[Federal Register Volume 63, Number 240 (Tuesday, December 15, 1998)]
[Notices]
[Pages 69103-69116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33169]



[[Page 69103]]

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DEPARTMENT OF LABOR

Employment and Training Administration

Job Training Partnership Act, Title III, Demonstration


Program: Incumbent Worker Demonstration Program

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of Availability of Funds and Solicitation for Grant 
Applications (SGA).

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SUMMARY: All information required to submit a grant application is 
contained in this announcement. The U.S. Department of Labor (DOL), 
Employment and Training Administration (ETA), announces a demonstration 
program to test the ability of the workforce development system to 
partner with employers, training providers and others to develop 
incumbent worker training programs which promote retention, as 
documented by continued employment at the employer-of-record; upgrading 
the skills of incumbent workers; increasing the firm's or firms' or 
sector's or industry's profitability; and enabling workers to become 
more competitive in the marketplace.
    The program will be funded with Secretary's National Reserve funds 
appropriated for Title III of the Job Training Partnership Act (JTPA) 
and administered in accordance with 29 CFR parts 95 and 97 as 
applicable.
    This notice provides information on the process that eligible 
entities must use to apply for these demonstration funds and how 
grantees will be selected. It is anticipated that up to $9 million will 
be available for funding demonstration projects covered by this 
solicitation.

DATES: The closing date for receipt of proposals is March 1, 1999 at 4 
p.m. (Eastern Time).

ADDRESSES: Applications shall be mailed to: U.S. Department of Labor; 
Employment and Training Administration; Division of Acquistion and 
Assistance; Attention: Mamie D. Williams, Reference: SGA/DAA 99-002; 
200 Constitution Avenue, N.W., Room S-4203; Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: Questions should be faxed to Mamie 
D.Williams, Division of Acquistion and Assistance. Telephone (202) 219-
8739 (this is not a toll-free number).

SUPPLEMENTARY INFORMATION: This announcement consists of five parts. 
Part I describes the authorities and purpose of the demonstration 
program and identifies demonstration policy. Part II describes the 
application process and provides guidelines for use in applying for 
demonstration grants. Part III includes the statement of work for the 
demonstration projects. Part IV describes the selection process, 
including the criteria that will be used in reviewing and evaluation 
applications. Part V discusses the demonstration program's monitoring, 
reporting and evaluation.

Part I. Background

A. Authority

    Section 323(a) (6) of JTPA (29 U.S.C. 1662b) authorizes the use for 
demonstration programs of funds reserved under section 302 of JTPA (29 
U.S.C. 1652) and provided by the Secretary for that purpose under 
section 322 of JTPA (29 U.S.C. 1662a). In addition, section 324 of the 
Act allows for demonstration projects that provide assistance to new 
entrants in the workforce and incumbent workers. Demonstration program 
grantees must comply with all applicable federal and state laws and 
regulations in setting up and carrying out their programs.

B. Purpose

    Employers and employees alike are facing increasing challenges in 
their efforts to remain competitive. Increased competition, along with 
other factors such as the reductions in the defense industry have 
resulted in significant downsizing of workforces. The increasing 
adoption of technology has resulted in the realization that the skills 
of many workers are redundant and must be upgraded in order for them to 
be able to compete in the current economy.
    Many organizations have seen the need to train and re-train 
existing members of their workforce to enable the companies, as well as 
the employees, to remain competitive. These organizations have invested 
in employer-based training to upgrade the skills of the current 
workforce. Some of this training is conducted in-house by company 
employees. Other training is contracted out to local training providers 
such as community colleges and private trade schools. Some firms, who 
may not have the capacity or resources to develop additional employer-
based training, have foregone training altogether but are finding that 
without it employees will be unable to progress to the next level, 
resulting in a workforce that is unable to keep up with the demands of 
the ever-changing marketplace. In addition, it has been documented by a 
number of studies that a small percentage of workers are the recipients 
of the majority of the training, leaving a large gap in the number of 
workers receiving sufficient training to remain competitive.
    While in general the term ``incumbent worker training'' may be used 
to denote any existing efforts on the part of employers to provide 
training to currently-employed workers in order to help keep these 
employees employed, the term will be used in the solicitation to 
describe efforts to keep firms and workers competitive by keeping 
workers employed, averting layoffs, upgrading workers' skills, 
increasing wages earned by employees, and improving employees' 
employability.
    The purpose of this demonstration is to test the ability of the 
nation's workforce development system to partner with employers, 
training providers and others to train and re-train incumbent workers 
in the nation's workforce. The U.S. Department of Labor has specific 
goals for the incumbent worker training demonstration. They are:
    1. To support projects that further job retention and career 
development for improved economic self-sufficiency for employed workers 
including those most vulnerable to job loss;
    2. To increase the capacity of the workforce development system to 
support incumbent worker training;
    3. To support projects that increase the capability of companies to 
access and retain skilled workers;
    4. To gain an increased understanding on ``return on investment,'' 
particularly through outcome measures;
    5. To increase training capacity and understanding of incumbent 
worker training by employers.

C. Demonstration Policy

1. Grant Awards
    DOL anticipates awarding a total of $9,000,000 to ten to twelve 
grants in two categories, with individual grant amounts varying 
depending upon the type of grant awarded. It is anticipated that awards 
will be made by April 30, 1999. Award decisions will be published on 
the Internet at ETA's Home Page at http://www.doleta.gov.
2. Allowable Activities
    Allowable activities include, but are not limited to, those listed 
under sections 314(c) and 314(d) of the Job Training Partnership Act. 
They include basic readjustment services such as assessment of 
educational attainment and interests and aptitudes. Job development and 
placement activities

[[Page 69104]]

are prohibited, as they are the responsibility of the employer in 
incumbent worker training situations. Training for workers may include 
basic education such as basic math, grammar, and English as a Second 
Language training, and skill training to upgrade existing skills, or to 
provide new skills.
    Funds provided through this demonstration may be used to provide 
supportive services, if appropriate based upon the needs of the 
workers, e.g., they are necessary to enable the individual who is 
eligible for training, but cannot afford to pay for such supportive or 
services to participate in the training program. Supportive services 
may be provided if appropriate to the needs of the workers. Such 
services are defined in section 4(24) of JTPA. (Use ETA's web site 
reference above to view.) Needs-related payments may not be provided 
with grant funds.
    Grant funds may be used to reimburse employers for extraordinary 
costs associated with on-the-job training of program participants, if 
appropriate and justified. Applicants must justify the use of grant 
funds for training that an employer is in a position to pay for and 
would have provided in the absence of the requested grant. Grant funds 
may not be used to pay salaries for program participants or for 
acquisition of production equipment. Applicants may budget funds to 
work with technical experts or consultants to provide advice and 
develop more complete project plans after a grant award. The level of 
detail in the project plan may affect the amount of funding provided.
3. Specific Outcome Goals
    For all projects, the specific outcome goals are as follows:
    (1) To develop incumbent worker training programs for current 
employees;
    (2) To develop partnerships with other entities in the development 
of the training program including other firms within the same industry; 
other firms within the same sectors; local training institutions; and/
or intermediary organizations such as unions, service delivery areas, 
states, substate regions, etc.
    (3) To develop incumbent worker training programs which result in 
one or more of the following:
    --To promote retention as documented by continued employment at the 
employer-of-record for specified period of time;
    --To improve workers' basic and transitional skills;
    --To upgrade skills of workers;
    --To maintain or increase wage levels;
    --To increase the firm's/ or firms'/ or sector's/ or industry's 
profitability;
    --To update workers' obsolete skills;
    --To enable workers to become more competitive in the marketplace.
    (4) To develop a training program which continues to be sustainable 
within firms and local areas after the period of the federal grant 
ends;
    (5) To document efforts toward achieving lifelong learning;
    (6) To develop and document efforts toward replicating the 
incumbent worker training effort elsewhere within the workforce 
development system;
    (7) To disseminate information on lessons learned throughout the 
workforce development system.
    In addition to the above, the following specific outcome goals 
apply to large firms or industries:
    --To develop incumbent worker training programs which result in one 
or more of the following:
    --To promote retention as documented by continued employment at the 
employer-of-record for specified period of time by focusing on non-
managerial workers most vulnerable to layoffs or those who would face 
barriers to reemployment at a similar wage if they were laid off;
    --To develop interventions for employees most ``at risk'' of job 
loss;
2. Types of Projects
    Two types of projects will be funded under this Solicitation for 
Grant Application (SGA): incumbent worker training for small and 
medium-size firms or regional sectors and incumbent worker training for 
large firms or industries. Applications for each type of project will 
be considered against other applications in the same category.
    A. Incumbent Worker Training for Small and Medium-size Firms or 
Regional Economic and Industry Sectors or Regional Industries. Many 
small and medium-size firms (those with 500 or fewer employees) may be 
unable to offer incumbent worker training solely with their own 
resources, but in combination with federal dollars may be able to 
develop incumbent worker training programs that result in one or more 
of the goals enumerated above. Many small firms may not have the 
capacity to apply for or administer a grant in isolation, but in 
combination with other firms in the same regional sector may be able to 
offer a more broad-based training effort that strengthens that regional 
sector. This type of project may only assist workers and firms with 500 
or fewer employees.
    Eligible Applicants: For projects providing incumbent worker 
training for small and medium-sized employers or regional economic and 
industry sectors or regional industries, the eligible applicant must be 
an intermediary organization, which will work with a number of small 
and medium-size employers and coordinate their training activities. 
Such intermediary organizations may include a state, another public 
entity, a training institution, such as a community college, a 
manufacturing extension center funded through the Department of 
Commerce's Manufacturing Extension Partnership Program, a substate 
grantee (SSG), or a local workforce board or private industry council. 
Federal funds may not be used to duplicate or supplant other funding 
available. Any intermediary organization capable of fulfilling the 
terms and conditions of this solicitation may apply.
    Under the Lobbying Disclosure Act of 1995, section 18, an 
organization described in section 501(c)(4) of the Internal Revenue 
code of 1986 which engages in lobbying activities shall not be eligible 
for the receipt of Federal funds constituting an award grant or loan. 
This is a risk-free Federal program: therefore, all for-profit 
organizations that apply will not be able to receive a fee if awarded a 
grant.
    Eligible Participants: Eligible participants for proposed projects 
include employed workers who are vulnerable to layoffs, who have low 
skills, those who are new entrants to the workforce, those in need of 
basic skills, those with obsolete skills, those who would face 
significant barriers to re-employment if laid off, and/or those who 
lack skills necessary to advance in the organization.
    Maximum Amounts Available: A maximum of $1,000,000 per project 
proposal, with no more than $100,000 in participant-related costs per 
individual firm. A total of $6,000,000 will be allocated for this 
activity.
    B. Incumbent Worker Training for Large Firms or Industries or 
Regional Sectors. Large firms or industries may have greater resources 
to develop and administer incumbent worker training programs, but may 
also have greater needs. In this case the federal funds may supplement 
the training efforts developed by large firms or industries to 
accomplish one or more of the goals enumerated above.
    Eligible Applicants: Eligible applicants for projects providing 
incumbent worker training for large employers or industries or regional 
sectors include employers with greater than 500 employees, or groups of 
large employers, or an intermediary organization such as a state, 
another public entity, a training institution, such

[[Page 69105]]

as a community college, a substate grantee (SSG), a manufacturing 
extension center funded through the Department of Commerce's 
Manufacturing Extension Partnership Program, or a local workforce board 
or private industry council, who would work with a number of large 
employers or industries or sectors and coordinate their training 
activities. Employers are encouraged to partner with other employers or 
organizations to make maximum use of available funding. Federal funds 
may not be used to duplicate or supplant other funding available. Any 
organization capable of fulfilling the terms and conditions of this 
solicitation may apply.
    Under Lobbying Disclosure Act of 1995, Section 18, an organization 
described in section 501(c)(4) of the Internal Revenue code of 1986 
which engages in lobbying activities shall not be eligible for the 
receipt of Federal funds constituting an award grant or loan. This is a 
risk free Federal program: Therefore, all for profit organizations that 
apply will not be able to receive a fee if awarded a grant.
    Eligible Participants: Eligible participants for proposed projects 
include non-managerial workers most vulnerable to layoffs and/or those 
who are low-waged, low-skilled, or those who would face significant 
barriers to reemployment at a similar wage if they were laid off, e.g., 
new entrants to the workforce, those in need of basic skills, and those 
with obsolete skills. Applicants must demonstrate that the incumbent 
workers are non-managerial employees.
    Maximum Amount Available: A maximum of $1,000,000 per grant with no 
more than $250,000 in participant-related costs per individual firm. A 
total of $3,000,000 will be allocated for this activity.
3. Coordination
    All applicants are required to demonstrate partnership 
relationships with publicly-funded local workforce organizations such 
as workforce investment boards, one-stop career centers, and private 
industry councils. Where appropriate, partnerships should also included 
trade unions, manufacturing extension programs, economic development 
organizations, training institutions, and other local stakeholders. Any 
efforts proposed in isolation will not have the maximum impact on 
building capacity within that region or industry and are not likely to 
be funded.
    In order to maximize the use of public resources and avoid 
duplication of effort, applicants must coordinate the delivery of 
services under this demonstration with the delivery of services under 
other programs (public or private), available to all or part of the 
target group. Projects linking or collaborating with an existing USDOL 
funded One-Stop/Career Center initiative and/or local JTPA Substate 
Grantee located within a project area fulfill this requirement.
4. Cost Sharing/Match
    Incumbent worker training should be a collaborative effort between 
private and public resources. The Department of Labor will not bear the 
entire cost of incumbent worker training through demonstration funding. 
It will be a shared expense, with DOL contributing a portion of the 
costs and the employer and/or other partners contributing the rest. 
Activities conducted should be eligible both for the match (or cost 
sharing) and the federal funds. Participating employers are expected to 
pick up the costs of some of these activities.
    There has been considerable discussion about the contributions to 
be made by the employer to publicly-financed incumbent worker training. 
The impact of cost sharing or match or the ability to cost share or 
match differs, depending upon such factors as the size of the 
workforce, the type of industry or sector being impacted, whether 
workers belong to a union or not, and the current financial state of 
the industry or firm. What may be seen as a sacrifice on the part of 
one employer may seem superfluous to another employer.
    Those items eligible to be considered part of the cost-sharing or 
match are described in section III.C., ``Collaboration and Cost 
Sharing/Match.''
5. Period of Performance
    The period of performance shall be 24 months from the date of 
execution by the Government.
6. Option to Extend
    DOL may elect to exercise its option to extend these grants for an 
additional one (1) or two (2) years of operation, based on the 
availability of funds, successful program operation, and the needs of 
the Department.

Part II. Application Process and Guidelines

A. Contents

    An original and 3 copies of the application shall be submitted. The 
application shall consist of two (2) separate and distinct parts: Part 
I, the Financial Proposal, and Part II, the Technical Proposal.
1. Financial Application
    Part I, the Financial Proposal, shall contain the SF-424, 
``Application for Federal Assistance'' (Appendix A) and the ``Budget 
Information'' (Appendix B). The Federal Domestic Assistance Catalog 
number is 17.246.
    The budget shall include on separate pages detailed breakouts of 
each proposed budget line item, including detailed administrative costs 
and costs for one or more of the following categories as applicable: 
basic readjustment services, supportive services, and retraining 
services. For each budget line item that includes funds or in-kind 
contributions from a source other than the grant funds, identify the 
source, the amount, and in-kind contributions, including any 
restrictions that may apply to these funds.
2. Technical Proposal
    Part II, the technical proposal shall demonstrate the applicant's 
capabilities in accordance with the Statement of Work in Part III of 
this solicitation. A grant application shall be limited to twenty (20) 
double-spaced, single-side, 8.5-inch x 11-inch pages with 1-inch 
margins. Attachments shall not exceed ten (10) pages. Text type shall 
be 11 point or larger. Applications that do not meet these requirements 
will not be considered. Each application shall include the Checklist 
provided as Appendix C, a Time line outlining project activities, and 
an Executive Summary not to exceed two pages. NO COST DATA OR REFERENCE 
TO PRICE SHALL BE INCLUDED IN THE TECHNICAL PROPOSAL.

B. Hand-Delivered Applications

    Applications should be mailed no later than five (5) days prior to 
the closing date for the receipt of applications. However, if 
applications are hand-delivered, they must be received at the 
designated place by 4 p.m., Eastern Time on the closing date for 
receipt of applications. All overnight mail will be considered to be 
hand-delivered and must be received at the designated place by the 
specified time and closing date. Telegraphed and/or faxed proposals 
will not be honored. Applications that fail to adhere to the above 
instructions will not be honored.

C. Late Applications

    Any application received at the office designated in the 
solicitation after the exact time specified for receipt will not be 
considered unless it:
    (1) Was sent by U.S. Postal Service registered or certified mail 
not later than the fifth calendar day before the closing

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date specified for receipt of applications (e.g., an offer submitted in 
response to a solicitation requiring receipt of application by the 30th 
of January must have been mailed by the 25th); 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 
application. The term ``working days'' excludes weekends and U.S. 
Federal holidays.
    The only acceptable evidence to establish the date of mailing of a 
late application sent by U.S. Postal Service registered or certified 
mail is the U.S. postmark 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 it had been 
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 an employee 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 application 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 postmarks on both the envelope and wrapper and the 
original receipt from the U.S. Postal Service. ``Postmark'' has the 
same meaning as defined above. Therefore, an applicant should request 
the postal clerk to place a legible hand cancellation ``bull's eye'' 
postmark on both the receipt and the envelope or wrapper.

D. Withdrawal of Applications

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

Part III. Statement of Work

    Each grant application must follow the format outlined in this 
Part. For sections A through G below, each application should include:
    (1) Information that indicates adherence to the provisions 
described in Part I, Background and Part II, Application Process and 
Guidelines, of this announcement; and
    (2) Other information that the applicant believes will address the 
evaluation criteria identified in Part IV of this solicitation.
    Information required under A and B below shall be provided 
separately for each labor market area where incumbent workers will be 
served. To the extent that the project design differs for different 
geographic areas, information required under section C below shall be 
provided for each geographic area.

A. Project Design

    This section should explain how firms and individuals within the 
target population will be identified for the project. Describe the 
assessment that will be conducted for participating firms and 
individuals. Describe how the type(s) of training planned for project 
participants will be determined, the types of training anticipated for 
participants, and the opportunities available upon completion of 
assessment and training services. Provide the documentation on which 
such descriptions are based. Include information about the number and 
type of jobs available which require updated skills not yet possessed 
by planned participants, wage information, and the information on 
specific sets of skills, knowledge or duties (including any industry-
sponsored standards or certifications) necessary to perform the jobs. 
Identify sources of the occupational information or data used. Identify 
the types of training necessary and how they are appropriate to the 
company(ies) or firm(s) or sector(s). Anecdotal data should not be 
used.
    Company, industry, or sector or other local labor market 
information can be used to document needs. Information from the Bureau 
of Labor Statistics (BLS) available through a variety of web sites can 
be used as a source of documentation. In addition, State Occupational 
Information Coordinating Committee (SOICC) and JTPA Substate Grantee 
local job training plans may also be considered. If training is needed 
for retention of workers, provide documentation that this is the case. 
If opportunities are not available for at-risk workers within the firm, 
but are available outside of the firm with additional training, please 
provide this documentation.
    (1) Purpose. Describe the specific purpose or purposes of the 
proposed project.
    (2) Target population. Describe the proposed target population for 
the project and how this population was identified. If that population 
is limited to one or more subgroups of the incumbent worker population, 
explain the basis for such limitation. Describe the size, location, and 
needs of the target population relative to the services to be provided. 
Provide documentation showing there is a significant number of 
incumbent workers with the target population's characteristics in the 
project area(s).
    (3) Outreach and recruitment. Describe how eligible incumbent 
workers and firms will be identified and recruited for participation in 
the project. Recruitment efforts may address public service 
communications and announcements, use of media, coordination with the 
JTPA Service Delivery Area or Substate Grantee, use of community-based 
organizations and other service groups. Describe the applicant's 
experience in reaching the target population.
    (4) Eligibility determination. Describe the criteria and process to 
be used in determining the appropriateness and eligibility of 
participating firms and the eligibility of potential participants in 
the project.
    (5) Selection criteria. Describe the criteria and process to be 
used in selecting those individuals to be served by the project from 
among the total number of eligible persons in participating firms. 
Explain how the selection criteria relate to the specific purpose of 
the proposed project.
    (6) Services to be provided. Describe the services to be provided 
from the time of selection of participants through the completion of 
training. Define the end of the service strategy. Describe any services 
to be provided after training or re-training. The descriptions shall 
provide a clear understanding of the services that will be necessary 
for participants to receive training, to retain or upgrade their jobs 
or job skills, including services not funded under the grant. Define 
whether the services to be provided are part of a retention strategy or 
other strategy for the worker and/or the company(ies). Grant-funded 
activities should, at a minimum, include assessment and training 
services. Identify policies to demonstrate when supportive services are 
appropriate for individual participants.
    Identify any assessment tools proposed to be used before or after 
services are provided to identify the needs of both the companies and 
the workers. Describe how training will be customized to account for 
transferable skills, previous education, and

[[Page 69107]]

particular circumstances of the target population and the skill needs 
of the employer(s). Include information to demonstrate that any 
proposed training provider is qualified to deliver training that meets 
appropriate employment standards, and any applicable certification or 
licensing requirement. Past performance, qualifications of instructors, 
accreditation of curricula, and similar matters should be addressed if 
appropriate. Address the costs of proposed training and other services 
relative to the costs of similar training and services through other 
providers.
    (7) Firm selection and participant flow. Provide flowcharts with 
time indications to illustrate how the project will work with firms and 
participating individuals to ensure access to necessary and appropriate 
services. Describe the sequence of services and the criteria to be used 
to determine the appropriateness of specific services for particular 
firms and individual participants. Define the end of the service 
strategy.
    (8) Relationship to prior experience. Show how the applicant's 
prior experience in working with incumbent workers affects or 
influences the design of the proposed project.

B. Planned Outcomes

    A description of the project outcomes and of the specific measures, 
and planned achievement levels, that will be used to determine the 
success of the project. These outcomes and measures may include, but 
are not limited to:
    (1) The number of participants projected: to be enrolled in 
services, to successfully complete services through the project, to 
retain their jobs after specified periods of time, to learn new skills 
which will assist them in retaining or upgrading their current 
positions or in moving to a new job, to be ``placed'' into new, 
enhanced jobs, or jobs in another occupational class or another 
occupation, if appropriate, either with the same company or another 
company;
    (2) Measurable effects of the services provided to project 
participants as indicated by gains in individuals' skills, 
competencies, or other outcomes;
    (3) Wages of participants prior to training and after training;
    (4) As part of the targeted outcome for wage after training, each 
project should benchmark the average weekly wage in the relevant sector 
or industry in the labor market in which each project will operate;
    (5) Customer satisfaction with the project services, and of 
critical points in the service delivery process for both employers and 
participating individuals;
    (6) Planned average cost per participant (amount of the grant 
request divided by the number of program-related training recipients); 
and
    (7) Employer-specific outcome measures that are relevant to the 
purpose of these grants, including measures related to participants' 
use of knowledge and skills learned during project-related training;
    (8) Other additional measurable, performance-based outcomes which 
are relevant to the project and which may be readily assessed during 
the period of performance of the project, such as cost effectiveness of 
services and comparison with other available service strategies, an 
increase in the firms' profitability, or the improved ability of 
workers to become more competitive in the marketplace.

    Note: An explanation of how such additional measures are 
relevant to the purpose of the demonstration program shall be 
included in the application.

    DOL may conduct additional studies during and after the completion 
of the projects examining such factors as long-term wage gains, 
retention, and labor market needs. Participating companies must agree 
to make such information available to DOL for at least a two-year 
period following the completion of the grant. Other information may be 
gathered by using Bureau of Labor Statistics data. DOL may contract 
with a qualified organization to conduct these follow-up studies.

C. Collaboration and Cost Sharing/Match

    Describe the nature and extent of collaboration and working 
relationships between the applicant and publicly-funded local workforce 
organizations such as workforce investment boards, one-stop career 
centers, and private industry councils, training institutions, and 
other local stakeholders in the design and implementation of the 
proposed project. In addition, describe partnerships with trade unions, 
manufacturing extension programs, economic development organizations, 
if applicable. Include services to be provided through resources other 
than grant funds under this demonstration. Applicants are encouraged to 
commit matching funds to the implementation and management of their 
proposed programs. Matches may be in the form of cash or in-kind 
contributions. These may include but are not limited to such 
contributions as the development of training modules; payment of 
tuition costs for training; support for child care or transportation; 
provision of staff time at no cost to the project; release time in 
order for employees to obtain training during their regularly-assigned 
work hours; replacement costs for workers to cover times when employees 
are in training; training space; the cost of paying the training 
providers to develop and/or provide training; the cost of staff time to 
coordinate training; actual cash contributed to sustain the training 
efforts; the purchase of training equipment and supplies; and any other 
justified and approved training-related expenses such as the cost of 
training managers, keeping in mind maintenance of effort.
    Sources of matching funds may include but are not limited to 
employers, employer associations, labor organizations, and training 
institutions. With reference to the sources and amounts of project 
funds and in-kind contributions identified in the financial proposal as 
being other than those requested under the grant applied for, describe 
the basis for valuation of those funds and contributions.
    Match is encouraged on a 50/50 basis--50 percent of the cost of the 
grant to be provided by the applicant or other entity and 50 percent by 
the grant. These percentages are guidelines that may be waived for 
extenuating circumstances described in the application by the 
applicant.
    Provide evidence which ensures the collaboration described can 
reasonably be expected to occur, such as letters of agreement or 
formally established advisory councils. Because a core purpose of this 
demonstration program involves the publicly funded workforce system, 
the applicant shall describe working relationships with local Substate 
Grantee(s) and One-Stop Career Center entities where present. Describe 
activities that may be undertaken to link activities to program 
interventions under this grant to employer, industry, or curriculum/
learning centers currently designing and developing occupational/job 
skill standards and certifications. Collaboration should focus on 
linking employers involved in grant activities with any employer, 
industry, or trade and worker association that has already developed or 
is developing skill standards certifications.
    Documentation of consultation on the project concept from 
applicable labor organizations must be submitted when 20 percent or 
more of the targeted population is represented by one or more labor 
organizations, or where the training is for jobs when a labor 
organization represents a substantial number of workers engaged in 
similar work.

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D. Innovation

    Describe any innovation in the proposed project, including (but not 
limited to) innovations in concepts to be tested, services, delivery of 
services, training methods, job development, or job retention 
strategies. Explain how the proposed project is similar to and differs 
from the applicant's prior and current activities. Describe how 
successful activities and processes will be institutionalized within 
participating firms, partners, and local areas.

E. Project Management

    (1) Structure. Describe the management structure for the project, 
including a staffing plan that describes each position and the 
percentage of its time to be assigned to this project. Provide an 
organizational chart showing the relationship among project management 
and operational components, including those at multiple sites of the 
project.
    (2) Program Integrity. Describe the mechanisms to ensure financial 
accountability for grant funds and performance accountability relative 
to job placements, in accordance with standards for financial 
management and participant data systems in 29 CFR Part 95 or 97, as 
appropriate, and 20 CFR 627.425. Explain the basis for the applicant's 
administrative authority over the management and operational 
components. Describe how information will be collected to determine the 
achievement of project outcomes as indicated in section D of this part; 
and report on participants, outcomes, and expenditures.
    (3) Monitoring and Reporting.
    (a) Describe how the project will keep records of its activities, 
as required in 20 CFR 631.63 and 29 CFR parts 95 and 97 as appropriate, 
which will include information such as the following:
    (b) Benchmarks. Provide a timeline of benchmarks covering the 
period of performance of the project. Include a monthly schedule of 
planned start-up events; a quarterly schedule of planned participant 
activity, showing cumulative numbers of participating firms, 
enrollments, participation in training and other services, terminations 
and quarterly cumulative expenditure projections.
    (c) Participant progress. Describe how a participant's and a firm's 
continuing participation in the project will be monitored.
    (d) Project performance. Identify the information on project 
performance that will be collected on a short-term basis (e.g., weekly 
or monthly) by program managers for internal project management to 
determine whether the project is accomplishing its objectives as 
planned and whether project adjustments are necessary.
    Describe the process and procedures to be used to obtain feedback 
from participants, employers, and any other appropriate parties on the 
responsiveness and effectiveness of the services provided. The 
description shall identify the types of information to be obtained, the 
methods and frequency of data collection, and ways in which the 
information will be used in implementing and managing the project. 
Grantees may employ focus groups and surveys, in addition to other 
methods, to collect feedback information. Technical assistance in the 
design and implementation of customer satisfaction data collection and 
analysis may be available through DOL-supported initiatives.
    (e) Impact of Coordination and Innovation. Describe the process for 
assessing and reporting on the impact of coordination and innovation in 
the project with respect to the purpose and goals of the demonstration 
program and the specific purpose and goals of the project.

F. Grievance Procedure

    Describe the grievance procedure to be used for grievances and 
complaints from participants, contractors, and other interested 
parties, consistent with the requirements at section 144 of JTPA and 20 
CFR 631.64(b) and (c).

G. Previous Project Management Experience.

    Provide an objective demonstration of the grant applicant's ability 
to manage the project, ensure the integrity of the grant funds, and 
deliver the proposed performance. Indicate the grant applicant's past 
experience in the management of grant-funded projects similar to that 
being proposed, particularly regarding oversight and operating 
functions including financial management.

Part IV. Evaluation Criteria

    Selection of grantees for awards will be made after careful 
evaluation of grant applications by a panel selected for that purpose 
by DOL. Panel results will be advisory in nature and not binding on the 
ETA Grant Officer. Panelists shall evaluate proposals for acceptability 
based upon overall responsiveness in accordance with the factors below.

A. Target Population (15 points)

    The description of the characteristics of the target group of firms 
and individuals to be served is clear and meaningful, and sufficiently 
detailed to determine the potential participants' service needs. 
Employer commitment and readiness are demonstrated either through 
direct evidence or a rigorous assessment process. Sufficient 
information is provided to explain how the number of firms served and 
incumbent workers to be enrolled in the project was determined. The 
service plan supports the number of planned enrollments. The target 
population is appropriate for the specific purpose of the proposed 
project.

B. Service Plan and Cost (30 points)

    (a) The scope of services to be provided is consistent with the 
demonstration program and project purposes and goals.
    (b) The scope of services to be provided is adequate to meet the 
needs of the target population given:
    (1) Their characteristics and circumstances;
    (2) The opportunities available after training relative to targeted 
wages and job openings;
    (3) The match between documented demand skills and the training 
planned;
    (4) The documentation provided specifying that training meets or is 
developed based on industry driven skill standards or certifications;
    (5) The length of program participation planned.
    (c) Documentation and reliability of skills needs within 
participating firms and/or labor markets is based upon recognized, 
reliable and timely sources of information.
    (d) The project service plan for incumbent worker training is a 
complementary component to the provision of other forms of assistance 
to participating firms.
    (e) Proposed costs are reasonable in relation to the 
characteristics and circumstances of the target group, the services to 
be provided, planned outcomes, the management plan, and coordination/
collaboration with other entities, including the One-Stop Career Center 
System. The impact of innovation on costs is explained clearly in the 
proposal and is reasonable.
    (f) Identification is provided of the specific sources and amounts 
of other funds which will be used, in addition to funds provided 
through this grant, to implement the project. The application must 
include information on any non-JTPA resources committed to this 
project, including employer funds, grants, and other forms of 
assistance, public and private. Value and level of external resources 
being contributed, including employer contributions, to

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achieve program goals will be taken into consideration in the rating 
process.

C. Management (20 points)

    The applicant (as a part of a collaborative approach) has 
experience working with or has partnered with organizations skilled in 
assessing training needs and developing training. The management 
structure and management plan for the proposed project will ensure the 
integrity of the funds requested. The project work plan demonstrates 
the applicant's ability to effectively track project progress with 
respect to planned performance and expenditures. Sufficient procedures 
are in place to use the information obtained by the project operator(s) 
to take corrective action if indicated. In addition, review by 
appropriate labor organizations, where applicable, is documented.
    The proposal includes a method of assessing customer feedback for 
both participants and employers involved, and establishes a mechanism 
to take into account the results of such feedback as part of a 
continuous system of management and operation of the project.

D. Collaboration (20 points)

    The proposal includes evidence of direct participation by JTPA 
Substate Grantees and the One-Stop Career Center System (where present) 
in the planning and management of this grant. Evidence of involvement 
by actual or prospective participating employers whose positions are 
targeted under the grant is present. Evidence of coordination with 
other programs and entities for project design or provision of services 
may also be provided. Evidence is presented that ensures cooperation of 
coordinating entities, as applicable, for the life of the proposed 
project. Relationship to a regional and/or State plan for economic and 
workforce development is clearly articulated. The project includes a 
reasonable method of assessing and reporting on the impact of such 
coordination, relative to the demonstration purpose and goals and the 
specific purpose and goals of the proposed project.

E. Innovation (10 points)

    The proposal demonstrates innovation in the concept(s) to be 
tested, the project's design, and/or the services to be provided. 
``Innovation'' refers to the degree to which such concept(s), design 
and/or services are not currently found in incumbent worker programs. 
The project includes a reasonable method of assessing and reporting on 
the impact of such innovation, relative to the demonstration program 
and project purposes and goals. The proposal identifies potential 
benefits for other workforce development programs resulting from this 
grant.

F. Sustainability (5 points)

    The proposal provides evidence that, if successful, activities 
supported by the demonstration grant will be continued after the 
expiration date of the grant, using other public or private resources. 
The proposal identifies active planning or other developmental 
activities for incumbent worker training that will build on and benefit 
from this project. These may be within participating firms or in 
external activities.
    Grant applications will be evaluated for the reasonableness of 
proposed costs, considering the proposed target group, services, 
outcomes, management plan, and coordination with other entities.
    Applicants are advised that discussions may be necessary in order 
to clarify any inconsistency or ambiguity in their applications. The 
final decision on awards will be based on what is most advantageous to 
the Federal Government as determined by the ETA Grant Officer. The 
Government may elect to award grant(s) without discussion with the 
applicant(s). The applicant's signature on the Application for Federal 
Assistance (Standard Form) SF-424 constitutes a binding offer.

Part V. Monitoring, Reporting and Evaluation

A. 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. 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 participants who 
are served, expenditure of grant funds on allowable activities, 
collaboration with other organizations as required, and methods for 
assessment of the responsiveness and effectiveness of the services 
being provided. Grants may be subject to their additional reviews at 
the discretion of the Department.

B. Reporting

    DOL will arrange for or provide technical assistance to grantees in 
establishing appropriate reporting and data collection methods and 
processes taking into account the applicant's project management plan. 
An effort will be made to accommodate and provide assistance to 
grantees to be able to complete all reporting electronically.
    Applicants selected as grantees will be required to provide the 
following reports:
    1. Monthly and Quarterly Progress Reports.
    2. Standard Form 269, Financial Status Report Form, on a quarterly 
basis.
    3. Participant and firm-based reporting (to be developed).
    4. Final Project Report including an assessment of project 
performance. This report will be submitted in hard copy and on 
electronic disk utilizing a format and instructions to be provided by 
the Department.

C. Evaluation

    DOL will arrange for or conduct an independent evaluation of the 
outcomes, impacts, and benefits of the demonstration projects. Grantees 
must agree to make available records on participants and employers and 
to provide access to personnel, as specified by the evaluator(s) under 
the direction of the Department.

    Signed at Washington, DC this 10th day of December, 1998.
Janice E. Perry,
Grant Officer.

Appendices

1. Appendix A--Application for Federal Assistance (Standard Form 424)

2. Appendix B--Budget Information

3. Appendix C--Application Checklist

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[FR Doc. 98-33169 Filed 12-14-98; 8:45 am]
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