[Federal Register Volume 66, Number 105 (Thursday, May 31, 2001)]
[Notices]
[Pages 29602-29605]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13666]


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DEPARTMENT OF LABOR

Veterans' Employment and Training Service (VETS)


Agency Information Activities; Proposed Measures; Comments 
Request; Performance Measures

AGENCY: Veterans' Employment and Training Service, Labor.

ACTION: Notice and request for comments.

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SUMMARY: By law, the Assistant Secretary for Veterans' Employment and 
Training (ASVET) is required to establish performance standards for the 
provision of services to veterans by State Employment Security Agencies 
(SESA's). The ASVET in turn, is required to report on these results in 
the Veterans' Employment and Training Service's (VETS) Annual Report to 
Congress. This notice requests comments and opinions on the 
applicability of a proposed means to measure the performance outcomes 
of the Public Labor Exchange, which provides services to veterans 
within local workforce investment areas. In response to General 
Accounting Office recommendations, VETS is moving from process 
performance measures to outcome measures, and to evaluation of results 
based on absolute terms rather than the current relative terms. The new 
measures will provide useful information on the effectiveness of 
services provided to veterans. These proposed performance measures will 
also be key components of VETS' five-year Strategic Plan and Annual 
Performance Plans for the management of services provided to veterans 
and disabled veterans through the Public Labor Exchange, which includes 
services provided by Local Veterans' Employment Representative (LVER) 
and Disabled Veterans' Outreach Program (DVOP) staff.
    In addition to Public Labor Exchange employees assigned to the 
Local Employment Service Offices (LESO) or One-Stop Centers established 
in the States, DVOP and LVER positions are provided to the States to 
enhance, not supplant, services provided to veterans by Wagner-Peyser 
staff.

DATES: To be assured of consideration, comments on these proposed 
performance measures must be received on or before July 30, 2001.

ADDRESSES: Comments should be sent to Robert Wilson, Chief, Division of 
Employment and Training Programs, Veterans' Employment and Training 
Service, U.S. Department of Labor, 200 Constitution Avenue NW, Room S-
1316, Washington, DC 20210, Facsimile: 202-693-4755, E-mail: [email protected]. Receipt of submissions, whether by U.S. mail, e-mail or 
FAX transmittal, will not be acknowledged; however, the sender may 
request confirmation that a submission has been received by telephoning 
VETS at (202) 693-4719 (VOICE) or (800) 670-7008 (TTY/TDD).

FOR FURTHER INFORMATION: Contact Robert Wilson, 202-693-4719, or E-
mail: [email protected]. (Please note the above telephone numbers 
are not toll free.)

SUPPLEMENTARY INFORMATION:

I. Authority

    Components of the VETS' performance measures are proposed under the 
authority of Title 38 United States Code (U.S.C.) section 4107(b), 
which requires that performance standards be established to assure that 
SESA's are providing maximum employment and training opportunities to 
eligible veterans and are in

[[Page 29603]]

compliance with Chapters 41 and 42 of Title 38, U.S.C. The proposed 
performance measures are separate from the reporting requirements of 
Section 4107 (c) of Title 38, U.S.C., and they do not replace these 
reporting requirements. Section 4212 of Title 38, U.S.C. requires 
entities awarded Federal contracts or subcontracts of $25,000 or more 
to take affirmative action to employ and advance in employment 
qualified Special Disabled Veterans, Vietnam-era Veterans, Recently 
Separated Veterans (Pub. L. 106-419 added Recently Separated Veterans 
to the class of veterans receiving emphasis under Federal Contracts), 
and Campaign Veterans (any other veterans who served on active duty 
during a war or in a campaign or expedition for which a campaign badge 
or expeditionary medal has been authorized). Federal contractors and 
subcontractors are required by law and regulation to list job openings 
with their local SESA office. The SESA's, through the Public Labor 
Exchange system, are required to provide priority referrals of 
qualified targeted veterans to these Federal contractor openings.

II. VETS Performance Measures

    The proposed set of four (4) measures are consistent with the VETS 
Strategic Plan and Annual Plan, the Workforce Investment Act (WIA) of 
1998, Title 38 U.S.C. and the requirements of the Government 
Performance and Results Act (GPRA) of 1993. Two (2) of the proposed 
measures are similar to the performance measures for the Public Labor 
Exchange, as proposed in the August 14, 2000 Federal Register Notice, 
65 Fed. Reg. 49707 (August 14, 2000). VETS will make every effort to 
maintain consistency with the Labor Exchange Performance Measures to be 
implemented by the Employment and Training Administration (ETA).

A. Outcome and Process Performance Measures

    VETS is proposing the following annual Program Year (PY) based 
veterans' performance measures:

 Veteran Job Seeker Entered Employment Rate (VJSEER)
 Veteran Job Seeker Employment Retention Rate at Six Months 
(VJSERR)
 Veterans' Employment Rate Following Receipt of Staff Assisted 
Services (VERS)
 Federal Contractor Job Openings Listed with the Public Labor 
Exchange (FCJL)
1. Identification and Selection of Outcome and Process Performance 
Measures
    In 1996, the ASVET directed VETS staff to work with State partners 
to provide input regarding the development, testing, and evaluation of 
new performance systems to replace the current performance measures 
system, which had been developed more than a decade before with little 
or no change since then. There is concern that these performance 
standards are activity- and volume-driven, and that the current 
performance measures do not provide the most useful information on the 
impact of services on veterans served. As a result, from September 1998 
through December 1999, VETS conducted a study to review current 
performance measurements for the Public Labor Exchange and DVOP/LVER 
programs. Based on this research, VETS developed two types of proposed 
performance measures. The first category was comprised of outcome 
measures that can be applied at the National, State, and local areas, 
and that can be adjusted for labor market and other characteristics 
within the State and local area. These measures, which were intended to 
measure outcomes rather than processes were: Entered Employment Rate, 
Employment Rate, Employment Retention at Six Months, and Earnings Gain. 
The second category addressed processes and these measures were: 
Employment Rate Following Receipt of Staff Assisted Services by Wagner-
Peyser Staff, and Entered Employment Following Referral to a Federal 
Contractor.
    During July through September 2000, VETS conducted a test of the 
proposed performance measures in six (6) States to determine if data 
could be collected using Unemployment Insurance (UI) wage records. VETS 
obtained contractor support to provide technical assistance for the 
beta test by conducting site visits and facilitating the matching of 
registration data to wage record data, which was provided by the 
participating State agencies. Interviews were conducted with WIA, State 
UI, State Employment Service (ES), and State Information Systems staff 
to obtain information on data collection and any cost problems 
associated with using UI wage records, difficulties in calculating the 
measures or using the data sets, and opinions concerning the proposed 
measures. Contractor representatives did not participate in the process 
of making final recommendations.
    All six (6) of the test States calculated Public Labor Exchange 
performance based on the following three (3) outcome measures: Entered 
Employment Rate, Earnings Gain, and Employment Retention Rate at Six 
Months. For these three (3) outcome measures, the six (6) States 
matched registrant data for veterans to State UI wage record data for 
PY's 1997 and 1998. Four (4) States calculated a fourth outcome 
measure, Employment Rate, also utilizing the registrant data for 
veterans, and State UI wage record data for PY's 1997 and 1998. Five 
(5) of the States also calculated the process measure, Employment Rate 
Following Receipt of Staff Assisted Services by Wagner-Peyser Staff.
    Due to differences in the way States processed data on Earnings 
Gain, VETS determined that the measure would not provide valid outcome 
measurements, and thus, decided not to use Earnings Gain as a 
performance measure. Furthermore, beta test results indicated that 
sufficient data for the Entered Employment Rate Following Referral to a 
Federal Contractor were not available. Therefore, VETS decided that 
this process measure would be changed to the percent of increase in the 
number of Federal contractor job openings listed with the Public Labor 
Exchange. VETS has developed tools to improve the ability of the Public 
Labor Exchange system to identify job openings listed by Federal 
contractors. This will, in turn, increase the number of Federal 
contractor job listings reported by the Public Labor Exchange, as well 
as provide greater employment opportunities for targeted veterans.
    After an in-depth analysis of the results of the beta test and 
comments from participating States, and in coordination with ETA, VETS 
is proposing to move forward with four (4) of the proposed outcome and 
process measures that have been shown to be most useful in measuring 
performance of the Public Labor Exchange system in the delivery of 
services to veterans.
2. Proposed VETS Performance Measures
    VETS requests comments on the applicability of the four (4) 
proposed performance measures for the services to veterans implemented 
through the Public Labor Exchange system. Each of the proposed measures 
will be calculated and reported quarterly, with an annual PY summary. 
Listed below are the operational definitions for the proposed 
performance measures.
    a. Veteran Job Seeker Entered Employment Rate (VJSEER). The 
proposed Veteran Job Seeker Entered Employment Rate is defined as: Of 
Wagner-Peyser Act funded labor exchange applicants who are veterans

[[Page 29604]]

and who in the first or second quarter following registration 
(Q+1 or Q+2), earned wages from a new or 
different employer than that from which the applicant earned wages in 
the quarter prior to registration (Q-1), divided by the 
number of applicants registered during the measurement period. Those 
applicants who earned wages in the first or second quarter following 
registration (Q+1 or Q2), solely with the same 
employer from which wages were earned in the quarter prior to 
registration (Q-1), are excluded from the measure.
    b. Veteran Job Seeker Employment Retention Rate at Six Months 
(VJSERR). The proposed Veteran Job Seeker Employment Retention Rate at 
Six Months is defined as: Of those Wagner-Peyser Act labor exchange 
applicants age 19 and older at the time of registration who are 
veterans, and who in the first or second quarter following registration 
(Q+1 or Q+2), earned wages from a new or 
different employer than that from which the applicant earned wages in 
the quarter prior to registration (Q-1); those who also 
continue to earn wages in the third or fourth quarter (Q+3 
or Q+4) respectively, following registration, divided by the 
number who earned wages in the first or second quarter after 
registration (Q+1) or (Q+2). The examples of 
situations that result in a positive outcome are: One (1), a veteran 
earning wages in quarter Q+1 from a new or different 
employer than in quarter Q-1, must at a minimum also earn 
wages in Q+3; Two (2), a veteran earning wages in 
Q+2 from a new or different employer than in Q-1, 
must at a minimum also earn wages in quarter Q+4.
    c. Veterans' Employment Rate Following Receipt of Staff Assisted 
Services (VERS). The proposed Veterans' Employment Rate Following 
Receipt of Staff Assisted Services is defined as: Of the Wagner-Peyser 
Act applicants who are veterans, who registered in a quarter, 
Q0, and who received some form of staff assisted labor 
exchange services from Public Labor Exchange staff, the number who are 
employed by the end of the first or second quarter after registration, 
(Q+1 or Q+2).
    The following chart presents the three preceding measures of 
service.

VETS Proposed Measures of Service For All Veterans and Disabled Veterans
------------------------------------------------------------------------
                                                Measures of service \1\
                  Category                   ---------------------------
                                               VJSEER    VJSERR    VERS
------------------------------------------------------------------------
All Veterans................................        X         X       X
Disabled Veteran............................        X         X      X
------------------------------------------------------------------------
\1\ All measures use two quarters of employment (wage record) followup
  data.

    d. Federal Contractor Job Openings Listed with the Public Labor 
Exchange (FCJL). Federal Contractor Job Opening Listed with the Public 
Labor Exchange is defined as: The percentage increase in the number of 
Federal contractor job openings listed annually with the Public Labor 
Exchange, relative to the number listed in the previous PY.
    Measurement and reporting of these four (4) measures are consistent 
with the requirements under Title 38 U.S.C., GPRA, the WIA, and Public 
Labor Exchange performance measures. Section 4107(c)(1) of Title 38 
requires that the actual number of veterans who registered with the 
Public Labor Exchange and who entered employment, be reported by VETS 
to Congress annually, on a State by State basis. The two (2) outcome 
measures, Veteran Job Seeker Entered Employment Rate, and Veteran Job 
Seeker Employment Retention Rate at Six Months; and one (1) process 
measure, Veteran's Employment Rate Following Receipt of Staff Assisted 
Services, can be adjusted by State for the characteristics of the 
population, and for the condition of the labor market within the State. 
This adjustment provides for equitable performance measurement across 
States. There is no adjustment for the Federal Contractor Job Openings 
Listed with the Public Labor Exchange process measure.
    To the extent feasible and appropriate, VETS plans to parallel its 
proposed measures for Veteran Job Seeker Entered Employment Rate, and 
Veteran Job Seeker Employment Retention Rate at Six Months, with the 
equivalent measures proposed by the ES. Currently, the calculations for 
these measures are based on a methodology comparable to that set forth 
in the August 14, 2000 Federal Register Notice, in which ETA proposed 
the Labor Exchange Performance Measurement System. This notice and 
request for comments incorporates the most recent revisions to the 
proposed ETA Labor Exchange Performance Measurement System. If there 
are any further revisions, VETS intends to modify its proposed Veteran 
Job Seeker Entered Employment Rate, and Veteran Job Seeker Employment 
Retention Rate measures to maximize consistency with the Public Labor 
Exchange Performance Measurement System.

B. Procedures for Establishing Expected Levels of Performance

    VETS proposes to emulate the WIA, section 136, Performance 
Accountability System, and utilize their negotiation process to 
establish expected performance levels for Labor Exchange services. The 
use of this framework means that States, in conjunction with their 
VETS' Director of Veterans' Employment and Training (DVET), will 
develop baseline data for each of the measures based on historical 
data, analyze the baseline data, and propose performance levels for 
each measure based on that analysis. Each State will negotiate with its 
DVET to obtain mutually agreed upon expected levels of performance. In 
developing baseline data, States should use two years of data if 
possible, but not less than one year in determining trends for 
performance and factors which may influence performance. In 
establishing expected performance levels for each measure, factors 
beyond the control of the State, such as economic conditions, should be 
considered.

C. Baseline Performance

    Baselines for each of the measures will be developed by each State 
and will be a key factor used to determine the expected level of 
performance that is negotiated with VETS. Baselines are intended to 
give an indication of the past outcomes of a performance measure. For 
performance negotiations to be data-driven and reality-based, the 
development of baselines is a critical aspect of the negotiation 
process.

D. State Expected Levels of Performance

    When submitting their proposed performance levels, States should be 
prepared to provide support for their proposed levels by providing 
baseline performance data, the methodology for developing baseline 
data, and a description of data sources. In addition, States should 
also include information on appropriate factors used to project 
expected levels of performance. Examples of possible factors to 
consider in negotiating expected levels of performance are: Economic 
conditions such as the unemployment rate; the rate of job creation/
loss, new business start-ups; community factors such as availability of 
transportation and daycare; pursuit of new or enhanced employer 
partnerships; natural disasters; State legislation; and other

[[Page 29605]]

factors which might impact performance. This list is not intended to be 
prescriptive or exhaustive, but rather to suggest the kind of 
information that might be considered in the negotiation process.

E. Negotiation of Expected Levels of Performance

    The Regional Administrator for Veterans' Employment and Training 
(RAVET) will review the negotiated levels of performance as submitted 
through the DVET and will compare the expected performance levels with 
the National averages, baseline information from other States, and the 
negotiated levels of performance established for other States, taking 
into account factors including differences in economic conditions and 
other factors as discussed above. The RAVET will analyze the quality of 
the data presented by States, including the relevance of the data, the 
source of the data, the time period from which the data were drawn, and 
if the data are part of a trend or anomalous. Established GPRA Annual 
Performance Plan goals for relevant measures will also be an important 
part of the Regional review and negotiation of performance levels. When 
the RAVET's analysis is completed, if need be, there will be the 
opportunity, through the DVET, for negotiations with the State to 
obtain mutually agreed upon expected levels of performance. Provision 
will also be made for renegotiation of performance levels if 
circumstances arise that result in a significant change in the factors 
used to establish the original levels. It is understood that either a 
State or VETS may elect to renegotiate performance as new information 
becomes available. Factors which will be considered for making changes 
include those discussed above, in paragraph #D.

F. Rules for Application

    During the first year of implementation of the new performance 
measures, performance will be reviewed as described below; however, 
States will be held harmless from any consequences of failing to meet 
their performance goals during that first year. Actual performance for 
each program year will be compared to negotiated performance levels. 
Incentives may be put in place for States with exemplary performance 
results. For a State to be designated as ``exemplary,'' expected levels 
of performance for all measures must be achieved or exceeded. A 
possible incentive will be that ``exemplary'' States would 
proportionally split a fixed amount of the grant allocation or any 
unspent funds. If a State's actual performance varies from the expected 
performance level by minus two percent or more, VETS will have the 
option of renegotiating new performance levels with the State. VETS 
will offer technical assistance as well as giving consideration to 
external factors affecting performance levels. A negative variation of 
five percent or more would result in the requirement of a State 
Corrective Action Plan (CAP) to rectify the situation. Failure to 
submit or comply with a CAP may become the basis for sanctions.

    Signed at Washington, DC, this 25th day of May, 2001.
Stanley A. Seidel,
Director, Operations and Programs.
[FR Doc. 01-13666 Filed 5-30-01; 8:45 am]
BILLING CODE 4510-79-P