[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48766-48779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17657]


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DEPARTMENT OF EDUCATION


Applications for New Awards; Providing High-Quality Career and 
Technical Education Programs for Underserved, High-Need Youth Through a 
Pay for Success Model

AGENCY: Office of Career, Technical, and Adult Education (OCTAE), 
Department of Education.

ACTION: Notice.

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    Overview Information: Providing High-Quality Career and Technical

[[Page 48767]]

Education (CTE) Programs for Underserved, High-Need Youth through 
technical assistance on Pay For Success Models (CTE PFS TA Program) 
Notice inviting applications for a new award in fiscal year (FY) 2016.

Catalog of Federal Domestic Assistance (CFDA) Number: 84.051


DATES: 
    Applications Available: July 26, 2016.
    Date of Pre-Application Meeting: August 2, 2016.
    Deadline for Transmittal of Applications: August 25, 2016.

Full Text of Announcement

I. Funding Opportunity Description

    Purpose of the program: The purpose of this program is to support 
the development of a financing model, High-Quality Pay for Success 
(PFS),\1\ to implement new or scale up existing high-quality career and 
technical education (CTE) projects for Underserved, High-Need Youth 
(CTE PFS Project). To this end, the Department will award a grant to an 
Intermediary to provide technical assistance for the first two of three 
phases of a PFS financing model. In phase one, the Intermediary will 
complete Feasibility Studies in four Local CTE Sites. In phase two, the 
Intermediary will provide or support transaction structuring, based on 
the limited funding level, for up to three out of the previously 
identified four local sites to the extent that the local site's CTE PFS 
project is determined to be feasible. While it is our intent that all 
of the selected local CTE PFS projects will result in a fully-
structured PFS project ready to launch, each program may have different 
challenges that might result in not all projects completing these first 
two phases by the end of the grant period. The ultimate aim of the CTE 
PFS TA Program is to improve outcomes for Underserved, High-Need Youth 
through fully-structured High-Quality PFS Projects ready to be 
implemented in the Local CTE Sites using High-Quality CTE programs.
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    \1\ Defined terms are used throughout the notice and are 
indicated by capitalization.
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    Background: Section 114(c)(1) of the Carl D. Perkins Career and 
Technical Education Act of 2006 (Perkins IV) authorizes the Office of 
Career, Technical, and Adult Education (OCTAE) to provide support 
directly or through grants, contracts, or cooperative agreements, for 
research, development, demonstration, evaluation, assessment, capacity-
building, and technical assistance activities aimed at improving the 
quality and effectiveness of CTE programs authorized under Perkins IV.
    PFS financing models offer a way for the Federal government to 
support the development and scaling up of effective, evidence-based 
programs for Underserved, High-Need Youth and to test new, innovative 
programs. There is a small but growing body of evidence about CTE 
program models that have been shown to produce positive outcomes for 
Underserved, High-Need Youth. The following program models, including 
career academies and early college high schools, are examples of the 
kinds of strong CTE program models that may be used by CTE sites that 
are testing PFS financing models.
    Career academies restructure large high schools into smaller 
learning communities. They offer courses and activities connected to 
career or occupational themes and typically require all students to 
complete a work-based learning experience. A randomized controlled 
trial, over a 12-year period, found that career academies result in 
positive effects on labor market outcomes.\2\ Students in career 
academies have been shown to have earned, on average, 11 percent 
($2,088) more per year than did students in the non-career academies 
group, an increase of $16,704 (in 2006 dollars) in total earning over 
the eight years following high school.\3\
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    \2\ Kemple, James and Cynthia Willner. 2008. Career Academies: 
Long-Term Impacts on Labor Market Outcomes, Educational Attainment, 
and Transitions to Adulthood. New York, NY: MDRC. p.42. Retrieved 
from http://www.mdrc.org/sites/default/files/full_50.pdf.
    \3\ Ibid. p. 12.
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    Early college high schools (ECHS) provide students with exposure to 
college and the opportunity to take college courses while they are in 
high school. ECHS partner with colleges and universities to offer all 
students an opportunity to earn an Associate's degree or up to two 
years of college credit toward an Associate's or Bachelor's degree 
during high school at no or low cost to students. ECHS often have a CTE 
focus, such as health, life sciences, or information technology. A 
randomized controlled trial conducted over an eight-year period found 
that ECHS students graduated from high school at a higher rate than 
non-ECHS students (86 percent versus 81 percent).\4\ Researchers also 
found that ECHS students had higher postsecondary enrollment rates 
compared to non-ECHS students (80 percent versus 71 percent).\5\ 
Additionally, 22 percent of ECHS students earned a postsecondary degree 
during the study period versus two percent of comparison students.\6\
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    \4\ Berger, A., Turk-Bicakci, L., Garet, M., Song, M., Knudson, 
J., Haxton, C., Zeiser, K., Hoshen, G., Ford, J., Stephan, J., 
Keating, K., & Cassidy, L. (2013). Early college, early success: 
Early College High School Initiative Impact Study. Washington, DC: 
American Institutes for Research. p. 31. Retrieved from
    http://www.air.org/resource/early-college-early-success-early-college-high-school-initiative-impact-study-2013.
    \5\ Ibid. p. 29.
    \6\ Ibid. p. 33.
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    Other CTE models that have some evidence of similar positive 
outcomes for youth include: (1) CTE-focused high schools in 
Philadelphia had higher on-time graduation rates compared to 
traditional public high schools in the district; \7\ (2) Project Lead 
the Way, a project/problem-based approach to STEM \8\ education that is 
aligned with Common Core State Standards in math and English, and Next 
Generation Science Standards resulted in students increasing their in-
demand knowledge and transferable job skills; \9\ (3) Linked 
Learning,--an educational approach that not only integrates academic 
and high-quality career and technical education but is also sequenced 
to support students transitioning from middle school through high 
school and postsecondary education,--resulted in students earning more 
credits in the first three years compared to their peers in traditional 
high school programs (1.8 credits more at the end of 11th grade), and 
being more likely to stay in their school district through 12th grade 
compared to similar students in traditional programs (five percentage 
points more); 10 11 12 and (4) CTE-focused Smaller Learning 
Communities--a school restructuring strategy that

[[Page 48768]]

involves smaller, personalized learning environments that are often 
focused on a specific career theme--resulted in increased four-year 
graduation rates for participating students (70.4 percent for smaller 
learning community enrollees compared to 60.9 percent for their control 
group counterparts.\13\ \14\
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    \7\ Neild, Ruth Curran, Christopher Boccanfuso, and Vaughan 
Byrnes. 2013. The Academic Impacts of Career and Technical Schools: 
A Case Study of a Large Urban School District. Baltimore, MD: Johns 
Hopkins University, Center for Social Organization of Schools. 
Retrieved from http://new.every1graduates.org/wp-content/uploads/2013/02/The-Academic-Impacts-of-Career-and-Technical-Schools.pdf.
    \8\ STEM is the abbreviation for ``Science, Technology, 
Engineering and Mathematics.''
    \9\ Starobin, S.S., Schenk, T. Jr., Laanan, F.S., Retwisch, D., 
Kollasch, A., Chen, Y., & Baul, T. (2013). Evaluation research of 
the Iowa Project Lead the Way: Final project report, June 2013. 
Prepared for the Kern Family Foundation. Retrieved from http://www.cclp.hs.iastate.edu/research/rbriefs/PLTWReport2013-Final.
    \10\ Guha, R., K. Caspary, R. Stites, C. Padilla, N. Arshan, C. 
Park, V. Tse, S. Astudillo, A. Black, & N. Adelman. (2014). Taking 
Stock of the California Linked Learning District Initiative. Fifth-
Year Evaluation Report. Menlo Park, CA: SRI International. Retrieved 
from http://www.connectedcalifornia.org/direct/files/resources/year5linkedlearningevaluationreportdec2014.pdf.
    \11\ Ibid p.A-26.
    \12\ Ibid p.56.
    \13\ Bloom, Howard and Rebecca Unterman. 2013. Sustained 
Progress: New Findings about the Effectiveness and Operation of 
Small Public High Schools of Choice in New York City. New York: 
MDRC. Retrieved from http://www.mdrc.org/sites/default/files/sustained_progress_FR_0.pdf.
    \14\ Ibid pp. 5-6.
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    PFS includes innovative contracting and financing models that test 
and advance promising and proven interventions while paying only for 
successful outcomes for families, individuals, and communities. Through 
a PFS project, a government (or other) entity enters into a contract to 
pay for the achievement of concrete, measurable outcomes for specific 
people or communities. Service providers deliver interventions to 
achieve these outcomes. Payments, known as Outcomes Payments, are made 
only if the interventions achieve those outcomes agreed upon in 
advance. In many cases, these outcomes are expected to occur over a 
period of years, meaning that the service providers need outside 
funding in order to cover their operating costs. In these cases, PFS 
financing is used by bringing in Investors, which are recruited 
typically by an Intermediary contracted by the government. The 
government or other entity makes Outcomes Payments that, where PFS 
financing is used, repay Investors for their capital that covered the 
costs of services (and sometimes other projects costs) and offer them a 
modest return. Ideally, with or without PFS financing, Outcomes 
Payments amount to a fraction of the short- and long-term cost savings 
to the government (or other) entity resulting from the successful 
outcomes. In other cases, these payments may represent an overall 
greater value to the government or other payor based on the achievement 
of better outcomes than would otherwise have occurred.
    PFS contracting and financing require partnerships among multiple 
stakeholders. Partners typically include:
     One or more outcomes ``payors,'' generally Federal, State, 
Local, or Tribal government entities, or other public or private 
entities that contract to pay for outcomes when achieved;
     Service provider(s), which deliver the intervention(s) 
intended to achieve the outcomes;
     Investor(s), which cover the upfront cost of implementing 
the intervention and at times other associated costs through PFS 
financing and may receive a return on investment if the outcomes are 
achieved; and
     Independent Evaluator, which determines, through a 
Rigorous Evaluation, whether the intervention achieved the Outcome 
Measure(s) sought.
    Many PFS projects in the United States to date have also included a 
project coordinator or intermediary, an entity that facilitates and 
manages the PFS project and contracting process implementation.
    The development, implementation, and evaluation of PFS projects 
typically involve three stages: Feasibility Study; transaction 
structuring; and agreement implementation.
    The first stage, Feasibility Study, includes the following 
activities:
     Identification of outcome(s) sought;
     Assessment of community needs, assets, and capacity;
     Identification of a challenge(s) or barrier(s) for serving 
a particular population or addressing a social issue and determination 
of the total costs associated with the lack of intervention;
     Identification of interventions that can achieve the 
desired outcome(s);
     Projection of the potential public value, including any 
savings, to be achieved through potential interventions; and
     Determination of the willingness and capacity of 
stakeholders to implement a PFS project; and
     Development of Rigorous Evaluation methodology to 
determine if Outcome Measures have been achieved.
    The second stage, transaction structuring, includes, but is not 
limited to, the following activities:
     Providing overall PFS coordination and support;
     Raising capital and developing capital structure;
     Mediating and facilitating agreements between each of the 
parties to the project;
     Aligning project design and evaluation;
     Tracking the impact of achieving the Outcome Measures on 
government funding streams in terms of cost savings and avoidance.
     Finalizing the PFS project and preparing for post-closing 
activities and allowing for transition of critical information to those 
implementing the third stage; and
     Supporting ramp-up activities.
    The third stage, contract implementation, involves the 
implementation of the PFS project, whereby the intervention is 
delivered by the service provider, an evaluation is conducted, and 
performance is monitored. If the third-party evaluator confirms that 
outcome milestones have been reached, the outcomes payor makes Outcomes 
Payments to PFS Investors.
    This CTE PFS TA program will focus on the first two stages of a PFS 
Project, Feasibility Study and transaction structuring, and aims to:
     Provide selected Local CTE Sites with the resources and 
expertise needed to effectively determine their ability to utilize a 
PFS financing model to implement new, or scale up existing, High-
Quality CTE Programs for Underserved, High-Need Youth and the 
appropriateness of a PFS financing approach;
     Increase the capacity of the Local CTE Sites to identify, 
assess, support and scale evidence-based solutions for CTE programs;
     Increase the pipeline of CTE PFS projects;
     Increase awareness in the CTE field about how to 
successfully structure PFS financing transactions; and
     Identify the appropriate Rigorous Evaluation for 
evaluating a PFS-financed CTE program, the metrics for determining 
whether the program is successful based on the evaluation, and build 
understanding of how to align the processes of designing the project 
and the evaluation.
    Purpose of the Competition: The purpose of this competition is to 
award a grant through a cooperative agreement to an Intermediary to 
select four Local CTE Sites and provide technical assistance to the 
four Local CTE Sites to implement new, or scale up existing, High-
Quality CTE Programs for Underserved, High-Need Youth through a PFS 
model during the Feasibility Study phase and transaction structuring 
phase, with the ultimate aim of improving outcomes through a High-
Quality PFS Project. This Intermediary must:
    (a) Select four Local CTE Sites based on at least the selection 
criteria in section (a)(1) of the Program Requirements in this notice;
    (b) Provide technical assistance:
    (1) To the four selected Local CTE Sites throughout the Feasibility 
Study phase, including by completing four Feasibility Studies;
    (2) To up to three of the four Local CTE Sites, as applicable, 
throughout the transaction structuring phase; and
    (3) Including to:
    (i) Develop PFS financing models as a basis for implementing new, 
or scaling up existing, High-Quality CTE Programs for Underserved, 
High-Need Youth;

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    (ii) Develop CTE PFS Projects that have the potential to improve 
the subsequent education, credentialing, employment, earnings, and 
other outcomes for Underserved, High-Need Youth;
    (iii) Where feasible, develop fully-structured CTE PFS Agreements 
for the Local CTE Sites that will ultimately allow them to implement 
the CTE PFS Project and related evaluations; and
    (4) Document the lessons learned from the CTE PFS Projects in a 
format and manner that the Department and four Local CTE Sites may 
disseminate to the CTE field and other key stakeholders to inform 
future CTE investments.
    Program Requirements: We are establishing these requirements for 
the FY 2016 grant competition and any subsequent year in which we make 
awards from the list of unfunded applications from this competition, in 
accordance with section 437(d)(1) of the General Education Provisions 
Act (GEPA), 20 U.S.C. 1232(d)(1). The Secretary intends to make a grant 
through a cooperative agreement for the CTE PFS TA Program that 
includes two stages of work:
    (a) Feasibility Study: The Intermediary will identify and provide 
technical assistance for up to four Local CTE Sites, including a 
completed PFS Feasibility Study for each Local CTE Site to determine if 
PFS is feasible to meet the needs of Underserved, High-Need students at 
those sites. Appropriate technical assistance may include, but is not 
limited, to:
    (1) Identifying local CTE programs that could benefit from PFS 
technical assistance. In coordination with OCTAE, the Intermediary will 
design, finalize and implement an Open and Fair Competition to select 
the four Local CTE Sites. In order to ensure an Open and Fair 
Competition, the Intermediary or their agents that develop or draft 
specifications, requirements, statements of work, and invitations for 
application shall be excluded from competing. Solicitations shall 
clearly establish all requirements that the applicant shall fulfill for 
their proposal to be evaluated.
    The competition conducted by the Intermediary must select four 
Local CTE Sites based on at least the following selection criteria:
    (i) Geographic diversity (urban, suburban, and rural) of Local CTE 
Sites that have a significant population of Underserved, High-Need 
Youth who could benefit from High-Quality CTE Programs;
    (ii) The extent that the Local CTE Site has the interest and 
capacity to implement a High Quality PFS Project;
    (iii) The extent that the Local CTE Site has the capacity to work 
with the Intermediary to meet the requirements of the Feasibility Study 
and Transaction Structuring in the Requirements section of this notice;
    (iv) The extent that the Local CTE Site has a high likelihood of 
proceeding to the transaction structuring phase of the CTE PFS Project;
    (v) The extent that the Local CTE Site's work aligns or will align 
with local workforce demands;
    (vi) The extent that the Local CTE Site is committed to or has 
experience using Evidenced-based Interventions;
    (vii) The extent that the Local CTE Site has existing connections 
to local payors; and
    (viii) If the Local CTE Site is a member of a consortia eligible to 
receive assistance under section 131 of Perkins IV or a consortium of 
eligible institutions eligible to receive assistance under section 132 
of Perkins IV, the Intermediary must provide preference.
    (2) Providing selected Local CTE Sites with technical assistance 
while completing a Feasibility Study during the Feasibility Study stage 
including the following tasks:
    (i) Organizational/Programmatic Assessment:
    (A) Ascertaining local needs and priority areas for CTE strategies 
most appropriate for a CTE PFS Project, for example: identifying 
possible evidence-based CTE programs, such as those described in the 
Background section of this notice; assessing the evidence base for 
different CTE interventions; assessing the likelihood of success of 
those CTE interventions in the local context; and assisting in 
determining the specific CTE intervention that will be used for the CTE 
PFS Project in each Local CTE Site;
    (B) Assessing the strength, expertise, and capacity of an 
educational program to deliver the CTE intervention and achieve desired 
outcomes, including stakeholder and community support;
    (C) Evaluating the willingness and capacity of stakeholders to 
implement a CTE PFS Agreement that would result in high-quality career 
and technical education projects for Underserved, High-Need Youth;
    (D) Assessing available local, State, Federal, and administrative 
data, and other available evidence, data, and information relevant to 
carrying out potential CTE PFS Projects, including the Local CTE Sites' 
capacity for data matching and analysis; and
    (E) Proposing a Rigorous Evaluation design to assess a CTE PFS 
Project's success.
    (ii) Budgetary/Financial Analysis:
    (A) Developing a framework and conducting analyses for estimating 
public sector savings and Benefits, and potential costs and 
performance-based payments for potential CTE PFS Projects in order to 
inform decision-making;
    (B) Identifying and estimating potential costs and savings at each 
level of government and for each program; and
    (C) Developing a budget estimating the costs needed for the 
transaction structuring phase, for ramp-up costs (if applicable), and 
implementation.
    (iii) Legal/Regulatory Review:
    (A) Identifying statutory, regulatory, fiscal, and programmatic 
barriers to implementation of CTE PFS Projects and recommending the 
necessary steps to remove these barriers; and
    (B) Assessing and addressing appropriate risks (e.g., the risk that 
the relevant entity may not be able to make future Outcomes Payments).
    (iv) Data Capacity:
    (A) Assessing the capacity of the Local CTE Sites to collect and 
analyze data pertaining to implementation and outcomes of the PFS 
Projects;
    (B) Assisting sites to identify and gain access to relevant 
administrative data systems such as, but not limited to, Unemployment 
Insurance records, State Longitudinal Data Systems, Wage Record 
Interchange System, Federal Employment Data Exchange, and the National 
Student Clearinghouse, consistent with the Family Educational Rights 
and Privacy Act (20 U.S.C. 1232g; 34 CFR part 99) and other applicable 
Federal, State and local privacy laws; and
    (C) Increasing capacity of Local CTE Sites to leverage 
administrative data to monitor progress on short- and long-term 
outcomes.
    (v) Procurement:
    (A) Designing and implementing a process for collecting relevant 
information from the public or key audiences to inform potential PFS 
activities for the Local CTE Sites, including priorities, service 
delivery, transaction structuring, evaluation, or other relevant 
issues, priorities, concepts and strategies;
    (B) Designing and publicizing requests for proposals, notices of 
funding availability, or other relevant funding announcements/proposal 
solicitations for release by government entities or other payors to 
solicit the services of coordinators, service providers, or evaluators; 
and
    (C) Assessing solicited proposals, including respondents' 
organizational capacity, past performance, operating model, strength of 
outcomes, efficiency,

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quality of management team, and suitability for PFS financing.
    (3) Submitting to the Department the results of the Feasibility 
Study for each of the four Local CTE Sites that include, at a minimum:
    (i) A description of the proposed evidence-based CTE intervention 
that includes, at a minimum, how the intervention is likely to improve 
student outcomes, based on quantitative, qualitative, or theoretical 
evidence; the goals, objectives, and outcomes to be achieved by the 
proposed CTE program which are clearly specified and measurable and 
will demonstrate student success; and how the intervention is 
appropriate to, and will successfully address, the needs of 
Underserved, High-Need Youth;
    (ii) Identification of one or more clearly specified and measurable 
Outcome Measures related to education and employment;
    (iii) A Cost-Benefit Analysis that accounts for, among other 
things, costs, savings and other benefits across programs and levels of 
government;
    (iv) Identification of any statutory or legal barriers to 
implementing a CTE PFS Project and how they will be addressed.
    (v) Identification of potential source(s) of Outcomes Payments from 
public or private entity(ies).
    (b) Transaction Structuring: The Intermediary must provide support 
for structuring the CTE PFS agreement for up to three Local CTE Sites 
with feasible CTE PFS Projects. Activities may include, but are not 
limited to:
    (1) Providing overall PFS Project coordination and support to--
    (i) Design CTE PFS Project work plan, timeline, and task list;
    (ii) Coordinate planning and meetings of relevant CTE PFS Project 
stakeholders;
    (iii) Manage all project elements to meet shared timeline of CTE 
PFS Project stakeholders;
    (iv) Develop a plan to train and provide technical assistance for 
selected Local CTE Sites to provide services, including engaging and 
educating providers to ensure that expectations of their role in the 
CTE PFS Project are clear;
    (v) Assess the strength, expertise, and capacity of selected Local 
CTE Sites to provide services, including quantitative and qualitative 
assessment of respondents' track records, operating models, strength of 
outcomes, and compatibility with the CTE PFS Project;
    (vi) Address Local CTE Site performance concerns or capacity gaps;
    (vii) Coordinate selection of qualified Independent Evaluator(s);
    (viii) Coordinate or lead design of key project components, 
including detailed service provision, duration of services, outcome 
measures and monitoring, and PFS intervention evaluation design; and
    (ix) Ensure that all data necessary to identify the target 
population and measure outcomes will be made available by the 
government entity or other entity, and shared among relevant 
stakeholders, including the Intermediary and Independent Evaluator on a 
timely basis and in accordance with all applicable confidentiality and 
Federal, State and local privacy laws and requirements.
    (2) Raising capital and developing capital structure by:
    (i) Identifying sources of funding for Outcomes Payments (including 
sources beyond Federal funds);
    (ii) Conducting Financial Modeling of the transaction, including 
analysis of possible payment terms and transaction structures;
    (iii) Developing an investment and structure, regarding Outcomes 
Payments, that mitigates relevant risks and establishes appropriate 
incentives;
    (iv) Developing relevant documentation, such as a term sheet, that 
includes Outcomes Payments, pricing, payment schedules, and capital 
structure; and
    (v) Marketing the CTE PFS Project to Investors in order to raise 
capital commitments necessary to fund the CTE PFS Project.
    (3) Mediating and facilitating an agreement between each of the CTE 
PFS Partners to the transaction by:
    (i) Coordinating the negotiation of all parties around economic and 
contract terms;
    (ii) Developing and finalizing all contracts and supplementary 
documentation, including offering or loan documents that may be 
relevant and working with legal counsel as appropriate; and
    (iii) Closing the Intermediary's CTE PFS work/activities with Local 
CTE Sites.
    (4) Proposing additional or alternative strategies under any of the 
above task areas which further the purposes of the CTE PFS TA Program.
    (5) Documenting and disseminating lessons learned from the 
transaction structuring phase.
    Public Use of Data and Documentation: The Intermediary and the four 
local CTE Sites must be willing to make data and documentation publicly 
available for the purposes of transparency and knowledge sharing, 
including making the CTE PFS Agreements publicly available. To 
facilitate knowledge sharing and enable other communities to learn from 
the Local CTE Sites' PFS experiences, the Department intends to post 
publicly on its Web site Feasibility Studies, lessons learned, best 
practices, documents created for transactions such as contracts, and 
other tools created throughout the PFS phases, while adhering to the 
confidentiality needs of program participants as well as local, State, 
and Federal laws.
    Participation in a Department-Sponsored Program Evaluation: As a 
condition of the cooperative agreement, the Intermediary will be 
required to cooperate with all Department staff, contractors, or 
designated grantees performing research or evaluation studies funded by 
the Department. The Intermediary must establish any necessary 
agreements with the four Local CTE Sites to ensure that the 
Intermediary is able to completely respond to and cooperate with 
Department staff, contractors, or designated grantees performing 
research or evaluation studies funded by the Department.
    Cooperative Agreement: The Secretary plans to make a grant award 
under the terms of a cooperative agreement to a Grantee (Intermediary) 
as defined in this notice. The Secretary expects to have substantial 
involvement with the Grantee during the performance of the funded 
project, including, but not limited to:
    (a) Direct involvement in the review and approval of project 
activities;
    (b) Substantial input into the final selection and approval of the 
Local CTE Sites;
    (c) Continued and regular participation in project activities;
    (d) Halting a project activity if detailed performance 
specifications or requirements are not met;
    (e) Substantial input into the final selection and approval of the 
three Local CTE Sites that will receive transaction structuring TA; and
    (f) Reviewing and approving one stage of work before subsequent 
work may begin, especially between the Feasibility Analysis and 
transaction structuring phases of the CTE PFS Projects.
    Milestone Reporting and Documentation: Under the cooperative 
agreement, at a minimum, the Intermediary must submit the following 
reports and documents according to the timelines noted below:
    (a) Within two months of the grant award, the Intermediary's plan 
to implement an Open and Fair Competition to select four Local CTE 
Sites (selection plan) to receive Feasibility Study technical 
assistance

[[Page 48771]]

for approval by the Department. This selection plan must:
    (1) Include the key eligibility criteria for selecting the Local 
CTE Sites;
    (2) Identify the acceptable level of evidence for the potential CTE 
PFS project's proposed intervention, given that all proposed CTE PFS 
projects must include interventions that have at least a preliminary 
level of evidence;
    (3) Detail how the selection process will:
    (i) Comply with requirements for an Open and Fair Competition, and
    (ii) Ensure that appropriate conflict of interest policies are in 
place for selection of Local CTE Sites;
    (4) Provide the timeline for implementing the selection plan, 
including milestones for releasing the Intermediary's request for 
proposals or other competition document and selecting local CTE Sites.
    (b) At least one month in advance of releasing a competition notice 
for Local CTE Sites interested in implementing a Feasibility Study, the 
Intermediary must submit a finalized detailed plan to the U.S. 
Department of Education for approval containing the required 
information in paragraph (a) of this section.
    (c) Prior to selecting the four Local CTE Sites, the Intermediary 
must submit a report on the Intermediary's Open and Fair Competition 
implementing the approved selection plan recommending four Local CTE 
Sites to receive feasibility technical assistance for approval by the 
Department. The report should include:
    (1) A description of the evidence demonstrating that the Service 
Delivery Model is likely to achieve the stated outcomes; and
    (2) A summary of the experience of the Local CTE Site delivering 
the proposed intervention or a similar intervention, or other 
contracted intervention initiated by the Local CTE Site, or other 
evidence demonstrating the service provider has the expertise necessary 
to deliver the proposed intervention.
    (d) Provide a plan and timeline, including milestones, for 
completing the Feasibility Studies for the four Local CTE Sites within 
24 months of the grant award identifying each of the critical steps for 
approval by the Department.
    (e) Provide quarterly reports to the Department on the 
Intermediary's progress developing and completing CTE PFS Feasibility 
Studies for the four Local CTE Sites consistent with the approved plan, 
timeline and critical steps in paragraph (d).
    (f) Complete, review, and disseminate the four written CTE PFS 
Feasibility Studies within 24 months of the grant award consistent with 
program requirements.
    (g) Where a Feasibility Study concludes that a CTE PFS Project is 
not viable or appropriate, an explanation of why the project is not 
feasible and suggested alternatives to the CTE PFS Project or next 
steps to ready the Local CTE Site for the CTE PFS Project to become 
viable.
    (h) Submit a plan to verify the results of the Feasibility Studies 
and outline the selection criteria that will be used to determine which 
entities will receive transaction structuring technical assistance.
    (i) Provide a plan and timeline, including milestones, for the 
transaction structuring phase, identifying each of the critical steps 
for approval by the Department.
    (j) Provide quarterly reports to the Department on the 
Intermediary's progress developing and completing the transaction 
structuring Phase consistent with the approved timeline and critical 
steps in paragraph (h).
    (k) A fully-structured PFS Agreement that may be used for each 
Local CTE Site selected to receive transaction structuring technical 
assistance.
    (l) If development of a fully-structured PFS Agreement was not 
possible, a report outlining what the barriers were, what lessons were 
learned, and recommendations to either prepare the site for PFS 
implementation or viable alternatives to PFS.
    Priority: This notice includes one absolute priority. We are 
establishing this priority for the FY 2016 grant competition, and any 
subsequent year in which we make awards from the list of unfunded 
applications from this competition, in accordance with section 
437(d)(1) of the General Education Provisions Act (GEPA), 20 U.S.C. 
1232(d)(1).
    Absolute Priority: This priority is an absolute priority. Under 34 
CFR 75.105(c)(2)(i), we consider only applications that meet this 
absolute priority.
    This priority is:
    Cash or In-Kind Matching: To meet this priority an applicant must 
provide a 10 percent Cash or In-Kind Match of the total amount of the 
grant. Cash or In-Kind matching will increase overall resources and 
enhance broad-based support for the CTE PFS TA Program. Applicants must 
verify that they will provide a 10 percent Cash or In-Kind Match of the 
total amount of the grant by submitting: (1) A letter of intent with 
their application; and (2) a letter of commitment that must be received 
no later than 4:30:00 p.m., Washington, DC time September 15, 2106 in a 
PDF (Portable Document) read-only, non-modifiable format submitted by 
email with the subject line ``CTE PFS TA Program Matching Cash or In-
Kind Contributions--Letter of Commitment'', addressed to 
[email protected].
    The applicant must demonstrate matching by providing either or a 
combination of both:
    (a) Cash toward meeting their matching costs of the total award of 
the CTE PFS TA Program grant, by providing the following:
    (1) Documentation that the applicant's organization has either 
cash-on-hand or commitments from organizations for the matching funds; 
and
    (2) A statement from the Chief Financial Officer or other relevant 
officer that the applicant's organization has established a reserve of 
committed funds for the CTE PFS Project.
    (b) In-kind, non-cash contributions calculated consistent with 2 
CFR 200.306 toward meeting their matching costs of the total award of 
the CTE PFS TA Program grant by providing one or a combination of the 
following:
    (1) Evidence of commitments in the form of equipment, supplies, and 
other expendable property, and the value of goods and services directly 
benefiting and specifically identifiable to benefit the CTE PFS TA 
Program;
    (2) Evidence of third-party commitments for the monetary value of 
time contributed by professional and technical personnel and other 
skilled labor directly benefiting and specifically identifiable to 
benefit the CTE PFS TA Program; and/or
    (3) Evidence of other forms of non-cash third-party commitments 
directly benefiting and specifically identifiable to benefit the CTE 
PFS TA Program.
    Application Requirements: The applicant must:
    (a) Provide a Theory of Action for the CTE PFS TA Program for 
Underserved, High-Need Youth.
    (b) Provide a statement of organizational capacity to conduct PFS 
Feasibility Studies and transaction structuring, and to work with CTE, 
including:
    (1) A description of the project leadership and team, including 
qualifications and experience coordinating PFS programs and working 
with CTE; and
    (2) A description of the project leadership and team's experience 
selecting local sites that have a high likelihood of completing the 
Feasibility Analysis phase and moving to the transaction structuring 
phase.
    (c) Propose a preliminary plan for an Open and Fair Competition to 
select

[[Page 48772]]

Local CTE Sites to receive technical assistance.
    (d) Provide a preliminary work plan for conducting technical 
assistance for the Feasibility Analysis and transaction structuring 
phases at the four Local CTE Sites. While each Local CTE Site selected 
will have different needs and priorities, the applicant must describe 
the overall tasks and processes that will be undertaken in each of the 
Feasibility Study and transaction structuring phases.
    (e) Provide a budget and budget narrative for each of the two 
phases of the CTE PFS Project--Feasibility Study and transaction 
structuring, including any planned cash or in-kind match consistent 
with the absolute priority.
    Definitions: We are establishing these definitions for the FY 2016 
grant competition and any subsequent year in which we make awards from 
the list of unfunded applications from this competition, in accordance 
with section 437(d)(1) of the General Education Provisions Act (GEPA), 
20 U.S.C. 1232(d)(1). The definition of ``Local Government'' is from 
the Uniform Administrative Requirements, Cost Principles and Audit 
Requirements For Federal Awards at 2 CFR 200.64; the definitions of 
``Logic Model,'' ``Strong Theory,'' and ``Theory of Action'' are from 
Education Department General Administrative Regulations (EDGAR) at 34 
CFR 77.1(c); the definition of ``State'' is from Sec. 3(30) of Perkins 
IV; and the definition of ``Tribal Government'' is from Sec. 3 of the 
Alaska Native Claims Settlement Act, 43 U.S.C. 1602(c). This 
competition uses the following definitions for the key terms included 
in this notice:
    Benefits means fiscal and other value to the public sector and 
society as a result of achieving the Outcome Measures through the 
implementation of the intervention for Underserved, High-Need Youth. 
Benefits may include cost savings, cost avoidance, cost-effectiveness, 
and positive societal benefits.
    Cost-Benefit Analysis means an analysis that compares the costs of 
an intervention (for example) with the Benefits that will result from 
achieving the Outcome Measures, including a framework and description 
of the process used for estimating Benefits that would result from 
implementation of the evidence-based CTE program for Underserved, High-
Need Youth.
    CTE Pay for Success (CTE PFS) Agreement means a multiparty 
agreement: (1) Which, when executed, delivers or scales an innovative 
and Evidence-based Intervention intended to improve one or more 
outcomes, and in which ultimate payment to the Local CTE Site is made 
only if the outcome(s) is achieved at predetermined target levels, as 
documented by an Independent Evaluator, and (2) to which the following 
entities are signatories: (i) Local CTE Site(s); (ii) Outcomes 
Payor(s); and may include (iii) Intermediary/project coordinator or 
legal entity managing this Agreement created by the Intermediary.
    CTE Pay for Success (CTE PFS) Partnership includes a public or 
private entity that pays for outcomes; an Intermediary; and an 
Independent Evaluator. A CTE PFS Partnership may also include one or 
more Local CTE Sitesand Investor(s).
    Evidence-based Interventions are those which have objective levels 
of research support consistent with the guidelines established by the 
Department's What Works Clearinghouse.
    Feasibility Study means a written report assessing the suitability 
of an intervention for PFS. A Feasibility Study includes, at a 
minimum--
    (a) A description of the High-Quality CTE program model to be 
implemented through PFS that includes, at a minimum, how the 
intervention is likely to improve student outcomes, based on 
quantitative, qualitative, or theoretical evidence; the goals, 
objectives, and outcomes to be achieved by the proposed CTE program 
which are clearly specified and measurable and will demonstrate student 
success; and how the intervention is appropriate to, and will 
successfully address, the needs of Underserved, High-Need Youth;
    (b) Identification of one or more clearly specified and measurable 
Outcome Measures;
    (c) A Cost-Benefit Analysis;
    (d) Any statutory, legal or other barriers to implementing PFS and 
how they will be addressed; and
    (e) Identification of potential sources of Outcomes Payments from a 
government entity or other sources.
    Financial Model means a quantitative model that shows public sector 
value (or value to other non-governmental outcomes payors), including 
cost savings, cost avoidance or efficiency, and societal benefit and 
links the costs of implementation of the CTE PFS Project that are 
covered, in whole or in part, by the Investors to the amounts and 
timing of Outcomes Payments that are made by a government entity.
    Fiscal Agent is the entity that will be fiscally responsible for 
the grant award. It may be the Intermediary or a partner.
    Grantee refers to the Intermediary that is awarded the grant for 
the CTE PFS TA Program, consistent with the definition provided in this 
notice.
    High-Quality Career and Technical (CTE) Program means a program 
that--
    (a) Supports career pathways in in-demand industry sectors and 
occupations and that provide opportunities for students to prepare for 
college and careers;
    (b) Provides students with information about occupations in in-
demand industry sectors or occupations and may offer career exploration 
activities as early as seventh grade;
    (c) Offers a non-duplicative, structured sequence of courses that 
begin at the secondary level and lead, as applicable, to an industry-
recognized credential (in sectors where those credentials exist and are 
appropriate) and to a postsecondary certificate or degree that is 
needed for placement in an in-demand occupation that leads to economic 
self-sufficiency;
    (d) Provides students with the academic, employability, and 
technical, skills that employers require for entry into occupations in 
in-demand industry sectors or occupations;
    (e) Offers opportunities for students to earn academic credit and 
postsecondary credit for completing high school career and technical 
education courses;
    (f) Provides all participating students with work-based learning;
    (g) Provides supplemental services to participating students who 
are members of underserved populations and provides support services to 
all participating students to ensure that all students have equitable 
access to career and technical education programs, in addition to 
equitable opportunities to participate and succeed in these programs; 
and
    (h) Offers opportunities for participating students to develop 
leadership skills.
    High-Quality Pay for Success (PFS) Project means a PFS Project that 
includes:
    (a) A plan for addressing a well-defined problem and the needs of 
an associated target population;
    (b) A service delivery strategy that is managed, coordinated, and 
guided by the Local CTE Site, is flexible and adaptive to the target 
problem and population, and has a robust, rigorous evidence base or a 
compelling theory of change with pre- and post-intervention outcomes;
    (c) One or more well-defined, achievable potential outcome 
target(s) and associated payments that are a significant improvement on 
the current condition of the target population and have been agreed to 
by all required project partners;

[[Page 48773]]

    (d) A plan for Rigorous Evaluation;
    (e) A financial model that shows public sector value (or value to 
other non-governmental outcomes payors), including cost savings, cost 
avoidance or efficiency, and societal benefit and tracks effects of the 
project on relevant Federal, State, and local funding sources;
    (f) A commitment from an individual or entity to act as an outcomes 
payor (whose Outcomes Payments may be directed to Investors if they 
have covered, in part or in whole, costs associated with delivering the 
intervention);
    (g) If needed, a binding commitment of funds from one or more 
independent Investors to cover all operating costs of the intervention, 
including administrative and overhead costs of any intermediary; and
    (h) A legal agreement and any associated necessary agreements that 
incorporate all elements above.
    Independent Evaluator means an independent entity that rigorously 
evaluates whether the intervention achieved the outcome(s) sought.
    Independent Investor means an individual, entity, or group thereof 
that provides upfront capital to cover the operating costs and other 
associated costs, in part or whole, of the intervention delivered by 
the Local CTE Site and is not involved in the design or implementation 
of the PFS CTE project or has a stake in the results from the 
evaluation.
    Intermediary is a technical assistance entity that facilitates and 
manages the PFS TA project and contracting process. Under this program 
the Intermediary serves as the project facilitator between the parties 
in the first two phases of the PFS project, Feasibility Study and 
transaction structuring. Responsibilities may include but are not 
limited to: coordinating the development and execution of legal 
agreements, building a Financial Model to guide the terms of the legal 
agreements, and raising capital from Investors.
    Investor means an individual, entity, or group thereof that 
provides upfront capital to cover the operating costs and other 
associated costs, in part or whole, of the CTE intervention delivered 
by the Local CTE Sites.
    Local CTE Site means an eligible recipient under section 3(14) of 
Perkins IV. Section 3(14) defines ``eligible recipient'' as: ``(A) a 
local educational agency (including a public charter school that 
operates as a local educational agency), an area career and technical 
education school, an educational service agency, or a consortium, 
eligible to receive assistance under section 131; or (B) an eligible 
institution or consortium of eligible institutions eligible to receive 
assistance under section 132.'' The Local CTE Site is the service 
provider which may include other contractor interventions.
    Local Government means any unit of government within a State, 
including a--
    (a) County;
    (b) Borough;
    (c) Municipality;
    (d) City;
    (e) Town;
    (f) Township;
    (g) Parish;
    (h) Local public authority, including any public housing agency 
under the United States Housing Act of 1937;
    (i) Special district;
    (j) School district;
    (k) Intrastate district;
    (l) Council of governments, whether or not incorporated as a 
nonprofit corporation under State law; and
    (m) Any other agency or instrumentality of a multi-, regional, or 
intra-State or local government. (See 2 CFR 200.64).
    Logic Model (also referred to as Theory of Action) means a well-
specified conceptual framework that identifies key components of the 
proposed process, product, strategy, or practice (i.e., the active 
``ingredients'' that are hypothesized to be critical to achieving the 
relevant outcomes) and describes the relationships among the key 
components and outcomes, theoretically and operationally. See EDGAR at 
34 CFR 77.1(c).
    Open and Fair Competition means a recruitment and selection process 
that is free of organizational conflicts of interest as well as 
noncompetitive practices among applicants that may restrict or 
eliminate competition or otherwise restrain trade.
    Outcome Measure means an indicator of student success on which the 
program's impact will be calculated. It is determined using relevant 
program data and has defined units of measurement by which the impact 
can be tracked.
    Outcomes Payments means, per the terms of the CTE PFS Agreement, 
payments that cover repayment of the principal investment and a return 
in the case that: (1) An Investor has covered part or all of the costs 
of service delivery and other associated costs, and (2) outcomes have 
been achieved according to an Independent Evaluator.
    Payment Plan means a written plan that describes the proposed 
payment arrangement between the Investors, and outcomes payor and must 
include the timelines and payment amounts for the duration of the CTE 
PFS Project and the corresponding Outcome Measure that triggers the 
Outcomes Payment.
    Rigorous Evaluation means an evaluation that will, if well-
implemented, produce evidence about the project's effectiveness that 
would meet the What Works Clearinghouse Evidence Standards without 
reservations or, when random assignment is not feasible, would meet 
What Works Clearinghouse Evidence Standards with reservations.
    Service Delivery Model means a CTE program and model that is 
evidence-based with a track record of success or supported by Strong 
Theory that will serve Underserved, High-Need Youth in the Local CTE 
Site, including the CTE program models cited in the Background section 
of this notice.
    State The term `State,' unless otherwise specified, means each of 
the several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, and each outlying area. See Sec. 3(30) of 
Perkins IV.
    Strong Theory means a rationale for the proposed process, product, 
strategy, or practice that includes a Logic Model. See EDGAR at 34 CFR 
77.1(c).
    Theory of Action (also referred to as Logic Model) means a well-
specified conceptual framework that identifies key components of the 
proposed process, product, strategy, or practice (i.e., the active 
``ingredients'' that are hypothesized to be critical to achieving the 
relevant outcomes) and describes the relationships among the key 
components and outcomes, theoretically and operationally. See EDGAR at 
34 CFR 77.1(c).
    Tribal Government means the governing body or a governmental agency 
of any Indian tribe, band, nation, or other organized group or 
community (including any native village as defined in Sec. 3 of the 
Alaska Native Claims Settlement Act, 43 U.S.C. 1602(c)) certified by 
the Secretary of the Interior as eligible for the special programs and 
services provided through the Bureau of Indian Affairs.
    Underserved, High-Need Youth refers to individuals who are at risk 
of educational failure or otherwise in need of special assistance and 
support. These individuals may include students described in section 
3(29) (Special Populations) of Perkins IV, as well as students who are 
living in poverty, attend high-minority schools, are far below grade 
level, have left school before receiving a regular high school diploma, 
are at risk of not graduating

[[Page 48774]]

with a diploma on time, are homeless, or have been incarcerated.
    What Works Clearinghouse Evidence Standards means the standards set 
forth in the What Works Clearinghouse Procedures and Standards Handbook 
(Version 3.0, March 2014), which can be found at the following URL 
address: http://ies.ed.gov/ncee/wwc/DocumentSum.aspx?sid=19.
    Waiver of Proposed Rulemaking: Under the Administrative Procedure 
Act, 5 U.S.C. 553, the Department generally offers interested parties 
the opportunity to comment on proposed priorities, definitions and 
other requirements. Section 437(d)(1) of the General Education 
Provisions Act (GEPA), however, allows the Secretary to exempt from 
rulemaking requirements regulations governing the first grant 
competition under a new or substantially revised program authority. 
This is the first grant competition for this program under section 
114(c)(1) of Perkins IV (20 U.S.C. 2324(c)(1)) and therefore qualifies 
for this exemption. In order to ensure timely grant awards, the 
Secretary has decided to forgo public comment on the priority, 
definitions, and other requirements under section 437(d)(1) of GEPA. 
The priority, definitions, and other requirements will apply to the FY 
2016 grant competition and any subsequent year in which we make awards 
from the list of unfunded applicants from this competition.
    Program Authority: 20 U.S.C. 2324.
    Applicable Regulations: (a) EDGAR in 34 CFR parts 75, 77, 81, 82, 
84, 86, 97, 98, and 99. (b) The Office of Management and Budget 
Guidelines to Agencies on Governmentwide Debarment and Suspension 
(Nonprocurement) in 2 CFR part 180, as adopted and amended as 
regulations of the Department in 2 CFR part 3485. (c) The Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards in 2 CFR part 200, as adopted and amended in 2 CFR 
part 3474.

    Note: The regulations in 34 CFR part 86 apply to institutions of 
higher education only.

II. Award Information

    Type of Award: Discretionary grant (cooperative agreement).
    Estimated Available Funds: $2,000,000 to support technical 
assistance provided by an Intermediary to four Local CTE Sites during 
the Feasibility Analysis stage and three Local CTE Sites during the 
transaction structuring phase, if applicable.
    Estimated Range of Awards: $2,000,000.
    Estimated Average Size of Award: $2,000,000.
    Estimated Number of Awards: One.

    Note: The Department is not bound by any estimates in this 
notice.

    Project Period: 48 months. Applicants under this competition are 
required to provide detailed budget information for each of the years 
of this project and for the total grant.

III. Eligibility Information

    1. Eligible Applicants: Eligible applicants are:
    (a) Nonprofit organizations as defined in 2 CFR 200.70;
    (b) Public or private institutions of higher education as defined 
in section 101 of the Higher Education Act of 1965;
    (c) States, Local Governments, and Tribal Governments;
    (d) Consortia of the above entities; or
    (e) Partnerships/consortia of the above entities and a for-profit 
organization.
    For-profit organizations may not serve as the applicant or Fiscal 
Agent for the grant.
    2. Cost Sharing or Matching: The program requires cost sharing or 
matching.

IV. Application and Submission Information

    1. Address to Request Application Package: You can obtain an 
application package via the Internet or from the Education Publications 
Center (ED Pubs), or from the program office. To obtain a copy via the 
Internet, use the following address: www.ed.gov/fund/grant/apply/grantapps/index.html. To obtain a copy from ED Pubs, write, fax, or 
call the following: ED Pubs, U.S. Department of Education, P.O. Box 
22207, Alexandria, VA 22304. Telephone, toll free: 1-877-433-7827. FAX: 
(703) 605-6794. If you use a telecommunications device for the deaf 
(TDD) or a text telephone (TTY), call, toll free: 1-877-576-7734.
    You can contact ED Pubs at its Web site, also: www.EDPubs.gov or at 
its email address: [email protected].
    If you request an application package from ED Pubs, be sure to 
identify this program or competition as follows: CFDA number 84.051.
    To obtain a copy from the program office, contact the persons 
listed under FOR FURTHER INFORMATION CONTACT in section VII of this 
notice.
    Individuals with disabilities can obtain a copy of the application 
package in an accessible format (e.g., braille, large print, audiotape, 
or compact disc) by contacting the person or team listed under 
Accessible Format in section VIII of this notice.
    2.a. Content and Form of Application Submission: Requirements 
concerning the content of an application, together with the forms you 
must submit, are in the application package for this competition.
    Page Limit: The application narrative (Part III of the application) 
is where you, the applicant, address the selection criteria that 
reviewers use to evaluate your application. You must limit the 
application narrative to no more than 35 pages, using the following 
standards:
     A ``page'' is 8.5'' x 11'', on one side only, with 1'' 
margins at the top, bottom, and both sides.
     Double space (no more than three lines per vertical inch) 
all text in the application narrative, including titles, headings, 
footnotes, quotations, references, and captions, as well as all text in 
charts, tables, figures, and graphs.
     Use a font that is either 12 point or larger or no smaller 
than 10 pitch (characters per inch).
     Use one of the following fonts: Times New Roman, Courier, 
Courier New, or Arial. An application submitted in any other font 
(including Times Roman or Arial Narrow) will not be accepted.
    The page limit does not apply to Part I, the cover sheet; Part II, 
the budget section, including the narrative budget justification; Part 
IV, the assurances and certifications; the one-page abstract, or the 
resumes, bibliography, letters of support, or other appendices.
    Our reviewers will not read any pages of your application that 
exceed the page limit.
    2.b. Submission of Proprietary Information: Given the types of 
projects that may be proposed, your application may include business 
information that the applicant considers proprietary. The Department's 
regulations define ``business information'' in 34 CFR 5.11.
    Because we plan to make successful applications available to the 
public upon request, you may wish to request confidentiality of 
business information. Consistent with Executive Order 12600, please 
designate in your application any information that you feel is exempt 
from disclosure under Exemption 4 of the Freedom of Information Act. In 
the appropriate Appendix section of your application, under ``Other 
Attachments Form,'' please list the page number or numbers on which we 
can find this information. For additional information please see 34 CFR 
5.11(c).
    3. Submission Dates and Times:
    Applications Available: July 26, 2016.
    Date of Pre-Application Meeting: August 2, 2016.

[[Page 48775]]

    Deadline for Transmittal of Applications: August 25, 2016.
    Applications for grants under this competition must be submitted 
electronically using the Grants.gov Apply site (Grants.gov). For 
information (including dates and times) about how to submit your 
application electronically, or in paper format by mail or hand delivery 
if you qualify for an exception to the electronic submission 
requirement, please refer to Other Submission Requirements in section 
IV of this notice.
    We do not consider an application that does not comply with the 
deadline requirements.
    Individuals with disabilities who need an accommodation or 
auxiliary aid in connection with the application process should contact 
the person listed under FOR FURTHER INFORMATION CONTACT in section VII 
of this notice. If the Department provides an accommodation or 
auxiliary aid to an individual with a disability in connection with the 
application process, the individual's application remains subject to 
all other requirements and limitations in this notice.
    4. Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79. Information about 
Intergovernmental Review of Federal Programs under Executive Order 
12372 is in the application package for this program. However, under 34 
CFR 79.8(a), we waive Intergovernmental Review in order to make an 
award by September 30, 2016.
    5. Funding Restrictions: We reference regulations outlining funding 
restrictions in the Applicable Regulations section of this notice.
    6. Data Universal Numbering System Number, Taxpayer Identification 
Number, and System for Award Management: To do business with the 
Department of Education, you must--
    a. Have a Data Universal Numbering System (DUNS) number and a 
Taxpayer Identification Number (TIN);
    b. Register both your DUNS number and TIN with the System for Award 
Management (SAM) (formerly the Central Contractor Registry (CCR)),the 
Government's primary registrant database;
    c. Provide your DUNS number and TIN on your application; and
    d. Maintain an active SAM registration with current information 
while your application is under review by the Department and, if you 
are awarded a grant, during the project period.
    You can obtain a DUNS number from Dun and Bradstreet at the 
following Web site: http://fedgov.dnb.com/webform. A DUNS number can be 
created within one to two business days.
    If you are a corporate entity, agency, institution, or 
organization, you can obtain a TIN from the Internal Revenue Service. 
If you are an individual, you can obtain a TIN from the Internal 
Revenue Service or the Social Security Administration. If you need a 
new TIN, please allow two to five weeks for your TIN to become active.
    The SAM registration process can take approximately seven business 
days, but may take upwards of several weeks, depending on the 
completeness and accuracy of the data entered into the SAM database by 
an entity. Thus, if you think you might want to apply for Federal 
financial assistance under a program administered by the Department, 
please allow sufficient time to obtain and register your DUNS number 
and TIN. We strongly recommend that you register early.

    Note: Once your SAM registration is active, you will need to 
allow 24 to 48 hours for the information to be available in 
Grants.gov and before you can submit an application through 
Grants.gov.

    If you are currently registered with SAM, you may not need to make 
any changes. However, please make certain that the TIN associated with 
your DUNS number is correct. Also note that you will need to update 
your registration annually. This may take three or more business days.
    Information about SAM is available at www.SAM.gov. To further 
assist you with obtaining and registering your DUNS number and TIN in 
SAM or updating your existing SAM account, we have prepared a SAM.gov 
Tip Sheet, which you can find at: www2.ed.gov/fund/grant/apply/sam-faqs.html.
    In addition, if you are submitting your application via Grants.gov, 
you must (1) be designated by your organization as an Authorized 
Organization Representative (AOR); and (2) register yourself with 
Grants.gov as an AOR. Details on these steps are outlined at the 
following Grants.gov Web page: www.grants.gov/web/grants/register.html.
    7. Other Submission Requirements: Applications for grants under 
this program must be submitted electronically unless you qualify for an 
exception to this requirement in accordance with the instructions in 
this section.
    a. Electronic Submission of Applications.
    Applications for grants under the Providing High-Quality Career and 
Technical Education Programs for Underserved, High-Need Youth through a 
Pay For Success Model, CFDA number 84.051, must be submitted 
electronically using the Governmentwide Grants.gov Apply site at 
www.Grants.gov. Through this site, you will be able to download a copy 
of the application package, complete it offline, and then upload and 
submit your application. You may not email an electronic copy of a 
grant application to us.
    We will reject your application if you submit it in paper format 
unless, as described elsewhere in this section, you qualify for one of 
the exceptions to the electronic submission requirement and submit, no 
later than two weeks before the application deadline date, a written 
statement to the Department that you qualify for one of these 
exceptions. Further information regarding calculation of the date that 
is two weeks before the application deadline date is provided later in 
this section under Exception to Electronic Submission Requirement.
    You may access the electronic grant application for the Providing 
High-Quality Career and Technical Education Programs for Underserved, 
High-Need Youth through a Pay For Success Model at www.Grants.gov. You 
must search for the downloadable application package for this program 
by the CFDA number 84.051.
    Please note the following:
     When you enter the Grants.gov site, you will find 
information about submitting an application electronically through the 
site, as well as the hours of operation.
     Applications received by Grants.gov are date and time 
stamped. Your application must be fully uploaded and submitted and must 
be date and time stamped by the Grants.gov system no later than 4:30:00 
p.m., Washington, DC time, on the application deadline date. Except as 
otherwise noted in this section, we will not accept your application if 
it is received--that is, date and time stamped by the Grants.gov 
system--after 4:30:00 p.m., Washington, DC time, on the application 
deadline date. We do not consider an application that does not comply 
with the deadline requirements. When we retrieve your application from 
Grants.gov, we will notify you if we are rejecting your application 
because it was date and time stamped by the Grants.gov system after 
4:30:00 p.m., Washington, DC time, on the application deadline date.
     The amount of time it can take to upload an application 
will vary depending on a variety of factors, including the size of the 
application and

[[Page 48776]]

the speed of your Internet connection. Therefore, we strongly recommend 
that you do not wait until the application deadline date to begin the 
submission process through Grants.gov.
     You should review and follow the Education Submission 
Procedures for submitting an application through Grants.gov that are 
included in the application package for this competition to ensure that 
you submit your application in a timely manner to the Grants.gov 
system. You can also find the Education Submission Procedures 
pertaining to Grants.gov under News and Events on the Department's G5 
system home page at www.G5.gov. In addition, for specific guidance and 
procedures for submitting an application through Grants.gov, please 
refer to the Grants.gov Web site at: www.grants.gov/web/grants/applicants/apply-for-grants.html.
     You will not receive additional point value because you 
submit your application in electronic format, nor will we penalize you 
if you qualify for an exception to the electronic submission 
requirement, as described elsewhere in this section, and submit your 
application in paper format.
     You must submit all documents electronically, including 
all information you typically provide on the following forms: the 
Application for Federal Assistance (SF 424), the Department of 
Education Supplemental Information for SF 424, Budget Information--Non-
Construction Programs (ED 524), and all necessary assurances and 
certifications.
     You must upload any narrative sections and all other 
attachments to your application as files in a read-only, non-modifiable 
Portable Document Format (PDF). Do not upload an interactive or 
fillable PDF file. If you upload a file type other than a read-only, 
non-modifiable PDF (e.g., Word, Excel, WordPerfect, etc.) or submit a 
password-protected file, we will not review that material. Please note 
that this could result in your application not being considered for 
funding because the material in question--for example, the project 
narrative--is critical to a meaningful review of your proposal. For 
that reason it is important to allow yourself adequate time to upload 
all material as PDF files. The Department will not convert material 
from other formats to PDF.
     Your electronic application must comply with any page-
limit requirements described in this notice.
     Prior to submitting your electronic application, you may 
wish to print a copy of it for your records.
    After you electronically submit your application, you will receive 
from Grants.gov an automatic notification of receipt that contains a 
Grants.gov tracking number. This notification indicates receipt by 
Grants.gov only, not receipt by the Department. Grants.gov will also 
notify you automatically by email if your application met all the 
Grants.gov validation requirements or if there were any errors (such as 
submission of your application by someone other than a registered 
Authorized Organization Representative, or inclusion of an attachment 
with a file name that contains special characters). You will be given 
an opportunity to correct any errors and resubmit, but you must still 
meet the deadline for submission of applications.
    Once your application is successfully validated by Grants.gov, the 
Department will retrieve your application from Grants.gov and send you 
an email with a unique PR/Award number for your application.
    These emails do not mean that your application is without any 
disqualifying errors. While your application may have been successfully 
validated by Grants.gov, it must also meet the Department's application 
requirements as specified in this notice and in the application 
instructions. Disqualifying errors could include, for instance, failure 
to upload attachments in a read-only, non-modifiable PDF; failure to 
submit a required part of the application; or failure to meet applicant 
eligibility requirements. It is your responsibility to ensure that your 
submitted application has met all of the Department's requirements.
     We may request that you provide us original signatures on 
forms at a later date.
    Application Deadline Date Extension in Case of Technical Issues 
with the Grants.gov System: If you are experiencing problems submitting 
your application through Grants.gov, please contact the Grants.gov 
Support Desk, toll free, at 1-800-518-4726. You must obtain a 
Grants.gov Support Desk Case Number and must keep a record of it.
    If you are prevented from electronically submitting your 
application on the application deadline date because of technical 
problems with the Grants.gov system, we will grant you an extension 
until 4:30:00 p.m., Washington, DC time, the following business day to 
enable you to transmit your application electronically or by hand 
delivery. You also may mail your application by following the mailing 
instructions described elsewhere in this notice.
    If you submit an application after 4:30:00 p.m., Washington, DC 
time, on the application deadline date, please contact the person 
listed under FOR FURTHER INFORMATION CONTACT in section VII of this 
notice and provide an explanation of the technical problem you 
experienced with Grants.gov, along with the Grants.gov Support Desk 
Case Number. We will accept your application if we can confirm that a 
technical problem occurred with the Grants.gov system and that that 
problem affected your ability to submit your application by 4:30:00 
p.m., Washington, DC time, on the application deadline date. The 
Department will contact you after a determination is made on whether 
your application will be accepted.

    Note: The extensions to which we refer in this section apply 
only to the unavailability of, or technical problems with, the 
Grants.gov system. We will not grant you an extension if you failed 
to fully register to submit your application to Grants.gov before 
the application deadline date and time or if the technical problem 
you experienced is unrelated to the Grants.gov system.

    Exception to Electronic Submission Requirement: You qualify for an 
exception to the electronic submission requirement, and may submit your 
application in paper format, if you are unable to submit an application 
through the Grants.gov system because--
     You do not have access to the Internet; or
     You do not have the capacity to upload large documents to 
the Grants.gov system; and
     No later than two weeks before the application deadline 
date (14 calendar days or, if the fourteenth calendar day before the 
application deadline date falls on a Federal holiday, the next business 
day following the Federal holiday), you mail or fax a written Statement 
to the Department, explaining which of the two grounds for an exception 
prevents you from using the Internet to submit your application.
    If you mail your written Statement to the Department, it must be 
postmarked no later than two weeks before the application deadline 
date. If you fax your written Statement to the Department, we must 
receive the faxed Statement no later than two weeks before the 
application deadline date.
    Address and mail or fax your Statement to: Len Lintner, U.S. 
Department of Education, 400 Maryland Avenue SW., PCP, Room 11090, 
Washington, DC 20202-7241. FAX: (202) 245-7170.
    Your paper application must be submitted in accordance with the 
mail or hand delivery instructions described in this notice.

[[Page 48777]]

    b. Submission of Paper Applications by Mail.
    If you qualify for an exception to the electronic submission 
requirement, you may mail (through the U.S. Postal Service or a 
commercial carrier) your application to the Department. You must mail 
the original and two copies of your application, on or before the 
application deadline date, to the Department at the following address: 
U.S. Department of Education, Application Control Center, Attention: 
(CFDA Number 84.051) LBJ Basement Level 1, 400 Maryland Avenue SW., 
Washington, DC 20202-4260.
    You must show proof of mailing consisting of one of the following:
    (1) A legibly dated U.S. Postal Service postmark.
    (2) A legible mail receipt with the date of mailing stamped by the 
U.S. Postal Service.
    (3) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    (4) Any other proof of mailing acceptable to the Secretary of the 
U.S. Department of Education.
    If you mail your application through the U.S. Postal Service, we do 
not accept either of the following as proof of mailing:
    (1) A private metered postmark.
    (2) A mail receipt that is not dated by the U.S. Postal Service If 
your application is postmarked after the application deadline date, we 
will not consider your application.

    Note: The U.S. Postal Service does not uniformly provide a dated 
postmark. Before relying on this method, you should check with your 
local post office.

    c. Submission of Paper Applications by Hand Delivery.
    If you qualify for an exception to the electronic submission 
requirement, you (or a courier service) may deliver your paper 
application to the Department by hand. You must deliver the original 
and two copies of your application by hand, on or before the 
application deadline date, to the Department at the following address: 
U.S. Department of Education, Application Control Center, Attention: 
(CFDA Number 84.051)) 550 12th Street SW., Room 7039 Potomac Center 
Plaza, Washington, DC 20202-4260.
    The Application Control Center accepts hand deliveries daily 
between 8:00 a.m. and 4:30:00 p.m., Washington, DC time, except 
Saturdays, Sundays, and Federal holidays.

    Note for Mail or Hand Delivery of Paper Applications: If you 
mail or hand deliver your application to the Department--
    (1) You must indicate on the envelope and--if not provided by 
the Department--in Item 11 of the SF 424 the CFDA number, including 
suffix letter, if any, of the competition under which you are 
submitting your application; and
    (2) The Application Control Center will mail to you a 
notification of receipt of your grant application. If you do not 
receive this notification within 15 business days from the 
application deadline date, you should call the U.S. Department of 
Education Application Control Center at (202) 245-6288.

V. Application Review Information

    1. Selection Criteria: The maximum score for all the selection 
criteria is 160 points. In addressing the criteria, applicants are 
encouraged to make explicit connections to the absolute priority and 
the program requirements and application requirements listed elsewhere 
in this notice. The selection criteria are as follows:
    (a) Need for project. (Up to a total of 20 points) The Secretary 
considers the need for the proposed project. In determining the need, 
the Secretary considers--
    (1) The magnitude of the need for the services to be provided or 
the activities to be carried out by the Intermediary to ensure 
Underserved, High-Need Youth are served by the Local CTE Sites (up to 
10 points); and
    (2) The likelihood that the proposed project will result in system 
change or improvement (up to 10 points);
    (b) Quality of the Proposed Local CTE Site Selection Process. (Up 
to a total of 30 points) The Secretary considers the quality of the 
selection process for Local CTE Sites that will receive technical 
assistance from the Intermediary. In determining the quality of the 
selection process, the Secretary considers:
    (1) The extent to which the selection process is open and fair (up 
to 5 points);
    (2) The extent to which the applicant clearly defines the goals and 
objectives of the competition and the subsequent delivery of services 
(up to 5 points);
    (3) The extent to which the selection criteria for the competition 
is expected to result in Local CTE Sites from a mix of geographic 
locations--urban, suburban, and rural (up to 5 points);
    (4) The extent to which the selection criteria for the competition 
is expected to enhance the likelihood that the Local CTE Sites will 
proceed from Feasibility Study to transaction structuring (up to 5 
points); and
    (5) The extent to which the selection criteria for the competition 
identifies and prioritizes addressing specific gaps or weaknesses in 
CTE services, infrastructure, or opportunities that have been 
identified and will be addressed by the proposed project, including the 
nature and magnitude of those gaps or weaknesses (up to 10 points).
    (c) Quality of the Proposed Work Plan for Feasibility Study and 
Transaction Structuring. (Up to a total of 30 points) The Secretary 
considers the quality of the work plan for the proposed project. In 
determining the quality of the work plan for the proposed project, the 
Secretary considers--
    (1) The adequacy of the work plan to achieve the purposes of the 
proposed project on time and within budget, including clearly defined 
responsibilities, timelines, and milestones for accomplishing project 
tasks (up to 15 points); and
    (2) The extent to which the time commitments of the project 
director and other key project personnel are appropriate and adequate 
to meet the objectives of the proposed project (up to 15 points).
    (d) Adequacy of Resources. (Up to 10 points) The Secretary 
considers the adequacy of resources for the proposed project. In 
determining the adequacy of resources for the proposed project, the 
Secretary considers the extent to which the costs are reasonable in 
relation to the objectives, design, and potential significance for the 
proposed project including resources committed to the Feasibility Study 
and transaction structuring phases, and all project deliverables;
    (e) Organization Capacity and Experience. (up to a total of 70 
points) The Secretary considers the organizational capacity and 
experience of the applicant. In determining the organizational capacity 
and experience of the applicant, the Secretary considers:
    (1) The extent to which the applicant demonstrates recent and 
ongoing experience in performing the same or similar PFS activities as 
those required in this competition (the applicant may provide brief 
examples of PFS technical assistance or negotiations facilitated by the 
applicant) (up to 10 points);
    (2) The extent to which the applicant can demonstrate its technical 
ability carrying out prior Feasibility Studies and transaction 
structuring activities (up to 5 points);
    (3) The extent to which the applicant demonstrates experience in 
holding Open and Fair Competitions to select local sites for technical 
assistance (up to 5 points);
    (4) The extent to which the applicant demonstrates experience in 
choosing local sites for a Feasibility Study that have subsequently 
progressed to transaction structuring (up to 5 points);
    (5) The extent to which the applicant demonstrates its experience 
with

[[Page 48778]]

coordinating and managing PFS contracts, Financial Modeling and 
estimation of return on investment and Cost-Benefit Analysis, marketing 
PFS contracts to potential Investors, raising capital, and developing 
contracts and related supplementary documentation (up to 5 points);
    (6) The extent to which the applicant has experience with 
selecting, coordinating, and managing a third-party evaluator of a PFS 
project, including coordinating between an evaluator and other project 
stakeholders to ensure that the evaluation and service delivery designs 
are compatible (up to 5 points);
    (7) The extent to which the applicant has knowledge about CTE 
programs, and experience in providing technical assistance on effective 
CTE programs (up to 5 points);
    (8) The extent to which the applicant presents a qualified roster 
of staff members, including management staff, board members, and 
partners that have demonstrated experience, capacity and a track record 
to effectively implement the proposed project, including at least one 
staff member with experience in developing and implementing evidence-
based CTE programs (up to 5 points);
    (9) The extent to which the applicant describes the roles and 
responsibilities of each team member, ensuring all key facets of the 
project have clear owners with appropriate experience (up to 5 points);
    (10) The extent to which the applicant identifies the proposed 
project lead(s) and demonstrates their expertise, based on past 
experience in PFS or similar social financing projects (up to 5 
points); and
    (11) The extent to which the applicant has experience with 
financial and project management (up to 5 points).
    (13) The extent to which the applicant has experience evaluating 
evidence and selecting evidence-based strategies (up to 5 points).
    (14) The extent to which the applicant has experience providing TA 
for carrying out quality data collection/matching and developing 
relevant, high-quality metrics for success (up to 5 points).
    2. Review and Selection Process: We remind potential applicants 
that in reviewing applications in any discretionary grant competition, 
the Secretary may consider, under 34 CFR 75.217(d)(3), the past 
performance of the applicant in carrying out a previous award, such as 
the applicant's use of funds, achievement of project objectives, and 
compliance with grant conditions. The Secretary may also consider 
whether the applicant failed to submit a timely performance report or 
submitted a report of unacceptable quality.
    In addition, in making a competitive grant award, the Secretary 
also requires various assurances including those applicable to Federal 
civil rights laws that prohibit discrimination in programs or 
activities receiving Federal financial assistance from the Department 
of Education (34 CFR 100.4, 104.5, 106.4, 108.8, and 110.23).
    3. Risk Assessment and Special Conditions: Consistent with 2 CFR 
200.205, before awarding grants under this competition the Department 
conducts a review of the risks posed by applicants. Under 2 CFR 
3474.10, the Secretary may impose special conditions and, in 
appropriate circumstances, high-risk conditions on a grant if the 
applicant or Grantee is not financially stable; has a history of 
unsatisfactory performance; has a financial or other management system 
that does not meet the standards in 2 CFR part 200, subpart D; has not 
fulfilled the conditions of a prior grant; or is otherwise not 
responsible.

VI. Award Administration Information

    1. Award Notices: If your application is successful, we notify your 
U.S. Representative and U.S. Senators and send you a Grant Award 
Notification (GAN); or we may send you an email containing a link to 
access an electronic version of your GAN. We may notify you informally, 
also.
    If your application is not evaluated or not selected for funding, 
we notify you.
    2. Administrative and National Policy Requirements: We identify 
administrative and national policy requirements in the application 
package and reference these and other requirements in the Applicable 
Regulations section of this notice.
    We reference the regulations outlining the terms and conditions of 
an award in the Applicable Regulations section of this notice and 
include these and other specific conditions in the GAN. The GAN also 
incorporates your approved application as part of your binding 
commitments under the grant.
    3. Reporting: (a) If you apply for a grant under this competition, 
you must ensure that you have in place the necessary processes and 
systems to comply with the reporting requirements in 2 CFR part 170 
should you receive funding under the competition. This does not apply 
if you have an exception under 2 CFR 170.110(b).
    (b) At the end of your project period, you must submit a final 
performance report, including financial information, as directed by the 
Secretary. If you receive a multi-year award, you must submit an annual 
performance report that provides the most current performance and 
financial expenditure information as directed by the Secretary under 34 
CFR 75.118. The Secretary may also require more frequent performance 
reports under 34 CFR 75.720(c). For specific requirements on reporting, 
please go to www.ed.gov/fund/grant/apply/appforms/appforms.html.
    (c) Under 34 CFR 75.250(b), the Secretary may provide a grantee 
with additional funding for data collection analysis and reporting. In 
this case the Secretary establishes a data collection period.
    4. Performance Measures: The Department has established the 
following Government Performance and Results Act of 1993 (GPRA) 
performance for the CTE PFS Project. Under GPRA, Federal departments 
and agencies must clearly describe the goals and objectives of their 
programs, identify resources and actions needed to accomplish these 
goals and objectives, develop a means of measuring progress made, and 
regularly report on their achievement. One important source of program 
information is the annual project evaluation conducted under individual 
grants. To determine the overall effectiveness of projects funded under 
this competition, the Grantee must be prepared to measure and report on 
the following measures of effectiveness:
    (a) The number and percentage of Local CTE Sites that have a 
complete Feasibility Study within 24 months of the project period.
    (b) The number and percentage of Feasibility Studies that conclude 
that CTE PFS approaches are viable or that identify feasible 
alternatives if PFS is not viable.
    (c) The number and percentage of successfully completed structured 
transactions within the project period that are ready to move to 
project implementation.
    These measures constitute the Department's indicators of success 
for this program. Consequently, we advise an applicant for a grant 
under this program to give careful consideration to these measures in 
conceptualizing the approach and evaluation for its proposed project. 
The Grantee will be required to provide, in its annual performance and 
final reports, data about its progress in meeting these measures.

VII. Agency Contact

FOR FURTHER INFORMATION CONTACT:  Len Lintner, U.S. Department of 
Education, 400 Maryland Avenue SW., Room PCP-

[[Page 48779]]

11090, Washington, DC 20202. Telephone: (202) 245-7741 or by email: 
[email protected].
    If you use a TDD or TTY, call the FRS, toll free, at 1-800-877-
8339.

VIII. Other Information

    Accessible Format: Individuals with disabilities can obtain this 
document and a copy of the application package in an accessible format 
(e.g., braille, large print, audiotape, or compact disc) on request to 
the program contact person listed under FOR FURTHER INFORMATION CONTACT 
in section VII of this notice.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.gpo.gov/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or Adobe Portable Document Format (PDF). To use PDF 
you must have Adobe Acrobat Reader, which is available free at the 
site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

Johan E. Uvin,
Deputy Assistant Secretary Delegated the Duties of the Assistant 
Secretary for Career, Technical, and Adult Education.
[FR Doc. 2016-17657 Filed 7-25-16; 8:45 am]
 BILLING CODE 4000-01-P