[Federal Register Volume 67, Number 110 (Friday, June 7, 2002)]
[Notices]
[Pages 39561-39570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14319]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of Community Services

[Program Announcement No. 2002-14]


Compassion Capital Fund Demonstration Program

AGENCY: The Office of Community Services (OCS), Administration for 
Children and Families (ACF), Department of Health and Human Services 
(HHS).

ACTION: Announcement of the request for competitive applications and 
the availability of federal funding to organizations to provide 
technical assistance to help faith-based and community-based 
organizations.

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SUMMARY: This announcement, together with other steps that HHS is 
taking, lays a foundation for expanding the role in social services of 
faith-based and other community-serving groups, building capacity and 
knowledge among these organizations to better meet the needs of the 
poor and low-income families and individuals, and encouraging the 
replication of effective programs. The program announced here will 
provide Compassion Capital funds to organizations (herein referred to 
as ``intermediary organizations'') that have demonstrated an ability to 
assist faith- and community-based organizations, particularly smaller 
organizations, in a variety of areas, including, but not limited to, 
their efforts to effectively operate and manage their programs, access 
funding from varied sources, develop and train staff, expand the types 
and reach of social services programs in their communities, or 
replicate promising models or programs. (Throughout this document 
``social services'' be taken to include promotion, treatment, and 
prevention services related to primary health care, substance abuse 
treatment, mental health treatment, HIV/AIDS and related aspects of 
public health services directed to low-income families and 
individuals.) In addition, recipients of awards under this announcement 
will issue awards or sub-awards for start-up and operational costs to 
qualified faith- and community-based organizations to expand or 
replicate promising or best practices in targeted areas.
    The Administration for Children and Families (ACF) is the agency 
designated to issue initial awards under the Fund. However, the work 
supported through such awards is expected to address a broad array of 
services and programs and to complement related activities in other 
parts of HHS and other federal departments. The Compassion Capital Fund 
will help further the President's goals and objectives regarding faith- 
and community-based organizations and will enhance work being supported 
by multiple federal agencies. ACF estimates that the funds available 
under this announcement will support 15-25 cooperative agreements \1\ 
with intermediary organizations. The Federal government plans to work 
in partnership with others who have similar goals and interests in 
strengthening organizations operating closest to those most in need. 
Therefore, ACF seeks applicants who can share in the cost of the 
activities described in this announcement. Applicants are expected to 
provide at least 50 percent of the amount of Federal funds requested 
(i.e., one-third of the proposed total budget).
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    \1\ A cooperative agreement allows substantial Federal 
involvement in the activities undertaken with Federal financial 
support.

DATES: The closing date for submission of applications is July 22, 
2002. Mailed applications received after the closing date will be 
classified as late. See Part IV of this announcement for more 
information on submitting applications.
    In order to determine the number of expert reviewers that will be 
necessary, if you plan to submit an application, you are requested, but 
not required, to mail, fax, or e-mail written notification of your 
intentions at least 30 calendar days prior to the submission deadline 
date. Send the notification, with the following information: the name, 
address, telephone and fax numbers, and e-mail address of the project 
director and the name of the applicant to: OCS Operations Center, 1815 
North Fort Myer Drive, Suite 300, Arlington, Virginia 22202 or fax to 
(703) 248-8765 or e-mail to [email protected]. Label all submissions as 
follows: Intent to Apply for Compassion Capital Fund Demonstration 
Program.

ADDRESSES: Mailed applications should be sent to OCS Operations Center, 
1815 North Fort Myer Drive, Suite 300, Arlington, Virginia 22202 and 
labeled as

[[Page 39562]]

follows: Application for Compassion Capital Fund Demonstration Program.
    Hand delivered, courier or overnight delivery applications are 
accepted during the normal working hours of 8 a.m. to 4:30 p.m., Monday 
through Friday (excluding Federal holidays), on or prior to the 
established closing date. All packages should be clearly labeled as 
follows: Application for Compassion Capital Fund Demonstration Program. 
The address for these applications is: OCS Operations Center, 1815 
North Fort Myer Drive, Suite 300, Arlington, Virginia 22202.
    The printed Federal Register notice is the only official program 
announcement. Any corrections to this announcement will be published in 
the Federal Register as well as published on the ACF World Wide Web 
Pages. The Web site is http://www.acf.dhhs.gov/programs/opre/frpa.htm.
    Although reasonable efforts are taken to assure that the files on 
the ACF World Wide Web Pages containing electronic copies of this 
Program Announcement are accurate and complete, they are provided for 
information only. The applicant bears sole responsibility to assure 
that the copy downloaded and/or printed from any other source is 
accurate and complete.

FOR FURTHER INFORMATION CONTACT: LCG OCS Operations Center, 1-800-281-
9519; e-mail: [email protected]. ACF intends to post answers to frequently 
asked questions on the ACF Web site at http://www.acf.dhhs.gov/programs/ocs. Required application forms are available at: http://www.acf.dhhs.gov/programs/ofs/forms.htm.

SUPPLEMENTARY INFORMATION: This program announcement consists of four 
parts: Part I: Background and Program Purpose--legislative authority, 
background, and program purpose and objectives; Part II: Project and 
Applicant Eligibility--eligible applicants, funding availability and 
instruments, cost sharing, and roles and responsibilities under the 
cooperative agreement; Part III: The Review Process--intergovernmental 
review, initial ACF screening, general instructions for the Uniform 
Project Description, competitive review and evaluation criteria, and 
review process; and Part IV: The Application Process--required forms, 
application limits, checklist for complete application, application 
submission, and Paperwork Reduction Act.

Part I. Background and Program Purpose

A. Legislative Authority

    Funding under this announcement is authorized by section 1110 of 
the Social Security Act governing Social Services Research and 
Demonstration activities (Catalog of Federal Domestic Assistance 
93.647) and the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2002, Pub. L. 107-
116, Title II (2002).

B. Background

    Support and assistance for individuals and families in need can 
come from many sources. While governments play a vital role in 
providing services, the nonprofit sector--secular and religiously 
affiliated providers, civic groups, foundations and other grant-givers-
-has long been a vital and valued partner of government. Faith-based 
and community-based organizations have a long history of providing an 
array of important services to people and communities in need of 
charitable services in the United States. These groups have unique 
strengths that government cannot duplicate. They often operate very 
close to the daily lives of individuals and families in need and, thus, 
can reach needy individuals and families that government cannot reach. 
They are part of their communities. They hold the trust of their 
community neighbors and leaders and have great understanding of the 
needs of the community and its systems. They are well positioned to 
understand the needs of individuals and families, particularly those 
with the greatest needs such as families in poverty, prisoners 
reentering the community and their families, children of prisoners, 
homeless families, and at-risk youth. Furthermore, the sense of mission 
from which they work often translates into a unique approach to service 
delivery, a dedication of service to others, and a cultural awareness 
of issues and relationships specific to their surrounding communities.
    In recognition of this history and ability, President Bush believes 
it is in the public's interest to broaden federal efforts to work with 
faith-based and community-based organizations and has made improving 
funding opportunities for such organizations a priority. On January 29, 
2001, President Bush issued Executive Order 13198 directing the heads 
of the Departments of Health and Human Services, Justice, Education, 
Labor, and Housing and Urban Development to establish within their 
respective departments a Center for Faith-Based and Community 
Initiatives.
    The goal of these Centers is to make their agencies as open and 
supportive as possible to successful faith-based and grassroots 
organizations. They are responsible for coordinating efforts to 
eliminate regulatory, contracting, and other programmatic obstacles to 
the full participation of faith-based and community organizations in 
the provision of social services. In addition, they work to create a 
hospitable environment for groups that have not traditionally 
collaborated with government, make sure that departmental 
communications and technical assistance efforts are open to faith-based 
and community organizations, and implement special programs designed to 
showcase and pioneer innovative efforts.
    A key part of the effort to enhance and expand the participation of 
faith-based and community-based groups in serving those in need is the 
Compassion Capital Fund program described in this announcement. Funds 
awarded under this program will be used to support the work of 
intermediary organizations to increase the capacity and capability of 
faith-based and community-based organizations, to assist them in 
competing for funding from varied sources (e.g., federal/state/local 
governments, private charitable organizations/foundations) and in 
partnering with other organizations in their localities, and to help 
them implement best practices in program management and in the services 
they provide to individuals and families. The entities awarded funds 
under this announcement will serve as partners to both the federal 
government and to the faith- and community-based organizations that 
they assist. The intermediaries will represent a diverse set of ideas 
and organizational and/or religious affiliations. They will work with a 
diverse group of community-level organizations with differing service 
goals, target populations, and religious and community affiliations and 
beliefs.
    The program described in this announcement is the centerpiece of 
this year's Compassion Capital Fund initiative. ACF expects to award a 
total of up to $24.5 million under this announcement. ACF estimates 
that 15-25 intermediary organizations can be supported by this level of 
funding. The level of funding includes funds that will be used by 
intermediary organizations to provide technical assistance and make 
sub-awards to help the faith-based and community-based organizations 
that they assist to replicate or expand

[[Page 39563]]

best practices and model programs in targeted areas. In addition to 
activities supported through this announcement, the Compassion Capital 
Fund will also be used to provide funding for other activities that 
will support the intermediary organizations in their work, provide 
capacity-building support at the national level, identify and 
disseminate information about best practices, and build knowledge 
related to a broad array of questions regarding faith- and community-
based organizations and the intermediary organizations that work with 
them.\2\
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    \2\ The other activities include the establishment of a 
Compassion Capital National Resource Center and research to build 
knowledge in this important area. Additional information about these 
other activities will be available as soon as the information is 
public.
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    These activities lay the groundwork for what will be an on-going 
effort to expand the role in social services of faith-based and other 
community-serving groups. Future Compassion Capital Funds will be used 
to build on and expand this effort. Applicants that receive awards 
pursuant to this announcement may be eligible for continuation grants 
and additional intermediary organizations may be funded. In addition, 
we will explore other means to assist faith-based and community-based 
groups. Further, we will work closely with others sponsoring and 
conducting related activities within the Federal government and outside 
of it to build on their experience and ours to formulate future plans 
for the types of activities and work that should be supported.

C. Program Purpose and Objectives

    The purposes of this Compassion Capital Fund program are to help 
build capacity and knowledge among faith- and community-based 
organizations and encourage the replication of effective approaches and 
programs to better meet the needs of poor and low-income individuals 
and families. This will be accomplished through the funding of 
intermediary organizations that have demonstrated expertise in working 
with and providing technical assistance to a diverse set of faith- and 
community-based organizations in a variety of areas, including, but not 
limited to, their efforts to effectively operate and manage their 
programs, access governmental and private funding sources, develop and 
train staff, expand the types and reach of services in their 
communities, or replicate promising models or programs. The types of 
faith- and community-based organizations to be served by the 
intermediary organizations are expected to be diverse in size, range of 
experiences, types of services provided (e.g., family crisis services, 
welfare-to-work services, services for at-risk youth, preventive health 
services, and other services directed to address problems stemming from 
poverty), types of individuals or families served, types of 
organizations, religious or organizational affiliation, and in other 
dimensions. It is our objective that Compassion Capital Funds be 
directed at those organizations that primarily focus their services on 
those most in need. The program purposes will be further accomplished 
through the issuance of sub-awards by the funded intermediary 
organizations to a diverse set of faith- and community-based 
organizations for start-up, operations, or expansions of promising 
operating systems or social service programs (``best practices''). ACF 
expects that intermediary organizations will develop a coherent plan 
that utilizes both technical assistance and sub-awards and that 
provides for the establishment of ongoing supportive relationships with 
those faith- and community-based organizations served, rather than on 
single or short-term interactions.
    The technical assistance activities are to be conducted at no cost 
to interested faith- and community-based organizations and may include, 
but are not limited to, the following:

--Needs assessments for faith- and community-based organizations to 
identify internal areas needing improvement or areas in which to 
develop or expand services in the community to address service gaps;
--Guidance and direction with strategic planning and project 
development;
--Provision of legal assistance in various areas such as the process of 
incorporation, obtaining tax-exempt status, tax issues, or establishing 
oversight/governance boards;
--Development and implementation of appropriate and adequate internal 
operating controls and procedures related to all aspects of business 
management;
--Training and assistance in grant writing and business proposal 
development and how to access government (e.g., federal/state/local) 
and private funding sources (e.g., private charitable organizations/
foundations);
--Training and information on applicable federal and other funding 
requirements (e.g., administrative requirements, cost principles, 
regulations, circulars);
--Training and information on appropriate approaches for financial 
management and accounting;
--Training and information on the development and use of outcome 
measurements and methods of evaluation;
--Expert assistance in understanding findings related to ``best 
practices'' and how to interpret the findings and address potential 
barriers and incorporate ``best practices'' into their programs to 
improve effectiveness;
--Training and information on developing or improving public relations 
or internal and external communication;
--Recommendations and information about expanding outreach and client 
screening, intake or tracking methods;
--Expert assistance or facilitation in linking and networking with 
other agencies to improve service coverage, avoid duplication, improve 
coordination within the service area, or create opportunities for 
sharing resources (e.g., audit, bookkeeping or information technology 
services); or
--Information on and referrals to other information sources including 
regional and national organizations that provide expert advice or offer 
professional support services in areas not otherwise covered.

    This is an illustrative, not exhaustive, listing of the sort of 
activities that may be provided by the intermediary organizations 
awarded funds under this announcement. The technical assistance portion 
of the award may not be used for direct services to needy individuals 
or families and shall not supplant existing funding available for 
similar activities. Compassion Capital Funds shall not be used to 
support religious practices such as religious instruction, worship or 
prayer.
    As indicated above, in addition to supporting technical assistance, 
funds provided through this announcement will also be used to make sub-
awards to a diverse set of faith- and community-based organizations for 
start-up or operational costs related to the replication or expansion 
of ``best'' or ``promising'' practices. Priority for sub-awards should 
be given to programs that address homelessness, hunger, at-risk 
children, transition from welfare to work, and those in need of 
intensive rehabilitation such as addicts or prisoners. Applicants may 
also propose to use non-federal funds to make awards for these purposes 
(e.g., one of the uses of funds that meet the cost sharing provision 
described below). These awards or sub-awards may not supplant funding 
that the faith- or community-based grantees rely on for current 
operations of program services. Further, as appropriate, the technical 
assistance

[[Page 39564]]

provider may assist faith- and community-based organizations in seeking 
additional funds from other sources for the activities supported by the 
award or sub-award. The approach the intermediary will use for seeking 
applications or otherwise responding to requests for funding, making 
sub-awards, and accounting for their use may vary across intermediary 
organizations. However, each approved intermediary organization must 
develop and submit a plan for this process to ACF for review and 
approval within 60 days of receipt of award under this announcement and 
prior to the issuance of any sub-awards using federal funds awarded 
under this announcement. Intermediary organizations must report on the 
use of funds for sub-awards as they do for other types of expenditures 
of Federal funds received as a result of an award under this 
announcement and as specified in the Cooperative Agreement. 
Intermediary organizations must also develop and submit a plan for 
working with sub-awardees to develop outcome measures and to evaluate 
the activities supported by the sub-awards made with Federal funds 
under this announcement.
    Further, approved applicants must be willing to work closely with 
ACF and any entities funded by ACF to coordinate, assist, or evaluate 
the activities of the intermediary organizations providing technical 
assistance. Proposed budgets should include the cost of travel related-
expenses for key personnel with responsibility for the Compassion 
Capital Fund award to attend two meetings with Federal officials and 
others in Washington, DC during the first 12-month budget period. The 
first meeting will be held shortly after awards are made under this 
announcement and will focus on orientation to Federal objectives for 
the project, information about related activities supported by HHS and 
other Federal agencies,\3\ Federal grants management requirements, and 
coordination between and among the approved intermediary organizations 
and other entities funded by ACF to be involved in the Compassion 
Capital Fund initiative.
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    \3\ Under the President's Faith-based and Community Initiative 
program, Federal agencies have begun to provide technical assistance 
and training services to faith- and community-based organizations 
and address barriers to their participation in federally sponsored 
programs. Successful applicants under this announcement must 
coordinate and not duplicate services.
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    The Federal government is interested in partnering with applicant 
organizations who share the same vision, have similar goals, and are 
willing to share in the cost of this important set of activities. 
Therefore, ACF is seeking applicants who can provide funding for the 
proposed project that equal at least 50 percent of the amount of 
Federal funds requested (i.e., one-third of the total budget).

Part II. Project and Applicant Eligibility

    The Administration for Children and Families (ACF), Department of 
Health and Human Services (HHS) invites eligible entities to submit 
competing applications for the Compassion Capital Fund Demonstration 
Program.

A. Eligible Applicants

    ACF invites applications from a wide variety of types of 
organizations or entities that can demonstrate knowledge and experience 
in the provision of the types of technical assistance described herein 
to a diverse group faith-based and community-based organizations 
representing different organizational or religious affiliations. 
Further, ACF encourages applications from applicants that propose to 
work with and have experience working with faith- and community-based 
organizations that historically have not been well served or supported 
by governmental funds and have the greatest needs.
    Nongovernmental organizations, non-profit agencies, including 
faith-based organizations, public agencies, State and local 
governments, colleges and universities, and for-profit entities may 
submit applications under this announcement. It should be noted, 
however, that no federal funds received as a result of this 
announcement can be paid as profit to grantees or sub-grantees, i.e., 
any amount in excess of allowable direct and indirect costs of the 
recipient (45 CFR 74.81).

B. Funding Availability and Instruments

    Project and Budget Periods--This announcement is soliciting 
applications for project periods up to 3 years (36 months). Awards, on 
a competitive basis, will be for a 12-month budget period, although 
project periods may be for 3 years. Applications for continuation 
grants beyond the first 12-month budget period but within the 36-month 
project period will be entertained in subsequent years on a 
noncompetitive basis, subject to the availability of funds, 
satisfactory progress of the grantee, and a determination that 
continued funding would be in the best interest of the Federal 
Government.
    Instrument and Funding: ACF will issue the Financial Assistance 
Awards under this announcement as cooperative agreements. ACF expects 
to award a total of up to $24.5 million under this announcement. ACF 
estimates that 15-25 intermediary organizations can be supported by 
this level of funding. The level of funding includes funds that will be 
used by intermediary organizations to provide technical assistance and 
make sub-awards to help the smaller faith-based and community-based 
organizations that they assist. Applicants shall specify in their 
budget documents estimates of the amount of funds to be used for each 
purpose (technical assistance and sub-awards). ACF expects to award 
funds both to applicants that propose to provide technical assistance 
and sub-awards in single geographic coverage areas and those that 
propose to provide technical assistance and sub-awards in multiple 
areas. ACF expects that the amount of the funding requested per 
applicant will reflect the coverage area proposed in the application as 
well as the range of activities proposed and justified in the 
application. It is anticipated that applicants that propose to provide 
technical assistance and make sub-awards over a larger coverage area 
(e.g., regional or multi-city/county) will require more support than 
applicants proposing to cover smaller areas (e.g. a single city/
county).

C. Cost Sharing

    Grantees should provide a minimum cost share of fifty (50) percent 
of the total Federal funds requested for each 12-month budget period. 
The non-Federal share may be met by cash or in-kind contributions, 
although applicants are encouraged to meet the cost share through cash 
contributions. As an example, an applicant requesting $1 million in 
Federal funds would include a cost share of at least $500,000 (i.e., 
the non-Federal funds equal 50% of the Federal funds requested) and an 
applicant requesting $500,000 in Federal funds would include a cost 
share of at least $250,000.

D. Roles and Responsibilities Under the Cooperative Agreement

Federal Officials Minimum Responsibilities
    1. Promote collaborative relationships and facilitate the exchange 
of information (e.g., identified technical assistance and training 
needs, emerging issues, research findings, available resources, model 
programs) among intermediary organizations funded under this 
announcement and between the funded intermediaries and other entities 
or organizations engaged by

[[Page 39565]]

ACF for purposes related to the Compassion Capital Fund.
    2. Provide consultation to each approved intermediary organization 
with regard to the development of work plans, special issues and 
concerns and approaches to address problems that arise, and 
identification of any special focus areas for technical assistance.
    3. Provide timely review, comment, and approval on sub-award plans 
and procedures submitted by approved intermediary organizations.
    4. Sponsor meetings of all technical assistance providers funded 
under the Compassion Capital Fund demonstration program to promote 
coordination, information sharing, and access to resources, training 
and learning opportunities.
    5. Work together to address issues or problems identified by the 
intermediary organization, ACF, or others with regard to the 
applicant's ability to carry out the full range of activities included 
in the approved application in the most efficient and effective manner.
Applicant Minimum Responsibilities
    1. Develop and implement work plans that will ensure that the 
services and activities included in the approved application address 
the needs of faith- and community-based organizations in an efficient, 
effective and timely manner.
    2. Submit for Federal approval plans and procedures for the 
issuance of sub-awards within 60 days of receipt of approval under this 
announcement and prior to the issuance of any such sub-awards. The plan 
shall indicate how priority will be given to programs that address 
homelessness, hunger, at-risk children, welfare-to-work transition, and 
individuals needing intensive rehabilitation such as addicts and 
prisoners. Submit regular reports, no less frequently than quarterly, 
on sub-awards made with Federal funds that include, at a minimum, name 
and description of the organization receiving the sub-award, summary of 
the purpose of the award (how the funds are to be used), the amount of 
award, and the proposed plan for outcomes measurement and program 
evaluation of the activities that will be supported with sub-award 
funds made with Federal funds awarded under this announcement.
    3. Work collaboratively with ACF officials, other Federal agency 
officials conducting similar activities, the other intermediary 
organizations approved under this announcement, and other entities or 
organizations engaged by ACF to assist in carrying out the purposes of 
the Compassion Capital Fund program.
    4. Ensure that key staff attends and participates in ACF sponsored 
workshops and meetings.
    5. Develop a reporting system and submit required quarterly 
progress and financial reports timely and completely. In addition to 
information about sub-awards as specified in item 2, above, the regular 
quarterly reports shall include, at a minimum, information about the 
technical assistance provided and unduplicated listings of the 
organizations receiving assistance during the period. Such listings 
shall include the organization name, type (e.g., faith-based, 
community-based), location, a brief description of the organization, 
and brief summary of the technical assistance provided.

Part III. The Review Process

A. Intergovernmental Review

    This program is covered under Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' and 45 CFR part 100, 
``Intergovernmental Review of Department of Health and Human Services 
Programs and Activities.'' Under the Order, states may design their own 
processes for reviewing and commenting on proposed applications for 
Federal assistance under covered programs.
    As of April 8, 2002, the jurisdictions listed below have elected 
not to participate in the Executive Order process. Applicants from 
these jurisdictions or for projects administered by federally 
recognized Indian Tribes need take no action in regard to Executive 
Order 12372. Although the jurisdictions listed below no longer 
participate in the process, grant applicants are still eligible to 
apply for a grant even if a state, territory, commonwealth, etc. does 
not have a Single Point of Contact (SPOC).

    Alabama; Alaska; Arizona; Colorado; Connecticut; Kansas; Hawaii; 
Idaho; Indiana; Louisiana; Massachusetts; Minnesota; Montana; 
Nebraska; New Jersey; New York; Ohio; Oklahoma; Oregon; Palau; 
Pennsylvania; South Dakota; Tennessee; Vermont; Virginia; Washington 
and Wyoming.

    All remaining jurisdictions participate in the Executive Order 
process and have established SPOCs. Applicants from participating 
jurisdictions should contact their SPOCs as soon as possible to alert 
them of the prospective applications and receive instructions. The 
applicant must submit all required materials, if any, to the SPOC and 
indicate the date of the submittal (or the date of contact if no 
submittal is required) on the Standard Form 424, item 16a. Under 45 CFR 
100.8(a)(2), a SPOC has 60 days from the application deadline to 
comment on proposed new or competing continuation awards. Applicants 
must submit any required material to the SPOCs as soon as possible so 
that the Federal program office can obtain and review SPOC comments as 
part of the award process. A listing of the SPOC for each participating 
state and territory with contact and address information is available 
at: http://www.whitehouse.gov/omb/grants/spoc.html.

B. Initial ACF Screening

    Each application submitted under this program announcement will 
undergo a pre-review to determine that (1) the application was received 
by the closing date and submitted in accordance with the instructions 
in this announcement and (2) the applicant is eligible for funding.

C. General Instructions for the Uniform Project Description

    The following ACF Uniform Project Description has been approved 
under OMB Control Number 0970-0139, which expires 12/31/2003. This 
format is to be used to submit an application under this announcement. 
An agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number.
    Consistent with the Uniform Program Description format, the 
specific evaluation criteria applicable to this program follows in 
section D.
    1. Objectives and Need for Assistance: Clearly identify the 
physical, economic, social, financial, institutional, and/or other 
problem(s) requiring a solution. The need for assistance must be 
demonstrated and the principal and subordinate objectives of the 
project must be clearly stated; supporting documentation, such as 
letters of support and testimonials from concerned interests other than 
the applicant, may be included. Any relevant data based on planning 
studies should be included or referred to in the endnotes/footnotes. 
Incorporate demographic data and participant/beneficiary information, 
as needed. In developing the project description, the applicant may 
volunteer or be requested to provide information on the total range of 
projects currently being conducted and supported (or to be initiated), 
some of which may be

[[Page 39566]]

outside the scope of the program announcement.
    2. Results or Benefits Expected: Identify the results and benefits 
to be derived. For example, when applying for an award to provide 
technical assistance to community and faith-based charitable 
organizations, describe specific goals of the proposed technical 
assistance strategy; e.g., expansion of program capacity; increase in 
types of services offered; increased access to funding from different 
sources and sectors; improvement in staff capabilities; or replication 
of successful program models (``best practices'').
    3. Approach: Outline a plan of action which describes the scope and 
detail of how the proposed work will be accomplished. Account for all 
functions or activities identified in the application. Cite factors 
which might accelerate or decelerate the work and state your reason for 
taking the proposed approach rather than others. Describe any unusual 
features of the project such as design or technological innovations, 
reductions in cost or time, or extraordinary social and community 
involvement. Describe how the faith- and community-based organizations 
with which they would work have been underserved by Federal and other 
resources in the past and the reasons why the applicant believes its 
services would benefit the types of faith- and community-based 
organizations intended to be served through the Compassion Capital 
Fund. Describe past experience working with faith-based and community 
organizations to address social needs.
    Provide quantitative monthly or quarterly projections of the 
accomplishments to be achieved for each function or activity in, for 
example, such terms as the average number of days of technical 
assistance to be provided, the number of faith and/or community-based 
organizations to be provided services, or number of sub-awards to be 
issued to faith- or community-based organizations. When accomplishments 
cannot be quantified by activity or function, list them in 
chronological order to show the schedule of accomplishments and their 
target dates.
    If any data is to be collected, maintained, and/or disseminated, 
clearance may be required from the U.S. Office of Management and Budget 
(OMB). This clearance pertains to any ``collection of information that 
is conducted or sponsored by HHS.'' List organizations, cooperating 
entities, consultants, or other key individuals whom will work on the 
project along with a short description of the nature of their effort or 
contribution.
    4. Geographic Location: Describe the precise location of the 
project and boundaries of the area to be served by the proposed 
project. Maps or other graphic aids may be attached.
    5. Staff and Position Data: Provide a biographical sketch for each 
key person appointed and a job description for each vacant key 
position. A biographical sketch will also be required for new key staff 
as appointed.
    6. Budget and budget justification: Provide line item detail and 
detailed calculations for each budget object class identified on the 
Budget Information form. Detailed calculations must include estimation 
methods, quantities, unit costs, and other similar quantative detail 
sufficient for the calculation to be duplicated. The detailed budget 
must also include a breakout by the funding sources identified in Block 
15 of the SF-424. Provide a narrative budget justification that 
describes how the categorical costs are derived. Discuss the necessity, 
reasonableness, and allocability of the proposed costs.
    Budget and Budget Justification Guidelines: The following 
guidelines are for preparing the budget and budget justification. Both 
Federal and non-Federal resources shall be detailed and justified in 
the budget and narrative justification. For purposes of preparing the 
budget and budget justification, ``Federal resources'' should refer 
only to the HHS grant for which you are applying. For these purposes, 
``Non-federal resources'' are all other resources. If other Federal 
resources will be used, they should be included under Non-Federal for 
budget display purposes but other Federal resources may NOT be used to 
meet the cost sharing provision, as discussed in Part II, section D. It 
is suggested that budget amounts and computations be presented in a 
columnar format: first column, object class categories; second column, 
Federal budget; next column(s), non-Federal budget(s), and last column, 
total budget. The budget justification should be a narrative.
Personnel
    Description: Costs of employee salaries and wages.
    Justification: Identify the project director or principal 
investigator, if known. For each staff person, provide the title, time 
commitment to the project (in months), time commitment to the project 
(as a percentage or full-time equivalent), annual salary, grant salary, 
wage rates, etc. Do not include the costs of consultants or personnel 
costs of delegate agencies or of specific project(s) or businesses to 
be financed by the applicant.
Fringe Benefits
    Description: Costs of employee fringe benefits unless treated as 
part of an approved indirect cost rate.
    Justification: Provide a breakdown of the amounts and percentages 
that comprise fringe benefit costs such as health insurance, FICA, 
retirement insurance, taxes, etc.
Travel
    Description: Costs of project-related travel by employees of the 
applicant organization (does not include costs of consultant travel).
    Justification: For each trip, show the total number of traveler(s), 
travel destination, duration of trip, per diem, mileage allowances, if 
privately owned vehicles will be used, and other transportation costs 
and subsistence allowances. Travel costs for key staff to attend HHS 
sponsored workshops should be detailed in the budget.
Equipment
    Description: ``Equipment'' means an article of tangible, non-
expendable, personal property having a useful life of more than one 
year and an acquisition cost which equals or exceeds the lesser of (a) 
the capitalization level established by the organization for the 
financial statement purposes, or (b) $5,000. (Note: Acquisition cost 
means the net invoice unit price of an item of equipment, including the 
cost of any modifications, attachments, accessories, or auxiliary 
apparatus necessary to make it usable for the purpose for which it is 
acquired. Ancillary charges, such as taxes, duty, protective in-transit 
insurance, freight, and installation shall be included in or excluded 
from acquisition cost in accordance with the organization's regular 
written accounting practices.)
    Justification: For each type of equipment requested, provide a 
description of the equipment, the cost per unit, the number of units, 
the total cost, and a plan for use on the project, as well as use or 
disposal of the equipment after the project ends. An applicant 
organization that uses its own definition for equipment should provide 
a copy of its policy or section of its policy which includes the 
equipment definition.
Supplies
    Description: Costs of all tangible personal property other than 
that included under the equipment category.
    Justification: Specify general categories of supplies and their 
costs. Show computations and provide other

[[Page 39567]]

information which supports the amount requested.
Contractual
    Description: Costs of all contracts for services and goods except 
for those that belong under other categories such as equipment, 
supplies, construction, etc. Third-party evaluation contracts (if 
applicable) and contracts with secondary recipient organizations, 
including delegate agencies and specific project(s) or businesses to be 
financed by the applicant, should be included under this category.
    Justification: All procurement transactions shall be conducted in a 
manner to provide, to the maximum extent practical, open and free 
competition. Recipients and subrecipients, other than States that are 
required to use Part 92 procedures, must justify any anticipated 
procurement action that is expected to be awarded without competition 
and exceed the simplified acquisition threshold fixed at 41 U.S.C. 
403(11) (currently set at $100,000). Recipients might be required to 
make available to HHS pre-award review and procurement documents, such 
as request for proposals or invitations for bids, independent cost 
estimates, etc.

    Note: Whenever the applicant intends to delegate part of the 
project to another agency, the applicant must provide a detailed 
budget and budget narrative for each delegate agency, by agency 
title, along with the required supporting information referred to in 
these instructions.

Construction
    N/A.
Other
    Enter the total of all other costs. Such costs, where applicable 
and appropriate, may include but are not limited to insurance, food, 
medical and dental costs (noncontractual), professional services costs, 
space and equipment rentals, printing and publication, computer use, 
training costs, such as tuition and stipends, staff development costs, 
and administrative costs.
    Justification: Provide computations, a narrative description and a 
justification for each cost under this category.
Indirect Charges
    Description: Total amount of indirect costs. This category should 
be used only when the applicant currently has an indirect cost rate 
approved by the Department of Health and Human Services (HHS) or 
another cognizant Federal agency. Applicants without an approved 
indirect cost rate may charge related costs as direct costs.
    Justification: An applicant that will charge indirect costs to the 
grant must enclose a copy of the current rate agreement. If the 
applicant organization is in the process of initially developing or 
renegotiating a rate, it should immediately upon notification that an 
award will be made, develop a tentative indirect cost rate proposal 
based on its most recently completed fiscal year in accordance with the 
principles set forth in the cognizant agency's guidelines for 
establishing indirect cost rates, and submit it to the cognizant 
agency. Applicants awaiting approval of their indirect cost proposals 
may also request indirect costs. It should be noted that when an 
indirect cost rate is requested, those costs included in the indirect 
cost pool should not also be charged as direct costs to the grant. 
Also, if the applicant is requesting a rate which is less than what is 
allowed under the program, the authorized representative of the 
applicant organization must submit a signed acknowledgment that the 
applicant is accepting a lower rate than allowed.
Program Income
    Description: The estimated amount of income, if any, expected to be 
generated from this project.
    Justification: Describe the nature, source and anticipated use of 
program income in the budget or refer to the pages in the application 
which contain this information.
Non-Federal Resources
    Description: Amounts of non-Federal resources that will be used to 
support the project as identified in Block 15 of the SF424.
    Justification: The firm commitment of these resources must be 
documented and submitted with the application in order to be given 
credit in the review process. A detailed budget must be prepared for 
each funding source.

    Note: In the SF424A, Section B, Budget Categories, list in 
column 2 non-federal resources separately from federal resources, 
which must be listed in column 1.

D. Competitive Review and Evaluation Criteria

    Applications which pass the initial ACF pre-review screening will 
be evaluated and rated by an independent review panel on the basis of 
specific evaluation criteria. The evaluation criteria were designed to 
assess the quality of the proposed project and to determine the 
likelihood of its success. The evaluation criteria are closely related 
and are considered as a whole in judging the overall quality of an 
application. Points are awarded only to applications that are 
responsive to the evaluation criteria within the context of this 
program announcement.
    There is no formal page limit for the complete application. 
However, ACF estimates that applicants should require no more than 30 
pages to provide needed information. Applicants are highly encouraged 
to be concise and only provide the information requested and needed. 
Supplementary information (e.g., brochures, reports) not required in 
this announcement will not be reviewed. More information about 
application submission is provided under Part IV, below.
    Proposed projects will be reviewed using the following evaluation 
criteria:
(1) Approach: (40 Points)
    The proposed program approach should consist of two parts: (1) A 
technical assistance strategy; and, (2) a plan for the issuance of 
awards or sub-awards by the applicant to faith- and community-based 
organizations.
    The application should describe the proposed approaches for 
assessing the range of needs and for the design and delivery of 
customized technical assistance to faith- and community-based 
organizations within the geographic area proposed to be covered. The 
application should include discussion of the types of assistance and 
supports that are to be provided with Federal funds, describe in detail 
the proposed approaches to identify diverse organizations that might 
benefit from the services available, and discuss methods to reach and 
involve large numbers of such organizations, including small 
organizations and those with which the applicant has less experience. 
In addition, the application should describe proposed methods to 
effectively address a variety of needs of such organizations to 
increase their capacity and effectiveness, and whether the methods have 
been effectively used by successful service programs. The application 
should describe how the proposed geographic area will be covered. 
Further, the application should include discussion of the proposed 
schedule for accomplishing the activities planned and factors that may 
negatively affect the project, and suggestions for addressing such 
factors.
    The application should provide information about the methods 
expected to be used to make sub-awards including: Methods for informing 
potential applicants about the funds available; methods for soliciting 
applications or requests for sub-awards; the proposed application and/
or decision making process; the criteria to be used for identifying 
``best'' or

[[Page 39568]]

``promising'' practices when sub-awards would be made to replicate or 
expand such practices; the methods to be used to make award and process 
sub-awards; and the plan for outcomes measurement and program 
evaluation of the activities that will be supported with sub-award 
funds made with Federal funds awarded under this announcement.
    The application will also be judged on the extent to which the 
proposed approaches to providing technical assistance to faith- and 
community-based organizations are thorough, adequate, workable, and 
likely to meet successfully a range of needs of such organizations and 
the stated objectives under this announcement. In addition, the 
application will be judged on the reasonableness and appropriateness of 
the approach proposed in relation to the geographic area proposed to be 
covered, the range of types of organizations expected to be assisted 
within the coverage area, and methods to inform and reach varied types 
of organizations particularly small organizations that have typically 
not been involved in similar activities.
    The application will also be judged on the extent to which the plan 
for sub-awards is clear, well conceived, reasonable, likely to meet the 
objectives for the activity as set out in this announcement, including 
making sub-awards to address the priority areas identified. In 
addition, the application will be judged on the extent to which the 
plan is fiscally responsible and sound but not overly burdensome for 
faith- and community-based organizations. Further, the application will 
be judged on the extent to which both parts of the program approach 
(technical assistance and sub-awards) are combined to form a coherent 
plan to achieve the expected results and benefits, establish positive, 
ongoing relationships between the intermediary and smaller 
organizations, and meet the objectives of the Compassion Capital Fund. 
The application will also be judged on the reasonableness of the 
proposed schedule for accomplishing tasks proposed.
(2) Results or Benefits Expected: (15 points)
    The application should include discussion of the specific goals of 
the proposed technical assistance strategy and sub-awarding process. 
The application should describe who the results will benefit, how the 
results may benefit such individuals or organizations, and why the 
results would be expected to be beneficial. The application will be 
judged on the extent to which the benefits proposed by the applicant 
are reasonable and likely, will support the stated goals under this 
announcement, and can be expected to have a positive impact on faith- 
and community-based organizations, particularly very small 
organizations or those which have not traditionally been served by 
Federal and other resources. The application will be judged on the 
extent to which the results are likely to be beneficial to a wide range 
of clearly identifiable parties.
(3) Staff and Position Data: (15 Points)
    The application should include a listing of key positions required 
to carry out the project as proposed, the key individuals proposed to 
fill the positions (i.e., both in the management/oversight arena and in 
the area of day-to-day operations) and a detailed description of the 
kind of work the individuals will perform within the project. The 
application should provide evidence of the staff's skill, knowledge and 
experience in carrying out the sort of activities to be assigned to 
them and describe their relevant training. Similar information should 
be provided with regard to consultants or staff from other 
organizations proposed to work on the project. The application should 
also describe the applicant organization, its mission, and experience 
in supporting the types of activities and staffing likely to be 
required under this announcement and the types of support expected to 
be provided by the organization for the project. The application should 
clearly describe past experiences working with faith- and community-
based organizations to address social needs.
    The application will be judged on the extent to which proposed 
staff has demonstrated skills, knowledge, and experience in providing 
technical assistance and support of the types set out under this 
announcement and required by faith- and community-based organizations 
and in carrying out the specific activities to be assigned to them. The 
application will be also be judged on the extent of demonstrated 
organizational experience and capability to support and conduct work on 
the scope and scale as proposed in the application.
    Further, the application will be judged on the appropriateness of 
the management plan to ensure that: work is accomplished as proposed 
and on schedule; appropriate lines of communication and oversight are 
established; appropriate methods to monitor quality of work are 
proposed; and appropriate methods to work closely and cooperatively 
with ACF and other entities funded by ACF are addressed.
(4) Objectives and Need for Assistance: (10 points)
    The applications should include discussion of (1) the needs and 
types of technical assistance required by faith- and community-based 
organizations in the geographic area that the applicant proposes to 
serve; and (2) the issues and challenges the applicant has considered 
and dealt with in designing and providing technical assistance and 
support to faith-based and community-based organizations. In addition, 
the application should include a discussion of the extent to which 
faith- and community-based organizations with which they would work 
have been underserved by Federal and other resources in the past and 
reasons why the applicant believes its services would benefit the types 
of faith- and community-based organizations intended to be served 
through the Compassion Capital Fund. Applications will be judged on the 
clarity and thoroughness of the discussion and its relevance to the 
program objectives set out within this announcement.
(5) Geographic Location: (10 points)
    The application should include a description of the precise 
geographic location proposed to be served, including the boundaries of 
the area, and the rationale for the geographic area proposed. Maps or 
other graphic aids may be included. Applications should include 
information about the experience and capability of the applicant to 
address the needs of faith- and community-based organizations in the 
proposed geographic area.
    The application will be judged on the extent to which the proposed 
geographic coverage area is clearly defined, reasonable given the 
relevant background and experience of the applicant organization, 
reasonable given the proposed approach, staffing, and project budget, 
and reasonable and adequate to allow the activities as described in 
this announcement to be provided to a range of faith- and community-
based organizations in need of such services.
(6) Budget and Budget Justification: (10 points)
    The application must include a narrative description and 
justification for each of the proposed budget line items (as described 
in the detailed budget instructions included above) and demonstrate 
that the project's costs are adequate, reasonable and necessary for the 
activities or personnel to be supported. The proposed budget must 
clearly distinguish between the two

[[Page 39569]]

program activities: technical assistance and awards/sub-awards, and set 
out the Federal share and non-Federal share of project costs.
    Applications that do not include the cost sharing amount specified 
in Part II will not receive any points under this criteria. For those 
that meet the cost share provision, the application will be judged on 
the extent to which the budget is clear, adequate, reasonable, and 
necessary to support and successfully carry out the tasks and 
activities proposed and support the number and kinds of staff 
necessary.
    (Applicants should refer to the budget information presented in the 
Standard Forms 424 and 424A and to the budget justification 
instructions in section C. General Instructions for the Uniform Project 
Description. Since non-Federal reviewers will be used in the review of 
applications, applicants may omit from the copies of the application 
submitted (not from the original), the specific salary rates or amounts 
for individuals in the application budget and instead provide only 
summary information.)

E. The Review Process

    Applications received by the due date will be reviewed and scored 
competitively. Experts in the field, generally persons from outside the 
Federal Government, will use the evaluation criteria listed in Part III 
of this announcement to review and score the applications. The results 
of this review are a primary factor in making funding decisions. ACF 
may also solicit comments from Regional Office staff and other Federal 
agencies. In order to ensure that the interests of the Federal 
Government are met in making the final selections, in addition to the 
review criteria identified above, ACF may consider a variety of factors 
including geographic diversity/coverage and types of applicant 
organizations. Further, ACF may limit the number of awards made to the 
same or affiliated organizations although they would serve different 
geographic areas. In this way ACF may increase opportunities for 
learning about different ways to provide technical assistance and 
support to faith- and community-based organizations.
    Please note that applicants that do not comply with the 
requirements in the section on ``Eligible Applicants'' will not be 
included in the review process.

Part IV. The Application Process

A. Required Forms

    Eligible applicants interested in applying for funds must submit a 
complete application including the required forms listed under the 
``Checklist for complete application'' in Part IV of this announcement. 
All necessary forms are available at: http://www.acf.dhhs.gov/programs/ofs/forms.htm.
    In order to be considered for a grant under this announcement, an 
application must be submitted on the Standard Form 424 approved by the 
Office of Management and Budget under Control Number 0348-0043. Each 
application must be signed by an individual authorized to act for the 
applicant and to assume responsibility for the obligations imposed by 
the terms and conditions of the grant award. Applicants requesting 
financial assistance for non-construction projects must file the 
Standard Form 424B, Assurances: Non-Construction Programs (approved by 
the Office of Management and Budget under control number 0348-0040). 
Applicants must sign and return the Standard Form 424B with their 
application.
    Applicants must provide a certification concerning lobbying. Prior 
to receiving an award in excess of $100,000, applicants shall furnish 
an executed copy of the lobbying certification (approved by the Office 
of Management and Budget under control number 0348-0046). Applicants 
must sign and return the certification with their application.
    Applicants must make the appropriate certification of their 
compliance with the Drug-Free Workplace Act of 1988. By signing and 
submitting the application, applicants are providing the certification 
and need not mail back the certification with the application.
    Applicants must make the appropriate certification that they are 
not presently debarred, suspended or otherwise ineligible for award. By 
signing and submitting the application, applicants are providing the 
certification and need not mail back the certification with the 
application.

B. Application Limits

    The application should be double-spaced and single-sided on 8 \1/
2\ x 11 plain white paper, with 1 
margins on all sides. Use only a standard size font no smaller than 12 
pitch throughout the application. All pages of the application 
(including appendices, resumes, charts, references/footnotes, tables, 
maps and exhibits) must be sequentially numbered, beginning on the 
first page after the budget justification, the principal investigator 
contact information and the Table of Contents. Although there is no 
limitation regarding number of pages, applicants are urged to be 
concise and limit applications to no more than 30 pages. Applicants are 
requested not to send pamphlets, brochures, or other printed material 
along with their applications as these pose copying difficulties. These 
materials, if submitted, will not be included in the review process. In 
addition, applicants must not submit any additional letters of 
endorsement beyond any that may be required. Applicants are encouraged 
to submit curriculum vitae in a biographical format.

C. Checklist for a Complete Application

    The checklist below is for your use to ensure that the application 
package has been properly prepared.

--One original, signed and dated application plus two copies.
--Attachments/Appendices, when included, should be used only to provide 
supporting documentation such as resumes, and letters of agreement/
support.

    (1) Application for Federal Assistance (SF-424, Rev,7-97)
    (2) Budget information-non-construction programs (SF424A&B)
    (3) Budget Justification, including subcontract agency budgets
    (4) Application Narrative and Appendices
    (5) Assurances Non-Construction Program
    (6) Certification Regarding Lobbying
    (7) If appropriate, a completed SPOC certification with the date of 
SPOC contact entered in line 16, page 1 of the SF-424, REV. 7-97

D. Application Submission

    Deadline. The closing (deadline) time and date for receipt of 
applications is 4:30 p.m. (Eastern Time Zone) on the date indicated 
under CLOSING TIME AND DATE at the beginning of this announcement. 
Applications received after 4:30 p.m. will be classified as late.
    Mailed applications shall be considered as meeting an announced 
deadline if they are received on or before the deadline time and date 
at the: OCS Operations Center, 1815 North Fort Myer Drive, Suite 300, 
Arlington, Virginia 22202 and labeled: Application for Compassion 
Capital Fund Demonstration Program. Applicants are responsible for 
mailing applications well in advance, when using all mail services, to 
ensure that the applications are received on or before the deadline 
time and date.
    Applications handcarried by applicants, applicant couriers, or 
other representatives of the applicant or by overnight/express mail 
couriers shall be considered as meeting an announced

[[Page 39570]]

deadline if they are received on or before the deadline date, between 
the hours of 8 a.m. and 4:30 p.m. at: OCS Operations Center, 1815 North 
Fort Myer Drive, Suite 300, Arlington, Virginia 22202 and labeled: 
Application for Compassion Capital Fund Demonstration Program. 
Applicants are cautioned that express/overnight mail services may not 
always deliver as agreed.
    ACF cannot accommodate transmission of applications by fax or 
through other electronic media. Therefore, applications transmitted to 
ACF electronically will not be accepted regardless of date or time of 
submission and time of receipt.
    Late applications. Applications that do not meet the criteria above 
are considered late applications. ACF shall notify each late applicant 
that its application will not be considered in the current competition.
    Extension of deadlines. ACF may extend an application deadline for 
applicants affected by acts of God such as floods and hurricanes, when 
there is widespread disruption of the mail service, or for other 
disruptions of services, such as a prolonged blackout, that affect the 
public at large. A determination to waive or extend deadline 
requirements rest with ACF's Chief Grants Management Officer.

E. Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995, Public Law 104-13 the 
Department is required to submit to OMB for review and approval any 
reporting and record keeping requirements in regulations including 
program announcements. All information collections within this program 
announcement are approved under the following current valid OMB control 
numbers 0348-0043, 0348-0044, 034800040, 0348-0046, 0925-0418 and 0970-
0139.
    Public reporting burden for this collection is estimated to average 
25 hours per response, including the time for reviewing instructions, 
gathering and maintaining the data needed and reviewing the collection 
of information.
    An agency may not conduct or sponsor and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.

    Dated: May 31, 2002.
Wade F. Horn,
Assistant Secretary for Children and Families.
[FR Doc. 02-14319 Filed 6-6-02; 8:45 am]
BILLING CODE 4184-01-P