[Federal Register Volume 84, Number 227 (Monday, November 25, 2019)]
[Rules and Regulations]
[Pages 64738-64740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25441]
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DEPARTMENT OF LABOR
Employment and Training Administration
20 CFR Part 686
RIN 1205-AB96
Procurement Roles and Responsibilities for Job Corps Contracts
AGENCY: Employment and Training Administration, Labor.
ACTION: Final rule.
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SUMMARY: In this final rule, the Department of Labor (Department) makes
two procedural changes to its Workforce Innovation and Opportunity Act
(WIOA) Job Corps regulations to enable the Secretary to delegate
procurement authority as it relates to the development and issuance of
requests for proposals for the operation of Job Corps centers, outreach
and admissions, career transitional services, and other operational
support services. The Department is taking this procedural action to
align regulatory provisions with the relevant WIOA statutory language
and to provide greater flexibility for internal operations and
management of the Job Corps program.
DATES: This final rule will become effective on December 26, 2019.
FOR FURTHER INFORMATION CONTACT: Heidi M. Casta, Deputy Administrator,
Office of Policy Development and Research, U.S. Department of Labor,
200 Constitution Avenue NW, Room N-5641, Washington, DC 20210;
telephone (202) 693-3700 (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 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Department is amending two provisions of 20 CFR part 686, which
implements subtitle C of title I of WIOA. Through these amendments, the
Department is aligning these regulatory provisions with the language in
WIOA by broadening the authority to issue contract solicitations from
the Employment and Training Administration (ETA) to the Secretary of
Labor. The Department is making this procedural change to the WIOA
regulation to provide greater flexibility in the management and
operation of the Job Corps program by allowing the Secretary of Labor
to designate the component of the Department that is authorized to
issue solicitations for the operation of Job Corps centers, outreach
and admissions, career transitional services, and other operational
support services. This change will provide the Department with the
flexibility to more efficiently manage the Job Corps procurement
process, which will in turn allow greater economies of scale and
operational efficiencies. This rule is consistent with the President's
Management Agenda Cross-Agency Priority (CAP) Goal Number 5--Sharing
Quality Services. The Department is implementing this CAP, in part, via
the Department's Enterprise-Wide Shared Services Initiatives whose
primary goals are as follows:
1. Improve human resources efficiency, effectiveness, and
accountability;
2. Provide modern technology solutions that empower the DOL
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mission and serve the American public through collaboration and
innovation;
3. Maximize DOL's federal buying power through effective
procurement management; and
4. Safeguard fiscal integrity, and promote the effective and
efficient use of resources.
This rule will assist the Department's implementation of its
Enterprise-Wide Shared Services Initiative.
This rule is not an Executive Order 13771 regulatory action because
this rule is not significant under Executive Order 12866.
II. Summary of Final Rule
Sec. 147(a) of WIOA authorizes the Secretary of Labor to enter into
agreements with eligible entities to operate Job Corps centers and to
provide activities to a Job Corps center. Two provisions in the
regulation implementing subtitle C of Title I of WIOA implement section
147(a). Title 20 CFR 686.310(a) broadly states that the Secretary
selects eligible entities to operate contract centers on a competitive
basis in accordance with applicable statutes and regulations, and 20
CFR 686.340(a) states that the Secretary selects eligible entities to
provide outreach and admission, career transition, and operational
support services on a competitive basis in accordance with applicable
statutes and regulations. However, both provisions also specifically
require ETA to develop and issue solicitations for these Job Corps
contracts. These provisions are inconsistent with section 147(a) and
constrain the Department's ability to assign the authority to develop
and issue solicitations to whichever component of the agency determined
appropriate to further the important goals of selecting the appropriate
entities to support the Job Corps program.
This final rule amends Sec. Sec. 686.310(a) and 686.340(a) by
replacing ``ETA'' with ``the Secretary.'' Through this final rule, the
Department is aligning the text of sections 686.310(a) and 686.340(a)
with the statutory language in section 147(a) of WIOA, eliminating the
inconsistency between the regulation and the statute. This change
affords the Department greater flexibility to manage and oversee the
Job Corps procurement process in a manner that it determines
appropriate.
III. Discussion of Public Comments
The Department invited written comments on all aspects of the
proposed rule from interested parties for consideration prior to
issuing a final rule (84 FR 45449). The written comment period closed
on September 30, 2019. The Department received two significant adverse
comments. The Department also received one comment that was outside the
scope of the rulemaking.
One commenter that represents a national association expressed a
concern that decentralization of procurement authority outside of ETA
would result in ``the further separation of Job Corps' programmatic,
budget, and procurement authorities which could negatively impact Job
Corps center operations, students, and taxpayers.'' The commenter
opined that the proposal, if implemented, would place Job Corps'
procurement function under a different agency, with different political
leadership, different goals and priorities, and different measures of
performance success. This, according to the commenter, could
potentially negatively impact Job Corps students. The commenter
suggested that because of the interrelation between program, budget,
and contracting, all Job Corps contracting functions should be
consolidated under a single political official or, ideally, within the
Office of Job Corps, but regardless suggested that the Department
establish performance measures for contracting officials related to
student outcomes.
The second commenter opined that the proposed change would affect
how contracts for outreach and admission, career transition and
operational services would be awarded. Specifically, the commenter
expressed concern that the change would politicize the awarding of Job
Corps contracts, in contravention of OMB's Uniform Guidance, rather
than awards being made on the basis of an offeror's technical ability
to provide the services.
No change to the proposal is being made in response to these
comments. This change aligns the Job Corps regulation with the
statutory language and affords the Department greater flexibility in
managing the Job Corps procurement functions. The Department disagrees
that this change will adversely impact the operation of the Job Corps
program. The Department and ETA will continue to support Job Corps and
its programmatic needs and interests, including ensuring that there is
appropriate coordination and consultation during the various phases of
the procurement process. ETA program and budget staff will continue to
work closely with the assigned procurement staff to develop and review,
as appropriate, solicitations for Job Corps operation and support
contracts. Similarly, these changes do not involve or limit the
evaluation of proposals or quotations submitted in response to
solicitations. Additionally, the Department disagrees that this change
will politicize the awarding of Job Corps contracts. The Department
will continue to conduct all Job Corps procurements in accordance with
the relevant provisions of the Federal Acquisition Regulations, which,
contrary to the commenter's assertion, governs the development and
award of all Job Corps contract solicitations and awards, as well as in
compliance with all of the WIOA statutory and regulatory requirements
and the evaluation and selection criteria announced in Department
solicitations. Regarding the commenter's suggestion to establish
performance measures for contracting officials related to student
outcomes, the Department does not tie performance measures for
contracting officials related to either formation or administration of
contracts to program outcomes. Successful program outcomes are the
responsibility of the office administering the program, in this case
the Office of Job Corps, and the contractors directly serving students.
Therefore, the Department is finalizing the regulatory text as
proposed.
IV. Rulemaking Analyses and Notices
Executive Orders 12866 (Regulatory Planning and Review) and 13563
(Improving Regulation and Regulatory Review)
Executive Order 12866 requires that regulatory agencies assess both
the costs and benefits of significant regulatory actions. Under the
Executive Order, a ``significant regulatory action'' is one meeting any
of a number of specified conditions, including the following: Having an
annual effect on the economy of $100 million or more; creating a
serious inconsistency or interfering with an action of another agency;
materially altering the budgetary impact of entitlements or the rights
of entitlement recipients, or raising novel legal or policy issues. The
Department has determined that this final rule is not a ``significant''
regulatory action and a cost-benefit and economic analysis is not
required. This regulation merely makes a procedural change to allow
flexibility to manage and oversee the Job Corps procurement process in
a manner that the Department determines appropriate.
Executive Order 13563 directs agencies to assess all costs and
benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health
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and safety effects, distributive impacts, and equity). Executive Order
13563 emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility to
minimize burden.
This rule makes only a procedural change to allow flexibility to
manage and oversee the Job Corps procurement process in a manner that
the Department determines appropriate. Therefore, this rule is not
expected to have any regulatory impacts.
Regulatory Flexibility Act/Small Business Regulatory Enforcement
Fairness Act
The Regulatory Flexibility Act (RFA), at 5 U.S.C. 603(a), requires
agencies to prepare and make available for public comment an initial
regulatory flexibility analysis, which describes the impact of the
final rule on small entities. Section 605 of the RFA allows an agency
to certify a rule, in lieu of preparing an analysis, if the final rule
is not expected to have a significant economic impact on a substantial
number of small entities. This final rule does not affect small
entities as defined in the RFA. Therefore, the Department certifies
that the final rule will not have a significant economic impacts on a
substantial number of small entities.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the Department consider the impact of paperwork and other
information collection burdens imposed on the public. The Department
has determined that this rule does not alter any information collection
burdens.
Executive Order 13132 (Federalism)
Section 6 of E.O. 13132 requires Federal agencies to consult with
State entities when a regulation or policy may have a substantial
direct effect on the States, the relationship between the National
Government and the States, or the distribution of power and
responsibilities among the various levels of government, within the
meaning of the E.O. Section 3(b) of the E.O. further provides that
Federal agencies must implement regulations that have a substantial
direct effect only if statutory authority permits the regulation and it
is of national significance.
This final rule does not have a substantial direct effect on the
States, the relationship between the National Government and the
States, or the distribution of power and responsibilities among the
various levels of government, within the meaning of the E.O. This final
rule merely makes a procedural change for internal Departmental
operations and management for Job Corps procurement.
Unfunded Mandates Reform Act of 1995
This regulatory action has been reviewed in accordance with the
Unfunded Mandates Reform Act of 1995 (the Reform Act). Under the Reform
Act, a Federal agency must determine whether a regulation proposes a
Federal mandate that would result in the increased expenditures by
State, local, or tribal governments, in the aggregate, or by the
private sector, of $100 million or more in any single year. This final
rule merely makes an administrative change regarding the Departmental
entity authorized for Job Corps procurement responsibilities.
Therefore, the relevant requirements the Reform Act do not apply.
Executive Order 13175 (Indian Tribal Governments)
The Department has reviewed the final rule under the terms of E.O.
13175 and DOL's Tribal Consultation Policy, and have concluded that the
changes to regulatory text which are the focus of the final rule would
not have tribal implications, as these changes do not have substantial
direct effects on one or more Indian tribes, the relationship between
the Federal Government and Indian tribes, nor the distribution of power
and responsibilities between the Federal Government and Indian tribes.
Therefore, no consultations with tribal governments, officials, or
other tribal institutions were necessary.
List of Subjects in 20 CFR Part 686
Employment, Grant programs--labor, Job Corps.
Amended Regulatory Text
For the reasons stated in the preamble, the Department amends 20
CFR part 686 as follows:
PART 686--THE JOBS CORPS UNDER TITLE I OF THE WORKFORCE INNOVATION
AND OPPORTUNITY ACT
0
1. The authority citation for part 686 continues to read as follows:
Authority: Secs. 142, 144, 146, 147, 159, 189, 503, Pub. L. 113-
128, 128 Stat. 1425 (Jul. 22, 2014).
0
2. Amend Sec. 686.310 by revising paragraph (a) to read as follows:
Sec. 686.310 How are entities selected to receive funding to operate
centers?
(a) The Secretary selects eligible entities to operate contract
centers on a competitive basis in accordance with applicable statutes
and regulations. In selecting an entity, the Secretary issues requests
for proposals (RFPs) for the operation of all contract centers
according to the Federal Acquisition Regulation (48 CFR chapter 1) and
Department of Labor Acquisition Regulation (48 CFR chapter 29). The
Secretary develops RFPs for center operators in consultation with the
Governor, the center workforce council (if established), and the Local
WDB for the workforce development area in which the center is located.
* * * * *
0
3. Amend Sec. 686.340 by revising paragraph (a) to read as follows:
Sec. 686.340 How are entities selected to receive funding to provide
outreach and admission, career transition and other operations support
services?
(a) The Secretary selects eligible entities to provide outreach and
admission, career transition, and operational services on a competitive
basis in accordance with applicable statutes and regulations. In
selecting an entity, the Secretary issues requests for proposals (RFP)
for operational support services according to the Federal Acquisition
Regulation (48 CFR chapter 1) and Department of Labor Acquisition
Regulation (48 CFR chapter 29). The Secretary develops RFPs for
operational support services in consultation with the Governor, the
center workforce council (if established), and the Local WDB for the
workforce development area in which the center is located.
* * * * *
John Pallasch,
Assistant Secretary for Employment and Training, Labor.
[FR Doc. 2019-25441 Filed 11-22-19; 8:45 am]
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