Welfare-to-Work Competitive Grants

DEPARTMENT OF LABOR

Employment and Training Administration

Welfare-to-Work Competitive Grants

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

ACTION: Notice of availability of funds; solicitation for grant

applications.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Labor (DOL), Employment and Training

Administration (ETA) announces the first round of competitive grants

under a two year Welfare-to-Work (WtW) grant program enacted under the

Balanced Budget Act of 1997. The WtW program assists States and local

communities to provide the transitional employment assistance needed to

move hard-to-employ recipients of Temporary Assistance to Needy

Families (TANF) into lasting unsubsidized jobs. WtW grants are targeted

to assisting those TANF recipients, and certain noncustodial parents,

who have experienced, or have characteristics associated with, long-

term welfare dependence. This announcement describes the conditions

under which applications will be received under the Welfare-to-Work

(WtW) Competitive Grants Program and how DOL/ETA will determine which

applications it will fund. This announcement includes all of the

information and forms needed to apply for WtW competitive grants.

DATES: The closing date for receipt of applications under this

announcement is March 10, 1998. For the funding cycle covered by this

announcement, complete applications must be received at the address

below no later than 2 p.m. EST (Eastern Standard Time). Except as

provided below, grant applications received after this date and time

will not be considered. Applications which are not accepted for this

announcement must be resubmitted to be considered for future

announcements.

ADDRESSES: U.S. Department of Labor, Employment and Training

Administration, Division of Acquisition Assistance, Attention: Mr.

Willie Harris, SGA/DAA 98-004, 200 Constitution Avenue, NW, Room S4203,

Washington, D.C. 20210.

FOR FURTHER INFORMATION CONTACT: Mr. Willie Harris, Grant Management

Specialist, Division of Acquisition Assistance, Telephone: (202) 219-

8694. This is not a toll-free number. This announcement is also being

published on the Internet on the Employment and Training

Administration's Welfare-to-Work Home Page at http://wtw.doleta.gov.

Copies of the Interim Final Rule governing the Welfare-to-Work program,

including activities conducted under the competitive grants, are also

available on the WtW Home Page. In addition, award notifications will

be published on the WtW Home Page.

SUPPLEMENTARY INFORMATION:

I. Authority

Section 403(a)(5)(B) of Title IV of the Social Security Act.

Regulations governing the WtW program are at 20 CFR Part 645, published

at 62 FR 61588. These Interim Final Regulations were published in the

Federal Register on November 18, 1997.

II. Submission of Applications

A signed original of the application and three copies must be

submitted. An application should be single-spaced and shall not exceed

twenty (20) single-sided pages for the Government Requirements/

Statement of Work section, as described in the ``Required Content for

WtW Competitive Grant Applications--Fiscal Year 1998,'' plus an

additional twenty-five (25) pages for Attachments, including the

Project Synopsis, Evidence of State and Local Coordination, the

Financial Plan and other recommended forms. A font size of at least 12

pitch is required.

Acceptable Methods of Submission

Applications may be hand-delivered or mailed. Hand-delivered

applications must be received at the address identified above by the

date and time specified. Overnight mail deliveries will be treated as

hand-deliveries. Mailed applications that arrive after the closing date

will be accepted if they are post-marked at least five (5) days prior

to the closing date. Applications submitted via overnight mail that

arrive after the closing date will be accepted if they are post-marked

at least two (2) days prior to the closing date. Otherwise, late

applications will not be accepted. Telegraphed and/or faxed

applications will not be accepted.

Applications may be withdrawn by written notice or telegram

(including mailgram), or in person if the representative's identity is

made known, and the representative signs a receipt for the application.

OMB Approval of Paperwork Burden

According to the Paperwork Reduction Act of 1995, no persons are

required to respond to a collection of information unless such

collection displays a valid OMB control number. The valid OMB control

number for this information collection is 1205-1387. The time required

to complete this information collection is estimated to average twenty

(20) hours per response, including the time to review the instructions,

search existing data resources, gather data needed, and complete and

review the information. Comments concerning this burden estimate or any

other aspect of this collection of information, including suggestions

for reducing this burden, to the U.S. Department of Labor, Office of

Job Training Programs, Room N4459, Washington, D.C. 20210 (Paperwork

Reduction Project 1205-1387). Comments may be reflected in the

development of future solicitations.

III. Program Scope and Funding

Competitive grant projects will be expected to achieve the purpose

of all WtW grants:

To provide transitional assistance which moves welfare

recipients into unsubsidized employment providing good career

potential for achieving economic self-sufficiency.

This transitional assistance is to be provided through a ``work

first'' service strategy in which recipients are engaged in employment-

based activities. Grant funds may be used to provide needed basic and/

or vocational skills training as a post-employment service in

conjunction with either subsidized or unsubsidized employment. This

flexibility, established in the Regulations, reflects the basic ``work

first'' philosophy of the WtW legislation, and recognizes the critical

importance of continuous skills acquisition and lifelong learning to

economic self-sufficiency.

All competitive grant projects will be expected to be an integral

part of a comprehensive strategy for moving eligible individuals into

unsubsidized employment in a local, community-based context. Projects

should develop and implement innovative approaches that enhance a

community's ability to move eligible individuals into self-sustaining

employment, create upward mobility paths and higher earnings

[[Page 67903]]

potential for WtW participants, and achieve sustainable improvements in

the community's service infrastructure for assisting welfare

recipients. All applications will be reviewed under the criteria set

forth in Part VII of this announcement, including the effectiveness of

the proposal in moving TANF recipients who are least job ready into

unsubsidized employment, in moving such recipients into unsubsidized

employment in labor markets that have a shortage of low-skill jobs, and

in expanding the base of knowledge about programs aimed at moving TANF

recipients into long-term unsubsidized employment.

Areas of Special Interest

In addition to proposing innovative strategies for moving welfare

recipients into lasting unsubsidized employment, applicants are

encouraged to consider the following in designing responsive service

strategies for the eligible population in their local area:

Targeted assistance to specific subgroups of the eligible

populations such as noncustodial parents, individuals with learning

disabilities, individuals who require substance abuse treatment for

employment, and public housing residents;

Development of responsive transportation and child care

service systems;

Use of integrated work and learning strategies to develop

skills;

Creation of job opportunities (including self-employment)

that allow for flexibility to address work and family needs while

providing income levels that are adequate for self-sufficiency;

Proactive strategies to involve employers in design of

service strategies and implementation of the project;

Strategies that focus on family-based assistance and that

are integrated with children systems (e.g., Child Care, Head Start)

that can assist the full family unit;

Activities to help women access nontraditional

occupations; and

Strategies that reflect effective integration with both

the workforce development (e.g., One-Stop) and welfare systems.

The Department is also interested in receiving applications to

implement projects in conjunction with community saturation strategies

(in which comprehensive services are available to assist all of the

eligible residents in a defined community). The Department expects that

these applications would be submitted from communities in which there

are concentrations of eligible hard-to-employ individuals, there is a

reasonable opportunity to provide employment for all such individuals,

and there are established partnerships which can contribute a

significant level of resources to implement the strategy.

Funding Availability

A total of $368.25 million is available for competitive grant

awards in Fiscal Year (FY) 1998 and $343.25 million in FY 99.

Approximately $184 million (or 50 percent of FY 98 competitive grant

funding) is available for Federal grant assistance through this

announcement. The balance of the available funding for FY 98 will be

covered in subsequent announcements. Of the funds available in FY 98,

the Department aims to distribute approximately 70 percent for projects

to serve cities with large concentrations of poverty and 30 percent for

projects to serve rural areas. Definitions for ``cities with large

concentrations of poverty'' and ``rural area'' can be found in Appendix

B of this announcement. Applications to serve rural areas should be

targeted to serve eligible residents from subareas that represent

concentrations of poverty. Further, as indicated under the Criteria

section of this solicitation, applications are strongly encouraged to

present innovative strategies to address the needs of areas with

concentrations of poverty.

It is expected that most grant awards will be between $1 million

and $5 million. Furthermore, it is expected that most grants will serve

a minimum of 100 eligible participants. Applications that are outside

of this range should provide an explanation of how the project will

have substantial community impact (especially for those below $1

million and/or fewer than 100 participants), or how project services

will be provided on a local level and targeted to the specific needs of

the defined target group (especially for those applications over $5

million).

Award Period

It is expected that the planned performance period for most

projects will be between 18 and 30 months. Grant funds are not

available for expenditure for longer than three years. No obligation or

commitment of funds will be allowed beyond the grant period of

performance. Any unspent grant funds must be returned to the Department

of Labor.

IV. Eligible Grant Applicants

Private Industry Councils (PIC), political subdivisions of the

State (as defined in Appendix B), and private entities (as defined in

Appendix B) are eligible to receive grant funds under this

announcement. Eligible private entities include community development

corporations, community action agencies, community-based and faith-

based organizations, disability community organizations, public and

private colleges and universities, and other qualified private

organizations. Private entities include both non-profit and for-profit

organizations but do not include individuals.

Entities other than a PIC or a political subdivision of the State

must submit an application for competitive grant funds in conjunction

with the PIC(s) or political subdivision(s) for the area in which the

project is to operate. The term ``in conjunction with'' shall mean that

the application must include a signed certification by both the

applicant and either the appropriate PIC(s) or political subdivision(s)

indicating that:

1. The applicant has consulted with the appropriate PIC(s)/

political subdivision(s) during the development of the application; and

2. The activities proposed in the application are consistent with,

and will be coordinated with, the WtW efforts of the PIC(s)/political

subdivision(s).

If the applicant is unable to obtain the certification, it will be

required to include information describing the efforts which were

undertaken to consult with the PIC(s)/political subdivision(s) and

indicating that the PIC(s)/political subdivision(s) were provided a

sufficient opportunity to cooperate in the development of the project

plan and to review and comment on the application prior to its

submission to the Department of Labor. ``Sufficient opportunity for

PIC/political subdivision review and comment'' shall mean at least 30

calendar days.

The certification, or evidence of efforts to consult, must be with

either each PIC or each political subdivision in the service area in

which the proposed project is to operate.

State-level Consultation

All applicants for competitive grants, including PICs and political

subdivisions, must submit their applications to the Governor or, at the

discretion of the Governor, to the designated State administrative

entity for the WtW program, for review and comment prior to submission

of the application to the Department. For private entities, State

review must be subsequent to review by the PIC or political entity.

When submitted to the Department, the application must include any

comments from the Governor or his/her designee or must include

information indicating that the Governor was provided a sufficient

[[Page 67904]]

opportunity for review and comment prior to submission to the

Department. ``Sufficient opportunity for State review and comment''

shall mean at least 15 calendar days.

Applicants for Multiple Community or National Projects

Consideration will be given to applications which propose multi-

community or national strategies to move welfare recipients into long-

term unsubsidized employment leading to economic self-sufficiency. For

example, an applicant may design a nationwide project to create jobs

for welfare recipients in a particular industry. Applications which

propose multi-community or national strategies must meet all of the

application requirements contained in this Announcement. Specifically,

private entities proposing such projects must include the signed

certification from the applicable PIC or political subdivision of each

SDA in which the project will operate or other evidence indicating the

efforts undertaken to obtain the required consultation as described

above. Such applications must also demonstrate the required

consultation with the Governors of the States in which the project will

operate. Applications proposing national projects must comply with all

statutory and regulatory requirements and will be rated under the same

evaluation criteria as other applications. Applicants should be aware

that the extent of local collaboration demonstrated in a national

project will be considered as an important factor in the overall

strength of the proposal.

Lobbying Disclosure Act of 1995

Entities described in Section 501(c)(4) of the Internal Revenue

Code that engage in lobbying activities are not eligible to receive

funds under this announcement. The Lobbying Disclosure Act of 1995,

Public Law 104-65, 109 Stat. 691, prohibits the award of Federal funds

to these entities if they engage in lobbying activities.

V. Program and Administrative Requirements

Participant Eligibility and Funding Expenditures

Each project will be required to meet the targeting provisions

described at 20 CFR 645.211-645.213. [NOTE: The WtW Regulations are

available at the WtW Internet web site at http://wtw.doleta.gov.] These

provisions dictate that a minimum of 70 percent of the funds in each

WtW competitive grant must be used to serve hard-to-employ individuals

as described in Sec. 645.212. Furthermore, no more than 30 percent of

the funds in each grant may be used to serve individuals with

characteristics predictive of long-term welfare dependence, as

described in Sec. 645.213.

Allowable Uses of Funds

Competitive grant funds shall only be spent for those activities

identified in the WtW Regulations, at 20 CFR 645.220, and for

appropriate administrative costs.

Administrative Costs

Allowable costs and the 15 percent limitation on administrative

costs for WtW competitive grants are defined in the WtW Regulations at

20 CFR 645.235. All proposed costs must be reflected as either a direct

charge to specific budget line items, or as an indirect cost. Direct

and indirect administrative costs are allowable, but combined, these

costs cannot exceed 15 percent of the total grant. The administrative

costs negotiated in the final grant document may be below fifteen

percent.

Only costs which result from applying a Federally-approved indirect

cost rate may be entered on the ``indirect cost'' line item of the

budget. If an indirect cost rate is used, the applicant must include

documentation from the cognizant Federal agency which includes the

approved rate, the cost base against which it is applied, and the

approval date.

All applicants will be expected to justify proposed costs (see Item

3 of the Financial Plan in the ``Required Content for WtW Competitive

Grants Applications--Fiscal Year 1998''). Profits are not an allowable

use of grant funds.

Use of Federal Funds

Federal funds cannot be used to support activities which would be

provided in the absence of those funds. Grant funds may cover only

those costs which are appropriate and reasonable. Federal grant funds

may only be used to acquire equipment which is necessary for the

operation of the grant. The grantee must receive prior approval from

the DOL/ETA Grant Officer for the purchase and/or lease of any property

and/or equipment with a per unit acquisition cost of $5,000 or more,

and a useful life of more than one year as defined in the ``Uniform

Administrative Requirements for Grants and Cooperative Agreements to

State and Local Governments'', codified at 29 CFR Part 97, and ``Grants

and Agreements with Institutes of Higher Education, Hospitals and Other

Non-Profit Organizations'', codified at 29 CFR Part 95. This

restriction includes the purchase of Automated Data Processing (ADP)

equipment. A request for such prior approval may be included in the

grant application or submitted after the grant award. Requests

submitted after the grant award must be directed through the Grant

Officer Technical Representative (GOTR) and must include a detailed

description and cost of the items to be acquired.

Grant funds also may not be used to cover any project-related costs

incurred prior to the effective date of the grant award. In making a

grant award, DOL/ETA has no obligation to provide any future additional

funding in connection with the grant award.

Pursuant to 20 CFR 645.235(c)(3), the costs of information

technology--computer hardware and software--needed for tracking or

monitoring under a WtW grant are not subject to the fifteen percent

limitation on administrative costs.

Year 2000 Compliance

Any information technology purchased in whole or in part with WtW

funds, which is used for a period of time that goes beyond December 31,

1999, must be ``year 2000 compliant.'' This means that such information

technology shall accurately process date/time data (including, but not

limited to, calculating, comparing and sequencing) from, into and

between the twentieth and twenty-first centuries, the years 1999 and

2000, and leap year calculations. Furthermore, ``year 2000 compliant''

information technology, when used in combination with other information

technology, shall accurately process date/time data if the other

information technology properly exchanges date/time with it.

Assurances and Certifications

The following assurances and certifications will apply to each

executed grant agreement:

Assurances/Non-Construction Programs;

Debarment & Suspension Certification;

Certification Regarding Lobbying;

Drug Free Workplace Certification;

Certification of Non-delinquency; and

Non-discrimination and Equal Opportunity Requirements.

These Assurances and Certifications will appear as part of the

final grant award document.

Departmental Oversight

The Department reserves the right to conduct oversight and both

[[Page 67905]]

programmatic and financial monitoring activities for all competitive

grants awarded under the WtW grants program.

Department of Health and Human Services Evaluation of the Welfare-to-

Work Program

Competitive grant projects will participate in the evaluation of

the WtW grant program by the U.S. Department of Health and Human

Services (DHHS), as described in Title IV, section 413(j)(1) of the

Social Security Act. The goal of the DHHS evaluation is to expand the

base of knowledge about programs aimed at moving the least job ready

welfare recipients into unsubsidized employment. The evaluation will

collect program and administrative data to determine the range of WtW

project designs and the employment outcomes for all WtW grantees,

consistent with sec. 413(j)(1)(C) of the Social Security Act. In

addition, DHHS will select certain sites at which to qualitatively

study the implementation of the WtW program and other sites where net

impact and cost effectiveness of the program will be examined

quantitatively.

VI. Monitoring & Reporting

Monitoring

The Department shall be responsible for ensuring effective

implementation of each competitive grant project in accordance with the

Act, the Regulations, the provisions of this announcement and the

negotiated grant agreement. Applicants should assume that at least one

on-site project review will be conducted by Department staff, or their

designees, at approximately the midpoint of the project performance

period. This review will focus on the project's performance in meeting

the grant's programmatic goals and participant outcomes, complying with

the targeting requirements regarding recipients who are served,

expenditure of grant funds on allowable activities, integration with

other resources and service providers in the local area, and methods

for assessment of the responsiveness and effectiveness of the services

being provided. Grants may be subject to other additional reviews at

the discretion of the Department.

Reporting

Applicants selected as grantees will be required to provide the

following reports:

1. Financial Reporting: The Department of Labor (DOL) will issue

financial reporting instructions for competitive grantees. Specific

reporting instructions are awaiting clearance from the Office of

Management and Budget. Financial reports will be submitted directly to

DOL.

2. Participant Reporting: The Department of Health and Human

Services (DHHS) will issue participant reporting instructions covering

the entire WtW program--both formula and competitive grants.

Participant reports for each competitive grant will be submitted in

accordance with reporting instructions to be issued by DHHS at a later

date.

3. Other Reporting: The Department of Labor may negotiate

additional reporting requirements with individual grantees, where

necessary, for grants management and/or knowledge development purposes.

In addition to required quarterly financial and participant

reporting, some grantees may be asked to provide information to the

appropriate ETA Regional Office during the early implementation phase

of the project for the purpose of project oversight. This information

may include project enrollment levels, participant characteristics, and

emerging implementation issues.

VII. Review and Selection of Applications for Grant Award

Review Process

The Department will screen all applications to determine whether

all required elements are present and clearly identifiable. These

elements are described below in the ``Required Content for WtW

Competitive Grant Applications--Fiscal Year 1998.'' Failure to include

and clearly identify all required elements will result in rejection of

the application.

Each complete application will be objectively rated by a panel

against the criteria described in this announcement. Applicants are

advised that the panel recommendations to the Grant Officer are

advisory in nature. The Grant Officer may elect to award grants either

with or without discussion with the applicant. In situations where no

discussions occur, an award will be based on the applicant's signature

on the SF424 form (See Appendix C), which constitutes a binding offer.

The Grant Officer will make final award decisions based on what is most

advantageous to the Government, considering factors such as:

panel findings;

the geographic distribution of the competitive

applications;

the extent to which the competitive applications reflect a

reasonable distribution of funds across the areas of special interest

identified in this announcement; and

the availability of funds.

Criteria

The criteria, and the weights assigned to each, which will apply to

the review of applications submitted in response to this announcement

are:

1. ``Relative Need for Assistance'' [20 points] which shall

consider the concentration of poverty and long-term welfare dependence

and the lack of employment opportunities in the project service area

(up to 9 points); the extent of gaps in the capacity of the local

infrastructure to effectively address the employment barriers which

characterize the targeted population (up to 6 points); and the

responsiveness of the project design to the areas of special interest

identified in Part III of this announcement (up to 5 points).

2. ``Innovation'' [20 points] which shall consider the extent to

which the project incorporates new and better strategies for moving

welfare recipients into lasting unsubsidized employment leading to

economic self-sufficiency. These strategies can include, but are not

limited to, new and better ways that services can be accessed by

participants in the local community, new and better ways for local

organizations to work together, or the replication of effective

strategies in a new setting.

3. ``Outcomes'' [25 points] which shall consider the quality of the

proposed employment and earnings outcomes (up to 10 points); the extent

to which the proposed plan of services responds to identified needs,

the barriers faced by proposed participants, and the conditions in the

local area as well as the likelihood that the proposed service plan

will result in the proposed outcomes (up to 12 points); and the

reasonableness of the level of investment in relation to the proposed

outcomes (up to 3 points).

4. ``Local Collaboration and Sustainability'' [25 points] which

shall consider the extent and quality of local partnerships that are

involved in and making substantial contributions to the project (up to

4 points); the extent to which the project is coordinated with the WtW

formula grant and TANF grant activities and supported by the PIC/

political subdivision and local TANF agency (up to 4 points); the

commitment and integration of other community resources (up to 7

points); involvement of and participation by local employers (up 5

points); and the extent to which the community and/or the local area

has developed plans and commitments to maintain and expand the capacity

to serve the target population with local

[[Page 67906]]

resources over a sustained period of time (up to 5 points).

5. ``Demonstrated Capability'' [10 points] which shall consider the

extent to which the applicant and its partner organizations demonstrate

a history of success in serving a comparable target group, the extent

of use of current or former welfare recipients in the provision of

services, and the extent to which the applicant demonstrates the

ability to effectively execute grant management responsibilities.

For those proposals that are deemed by the Grant Officer to be most

competitive, applicants for projects to operate in designated

Empowerment Zones and Enterprise Communities (EZ/EC) will be eligible

for 5 bonus points.

In addition, proposals that are deemed by the Grant Officer to be

most competitive, that plan to serve at least 450 WtW participants, and

that are willing to participate in a random assignment evaluation may

be awarded from zero to five bonus points (based on an HHS assessment

of the suitability of the project for evaluation against the criteria

outlined in Appendix A). Selected projects may also be able to access

additional technical assistance resources, as well as a small amount of

funding to offset the additional administrative costs of random

assignment. These applicants should submit the additional information

identified in Appendix A of this announcement. This information will be

submitted as an Addendum to the grant application and will not be

counted against the application page limit or count as an Attachment.

Signed at Washington, D.C., this 19th day of December, 1997.

Janice E. Perry,

Grant Officer.

Required Content for WtW Competitive Grant Applications

Fiscal Year 1998

Each application must contain the information and follow the format

outlined in this Part. The application should include: (1) Information

that responds to these requirements; (2) information that indicates

adherence to the provisions described in preceding sections of this

announcement; and (3) any other information the applicant believes will

address the review and selection criteria.

I. Project Synopsis/Summary

Each application shall provide a project synopsis which identifies

the applicant, the type of organization, the project service area,

whether the service area is a city with a large concentration of

poverty or a rural area, the specific areas of interest identified in

the announcement which are addressed by the project, the amount of

grant funds requested, the planned period of performance, the planned

number of WtW-eligible TANF recipients to be served, the number of

noncustodial parents to be served (if applicable), the significant

employment barriers which characterize the target group, the planned

employment and earnings outcomes, a summary description of the proposed

service strategy, and other significant service organizations involved

in the delivery of services. This section must be limited to no more

than two single-spaced, single-sided pages. A recommended format for

this synopsis can be found in Appendix D.

II. Evidence of Required Local and State Consultation

It is the expectation of the Department that, to the extent

possible, all applications will be developed in consultation with the

appropriate PIC/political subdivision and the Governor. Competitive

grant projects should complement the WtW formula program activity,

rather than exist independent of, or in conflict with, that program.

Each application must include the signed certification or other

evidence of the required consultation with the Governor as described in

this announcement. Applications from private entities must also include

the signed certification from the appropriate PIC(s) or political

subdivision(s) or other evidence indicating the efforts undertaken to

obtain the required consultation as described in this announcement. In

areas where an entity other than the PIC has been designated by the

Governor and approved by the Secretary to administer the WtW formula

grant, the applicant should also include evidence of consultation and/

or support from that entity. General letters of support (e.g., from

community organizations, elected officials, employers) should not be

included in this part of the application.

III. Government Requirements/Statement of Work

This section of the application should not exceed 20 single spaced

pages. The application should include information of the type described

below, as appropriate.

Description of Service Area

--Identify the specific political and geographic jurisdictions (e.g.,

cities, counties, subsections of cities/counties) which are included in

the service area for the project.

--Identify the percent of the population in the service area that has

income below the poverty level.

--Identify the percent of the population in the service area that is

receiving TANF assistance.

--Identify the percent of the TANF population that has received

assistance for 30 months or more, or is within 12 months of losing

eligibility for assistance under State or Federal law.

--Identify the unemployment rate in the service area.

--Describe the significant deficiencies in the local area

infrastructure that represent significant barriers to moving eligible

recipients into permanent employment in an efficient manner (e.g., lack

of transportation, labor market with a shortage of low-skill jobs,

shortage of employers with appropriate employment opportunities,

remoteness from health facilities, limited number of social and support

service agencies).

Summary of Strategy for Use of WtW Formula Funds in the Local Area

--Identify the substate service area covered by the WtW formula grant.

--Describe the allocation of formula grant funds among the allowable

activities.

--Identify the significant local and community organizations involved

and their roles in providing assistance through the formula grant.

--Describe how the proposed competitive grant project will supplement

and enhance the capacity of the WtW formula grant activities to

effectively serve eligible recipients in the local area who have

significant employment barriers.

--In cases where the applicant cannot obtain this information because

the State has not yet submitted a complete WtW Formula Grant Plan, the

application should so indicate. Absence of this information, in and of

itself, will not penalize the applicant.

Analysis of Target Group

--Describe the individuals targeted for assistance through this

project, including any noncustodial parents.

--Describe the significant employment barriers which characterize this

target group, including the process for identifying those participants

who are least job ready.

[Note: An adequate analysis of employment barriers of the target

group will be a critical factor in evaluating the need for grant

assistance and the appropriateness of the proposed plan of

services.]

[[Page 67907]]

Analysis of Employment Opportunities

--Identify the types of occupations in the local area which are being

targeted as appropriate employment opportunities for the target group

of this project.

--Describe the justification for the selection of the occupations in

terms of their availability and the adequacy of expected placement wage

and post-placement earnings potential to achieve self-sufficiency.

Service Strategy

--Identify the specific job readiness, placement (in both subsidized

and unsubsidized employment), post-employment, job retention and/or

support services to be provided with competitive grant funds as well as

services to be leveraged from other sources.

--Describe the rationale for planned enrollments in activities in terms

of the employment barriers, infrastructure deficiencies and employment

opportunities previously identified above (enrollments in each activity

will be reflected in the Quarterly Implementation Plan).

--Where vouchers for services are to be used, describe the process by

which vouchers will be distributed and redeemed (in compliance with 20

CFR Sec. 645.230(a)(3)), including who will be eligible, how amounts of

vouchers will be determined, and how the grantee will ensure that

quality services are being provided.

Service Process

--Describe the comprehensive service process that will be available to

participants, and identify the organizations which will be involved in

providing specific services/activities. [A process flowchart and/or

service matrix may be used to provide this description.] The

description should specify what elements of the service strategy are

already available in the community, whether through the WtW formula

program, the TANF program or from other sources, as well as the

elements or services that will be funded through the WtW competitive

grant award. Also describe what individual support services, such as

mentoring and case management, will be used to maintain participants in

the program.

--Describe the specific methods which will be used by the grantee and

the local TANF agency to coordinate and work jointly in providing the

following services:

--outreach, recruitment, and referral of appropriate recipients for

assistance through the project;

--assessment of skills and identification of specific employment

barriers;

--counseling and case management; and

--support services.

Integration of Resources

--Identify specific financial resources and organizational/service

provider capabilities which are being contributed to provide the full

range of assistance to the identified target group for the project. At

a minimum, describe the coordination and contributions of local JTPA

service providers, local TANF providers, and local housing and

transportation authorities. In developing their plans, applicants are

encouraged to be mindful of their obligations not to interefere with

collective bargaining rights or agreements or to displace employees.

--Describe the process that will be used to maintain and expand the

service structure in the local area and engage new partners after

receipt of WtW competitive grant funds.

--Describe how the project will develop a sustainable capacity in the

local community to effectively move welfare recipients into permanent

jobs and to foster the long-term self-sufficiency of the target

population. It is expected that project services will provide

assistance oriented towards long-term solutions. It is also expected

that the need for grant funds to provide this assistance will diminish

over time, specifically in the latter stages of the grant performance

period.

Employer Support

--Describe the specific responsibilities and approaches for developing

relationships with and support of area employers to generate a

sufficient number of unsubsidized employment opportunities for the

target group. Specifically describe how employers will be encouraged to

customize employment opportunities to meet work-related needs (e.g.,

child care, flexible work schedules) of recipients.

--Identify the employers in the local area who have made commitments to

the project and describe the types of commitments made (e.g., number

and types of jobs, contribution of employer resources for post-hire

support services and/or training).

Planned Outcomes

--Identify and justify planned performance for the comprehensive

service strategy on the following measures:

--number of participants to be placed into unsubsidized employment;

--average earnings at placement in unsubsidized employment;

--expected average earnings one year after placement in

unsubsidized employment; and

--cost per placement in unsubsidized employment.

In addition, where applicable, for those services supported

specifically by WtW competitive grant funds, describe specific process

or outcome objectives for those services.

The application may include other measures and planned performance

levels as deemed appropriate by the applicant. If these are included,

the applicant should briefly describe their relevance to the project.

Implementation Plan

--Identify the critical activities, time frames and responsibilities

for effectively implementing the project within the first 60 days after

the award of the grant.

--Include a completed quarterly implementation schedule showing the

number of participants, enrollments in allowable activities, placements

in unsubsidized employment and terminations. (See Appendix D for a

recommended format.)

Project Management Plan

Applicants must be able to document that they have systems capable

of satisfying the administrative and grant management requirements for

WtW grants as defined in 20 CFR Part 645.

--Include a project organizational chart which identifies the

organizations, and staff, with key management responsibilities and the

specific responsibilities of each organization;

--Describe the specific experience of the applicant and other key

organizations involved in the project in serving individuals with

significant barriers to employment. The information should include

specific projects or grants, a comparison of the characteristics of

individuals served to the target group for this project, and the

employment outcomes which were achieved.

--As appropriate, describe how current or former welfare recipients

will be used to provide services.

--Describe the procedures which will be used to obtain feedback from

participants and other appropriate

[[Page 67908]]

parties on the responsiveness and effectiveness of the services

provided.

Innovation

Recipients of WtW competitive grants are expected to use creativity

and innovation to help eligible individuals obtain long-term

unsubsidized employment and economic self-sufficiency. The application

should describe how the proposed approach represents an innovative

method for achieving the employment objectives of the project. Proposed

strategies should represent an improvement over, or a variation on,

approaches that have traditionally been used in the project service

area to assist welfare recipients and other low income unemployed

individuals.

Grant recipients are also expected to share knowledge which they

develop through the use of innovative approaches. Applicants should

describe how they will report lessons learned in the course of the

grant implementation, and further, describe their plans for

disseminating the knowledge they have gained.

Additional Requirements for Community Saturation Projects

--Describe why a project employing a saturation strategy is appropriate

for the project service area and target group.

--Describe the feasibility of a saturation strategy for the project

service area and target group (i.e., based on available employment

opportunities and other factors).

--Identify the local partners who will be involved in implementing the

saturation strategy, the services to be provided and the dollar value

of the contribution from each.

IV. Financial Plan

The financial plan shall describe all costs associated with

implementing the project that are to be covered with grant funds. All

costs should be necessary and reasonable according to the Federal

guidelines set forth in the ``Uniform Administrative Requirements for

Grants and Cooperative Agreements to State and Local Governments'',

codified at 29 CFR Part 97, and ``Grants and Agreements with Institutes

of Higher Education, Hospitals and Other Non-Profit Organizations'',

codified at 29 CFR Part 95.

The financial plan must contain the following four parts:

1. ``Application for Federal Assistance'' and ``Budget Information

Sheet'' by line item for all costs required to implement the project

design effectively. Submission of these two completed forms is

required. (See Appendix C for these forms.) [NOTE: Although there is no

matching requirement for these grants, the Department strongly

encourages the leveraging of resources in the implementation of WtW

competitive grant projects. On the Budget Information form, the

``Matching/Cost Sharing'' section of the form provides an opportunity

for applicants to reflect such leveraged resources.]

2. Detailed line item break-out budget identifying items by cost

category (``administration'' and ``activities''). A recommended format

is included in Appendix D. At a minimum, the line item budget included

in the application must provide the level of information indicated in

the recommended format.

3. Budget narrative/justification which provides sufficient

information to support the reasonableness of the costs included in the

budget in relation to the service strategy and planned outcomes.

4. Quarterly expenditure plan which identifies the planned

cumulative expenditure of grant funds by Fiscal Year quarter for the

planned period of performance of the project. Expenditures must be

identified by grant activity. A recommended format is included in

Appendix D.

Appendix A: Instructions for Random Assignment Plan Addendum

Background

The Department of Health and Human Services is charged with the

responsibility to conduct a national evaluation of the welfare-to-work

(WtW) grants program. The goal of the evaluation is to expand the base

of knowledge about effective strategies for moving the least job-ready

welfare recipients into unsubsidized employment. Ten to fourteen WtW

competitive grant project sites will be selected for an in-depth study

of the net impact and cost-effectiveness in moving hard-to-employ

recipients into employment. This analysis will rely on both

administrative data and, potentially, in-person interviews with program

participants. In addition, these sites will participate in a

qualitative study of the issues, challenges, and successes associated

with implementing and operating WtW programs. This qualitative analysis

will rely on on-site interviews with program administrators and staff,

administrative data, and potentially, focus groups with WtW

participants.

To qualify as a site for the in-depth study, the site must plan to

serve at least 450 WtW eligible individuals. Up to five (5) bonus

points are available to competitive grant applicants which meet this

participant threshold and which are willing to participate in the net

impact and cost-effectiveness components of the evaluation. Sites

selected to participate in the evaluation will receive additional

resources to cover the extra administrative costs associated with

participating in the evaluation. Additionally, selected sites will have

access to enhanced technical assistance from the evaluation contractor.

Finally, the sites will benefit from a high-quality evaluation of their

program, as well as the opportunity to have their program showcased

nationally to demonstrate innovative techniques for serving hard-to-

employ welfare recipients.

What Will Participation in the Net Impact and Cost-Effectiveness

Components of the Evaluation Mean for the Selected Sites

To effectively measure the net impact and cost-effectiveness of

specific service strategies, an experimental design involving the

random assignment of individuals to either treatment status (receipt of

WtW services) or control status (receipt of regular TANF services) will

be used to estimate program net impacts. The random assignment approach

will also be applied to test impacts among a variety of WtW services.

Since the level of funding available to a particular WtW site will

not be sufficient to serve the entire population eligible in that site,

the applicant must demonstrate the capacity to design a random

assignment study so that no fewer participants will be served by the

WtW program than would have been served in the absence of the study.

Random assignment will only change the mechanism by which program

administrators would otherwise respond to the funding shortfall (e.g.,

waiting lists, first-come first-serve, priority groups). Nor will

random assignment require excluding the control group from services--

the control group will be eligible to receive the regular TANF services

available to participants in the TANF program.

Application Process

WtW applicants who would like to be considered as net impact and

cost-effectiveness evaluation site should submit an ``Evaluation

Addendum'' in addition to their programmatic application. The addendum

should address the following items:

Appropriateness of site for evaluation purposes. Because

of the statistical requirements associated with random assignment,

programs selected

[[Page 67909]]

for the evaluation will need to serve at least 450 participants in this

grant cycle (with funding available over three years). Preference may

be given to programs that address the areas of interest identified in

the SGA and that will be able to be implemented quickly. The

application should explain the importance of the program model for

learning about effective strategies for hard-to-employ recipients. It

also should include evidence of the applicant's understanding of what

is required to carry out a net impact evaluation program under the

coordination of a contractor, and evidence of the site's commitment to

provide the necessary supports and resources to ensure the success of

the project.

Evidence of capacity to participate. Evaluation sites must

be willing and able to collect administrative data on participants'

experiences and outcomes. The following are specific examples of

evaluation site requirements: utilizing staff time to oversee the

administration of special data collection forms and reviewing them for

completeness; having on staff personnel with knowledge about or

experience in data systems management and extraction; utilizing staff

time to contact program participants to set up meetings or elicit their

cooperation in focus groups; helping to identify current address or

additional contact information for participants who cannot be located

after program termination; and utilizing management and staff time to

meet with evaluation staff for individual and/or group interviews and

information exchange. The application should list the ability of the

site to participate in these tasks. It also should identify the key

individuals who will work on the evaluation along with a short

description of the nature of their contribution and the percentage of

their time available for the project. There also should be evidence of

support from management of the organization for the purposes of

research and evaluation. Applicants are encouraged to discuss relevant

staff experience with research and evaluation.

Budget for reimbursement of evaluation costs. Additional

grant funds are available to help defray the incremental administrative

costs associated with the site's participation in the national

evaluation. This may include the costs associated with special data

collection and reporting (above that required of all WtW grant

recipients), monitoring case status and ensuring that cases receive the

services appropriate under the arrangements agreed upon for the

evaluation, supporting the evaluation by notifying participants and

arranging for meetings between evaluators and WtW participants, and

providing liaison between the program and the evaluator as a part of

the national evaluation team. Based on past experience, it is estimated

that the costs to carry out these special tasks equate to between 1 and

1.5 full time employees (FTE) per year for a mid-range support staff

person. WtW applicants applying to be considered as participants in

this component of the evaluation should include a budget attachment

that includes the costs of evaluation (use a budget format similar to

the suggested format in Appendix D).

Sites that are interested in participating in a random assignment

experiment but are unsure whether they meet the criteria are encouraged

to submit an application for the bonus points. Efforts will be made to

work closely with the selected sites to facilitate participation in the

study and to minimize the administrative burden of random assignment.

Appendix B: Definitions of Key Terms

City with Large Concentration of Poverty--Any county that contains an

urban center of more than 50,000 people with a poverty rate of greater

than 7.5 percent.

Noncustodial Parent--A parent of a child whose custodial parent is an

eligible TANF recipient.

Private Entity--Any organization, public or private, which is neither a

PIC nor a political subdivision of a State.

Private Industry Council (PIC)--from Sec. 645.120 of the WtW

Regulations--A Private Industry Council established under Section 102

of the Job Training Partnership Act, which performs the functions

authorized at Section 103 of the JTPA.

Political Subdivision--A unit of general purpose local government, as

provided for in State laws and/or Constitution, which has the power to

levy taxes and spend funds and which also has general corporate and

police powers.

Rural Area--(1) Any county that does not contain an urban center of

more than 50,000 people, and where at least 50 percent of the

geographical area of the county has a population density of less than

100 persons per square mile; or (2) in counties where there is an urban

center, a rural area within the county that constitutes, or is part of,

a distinct rural labor market.

Appendix C: Application for Federal Assistance (Standard Form 424)

Budget Information Sheet

Note: In completing the Standard Form 424, the applicant should

indicate in Item 11 of the form whether the project is to operate in

a city with a large concentration of poverty or in a rural area;

identify the EC/EZ included in the project service area, if

applicable; and identify any of the areas of interest identified in

the announcement which are addressed by the project.

BILLING CODE 4510-30-P

[[Page 67910]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.069

[[Page 67911]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.070

[[Page 67912]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.071

[[Page 67913]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.072

[[Page 67914]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.073

[[Page 67915]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.074

[[Page 67916]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.075

[[Page 67917]]

[GRAPHIC] [TIFF OMITTED] TN30DE97.076

[[Page 67918]]

[FR Doc. 97-33694 Filed 12-29-97; 8:45 am]

BILLING CODE 4510-30-C