[Federal Register Volume 63, Number 72 (Wednesday, April 15, 1998)]
[Notices]
[Pages 18445-18458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9950]


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DEPARTMENT OF LABOR

Employment and Training Administration


Welfare-to-Work Competitive Grants

AGENCY: Employment and Training Administration (ETA), DOL.

ACTION: Notice of availability of funds; solicitation for grant 
applications.

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SUMMARY: The U.S. Department of Labor (DOL), Employment and Training 
Administration (ETA) announces the second round of competitive grants 
under a two year Welfare-to-Work (WtW) grant program enacted under the 
Balanced Budget Act of 1997. The WtW program assists States and local 
communities to provide the transitional employment assistance needed to 
move hard-to-employ recipients of Temporary Assistance to Needy 
Families (TANF) into lasting unsubsidized jobs. WtW grants are targeted 
to assisting those TANF recipients, and certain noncustodial parents, 
who have experienced, or have characteristics associated with, long-
term welfare dependence. This announcement describes the conditions 
under which applications will be received under the Welfare-to-Work 
(WtW) Competitive Grants Program and how DOL/ETA will determine which 
applications it will fund. This announcement includes all of the 
information and forms needed to apply for WtW competitive grants.

DATES: The closing date for receipt of applications under this 
announcement is July 14, 1998. For the funding cycle covered by this 
announcement, complete applications must be received at the address 
below no later than 2 p.m. EST (Eastern Standard Time). Except as 
provided below, grant applications received after this date and time 
will not be considered. Applications which are not accepted for this 
announcement must be resubmitted to be considered for future 
announcements.

ADDRESSES: U.S. Department of Labor, Employment and Training 
Administration, Division of Acquisition Assistance, Attention: Ms. 
Mamie D. Williams, SGA/DAA 98-009, 200 Constitution Avenue, NW, Room 
S4203, Washington, D.C. 20210.

FOR FURTHER INFORMATION CONTACT: Questions should be faxed to Ms. Mamie 
D. Williams, Grant Management Specialist, Division of Acquisition 
Assistance, Fax: (202) 219-8739. This is not a toll-free number. 
Questions may also be sent via electronic mail to ``disgu-
[email protected].'' All inquiries sent via fax or e-mail should include 
the SGA number (DAA 98-009) and a contact name and phone number. This 
announcement is also being published on the Internet on the Employment 
and Training Administration's Welfare-to-Work Home Page at http://
wtw.doleta.gov. Commonly asked questions and answers with regard to the 
WtW competitive grants and the WtW program in general, and copies of 
the Interim Final Rule governing the Welfare-to-Work program, including 
activities conducted under the competitive grants, are also available 
on the WtW Home Page. In addition, award notifications will be 
published on the WtW Home Page.

SUPPLEMENTARY INFORMATION:

I. Authority

    Section 403(a)(5)(B) of Title IV of the Social Security Act. 
Regulations governing the WtW program are at 20 CFR Part 645, published 
at 62 FR 61588. This Interim Final Rule was published in the Federal 
Register on November 18, 1997.

II. Submission of Applications

    Four copies of the application must be submitted, one of which must 
contain an original signature. Proposals must be submitted by the 
applicant only.
    All applications must be single-spaced, and on single-sided, 
numbered pages. A font size of at least 12 pitch is required. Section I 
of the application must include the following three required elements: 
(1) The Project Financial Plan, including the SF-424, (2) ETA Form 
9070, Project Synopsis Form, and (3) Evidence of State and local 
consultation. Section I will not count against the application page 
limits.
    Section II of the application, the project narrative, shall not 
exceed twenty (20) pages for the Government Requirements/Statement of 
Work section, as described below in the ``Required Content for WtW 
Competitive Grant Applications--Fiscal Year 1998,'' plus an additional 
ten (10) pages for Attachments, to include no information that is 
critical to the review of the

[[Page 18446]]

proposal. Letters of support for a proposal should NOT be submitted and 
will count against the page limits.

Acceptable Methods of Submission

    Applications may be hand-delivered or mailed. Hand-delivered 
applications must be received at the address identified above by the 
date and time specified. Overnight mail deliveries will be treated as 
hand-deliveries. Mailed applications that arrive after the closing date 
will be accepted if they are post-marked at least five (5) days prior 
to the closing date. Applications submitted via overnight mail that 
arrive after the closing date will be accepted if they are post-marked 
at least two (2) days prior to the closing date. Otherwise, late 
applications will not be accepted. Telegraphed and/or faxed 
applications will not be accepted.
    Applications may be withdrawn by written notice or telegram 
(including mailgram), or in person if the representative's identity is 
made known, and the representative signs a receipt for the application.

OMB Approval of Paperwork Burden

    According to the Paperwork Reduction Act of 1995, no persons are 
required to respond to a collection of information unless such 
collection displays a valid OMB control number. The valid OMB control 
number for this information collection is 1205-0387. The time required 
to complete this information collection is estimated to average twenty 
(20) hours per response, including the time to review the instructions, 
search existing data resources, gather data needed, and complete and 
review the information. Comments concerning this burden estimate or any 
other aspect of this collection of information, including suggestions 
for reducing this burden, to the U.S. Department of Labor, Office of 
Job Training Programs, Room N4459, Washington, DC 20210 (Paperwork 
Reduction Project 1205-0387). Comments may be reflected in the 
development of future solicitations.

Catalog of Federal Domestic Assistance Number

    The Welfare-to-Work program is listed in the Catalog of Federal 
Domestic Assistance at No. 17.253, ``Employment and Training 
Assistance--Welfare-to-Work Grants to States & Local Entities for Hard-
to-Employ Welfare Recipient Programs.''

III. Program Scope and Funding

    Competitive grant projects will be expected to achieve the purpose 
of all WtW grants:

    To provide transitional assistance which moves welfare 
recipients into unsubsidized employment providing good career 
potential for achieving economic self-sufficiency.

This transitional assistance is to be provided through a ``work first'' 
service strategy in which recipients are engaged in employment-based 
activities. Grant funds may be used to provide needed basic and/or 
vocational skills training as a post-employment service in conjunction 
with either subsidized or unsubsidized employment. This flexibility, 
established in the Regulations, reflects the basic ``work first'' 
philosophy of the WtW legislation, and recognizes the critical 
importance of continuous skills acquisition and lifelong learning to 
economic self-sufficiency.
    All competitive grant projects will be expected to be an integral 
part of a comprehensive strategy for moving eligible individuals into 
unsubsidized employment in a local, community-based context. Projects 
should develop and implement innovative approaches that enhance a 
community's ability to move eligible individuals into self-sustaining 
employment, create upward mobility paths and higher earnings potential 
for WtW participants, and achieve sustainable improvements in the 
community's service infrastructure for assisting welfare recipients. 
All applications will be reviewed under the criteria set forth in Part 
VII of this announcement, including the effectiveness of the proposal 
in moving TANF recipients who are least job ready into unsubsidized 
employment, in moving such recipients into unsubsidized employment in 
labor markets that have a shortage of low-skill jobs, and in expanding 
the base of knowledge about programs aimed at moving TANF recipients 
into long-term unsubsidized employment.

Areas of Special Interest

    In addition to proposing innovative strategies for moving welfare 
recipients into lasting unsubsidized employment, applicants are 
encouraged to consider the following in designing responsive service 
strategies for the eligible population in their local area:
     Targeted assistance to specific subgroups of the eligible 
populations such as noncustodial parents, individuals with learning 
disabilities, individuals who require substance abuse treatment for 
employment, and public housing residents;
     Development of responsive transportation and child care 
service systems;
     Use of integrated work and learning strategies to develop 
skills;
     Creation of job opportunities (including self-employment) 
that allow for flexibility to address work and family needs while 
providing income levels that are adequate for self-sufficiency;
     Proactive strategies to involve employers in design of 
service strategies and implementation of the project;
     Strategies that focus on family-based assistance and that 
are integrated with children systems (e.g., Child Care, Head Start) 
that can assist the full family unit;
     Activities to help women access nontraditional 
occupations; and
     Strategies that reflect effective integration with both 
the workforce development (e.g., One-Stop) and welfare systems.
    In identifying those Areas of Special Interest addressed by the 
proposal on the Project Synopsis form (Required format can be found in 
Appendix C), please indicate the page number on which relevant text 
relating to this interest area can be found in the proposal narrative.
    The Department is also interested in receiving applications to 
implement projects that are coordinated with community saturation 
strategies (in which comprehensive services are available to assist all 
of the eligible residents in a defined community). The Department 
expects that these applications would be submitted from communities in 
which there are concentrations of eligible hard-to-employ individuals, 
there is a reasonable opportunity to provide employment for all such 
individuals, and there are established partnerships which can 
contribute a significant level of resources to implement the strategy. 
A definition of community saturation strategy is provided in Appendix 
B.

Funding Availability

    A total of $368.25 million is available for competitive grant 
awards in Fiscal Year (FY) 1998 and $343.25 million in FY 99. 
Approximately $184 million (or 50 percent of FY 98 competitive grant 
funding) is available for Federal grant assistance through this 
announcement. Of the funds available in FY 98, the Department aims to 
distribute approximately 70 percent for projects to serve cities with 
large concentrations of poverty and 30 percent for projects to serve 
rural areas. Definitions for ``cities with large concentrations of 
poverty'' and ``rural area'' can be found in Appendix B of this 
announcement. Applications to serve rural areas should be targeted to 
serve eligible residents from subareas that represent concentrations of 
poverty. Further, as

[[Page 18447]]

indicated under the Criteria section of this solicitation, applications 
are strongly encouraged to present innovative strategies to address the 
needs of areas with concentrations of poverty. Each application must 
indicate on the required Project Synopsis Form either a rural or an 
urban focus for its project services.
    It is expected that most grant awards will be between $1 million 
and $5 million. Furthermore, it is expected that most grants will serve 
a minimum of 100 eligible participants. Applications that are outside 
of this range must provide a brief explanation of how the project will 
have substantial community impact (especially for those below $1 
million and/or fewer than 100 participants), or how project services 
will be provided on a local level and targeted to the specific needs of 
the defined target group (especially for those applications over $5 
million).

Award Period

    It is expected that the planned performance period for most 
projects will be between 18 and 30 months. Grant funds are not 
available for expenditure for longer than three years. No obligation or 
commitment of funds will be allowed beyond the grant period of 
performance. Any unspent grant funds must be returned to the Department 
of Labor.

IV. Eligible Grant Applicants

    Private Industry Councils (PIC), political subdivisions of the 
State (as defined in Appendix B), and private entities (as defined in 
Appendix B) are eligible to receive grant funds under this 
announcement. Eligible private entities include community development 
corporations, community action agencies, community-based and faith-
based organizations, disability community organizations, public and 
private colleges and universities, and other qualified private 
organizations. Private entities include both non-profit and for-profit 
organizations but do not include individuals.
    Entities other than a PIC or a political subdivision of the State 
must submit an application for competitive grant funds in conjunction 
with the PIC(s) or political subdivision(s) for the area in which the 
project is to operate. The term ``in conjunction with'' shall mean that 
the application must include a signed certification by both the 
applicant and either the appropriate PIC(s) or political subdivision(s) 
indicating that:
    1. The applicant has consulted with the appropriate PIC(s)/
political subdivision(s) during the development of the application; and
    2. The activities proposed in the application are consistent with, 
and will be coordinated with, the WtW efforts of the PIC(s)/political 
subdivision(s).
    If the applicant is unable to obtain the certification, it will be 
required to include information describing the efforts which were 
undertaken to consult with the PIC(s)/political subdivision(s) and 
indicating that the PIC(s)/political subdivision(s) were provided a 
sufficient opportunity to cooperate in the development of the project 
plan and to review and comment on the application prior to its 
submission to the Department of Labor. ``Sufficient opportunity for 
PIC/political subdivision review and comment'' shall mean at least 30 
calendar days.
    The certification, or evidence of efforts to consult, must be with 
either each PIC or each political subdivision in the service area in 
which the proposed project is to operate. These certifications must be 
included in Section I of the grant application, and will not count 
against the established page limitations. For the purposes of this 
portion of the application, evidence of efforts to consult with the 
PIC/political subdivision must be demonstrated by written 
documentation, such as registered mail receipt, that attempts were made 
to share project applications with the PIC/political subdivision in a 
timely manner.

State-level Consultation

    All applicants for competitive grants, including PICs and political 
subdivisions, must submit their applications to the Governor or, at the 
discretion of the Governor, to the designated State administrative 
entity for the WtW program, for review and comment prior to submission 
of the application to the Department. For private entities, State 
review must be subsequent to review by the PIC or political entity. 
When submitted to the Department, the application must include any 
comments from the Governor or his/her designee or must include 
information indicating that the Governor was provided a sufficient 
opportunity for review and comment prior to submission to the 
Department. ``Sufficient opportunity for State review and comment'' 
shall mean at least 15 calendar days. For the purposes of this portion 
of the application, information indicating that the Governor was 
provided opportunity for review must be demonstrated by written 
documentation, such as registered mail receipt, that attempts were made 
to submit project applications to the Governor or his/her designee in a 
timely manner.

Applicants for Multiple Community or National Projects

    Consideration will be given to applications which propose multi-
community or national strategies to move welfare recipients into long-
term unsubsidized employment leading to economic self-sufficiency. For 
example, an applicant may design a nationwide project to create jobs 
for welfare recipients in a particular industry. Applications which 
propose multi-community or national strategies must meet all of the 
application requirements contained in this Announcement. Specifically, 
private entities proposing such projects must include the signed 
certification from the applicable PIC or political subdivision of each 
SDA in which the project will operate or other evidence indicating the 
efforts undertaken to obtain the required consultation as described 
above. Such applications must also demonstrate the required 
consultation with the Governors of the States in which the project will 
operate. Applications proposing national projects must comply with all 
statutory and regulatory requirements and will be rated under the same 
evaluation criteria as other applications. Applicants should be aware 
that the extent of local collaboration demonstrated in a national 
project will be considered as an important factor in the overall 
strength of the proposal.

Lobbying Disclosure Act of 1995

    Entities described in Section 501(c)(4) of the Internal Revenue 
Code that engage in lobbying activities are not eligible to receive 
funds under this announcement. The Lobbying Disclosure Act of 1995, 
Public Law 104-65, 109 Stat. 691, prohibits the award of Federal funds 
to these entities if they engage in lobbying activities.

V. Program and Administrative Requirements

Participant Eligibility and Funding Expenditures

    Each project will be required to meet the targeting provisions 
described at 20 CFR 645.211-645.213. [NOTE: The WtW Regulations are 
available at the WtW Internet web site at http://wtw.doleta.gov.] These 
provisions dictate that a minimum of 70 percent of the funds in each 
WtW competitive grant must be used to serve hard-to-employ individuals 
as described in Sec. 645.212. Furthermore, no more than 30 percent of 
the funds in each grant may be used to serve individuals with 
characteristics predictive of long-term

[[Page 18448]]

welfare dependence, as described in Sec. 645.213.

Allowable Uses of Funds

    Competitive grant funds shall only be spent for those activities 
identified in the WtW Regulations, at 20 CFR 645.220 and set forth 
below, for appropriate administrative costs, and for information 
technology costs in accordance with 20 CFR 645.235(c)(3).
    WtW allowable activities are:
    (a) Job readiness activities financed through job vouchers or 
through contracts with public or private providers.
    (b) Employment activities which consist of any of the following: 
(1) Community service programs; (2) Work experience programs; (3) Job 
creation through public or private sector employment wage subsidies; 
and (4) On-the-job training.
    (c) Job placement services financed through job vouchers or through 
contracts with public or private providers subject to the payment 
requirements at Sec. 645.230(a)(3).
    (d) Post-employment services financed through job vouchers or 
through contracts with public or private providers, which are provided 
after an individual is placed in one of the employment activities 
listed in paragraph (b) above, or in any other subsidized or 
unsubsidized job. Post-employment services include, but are not limited 
to, such services as: (1) Basic educational skills training; (2) 
Occupational skills training; (3) English as a second language 
training; and (4) Mentoring.
    (e) Job retention services and support services which are provided 
after an individual is placed in a job readiness activity, as specified 
in paragraph (a) above, in one of the employment activities, as 
specified in paragraph (b) above, or in any other subsidized or 
unsubsidized job. These services can be provided with WtW funds only if 
they are not otherwise available to the participant. Job retention and 
support services include, but are not limited to, such services as: (1) 
Transportation assistance; (2) Substance abuse treatment (except that 
WtW funds may not be used to provide medical treatment); (3) Child care 
assistance; (4) Emergency or short term housing assistance; and (5) 
Other supportive services.
    (f) Individual development accounts which are established in 
accordance with section 404(h) of the Act.
    (g) Intake, assessment, eligibility determination, development of 
an individualized service strategy, and case management may be 
incorporated in the design of any of the allowable activities listed in 
paragraphs (a) through (f) above.

Administrative Costs

    Allowable costs and the 15 percent limitation on administrative 
costs for WtW competitive grants are defined in the WtW Regulations at 
20 CFR 645.235. All proposed costs must be reflected as either a direct 
charge to specific budget line items, or as an indirect cost. Direct 
and indirect administrative costs are allowable, but combined, these 
costs cannot exceed 15 percent of the total grant. The administrative 
costs negotiated in the final grant document may be below fifteen 
percent.
    Only costs which result from applying a Federally-approved indirect 
cost rate may be entered on the ``indirect cost'' line item of the 
budget. If an indirect cost rate is used, the applicant must include 
documentation from the cognizant Federal agency which includes the 
approved rate, the cost base against which it is applied, and the 
approval date.
    All applicants will be expected to justify proposed costs (see Item 
3 of the Financial Plan in the ``Required Content for WtW Competitive 
Grants Applications--Fiscal Year 1998''). Profits are not an allowable 
use of grant funds.

Use of Federal Funds

    Federal funds cannot be used to support activities which would be 
provided in the absence of those funds. Grant funds may cover only 
those costs which are appropriate and reasonable. Federal grant funds 
may only be used to acquire equipment which is necessary for the 
operation of the grant. The grantee must receive prior approval from 
the DOL/ETA Grant Officer for the purchase and/or lease of any property 
and/or equipment with a per unit acquisition cost of $5,000 or more, 
and a useful life of more than one year as defined in the ``Uniform 
Administrative Requirements for Grants and Cooperative Agreements to 
State and Local Governments'', codified at 29 CFR Part 97 (also known 
as the ``Common Rule''), and ``Grants and Agreements with Institutes of 
Higher Education, Hospitals and Other Non-Profit Organizations'', 
codified at 29 CFR Part 95 (also known as OMB Circular A-110). This 
restriction includes the purchase of Automated Data Processing (ADP) 
equipment. A request for such prior approval may be included in the 
grant application or submitted after the grant award. Requests 
submitted after the grant award must be directed through the Grant 
Officer Technical Representative (GOTR) and must include a detailed 
description and cost of the items to be acquired.
    Grant funds also may not be used to cover any project-related costs 
incurred prior to the effective date of the grant award. In making a 
grant award, DOL/ETA has no obligation to provide any future additional 
funding in connection with the grant award.
    Pursuant to 20 CFR 645.235(c)(3), the costs of information 
technology--computer hardware and software--needed for tracking or 
monitoring under a WtW grant are not subject to the fifteen percent 
limitation on administrative costs.

Year 2000 Compliance

    Any information technology purchased in whole or in part with WtW 
funds, which is used for a period of time that goes beyond December 31, 
1999, must be ``year 2000 compliant.'' This means that such information 
technology shall accurately process date/time data (including, but not 
limited to, calculating, comparing and sequencing) from, into and 
between the twentieth and twenty-first centuries, the years 1999 and 
2000, and leap year calculations. Furthermore, ``year 2000 compliant'' 
information technology, when used in combination with other information 
technology, shall accurately process date/time data if the other 
information technology properly exchanges date/time with it.

Assurances and Certifications

    The following assurances and certifications must be included as 
part of each grant application: Debarment & Suspension Certification.
    Other assurances and certifications will be required as part of 
each executed grant agreement, but do not need to be submitted as part 
of a WtW Competitive grant application: Assurances/Non-Construction 
Programs; Certification Regarding Lobbying; Drug Free Workplace 
Certification; Certification of Non-delinquency; and Non-discrimination 
and Equal Opportunity Requirements.

Departmental Oversight

    The Department reserves the right to conduct oversight and both 
programmatic and financial monitoring activities for all competitive 
grants awarded under the WtW grants program.

Department of Health and Human Services Evaluation of the Welfare-to-
Work Program

    Competitive grant projects will participate in the evaluation of 
the WtW

[[Page 18449]]

grant program by the U.S. Department of Health and Human Services 
(DHHS), as described in Title IV, section 413(j)(1) of the Social 
Security Act. The goal of the DHHS evaluation is to expand the base of 
knowledge about programs aimed at moving the least job ready welfare 
recipients into unsubsidized employment. The evaluation will collect 
program and administrative data to determine the range of WtW project 
designs and the employment outcomes for all WtW grantees, consistent 
with sec. 413(j)(1)(C) of the Social Security Act. In addition, DHHS 
will select certain sites at which to qualitatively study the 
implementation of the WtW program and other sites where net impact and 
cost effectiveness of the program will be examined quantitatively.

VI. Monitoring & Reporting

Monitoring

    The Department shall be responsible for ensuring effective 
implementation of each competitive grant project in accordance with the 
Act, the Regulations, the provisions of this announcement and the 
negotiated grant agreement. Applicants should assume that at least one 
on-site project review will be conducted by Department staff, or their 
designees, at approximately the midpoint of the project performance 
period. This review will focus on the project's performance in meeting 
the grant's programmatic goals and participant outcomes, complying with 
the targeting requirements regarding recipients who are served, 
expenditure of grant funds on allowable activities, integration with 
other resources and service providers in the local area, and methods 
for assessment of the responsiveness and effectiveness of the services 
being provided. Grants may be subject to other additional reviews at 
the discretion of the Department.

Reporting

    Applicants selected as grantees will be required to provide the 
following reports:
    1. Financial Reporting: The Department of Labor (DOL) will issue 
financial reporting instructions for competitive grantees shortly. 
Financial reports will be submitted directly to DOL.
    2. Participant Reporting: Participant reporting instructions will 
be issued shortly covering the entire WtW program. Participant reports 
for each competitive grant will be submitted in accordance with 
reporting instructions at a later date.
    3. Other Reporting: The Department of Labor may negotiate 
additional reporting requirements with individual grantees, where 
necessary, for grants management and/or knowledge development purposes. 
In addition to required quarterly financial and participant reporting, 
some grantees may be asked to provide information to the appropriate 
ETA Regional Office during the early implementation phase of the 
project for the purpose of project oversight. This information may 
include project enrollment levels, participant characteristics, and 
emerging implementation issues.

VII. Review and Selection of Applications for Grant Award Review 
Process

    The Department will screen all applications to determine whether 
all required elements are present and clearly identifiable. These 
elements are described below in the ``Required Content for WtW 
Competitive Grant Applications--Fiscal Year 1998.'' Failure to include 
and all required elements in Section I of the grant application will 
result in rejection of the application.
    Each complete application will be objectively rated by a panel 
against the criteria described in this announcement. Applicants are 
advised that the panel recommendations to the Grant Officer are 
advisory in nature. The Grant Officer may elect to award grants either 
with or without discussion with the applicant. In situations where no 
discussions occur, an award will be based on the applicant's signature 
on the SF424 form (See Appendix C), which constitutes a binding offer. 
The Grant Officer will make final award decisions based on what is most 
advantageous to the Government, considering factors such as: Panel 
findings; the geographic distribution of the competitive applications; 
the extent to which the competitive applications reflect a reasonable 
distribution of funds across the areas of special interest identified 
in this announcement; and the availability of funds.

Criteria

    The criteria, and the weights assigned to each, which will apply to 
the review of applications submitted in response to this announcement 
are:
    1. ``Relative Need for Assistance'' [20 points] which shall 
consider the concentration of poverty and long-term welfare dependence 
and the lack of employment opportunities in the project service area 
(up to 9 points); the extent of gaps in the capacity of the local 
infrastructure to effectively address the employment barriers which 
characterize the targeted population (up to 6 points); and the 
responsiveness of the project design to the areas of special interest 
identified in Part III of this announcement (up to 5 points).
    2. ``Innovation'' [20 points] which shall consider the extent to 
which the project incorporates new and better strategies for moving 
welfare recipients into lasting unsubsidized employment leading to 
economic self-sufficiency. These strategies can include, but are not 
limited to, new and better ways that services can be accessed by 
participants in the local community, new and better ways for local 
organizations to work together, or the replication of effective 
strategies in a new setting.
    3. ``Outcomes'' [25 points] which shall consider the quality of the 
proposed employment and earnings outcomes (up to 10 points); the extent 
to which the proposed plan of services responds to identified needs, 
the barriers faced by proposed participants, and the conditions in the 
local area as well as the likelihood that the proposed service plan 
will result in the proposed outcomes (up to 12 points); and the 
reasonableness of the level of investment in relation to the proposed 
outcomes (up to 3 points).
    4. ``Local Collaboration and Sustainability'' [25 points] which 
shall consider the extent to which the project is coordinated with the 
WtW formula grant and TANF grant activities and supported by the PIC/
political subdivision and local TANF agency (up to 4 points); the 
extent and quality of local community partnerships that are involved in 
and making substantial contributions of resources to the project (up to 
11 points); involvement of and participation by local employers (up 5 
points); and the extent to which the community and/or the local area 
has developed plans and commitments to maintain and expand the capacity 
to serve the target population with local resources over a sustained 
period of time (up to 5 points).
    5. ``Demonstrated Capability'' [10 points] which shall consider the 
extent to which the applicant and its partner organizations demonstrate 
a history of success in serving a comparable target group, the extent 
of use of current or former welfare recipients in the provision of 
services, and the extent to which the applicant demonstrates the 
ability to effectively execute grant management responsibilities.
    For those proposals that are deemed by the Grant Officer to be most 
competitive, applicants proposing projects in which the majority of 
participants to be served by the project

[[Page 18450]]

reside in designated Empowerment Zones and Enterprise Communities (EZ/
EC) will be eligible for 5 bonus points.
    In addition, proposals that are deemed by the Grant Officer to be 
most competitive, that plan to serve at least 450 WtW participants, and 
that are willing to participate in a random assignment evaluation may 
be awarded from zero to five bonus points (based on a DHHS assessment 
of the suitability of the project for evaluation against the criteria 
outlined in Appendix A). Projects selected to participate in a random 
assignment evaluation may also be able to access additional technical 
assistance resources, as well as a small amount of funding to offset 
the additional administrative costs of random assignment. These 
applicants should submit the additional information identified in 
Appendix A of this announcement. This information will be submitted as 
an Addendum to the grant application and will not be counted against 
the application page limit or count as an Attachment.

    Signed at Washington, D.C., this 9th day of April, 1998.
Janice E. Perry,
Grant Officer.

Required Content for WtW Competitive Grant Applications Fiscal Year 
1998

    Each application must contain the information and follow the format 
outlined in this Part. The application should include: (1) Information 
that responds to these requirements; (2) information that indicates 
adherence to the provisions described in preceding sections of this 
announcement; and (3) any other information the applicant believes will 
address the review and selection criteria.

I. Project Summary

A. Project Financial Plan

    Information provided in this section will be evaluated 
predominantly under the ``Outcomes'' criteria.
    The financial plan shall describe all costs associated with 
implementing the project that are to be covered with grant funds. All 
costs should be necessary and reasonable according to the Federal 
guidelines set forth in the ``Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments'', 
codified at 29 CFR Part 97 (also known as the ``Common Rule''), and 
``Grants and Agreements with Institutes of Higher Education, Hospitals 
and Other Non-Profit Organizations'' (also known as OMB Circular A-
110), codified at 29 CFR Part 95.
    The financial plan must contain the following parts:
     ``Application for Federal Assistance'' and ``Budget 
Information Sheet'' by line item for all costs required to implement 
the project design effectively. Submission of these two completed forms 
is required. (See Appendix C for these required forms.)

    Note: Although there is no matching requirement for these 
grants, the Department strongly encourages the leveraging of 
resources in the implementation of WtW competitive grant projects. 
On the Budget Information form, the ``Matching/Cost Sharing'' 
section of the form provides an opportunity for applicants to 
reflect such leveraged resources.

     Budget narrative/justification which provides sufficient 
information to support the reasonableness of the costs included in the 
budget in relation to the service strategy and planned outcomes.

B. Project Synopsis Form--ETA Form 9070

    Each application shall provide a project synopsis which identifies 
the applicant, the type of organization, the project service area, 
whether the service area is a city with a large concentration of 
poverty or a rural area, the specific areas of interest identified in 
the announcement which are addressed by the project (with page numbers 
where relevant portions of the project narrative can be found), the 
amount of grant funds requested, the planned period of performance, the 
planned number of WtW-eligible TANF recipients to be served, the number 
of noncustodial parents to be served (if applicable), the significant 
employment barriers which characterize the target group, the planned 
employment and earnings outcomes, a summary description of the proposed 
service strategy, and other significant service organizations involved 
in the delivery of services. This section must be limited to no more 
than two single-spaced, single-sided pages. The required format for 
this synopsis can be found in Appendix D.

C. Evidence of Required Local and State Consultation

    It is the expectation of the Department that, to the extent 
possible, all applications will be developed in consultation with the 
appropriate PIC/political subdivision and the Governor. Competitive 
grant projects should complement the WtW formula program activity, 
rather than exist independent of, or in conflict with, that program.
    Each application must include the signed certification or other 
evidence of the required consultation with the Governor as described in 
this announcement. Applications from private entities must also include 
the signed certification from the appropriate PIC(s) or political 
subdivision(s) or other evidence indicating the efforts undertaken to 
obtain the required consultation as described in this announcement. In 
areas where an entity other than the PIC has been designated by the 
Governor and approved by the Secretary to administer the WtW formula 
grant, the applicant should also include evidence of consultation and/
or support from that entity. All certifications or comments provided as 
part of this requirement must be included in this section of the grant 
application and will not be counted against the established page 
limits.

II. Government Requirements/Statement of Work--Project Narrative

    This section of the application should not exceed 20 single-spaced, 
numbered pages. The application should include information of the type 
described below, as appropriate.

Description of Service Area

    Information provided in this section will be evaluated 
predominantly under the ``Relative Need'' criteria.

--Identify the specific political and geographic jurisdictions (e.g., 
cities, counties, subsections of cities/counties) which are included in 
the service area for the project.
--Identify the percent of the population in the service area that has 
income below the poverty level.
--Identify the percent of the population in the service area that is 
receiving TANF assistance

    Note: Child-only TANF cases should be excluded from this number 
unless these cases are relevant to the project target group.

--Identify the percent of the TANF population that has received TANF or 
AFDC assistance for 30 months or more, or is within 12 months of losing 
eligibility for assistance under State or Federal law (Note: Child-only 
TANF cases should be excluded from this number unless these cases are 
relevant to the project target group).
--Identify the most recent unemployment rate in the service area.
--Describe the significant deficiencies in the local area 
infrastructure that represent significant barriers to moving eligible 
recipients into permanent employment in an efficient manner (e.g., lack 
of transportation, labor market with a shortage of low-skill jobs, 
shortage of employers with appropriate employment opportunities, 
remoteness from health

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facilities, limited number of social and support service agencies).

Summary of Strategy for Use of WtW Formula Funds in the Local Area

    Information provided in this section will be evaluated 
predominantly under the ``Local Collaboration and Sustainability'' 
criteria.

--Identify the substate service area covered by the WtW formula grant.
--Describe the allocation of formula grant funds among the allowable 
activities.
--Identify the significant local and community organizations involved 
and their roles in providing assistance through the formula grant.
--Describe how the proposed competitive grant project will supplement 
and enhance the capacity of the WtW formula grant activities to 
effectively serve eligible recipients in the local area who have 
significant employment barriers.
--In cases where the applicant cannot obtain this information because 
the State has not yet submitted a complete WtW Formula Grant Plan, the 
application should so indicate. Absence of this information, in and of 
itself, will not penalize the applicant.

Analysis of Target Group

    Information provided in this section will be evaluated 
predominantly under the ``Relative Need'' criteria.

--Describe the individuals targeted for assistance through this 
project, including any noncustodial parents.
--Describe the significant employment barriers which characterize this 
target group, including the process for identifying those participants 
who are least job ready.

    Note: An adequate analysis of employment barriers of the target 
group will be a critical factor in evaluating the need for grant 
assistance and the appropriateness of the proposed plan of services.

Analysis of Employment Opportunities

    Information provided in this section will be evaluated 
predominantly under the ``Relative Need'' criteria.

--Identify the types of occupations in the local area which are being 
targeted as appropriate employment opportunities for the target group 
of this project.
--Describe the justification for the selection of the occupations in 
terms of their availability and the adequacy of expected placement wage 
and post-placement earnings potential to achieve self-sufficiency.

Service Strategy

    Information provided in this section will be evaluated 
predominantly under the ``Innovation'' and Outcomes'' criteria.

--Identify the specific job readiness, placement (in both subsidized 
and unsubsidized employment), post-employment, job retention and/or 
support services to be provided with competitive grant funds as well as 
services to be leveraged from other sources.
--Describe the rationale for planned enrollments in activities in terms 
of the employment barriers, infrastructure deficiencies and employment 
opportunities previously identified above (enrollments in each activity 
will be reflected in the Quarterly Implementation Plan).
--Where vouchers for services are to be used, describe the process by 
which vouchers will be distributed and redeemed (in compliance with 20 
CFR Sec. 645.230(a)(3)), including who will be eligible, how amounts of 
vouchers will be determined, and how the grantee will ensure that 
quality services are being provided.

Service Process

    Information provided in this section will be evaluated 
predominantly under the ``Innovation'' and ``Outcomes'' criteria.

--Describe the comprehensive service process that will be available to 
participants, and identify the organizations which will be involved in 
providing specific services/activities. [A process flowchart and/or 
service matrix may be used to provide this description.] The 
description should specify what elements of the service strategy are 
already available in the community, whether through the WtW formula 
program, the TANF program or from other sources, as well as the 
elements or services that will be funded through the WtW competitive 
grant award. Also describe what individual support services, such as 
mentoring and case management, will be used to maintain participants in 
the program.
--Describe the specific methods which will be used by the grantee and 
the local TANF agency to coordinate and work jointly in providing the 
following services: Outreach, recruitment, and referral of appropriate 
recipients for assistance through the project; assessment of skills and 
identification of specific employment barriers; counseling and case 
management; and support services.

Integration of Resources

    Information provided in this section will be evaluated 
predominantly under the ``Local Collaboration and Sustainability'' 
criteria.

--Identify specific financial resources and organizational/service 
provider capabilities which are being contributed to provide the full 
range of assistance to the identified target group for the project. At 
a minimum, describe the coordination and contributions of local JTPA 
service providers, local TANF providers, and local housing and 
transportation authorities. In developing their plans, applicants are 
encouraged to be mindful of their obligations not to interfere with 
collective bargaining rights or agreements or to displace employees.
--Describe the process that will be used to maintain and expand the 
service structure in the local area and engage new partners after 
receipt of WtW competitive grant funds.
--Describe how the project will develop a sustainable capacity in the 
local community to effectively move welfare recipients into permanent 
jobs and to foster the long-term self-sufficiency of the target 
population. It is expected that project services will provide 
assistance oriented towards long-term solutions. It is also expected 
that the need for grant funds to provide this assistance will diminish 
over time, specifically in the latter stages of the grant performance 
period.

Employer Support

    Information provided in this section will be evaluated 
predominantly under the ``Local Collaboration and Sustainability'' 
criteria.

--Describe the specific responsibilities and approaches for developing 
relationships with and support of area employers to generate a 
sufficient number of unsubsidized employment opportunities for the 
target group. Specifically describe how employers will be encouraged to 
customize employment opportunities to meet work-related needs (e.g., 
child care, flexible work schedules) of recipients.
--Identify the employers in the local area who have made commitments to 
the project and describe the types of commitments made (e.g., number 
and types of jobs, contribution of employer resources for post-hire 
support services and/or training).

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Planned Outcomes

    Information provided in this section will be evaluated 
predominantly under the ``Outcomes'' criteria.

--Identify and justify planned performance for the comprehensive 
service strategy on the following measures: Number of participants to 
be placed into unsubsidized employment; average earnings at placement 
in unsubsidized employment; expected average earnings one year after 
placement in unsubsidized employment; and cost per placement in 
unsubsidized employment. In addition, where applicable, for those 
services supported specifically by WtW competitive grant funds, 
describe specific process or outcome objectives for those services.

    The application may include other measures and planned performance 
levels as deemed appropriate by the applicant. If these are included, 
the applicant should briefly describe their relevance to the project.

Implementation Plan

    Information provided in this section will be evaluated 
predominantly under the ``Outcomes'' and ``Innovation'' criteria.

--Identify the critical activities, time frames and responsibilities 
for effectively implementing the project within the first 60 days after 
the award of the grant.
--Include an implementation schedule showing the number of 
participants, enrollments in allowable activities, placements in 
unsubsidized employment and terminations.

Project Management Plan

    Information provided in this section will be evaluated 
predominantly under the ``Demonstrated Capability'' and ``Innovation'' 
criteria.
    Applicants must be able to document that they have systems capable 
of satisfying the administrative and grant management requirements for 
WtW grants as defined in 20 CFR Part 645.

--Include a project organizational chart which identifies the 
organizations, and staff, with key management responsibilities and the 
specific responsibilities of each organization;
--Describe the specific experience of the applicant and other key 
organizations involved in the project in serving individuals with 
significant barriers to employment. The information should include 
specific projects or grants, a comparison of the characteristics of 
individuals served to the target group for this project, and the 
employment outcomes which were achieved.
--As appropriate, describe how current or former welfare recipients 
will be used to provide services.
--Describe the procedures which will be used to obtain feedback from 
participants and other appropriate parties on the responsiveness and 
effectiveness of the services provided.

Innovation

    Information provided in this section will be evaluated 
predominantly under the ``Innovation'' criteria.
    Recipients of WtW competitive grants are expected to use creativity 
and innovation to help eligible individuals obtain long-term 
unsubsidized employment and economic self-sufficiency. The application 
should describe how the proposed approach represents an innovative 
method for achieving the employment objectives of the project. Proposed 
strategies should represent an improvement over, or a variation on, 
approaches that have traditionally been used in the project service 
area to assist welfare recipients and other low income unemployed 
individuals.
    Grant recipients are also expected to share knowledge which they 
develop through the use of innovative approaches. Applicants should 
describe how they will report lessons learned in the course of the 
grant implementation, and further, describe their plans for 
disseminating the knowledge they have gained.

Additional Requirements for Community Saturation Projects

    Information provided in this section will be evaluated 
predominantly under the ``Outcomes'' and ``Innovation'' criteria.

--Describe why a project employing a saturation strategy is appropriate 
for the project service area and target group.
--Describe the feasibility of a saturation strategy for the project 
service area and target group (i.e., based on available employment 
opportunities and other factors).
--Identify the local partners who will be involved in implementing the 
saturation strategy, the services to be provided and the dollar value 
of the contribution from each.

Appendix A: Instructions for Random Assignment Plan Addendum

Background

    The Department of Health and Human Services is charged with the 
responsibility to conduct a national evaluation of the welfare-to-
work (WtW) grants program. The goal of the evaluation is to expand 
the base of knowledge about effective strategies for moving the 
least job-ready welfare recipients into unsubsidized employment. Ten 
to fourteen WtW competitive grant project sites will be selected for 
an in-depth study of the net impact and cost-effectiveness in moving 
hard-to-employ recipients into employment. This analysis will rely 
on both administrative data and, potentially, in-person interviews 
with program participants. In addition, these sites will participate 
in a qualitative study of the issues, challenges, and successes 
associated with implementing and operating WtW programs. This 
qualitative analysis will rely on on-site interviews with program 
administrators and staff, administrative data, and potentially, 
focus groups with WtW participants.
    To qualify as a site for the in-depth study, the site must plan 
to serve at least 450 WtW eligible individuals. Up to five (5) bonus 
points are available to competitive grant applicants which meet this 
participant threshold and which are willing to participate in the 
net impact and cost-effectiveness components of the evaluation. 
Sites selected to participate in the evaluation will receive 
additional resources to cover the extra administrative costs 
associated with participating in the evaluation. Additionally, 
selected sites will have access to enhanced technical assistance 
from the evaluation contractor. Finally, the sites will benefit from 
a high-quality evaluation of their program, as well as the 
opportunity to have their program showcased nationally to 
demonstrate innovative techniques for serving hard-to-employ welfare 
recipients.

What Will Participation in the Net Impact and Cost-Effectiveness 
Components of the Evaluation Mean for the Selected Sites.

    To effectively measure the net impact and cost-effectiveness of 
specific service strategies, an experimental design involving the 
random assignment of individuals to either treatment status (receipt 
of WtW services) or control status (receipt of regular TANF 
services) will be used to estimate program net impacts. The random 
assignment approach will also be applied to test impacts among a 
variety of WtW services.
    Since the level of funding available to a particular WtW site 
will not be sufficient to serve the entire population eligible in 
that site, the applicant must demonstrate the capacity to design a 
random assignment study so that no fewer participants will be served 
by the WtW program than would have been served in the absence of the 
study. Random assignment will only change the mechanism by which 
program administrators would otherwise respond to the funding 
shortfall (e.g., waiting lists, first-come first-serve, priority 
groups). Nor will random assignment require excluding the control 
group from services--the control group will be eligible to receive 
the regular TANF services available to participants in the TANF 
program.

Application Process

    WtW applicants who would like to be considered as net impact and 
cost-

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effectiveness evaluation site should submit an ``Evaluation 
Addendum'' in addition to their programmatic application.
    The addendum should address the following items:

--Appropriateness of site for evaluation purposes. Because of the 
statistical requirements associated with random assignment, programs 
selected for the evaluation will need to serve at least 450 
participants in this grant cycle (with funding available over three 
years). Preference may be given to programs that address the areas 
of interest identified in the SGA and that will be able to be 
implemented quickly. The application should explain the importance 
of the program model for learning about effective strategies for 
hard-to-employ recipients. It also should include evidence of the 
applicant's understanding of what is required to carry out a net 
impact evaluation program under the coordination of a contractor, 
and evidence of the site's commitment to provide the necessary 
supports and resources to ensure the success of the project.
--Evidence of capacity to participate. Evaluation sites must be 
willing and able to collect administrative data on participants' 
experiences and outcomes. The following are specific examples of 
evaluation site requirements: utilizing staff time to oversee the 
administration of special data collection forms and reviewing them 
for completeness; having on staff personnel with knowledge about or 
experience in data systems management and extraction; utilizing 
staff time to contact program participants to set up meetings or 
elicit their cooperation in focus groups; helping to identify 
current address or additional contact information for participants 
who cannot be located after program termination; and utilizing 
management and staff time to meet with evaluation staff for 
individual and/or group interviews and information exchange. The 
application should list the ability of the site to participate in 
these tasks. It also should identify the key individuals who will 
work on the evaluation along with a short description of the nature 
of their contribution and the percentage of their time available for 
the project. There also should be evidence of support from 
management of the organization for the purposes of research and 
evaluation. Applicants are encouraged to discuss relevant staff 
experience with research and evaluation.
--Budget for reimbursement of evaluation costs. Additional grant 
funds are available to help defray the incremental administrative 
costs associated with the site's participation in the national 
evaluation. This may include the costs associated with special data 
collection and reporting (above that required of all WtW grant 
recipients), monitoring case status and ensuring that cases receive 
the services appropriate under the arrangements agreed upon for the 
evaluation, supporting the evaluation by notifying participants and 
arranging for meetings between evaluators and WtW participants, and 
providing liaison between the program and the evaluator as a part of 
the national evaluation team. Based on past experience, it is 
estimated that the costs to carry out these special tasks equate to 
between 1 and 1.5 full time employees (FTE) per year for a mid-range 
support staff person. WtW applicants applying to be considered as 
participants in this component of the evaluation should include a 
budget attachment that includes the costs of evaluation.

    Sites that are interested in participating in a random 
assignment experiment but are unsure whether they meet the criteria 
are encouraged to submit an application for the bonus points. 
Efforts will be made to work closely with the selected sites to 
facilitate participation in the study and to minimize the 
administrative burden of random assignment.

Appendix B: Definitions of Key Terms

    City with Large Concentration of Poverty--Any county that 
contains an urban center of more than 50,000 people with a poverty 
rate of greater than 7.5 percent.
    Community Saturation Strategy--Projects that propose to serve 
100 percent of the WtW eligible population within a designated 
service area, i.e., the community is completely ``saturated'' with 
services.
    Noncustodial Parent--A parent of a child whose custodial parent 
is an eligible TANF recipient.
    Private Entity--Any organization, public or private, which is 
neither a PIC nor a political subdivision of a State.
    Private Industry Council (PIC)--from Sec. 645.120 of the WtW 
Regulations--A Private Industry Council established under Section 
102 of the Job Training Partnership Act, which performs the 
functions authorized at Section 103 of the JTPA.
    Political Subdivision--A unit of general purpose local 
government, as provided for in State laws and/or Constitution, which 
has the power to levy taxes and spend funds and which also has 
general corporate and police powers.
    Rural Area--(1) Any county that does not contain an urban center 
of more than 50,000 people, and where at least 50 percent of the 
geographical area of the county has a population density of less 
than 100 persons per square mile; or (2) in counties where there is 
an urban center, a rural area within the county that constitutes, or 
is part of, a distinct rural labor market.

Appendix C: Application for Federal Assistance (Standard Form 424) 
Budget Information Sheet

    Note: In completing the Standard Form 424, the applicant should 
indicate in Item 11 of the form whether the project is to operate in 
a city with a large concentration of poverty or in a rural area; 
identify the EC/EZ included in the project service area, if 
applicable; and identify any of the areas of interest identified in 
the announcement which are addressed by the project.

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