[Federal Register Volume 81, Number 46 (Wednesday, March 9, 2016)]
[Notices]
[Pages 12529-12533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04977]


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DEPARTMENT OF LABOR

Employment and Training Administration


Updated Methodology for Selecting a Job Corps Center for Closure 
and Center Selected for Closure: Comments Request

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

ACTION: Notice.

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SUMMARY: The Employment and Training Administration of the U.S. 
Department of Labor (the Department or DOL) issues this notice 
announcing an update to its existing criteria for selecting Job Corps 
centers for closure based on a center's chronic low performance, and 
also announcing two new criteria for selecting a Job Corps center for 
closure: (1) When a joint decision is made by the Secretary of Labor 
and the Secretary of Agriculture to close a Civilian Conservation 
Center (CCC); or (2) when the Department determines that a high-quality 
education and training program cannot be

[[Page 12530]]

provided at the center. Additionally, the Office of Job Corps issues 
this notice to propose the closure of one center based on the low-
performance methodology that the Department first published in 2014 and 
updates with more recent data in this Notice: The Ouachita Job Corps 
Center in Royal, Arkansas. This notice seeks public comment on the 
proposal to close the Ouachita Center.

DATES: To be ensured consideration, comments must be submitted in 
writing on or before April 8, 2016.

ADDRESSES: You may submit comments, identified by Docket ID number ETA-
2016-0002, by only one of the following methods:
    Federal e-Rulemaking Portal: http://www.regulations.gov. Follow the 
Web site instructions for submitting comments.
    Mail and hand delivery/courier: Submit comments to Lenita Jacobs-
Simmons, National Director, Office of Job Corps (OJC), U.S. Department 
of Labor, Employment and Training Administration, 200 Constitution 
Avenue NW., Room N-4459, Washington, DC 20210. Due to security-related 
concerns, there may be a significant delay in the receipt of 
submissions by United States Mail. You must take this into 
consideration when preparing to meet the deadline for submitting 
comments. The Department will post all comments received on http://www.regulations.gov without making any changes to the comments or 
redacting any information, including any personal information provided. 
The http://www.regulations.gov Web site is the Federal e-rulemaking 
portal and all comments posted there are available and accessible to 
the public. The Department recommends that commenters not include 
personal information such as Social Security Numbers, personal 
addresses, telephone numbers, and email addresses in their comments 
that they do not wish to be made public, as such submitted information 
will be available to the public via the http://www.regulations.gov Web 
site. Comments submitted through http://www.regulations.gov will not 
include the email address of the commenter unless the commenter chooses 
to include that information as part of his or her comment. It is the 
responsibility of the commenter to safeguard personal information.
    Instructions: All submissions received should include the Docket 
Number for the notice: Docket ID number ETA-2016-0002. Please submit 
your comments by only one method. Again, please note that due to 
security concerns, postal mail delivery in Washington, DC may be 
delayed. Therefore, the Department encourages the public to submit 
comments on http://www.regulations.gov.
    Docket: All comments on the selected Job Corps Center for closure 
will be available on the http://www.regulations.gov Web site. The 
Department also will make all of the comments it receives available for 
public inspection by appointment during normal business hours at the 
above address. If you need assistance to review the comments, the 
Department will provide appropriate aids such as readers or print 
magnifiers. The Department will make copies of this methodology and the 
Job Corps center selected for closure available, upon request, in large 
print and electronic file on computer disk. To schedule an appointment 
to review the comments and/or obtain the notice in an alternative 
format, contact the Office of Job Corps at (202) 693-3000 (this is not 
a toll-free number). You may also contact this office at the address 
listed below.

FOR FURTHER INFORMATION CONTACT: Lenita Jacobs-Simmons, National 
Director, Office of Job Corps, ETA, U.S. Department of Labor, 200 
Constitution Avenue NW., Room N-4463, Washington, DC 20210; Telephone 
(202) 693-3000 (this is not a toll-free number). Individuals with 
hearing or speech impairments may access the telephone number above via 
TTY by calling the toll-free Federal Information Relay Service at 1-
(877) 889-5627 (TTY/TDD).

SUPPLEMENTARY INFORMATION: 

I. Background

    Established in 1964, Job Corps is a national program administered 
by the Employment and Training Administration (ETA) in the Department 
of Labor. It is the nation's largest federally-funded, primarily 
residential training program for at-risk youth, ages 16-24. With 126 
centers in 50 states, Puerto Rico, and the District of Columbia, Job 
Corps provides economically-disadvantaged youth with the academic, 
career technical, and employability skills to enter the workforce, 
enroll in post-secondary education, or enlist in the military.
    Large and small businesses, nonprofit organizations, and Native 
American tribes manage and operate 99 of the Job Corps centers through 
contractual agreements with the Department of Labor awarded pursuant to 
federal procurement rules, while 27 centers are operated through an 
interagency agreement with the U.S. Department of Agriculture (USDA). 
Job Corps receives annual funding to operate contractor-operated 
centers and USDA centers, administer the program, and build, maintain, 
expand, or upgrade a limited number of new and existing facilities.
    The Workforce Innovation and Opportunity Act (WIOA), which became 
effective on July 1, 2015, directs DOL to ``establish written criteria 
that the Secretary shall use to determine when a Job Corps center 
supported under this part is to be closed and how to carry out such 
closure[.]'' 29 U.S.C. 3211(c)(1). In August 2014, the Department 
published a methodology to apply when proposing a center for closure 
based on its chronic low performance. In December 2014, the Department 
provided a report to Congress indicating that it would use the August 
2014 criteria in deciding future closures and would update its closure 
criteria in the future. That report also indicated that the Secretaries 
of Labor and Agriculture might agree to close a CCC operated by the 
U.S. Forest Service. This Notice describes the Department's updated 
closure criteria; in addition, this Notice proposes one center for 
closure.

II. Closure Criteria

    The Department is constantly making efforts to ensure that Job 
Corps' limited resources are used to deliver the best possible results 
for students. As part of these ongoing efforts, the Department may 
determine that closing a center will allow Job Corps to provide the 
highest-quality program to its students more effectively.
    The three criteria described below are the criteria that the 
Department will use to determine when a Job Corps center should be 
closed:
     Closure based on chronic low performance, as announced in 
an August 2014 Federal Register notice (79 FR 51198), with one change 
described below to use the most recent five years available.
     Closure based on a joint decision of the Secretaries of 
Labor and Agriculture, described in a December 2014 report to Congress 
and further explained in this notice.
     Closure based on an evaluation of the effort required to 
provide a high-quality education and training program at the center.
    Closure may be based on any one of the three criteria, and a single 
criterion may be applied independently of the others. Thus, while a 
center may qualify for closure under more than one criterion, DOL may 
choose to rely on only one criterion when deciding to propose a center 
for closure. The

[[Page 12531]]

relevant additional considerations described below will be considered 
and applied depending on which criterion the Department utilizes.
    Job Corps, as with any education and training program, must respond 
to the changing needs of the students it educates and the career fields 
for which it provides training. As a result, the Department will 
continue to review and refine these criteria or add more closure 
criteria as necessary to best carry out Job Corps' mission.

A. Long-Term Center Performance

    DOL is not altering the performance-based criteria it announced in 
its August 27, 2014 closure methodology, except for changing the five-
year period of data reviewed from Program Years (PYs) 2008-2012 to the 
most recent five years available. As explained below, DOL applied the 
performance-based criteria in deciding to propose closing the Ouachita 
Center.
    As was more fully discussed in the August 27, 2014 Notice, 
chronically low-performing centers do not benefit the population of 
young people Job Corps aims to empower, and are a poor use of Job 
Corps' limited program dollars. DOL will continue to consider for 
closure those Job Corps centers marked with consistent and entrenched 
poor performance in order to better serve the nation's youth in 
acquiring career skills through quality job training.
    Accordingly, DOL will continue to use the following performance-
based criteria against which all centers are measured in evaluating 
whether a center should be closed:
    1. Five-year Outcome-Measurement System (OMS) performance level;
    2. Five-year On-Board Strength (OBS); and
    3. Five-year Facility Condition Index (FCI).
    A short description of these three factors is included below:
1. Five-Year Outcome-Measurement System (OMS) Performance Levels
    OMS is a collection of 15 metrics that provide a comprehensive 
assessment of center performance, which allows for comparison of 
performance among centers and supplies enough data for decision makers 
to identify trends over time. These published performance metrics have 
driven center performance and programmatic decisions for more than a 
decade. Accordingly, the primary performance-based factor in selecting 
a center for closure is a center's OMS data.
    In applying this factor, the Department will evaluate each center's 
overall OMS ratings for the five most recent full program years to 
derive a weighted five-year average performance rating. This updated 
methodology uses OMS performance data for the five most recent 
completed program years, with recent years receiving a greater weight 
than earlier years. Further, the original OMS ratings for each of the 
five program years, which exceeded 100% for some centers, were 
normalized at one hundred percent (100%) to be consistent with OBS and 
FCI. ``Normalized'' means the data has been placed on a 100-point 
scale. The calculation formula for the methodology also contains 
normalized data for OMS.
    The year-by-year weighted structure is as follows (these years will 
be automatically updated going forward):

PY 2014 30%
PY 2013 25%
PY 2012 20%
PY 2011 15%
PY 2010 10%
Total: 100%

The calculation formula for five-year performance for the methodology 
is as follows:

Center's five-year weighted average rating x 90% = Overall Performance 
Rating
2. On-Board Strength (OBS)
    On-Board Strength is an efficiency rating that demonstrates the 
extent to which a center operates at full capacity. The measure is 
reported as a percentage, calculated by the center's actual capacity 
for student slots divided by the planned capacity to fill those slots 
(daily number of students that a center is authorized to serve). The 
national goal for OBS is 100% in order to operate the program at full 
capacity, maximize program resources, and fulfill the mission of 
serving the underserved student population.
    This factor evaluates each center's end of Program Year OBS rating 
for five full program years to derive a five-year average rating. As 
explained above in the context of OMS data, the updated closure 
methodology uses OBS data from the most recent five-year period. As 
noted in the August 27, 2014, Federal Register Notice there were 
anomalies to the OBS data for PY 2011 and PY 2012 caused by temporary 
enrollment suspensions. The May 31, 2012, PY-Cumulative OBS (PY-COBS) 
report will be used as the basis for assessing center-level OBS 
performance for PY 2011. The January 31, (PY-COBS) report will be used 
as the basis for assessing center-level OBS performance for PY 2012.
    The updated methodology weights each of the last five program 
years' OBS data, with more recent years receiving more weight to 
incorporate performance improvement. Finally, the OBS ratings for each 
of the five program years were normalized at one hundred percent 
(100%), so as to be consistent with the OMS and FCI data.
    The year-by-year weighted structure is as follows (these years will 
be automatically updated going forward):

PY 2014 30%
PY 2013 25%
PY 2012 20%
PY 2011 15%
PY 2010 10%
Total: 100%

The calculation formula for five-year OBS for the methodology is as 
follows:

Center's five-year weighted average cumulative OBS x 5%= Overall OBS 
Rating

3. Facility Condition and Physical Plant
    Facility quality is critical for a residential educational program 
that houses its students on-site 24 hours a day, seven days a week, for 
much of the year. Poor facilities make it harder for students to learn 
and ultimately gain the job skills necessary to join and contribute to 
the American workforce. Each Job Corps center is a fully operational 
complex with academic and career technical training facilities, dining 
and recreation buildings, administrative offices, and residence halls 
(with the exception of solely non-residential facilities), including 
the surrounding owned or leased property on which the center is 
located.
    To properly manage the program's facility and condition needs, Job 
Corps uses the FCI and gives each center an annual rating. This rating, 
which is expressed as a percentage, accounts for the value of a 
center's construction, rehabilitation, and repair backlog, as compared 
to the replacement value of the center's facilities. Facility 
conditions affect the outcomes of the Job Corps program because good 
outcomes begin with facilities that contribute to a safe learning 
environment.
    For this factor, the Department evaluated each center's FCI, which 
takes into account all construction projects completed over the same 
five-year period as the other two factors.
    As with the performance and OBS criteria, the updated methodology 
applies weights to each of the five latest program year's FCI data, 
with more recent years receiving more weight to incorporate any recent 
improvement. The year-by-year weighted structure is as follows (these 
years will be automatically updated going forward):

PY 2014 30%

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PY 2013 25%
PY 2012 20%
PY 2011 15%
PY 2010 10%
Total: 100%

The calculation formula for FCI for the methodology is as follows:

Center's five-year weighted average FCI rating x 5% = Overall FCI 
Rating

    Applying the three performance-based factors above yields an 
overall rating for each center, allowing DOL to rank all centers based 
on historical performance, with the lowest performing center receiving 
the lowest rating. The calculation formula for the overall rating is as 
follows:

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Overall OMS                +   Overall OBS Rating         +   Overall FCI Rating        =   Overall Rating for
 Performance Rating             (5%)                           (5%)                          Primary Selection
 (90%)                                                                                       Factors.
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B. Agreement Between the Secretaries of Labor and Agriculture To Close 
Civilian Conservation Job Corps Centers (CCCs)

    Independent of the other two criteria, the Secretaries of Labor and 
Agriculture may jointly agree to close a CCC. These facilities are 
predominantly located in rural, sometimes remote locations and operated 
by the USDA through the U.S. Forest Service. As with other Job Corps 
Centers, these facilities provide skills training for disadvantaged 
young people to aid their entry into the American workforce, but with 
additional focus on conserving the United States' natural resources and 
providing assistance during natural disasters.
    This joint decision to close a center will take into account past 
efforts to improve the center's deficiencies, the prospect for 
improving those deficiencies, the impact on the mission and workforce 
of both departments, and the purpose and goals of the Job Corps 
program. The rationale behind the Agriculture and Labor Secretaries' 
decision to close a CCC will be detailed in a notice proposing the 
action. The Secretaries' decision to propose a CCC for closure under 
this criterion also will take into account the relevant additional 
considerations, detailed below. This basis is independent of other 
performance improvement and restructuring and reform efforts initiated 
by either Department or mandated by WIOA to address performance 
challenges at the CCCs. Finally, this criterion does not limit the 
Department's authority to propose closing a CCC based on the other 
closure criteria, regardless of whether the Secretaries jointly agree 
to close the center.
    This new criterion was not used as the basis to propose the closure 
of Ouachita. While the Ouachita Center is a CCC, the Department made 
this decision based upon chronic low performance, the criteria first 
described in the August 2014 Federal Register notice.

C. Evaluation of Continuing Center Operations

    The Department has determined that it may be necessary to close a 
center for reasons other than chronic low performance or agreement with 
the Secretary of Agriculture. Job Corps constantly evaluates the needs 
of each center it operates. Some centers, for a variety of reasons, 
face more difficult challenges than others in providing a safe, secure 
environment where participants can receive high-quality education and 
training. Some challenges develop over time, while others arise more 
rapidly. Challenges may involve the condition of the facility; its 
proximity to relevant job markets; the ability of the center to attract 
students; the impact of one-time events; or, a host of other factors. 
Addressing these challenges may require sustained efforts that involve 
significant programmatic, staff, capital, organizational, and/or other 
investments and resources. Even with such a commitment, it may be 
difficult to anticipate or achieve positive outcomes for students. In 
such a situation, Job Corps will carefully assess: (1) The ongoing 
needs of the center against those of the program overall; (2) the 
effort required to provide and maintain a high-quality, safe and 
productive living and learning environments; and (3) whether that 
effort is likely to ultimately produce an outcome that contributes to 
the program's overall strength and integrity. After reviewing all 
relevant information the Department may decide to propose a center for 
closure.
    This new criterion was not utilized in making the decision to 
propose to close the Ouachita Job Corps Center.

D. Additional Considerations

    After applying any of the three criteria described above, the 
Department will consider the following factors, as appropriate, when 
deciding whether it should propose a center for closure:
1. Job Corps Services for Residents in Each State, Puerto Rico, and the 
District of Columbia
    The Department is committed to providing services in a broad 
geographic area. When deciding to propose a center for closure, DOL 
will ensure that it maintains at least one Job Corps center in each 
state, the Commonwealth of Puerto Rico, and the District of Columbia, 
and will take into consideration whether a center's closure would have 
a disproportionate impact on the training opportunities for students in 
any one state. Additionally, Job Corps is committed to ensuring that a 
state's population, especially of young people who are eligible and 
could benefit from participating in the program, are adequately exposed 
to its opportunities and services. Accordingly, in applying the 
criteria, DOL will ensure that it does not too rapidly reduce Job 
Corps' presence in any one state.
2. Sufficiency of Data Available To Evaluate Center Performance
    The Department will not consider for closure under the performance-
based criteria any center for which it does not have sufficient data to 
evaluate that center's performance. The centers in Ottumwa, Milwaukee, 
Pinellas County, Denison, Long Beach, Gulfport, Wind River, and 
Manchester are not included for consideration for closure. For each of 
these centers, there is not enough OMS data to evaluate the center's 
performance over the full five-year performance period. The reasons for 
the lack of five years' continuous data for these centers include: Four 
new centers were opened during the five-year performance period 
(Ottumwa, Milwaukee, Wind River, and Manchester); three centers were 
excluded from OMS evaluation because of their selection as Center for 
Excellence (CFE) pilot sites (Pinellas County, Denison, and Long 
Beach); and one center operated at reduced capacity because of damage 
received during Hurricane Katrina (Gulfport).
3. Indication of Significant Recent Performance Improvement
    When applying the performance-based criteria, the Department will 
consider evidence of recent performance improvement. Therefore, a 
center will be removed from closure consideration if it is performing 
in the top half of centers in the most recent full year of performance 
data.

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4. Job Corps' Commitment to Diversity
    Job Corps currently serves a diverse student population and remains 
committed to serving disadvantaged youth from all backgrounds. In 
making final closure decisions under any of the three criteria, we will 
consider whether a center's closure would result in a significant 
reduction in student diversity within the overall Job Corps system.

III. Job Corps Centers Selected for Closure

    Based on the performance-based criteria, and after applying the 
additional considerations described above, the Department proposes to 
close the Ouachita Job Corps Center in Royal, Arkansas. As noted above, 
the two new criteria did not factor into this decision.
    In applying the performance-based criteria, the Department first 
calculated the five-year OMS performance level, the five-year OBS, and 
the five-year FCI and then calculated the Overall Rating for Primary 
Selection Factors, as described above, using data from PY 2010-2014. 
The Ouachita Job Corps Center in received the lowest Overall Rating for 
Primary Selection Factors and, therefore, the lowest ranking.
    After ranking the centers based on the primary criteria, the 
Department then applied the additional considerations. The Department 
determined that these considerations did not preclude closure of the 
Ouachita Job Corps Center. The Department is requesting public comments 
on the selection of the Ouachita Job Corps Center for closure.
    The Department will implement the closure process pursuant to the 
center closure requirements outlined in the WIOA at section 159(j) and 
as stipulated in the DOL/USDA Interagency Agreement.

IV. The Process for Closing Job Corps Centers, as Outlined in the 
Workforce Innovation and Opportunity Act (WIOA)

    The Department's process for closing Job Corps centers will follow 
the requirements of section 159(j) of the WIOA, which include the 
following:
     The proposed decision to close a particular center is 
announced in advance to the general public through publication in the 
Federal Register or other appropriate means;
     A reasonable comment period, not to exceed 30 days, is 
established for interested individuals to submit written comments to 
the Secretary; and
     The Member of Congress who represents the district in 
which such center is located is notified within a reasonable period of 
time in advance of any final decision to close the center.
    This Notice serves as the public announcement of the decision to 
close the Ouachita Job Corps Center. The Department is providing a 30-
day period for interested individuals to submit written comments on the 
proposed decision to close these centers.

Portia Wu,
Assistant Secretary for Employment and Training.
[FR Doc. 2016-04977 Filed 3-8-16; 8:45 am]
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