[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8865]


[[Page Unknown]]

[Federal Register: April 13, 1994]


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DEPARTMENT OF LABOR
[SGA No. DAA 94-006]

 

Job Training Partnership Act: Microenterprise Grant Program

agency: Employment and Training Administration, Labor.

action: Notice of availability of funds and solicitation for grant 
application (SGA).

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summary: The U.S. Department of Labor, Employment and Training 
Administration, under section 499 of the Job Training Partnership Act 
(JTPA), announces the availability of funds to implement and enhance 
community based microenterprise activities.
    The grants will provide training, technical assistance, and support 
to microenterprise owners or potential owners. It is anticipated that 
up to six (6) awards, contingent upon resources being available for 
this purpose, will be made in the range of $250,000 to $300,000 per 
grant. Awards will be made on a competitive basis.
    The duration of the grants will be for fifteen (15) months with the 
possibility of a one-year option. In order to receive a grant award, an 
applicant must include matching non-Federal contributions in an amount 
equal to 100 percent of Federal funds to be provided. All the 
information needed to submit a proposal is included in this 
announcement.

dates: Application for grant wards will be accepted commencing April 
13, 1994. The closing date for receipt of applications shall be June 
13, 1994, at 2 p.m. (Eastern Time).

addresses: Applications shall be mailed to the Division of Acquisition 
and Assistance, Attention: Brenda Banks, Reference: SGA/DAA 94-006, 
Employment and Training Administration, U.S. Department of Labor, room 
S-4302, 200 Constitution Avenue, NW., Washington, DC 20210.

for further information contact: Brenda Banks, Division of Acquisition 
and Assistance. Telephone (202) 219-8702 (this is not a toll free 
number).

supplementary information: The U.S. Department of Labor (DOL), 
Employment and Training Administration (ETA) is soliciting proposals on 
a competitive basis for grants for projects to implement and enhance 
community-based microenterprise activities. For purposes of this 
solicitation, the term ``microenterprise'' means a commercial 
enterprise with five (5) or fewer employees, one (1) or more of whom 
owns the enterprise, and each of the owners of the enterprise is 
economically disadvantaged, as defined in section 4(8) of JTPA.
    The intent of these grants is to provide effective business-related 
training and provide technical assistance and support to owners or 
potential owners of microenterprises. The grants are being awarded 
pursuant to section 499 of the Job Training Partnership Act (JTPA).
    This announcement consists of five parts: Part I--Background, Part 
II--Application Process, Part III--Statement of Work, Part IV--
Evaluation Criteria, and Part V--Reporting Requirements.

Part I--Background

    Pursuant to section 499 of JTPA, the Secretary of Labor awards 
grants to States to implement and enhance community-based 
microenterprise activities. Section 499 of JTPA also states that such 
activities shall be for the benefit of economically disadvantaged 
persons.
    Accordingly, ETA intends to allocate approximately $1.5 million to 
States to implement and enhance community-based microenterprise 
activities. The statute specifies that such funds shall be used 
(nothwithstanding the restrictions of section 141(q) of JTPA) to:

    (1) Train program staff in such entrepreneurial activities as 
business plan development, business management, resource inventory 
design, and marketing approaches, and other activities necessary to 
provide effective training to persons developing a microenterprise;
    (2) Provide to owners or potential owners of a microenterprise 
such technical assistance (including technical assistance with 
respect to business planning, securing funding, marketing, and 
production of marketing materials) and other assistance as may be 
necessary to develop microenterprise activities; and
    (3) Provide other microenterprise support (such as peer support 
program and counseling).

Part II--Application Process

A. Eligible Applicants

    Awards under this Solicitation will be made to ``States,'' as 
defined in section 4(22) and section 499(g)(2) of JTPA. For the 
purposes of this Solicitation, section 499(g)(2) entities shall 
include:


    1. Grantees designated under subsection (c) or (d) of section 
401 of JTPA to provide services to Indian reservations or Alaska 
Native villages, or a consortium of such grantees and the State; and
    2. Grantees designated under section 402(c) of JTPA to provide 
services to migrant seasonal farmworkers, or a consortium of such 
grantees and the State.


    A proposal shall be submitted by the Governor or, in the instance 
of a grantee designated under section 401 or 402, by the grantee. In 
the instance of a consortium between the State and section 401 and 402 
grantees, a proposal shall be accomplished by a letter from the 
Governor ratifying such an arrangement and specifying the agency 
primarily responsible for the conduct of the project.
    When the Governor submits a proposal on behalf of the State, he or 
she shall designate the agency which shall be responsible for 
conducting the project. No more than two proposals may be submitted per 
eligible applicant.
    A State may specify a political subdivision (county, city, town, 
township, parish village, etc.) or economic division such as a Service 
Delivery Area, an Enterprise Community or an Empowerment Zone as the 
focus of training activity in its proposal.

B. Submission of Proposals

    An original and three (3) copies of the proposal shall be 
submitted. The proposal shall consist of two (2) separate and distinct 
parts.
    Part I shall contain the cost proposal, consisting of the following 
items: Standard Form (SF) 424, ``Application for Federal Assistance'' 
(Appendix No. 1) and SF 424A, ``Budget'' (Appendix No. 2). Also, the 
budget shall include on a separate page(s) a detailed enumeration of 
how the matching requirement will be fulfilled. The individual signing 
the SF 424 on behalf of the State shall represent the responsible 
financial and administrative entity for the grant should that proposal 
result in an award.
    Part II shall contain a technical proposal that demonstrates the 
applicant's capabilities in accordance with the Statement of Work 
contained in this announcement. Applicants are strongly encouraged to 
submit a technical proposal of less than thirty (30) pages in length 
(exclusive of appendices) which sets forth the applicant's explanation 
of how it proposes to accomplish the elements described in the 
Statement of Work.
    No cost data or reference to price shall be included in the 
technical proposal. In order to assist applicants in preparing their 
proposals and to facilitate the expeditious evaluation by the review 
panel, proposals should be organized and presented in the same 
sequential order as the Evaluation Criteria in Part IV of this 
announcement.

C. Hand-Delivered Proposals

    Proposals should be mailed at least five (5) days prior to the 
closing date. However, if proposals are hand-delivered, they shall be 
received at the designated place by 2 p.m., Eastern Time by June 13, 
1994. All overnight mail will be considered to be hand-delivered and 
must be received at the designated place by the specified closing date. 
Telegraphed and/or faxed proposals will not be honored. Failure to 
adhere to the above instructions will be a basis for a determination of 
nonresponsiveness.

D. Late Proposals

    Any proposal received at the office designated in the solicitation 
after the exact time specified for receipt will not be considered 
unless it is received before award is made and it--

    (1) Was sent by U.S. Postal Service registered or certified mail 
not later than the fifth calendar day before the date specified for 
receipt of application (e.g., an offer submitted in response to a 
solicitation requiring receipt of applications by the 20th of the 
month must have been mailed by the 15th); or
    (2) Was sent by U.S. Postal Service Express Mail Next Day 
Service--Post Office to Addressee, not later than 5 p.m. at the 
place of mailing two working days prior to the date specified for 
receipt of proposals. The term ``working days'' excludes weekends 
and U.S. Federal holidays.

    The only acceptable evidence to establish the date of mailing of a 
late proposal sent either by U.S. Postal Service registered or 
certified mail is the U.S. postmark both on the envelope or wrapper and 
on the original receipt from the U.S. Postal Service. Both postmarks 
must show a legible date or the proposal shall be processed as if 
mailed late. ``Postmark'' means a printed, stamped, or otherwise placed 
impression (exclusive of a postage meter machine impression) that is 
readily identifiable without further action as having been supplied and 
affixed by employees of the U.S. Postal Service on the date of mailing. 
Therefore, applicants should request the postal clerk to place a 
legible hand cancellation ``bull's eye'' postmark on both the receipt 
and the envelope or wrapper.
    The only acceptable evidence to establish the date of mailing of a 
late proposal sent by ``Express Mail Next Day Service--Post Office to 
Addressee'' is the date entered by the post office receiving clerk on 
the ``Express Mail Next Day Service--Post Office to Addressee'' label 
and the postmark on both the envelope or wrapper and on the original 
receipt from the U.S. Postal Service. ``Postmark'' has the same meaning 
as defined above. Therefore, applicants should request the postal clerk 
to place a legible hand cancellation ``bull's eye'' postmark on both 
the receipt and the envelope or wrapper.

E. Withdrawal of Proposals

    Proposals may be withdrawn by written notice or telegram (including 
mailgram) received at any time before award. Proposals may be withdrawn 
in person by an applicant or an authorized representative thereof, if 
the representative's identity is made known and the representative 
signs a receipt for the proposal before award.

F. Period of Performance

    The period of performance will be fifteen (15) months from the date 
of execution.

G. Funding

    DOL has set aside up to $1.5 million to be disbursed, contingent 
upon resources being available for this purpose. It is anticipated that 
grant awards will be in the $250,000 to $300,000 range.

H. Option to Extend

    Based on the availability of funds, effective program operation, 
and the needs of the Department, the grant(s) may be extended for up to 
one (1) additional year.

I. Matching Requirement

    In order to receive a grant award, an applicant must include 
matching non-Federal contributions in an amount equal to 100 percent of 
Federal funds to be provided.

Part III--Statement of Work

    The primary goal of this initiative is to assist economically 
disadvantaged individuals in establishing and maintaining 
microenterprises. Proposals must contain a clear statement of the need 
for such a project, together with the identification of the proposed 
service delivery strategy to accomplish the primary goal and to meet 
this stated need. They should also enumerate sources of start-up 
capital for new microenterprises, such as community-based credit 
providers.
    Proposals should detail new methods and techniques for the States 
to focus on the entrepreneurial training needs of disadvantaged 
individuals. The Department is aware that most States already possess 
some organizational capacity and staffing to assist generally in the 
formation and development of small business activity, most notably 
through the Small Business Development Centers described in the next 
segment.
    An applicant should not attempt simply to add to this existing 
State assistance. Rather, and applicant must demonstrate in its 
proposal how the proposed training is necessary in assisting 
economically disadvantaged individuals to establish and maintain 
microenterprises.

A. Activities

    The proposal should present a clear discussion of what activities 
related to microenterprise and economic development are already 
functioning within the State and how this new initiative will link 
those activities and add a new dimension to them. Examples of such 
activities include:

    (1) Empowerment Zones and Enterprise Communities as authorized 
by Title XIII of the Omnibus Budget Reconciliation Act of 1993. 
Their mission is to provide favorable Federal income tax treatment 
and other incentives to encourage the conduct of trades or 
businesses and general economic development within designated areas.
    (2) Small Business Development Centers (SBDC) as authorized by 
the Small Business Act of 1953 as amended. Their stated mission is 
to provide management assistance to prospective and small business 
owners through one-on-one counselling and specialized training 
efforts.
    (3) Economic Development Districts (EDD) as authorized by the 
Public Works and Economic Development Act of 1965, as amended. EDDs 
serve as the structural entities for formulating and implementing 
economic development plans and activities within boundaries.

    These examples represent some of the types of existing activities 
and resources that may be considered in developing a proposal under 
this solicitation.

B. Resources

    Applicants are strongly encouraged to be exhaustive in examining 
available related resources and ongoing activities in order to maximize 
the potential impact of a microenterprise. The resources that the State 
will provide to meet the 100 percent matching requirement should be 
discussed in some detail providing a clear understanding of what is to 
be provided and what the relevance/linkage of these resources is to the 
activities proposed and to successfully meeting the primary goal of the 
project.

C. Services and Techniques

    Applicants shall specify the services and techniques they propose 
to provide to meet the goal of aiding economically disadvantaged 
individuals with microenterprises. Examples of key services and 
techniques that may be included in a proposal are:

    (1) Recruitment and screening. This is an important element both 
in identifying program staff to be trained as trainers and in 
identifying and selecting individuals who show potential for owning 
an microenterprise.
    (2) Case management. This would involve assigning an individual 
who provides guidance in all aspects of program participation and 
other services to microenterprise owners.
    (3) Follow-up. Enrollment in and successful completion of a 
microenterprise training program may well be only the initial 
challenges facing the entrepreneur. A structured follow-up program 
involving such counseling and supportive services as deemed 
appropriate is a critical aspect of the program.
    (4) Mentoring. This could involve assigning a volunteer 
businessperson from the community to serve in a one-on-one 
relationship with the new entrepreneur. Such volunteer service may 
not be considered for meeting the 100 percent matching requirement.

Part IV--Evaluation Criteria

    Prospective applicants are advised that the selection of grantees 
for award is to be made after careful evaluation of proposals by a 
panel of specialists within DOL. The panelists will evaluate the 
proposals in accordance with the elements set forth in the Statement of 
Work. The panel results are advisory in nature and not binding on the 
Grant Officer.

A. Ability to Conduct and Monitor the Microenterprise Activities (45 
Points)

    (1) The proposal must describe in specific terms the service 
delivery strategy that the applicant would utilize to implement its 
ideas. The applicant must clearly state, particularly when 
discussing staff training for implementation of proposed 
microenterprise activities, how this activity will create a new 
capacity for the State to conduct such training. The proposal must 
provide assurances that resources under this grant will not be used 
to substitute for an ongoing commitment to maintain an economic 
development capacity. (30 points)
    (2) The application must also contain a clear statement of the 
need for such a project, including the degree to which the service 
delivery strategy will assist in meeting that need. (15 points)

    This overall discussion will be the measure for determining the 
ability to conduct and monitor such activities.

B. Evidence of State Commitment, As Shown Through Existing or Proposed 
Related Programs and Support (25 Points)

    This section must include a detailed discussion of the coordination 
and linkages between programs and community organizations, as well as a 
discussion of the organizational capacity which the State intends to 
devote to this project. The emphasis under this criterion will be on 
programmatic resources which might enhance the training aspects of a 
project. As noted earlier, it is recognized that most applicants have 
some form of economic development capacity already in place.

C. Evidence of Linkage(s) to Private, Community-Based Credit and 
Technical Assistance Providers (10 Points)

    Discussion of what financial resources are available to provide new 
microenterprises with start-up capital, such as a consortium of banks 
which have pledged to assist in this process.

D. Size of Non-Federal Matching Fund Contributions (10 Points)

    In order to receive a grant award, an applicant, at a minimum, must 
include matching non-Federal contributions in an amount equal to 100 
percent of Federal funds to be provided. Applicants who propose to 
provide the minimum amount for matching non-Federal contributions will 
receive five (5) points under this criteria. If the non-Federal 
contributions are greater than 100 percent of the Federal funds to be 
provided, applicants may receive up to an additional five (5) points 
under this criteria.
    The cost proposal must contain a detailed discussion of the size, 
nature, and quality of the non-Federal match. Proposals not presenting 
a detailed discussion of the non-Federal match or not meeting the 
statutory requirement of a 100-percent match will be considered 
nonresponsive.

E. Cost (10 points)

    The cost effectiveness of the project as indicated by cost per 
participant and cost per activity in relation to services provided and 
outcomes anticipated.
    Offerors are advised that discussions may be necessary in order to 
clarify any inconsistencies in their applications. The panel's 
evaluations are only advisory to the Grant Officer. The final decisions 
for grant award will be made by the ETA Grant Officer, after 
considering the panelists' scoring decisions. The Grant Officer's 
decisions will be based on what he or she determines is most 
advantageous to the Federal Government.

Part V--Reporting Requirements

    The Grantee is required to provide reports and documents listed 
below:

A. Quarterly Financial Reports

    The grantee shall submit to the Grant Officer's Technical 
Representative (GOTR), within 30 days following the end of each 
quarter, three (3) copies of a quarterly Financial Status Report (SF 
269), until such time as all funds have been expended or the period of 
availability has expired.

B. Quarterly Progress Reports

    The grantee shall submit to the GOTR within 30 days following the 
end of each quarter, three (3) copies of a quarterly progress report 
which provides a detailed account of services provided during each 
quarter of grant performance. Reports shall include the following in 
brief narrative form:

    (1) A description of overall progress of work activities 
accomplished during the reported period.
    (2) An indication of current problems, if any, which may delay 
performance and any proposed corrective action.
    (3) Program status and financial data/information relative to 
expenditure rate versus budget, anticipated staff changes, etc.

C. Final Report

    Each grantee shall submit, for the initial grant period for which 
funds are received, a final report that includes at a minimum a 
description of:

    (1) The programs that have been established and developed with 
such funds, including a description of the persons participating and 
the microenterprise developed;
    (2) The quantitative and qualitative benefits of such programs;
    (3) The contributions of such programs to economic self-
sufficiency and economic development;
    (4) The types of services provided and an assessment of how well 
they worked in assisting participants to establish their own 
microenterprises;
    (5) The characteristics of the individual participants served;
    (6) Measures of pre- and post-program income (e.g., wage rates, 
business income, total income, etc.); and
    (7) The key lessons learned, including significant impediments, 
barriers or other problems experienced, and the measures used to 
address and/or overcome them.

    This final report is due in draft no later than 45 days prior to 
the conclusion of the initial grant period. Three (3) copies of this 
report shall be due no later than the conclusion of the grant period. 
In the event the Government exercises its option to extend the grant, 
the grantee shall submit the final report at the conclusion of the 
option year.

    Signed at Washington, DC, this 7th day of April.
Janice E. Perry,
Grant Officer, Division of Acquisition and Assistance.

Appendices

A. SF-424, Application for Federal Assistance
B. SF-424A, Budget

BILLING CODE 4510-34-M

TN13AP94.002


TN13AP94.003


[FR Doc. 94-8865 Filed 4-12-94; 8:45 am]
BILLING CODE 4510-30-C