; (bb) flexibility in addressing the needs of different small- and medium-sized manufacturers; and (cc) a commitment to hiring for projects contractors that comply with the labor requirements described in paragraph (4)(B). (3) Subgrants for energy efficiency improvements (A) In general A qualified entity (including a partnership of 1 or more qualified entities under paragraph (2)(A)(ii)) that receives a grant under paragraph (1) shall act as a program manager to distribute subgrants to small- and medium-sized manufacturers located in the State in which the program manager is located to carry out projects— (i) to improve the energy efficiency of the small- or medium-sized manufacturer