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Colorado CHIPS Community Support Program

Program Summary

The CHIPS and Science Act is a once-in-a-generation opportunity that — along with other federal investments to spur U.S.-based production — will lead to large-scale growth of the semiconductor and advanced industry sectors across the United States.

Colorado is a leader in advanced technologies and an integral part of the global semiconductor ecosystem. In fact, Colorado–and particularly the Front Range from Fort Collins to Colorado Springs—is among a handful of places in the U.S. with a strong concentration of semiconductor manufacturing and design. A thriving local network of industry leaders and research institutions operate across segments of the value chain and enable clusters of downstream advanced industries in the state, such as aerospace, bioscience, and cleantech.

This ecosystem is primed for growth from within.

To support this growth, a core OEDIT strategy is to use this opportunity to spread development of these semiconductor and advanced industry ecosystems outside of their traditional densities in Colorado. As such, the Office has designed a suite of grants, known as the Colorado CHIPS Community Support Program, to include the following:

  • Market Study Grants
    OEDIT will provide grant funding for localities through a competitive application process to contract with a consultant to provide a market study. These studies will include a detailed analysis of the existing local industry, assets, and gaps relevant to the semiconductor and advanced industries sectors. They will help define the area's competitive positioning, value proposition, and salient opportunities for development, attraction, and retention. 
  • Implementation Grants
    OEDIT will provide grant funding for localities through a competitive application process to develop an asset or fill a gap relevant to the semiconductor and advanced industries ecosystem. 
  • Marketing Grants
    OEDIT will provide grant funding for localities through a competitive application process to support marketing and promotional activities targeted to semiconductors and advanced industries. 

Overview

Type: Three competitive grants

For: Municipal, county, or tribal governments; regional economic development organizations; or consortia led by one or more of those previously listed within the state of Colorado

Amount: Varies by grant

Application period: January to March and July to September

Special note: The first cycle of the program will include only the Market Study and Marketing Grants and will have an abbreviated application period from April 29, 2024 to May 31, 2024

OEDIT division: Global Business Development

Eligible applicants include the following within the state of Colorado:

  • Municipal Governments
  • County Governments
  • Tribal Governments
  • Regional Economic Development Organizations
  • Consortia Led by One or More of the Above Organizations

As the intent of this program is to spread development of the semiconductor and advanced industry ecosystems beyond their traditional clusters in the state, location will be a prime factor in the determination of awards. Applicants representing areas within Colorado's semiconductor core will not be considered for the Market Study and Implementation Grants, and will score low on the Location/Need criteria during evaluation of the Marketing Grants. To learn more, see the selection process section below.

The total available funding of the program is $3,750,000.

Applicants can apply for the following funding ranges:

  • Market Study: $25,000 - $50,000
  • Implementation: $100,000 - $500,000
  • Marketing: $10,000 - $25,000

The application process will run through at least four cycles, covering each half of each year for the next two years: 

Cycle 1

  • Application Window: 4/29/2024 - 5/31/2024
  • Award Decision Notification: 6/30/2024
  • Max Awards - $375,000
    • Market Study: $250,000
    • Implementation: $0
    • Marketing: $125,000

Cycle 2

  • Application Window: 7/1/2024 - 9/30/2024
  • Award Decision Notification: 11/30/2024
  • Max Awards - $1,375,000
    • Market Study: $250,000
    • Implementation: $1,000,000
    • Marketing: $125,000

Cycle 3

  • Application Window: 1/1/2025 - 3/31/2025
  • Award Decision Notification: 4/30/2025
  • Max Awards - $1,375,000
    • Market Study: $250,000
    • Implementation: $1,000,000
    • Marketing: $125,000

Cycle 4

  • Application Window: 7/1/2025 - 9/30/2025
  • Award Decision Notification: 11/30/2025
  • Max Awards - $675,000
    • Market Study: $0
    • Implementation: $500,000
    • Marketing: $125,000

In each subsequent cycle, funds not earmarked for awards in previous cycles will be rolled over and added to the max award amounts shown above. Should funding remain at the end of Cycle 4, additional cycles and funding amounts will be determined within two weeks of the Cycle 4 decision deadline. 

Application Process

There is one application for all three grants.

Eligible applicants will have the opportunity to select all of the grants for which they would like to be considered during the grant cycle. They may apply for one, two, or all three.

Once an applicant is awarded one type of grant, they will no longer be eligible for that specific grant in subsequent cycles, but will still be eligible for the others for which they have not been awarded. 

Application Materials

The application will have the following sections. Some information is required and some is optional. The intent of the application is to provide enough information to a group of reviewers so that they can sufficiently evaluate the potential of the project. Please keep this in mind as you proceed through the form. 

  • Pre-Application Questionnaire: At the beginning of the application, the eligibility requirements and OEDIT’s terms and conditions will be presented. In order to proceed, the applicant will need to indicate that she or he has read both, meets the eligibility requirements, and understands OEDIT’s terms and conditions. 
  • Section 1 - Applicant Background Information: This section will identify the entity applying for the grants and provide information for a point of contact throughout and after the application process.
  • Section 2 -  Economic Overview of Applying Region (Optional): This section will allow applicants to provide general economic data and information for the locality that they represent.
  • Section 3 - Grant Selection & Justification: This section will require applicants to describe the current advanced industry landscape in the area, select which grants the application is seeking, and provide a narrative on how the program will likely positively impact the area.
  • Section 4 - Market Study Grant: This section requires applicants to provide detailed information on the market study that they intend to fund through the grant. If applicants do not intend to apply for the Market Study Grant, the application will allow them to skip this section. The information includes the requested funding total, the intended components of the study, cost breakdown, timelines and milestones, and plans for use, along with optional information on a contractor, if one has already been identified.
  • Section 5 - Implementation Grant: This section requires applicants to provide detailed information on the project that they intend to fund through the grant. If applicants do not intend to apply for the Implementation Grant, the application will allow them to skip this section. The information includes the requested funding total, a project description, cost breakdown, timelines and milestones, expected economic impact, and resolutions from all affected localities, along with optional information on contractors, if they have already been identified.
  • Section 6 - Marketing Grant: This section requires applicants to provide detailed information on the marketing activities that they intend to fund through the grant. If applicants do not intend to apply for the Marketing Grant, the application will allow them to skip this section. The information includes the requested funding total, a marketing plan, cost breakdown, timelines and milestones, and plans for use, along with optional information on contractors, if they have already been identified.

This section details the expected deliverables of the grant funding.

Market Study Grant

The deliverable for the Market Study Grant will be a study of the local area concerning its assets and gaps relevant for development of a strong semiconductor or advanced industry cluster. While not mandatory, studies should consider a SWOT analysis framework as a means of delivering insights to the applicant community. Contractors should be encouraged to be detailed and creative in their assessment of the community.
At a minimum, the studies must include the following 7 sections:

  1. Executive Summary
  2. Local Economic Characteristics
    1. Population
    2. 5 Year Population Growth
    3. Working Age Population
    4. Labor Force
    5. Unemployment Rate
    6. Gross Domestic Product (GDP)
    7. Major Industries
    8. Major Employers
  3. Detailed Inventory of Community Assets Relevant to Semiconductors/Advanced Industries
    1. Infrastructure
    2. Natural Resources
    3. Programs
    4. Education
    5. Institutions
    6. Companies
    7. Other
  4. Map of the Physical Community Assets Relevant to Semiconductors/Advanced Industries
  5. Discussion of Gaps that May Have Hindered Semiconductor/Advanced Industry Development 
  6. Recommendations for Next Steps and Potential Investments
  7. Alignment with Previous Plans/Studies if Existing

Implementation Grant

The deliverable for the Implementation Grant will be variable based on the applicant’s plan. Nonetheless, the outcome of the funds’ use should be an investment that either develops an asset or fills a gap to improve the community’s competitiveness for semiconductor and advanced industries operations.

Communities are encouraged to be creative in the selection of projects for this grant, and to keep in mind that it will be their responsibility to deliver the vision and value proposition of the project to the evaluation committee through the application.

Projects should consider the following areas of focus:

  • Infrastructure and Utilities
  • Education and Workforce Development
  • Research and Innovation
  • Business Incubation and Support
  • Housing and Quality of Life

Marketing Grant

The deliverable for the Marketing Grant will be variable based on the applicant’s plan. Nonetheless, the outcome of the funds’ use should be an elevation of awareness of the local community to stakeholders in the semiconductor and advanced industries outside of Colorado, by emphasizing a unique community asset that is relevant for those sectors.

This section details the allowable uses of the grant funding.

Market Study Grant

Market Study Grant funds can be used for the following expenses:

  • Contractor Personnel Reimbursable Hours
    • Design and Planning
    • Data Collection - Primary/Secondary/Tertiary
    • Data Analysis and Visualization
    • Drafting, Reporting, and Presentation
  • Other Costs
    • Survey Participant Recruitment and Incentives
    • Travel and Fieldwork Expenses
    • Consultation and Expertise Fees

Implementation Grant

Implementation Grant funds can be used for the following expenses:

  • Construction Costs (Labor, Materials, Equipment, and Contractors)
  • Land Acquisition
  • Engineering and Design Fees
  • Consulting and Project Management Fees
  • Public Outreach and Engagement
  • Curriculum Development
  • Instructional Staff
  • Facilities/Equipment/Supplies
  • Program Administration and Management
  • Monitoring and Evaluation

Implementation Grant funds cannot be used for general operating expenses or developer’s fees.

Marketing Grant

Marketing Grant funds can be used for the following expenses:

  • Contractor Personnel Reimbursable Hours or Fees
    • Creative Development
      • Graphic Design
      • Copywriting
      • Video Production
      • Photography
    • Market Research
      • Audience Segmentation
      • Competitive Analysis
      • Consumer Insights
    • Tracking and Analytics
      • Tracking and measuring KPIs
      • Analyzing metrics
      • Generating reports
    • Other Costs
      • Media Placement Fees
      • Search Engine Optimization Fees
      • Printing/Shipping Costs

Applications will be scored on the following criteria:

Location/Need
As the intent of this funding is to help distribute Colorado’s semiconductor and advanced industry operations, the location of the project is of prime importance. See Figure 1 below.

Figure 1
Location/Need Rubric Map

Colorado CHIPS Community Support Program Rubric Map

Figure 1 is the map that will be used by reviewers to assess the score for this component. The map delineates 4 distinct zones based on an analysis of occupations, industry, and population in Census Tracts throughout Colorado. These 4 distinct zones are listed and described below, in ascending priority:

  • Zone 1 - Orange - Semiconductor Core - Lowest Priority
    This will include the areas that currently contain the State’s semiconductor operations, namely Fort Collins, Longmont, Boulder, and Colorado Springs. Applicants in Zone 1 will be excluded from the Market Study and Implementation Grants. They will be able to apply for the Marketing Grants, but will earn the lowest score for this criterion.
  • Zone 2 - Red - Advanced Industry Core - Low Priority
    This zone will generally encompass the Front Range from Fort Collins through the Denver Metro Region to Colorado Springs. This zone will wholly contain Zone 1. Importantly, areas just to the east of I-25, like Frederick, Fort Lupton, and Platteville, will be on the fringe and may be considered in or out of this zone. Such distinctions will need to be discussed and determined during the review committee. In order to earn a strong score for this criterion, applicants for the Market Study and Implementation Grants from Zone 2 must demonstrate that their projects are targeted to semiconductors specifically. If not, they will earn lower scores on this criterion. Marketing Grants will be less restrictive in scoring.
  • Zone 3 - Blue - Population Centers with Emerging Advanced Industry Clusters - High Priority
    This is an important zone for the program. It will include areas that have a critical mass of population and some advanced industry density, but are outside of the Front Range Corridor proper. This is a prime area for extending Colorado’s semiconductor and advanced industry footprint. Pueblo, Greeley, Grand Junction, Montrose, and Durango will make up the bulk of this zone. This zone will score highly for all of the grants. 
  • Zone 4 - No Color - Rural with Limited Advanced Industry - Highest Priority
    This zone will encompass all of Colorado not included in Zones 1 through 3. This area has the highest need and largest potential impact. Generally, applicants from this zone will score highest in the grants, though discretion will still be needed. 

Project Strength/Readiness
This is an evaluation of the provided materials with regard to the level of detail, the caliber of identified contractors, and the readiness of the project. Priority will be given to those that have provided detailed plans, identified high-quality contractors, and have already taken preliminary steps so as to be ready to execute against the plans right away. 

Potential Impact
This is an evaluation of the potential outcome of the project. Reviewers should take into account all information provided to make this determination, with a particular focus on the Project Information. For the Market Study Grant, reviewers will consider the intended content of the study and information provided on existing economic plans or strategies. For the Marketing Grants, reviewers will consider the intended marketing plan, including the target audience, geographic reach, and other specifics. For the Implementation Grant, which will be the most variable in deliverables and project outcomes, reviewers will rely on the project descriptions. For example, an Implementation Grant that seeks to renovate a brownfield light industrial facility into Class 10 cleanroom space will be rated more highly than one that seeks to develop a roundabout in a residential area. Reviewers will also consider whether the application is seeking multiple of the grants (or has already been awarded another grant) and how well the specific application components are aligned.

For each of these criteria, the application will be rated from 0 to 5:

  • 5 – Excellent: The applicant has included all of the required information and has made a very convincing argument in support of the criterion being scored.
  • 4 – Above Average: The applicant has included all of the required information and has made a reasonable argument in support of the criterion being scored.
  • 3 – Good: The applicant has included most of the required information and has made a fair argument in support of the criterion being scored.
  • 2 – Fair: The applicant has included most of the required information but has not made a fair argument in support of the criterion being scored.
  • 1 – Poor: The applicant has not included enough of the required information to make a fair argument in support of the criterion being scored.
  • 0 – Nothing Provided/Not Eligible: The applicant neglected to include any relevant information or they were ineligible for the specific grant.

And each criterion will have a different weight for each specific grant, shown in Table 1 below:

Table 1
Criteria Weights by Grant

eValuation criteriamarket studyimplementationmarketing
Location/Need60%35%40%

Project Strength/Readiness

25%25%25%

Potential Impact

15%40%35%
Total100%100%100%

An evaluation committee will review each application independently before meeting as a group. During the committee review, the independent assessments will be compared and discussed, and the committee will come to consensus on the awards.

Successful applicants will be invited to enter into a grant agreement with OEDIT that will codify timelines/milestones of the project and establish mechanisms of payment. Only expenses that occur after the grant execution date will be eligible for reimbursement, regardless of grant.

The majority of funding will be distributed through reimbursement requests. These requests must be submitted within 30 days of the beginning of each quarter, and cover the expenses of the previous quarter:

  • April 1 - to request reimbursement of expenses incurred in Q1 (January 1 through March 31)
  • July 1 - expenses from Q2
  • September 1 - Q3
  • January 1 - Q4

All funding from the Market Study Grant and Marketing Grant will follow the above reimbursement process and deadlines.

Implementation Grants will use a schedule that consists of an advanced payment, interim payments, and final payment, to be included in the grant agreement.

  • Advance Payment: Initial advance payment paid following the execution of the grant agreement. This amount must be spent down prior to submitting interim payment requests. This is 10% of the award amount. 
  • Interim Payments: Interim payments must be requested by the grantee. This is 85% of the award amount and will follow the reimbursement process discussed at the beginning of this section. 
  • Final Payment: Final payment paid following the receipt of the Final Report (see X. Reporting). This is 5% of the award amount.

Each grant within the program will include quarterly, annual, and final reports. Each report will include the following information:

  • Progress on Obligations Outlined in the Grant Agreement
  • Analysis of the Results and Findings from the Work Completed
  • Analysis of any Technical Difficulties and Errors
  • Planned Next Steps
  • Use of Grant Funds Outlined in the Grant Agreement

Quarterly Reports

Quarterly reports must be submitted within 15 days of the beginning of each quarter during the grant agreement period, and cover the activities of the previous quarter:

  • April 1 - details activities of Q1
  • July 1 - Q2
  • September 1 - No quarterly report, replaced by annual
  • January 1 - Q4

Annual Reports

Annual reports must be submitted within 15 days of the beginning of Q4 (September 1) and will cover the activities of the previous year. The duration of this reporting will differ between the three grants:

  • Market Study Grant - one year after the conclusion of the grant
  • Implementation Grant - five years after the conclusion of the grant
  • Marketing Grant - two years after the conclusion of the grant

Final Report

The final report will be due within 90 days of the grant agreement’s expiration date and summarize the full term of the project. The Final Report for the Market Study Grant must also include a copy of the study itself.

Rejected applications may appeal the decision through an appeals process. The rejection notice email will include an invitation to file the appeal, along with a link to a Google Form application. The application will only include a few fields for identification and an attestation stating the intent to formally appeal.

This application must be filed within 15 days of receipt of the rejection notice.

The formal appeal will trigger a review of the decision by OEDIT’s Purchasing and Contracts Director. The Director will have 15 days from the receipt of the formal appeal to determine whether the award rejection aligned with the processes laid out in this document (and was, thereby, fair and impartial) and to inform the appeal requestor of the determination.

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