# Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report

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URL: https://www.frixlaw.com/law-library/documents/fr%3A2011-1583

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** January 26, 2011
- **Citation:** 76 FR 4614

## Text

DEPARTMENT OF COMMERCE
Economic Development Administration
Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report

AGENCY:

Economic Development Administration, Commerce.

ACTION:

Notice.

SUMMARY:

This annual report is submitted in accordance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to submit to Congress an annual report on the Trade Adjustment Assistance for Firms (TAAF) Program by the 15th of December each year. The TAAF Program is one of four Trade Adjustment Assistance (TAA) Programs authorized by the Trade Act of 1974 (19 U.S.C. 2341
et seq.
) (Trade Act).

Administered by the Department of Commerce's Economic Development Administration (EDA), the goal of the TAAF Program is to help economically distressed U.S. businesses develop strategies to compete in the global economy. In general, the program provides cost-sharing technical assistance to eligible businesses to create and implement targeted business recovery plans, called Adjustment Proposals under the program. Firms contribute a matching share to create and implement their plan.

Technical assistance is provided through a nationwide network of eleven EDA-funded Trade Adjustment Assistance Centers (TAACs), which are either non-profits or university-affiliated. The TAACs provide assistance to firms petitioning EDA for certification of eligibility under the program and in the development and implementation of business recovery plans.

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent.

Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days.

ADDRESSES:

Trade Adjustment Assistance for Firms Division, Room D100, Economic Development

Administration, U.S. Department of Commerce, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT:

Bryan Borlik, Director of the TAAF Program, 202-482-3901.

SUPPLEMENTARY INFORMATION:

Table of Contents

Introduction

Program Description

Program Initiative

Results/Findings

Data for This Report

(1) The Number of Firms That Inquired About the Program

(2) The Number of Petitions Filed Under Section 251

(3) The Number of Petitions Certified and Denied

(4) The Average Time for Processing Petitions

(5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States

(6) The Number of Firms That Received Assistance in Preparing Their Petitions

(7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals)

(8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce

(9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification

(10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-Year Period Following Completion

(11) The Financial Assistance Received by Each Firm Participating in the Program

(12) The Financial Contribution Made by Each Firm Participating in the Program

(13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program

(14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed

Conclusion

Introduction

This report is provided in compliance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to provide an annual report on the Trade Adjustment Assistance for Firms (TAAF) program by the 15th of December each year. Section 1866 of the TGAAA states:

IN GENERAL.—Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341
et seq.
) for the preceding fiscal year.

This report will provide findings and results to the extent that the data is available on the following 14 measures:

1. The number of firms that inquired about the program.

2. The number of petitions filed under section 251.

3. The number of petitions certified and denied.

4. The average time for processing petitions.

5. The number of petitions filed and firms certified for each congressional district of the United States.

6. The number of firms that received assistance in preparing their petitions.

7. The number of firms that received assistance developing business recovery plans (Adjustment Proposals).

8. The number of Adjustment Proposals approved and denied by the Secretary of Commerce.

9. Sales, employment, and productivity at each firm participating in the program at the time of certification.

10. Sales, employment, and productivity at each firm upon completion of the program and each year for the two-year period following completion.

11. The financial assistance received by each firm participating in the program.

12. The financial contribution made by each firm participating in the program.

13. The types of technical assistance included in the Adjustment Proposals of firms participating in the program.

14. The number of firms leaving the program before completing the project or projects in their Adjustment Proposals and the reason the project was not completed.

Program Description

The TAAF program is one of four Trade Adjustment Assistance (TAA) programs authorized under the Trade Act of 1974 (19 U.S.C. 2341
et seq.
) (Trade Act). The responsibility for administering the TAAF program is delegated by the Secretary of Commerce to the Economic Development Administration (EDA). TAAF program provides technical assistance to manufacturers and service firms affected by import competition to help the firms develop and implement projects to regain global competitiveness.

The mission of the TAAF Program is to help U.S. firms regain competitiveness in the global economy. Import-impacted U.S. manufacturing, production, and service firms can receive matching funds for projects that expand markets, strengthen operations, and sharpen competitiveness through TAAF. The program provides assistance in the development of business recovery plans, which are known as Adjustment Proposals under Section 252 of the Trade Act, and matching funds to implement projects outlined in the Adjustment Proposals.

The TAAF Program supports a national network of 11 non-profit or university-affiliated Trade Adjustment Assistance Centers (TAACs) to help U.S. manufacturing, production, and service firms in all fifty states, the District of Columbia, and the Commonwealth of Puerto Rico. Firms work with the TAACs to apply for certification for TAAF assistance, and prepare and implement strategies to guide their economic recovery.

The other TAA programs are TAA for Workers, Farmers, and Communities, which are administered by the Departments of Labor, Agriculture, and Commerce through EDA, respectively.

Exhibit 1: TAA Programs

EN26JA11.011

Program Initiative

As noted above, the TAAF Program provides technical assistance in the development and implementation of Adjustment Proposals. Projects are aimed at improving a firm's competitive position. Specifically, funds are applied toward the cost of consultants, engineers, designers, or industry experts for improvement projects in targeted areas that can better a firm's position, such as engineering, information technology, management, market development, marketing, new product development, quality improvement, and sales. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants.

To certify a firm as eligible to apply for adjustment assistance, the Secretary must determine that three conditions are met:

1. A significant number or proportion of the workers in the firm have been or are threatened to be totally or partially separated;

2. Sales and/or production of the firm have decreased absolutely, or sales and/or production of an article or service that accounted for at least 25 percent of total production or sales of the firm during the 12, 24, or 36 months preceding the most recent 12, 24, or 36-month period for which data are available have decreased absolutely; and

3. Increased imports of articles like or directly competitive with articles produced or services provided by the firm have “contributed importantly” to both the layoffs and the decline in sales and/or production.

BILLING CODE 3510-24-P
Exhibit 2: TAACs and Their Respective Service Areas

EN26JA11.012

The main responsibilities of the TAACS include:

• Assisting firms in preparing their petitions for TAAF. Firms are not charged for any assistance related to preparing a petition.

• Once a petition has been approved, TAACs work closely with firm management to identify the firm's strengths and weaknesses and develop a customized Adjustment Proposal designed to stimulate recovery and growth. The program pays up to 75% of the cost of developing an Adjustment Proposal and the firm must pay the rest. EDA must approve all Adjustment Proposals to ensure they conform to statutory and regulatory requirements.

• After an Adjustment Proposal has been approved, company management and TAAC staff jointly identify consultants with the specific expertise required to assist the firm.

• Under the TAAF Program, EDA shares the cost of Adjustment Proposal task implementation. For an Adjustment Proposal in which proposed tasks total $30,000 or less, EDA will provide 75 percent of the cost and the firm is responsible for the balance. For an Adjustment Proposal in which proposed tasks total over $30,000, EDA and the firm share the implementation costs evenly; EDA pays 50 percent of the total cost and the firm pays 50 percent. Due to limited program funding, EDA limits its share of technical assistance to a certified firm to $75,000. After a competitive procurement process, the TAAC and the firm generally contract with private consultants to implement the Adjustment Proposal.

There are three main phases to receiving technical assistance under the program. The phases are (1) petitioning for certification, (2) recovery planning, and (3) project implementation.

Exhibit 3: Program Phases

EN26JA11.013

Phase I—Petitioning for Certification

The first step to receiving assistance is the submission of a petition to EDA to be certified as a trade impacted firm. This petition is Form ED-840P “Petition by a Firm for Certification of Eligibility to Apply for Trade Adjustment Assistance” and any supporting documentation. Certification specialists within the TAACs generally work with the firm at no cost to complete and submit a petition to EDA.

Upon receipt of the petition, EDA performs a thorough analysis of the petition and supporting documents to determine if the petition is complete and may be accepted. EDA is required to make a final determination on the petition within 40 days of accepting a petition.
1

1
As of May 17, 2009, the deadline for making a final determination is 40 days. Before May 17, 2009, EDA had 60 days to make a determination.

Phase II—Recovery Planning

Certified firms then work with TAAC staff to develop a customized Adjustment Proposal and submit to EDA for approval. Once an Adjustment Proposal has been submitted, EDA is required to make a final determination within 60 days.

Phase III—Adjustment Proposal Implementation

The firm works with consultants to implement projects in an approved Adjustment Proposal. As projects are implemented and if the firm is satisfied with the work, the firm will first pay their match to the consultant, and then send a notice to the TAAC stating that they are satisfied with the work and that they have paid their matching share. The TAAC will then pay the Federal matching share. Firms have up to five years from the date of an Adjustment Proposal's approval to implement it, unless they receive approval for an extension. Generally, firms complete the implementation of their Adjustment Proposals over a two-year period.

Results/Findings

Data for This Report

The data used in this report was collected from the TAACs as part of their reporting requirements, petitions for certification, and the Adjustment Proposals submitted by the TAACs on behalf of firms. Data from these sources were recorded into a central database by Eligibility Reviewers at EDA. Results for average processing times and the number of approved and denied petitions and Adjustment Proposal were derived by EDA.

(1) The Number of Firms That Inquired About the Program

In FY 2010, TAACs received 3,446 inquiries about the TAAF Program.

Exhibit 4: Inquiries about the TAAF Program by TAAC

TAAC

Number of firms that inquired about the TAAF
Program

Great Lakes
106

Mid-America
137

MidAtlantic
376

Midwest
82

New England
163

New York State
134

Northwest
806

Rocky Mountain
351

Southeastern
42

Southwest
280

Western
969

Total
3,446

(2) The Number of Petitions Filed Under Section 251

(3) The Number of Petitions Certified and Denied

(4) The Average Time for Processing Petitions

In FY 2010, 305 petitions were filed under Section 251 of the Trade Act, up an additional 27 petitions, a 10 percent increase compared to the number of petitions filed in FY 2009. EDA certified 330 petitions, up an additional 114 petitions, a 53 percent increase compared to the number of certifications in FY 2009. Petitions are certified on a rolling basis throughout the year. Petitions certified in FY 2010 may be the result of those filed or accepted in FY 2009; and petitions filed or accepted in FY 2010 may not result in certification in FY 2010.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions in FY 2010. Although there was a spike in petitions, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for

filing as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement.

Exhibit 5: Petition Activity: FY 2008-FY 2010

FY

Number of
petitions filed

Number of
petitions
accepted for
filing

Number of
petitions
certified

Number of
petitions
denied

Average days between
acceptance and certification

Average days between filing and
certification

2008
189
190
188
0
45
N/A

2009
278
244
216
1
44
89

2010
305
325
330
0
40
74

% Change (2009 to 2010)
10%
33%
53%
N/A
(9)%
(17)%

Exhibit 6: Petitions Filed by TAAC: FY 2008-FY 2010

EN26JA11.014

Exhibit 7: Petitions Accepted by TAAC: FY 2008-FY 2010

EN26JA11.015

Exhibit 8: Petitions Certified by TAAC: FY 2008-FY 2010

EN26JA11.016

Exhibit 9: Petitions Filed, Accepted and Certified by TAAC: FY 2010
2

2
Petitions are certified on a rolling basis throughout the year, therefore activity in these categories may not result in certification within the same FY. These totals represent the activity under each category within FY 2010.

TAAC

Number of

petitions filed
2

Number of
petitions
accepted for

filing
2

Number of
petitions
certified

Great Lakes
14
16
19

Mid-America
26
30
28

MidAtlantic
57
59
58

Midwest
33
36
40

New England
53
56
56

New York State
22
26
25

Northwest
19
22
21

Rocky Mountain
17
16
18

Southeastern
33
30
30

Southwest
23
25
23

Western
8
12
12

Total
305
328
330

Exhibit 10: Petitions Filed, Accepted, and Certified by TAAC: FY 2010

EN26JA11.017

Exhibit 11: Firms Certified for TAAF by Industry: FY 2010

The majority of petitions certified for TAAF were submitted by firms in the manufacturing industry. Firms in wholesale trade and technical services rounded out the top three industries. Approximately 7 percent of firms certified in FY 2010 were service sector firms. Demand from service firms in FY 2011 is likely to increase at the same rate as FY 2010.

EN26JA11.018

(5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States

Exhibit 12: Petitions Filed by Congressional District: FY 2010

Congressional district(s)
No. of petitions filed

AK

At Large
1

AL

4
1

AR

1
1

2
4

3
2

AZ

5
1

6
1

CA

13
1

30
1

32
1

34
1

43
1

CO

1
2

2
2

3
3

4
1

5
1

CT

1
2

2
2

5
1

6
1

FL

10
1

21
1

22
1

24
1

GA

2
2

5
1

6
1

7
1

9
1

HI

1
1

ID

1
3

IL

3
2

4
1

5
3

6
3

8
1

10
1

13
1

14
4

16
1

17
1

IN

2
1

7
1

8
1

13
1

KS

1
2

2
2

3
1

4
2

KY

1
1

2
2

3
1

LA

2
2

3
3

6
1

7
1

MA

1
4

3
3

4
3

5
3

6
3

7
3

9
4

10
2

MD

2
1

4
1

ME

1
3

2
3

MI

1
1

7
1

9
2

11
3

12
1

MN

3
2

4
1

5
1

6
1

7
1

MO

1
1

2
1

4
1

5
2

6
1

7
4

8
2

MS

1
1

MT

At Large
3

NC

7
2

8
1

9
1

10
1

11
1

12
1

ND

1
3

NH

1
4

NJ

8
1

12
1

NY

1
1

3
1

8
2

20
2

22
1

25
6

26
4

27
1

28
2

29
2

OH

4
1

14
1

16
1

OK

1
5

2
1

3
3

OR

3
1

4
2

PA

3
3

4
1

5
2

6
1

7
3

8
2

9
2

10
2

11
8

12
1

13
2

15
8

16
3

17
6

18
1

19
6

RI

1
8

2
3

SC

2
2

3
1

5
3

6
2

SD

At Large
1

TN

4
1

6
1

TX

3
1

12
4

13
1

15
1

UT

1
1

2
1

3
1

VA

4
1

6
1

VT

1
1

WA

4
1

5
2

6
2

7
2

9
2

WI

1
1

4
1

5
4

6
2

7
1

Exhibit 13: Petitions Certified by Congressional District: FY 2010

Congressional district(s)
No. of petitions certified

AK

At Large
2

AL

4
1

AR

1
1

2
4

3
2

AZ

4
1

CA

7
1

20
1

26
1

30
1

31
1

32
1

34
1

43
1

48
1

CO

1
1

2
2

3
3

4
1

5
1

6
1

CT

1
2

2
2

5
1

6
1

FL

10
1

22
1

24
1

GA
6

2
2

3
1

5
1

6
1

9
1

HI

1
2

IA

3
1

ID

1
3

IL

3
2

4
2

5
3

6
4

7
1

8
2

10
1

13
1

14
5

16
1

17
1

IN

2
1

7
1

8
1

13
1

KS

1
2

2
1

3
1

4
2

KY

1
1

3
1

LA

2
2

3
2

6
1

7
1

MA

1
4

3
4

4
3

5
3

6
3

7
3

9
5

10
2

MD

2
1

4
1

ME

1
3

2
3

MI

1
1

7
1

9
2

10
1

11
4

12
1

MN

2
2

3
1

4
1

5
1

6
1

MO

1
2

2
1

3
1

4
2

5
2

6
1

7
5

8
1

MS

1
1

MT

At Large
5

NC

1
1

5
1

7
2

9
1

10
2

11
1

12
1

ND

1
1

At Large
1

NH

1
5

2
1

NY

1
1

3
1

8
1

20
3

25
6

26
5

27
1

28
4

29
3

OH

3
1

4
1

8
1

10
1

14
1

16
1

OK

1
5

2
2

3
2

OR

3
1

4
2

PA

3
3

4
1

6
3

7
4

8
2

9
2

10
3

11
7

12
1

13
1

15
8

16
2

17
7

18
1

19
8

RI

1
8

2
3

SC

2
1

3
1

5
2

6
2

SD

At Large
1

TN

4
1

6
1

TX

3
1

12
4

15
1

16
1

21
1

UT

1
1

2
1

3
2

28
1

VA

4
1

6
2

WA

4
1

5
2

6
1

7
3

9
1

WI

3
1

4
1

5
5

6
3

(6) The Number of Firms that Received Assistance in Preparing Their Petitions

In FY 2010, on average, 232 firms received assistance in preparing petitions per quarter. The total number of firms that received technical assistance varies each quarter as assistance is provided throughout the year. A firm receiving assistance in one quarter may continue to receive assistance in the following quarter.

Exhibit 14: Petition Assistance Activity per Quarter: FY 2010

TAAC

Average No. of firms receiving assistance with preparing petitions
(per quarter)

Great Lakes
8

Mid-America
61

MidAtlantic
10

Midwest
49

New England
9

New York State
15

Northwest
15

Rocky Mountain
21

Southeastern
20

Southwest
5

Western
19

Total
232

(7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals)

In FY 2010, on average, 146 firms received assistance in developing Adjustment Proposals; and 690 firms received assistance in the implementation of Adjustment Proposal plans per quarter. The total number of firms that received technical assistance varies each quarter as assistance is provided throughout the year. A firm receiving assistance in one quarter may continue to receive assistance in the following quarter.

Exhibit 15: Adjustment Proposal Development Activity per Quarter: FY 2010

TAAC

Average No. of firms receiving assistance with adjustment proposal development
(per quarter)

Average No. of firms receiving assistance with adjustment proposal implementation
(per quarter)

Great Lakes
4
58

Mid-America
14
63

MidAtlantic
13
85

Midwest
13
64

New England
16
103

New York State
13
30

Northwest
5
61

Rocky Mountain
18
79

Southeastern
21
54

Southwest
16
54

Western
13
39

Total
146
690

(8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce

In FY 2010, EDA approved all 265 Adjustment Proposals that were submitted; an additional 93 business

recovery plans, a 54 percent increase as compared to FY 2009.

Exhibit 16: Summary of Adjustment Proposals Approved: FY 2008-FY 2010

FY
Number of adjustment proposals approved

Total
government share
(millions)

Total firm share
(millions)

Total projected adjustment proposal costs
(millions)

Average government assistance per firm

2008
139
$7.9
$7.5
$15.4
$56,835

2009
172
$10.3
$9.8
$20.2
$59,884

2010
265
$16.4
$15.6
$32.1
$61,958

% Change (2009 to 2010)
54%
59%
59%
59%
3%

Exhibit 17: Adjustment Proposals Approved by TAAC: FY 2008-FY 2010

EN26JA11.019

Exhibit 18: Adjustment Proposals Approved by TAAC: FY 2010

TAAC

Number of
adjustment proposals approved

Great Lakes
24

Mid-America
25

MidAtlantic
29

Midwest
40

New England
48

New York State
14

Northwest
20

Rocky Mountain
17

Southeastern
23

Southwest
16

Western
9

Total
265

(9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification

The average sales, employment and productivity of firms certified into the program in FY 2010 was higher than that of firms certified in FY 2009. For the purposes of this report, productivity is defined as net sales per employee. Since the certified firms are in various industries, which have a variety of ways to measure productivity, sales per employee was chosen as the productivity measure. This measure is used because it can be generally applied to all certified firms.

Exhibit 19: Comparison of Average Sales, Employment, and Productivity at Firms at the Time of Certification: FY 2008-FY 2010

FY
Average sales

Average
employment

Average
productivity

2008
$13,081,993
82
$159,537

2009
$10,338,422
79
$130,866

2010
$19,137,139
138
$138,675

% Change (2009 to 2010)
85%
74%
15%

Exhibit 20: Summary Comparison of Average Sales, Employment, and Productivity for Firms at the Time of Certification by TAAC: FY 2010

TAAC
Average sales

Average
employment

Average
productivity

Great Lakes
$35,127,822
177
$198,462

Mid-America
10,265,214
88
116,650

MidAtlantic
15,122,655
89
169,917

Midwest
22,062,757
114
193,533

New England
7,632,080
51
148,649

New York State
14,585,421
91
160,279

Northwest
8,720,395
72
121,117

Rocky Mountain
43,725,204
203
215,395

Southeastern
11,052,021
68
162,530

Southwest
7,529,645
366
20,573

Western
34,685,316
196
176,966

Total
19,137,139
138
138,675

Exhibit 21: Summary of Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification: FY 2010

Firm No.
Sales ($)
Employment
Productivity ($)

—2118051509
$5,333,040
23
$231,871

—2111249509
1,208,258
7
172,608

—2104802926
2,455,461
39
62,961

—2103906847
1,328,000
10
132,800

—2083450313
42,874,044
185
231,752

—2073175636
16,101,898
137
117,532

—2068287522
11,938,999
31
385,129

—2059136725
60,764,758
181
335,717

—2023874564
2,518,000
21
119,905

—2010236141
3,019,178
25
120,767

—2007895508
613,906
6
102,318

—1997824464
4,171,401
41
102,795

—1990457870
7,559,350
98
77,136

—1973580510
45,487,139
457
99,534

—1958214488
7,467,369
49
153,429

—1956376675
1,780,606
24
74,973

—1941157067
612,124
5
122,425

—1899532397
2,037,257
4
479,355

—1898904502
315,272
5
63,054

—1884551502
9,040,000
58
155,862

—1880843073
5,265,708
41
128,432

—1838877792
3,483,609
31
112,374

—1828369285
17,140,309
162
105,804

—1759758341
6,010,971
50
120,219

—1742177269
9,976,653
62
160,914

—1740960093
13,154,390
45
292,320

—1740086291
26,940,727
147
183,270

—1739842518
2,310,068
27
85,558

—1704715418
12,875,152
171
75,293

—1661485163
3,393,780
31
109,477

—1635069591
7,537,000
51
147,784

—1542448328
9,922,578
120
82,688

—1520701304
4,697,310
77
61,004

—1484222959
1,444,014
11
131,274

—1471661205
6,322,000
40
158,050

—1461073515
92,484,000
302
306,238

—1454186553
282,778
4
70,695

—1432738384
3,528,890
33
106,936

—1427334167
37,484,000
359
104,412

—1417226723
983,006
11
89,364

—1281724603
4,028,000
38
106,000

—1243439974
22,596,956
99
228,252

—1241427110
10,487,391
104
100,840

—1187326382
707,341
4
176,835

—1169045359
5,046,000
43
117,349

—1129223838
10,578,429
104
101,716

—1128703111
1,354,620
14
96,759

—1126326868
2,212,064
19
116,424

—1116912576
5,470,620
25
218,825

—1097459358
92,988,380
461
201,601

—1086130450
26,260,884
105
250,509

—1038621441
14,126,803
103
137,153

—1004329971
17,601,176
165
106,674

—1000240433
15,690,666
102
153,830

—999105849
2,547,000
21
121,286

—995226650
4,930,000
24
205,417

—947962116
4,549,568
34
133,811

—934975561
4,495,541
39
115,270

—885365563
3,121,641
34
91,813

—857031178
11,353,000
99
114,677

—852461053
932,387
143
6,520

—843055880
1,606,394
36
44,622

—840166025
10,585,957
109
97,119

—806944983
9,609,077
85
113,048

—794575305
1,406,804
3
468,935

—788484912
15,056,348
108
139,411

—779297214
108,005,394
736
146,746

—759779489
43,715,000
160
273,219

—726121634
1,660,145
14
118,582

—702330654
12,073,751
125
96,590

—692565138
6,173,766
23
268,425

—681139744
13,963,911
85
164,281

—674357347
5,304,000
52
102,000

—672809309
10,311,629
28
368,272

—654901806
10,811,000
53
203,981

—622207779
3,122,027
41
76,147

—591889087
2,346,285
237
9,900

—585725005
16,463,961
85
193,694

—560318612
4,131,687
22
190,664

—554924474
171,103
3
57,034

—550588573
943,348
10
97,554

—543809333
9,295,728
25
371,829

—504989951
25,003,966
78
320,235

—436909589
11,245,912
337
33,371

—429565845
194,828
8
24,354

—426260672
677,432
12
56,453

—413262258
16,722,097
104
160,789

—370373838
2,195,090
14
156,792

—356857349
8,882,300
105
84,593

—347882712
10,155,480
508
19,991

—334795766
2,737,505
31
88,307

—334691552
2,927,563
25
117,103

—325246775
16,232,121
108
150,297

—322389137
3,344,284
32
104,509

—311586268
939,857
5
187,971

—297716183
34,926,049
192
181,509

—263774128
4,637,869
42
110,425

—229337262
1,529,815
18
84,990

—222714747
10,140,682
157
64,590

—172876934
3,873,669
41
94,480

—167523770
1,377,000
15
91,800

—138492743
10,056,766
35
287,336

—126595790
5,781,000
116
49,836

—111557939
14,913,000
108
138,083

—106605238
94,110,272
316
297,817

—80321537
2,496,868
28
88,135

—75360888
3,998,950
21
190,426

—72799676
14,999,842
67
223,878

—52573030
3,731,345
38
99,503

—41850669
20,268,686
98
206,823

—2420921
1,191,242
13
91,634

—438018
32,608,321
116
281,106

16573262
2,803,311
21
133,491

22130970
8,378,094
55
152,329

48907681
1,447,117
11
136,779

83564872
1,099,835
13
84,603

85474563
3,475,788
50
69,516

92019186
4,882,733
27
180,842

98077462
6,103,725
66
92,481

132107069
4,875,150
55
88,639

215326868
8,232,877
105
78,408

235292569
201,980,000
934
216,253

278618212
313,150
5
62,630

294844867
613,236
10
61,324

299352457
1,090,852
14
77,918

300171006
2,425,844
22
112,830

370006245
45,317,479
260
174,634

375977128
3,275,986
30
109,200

416345364
6,160,767
431
14,294

431287226
6,578,244
344
19,123

434352811
853,056
19
43,972

447765204
4,050,320
32
126,573

456495450
22,274,281
77
289,276

457871548
166,600,000
660
252,424

460220479
5,323,864
37
143,888

461983321
9,815,491
70
140,221

488397464
3,814,820
2122
1,798

507638153
1,168,480
14
83,463

605479507
3,393,771
35
96,965

695555564
3,774,516
18
209,695

709865456
2,505,135
34
73,680

725507790
134,197,000
914
146,824

737303963
7,042,585
40
176,065

742517299
3,196,691
52
61,475

765990946
11,298,809
110
102,716

769259150
7,770,655
16
485,666

774637751
14,856,715
62
239,624

807998327
19,015,349
846
22,477

816528506
9,998,096
41
242,085

821736854
4,502,400
57
78,989

831153636
884,344
130
6,803

870096733
10,389,478
82
126,701

916493089
5,939,422
57
104,200

920775500
13,044,545
691
18,878

921991757
23,726,780
113
209,972

923653641
2,722,000
18
151,222

931084257
19,809,756
57
347,540

931353658
13,942,054
69
202,059

936755382
1,990,490
24
82,937

938704928
9,793,612
126
77,727

952223001
3,371,521
31
108,759

974323566
7,510,846
78
96,293

998418962
4,612,000
35
131,771

1008993417
1,065,256
21
50,726

1036673242
86,665,926
458
189,227

1047544912
12,706,348
167
76,086

1079241463
639,588
4
159,897

1080100154
13,493,317
86
156,899

1157306813
23,214,000
204
113,794

1170995123
1,954,476
13
150,344

1176704596
1,551,985
23
68,369

1190314840
16,885,829
808
20,898

1190725189
6,360,142
68
93,532

1199996737
12,773,634
66
193,540

1208792226
2,043,850
21
97,326

1237998436
14,291,766
134
106,655

1246033896
15,392,000
58
265,379

1246285115
11,261,303
61
184,612

1246302114
40,310,044
3115
12,941

1246892583
5,306,225
43
123,401

1247153819
7,454,736
63
118,329

1247167949
57,390,191
259
221,584

1247662700
105,504,196
395
267,099

1247670190
112,370,000
998
112,595

1247750161
158,893
4
39,723

1247758341
5,834,248
68
85,798

1247766035
5,108,385
34
150,247

1249481184
1,492,256
12
124,355

1250022715
7,189,955
76
94,605

1250103435
28,962,384
187
154,879

1250105714
4,800,000
53
90,566

1250174776
20,457,000
124
164,976

1250186876
88,739,000
333
266,483

1250192980
433,632
4
108,408

1250257754
3,281,352
41
80,033

1251302450
4,018,650
40
100,466

1252079576
110,491,969
497
222,318

1252436282
217,035
2
108,518

1253720272
14,816,335
77
192,420

1254322240
100,962,620
320
315,508

1255105505
465,216
5
93,043

1256321189
1,731,646
20
86,582

1256768152
2,917,626
34
85,813

1256819844
52,569,607
195
269,588

1256829696
5,821,437
62
93,894

1256861475
511,901
4
127,975

1256921129
7,230,791
24
301,283

1257376509
1,926,715
25
77,378

1257516574
10,874,000
99
109,838

1258743222
8,813,262
42
209,840

1260826068
1,978,584
22
89,936

1262959682
15,889,753
86
184,765

1264723282
3,640,000
20
182,000

1266339861
6,975,566
45
155,013

1266353281
11,331,686
135
83,938

1266507166
640,737
9
71,193

1266857885
1,625,000
19
85,526

1266942829
7,291,000
118
61,788

1266943121
16,868,347
115
146,173

1266947270
1,876,145
32
58,630

1267027715
1,656,638
29
57,622

1267462374
663,920
10
66,392

1267470068
10,547,269
76
138,780

1267543458
6,961,334
90
77,348

1267648076
3,323,141
26
127,813

1267651976
10,210,351
71
143,808

1268086064
10,016,000
34
294,588

1268146310
3,392,384
45
75,386

1268157420
25,542,464
321
79,572

1268224827
1,532,111
8
191,514

1268670167
355,324,231
1143
310,870

1268744533
2,474,000
43
57,535

1268751244
1,688,308
16
105,519

1268925702
1,794,208
14
128,158

1268951389
22,679,000
152
149,204

1269004689
161,938
3
52,577

1269269057
4,748,940
20
237,447

1269271489
3,866,340
30
128,878

1269291616
2,906,220
34
85,477

1269368306
20,343,681
108
188,367

1269436574
991,000
203
4,882

1269956130
48,092,000
352
136,625

1270041484
2,214,350
21
105,045

1270057007
11,118,850
90
123,543

1270480498
6,162,659
69
89,314

1270494120
7,701,343
64
120,333

1271250626
8,126,174
98
82,920

1271253012
3,574,300
26
137,473

1271254787
2,428,448
17
142,850

1271444344
3,399,635
38
89,464

1273082444
1,757,269
19
92,488

1273151594
2,636,265
18
146,459

1273511065
3,415,979
38
89,894

1273604467
935,330
16
59,386

1273670517
1,588,074
9
176,453

1274280512
185,220
1
185,220

1274377941
59,439,842
223
266,546

1274732253
4,418,363
33
133,890

1274891083
8,212,101
89
92,271

1274904043
7,013,000
55
127,509

1274977621
10,041,631
107
93,847

1274982453
24,617,949
165
149,200

1275498608
8,194,926
82
99,938

1275501481
8,854,439
42
210,820

1275511967
8,679,385
47
186,333

1276001619
1,921,000
10
192,100

1276010273
837,229
8
104,654

1276103578
6,547,098
43
152,258

1276522602
1,096,375
14
78,313

1276536764
1,760,404
7
251,486

1276720693
23,845,594
153
155,854

1276793499
912,115
8
114,014

1276868869
90,881,308
633
143,572

1276881128
6,249,947
65
96,153

1277148172
4,047,406
51
79,361

1277321808
29,153,315
202
144,323

1277389938
1,154,435
11
104,949

1277834733
32,327,732
144
225,280

1279745224
209,812,000
990
211,931

1280248531
9,645,673
48
200,952

1280327279
5,206,736
17
306,279

1280333008
1,855,202
19
97,642

1280413966
12,554,000
181
69,359

1280432405
9,508,149
73
130,249

1280778333
15,244,156
65
234,525

1281015259
4,717,220
56
84,236

1281019133
4,188,055
23
182,089

1281025757
4,588,575
31
148,019

1281031551
844,748
6
151,389

1281037430
686,821
8
85,853

1281105917
5,609,499
23
243,891

1281107514
2,896,917
16
180,157

1282051642
10,719,785
111
96,575

1282140686
4,415,042
35
125,534

1288447499
9,275,776
68
136,408

1294227725
1,198,400
19
63,074

1295078554
69,520,128
245
283,756

1350478164
7,764,988
73
106,735

1364503640
2,604,710
13
200,362

1397900651
20,812,200
72
289,058

1438893258
709,112
9
76,661

1442035945
104,000
62
1,677

1456199116
14,937,310
71
210,385

1461210273
688,001
5
137,600

1489228822
34,534,810
222
155,562

1508209231
58,126,775
247
235,331

1528554001
34,240,000
191
179,267

1531789493
6,468,184
656
9,860

1535674410
83,743,273
391
214,177

1565479699
4,024,755
31
129,831

1569320561
2,785,528
32
87,048

1605100384
1,196,061
172
6,954

1625376772
5,722,000
63
90,825

1658462633
191,092,628
608
314,297

1739021199
7,540,427
61
123,614

1751920052
4,841,397
70
69,163

1866991437
2,250,498
36
62,514

1871304606
1,807,141
17
106,302

1874228463
10,409,004
76
136,961

1919568775
1,769,572
18
98,310

1974568513
430,401
16
27,768

1974830581
1,518,225
16
94,889

1976603120
4,028,269
37
108,872

1995751409
14,548,104
254
57,276

2012969340
24,295,000
185
131,324

2044046179
27,293,631
110
248,124

2050270334
59,757,408
192
311,237

2071124572
30,636,210
212
144,510

2086748305
37,808,432
175
216,048

2109627131
11,900,000
75
158,667

(10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-year Period Following Completion

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.9 million, average employment was 73, and average productivity was $150,674 (sales per employee).

Between FY 2008 and FY 2009, one year after completing the program, firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reports that nationwide for the manufacturing industry, average employment decreased 12 percent and

average productivity increased by 4 percent.

Between FY 2008 and FY 2010, two years after completing the program, firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reports that nationwide for the manufacturing industry, average employment decreased 12 percent and average productivity increased by 9 percent.

For the purposes of this report, data was reported only for firms where all data was available. Since the certified firms are in various industries, which have a variety of ways to measure productivity, sales per employee was chosen as the productivity measure. This measure is used because it can be generally applied to all certified firms. However, BLS' productivity measures relate output to the labor hours used in the production of that output.

Exhibit 22: Summary of Average Sales, Employment, and Productivity at Firms Upon Completion of the Program and the One-Year Period Following Completion

Program completion
Average sales

Average
employment

Average
productivity

Completion (FY 2008)
$10,999,200
73
$150,674

1st Year Following Completion (FY 2009)
$11,079,460
66
$167,871

% Change 1st Year Following Completion
1%
−10%
11%

Exhibit 23: Summary of Average Sales, Employment, and Productivity at Firms Upon Completion of the Program and the Two-Year Period Following Completion

Program completion
Average sales

Average
employment

Average
productivity

Completion (FY 2008)
$10,999,200
73
$150,674

2nd Year Following Completion (FY 2010)
$9,498,479
61
$155,713

% Change 2nd Year
Following Completion

−14%
−16%
3%

Exhibit 24: Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Two-Year Period Following Completion

Firm ID
Average sales at completion (FY 2008)
Average sales 1st yr following completion (FY 2009)
Average sales 2nd yr following completion (FY 2010)
Average employment at completion (FY 2008)
Average employment 1st yr following completion (FY 2009)
Average employment 2nd yr following completion (FY 2010)
Average productivity at completion (FY 2008)
Average productivity 1st yr following completion (FY 2009)
Average productivity 2nd yr following completion (FY 2010)

FY08-01
$39,390,601
$37,698,350
$21,692,925
325
275
173
$121,202
$137,085
$125,393

FY08-05
10,630,000
10,800,000
4,800,000
64
55
38
166,094
196,364
126,316

FY08-03
28,400,000
31,500,000
25,150,000
190
180
158
149,474
175,000
159,177

FY08-04
5,130,000
5,800,000
5,325,204
33
35
31
155,455
165,714
171,781

FY08-02
16,500,000
17,800,000
17,000,000
53
55
56
311,321
323,636
303,571

FY08-23
3,000,000
2,000,000
2,000,000
25
25
23
120,000
80,000
86,957

FY08-24
7,500,000
7,000,000
7,020,687
67
65
65
111,940
107,692
108,011

FY08-20
2,000,000
1,000,000
2,400,000
21
10
22
95,238
100,000
109,091

FY08-25
4,200,000
4,000,000
4,200,000
33
31
33
127,273
129,032
127,273

FY08-26
1,700,000
1,100,000
1,200,000
9
9
9
188,889
122,222
133,333

FY08-21
6,056,458
5,500,000
3,006,918
27
31
21
224,313
177,419
143,187

FY08-28
3,070,000
3,080,000
2,300,000
19
18
15
161,579
171,111
153,333

FY08-22
10,200,000
9,000,000
10,000,000
58
55
57
175,862
163,636
175,439

FY08-27
18,750,000
17,000,000
18,500,000
86
80
85
218,023
212,500
217,647

FY08-30
275,000
248,000
229,000
6
8
7
45,833
31,000
32,714

FY08-29
313,000
416,000
533,000
22
12
12
14,227
34,667
44,417

FY08-34
3,081,000
2,220,000
1,597,000
39
25
22
79,000
88,800
72,591

FY08-31
17,500,000
14,200,000
10,900,000
195
160
120
89,744
88,750
90,833

FY08-32
3,210,000
4,273,000
4,637,000
36
41
35
89,167
104,220
132,486

FY08-36
18,592,000
18,227,000
16,852,000
130
105
125
143,015
173,590
134,816

FY08-37
354,000
859,000
1,117,000
5
7
6
70,800
122,714
186,167

FY08-33
30,000,000
40,000,000
40,000,000
200
100
120
150,000
400,000
333,333

FY08-35
14,300,000
14,200,000
13,000,000
38
35
37
376,316
405,714
351,351

FY08-38
6,500,000
7,100,000
8,400,000
50
68
80
130,000
104,412
105,000

FY08-39
37,000,000
40,000,000
43,000,000
440
429
439
84,091
93,240
97,950

FY08-41
7,500,000
8,900,000
9,400,000
25
29
31
300,000
306,897
303,226

FY08-40
8,500,000
10,500,000
10,750,000
15
25
28
566,667
420,000
383,929

FY08-44
911,948
881,669
430,401
20
16
11
45,597
55,104
39,127

FY08-42
1,972,425
1,629,361
945,420
18
14
14
109,579
116,383
67,530

FY08-43
19,493,382
15,767,000
19,000,000
88
86
86
221,516
183,337
220,930

FY08-47
520,610
452,662
301,635
8
6
5
65,076
75,444
60,327

FY08-49
4,250,000
3,386,346
1,818,408
22
19
15
193,182
178,229
121,227

FY08-57
769,184
816,322
674,255
11
11
10
69,926
74,211
67,426

FY08-56
2,960,719
3,027,576
2,292,154
37
37
33
80,019
81,826
69,459

FY08-53
7,278,583
6,535,827
4,675,983
43
36
36
169,269
181,551
129,888

FY08-52
6,160,677
6,101,363
4,593,196
34
26
27
181,196
234,668
170,118

FY08-54
41,000,000
40,000,000
22,500,000
75
70
75
546,667
571,429
300,000

FY08-55
29,000,000
28,000,000
18,700,000
200
204
147
145,000
137,255
127,211

Total
10,299,200
11,079,460
9,498,479
73
66
61
150,674
167,871
155,713

(11) The Financial Assistance Received by Each Firm Participating in the Program

(12) The Financial Contribution Made by Each Firm Participating in the Program

In FY 2010, firms received $8.7 million in technical assistance provided by the TAACs to prepare petitions; and in the development and implementation of Adjustment Proposals (often through business consultants and other experts). Firms participating in the program contributed $6.1 million towards the development and implementation of Adjustment Proposals. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants.

Exhibit 25: Summary of TAAF Program Financial Assistance by TAAC: FY 2010

TAAC
TAAC assistance to firms
Amount paid to consultants by the TAACs
Total TAAC assistance to firms (TAACs + consultants)
Financial contribution by the firms

Great Lakes
$196,060
$677,560
$873,620
$646,809

Mid-America
93,836
466,399
560,235
466,399

MidAtlantic
309,655
910,562
1,220,217
910,562

Midwest
178,428
705,954
884,382
631,906

New England
229,249
1,283,189
1,512,438
1,256,739

New York State
152,425
366,230
518,655
271,104

Northwest
53,257
499,053
552,310
443,905

Rocky Mountain
493,122
433,261
926,383
433,261

Southeastern
243,177
514,935
758,112
495,659

Southwest
128,997
453,751
582,748
373,376

Western
98,004
183,943
281,947
170,524

Total
2,176,210
6,494,837
8,671,047
6,100,244

(13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program

Firms proposed various types of projects in Adjustment Proposals. Marketing/sales projects are geared toward increasing revenue, whereas production/manufacturing projects tend to be geared toward cutting costs. Support system projects can provide a competitive advantage by either cutting costs or creating new sales channels. Management and financial projects are designed to improve management's decision making ability and business control. More than half of all firms proposed to implement marketing/sales or production/manufacturing projects. Sample projects are listed below in Exhibit 26.

Exhibit 26: Characteristics of Technical Assistance in Adjustment Proposals: FY 2010

Project classification
Sample types of projects
Number of adjustment proposal projects
Adjustment proposal project costs

Financial

• Accounting systems upgrade
• Cost control tracking system
• Automatic Data Processing development

30
$517,000

Management

• Strategic business planning
• Succession management
• Management development

79
1,987,100

Marketing/Sales

• Sales process training
• Market expansion and feasibility analysis
• Web site design and upgrade

228
11,416,092

Production

• Lean manufacturing and certification
• New product development
• Production and warehouse automation

215
11,918,300

Support Systems

• Enterprise Resource Planning
• MIS upgrades
• Computer Aided Design software
• Supply chain management software

162
6,984,400

Exhibit 27: Adjustment Proposals by Project Classification: FY 2010

EN26JA11.020

(14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed

In FY 2010, of the 102 firms that left the TAAF program, 57 completed the program and the remaining 45 firms left for the reasons listed below in Exhibit 28.

Exhibit 28: Summary of Firms Leaving the TAAF Program: FY 2010

Reason for leaving program

Number of
firms

Completed Assistance
57

Firm Filed Chapter 11
1

Firm Sold
2

Inadequate Funds for Project Implementation
4

Lost Interest in Program
4

Out of Business
11

Past 5-year Threshold
23

Total
102

Conclusion

TAAF effectively targeted small and medium sized firms FY 2010. The average sales, employment and productivity of firms certified into the program in FY 2010 was higher than that of firms certified in FY 2009. More than half of all firms proposed to implement a marketing/sales project or production/engineering project in their Adjustment Proposals.

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. BLS reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent.

Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days.

Dated: January 20, 2011.
Bryan Borlik,
Director, Trade Adjustment Assistance for Firms Program.

[FR Doc. 2011-1583 Filed 1-25-11; 8:45 am]
BILLING CODE 3510-24-P

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2011-1583. Public record. Not legal advice.