adjustment (OEA) was established in 1961 to help communities plan for and adjust to reductions in defense spending. The OEA provides technical and financial assistance to communities impacted by base closures, personnel reductions, and other Department of Defense actions. Through its Defense Industry Adjustment Program, the OEA works with impacted communities to organize a response, develop economic plans, and implement strategies to promote business diversification and transition defense workers to new jobs. The OEA takes a three-step approach of organizing the community, planning an economic strategy, and implementing the plans.

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
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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. Questions

11. 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