[Federal Register Volume 65, Number 178 (Wednesday, September 13, 2000)]
[Notices]
[Pages 55288-55302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23430]


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DEPARTMENT OF LABOR

Employment and Training Administration


Grants for Implementing Individual Training Account (ITA) 
Approaches Through the ITA Experiment

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

ACTION: Notice of availability of funds and solicitation for grant 
applications (SGA). This Notice Contains All of the Necessary 
Information and Forms Needed to Apply for Grant Funding.

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SUMMARY: The U.S. Department of Labor (DOL), Employment and Training 
Administration (ETA) announces a competitive solicitation for grant 
applications (SGA) and the availability of approximately $4.5 million 
for approximately six grant awards. Through this notice, DOL seeks to 
identify local Workforce Investment Areas (local areas) committed to 
implementing three distinctly different approaches for delivering 
Individual Training Accounts (ITAs) to their customers (participants). 
Applicants awarded a grant under this SGA will participate in the ITA 
Experiment, the purpose of which is to provide better information to 
State and local administrators as they determine the roles of 
counselors in the management of participant choices in ITAs; plan the 
allocation of staff and training resources to best meet their 
objectives; and strive for the continuous improvement of services under 
the Workforce Investment Act (WIA).
    The WIA legislation provides States and locals with considerable 
flexibility in using ITAs to manage participants' choices of training 
providers. State and local administrators are therefore faced with 
developing their own ITA approaches to best serve their participants. 
The ITA Experiment will test three ITA approaches from a spectrum of 
possible ITA approaches that could be adopted by local areas. All 
eligible participants will receive an ITA offer; that is, there will be 
no ``control group'' where participants are denied ITAs. Control groups 
will not be used because the goal of the ITA Experiment is to see which 
type of ITA approach, or aspects of those approaches, works best. By 
rigorously testing three very different ITA approaches, the ITA 
Experiment will help to establish which approach(es) work best for 
participants, for counselors, for local areas, and for the workforce 
development system as a whole. Administrators will be able to use this 
information to determine how to design an ITA system best suited for 
their State or local community.
    Applicants awarded a grant under this SGA will receive the 
following benefits: (1) Federal funding to support administrative costs 
and other activities related to implementation and operation of ITAs; 
(2) support from DOL and research contractor staff experienced with and 
knowledgeable about ITAs and related employment and training 
activities; (3) technical assistance in implementing ITAs that is based 
on the most current research findings from the employment and training 
community nationwide; (4) on-going support from the research 
contractors in conducting all experimental activities, where the 
objectives of the research contractors will be to involve local staff 
in planning, minimize the burden on local staff, and provide responsive 
technical assistance and clear training materials; and (5) practical 
information on what ITA approach works best in their community. It is 
anticipated that grantees selected to implement the ITA approaches 
under this SGA will be exempt from performance measures for the length 
of the intake period.

DATES: Applications will be accepted commencing on the date of 
publication. The closing date for receipt of applications under this 
announcement is Thursday, November 30, 2000, at 4:00 p.m. Eastern 
Standard Time (EST) at the address below. Telefacsimile (FAX), 
Telegraphed, or Electronic Applications Will Not Be Honored.

ADDRESSES: Applications shall be mailed to the U. S. Department of 
Labor, Employment and Training Administration, Division of Federal 
Assistance, Attention: Ms. Yvonne Harrell, SGA/DFA 00-111, 200 
Constitution Avenue, NW., Room S-4203, Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: Questions should be faxed to Ms. 
Yvonne Harrell, Grants Management Specialist, Division of Federal 
Assistance, Fax (202) 219-8739. This is not a toll-free number. All 
inquires should include the SGA number (DFA 00-111), and a contact 
name, fax and telephone numbers. This solicitation is also being 
published on the Internet at ETA's home page at www.doleta.gov. Award 
notifications will also be published on the ETA home page.

SUPPLEMENTARY INFORMATION:

I. Authority

    The Individual Training Account (ITA) Experiment is being conducted 
under Section 171(c) of the Workforce Investment Act, which provides 
DOL/ETA with the authority to conduct multi-service projects, research 
projects, and multi-state projects. For example, multi-service projects 
test an array of approaches to the provision of employment and training 
services to a variety of targeted population; design, develop, and test 
various training approaches in order to determine effective practices; 
and assist in the development and replication of effective service 
delivery strategies for targeted populations for the national 
employment system as a whole. Research projects contribute to the 
solution of employment and training problems. Multi-state projects 
effectively disseminate best practices and models for implementing 
employment and training services; and obtain information relating to 
the provision of services under different economic conditions or to 
various demographic groups in order to provide guidance at the national 
and State levels about how to best administer specific employment and 
training services.

II. Part I--Background Summary

    ETA is soliciting proposals on a competitive basis for the 
implementation of three different ITA approaches for managing a 
participant's choice in the administration of ITAs under the Workforce 
Investment Act (WIA). The ITA approaches will be implemented through 
the ITA Experiment to provide State and local administrators with 
information on the effects of different ITA approaches to assist them 
in determining which approach is most appropriate to adopt.
    This announcement consists of six parts:

(1) Part I--Background Summary
(2) Part II--Eligible Applicants and Application Process.
(3) Part III--Statement of Work
(4) Part IV--Submission of Application
(5) Part V--Rating Criteria and Selection Process

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(6) Part VI--Monitoring, Reporting & Evaluation Requirements

A. Additional Background Information

    On August 7, 1998, President Clinton signed the Workforce 
Investment Act (WIA) of 1998, a comprehensive reform legislation that 
superseded the Job Training Partnership Act (JTPA) on July 1, 2000. The 
WIA encourages States and localities to envision and implement a system 
of delivering training services to participants that goes beyond the 
status quo, as well as strive to continuously improve that system over 
time. A key element of the WIA is the requirement that local Workforce 
Investment Areas (WIAs) establish Individual Training Accounts (ITAs) 
to provide training services to participants. ITAs are intended to 
transform the delivery of services to adults and dislocated workers by 
enabling participants to choose their training providers. WIA also 
gives States and local areas a great deal of flexibility in deciding 
how much guidance and direction they will provide to participants in 
choosing the appropriate training.
    Given the flexibility provided by WIA, State and local officials 
must decide how to administer ITAs for their participants who need 
training services. The ITA Experiment is designed to form these 
decisions by testing different approaches to managing participant 
choices in the administration of ITAs. The findings from this 
experiment will reveal how the different ITA approaches affect training 
choices, employment and earnings outcomes, returns on training 
investments, and participant satisfaction. State and local 
administrators may use this information to determine which ITA 
approach, or aspects of these approaches, is most appropriate for their 
participants.

B. Benefits to Local Areas Selected Under This SGA

    Participation in the ITA Experiment will offer the following 
benefits for local areas:
     Federal funding to support administrative costs and other 
activities related to implementation and operation of ITAs;
     Support from the Department of Labor and research 
contractor staff experienced with and knowledgeable about ITAs and 
related employment and training activities;
     Technical assistance in implementing ITAs based on the 
most current research findings from the employment and training 
community nationwide;
     Ongoing support from the research contractors in 
conducting all experimental activities, where the objectives of the 
contractors will be to involve local staff in planning, minimize the 
burden on local staff, and provide responsive technical assistance and 
clear training materials; and
     Information on which of the ITA approaches work best in 
their community.

Part II: Eligible Applicants and Application Process

A. Eligible Applicants

    Applicants eligible for this grant must be either (1) a single 
local Workforce Investment Board (Local Board) applying with strong 
evidence of support from the State, or (2) a consortium of two 
contiguous Local Boards applying with strong support from their 
respective State(s). Applicants must provide clear evidence of support 
from the State in their application. Applications will not be 
considered without this evidence.
    One of the key objectives of the ITA Experiment is to detect the 
impacts of substantially different ITA approaches to determine which 
approach works best, and for whom. In order to obtain accurate and 
reliable estimates of outcomes for the different ITA approaches, the 
research contractor for this effort has determined that a minimum 
sample size requirement of at least 550 training recipients in one 
program year is needed for each selected applicant. Thus, applicants 
applying as an individual Local Board must provide evidence of a 
minimum flow of 550 training recipients in one program year. Applicants 
applying as a consortium must provide evidence of a combined total of 
at least 550 training recipients in one program year. DOL encourages 
collaboration among Local Boards with a smaller flow of training 
recipients to apply as a consortium if the combined flow of training 
recipients is anticipated to be at least 550. Applicants applying 
together as a consortium must be contiguous, i.e., Local Boards must be 
from the same adjoining region. Applicants applying as a consortium who 
are selected for the project will receive a maximum amount of $750,000 
for the consortium. This amount will be distributed proportionately to 
the number of training recipients each Local Board expects to 
contribute to the total number of expected training recipients. For 
example, if a consortium consists of two Local Boards, and the first 
Local Board anticipates a flow of 250 training recipients, while the 
second Local Board anticipates a flow of 400, the consortium will have 
a combined total of 650 training recipients. Since the first Local 
Board is providing for 250 of the 650 total training recipients (38% of 
the total number of training recipients), it will receive approximately 
$285,000 of the $750,000 grant (38% of the total grant award). Since 
the second Local Board is providing for 400 of the total 650 training 
recipients (62% of the total number of training recipients), it will 
therefore receive approximately $465,000 of the $750,000 grant (62% of 
the total grant award).
    Applicants awarded this SGA must serve both adults and dislocated 
workers eligible for WIA training.

B. Grant Funding and Period of Performance

    It is anticipated that $4.5 million will be available to make 
approximately six grant awards with a maximum award amount of $750,000 
each. The period of performance will be approximately 36 months from 
the date of execution by the Department.

C. Option to Extend

    The Department of Labor may exercise its option to extend these 
grants for an additional period depending upon the availability of 
funds, the awardee's performance, and the needs of the ITA Experiment.

D. Allowable Activities

    In general, there are specific activities that will be funded 
through the grant funds awarded under this contract. These include 
activities related to implementation, random assignment of the 
participants to one of the three ITA approaches, and data collection 
for the ITA Experiment. The following are some examples of how these 
funds might be used to support the ITA Experiment:
    a. Administrative expenses (including staff training) necessary for 
understanding the delivery of the ITA approaches, random assignment, 
and data collection;
    b. Administrative expenses for the delivery of orientation sessions 
on ITAs, counseling, and other services required under the ITA 
Experiment;
    c. Administrative expenses related to the Eligible Training 
Provider (ETP) list process;
    d. Expenses related to the operation and maintenance of the Service 
Tracking System (STS) for the ITA Experiment;
    e. Travel and other expenses related to participation in networking 
and dissemination activities offered in conjunction with the ITA 
Experiment;
    f. Travel and related expenses for the ITA Experiment; and

[[Page 55290]]

    g. Other related and reasonable costs associated with 
implementation of the ITA Experiment.
    One of the objectives for the ITA Experiment is to provide 
information on ITA approaches using resources consistent with the 
funding level normally available to Local Boards for training 
participants under WIA. As a result, grant funds are not intended to 
supplement direct ITA expenditures for their participants. Limited 
exceptions may be made only with the recommendation and approval of 
DOL. For example, DOL may approve up to 10% of the grant for direct 
training expenditures to participants.

E. Collaboration

    Applicants are expected to collaborate with State, One-Stop 
administrative staff, counselors, training vendors, participants, 
management information systems staff, financial staff, and other 
related partners. Applicants are also expected to collaborate with DOL 
and the research contractors evaluating the ITA Experiment.

Part III. Statement of Work

A. Purpose

    A key element of the Workforce Investment Act (WIA) is the 
requirement that local Workforce Investment Areas (local areas) 
establish Individual Training Accounts (ITAs) to provide training 
services to participants. ITAs are intended to transform the delivery 
of services to adults and dislocated workers by ensuring that 
participants can choose their training providers. WIA also gives States 
and local areas a great deal of flexibility in deciding how much 
guidance and direction they will provide to participants in choosing 
appropriate training.
    Given the flexibility provided by WIA, State and local officials 
must decide how to administer ITAs for their participants who need 
training services. The ITA Experiment is designed to provide assistance 
in these decisions by testing different approaches to managing 
participant choice in the administration of ITAs. The findings from 
this experiment will reveal how the different ITA approaches affect 
different training choices, employment and earnings outcomes, returns 
on training investments, and participant satisfaction. State and local 
administrators can use this information to determine which ITA 
approach, or combination of approaches, is most appropriate for their 
participants.
    The ITA Experiment will test three alternative approaches to 
managing participant choice with ITAs. These approaches were designed 
based on extensive research conducted by the Department of Labor and 
the team of research contractors evaluating the experiment. This 
research included discussions with various stakeholders and visits to 
several local areas that are already operating some type of training 
voucher program. Information gathered during this research was used to 
design three ITA approaches that are consistent with WIA; have the 
potential for generating different training choices and outcomes; and 
are both feasible and likely to be of interest to local areas 
implementing WIA.
    The ITA approaches to be tested in the experiment vary on three 
characteristics related to the management of participant choice: (1) 
The method used to determine each participant's ITA spending; (2) the 
ability of local counselors to guide or limit the choice of training 
providers made by participants; and (3) the type of counseling provided 
and whether it is mandatory or voluntary. We use these variations as 
the basis for defining the three ITA approaches to be tested from a 
spectrum of possible ITA systems, which range from a highly structured 
approach to a true voucher approach. The approach in the middle of this 
range is intended to broadly represent what most local areas are doing 
on their own, while the other two approaches are designed to be more or 
less structured than what most local areas are doing on their own.
    The ITA approaches will be tested in an experimental setting; that 
is, new participants determined to be eligible for training will be 
randomly assigned by lottery to one of the ITA approaches. The lottery 
will be conducted by the research contractors evaluating the 
experiment. The participant will then be directed to participate in the 
activities of the ITA approach to which he or she is randomly assigned. 
All eligible participants will receive an ITA offer; that is, there 
will be no ``control group'' where participants are denied ITAs. 
Control groups will not be used because the goal of the ITA Experiment 
is to see which type of ITA approach works best overall and for 
different participants. Random assignment is crucial to the success of 
the experiment because it will ensure that participants assigned to 
each ITA approach are similar, on average. Hence, any differences 
between approaches in terms of the experiences of participants and 
their outcomes can be attributed to the ITA approaches themselves.
    Enrollment into the experiment will begin on July 1, 2001, and 
local areas awarded grants under this SGA must commit to an enrollment 
period of 12 to 18 months. Local areas choosing to participate in the 
experiment must also commit to operating the three ITA approaches, 
supporting random assignment, and helping collect data to support the 
experiment. DOL and the research contractors will guide and assist 
local areas in carrying out each of these activities.
    DOL has funded a separate contract with a research contractor, 
Mathematica Policy Research, to provide technical assistance and 
evaluation activities for the ITA Experiment. Based on preliminary 
grantee site visits, the researchers will adapt the experimental 
procedures to the conditions at each site. Each site will be provided 
with the necessary hardware to operate the software being developed for 
this project, pre-implementation training sessions, an implementation 
guide, and a variety of related documents to support the implementation 
and operation of ITAs through the ITA Experiment.
    Participation in the ITA Experiment will offer the following 
benefits for the local areas selected under this SGA:
     Federal funding to support administrative costs and other 
activities related to implementation and operation of ITAs;
     Support from Department of Labor and research contractor 
staff experienced with and knowledgeable about ITAs and related 
employment and training activities;
     Technical assistance in implementing ITAs that is based on 
the most current research findings from the employment and training 
community nationwide;
     Ongoing support from the research contractors in 
conducting all experimental activities, where the objectives of the 
researchers will be to involve local staff in planning, minimize the 
burden on local staff, and provide responsive technical assistance and 
clear training materials; and
     Information on which of these ITA approach(es) works best 
in their community.

B. Overview of Major Tasks and Schedule of Milestone Activities

    A challenge for One-Stop administrators is to allocate limited 
training resources to achieve the best possible outcomes while 
preserving participant choice. To provide information to localities on 
which ITA approach may work best for them and their participants, the 
ITA Experiment will rigorously assess three distinct ITA approaches 
that represent different

[[Page 55291]]

strategies for meeting this challenge. Grantee sites selected to 
participate in the ITA Experiment must demonstrate a commitment to 
implementation of the ITA research design for the ITA Experiment, which 
includes the following major tasks (a description of the activities 
related to these major tasks are described later in this Statement of 
Work):
    Task 1. Understanding and planning for the delivery of the three 
ITA approaches that are described in this Statement of Work;
    Task 2. Implementation of the ITA Experiment, including the 
delivery of the three ITA approaches, enrollment, and random assignment 
of participants to one of the ITA approaches;
    Task 3. Data collection of information necessary for the evaluation 
of the ITA Experiment.
    A preliminary time line for the implementation of the ITA 
Experiment is as follows:

               Preliminary Schedule of Milestones Activities for Implementation of ITA Experiment
----------------------------------------------------------------------------------------------------------------
    Milestone activities                                             Date
----------------------------------------------------------------------------------------------------------------
First Grantee Meeting.......  February 2001.
Grantees work with DOL and    February 2001-June 2001.
 researchers for planning
 the operational procedures
 in each site for
 implementation of the ITA
 approaches, random
 assignment, and data
 collection.
Grantees receive necessary    February 2001.
 hardware from DOL for the
 management information
 system, which is the
 Service Tracking System
 (STS); DOL provides
 technical assistance to
 grantee sites to ensure
 hardware is compatible with
 the DOL-developed software
 for the STS.
DOL testing of STS software   March 2001.
 at Pilot Site\*\.
On-Site Training Session for  March 2001.
 Pilot Site staff.
Pilot Site begins enrollment  April 1, 2001.
 for ITA Experiment.
On-Site Training Sessions     May thru June 2001.
 for each Grantee.
Software and computers for    May thru July 1, 2001.
 the ITA Experiment are
 fully operational at all
 Grantees.
Grantees begin enrollment     July 1, 2001.
 for ITA Experiment.
Three rounds of Site Visits   Dates to be determined.
 to be conducted by the
 researchers.
State staff assists           To begin following the completion of experimental operations.
 researchers with compiling
 wage records and other
 administrative data on all
 participants in the
 experiment.
----------------------------------------------------------------------------------------------------------------
\*\ The Pilot Site will be determined at a later date by DOL from among the grantees selected for this project.
  All grantees selected for funding under this SGA must commit to serving as a pilot site, if selected. The
  grantee selected as the pilot site will have the opportunity to begin ITA implementation and operation before
  July 1, 2001, and will receive immediate TA for early implementation and operation of the ITAs. However,
  please note that the pilot site will not receive additional funding above the funding level stated in this
  SGA.

C. Overview of Evaluation Components

    The ITA Experiment will be evaluated by a team of research 
contractors, which will be led by Mathematica Policy Research, and will 
include Social Policy Research Associates and Decision Information 
Resources. Please note that this evaluation is fully funded through a 
separate contract with DOL, and will not require any additional funding 
through this SGA. The evaluation will include two parts. The first part 
will be an analysis of implementation and operation of the different 
ITA approaches. This analysis will be based on data collected during 
three rounds of visits to the grantees participating in the experiment. 
During these visits the researchers will examine implementation and 
operation of the three ITA approaches from various perspectives, 
including those of State and local administrators, participants, and 
training providers. The second part of the evaluation will be an 
analysis of participant outcomes and the returns on the investment in 
the different ITA approaches. This analysis will focus on the 
differences in participant outcomes, such as training choices and 
employment and earnings, generated by the three ITA approaches. Data 
for this analysis will be drawn from State wage record files and other 
administrative records, the Service Tracking System (STS) developed by 
DOL specifically for the experiment, and a follow-up survey of 
participants.

D. Description of Major Tasks

Task 1: Understanding and Planning for the Delivery of the Three ITA 
Approaches
    The basic features of the three ITA approaches to be tested are 
summarized in Table 1. These features include the overall philosophy of 
the approach, the structure of the ITA, the counseling activities 
required for participants, and the role counselors play in helping 
participants formulate their training decisions.
    The first activity in each ITA approach is an orientation session, 
in which participants are informed about all available services and 
about the activities that are required for their particular approach. 
Beyond this point, the activities in each approach diverge. The 
researchers will provide documents and other tools to support the 
orientation sessions as well as the various counseling activities in 
each approach. Counseling activities selected for the experiment will 
represent some of the best practices that have been found in support of 
informed participant choice of training.
    1. Approach 1: Structured Participant Choice. Approach 1 is the 
most structured of the three approaches to be tested. In this approach, 
counselors play a central role by directing participants and scarce WIA 
resources to training programs expected to yield a high return--that 
is, programs through which earnings on the new job will be high 
relative to the investment in training. Participants assigned to 
Approach 1 will be guided through a calculation of the benefits and 
costs of appropriate training options and toward options that offer the 
greatest expected returns. Moreover, counselors will reject training 
selections not consistent with this approach.
    Once appropriate training has been chosen, participants will 
receive an ITA to cover the costs of training. Therefore, the amount of 
the ITA is considered to be ``customized'' to the individual based on 
the training program approved by the counselor. More specifically, the 
value of the ITA will equal the cost of the approved training program 
minus any support available from other sources, subject to a local 
ceiling or ``cap'' on ITA expenditures. With guidance from the research 
evaluation team, localities

[[Page 55292]]

will set this cap high enough to cover even high-cost programs on the 
State's Eligible Training Provider (ETP) list. Only counselors will 
know the cap: participants will not be provided with this information 
but will be informed about the amount of their own ITA. Since the ITA 
is set according to the cost of training under Approach 1, most 
participants assigned to this approach will not spend up to the ITA 
cap.
    To help participants identify appropriate training, local staff 
will take participants through a sequence of training-related 
counseling activities. These activities have been designed to help 
local staff identify high-return training strategies and determine the 
appropriate ITA amount. Staff will use a benefit-cost guidebook and 
worksheet, which will be provided by the researchers, to guide 
participants to high-return training. Participants must complete the 
required counseling activities to receive approval for their training 
selections. Approval will be based on three conditions: (1) The 
selected program is on the State-approved list of eligible training 
providers, (2) the participant is expected to be able to complete the 
training, and (3) the selected program is expected to enable the 
participant to become employed in an occupation with high earnings 
relative to the resources being invested. While counselors will not be 
able to require a particular training program for a participant, they 
will have the authority to reject a participant's training selection if 
it does not meet any one of these three conditions. In this way, 
counselors will have a fairly high degree of control in directing 
participants to training programs that promise the highest returns on 
investment.
    2. Approach 2: Guided Choice. Approach 2 is designed to broadly 
represent the approach that localities are most likely to adopt as they 
make the transition to the new WIA training environment. Local 
counselors will play an important but less directive role in Approach 2 
than in Approach 1. Their objective is to ensure that participants make 
informed training decisions, taking into account the advantages and 
disadvantages of alternative providers and the tradeoffs implicit in 
devoting more or fewer ITA resources to direct training costs. For this 
objective to be achieved, Approach 2 participants, like Approach 1 
participants, will be required to participate in structured counseling 
activities. In contrast to Approach 1, however, Approach 2 will not 
require return to training exercises through which counselors and 
participants explicitly weigh the benefits of different training 
selections against the costs, although this service will still be 
available if desired. The researchers will provide tools to support 
counseling activities under Approach 2.
    Counselors will recommend appropriate, modest-cost programs to 
ensure that participants reserve ITA funds for anticipated training-
related needs (such as transportation to the training site) and to 
allow the locality to reserve WIA funds in order to serve more training 
participants. However, participants will continue to have final control 
over their selections. Once participants have selected their training, 
local staff must approve the selected training as long as (1) the 
participant has satisfied the approach's counseling requirements and 
(2) the selected program is covered in the State's list of eligible 
providers and appears feasible, given the amount of the ITA and other 
available resources.
    Under Approach 2, the ITA has the same ``fixed'' value for all 
participants. Because participants may choose any feasible, State-
approved program, counselors cannot customize the ITA amount to each 
individual as in Approach 1. The fixed ITA amount will be significantly 
lower than the cap under Approach 1. Participants will be made aware of 
this amount before choosing a training provider. Since counselors will 
recommend appropriate and relatively low-cost training, some 
participants will not spend the full amount of their ITA, and ITA 
expenditures will therefore differ for Approach 2 participants.
    Last, participants will be given the flexibility to use ITA funds 
to pay for direct training costs (that is, tuition and fees) and for 
training-related expenses (for example, books, equipment, or 
certification exams), subject to counselor approval.
    3. Approach 3: Maximum Participant Choice. Approach 3 is the most 
flexible of the ITA approaches to be tested in the experiment. It is 
intended to represent a type of voucher program where participants are 
free to spend resources on any State-approved training program and on 
related expenses approved by their local counselors. Approach 3 
participants will be informed of the fixed ITA amount available to them 
before selecting a training program; will be allowed to use their ITA 
to pay for approved training and for training-related expenses; and 
will have final authority over their training choices.
    Approach 3 participants may pursue the training of their choice 
without any further interaction with local staff once they have 
participated in an orientation. Participants under this approach have 
maximum choice because counselors can reject training choices only if 
the provider is not included in the State's list of eligible training 
providers. Unlike Approaches 1 and 2, participation in counseling 
services will not be mandatory for Approach 3 participants, and failure 
to participate will not restrict their access to ITA funds. Approach 3 
participants may elect to receive counseling or other assistance from 
local staff to help them select the training of their choice.
Task 2: Implementation of the ITA Experiment, Including the Delivery of 
the ITA Approaches, and Enrollment and Random Assignment of 
Participants
    Before the ITA Experiment is implemented, staff from Mathematica 
will visit the grantees to evaluate how the three ITA approaches will 
be adapted to the local conditions. Following these visits, Mathematica 
will develop operational manuals to guide the implementation of the 
experiment in each site. These manuals, to be developed in 
collaboration with grantee staff, will describe the various ITA 
approaches and procedures in enough detail to ensure that local 
operations will be consistent with the design of the experiment. Each 
site will receive an operational manual customized to its local area 
operation.
    The experiment will be pilot-tested by one grantee site. Prior to 
implementing the experiment in the remaining grantee sites, a 
debriefing will be conducted on the pilot experience. To prepare 
grantee staff for implementation, the researchers will develop training 
materials and train local staff approximately one month before 
enrollment begins. Once operations have begun, the researchers will 
provide support and technical assistance to local staff throughout the 
experiment. Information from this pilot test will be used to further 
refine ITA procedures.
    The project enrollment period will last between 12 to 18 months. 
All grantees must commit to conducting enrollment of participants for 
up to 18 months. During this time, the researchers will randomly assign 
all participants to one of the three ITA approaches after the point at 
which it is determined that training is part of the participant's 
individual employment plan. Thus, the ITA experiment will not affect 
any of the core or intensive services provided to participants before 
determining training eligibility. It is important to remember that all 
three ITA approaches will be implemented by all of the selected 
grantees. Before random assignment, local staff will inform 
participants about the

[[Page 55293]]

experiment and have them sign an agreement consenting to participate in 
the study and authorizing the use of their administrative records for 
research purposes. In describing the experiment, local staff will 
explain to participants that they will be randomly assigned to one of 
three ITA approaches. All eligible participants will receive an ITA 
offer; that is, there will be no ``control group'' where participants 
are denied ITAs. Participants will also be asked to complete a Baseline 
Information Form (BIF) at that time.
    Once the participant has completed a participation agreement and a 
BIF, the site will enter the information from the BIF into the Service 
Tracking System (STS), a computer system created by DOL especially for 
the experiment. Once the BIF is entered, the STS will conduct random 
assignment, and the site will be notified by e-mail about the ITA 
approach to which a participant has been assigned.
Task 3: Data Collection of Information Necessary for the Evaluation of 
the ITA Experiment.
    As mentioned in the introduction, the researchers will use several 
data sources in the evaluation of the experiment. In addition, the 
local areas (and respective States) participating in the experiment 
will play a fairly large role in data collection. During enrollment, 
local staff will oversee the completion of the participation agreement 
and the BIF. As participants flow through the program, local staff will 
enter data into the STS to track enrollment into the experiment and the 
participation of ITA participants in training-related services and 
training. The STS will generate reports that will help counselors 
monitor participants' activities, training expenditures, and ITA 
accounts. Please note that local staff will not be required to enter 
data on core and intensive services into the STS. Each grantee site 
will receive computer hardware and software for the STS. Technical 
assistance for installing and operating the STS, will also be provided 
and funded by DOL under a separate contract.
    In three rounds of site visits to support the analysis of 
implementation and operation of the ITA approaches. Following the 
completion of experimental operations, State staff will be expected to 
help the researchers compile wage records and other administrative data 
on all participants in the experiment.
    Local areas need to provide a signed letter from their State 
assuring that State wage records and other administrative data required 
for the evaluation of the experiment will be made available.

                 Table 1.--Summary of the ITA Approaches
------------------------------------------------------------------------
   Approach 1  Structured      Approach 2  Guided    Approach 3  Maximum
     participant choice        participant choice    participant choice
------------------------------------------------------------------------
                           Approach Philosophy
------------------------------------------------------------------------
Maximizes return on local     Balances participant  Maximizes
 area training investments.    choice and            participant choice
                               counselor guidance.   and flexibility
                                                     over training
                                                     decisions.
------------------------------------------------------------------------
                              TA Structure
------------------------------------------------------------------------
ITA amounts are               Participants receive  Same as Approach 2.
 ``customized'' to the         ITA amount that is
 individual subject to an      much lower than the
 upper limit or ``cap.''.      Approach 1 cap.
Only counselors are aware of  Both participants     Same as Approach 2.
 the cap on ITA expenditures.  and counselors are
                               aware of the fixed
                               ITA amount before
                               choosing a training
                               provider.
ITAs cover only direct        ITAs cover direct     Same as Approach 2.
 training costs; other         training costs and
 training-related assistance   other training-
 provided outside the ITA      related expenses;
 based on need.                no other financial
                               assistance is
                               provided..
------------------------------------------------------------------------
                     Required Counseling Activities
------------------------------------------------------------------------
After ITA orientation,        After ITA             After ITA
 participant must              orientation,          orientation, the
 participate in weekly         particip[ant must     participant is not
 counseling sessions           participate in        required to enroll
 covering:                     weekly counseling     in any additional
                               session covering:     activities, but
                                                     activities are
                                                     available if
                                                     requested.
    (a) High-return training
     options
    (b) Aptitude for high-
     return occupations
    (c) Training options in   (c) Training options
     participant's selected    in participant's
     occupation.               selected occupation.
    (d) Returns-to-training
     in participant's
     selected occupation
    (e) Feasibility of        (e) Feasibility of
     participant's optimal     participant's
     training selection(s).    proposed training
                               selection(s).
------------------------------------------------------------------------
                            Counselor's Role
------------------------------------------------------------------------
Directs participant to        Guides participant    Available as a
 training selections on the    to appropriate        resource to
 State Eligible Training       training strategies.  participate as s/he
 Provider list that maximize                         formulates a
 return on investment.                               program selection.
Approves only a recommended   Approves               Approves
 program after participant     participant's         participant's
 completes the required        choice if:.           choice if:
 counseling activities.       (a) Participant has   (b) The selection is
                               completed the         covered in State
                               required counseling   list of eligible
                               activities.           training providers.
                              (b) The selection is
                               covered in State
                               list of eligible
                               training providers.
                              (c) The selection
                               appears feasible
                               with ITA and other
                               available resources.
------------------------------------------------------------------------


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Part IV. Submission of Application

A. Selection Format Requirements for Grant Application

    General Requirements: Applicants must submit four (4) copies of 
their proposal, with original signatures. The application narrative 
must be double-spaced, and on single-sided, numbered pages with the 
exception of format requirements for the Executive Summary. The 
Executive Summary must be limited to no more than two single-spaced, 
single-sided pages. A font size of at least twelve (12) pitch is 
required throughout.
    There are three required sections of the application. Requirements 
for each section are provided in this application package. Applications 
that fail to meet the requirements will not be considered.
    Section I--Executive Summary--Project Synopsis;
    Section II--Project Financial Plan;
    Section III--Project Narrative--Technical Proposal (including 
Appendices, Not To Exceed 35 Pages).
    Section I. Executive Summary--Project Synopsis (format requirements 
limited to no more than two single-spaced, single-sided pages)--Each 
application shall provide a project synopsis which identifies the 
following:
    a. The applicant;
    b. The type of organization the applicant represents;
    c. The identification of consortium partners and the type of 
organization they represent;
    d. The project service area;
    e. Whether the service area is an entire local workforce investment 
area, more than one local area, and/or all local areas in a State;
    f. The specific areas of focus in the announcement which are 
addressed by the project;
    g. The amount of funds requested;
    h. The planned period of performance;
    i. The comprehensive strategy proposed for providing seamless 
service delivery;
    j. The level of commitment the applicant and consortium members 
have to serving participants,
    Section II. Project Financial Plan--Section II of the application 
must include the following two required elements: (1) Standard Form 
(SF) 424, Application for Federal Assistance, and (2) Budget 
Information Form and budget narrative. All copies of the SF 424 MUST 
have original signatures of the legal entity applying for grant 
funding. Applicants shall indicate on the SF 424, the organization's 
IRS Status, if applicable. According to 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. The Federal Domestic Assistance Catalog number 
is 17.246. Section II, will not count against the application page 
limits. Applicants should follow the instructions included with the 
attachments.
    The financial plan must describe all costs associated with 
implementing the project that are to be covered with the grant funds. 
All cost 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,'' 
(also known as the :Common Rule'') codified at 29 CFR Part 97 (97.22), 
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 (95.27).
    The financial plan must contain the following parts:
    a. Completed ``SF 424--Application for Federal Assistance'' (see 
Appendix A for required form)
    b. Completed ``Budget Information Form'' by line item for all costs 
required to implemented the project design effectively. (See Appendix B 
for these required forms.)
    c. Budget narrative/justification which provides sufficient 
information to support the reasonableness of the cost included in the 
budget in relation to the service strategy and planned outcomes. Budget 
categories are administration and program activities, and should be 
planned in accordance with recent changes in the Department of Labor 
financial reporting requirements (see attached Budget Information 
Form).
    Section III. Project Narrative--Technical Proposal--Section III of 
the application, the project narrative (technical proposal) shall 
demonstrate the offeror's capabilities in accordance with the Statement 
of Work in Part III of this solicitation. It is advised that the 
technical proposal be formatted according to the evaluation criteria 
for this SGA (which are described in Part V). Each application shall 
also include a Time line outlining project activities. The grant 
application shall be limited to 20 double-spaced, single-side, 8.5-inch 
 x  11-inch pages with 1-inch margins. Attachments shall not exceed 15 
pages. Text type shall be 12 point or larger. Applications that do not 
meet these requirements will not be considered.

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 (Thursday, 
November 30, 2000) 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 calender day before the closing date specified 
for receipt of applications (e.g., an offer submitted in response to a 
solicitation requiring receipt of application by the 10th of August 
must have been mailed by the 5th); or
    (2) Was sent by U.S. Postal Service Express Mail Next Day Service--
Post Office to Addressee, not later than 5:00 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.
    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''and 
the postmarks on both the envelope and wrapper and the original receipt 
from the U.S. Postal Service.

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.

[[Page 55295]]

Part V. Rating Criteria and Selection Process

A. Review Process

    A careful evaluation of applications will be made by a technical 
review panel who will evaluate the applications against the criteria 
below. The panel results are advisory in nature and not binding on the 
Grant Officer. The Government may elect to award the grant with or 
without discussions with the offeror. In situations without 
discussions, an award will be based on the offeror's signature on the 
(SF) 424, which constitutes a binding offer. Awards made will be those 
that are in the best interest of the Government. It is important that 
applicants demonstrate that they are positioned to implement the ITA 
approaches described in this solicitation and to share learning that 
can contribute to the development of successful workforce development 
systems elsewhere.

B. Evaluation Criteria

1. Applicant Qualifications (30 Points)
    a. Applicant must be either (1) a local Workforce Investment Board 
(Local Board) applying with evidence of strong support from the State 
in which it is located, or (2) a consortium of two contiguous Local 
Boards applying with strong support from their State(s). Each Local 
Board applying for this SGA, either singularly or as a consortium, must 
include, as part of the evidence of support, a statement (i.e., signed 
letter from their State) that the State will make available wage 
records and other administrative data required for the evaluation of 
the experiment. Applicants must clearly demonstrate that they meet one 
of the following eligibility criteria:
    i. If applicant is one Local Board, the Local Board must provide 
evidence of an expected minimum flow of 550 training recipients for one 
program year. Applicant must describe the estimated flow of training 
recipients it expects to offer training to in one program year. This 
number should be supported by historical information (e.g., the number 
of trainees who were offered training in past program years), or other 
evidence to support the estimated number of participant flow for 
training; OR
    ii. If applicant is a consortium of two Local Boards, the 
consortium must expect a minimum combined flow of 550 participants for 
training. The Local Boards in a consortium must be contiguous, i.e., 
the Local Boards must be from the same adjoining region. This number 
should be supported by historical information (e.g., the number of 
trainees who were offered training in past program years), or other 
evidence to support the estimated number of participant flow for 
training. As stated earlier in this announcement, applicants applying 
as a consortium receive a single amount of $750,000, which will be 
distributed proportionately to the number of training recipients each 
Local Board expects to contribute to the total number of training 
recipients. For example, if a consortium consists of two Local Boards, 
and the first Local Board anticipates a flow of 250 training 
recipients, while the second Local Board anticipates a flow of 400, the 
consortium will have a combined total of 650 training recipients. Since 
the first Local Board is providing for 250 of the 650 total training 
recipients (38% of the total number of training recipient), it will 
therefore receive approximately $285,000 of the $750,000 grant (38% of 
the total grant award). Since the second Local Board is providing for 
400 of the total 650 training recipients (62% of the total number of 
training recipients), it will therefore receive approximately $465,000 
of the $750,000 grant (62% of the total grant award). The budget 
information form submitted in the application for the SGA should 
reflect this allocation of the grant award.
    The estimated flow of training recipients determines the 
eligibility of a single Local Board or consortium of Local Boards to 
apply for this grant. One of the key objectives of the ITA Experiment 
is to detect the impacts of substantially different ITA approaches to 
determine which approach works best, and for whom. In order to obtain 
accurate and reliable estimates of outcomes for the different ITA 
approaches, the research contractor has determined that a minimum 
sample size requirement of at least 550 training recipients in one 
program year is necessary from each applicant. Therefore, DOL will not 
consider proposals that fail to show evidence of meeting this criteria.
    b. Describe the Local Board(s), including (but not limited to) a 
brief history, the number of One-Stop Centers within the local area, 
the number of staff that counsel training recipients for all One-Stops, 
anticipated WIA funding levels, and size and demographics of local 
workforce investment area(s) served.
2. Approach (35 Points)
    a. Provide a complete flowchart and description of the array of 
services currently used, as well as the services that are anticipated 
to be available, to locally support and serve training recipients.
    b. Provide a complete flowchart and description of the procedures 
and services used to determine how and when a participant is determined 
eligible for training, including a description of how the services are 
different between participants receiving intensive services and 
participants receiving training services.
    c. Discuss any potential roadblocks or considerations in 
implementing any of the ITA approaches or operational aspects of the 
ITA Experiment. Also, describe possible solutions to handling these 
issues.
    d. Describe the Eligible Training Provider (ETP) list and Consumer 
Reporting System (CRS) in your state. On each of the systems, include 
information on the format, types of information posted, how it is 
accessed and used by counselors and participants, how they are 
maintained, and how long they have been in use by the applicant. Also, 
provide the estimated number of providers on the ETP list. Copies of 
parts of the ETP list and the CRS can be used as examples of format.
    e. Present a detailed time line describing how the applicant could 
perform the tasks for implementing the ITA Experiment, given the 
milestones described in the Statement of Work.
    f. Provide a brief description of the computer management 
information system used locally at the site, if any, and include the 
types of data that is collected and how it is maintained.
3. Interest and Commitment (25 Points)
    a. Discuss the applicant's commitment to providing site staff 
availability for staff training and other related activities planned by 
DOL and the researchers to ensure proper implementation of the ITA 
approaches, random assignment, and data collection. Applicant must 
provide commitment of one full-time project manager for this project, 
for a minimum of 18 months, along with the project manager's resume. 
Applicant must also provide a staffing chart for the ITA Experiment, 
and provide names, positions, and functions of key staff committed to 
the experiment, e.g., the project manager, One-Stop counselors, staff 
for managing/inputting data for the STS, etc.
    b. Describe the applicant's interest in and commitment to 
implementing random assignment for the ITA Experiment.
    c. Describe the applicant's level of interest in participating as 
the Pilot Site to operate the ITA Experiment 8-12 weeks before the 
other grantees begin the experiment. As noted in the

[[Page 55296]]

Statement of Work, it is anticipated that the Pilot Site will begin 
operations around April 15, 2001, and the other grantees will begin 
operations on July 1, 2001.
    d. Explain the applicant's interest in treating the ITA Experiment 
as a priority in comparison with other workforce development system 
innovations.
4. Previous Experience (10 Points)
    a. Describe the applicant's previous experience, if any, with 
designing and/or implementing ITAs, or any other voucher-type programs.
    b. Discuss the applicant's history of peer-to-peer assistance with 
learning from program innovations, especially on a regional or national 
basis.
    c. Provide an example of a creative approach the applicant 
organization(s) has designed to improve their local area's workforce 
development system.

Part VI. Monitoring, Reporting & Evaluation Requirements

A. Monitoring

    DOL shall be responsible for ensuring effective implementation of 
each competitive grant project under the ITA Experiment in accordance 
with the Workforce Investment Act legislation, regulations, the 
provisions of this announcement, and the negotiated grant agreement. 
Applicants should assume that at least one on-site project reviews will 
be conducted by Department staff, or their designees. This review will 
focus on the project's performance in meeting the goals of the ITA 
Experiment, implementing with the requirements of each ITA approach for 
participants who are served, expenditure of grant funds on allowable 
activities, and collaboration with other organizations as required. 
Grants may be subject to additional reviews at the discretion of DOL.

B. Reporting

    DOL will arrange for providing technical assistance to selected 
grantees in establishing appropriate reporting and data collection 
methods and processes based upon the STS created by DOL for the 
experiment. An effort will be made to accommodate and provide 
assistance to selected grantees to be able to complete all reporting 
electronically. In addition to the STS, selected grantees will be 
required to provide the following reports:
    a. Monthly progress reports; and
    b. Standard Form 269, Financial Status Report Form, on a quarterly 
basis.
    Evaluation reports for the ITA Experiment will be prepared by an 
independent research evaluation firm, Mathematica Policy Research. The 
evaluation reports, including interim and final reports, are fully 
funded by DOL through a separate contract, and will not require any 
additional funding through this SGA.

C. Evaluation

    DOL has contracted with an independent research evaluation firm, 
Mathematica Policy Research, to conduct an evaluation of the process, 
outcomes, impacts, and return on investment of the ITA Experiment. RFP 
#DCS-99-28 describes the evaluation criteria and is available for 
review at http://www.wdsc.org/sga/rfp/rfp99-28.htm. Grantees must agree 
to make their records available to research contractor personnel, as 
necessary. The research contractor will be required to maintain the 
confidentiality of all individual records they receive for the purpose 
of evaluating the ITA Experiment.

D. Conclusion

    The WIA legislation provides States and locals with considerable 
flexibility in using ITAs to manage a participant's choice of training 
providers. State and local administrators are therefore faced with 
developing their own ITA approaches to best serve their participants. 
The ITA Experiment will test three ITA approaches that could be adopted 
by local Workforce Investment Areas. By rigorously testing these three 
approaches, the ITA Experiment can help to establish which approaches 
work best for participants, for counselors, for Workforce Investment 
Boards, and for the workforce development system as a whole. 
Administrators will be able to use this information to determine which 
of the ITA approaches is best suited for their State or local 
community.

    Signed in Washington D.C., this 7th day of September 2000.
Laura A. Cesario,
Grant Officer, Division of Federal Assistance.

Appendices

Appendix A: (SF) 424--Application for Federal Assistance
Appendix B: Budget Information Form
Appendix C: Evidence of State Support
Appendix D: Application Cover Sheet

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[FR Doc. 00-23430 Filed 9-12-00; 8:45 am]
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