EXHIBIT A FEDERAL AWARD 25A60IN000010-01-01.PDF
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Summary Federal Award Financial Information 19. Budget Period Start Date - End Date 20. Total Amount of Federal Funds Obligated by this Action 20a. Direct Cost Amount 20b. Indirect Cost Amount 21. Authorized Carryover 22. Offset 23. Total Amount of Federal Funds Obligated this budget period 24. Total Approved Cost Sharing or Matching, where applicable 25. Total Federal and Non-Federal Approved this Budget Period - End Date 26. Period of Performance Start Date 27. Total Amount of the Federal Award including Approved Cost Sharing or Matching this Period of Performance 28. Authorized Treatment of Program Income 29. Grants Management Officer – Signature Recipient Information Fe deral Agency Information 10.Program Official Contact Information Federal Award Information 30. Remarks 1. Recipient Name 9. Awarding Agency Contact Information Notice of Award Award# FAIN# Federal Award Date: Page 1 2. Congressional District of Recipient 3. Payment System Identifier (ID) 4. Employer Identification Number (EIN) 5. Data Universal Numbering System (DUNS) 6. Recipient’s Unique Entity Identifier (UEI) 7. Project Director or Principal Investigator 8. Authorized Official 11. Award Number 12. Unique Federal Award Identification Number (FAIN) 13. Statutory Authority 14. Federal Award Project Title 15. Assistance Listing Number 16. Assistance Listing Program Title 17. Award Action Type 18. Is the Award R&D? 10/01/2025 06/30/2029 ADDITIONAL COSTS 07 1866004791Z6 Industry-Driven Skills Training Fund Grant Program 17.280 WIOA Dislocated Worker National Reserve Demonstration Grants DOL - Budget Realignment No $5,000,000.00 866004791 Ms. Elina NMN Mnatsakanova Federal Project Officer U.S Department of Labor, ETA mnatsakanova.elina@dol.gov 415-625-7964 Department of Labor 25A60IN000010-01-01 25A60IN000010-01-01 25A60IN000010 25A60IN000010 02/12/2026 ETA Office of Grants Management To incorporate a budget narrative clarification in accordance with attachment 1 of this amendment. To modify the existing Statement of Work in accordance with attachment 2 of this amendment. Chaya Anderson Grant Officer Anna Hunter Assistant Director desgrants@azdes.gov 602-542-5055 ARIZONA DEPARTMENT OF ECONOMIC SECURITY 1789 W Jefferson St Phoenix, AZ 85007-3202 602-542-6572 Michael Moss Grants Manager desgrants@azdes.gov 480-662-8601 $0.00 $0.00 06/30/2029 $5,000,000.00 $0.00 $5,000,000.00 $0.00 $0.00 American Competitiveness and Workforce Improvement Act 136730434 UKUUDMSCD5D1 Carmen Mew Grants Management Specialist mew.carmen.e@dol.gov 202-693-3437 $0.00 10/01/2025 Page 2 33. Approved Budget (Excludes Direct Assistance) I. Financial Assistance from the Federal Awarding Agency Only II. Total project costs including grant funds and all other financial participation a. Salaries and Wages b. Fringe Benefits c. Total Personnel Costs d. Equipment e. Supplies f. Travel g. Construction h. Other i. Contractual j. TOTAL DIRECT COSTS INDIRECT COSTS TOTAL APPROVED BUDGET m. Federal Share n. Non-Federal Share 34. Accounting Classification Codes k. l. 31. Assistance Type 32. Type of Award Notice of Award Award# FAIN# Federal Award Date: Recipient Information Recipient Name Congressional District of Recipient Payment Account Number and Type Employer Identification Number (EIN) Data Universal Numbering System (DUNS) Recipient’s Unique Entity Identifier (UEI) $56,207.00 $19,498.00 $75,705.00 $0.00 $0.00 $0.00 $0.00 $4,000.00 $4,892,000.00 $4,971,705.00 $4,971,705.00 $28,295.00 $28,295.00 $5,000,000.00 $5,000,000.00 $5,000,000.00 $5,000,000.00 $0.00 $0.00 02/12/2026 25A60IN000010-01-01 25A60IN000010 Department of Labor ARIZONA DEPARTMENT OF ECONOMIC SECURITY 1789 W Jefferson St Phoenix, AZ 85007-3202 602-542-6572 Discretionary Grant 07 136730434 866004791 1866004791Z6 Other UKUUDMSCD5D1 FY-ACCOUNT NO. DOCUMENT NO. ADMINISTRATIVE CODE OBJECT CLASS ASSISTANCE LISTING AMT ACTION FINANCIAL ASSISTANCE APPROPRIATION 055152830XBD202551520010255HB000A0000AOFAM0AOFAM0 IN0000103N0 ETA 410023 17.280 $0.00 5152830XBD AWARD ATTACHMENTS ARIZONA DEPARTMENT OF ECONOMIC SECURITY 25A60IN000010-01-01 Attachment 1_Budget and Budget Narrative 1. Attachment 2_SOW 2. SECTION A - BUDGET SUMMARY $ BUDGET INFORMATION - Non-Construction Programs OMB Number: 4040-0006 Expiration Date: 06/30/2028 Grant Program Function or Activity (a) Assistance Listing Number (b) Estimated Unobligated Funds New or Revised Budget Federal (c) Non-Federal (d) Federal (e) Non-Federal (f) Total (g) 5. Totals 4. 3. 2. 1. $ $ $ $ $ $ $ $ TEGL 02-25 17.280 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 $ Standard Form 424A (Rev. 7- 97) Prescribed by OMB (Circular A -102) Page 1 Attachment 1 SECTION B - BUDGET CATEGORIES 7. Program Income d. Equipment e. Supplies f. Contractual g. Construction h. Other j. Indirect Charges k. TOTALS (sum of 6i and 6j) i. Total Direct Charges (sum of 6a-6h) (1) Authorized for Local Reproduction Prescribed by OMB (Circular A -102) Page 1A Standard Form 424A (Rev. 7- 97) GRANT PROGRAM, FUNCTION OR ACTIVITY (2) (3) (4) (5) Total 6. Object Class Categories a. Personnel b. Fringe Benefits c. Travel TEGL 02-25 56,207.00 19,498.00 0.00 0.00 0.00 4,892,000.00 0.00 4,000.00 4,971,705.00 28,295.00 5,000,000.00 56,207.00 19,498.00 0.00 0.00 0.00 4,892,000.00 0.00 4,000.00 4,971,705.00 28,295.00 5,000,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Attachment 1 SECTION D - FORECASTED CASH NEEDS 14. Non-Federal SECTION C - NON-FEDERAL RESOURCES (a) Grant Program (b) Applicant (d) Other Sources (c) State (e)TOTALS $ $ $ $ $ $ $ $ $ $ 8. 9. 10. 11. 12. TOTAL (sum of lines 8-11) 15. TOTAL (sum of lines 13 and 14) 13. Federal Total for 1st Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter TEGL 02-25 $ $ $ $ $ $ $ $ $ FUTURE FUNDING PERIODS (YEARS) SECTION F - OTHER BUDGET INFORMATION SECTION E - BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF THE PROJECT Authorized for Local Reproduction $ $ $ $ $ $ 16. 17. 18. 19. 20. TOTAL (sum of lines 16 - 19) 21. Direct Charges: 22. Indirect Charges: 23. Remarks: (a) Grant Program (b)First (c) Second (d) Third (e) Fourth TEGL 02-25 28,295 4,971,705 ADES has a Cost Allocation Plan $ $ Standard Form 424A (Rev. 7- 97) Prescribed by OMB (Circular A -102) Page 2 Attachment 1 Expenditure Budget Narrative Description Provide the name and title (or just the title if the staff member is not yet known) for each person who will spend time on grant activity. Include the grant role, salary, and percent of time spent on grant activities. Business Service Representative 0.3 FTE at an hourly rate of $24.02, totaling $56,207 over the entire grant period. Responsible for the oversight of the grant requirements, completion of reporting, communciation with Local Workforces, meetings with partners and employers. 30 percent for each year of the grant period of performance. $56,207.00 Personnel Sub Total: $56,207.00 Personnel Sub Total (Leverage): 0 Provide the name and title again for each person listed in the Personnel category who will receive fringe benefits. Include the grant role, annual fringe, and percent of time spent on grant activities. Benefits for FTE Total Fringe Benefits are 34.69% of Personnel cost. This includes: FICA Taxes, Medical Insurance, Basic Life Insurance, Long-Term Disability Insurance, Dental Insurance, Worker's Compensation, Retirement, and other similar expenses. $19,498.00 Fringe Sub Total: $19,498.00 Fringe Sub Total (Leverage): 0 If applicable, list travel costs associated with implementing and operating the grant. This category may be left out of the budget if it does not apply. For each travel line item listed, break out the expenses associated with that travel on a per-person basis. N/A $0.00 Travel Sub Total: $0.00 Travel Sub Total (Leverage): 0 List equipment items that will be purchased to implement and operate the grant that have an acquisition cost of $10,000 or more and a useful lifetime of more than one year. For each equipment purchase, describe its purpose and list the quantity purchased and unit cost per item. N/A $0.00 Equipment Sub Total: $0.00 Equipment Sub Total (Leverage): 0 2. Budget Category: Fringe Benefits Calculate the fringe benefits for each staff member based on total time spent on grant activity. Leveraged resources are not required but are strongly encouraged. 3. Budget Category: Travel Calculate the total travel costs for each travel line item. Leveraged resources are not required but are strongly encouraged. 4. Budget Category: Equipment Calculate the total cost of each expenditure based on the quantity and cost per unit. For shared expenditures, calculate the amount based on the percent time the item or service will be utilized for grant activity. Leveraged resources are not required but are strongly encouraged. 5. Budget Category: Supplies Calculate the overall amount of salary for each staff member based on total time spent on grant activity. Leveraged resources are not required but are strongly encouraged. Attachment C2. Industry-Driven Skills Training Fund Budget Narrative Template (Excel version) SECTION A. PROGRAM IMPLEMENTATION AND OPERATION COSTS = UP TO 10% OF AWARD AMOUNT Categorize the costs for these activities into the following SF-424 budget categories. The totals shown for these budget categories should align with the amounts in the SF-424. Amount Leverage* 1. Budget Category: Personnel Attachment 1 List the supplies that will be purchased to implement and operate the program. This includes equipment with a unit cost of less than $10,000. For each supply line item, describe their purpose and list the quantity purchased and unit cost per item (except for general office supplies). N/A $0.00 Supplies Sub Total: $0.00 Supplies Sub Total (Leverage): 0 List the organizations or entities who will be sub-recipients or receive any part of the funds for perfoming work to implement or operate the program on behalf of the grant. For each organization, include the program operation/implementation tasks or deliverables the organization is responsible for, and break out the expenses that comprise the contractual amount. Local Workforce Development Boards/Areas City of Phoenix - $130,667, Pinal County - $130,667, and Maricopa County - $130,666 for data entry, monitoring of the programs, and reimbursement processing $392,000.00 Contractual Sub Total: $392,000.00 This category is optional. Include all other expenditures that support grant activity but cannot be classified into one of the other categories in the budget. Examples include software licenses, electronic storage for data management, and security features. Describe how this expenditure supports the grant. Data Reporting Cost for WIPS reporting creation through the America's Job Link Alliance. Cost will cover the creation of a custom report for TEGL 02-25 particpants for required performance reports. $4,000.00 Other Sub Total: $4,000.00 Other Sub Total (Leverage): 0 List the total cost of each expenditure. For shared expenditures, calculate the amount based on the percent time the item or service will be utilized for grant activity. Leveraged resources are not required but are strongly encouraged. 6. Budget Category: Contractual (Program Implementation and Operation Costs Only6. ) Include the contractual amount that each organization will receive for the implementation and operation costs. 7. Budget Category: Other Costs (Program Implementation and Operation Costs Only) Calculate the total cost of each expenditure based on the quantity and cost per unit. For shared expenditures, calculate the amount based on the percent time the item or service will be utilized for grant activity. Leveraged resources are not required but are strongly encouraged. Attachment 1 If you are requesting indirect costs, use the instructions in the 2025 Applicant Guide to include the rate. If it is a shared expenditure, list the percent of the item or service that is dedicated to grant activity. Indirect Costs The Arizona Department of Economic Security does $28,295.00 Indirect Costs Sub Total: $28,295.00 Indirect Costs Sub Total (Leverage): 0 $500,000.00 Expenditure Budget Narrative Description If multiple occupations or industries are targeted, break out reimbursement amounts according to those industries or occupations. If multiple occupations or industries are targeted, break down the outcome targets provided for the number of participating employers and number of participants to receive training into the occupations/industries targeted. N/A Other Sub Total: Section A7 Sub Total: TOTAL OTHER COSTS (B + A) (should match SF-424A): Other Sub Total (Leverage): 0 List the sub-recipient organizations that will reimburse employers for training costs on behalf of the grant. For each organization, describe the employers, occupations for which participants will be trained, training types, and/or other descriptive information about the contractual amount allocated to training reimbursement. LWDB/As City of Phoenix, Maricopa County, and Pinal County to provide training Funds to employers in advanced manufacturing TSMC, Lucid Motors, LG Energy Solutions, Lux Precision Manufacturing, Boeing, and other advanced manufacturing companies City of Phoenix - $1,500,000, Pinal County - $1,500,000, and Maricopa County - $1,500,000 $4,500,000.00 Contractual Sub Total: $4,500,000.00 Section A6 Sub Total: $392,000.00 TOTAL CONTRACTUAL COSTS (should match SF-424A): $4,892,000.00 $4,500,000.00 $5,000,000.00 TOTAL LEVERAGE: 0 *Leveraged resources are optional, but strongly encouraged. SECTION B. TRAINING REIMBURSEMENTS TOTAL (sum of B1-B2; must equal at least 90% of the award amount): GRANT TOTAL: ALL COSTS (sum of Section A and Section B Totals; should be equal to the total grand award amount) Amount Leverage* 1. Other Costs (Training Reimbursements) Calculate the amount of reimbursement using the targets provided with the SOW package for the number of participating employers and number of participants to receive training to and the established training cost reimbursement ceiling. Leveraged resources are not required but are strongly encouraged. 2. Budget Category: Contractual** SECTION A. PROGRAM IMPLEMENTATION AND OPERATION COSTS TOTAL (sum of A1-A7; must not exceed 10% of the award amount): SECTION B. TRAINING REIMBURSEMENTS TO ELIGIBLE EMPLOYERS = AT LEAST 90% OF THE AWARD AMOUNT Training costs are paid as reimbursements to employers and are categorized in the budget as "Other," or, where subrecipients will reimburse employers, as "Contractual." Include the contractual amount that each organization will receive to reimburse employers for training. 8. Budget Category: Indirect Costs List the total amount based on the rate provided. Leveraged resources are not required but are strongly encouraged. Attachment 1 Attachment A. Industry-Driven Skills Training Fund Project Narrative Template SECTION I – STATEMENT OF NEED AND PROGRAM PURPOSE A. Targeted Industry Arizona is a top-five state for aerospace and defense manufacturing employment with the presence of over 40 higher education institutions that support the development of a skilled workforce. Arizona’s advanced manufacturing employers are global leaders, using next level technologies and high-tech advancements such as manufacturing in aerospace and defense, semiconductors, and automobiles. Manufacturing supplies including electric machinery, industrial machinery, and aircraft and spacecrafts, and are a top export for Arizona. The Arizona Department of Economic Security (ADES) has identified advanced manufacturing as a key sector for the industry grant, and will be the focus of the project. According to the Arizona Office of Economic Opportunity’s 2024 to 2026 Industry Employment Projections, advanced manufacturing employment is projected to increase by 976 jobs (0.3%) annually. The majority of the projected gains within advanced manufacturing are to occur within Transportation Equipment Manufacturing1. According to the Arizona Commerce Authority report from 2018 to 2022, the percentage of manufacturing workers with a certification or license is 9%, compared to 24.4% of all manufacturing workers in Arizona2. The concentration of manufacturing-sector workers with a certification or license signals the availability of workforce skills beyond traditional academic educational attainment. 1 https://oeo.az.gov/news/2024-2026-industry-employment-projections 2 https://www.azcommerce.com/programs/arizona-mep/manufacturing-in-az/ Attachment 2 Arizona has mitigated recruitment challenges by developing numerous programs with local universities and colleges to gain high-tech manufacturing talent and to prepare a skilled workforce for entry into these industries. The Local Workforce Development Boards/Areas (LWDB/As) offer pathways to training opportunities and community college programs like the Future48 Workforce Accelerator Program. ADES engaged Taiwan Semiconductor Manufacturing Corporation (TSMC), Boeing, Lucid Motors, LG Energy Solutions, Lux Precision, and other advanced manufacturing companies in this opportunity. In March 2025, President Trump and TSMC Chairman and CEO C.C. Wei announced a historic expansion of TSMC's advanced semiconductor operations in Arizona. TSMC will invest at least an additional $100 billion to build three more semiconductor fabrication plants in Arizona, as well as two advanced packaging facilities and a major research and development center. The investment comes in addition to TSMC's three fabrication plants already in operation or under construction in Arizona and will represent thousands of additional new jobs to the already existing 3,000 employees and a historic total investment of $165 billion. TSMC is also piloting the State’s first registered apprenticeship program for semiconductors to develop a skilled local workforce. There is a high demand for skilled workers in the region, leading to competition and challenges in meeting labor needs for the new facilities. Boeing manufactures defense aeronautics in Mesa, Arizona and employs more than 4,800 people and 570 suppliers in the State. Boeing currently has two certification programs to support aerospace and defense manufacturing. Boeing's Technical Apprenticeship Program (BTAP) focuses on technical skills for emerging and in-demand roles in the aerospace industry and their IAM/Boeing Joint Apprenticeship Program, which offers hands-on training and classroom instruction to develop skills in aerospace manufacturing and related fields. Attachment 2 Lucid Motors moved to Arizona in 2022. The Arizona Commerce Authority took the initiative to lead an effort to ensure that the State continues to produce highly-trained talent for Lucid Motors and for other manufacturers in the region. In March 2024, the reported workforce was 2,500, and in April 2025, Lucid acquired new facilities, hiring an additional 300 employees. Participants enroll to earn Automated Industrial Technology stackable certificates and degrees, all meeting the standards of the highly regarded National Institute of Metalworking Skills. LG Energy Solutions has a significant presence in the automotive industry with in- vehicle components and solutions, including in-vehicle displays, next generation batteries, infotainment systems, and components for vehicles. LG Energy Solutions has over 10,000 employees in Queen Creek, AZ. LG Energy Solutions has become a global powerhouse in the EV and energy storage system (ESS) battery sector. Lux Precision produces a wide range of precision-machined parts and assemblies for various industries, including aerospace, defense, medical, and electronics, using advanced technology such as CNC milling and turning. Lux Precision also offers other services including precision assembly, and their capabilities include both short-run prototypes and larger production runs. Although their employee count is no more than 50 employees, there will be a need to train and hire more employees as the demand increases. ADES has also identified numerous companies within Maricopa County, the largest county in Arizona, as having a need for training in advanced manufacturing. Advanced Manufacturing aligns with Arizona’s PY 2024 to 2027 State Plan, completed in coordination with the LWDB/As to ensure that the workforce system is job-driven and matches employers with skilled individuals. This requires States and local areas to enhance coordination and partnerships with local entities and supportive service agencies for strengthened service delivery. As noted in the State Plan, statewide manufacturing employment growth has Attachment 2 continued to speed up in recent years, growing by an annualized rate of 2.1 percent from 2019 to 2022. From 2021-2023, manufacturing was expected to grow by 15,421 jobs (4.2 percent annually). Arizona has established itself as a premier location for chip manufacturing in recent years: the state has led the nation in chip investment since 2020 and has a current total of 115 chip-related companies. This aligns with the service areas Maricopa County (including City of Phoenix) and Pinal County. In addition to federal investment from the CHIPS Act, Arizona’s Manufacturing industry has been impacted by the Inflation Reduction Act—specifically, electric vehicle manufacturing. From March 2023 to August 2023, Arizona’s total electric vehicle investment and associated jobs increased from $3.7 billion and 7,600 jobs to $10.9 billion and 11,500 jobs. The areas that most represent the need in advanced manufacturing positions are in the selected service areas below. B. Service Area The service areas included for the industry grant include: 1. Maricopa County (including City of Phoenix) 2. Pinal County The three LWDB/As that are Maricopa County, City of Phoenix, and Pinal County have been working on a regional approach with improved coordination and collaboration to focus on the growing advanced manufacturing industry. As stated in the above section, the three LWDB/As align with the selected advanced manufacturing employers that have an increase in advanced manufacturing positions. The selected employers – TSMC, Boeing, Lucid, LG Energy Solutions, and Lux Precision – reside within the selected LWDB/As. Additional advanced manufacturing employers will be identified throughout the duration of the grant period of performance. Attachment 2 C. Program Goals The targeted industry is advanced manufacturing in Maricopa County and Pinal County. Initial employers include TSMC, Boeing, Lucid, LG Energy Solutions, and Lux Precision who are located in the service areas where the three LWDB/As, Maricopa County, City of Phoenix, and Pinal county, oversee workforce functions; with additional advanced manufacturing employers identified during the project period. The proposed number of employers will be 25 and at least 1,110 participants. Skills gaps, aging workforce, competition for tech-savvy talent, negative perceptions of manufacturing jobs, and the need to upskill workers for automation/artificial intelligence are some workforce challenges faced by advanced manufacturing employers. As shown in the WIOA State Plan, ADES, alongside the LWDB/As, will continue to connect and identify employers that have a need to improve potential candidates for training. SECTION II – PROGRAM DESIGN A. Implementation and Management Plan ADES will utilize the LWDB/As to distribute training funds to employers in the LWDB/As of City of Phoenix, Maricopa County, and Pinal County. These LWDB/As have a strong alignment with TSMC, Boeing, Lucid, LG Energy Solutions, Lux Precision, and other advanced manufacturing employers in their respective geographic areas. The City of Phoenix assisted with the TSMC and created the first semiconductor-related Registered Apprenticeship program. Additionally, City of Phoenix partners with Lux Precision and Grand Canyon University to prepare the next generation of advanced manufacturing professionals. Maricopa County, the most populous county in Arizona, has been a strong supporter of advanced manufacturing and offers various programs and community college partnerships, including Attachment 2 Boeing's commercial airplanes and defense systems training. Pinal County played an active role in securing the partnership with Lucid Motors and further developed a partnership with Central Arizona College to help ensure that Lucid has the trained workforce needed for expanding operations in Arizona. Pinal County also partners with LG Energy Solutions for production and automation needs. ADES works closely with the LWDB/As, and assists with outreach through various media channels, such as the ARIZONA@WORK website and social media accounts, and supports hiring events and other recruitment activities for advanced manufacturing professions. ADES is responsible for performance reporting for U.S. DOL ETA grants. ADES uses the Arizona Job Connection (AJC), Arizona’s job matching and labor market information system hosted by America’s Job Link Alliance, to help with data gathering and upload to the Workforce Integrated Performance System (WIPS). Employment and training outcomes will be provided quarterly through the AJC, and timely reporting will be followed according to grant guidelines. ADES is the State Workforce Agency that reports on Workforce Innovation and Opportunity Act (WIOA) grants and collaborates with the local areas to ensure data is aligned to the geographic areas. ADES uses Tableau software that allows the agency to see employment data in real time. Arizona’s PY 2024 to 2027 State Plan, completed in coordination with the LWDB/As, includes the goal to “foster business engagement strategies” that supports states and local areas enhanced coordination and partnerships with local entities and supportive service agencies for strengthened service delivery. This goal aligns with this funding opportunity. ADES timelines follow the U.S. Department of Labor’s TEGL 02-25. ADES has completed meetings with the LWDB/As with employers to prepare for training services to participants. Grant oversight and communication with LWDB/As is coordinated by ADES. The part time Business Services Representative will charge 30 percent of their time for the duration Attachment 2 of the grant. The remaining administrative funding will be used for the LWDAs to cover staff costs for data entry, monitoring of the programs, and reimbursement processing. ADES has also set aside funding for performance reports creation in WIPS. B. Project Implementation Strategies 1. Employer Engagement a. Outreach and Recruitment ADES, LWDB/As, and employers have begun discussing grant training requirements and are planning a design to maximize grant outcomes to fill vacancies. Recent training programs have been developed, and new training programs in advanced manufacturing will be developed to help grow and advance the workforce in Arizona. Currently, the number of employees are approximately 3,000 at TSMC, 4,800 at Boeing, 2,800 at Lucid, 10,000 at LG Energy Solutions, and 50 at Lux Precision. ADES will leverage the support and connections to training programs/community colleges with the LWDB/As, to increase employment and training opportunities, and also to help mitigate the loss of employment. The established relationships that the LWDB/As have with the community colleges is a critical pipeline to recruit and train participants for selected employers. Lucid needs new participants and also has approximately 60% of the workforce that could benefit from advanced manufacturing training, which would upskill and further advance their education to secure roles in leadership or in more technical roles. Much of the training programs span technician pipeline programs, as well as incumbent worker training. Currently, three apprenticeship programs are delivered with TSMC in partnership with the Community Colleges and Northern Arizona University, plus a technician training program through Grand Canyon University. TSMC needs over 700 technicians throughout the grant period of Attachment 2 performance. Boeing is also in need of upcoming new employee talent and skilled workers for the collaborative training program. TSMC’s program includes newly created technician apprenticeship programs through Estrella Mountain Community College, Northern Arizona University, Rio Salado College, Grand Canyon University, and Western Maricopa Education Center. TSMC's decision to expand was based on the opportunity to tap a local and diverse talent pipeline, and also to collaborate with a world-class U.S. education system, to develop a more advanced semiconductor technology. LG Energy Solutions most impactful training services are industrial maintenance, robotics, and PLC programming. Lux Precision provides structured on the job training instruction in precision manufacturing that produces critical parts for the aerospace, defence, and medical industry. The average cost of training will be no more than $4,000 for all employers, which allows a minimum of 1,110 participants to be served through the grant period of performance. The number of participants is split between the LWDB/As, the number of participants may fluctuate between the LWDB/As. The per-employer training cost reimbursement ceiling is $750,000. The per-employee training costs reimbursement ceiling is $4,000. Reimbursement will be provided in two performance-based payments following the training milestones of 1) training completion by a participant and a certificate of completion is provided; and 2) when a participant has been employed for more than 6 months and employment verification is provided. The training reimbursement may cover up to 80% of the costs; however, if the participant does not achieve employment in advanced manufacturing and only receives training completion, the reimbursement rate will be 50%. Attachment 2 LWDB/A PARTICIPANT S REIMBURSEMENT - TRAINING COMPLETION REIMBURSEMENT - EMPLOYMENT FOR 6+ MONTHS AFTER TRAINING MAXIMUM REIMBURSE MENT EMPLOYERS City of Phoenix 370 $2,500 $1,500 $4,000 TSMC, Lux Precision, other AM Companies Maricopa County 370 $2,500 $1,500 $4,000 Boeing, other AM Companies Pinal County 370 $2,500 $1,500 $4,000 Lucid, LG Energy Solutions, other AM Companies Total 1,110 - - - 25 Employers (projected) b. Eligibility ADES and the LWDB/As are in the process of completing a memorandum of understanding that specifies criteria for ensuring employer eligibility. The LWDB/As and employers have provided the specific training needs in advanced manufacturing. These employers operate within the selected areas. Before an advanced manufacturing employer is selected as a candidate, they must provide specifically to the LWDB/As what training will be provided and the length of time of the training. Employers and LWDB/As agree that there is a $4,000 max per employee training cost and a $750,000 per employer max. An employer must provide a certificate of completion to receive the first 50 percent of training funds. Once a participant has been employed for 6 months, the employer may be reimbursed the extra 30 percent, totalling 80 percent of the training cost. If an employer does not fit the criteria and definition of an advanced manufacturing employer, they will not be eligible. A documented description of the training is needed and will be vetted through ADES to ensure it meets the definition of advanced manufacturing and resides in the selected areas. The LWDB/As and ADES utilize the Arizona Job Connection for data entry and communication regarding grant Attachment 2 participants. This allows for administrative access in real time and accessibility for quarterly report creation. c. Selection ADES has connected identified employers with the LWDB/As, including TSMC, Boeing, Lucid, LG Energy Solutions, and Lux Precision. Additional advanced manufacturing employers will be identified by the LWDB/As that have expertise and knowledge of the employers that operate in their areas. The employer must provide the type of training, length of time to complete the training, what certificate will be achieved, and if the training resulted in employment. The employer has to provide training in advanced manufacturing and must be applied to an advanced manufacturing position. The employer must agree to the reimbursement policy and sign a memorandum of understanding with the LWDB/As. Many employers train in cohorts and others may train on a rolling basis. These needs will be identified and provided based on the guidance of the grant terms. The funding will be divided evenly among the three LWDB/As to provide training funds to employers in their areas. 2. Employer-Driven Training TSMC, Boeing, Lucid, LG Energy Solutions, Lux Precision, and other advanced manufacturing companies meet the Industry-Driven Skills Training grant eligibility criteria: 1) operate within the City of Phoenix, Maricopa County, and Pinal County service delivery areas, 2) meet Arizona's in-demand industry needs as illustrated by labor market analysis, 3) have committed to engaging with the LWDB/As to support this grant and the reporting requirements, and 4) have an established partnership with the targeted LWDB/As that will foster developing new training strategies. ADES is able to monitor and manage the desired outcomes through the Attachment 2 AJC shared database and applying lean principles through results driven, continuous improvement management. Programs that involve advanced manufacturing engineering, lean manufacturing, industrial maintenance, robotics, programmable logic controller, or quality assurance systems would provide the most impact for the automotive and technology industry needs. In addition Aircraft Composite (Carbon Fiber, Fiberglass, etc.) Fabrication and Aircraft Electrical Wire Bundle Fabrication/Assembly have been identified as needed training opportunities. TSMC Arizona unveiled a first-of-its-kind semiconductor-industry focused Registered Technician Apprenticeship for Facilities Technicians. This program was sponsored by the City of Phoenix and supported with classroom curriculum co-developed with Maricopa Community Colleges. The first cohort started as TSMC Arizona full-time employees in April 2025, and those individuals are now earning their on-the-job training hours and attending courses at Estrella Mountain Community College. The estimated time to complete an apprenticeship is 24 months, with opportunities to pursue stackable credentials and an optional associates degree. Once all three TSMC Arizona advanced-manufacturing fabrication plants are fully operational in Phoenix, its local workforce will be nearly 6,000 people, which will include thousands of technicians. TSMC Arizona is partnering with these educational institutions to recruit and hire nearly 130 new apprentices and trainees in 2025. That is in addition to the hundreds of open positions for its Phoenix operation. Boeing partners with Arizona's Maricopa Community Colleges system, particularly Mesa Community College and Chandler-Gilbert Community College, to offer customized boot camps for training in aerospace manufacturing skills, such as electrical harness wiring and aviation sheetmetal fabrication. Attachment 2 Lucid Motors' training partners in Arizona include Central Arizona College, where the Drive48 program helps train workers in robotics and advanced manufacturing, and the Arizona Commerce Authority, which partners with Lucid to foster education and workforce development programs. The new production facility is projected to supply over 2,000 jobs. Lux Precision provides structured On-the-Job Training (OJT) and instruction in precision advanced manufacturing producing critical parts for the aerospace, defense, and medical industries. The program delivers a minimum of 12 weeks / 120 hours to a maximum of 280 hours of structured hands-on training with evaluation through a defined checklist. Classroom instruction is provided by Grand Canyon University at their tuition rate, complementing the OJT with coursework in CNC machining, math, and communication. Lux anticipates enrolling over 70 employees in the first year and over 300 employees in the next four years (a mix of new hires and incumbent workers). LG Energy Solutions training programs include industrial maintenance, robotics, and PLC programming, and is projecting a need for 30 incumbent workers and 300 new hires. 3. Employer Participation a. Reimbursement Terms Once a participant has been determined as eligible for training, employers must follow the guidance given for reimbursing a participant. The training cannot exceed $4,000 or 80 percent of the total training costs. A certificate of completion is required in order to provide the first 50 percent of reimbursement. In order to receive the full 80 percent, verification of employment is required, whether provided by the employer or verified from the LWDB/As. If the participant is an incumbent worker, documentation of progression with a promotion or higher pay is required. Attachment 2 Action Reimbursement Rate Employer communicates with LWDB/As that training has started; participant record documented in AJC 0% Participant certificate of completion is uploaded into AJC; notes recorded AJC 50% Participant employment retention for 6 months is recorded in AJC 80% An employer cannot exceed $750,000 of total training funds. ADES will not have a tiered rate among the employers as there is only one focus on advanced manufacturing. Employers are selected based on a first come first serve as the demand for training is needed. Employers will agree to providing necessary data of participants before the training begins. If this information is not provided, the participant cannot be reimbursed for training funds. Additionally, employers understand that training funds are solely for training and not any other purposes such as supportive services. Training needs are identified from the LWDB/As and communication with employers to provide participant information and reason that training is being requested. b. Strategies for Minimizing Paperwork Since ADES and the LWDB/As both use the Arizona Job Connection database, input of participant information will be accessible for reporting purposes without the burden of additional steps for paperwork. The LWDB/As have experience with inputting WIOA grants and will retrieve participant information for the Industry Grant participants similarly, but with the additional required data for the industry grant. The PIRL and Narrative reports can run without roadblocks or additional paperwork needed. Communication via the Arizona Job Connection simplifies the employer process for providing information to the LWDB/As. Updates to participant information and progress can be added to the AJC and seen in real time. Timely Attachment 2 automatic reminders help with any progress made, or when the completion of training or employment is achieved, will be accessible and inputted without additional steps involved. 4. Employer Oversight and Monitoring ADES is working on establishing Memorandum of Understandings for grant operations that will be used as a standard for the LWDB/As and employers. This will help establish the requirements in advance to employers. ADES will create standard work before enrollment of participants occurs with the employers. ADES uses the Arizona Management System (AMS), which is a government-wide approach to achieve goals through continuous improvement, goal- setting, and investing in people. Open communication with LWDB/As and employers will occur on a monthly basis. The guidelines will allow the monitoring of employers before any enrollment occurs to minimize mistakes that may cause additional paperwork. The Business Service Representative will streamline the standard work to the LWDB/As. SECTION III – CAPACITY AND RESOURCES A. Staffing Plan ADES has selected an existing Business Service Representative that will dedicate 30 percent of his time for the duration of the grant. Kevin Miles, Business Service Representative will communicate with the LWDB/As, and employers as appropriate, to assure compliance and regulations will be met. The LWDB/As will be the main point of contact with the employers, but Mr. Miles will be available to support where necessary. In coordination with the Grant Manager, Michael Moss, Mr. Miles will conduct monthly meetings with LWDB/As and employers to communicate updates, answer grant related questions, monitor performance, and collect information for the quarterly narrative reports. Mr. Miles will work closely with the Grant Attachment 2 Manager when the U.S. DOL is in need of information. The Grant Manager charges are included in the indirect cost line in the Budget Narrative. The Grants Manager is the main point of contact to the Federal Project Officer but does not directly charge the grant. B. Subrecipients and Partners The image below depicts the grant oversight and relationship between ADES and the LWDB/As with the employers. ADES will partner with the LWBD/As who will engage with the employers for training workers in advanced manufacturing jobs. The Pinal County Workforce Development Board (PCWDB) is a business-driven partnership that connects job seekers and employers in Pinal County through a network of Attachment 2 services called ARIZONA@WORK. It focuses on talent development, creates regional strategic plans, and provides a variety of resources, including resume help, career assessments, and business services for recruiting and retention. The Maricopa County Workforce Development Board (MCWDB) assists the Board of Supervisors with strategic planning, oversight, and evaluation of local workforce development programs to support job seekers and employers. The MCWDB brokers relationships with key partners like businesses, educators, and labor groups to create a strong workforce system that connects job-seekers with career opportunities and employers with skilled talent, all under the umbrella of ARIZONA@WORK. Services include job training, career counseling, and support for specific populations like adults, youth, and dislocated workers. The City of Phoenix Workforce Development Board's mission is to provide opportunities for individuals, businesses, and the community to grow and prosper, in line with the Workforce Innovation and Opportunity Act. It acts as a strategic leader, collaborating with partners to optimize services, expand economic development, and increase participation in the workforce system. The Workforce Development Division implements these goals by providing services such as career assessments, training, and job search support, operating the ARIZONA@WORK City of Phoenix Adult and Dislocated Worker programs. C. Leveraged Resources ADES does not have a budget for leveraged resources, but will be utilizing the existing infrastructure of the LWDB/As and their relationships with employers. SECTION IV – EXPECTED OUTCOMES AND PERFORMANCE MANAGEMENT A. Key Indicator Targets Attachment 2 Key Indicator Target Total number of participating employers 25 Total number of participants who will receive training that is reimbursed with grant funds 1,110 B. Performance Management Strategy Employers will be required to provide participant data to the LWDB/As. Data is inputted into the AJC that allows ADES to view data and submit quarterly reports. Before a participant is selected to receive training funds, they will be in contact with the LWDB/As that will input their information in AJC and add any relevant notes as to the time it will take to complete training, when the projected employment will begin, and when retention is achieved. The AJC will automatically provide formatted data that allows ADES to submit quarterly reports. Any errors will be reviewed and communicated to assure they are resolved. These reports will allow ADES to oversee the progress with the submitted timeline and focus on achieving the metrics by end of the period of performance. ADES has reviewed the PIRL schema and will include them in a specialized report via WIPS. Arizona utilizes the AJC in conjunction with AJLA to create these reports with specific outcomes. ADES already provides the WIOA PIRL reports and has set aside a small amount of funding (in budget narrative) to account for the funds needed to create a report with specific outcomes. The Industry grant metrics will be reportable via the existing AJC structure and all elements will be reportable through the existing AJLA processes. AJC is supported by America’s Job Link Alliance-Technical Support (AJLA–TS) and provides intuitive, integrated information, technology solutions, and exceptional technical support Attachment 2 to the State and to local workforce agencies. This includes labor exchange, employment services, demographic information, case management, Adults, Dislocated Workers, and Youth programs, and reporting functions. AJC is used to track and report ADES’ existing indicators of performance and specific goals, and will be used to track performance under this grant. SECTION V – PAST DEMONSTRATION OF INNOVATION IN WORKFORCE TRAINING ADES has successfully completed the State Apprenticeship Expansion Formula Grant (#2360AP000004), which concluded on June 30, 2025. With established partnerships with training partners and the LWDB/As in Arizona, ADES set forth goals each year to achieve grant participant outcomes. In Fiscal Year (FY) 2024 (July 1, 2023 to June 30, 2024), ADES set the goal to add 50 apprentices but achieved 1,683 apprentices. In FY 2025 (July 1, 2024 to June 30, 2025) the goal was to add 200 apprentices but ADES achieved 609 apprentices.3 ADES has been able to build capacity and train staff to perform outreach in all key industries throughout the State of Arizona. ADES has hosted accelerators with industry associations, connected on a regular basis with the career and educational programs, and increased opportunities and access to quality registered apprenticeship programs through continued collaboration with the LWDB/As. ADES hosted a Registered Apprenticeship Summit in April 2025, with over 220 attendees from across the State, including representatives from the LWDB/As, employers in targeted industries, community organizations, registered apprenticeship sponsors, and non-profit organizations. ADES overcame initial challenges in outreaching to targeted areas by partnering with companies to assist in completing outreach and advertising targeting career seekers and 3 https://www.apprenticeship.gov/data-and-statistics/apprentices-by-state-dashboard Attachment 2 employers. Marketing videos were developed and displayed on the ADES website and on YouTube to showcase how to attract potential participants and employers. From this effort alone, ADES has been able to connect with over 60 employers seeking Registered Apprenticeships as a workforce solution, in-person and virtually. ADES partners with seven of the 12 Arizona LWDB/As to provide registered apprenticeships, paid training, and supportive services to job seekers. ADES has strong partnerships with the City of Phoenix, Maricopa County, and Pinal County to support advanced manufacturing. ADES partnered with the City of Phoenix LWDB/A and TSMC to register the first semiconductor-related apprenticeship program which will also allow other semiconductor employers to join. ADES and the Maricopa County LWDB/A will continue to conduct Apprenticeship Accelerators in advanced manufacturing to increase participants. ADES and Pinal County LWDB/A conduct outreach on apprenticeship programs, using venues such as town halls, regional partnership meetings, and community college meetings. Attachment 2 1 Attachment D. Industry-Driven Skills Training Fund Abstract Template Grant Information Organization Name: Arizona Department of Economic Security (ADES) Organization Location (State): Arizona Project Title/Name: Industry Grant Award Amount: $5,000,000 Leveraged Amount (if applicable): N/A Key Project Parameters Service Area: Pinal County and Maricopa County (including City of Phoenix) Target Industries, Sectors, and Occupations: Advanced Manufacturing in Arizona Anticipated Workers to be Served (incumbent workers and/or newly hired workers): 1,110 participants that are incumbent workers and newly hired workers Project Scope and Expected Outcomes Project Summary: ADES plans to focus on advanced manufacturing with Taiwan Semiconductor Manufacturing Company (TSMC), Lucid Motors, LG Energy Solutions, Lux Precision Manufacturing, Boeing, and other advanced manufacturing companies. Subrecipients are the Local Workforce Development Boards/Areas (LWDB/As) for Maricopa County, Pinal County, and City of Phoenix that partner with the employers. ADES will utilize already established advanced manufacturing with LWDB/As and local training partners to advance employment Attachment 2 2 opportunities and create new advanced manufacturing jobs as there is a high demand with the employers in their respective areas. ADES will operate the grant with a designated part time Business Services Representative that will charge 30 percent of their time for the duration of the grant. The remaining administrative funding will be used for the LWDAs to cover staff costs for data entry, monitoring of the programs, and reimbursement processing. ADES has also set aside funding for performance reports creation in WIPS. ADES will use the LWDB/As to help identify and select employers who will participate. Identified employers have established training programs with the LWDB/As that meet the need of advanced manufacturing. ADES will meet with the LWDB/As and employers monthly to review progress. Participating Employers (if known): Employer in the advanced manufacturing industry: TSMC, Lucid Motors, LG Energy Solutions, Lux Precision Manufacturing, Boeing, and other advanced manufacturing companies. Cost of training maximum is $4,000 Terms for Training Cost Reimbursement: Must not exceed 80% of the total cost of training. This amount may be achieved after training is completed by the participants at 50 percent and when the participants has retained his or her job post six months at 80 percent. A certificate of completion of training is needed and job verification is needed to receive the training funds. There are no tiered training reimbursements. Employers are strictly advanced manufacturing companies and must train in the industry. ADES is establishing Memorandum of Understandings with the LWDB/As and the LWDB/As with their respective employers. Grant terms are listed in the agreements with partners. Per-Employer Reimbursement Ceiling: $750,000 per employer Attachment 2 3 Per-Employee Reimbursement Ceiling: $4,000 per employee (applied consistently with all employers) Target Number of Participating Employers: 25 employers Target Number of Participants Who Will Receive Training That Is Reimbursed with Grant Funds: 1,110 participants Key Project Contributors and Contacts Grant Partner and Subrecipient Names and Roles (if applicable; include employer partners, if known): Three Local Workforce Development Boards/Areas (LWDB/As): Pinal County (LWDB/A) Maricopa County (LWDB/A) City of Phoenix (LWDB/A) Employers: TSMC, Lucid Motors, LG Energy Solutions, Lux Precision Manufacturing, Boeing, and other advanced manufacturing companies Main Grant Point(s) of Contact: Kevin Miles, Business Service Representative, kmiles@azdes.gov Michael Moss, Grants Manager, michaelmoss@azdes.gov Anna Hunter, Assistant Director, ahunter@azdes.gov Public Contact Information: Kevin Miles, Business Service Representative, kmiles@azdes.gov Michael Moss, Grants Manager, michaelmoss@azdes.gov Anna Hunter, Assistant Director, ahunter@azdes.gov Attachment 2 1 Attachment B. Industry-Driven Skills Training Fund Grant Program Project Implementation Timeline Template The period of performance is 45 months. Grant Period of Performance: October 1, 2025 - June 30, 2029 Use this template to develop a project implementation timeline. Provide an entry under each column for the grant phase identified. An example has been provided for the Project Planning Phase as a reference for completing the template. To assist you with completing the template, there are examples of the types of activities that may be categorized under each grant phase. You should include only activities that are relevant to your project, and that may include items that are not listed as examples. GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. 2-4 Nov 24, 2025 – Jan 23, 2026 Project Planning Phase • Solidify and finalize the project design • Develop all project components • Finalize the Statement of Work (SOW) package Grants Manager Business Services Representative • Program design finalized • Submit SOW package to DOL/ETA • SOW Approval Received • Submit SOW package to DOL by January 2, 2026 • Approval received no later than January 23, 2026 2-4 Nov 1 2025 to Jan 1 2025 Grant Start-Up and Implementation Gather staff responsible for Pinal County, Maricopa County, and City of Phoenix to discuss grant awards and details of duties.Establish Monthly Meetings with Local Workforce Development Boards/Areas (LWDB/As) as duties are assigned. Grants Manager Business Services Representative LWDB/A Staff Establish a monthly Cadence for meetings Beginning Nov 2025 to end of grant Jan 2029 Attachment 2 2 GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. 2-4 Nov 1 to Jan 1 2026 Grant Start-Up and Implementation Creation of Contracts/agreements with the 3 LWDB/S Grants Manager Business Services Representative LWDB/A Staff Create draft contracts for review Beginning Nov 2025 to Jan 2026 4 Jan 30 2026 Grant Start-Up and Implementation Training provided to LWDB/A staff for data entry into Arizona Job Connection, related to performance reporting. Grants Manager Business Services Representative LWDB/A Staff Provide Training with ADES database, Arizona Job Connection, where the industry grant has been created Jan 30, 2026 4 Jan 30 2026 Grant Start-Up and Implementation Begin to identify upcoming participants that are involved in industry related training Grants Manager Business Services Representative LWDB/A Staff Employers Communication has been established with the LWDB/As and identified employers. Jan 30, 2026 5 Feb 28, 2026 Grant Start-Up and Implementation LWDB/A feedback and finalized Memorandum of Understandings Grants Manager Business Services Representative LWDB/A Staff Employers Review contracts Feb 28, 2026 6 March 31, 2026 Grant Start-Up and Implementation Complete agreements with advanced manufacturing employers Grants Manager Business Services Representative LWDB/A Staff Employers Execute Contracts with LWBD/As and Employers March 31, 2026 7 April 1, 2026 Employer Outreach, Recruitment, and Selection Examples • Begin identification of participants with already identified employers TSMC, Lucid Motors, LG Energy Solutions, Lux Precision Manufacturing, and Boeing Business Services Representative LWDB/A Staff Employers TSMC, Lucid Motors, LG Energy Solutions, Lux Precision Manufacturing, and Boeing are employers that have been previously April 1, 2026 Attachment 2 3 GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. identified with LWBD/As established partnerships 7 April 1, 2026 Employer Outreach, Recruitment, and Selection Outreach to additional advanced manufacturing employers Assessment of employer eligibility Business Services Representative LWDB/A Staff Employers not identified in the narrative that have an advanced manufacturing component in the training April 1, 2026 8 April 1, 2026 Employer Monitoring and Reporting • Identification of applicable training or evaluation of proposed training • Connecting employers and training programs, as needed • Communicating expectations Business Services Representative LWDB/A Staff Employers Reiterate contracts and discuss in monthly meetings expectations. Identify further training, whether provided by the U.S. DOL or Technical Assistance teams. Identified employers should have received training with LWDB/As and ADES before enrolling an individual eligible for training funds. April 1, 2026 8 April 30, 2026 Employer Monitoring and Reporting • Information/data collection Business Services Representative LWDB/A Staff Employers Establish employer communication once the participant is identified. Discuss with ADES and LWDB/As and how to enroll in the Arizona Job Connection April 30, 2026 Attachment 2 4 GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. 8 April 30, 2026 Employer Monitoring and Reporting • Documentation of employer activity Business Services Representative LWDB/A Staff Employers Employers will be providing information to LWDB/As for quarterly reporting April 30, 2026 8 April 30, 2026 Employer Monitoring and Reporting • Participant eligibility verification and enrollment in training • Collect participant data and track progress through employers Business Services Representative LWDB/A Staff Employers Employers will be providing information to LWDB/As for quarterly reporting April 30, 2026 9 May 15, 2026 Employer Monitoring and Reporting Report participant progress to DOL Monitor adherence to reimbursement terms Business Services Representative LWDB/A Staff Employers Quarterly Narrative and Performance reports submitted for the first time May 15, 2026 9-45 May 15, 2026 to June 30, 2029 Employer Reimbursement Phase • Tracking of progress toward completion • Collect milestone data and document achievement • Report milestone achievement to DOL Business Services Representative LWDB/A Staff Employers Quarterly reports submitted each quarter Identify key material in narrative reports Record the number of participants and employers May 15, 2026 to June 30, 2029 9-45 May 15, 2026 to June 30, 2029 Employer Reimbursement Phase Establish communication for issuing training payments once participants complete training Business Services Representative LWDB/A Staff Employers Training participants will either be beginning or in process with their training. ADES along with the LWDB/As will establish the process, solidify entry of participant data, and review MOUs that have been completed June 1, 2026 to June 30, 2029 Attachment 2 5 GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. 10-45 July 1, 2026 to July 30, 2026 Employer Reimbursement Phase • Distribute training costs • Distribute funds, as appropriate Business Services Representative LWDB/A Staff Employers Upon completion of training, employers will receive their first percentage and then the remaining amount once the participant is employed for 6 months (no more than 80 percent of the training costs). LWDA/As and employers will communicate processes in monthly meetings and continue to add participants as new training starts. Already established training that LWDA/S have will continue as availability is identified. July 1, 2026 to June 30, 2029 10-45 July 1, 2026 to July 30, 2026 Employer Reimbursement Phase • Track per-employee and per- employer funds paid Business Services Representative LWDB/A Staff Employers Participants will be tracked as training continues and employment monitored that will be inputted into quarterly 9130 reports July 1, 2026 to June 30, 2029 14 November 2026 Employer Reimbursement Phase Achieve 200 participants Business Services Representative LWDB/A Staff Employers ADES will have estimated 200 participants with 6 employers participating November 2026 Attachment 2 6 GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. 15-45 December 1, 2026 to June 30, 2029 Employer Reimbursement Phase • Self-assessment to evaluate program effectiveness and responsiveness to employer needs Business Services Representative LWDB/A Staff Employers ADES will internally evaluate Industry program progress bi- annually and identify potential road blocks and successes December 1, 2026 to June 30, 2029 26 November 2027 Employer Reimbursement Phase Achieve 400 participants Business Services Representative LWDB/A Staff Employers ADES will have estimated 400 participants with 10 employers participating November 2027 38 November 2028 Employer Reimbursement Phase Achieve 900 participants Business Services Representative LWDB/A Staff Employers ADES will have estimated 900 participants with 20 employers participating November 2028 39 December 2028 Employer Reimbursement Phase Maintain relationships with employers for future training assistance Business Services Representative LWDB/A Staff Employers ADES and the LWDB/As will continue communication and assistance with employers to determine methods of future training services December 2028 45 June 30, 2029 Employer Reimbursement Phase Achieve 1,110 participants Business Services Representative LWDB/A Staff Employers ADES will have estimated 1,110 participants with 25 employers participating June 30, 2029 45-45 June 30, 2029 Grant Close-Out • Staff off-boarding • Sustainability efforts • Final reports Business Services Representative LWDB/A Staff Employers Business Service Representative will continue tasks with remaining participants until they are completed. June 30, 2029 Attachment 2 7 GRANT MONTHS DATES COVERED GRANT PHASE Phases have been identified below. Sample text for the Project Planning Phase and activity examples for each phase have been included – adjust and expand where applicable. Note that phases may overlap grant months. ACTIVITIES Identify the activities that will take place. Below are examples which should be replaced with specific strategies identified in the Project Narrative. RESPONSIBLE PARTY(IES) Identify who or what entity is responsible for each activity. MILESTONES Identify important milestones that correspond to key activities TIMELINE Identify dates covered by each activity with dates to achieve the milestones noted. Continued partnerships with employers will open new opportunities for advanced manufacturing positions and sustain important jobs in Arizona. Final reports to be submitted 120 days after the period of performance ends Attachment 2