[Federal Register: May 16, 2008 (Volume 73, Number 96)] [Notices] [Page 28510-28528] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr16my08-117] ----------------------------------------------------------------------- DEPARTMENT OF LABOR Employment and Training Administration Notice of Availability of Funds and Solicitation for Grant Applications (SGA) To Fund Demonstration Projects Targeting Dislocated Workers Announcement type: New, Notice of Solicitation for Grant Applications. Funding Opportunity Number: SGA/DFA PY-07-10. Catalog of Federal Assistance Number: 17.269. Key Dates: The closing date for receipt of applications under this announcement is June 13, 2008. Applications must be received at the address below no later than 4:30 p.m. (Eastern Time). Application and submission information is explained in detail in Part IV of this SGA. SUMMARY: The U.S. Department of Labor (DOL), Employment and Training Administration (ETA) announces the availability of approximately $20 million to fund grants to State Workforce Agencies (SWAs) for demonstration projects targeting Workforce Investment Act (WIA) dislocated workers. This solicitation provides SWAs with the option to choose from four categories under which applicants can submit a single grant application. Please note that two options exist under category one and two options exist under category three. If the applicant chooses to apply under categories one or three, the applicant must indicate which option the proposal addresses. Applicants may only submit a grant application under one category and only one application per SWA will be accepted. Applicants must indicate in the abstract of their proposal the category under which they are applying. Category 1--Entrepreneurship Opportunities for Dislocated Workers (two options). Category 2--Getting Ahead of the Curve: Raising Educational/Skill Levels of Workers in Declining Industries. Category 3--Innovative Adult Learning Models for Dislocated Workers (two options). Category 4--Preventing Dislocations of TANF Recipients Moving Into Entry Level Jobs Subject to Economic Churn. Additional background information is provided under Part I. ADDRESSES: Mailed applications must be addressed to the U.S. Department of Labor, Employment and Training Administration, Division of Federal Assistance, Attention: BJai Johnson, Reference SGA/DFA PY-07-10, 200 Constitution Avenue, NW., Room N-4716, Washington, DC 20210. Facsimile applications will not be accepted. Information about applying online can be found in Part V.C. of this document. Applicants are advised that mail delivery in the Washington, DC, area may be delayed due to mail decontamination procedures. Hand delivered proposals will be received at the above address. SUPPLEMENTARY INFORMATION: This solicitation consists of eight parts: Part I provides background information for each category. Part II describes award information. Part III describes eligibility information. Part IV describes the application and submission process. Part V describes the applications review process. Part VI contains award administration information. Part VII contains DOL agency contact information. Part VIII lists additional resources of interest to applicants. Part I. Background Information This section provides background information for each of the four categories for grant applications. In some cases the background information is applicable to more than one category and is identified as such. Background Information for Category 1--Entrepreneurship Opportunities for Dislocated Workers: Applicants may submit an application under only one of the following options: Option A--Project GATE (Growing America Through Entrepreneurship) for Dislocated Workers in Rural Areas or Option B--Project GATE for Dislocated Workers Fifty Years and Older. This background information is relevant to both options. Although many Americans have neither the skills nor the desire to be self-employed (more than 90 percent of employed Americans work for other people in ``wage and salary'' jobs) some Americans do want to be self-employed. Some have a passion for a particular business idea, while others want to be their own bosses, have no access to wage and salary jobs in which they can use their skills, or desire the flexibility of self-employment. These people often are willing to work hard, and have specific skills, interests, and talents they can use in a business. Many aspiring entrepreneurs' lack of business knowledge and access to credit poses significant barriers to self-employment. This lack of knowledge may encompass marketing, finance, regulations, how to develop a business plan, or other aspects of developing and running a business. Disadvantaged populations in particular are less likely to have access to the information sources that would make such knowledge and skills available to them. Many people may need loans to start their businesses but have little collateral and poor or no credit histories. Moreover, commercial banks frequently are reluctant to make loans to small, risky ventures. In providing assistance designed to surmount these obstacles to self-employment, Project GATE aims to promote both workforce and economic development. In improving the likelihood of being successful at self-employment, the project sought to increase employment, earnings, and the self-sufficiency of GATE participants. Even if not successful at self-employment, the program could have improved success at wage and salary employment by providing GATE participants with contacts, business skills, or just the knowledge that entrepreneurship is not for them. By promoting small businesses and the jobs they create, Project GATE also aimed to promote economic development in some low-income areas. 1. Project GATE Demonstration This initiative builds on the prior Project GATE Demonstration funded by ETA which began in early fall 2003 and was implemented in three states-Pennsylvania, Minnesota, and Maine. Participants in Project GATE were offered assessments, classroom training and one-on- one business counseling in developing their businesses and applying for a Small Business Administration (SBA) Microloan or other source of business finance. Nonprofit Community-Based Organizations and the SBA's Small Business Development Centers provided the classroom training and business counseling. One-Stop Career Centers were the gateways to the program. These centers conducted outreach for Project GATE and hosted the program's orientation session. Project GATE added a new service to the One-Stop Career Centers' arsenal of employment services--helping people become self-employed. In addition, Project GATE attracted new [[Page 28511]] and diverse customers to the participating One-Stop Career Centers. The Project GATE demonstration also provided technical assistance to grantees to implement the project. In addition, the Project GATE demonstration was also evaluated to determine whether the project works and whether it could be replicated on a broader scale. Below is a summary of the findings from the first 18 months of the Project GATE demonstration, which have led ETA to announce a new round of Project GATE grants. Self-employment service programs can be offered at One-Stop Career Centers. During the demonstration, Project GATE was implemented successfully across a wide variety of sites. While One-Stop Career Centers are not traditionally known as places to go for self-employment services, Project GATE was able, with some marketing, to draw entrepreneurs and prospective entrepreneurs into the centers. As long as local training and business counseling providers with a reputation for providing good quality services are willing to participate in the program, Project GATE, or a similar program, could be offered as an additional service at One-Stop Career Centers. The Project GATE service model appears to have several advantages over the existing self-employment services available within participating communities. In addition to receiving more hours of self- employment services, Project GATE participants reported higher levels of satisfaction with the services received than did control group members. Offering a one-on-one assessment with a trained business counselor and a choice of quality local service providers appears to have added value to the existing service network within the local communities. GATE participants started businesses at a higher rate than control group members. Over the 18-month follow up period, participation in Project GATE led to an increase in business ownership. While the increase in business ownership was statistically significant, the magnitude of the impact was relatively modest-six percentage points. It is important to note, however, that an analysis of the impact of Project GATE on the unemployed found more substantial program impacts for this subgroup. Project GATE had larger impacts on business ownership among Unemployment Insurance (UI) recipients. Over the entire follow-up period, the impact of Project GATE on business ownership among UI recipients was nine percentage points (statistically significant), compared with no impact on those who did not receive UI. Project GATE may have had a larger impact on those who were receiving UI benefits when they applied because they had fewer alternative opportunities in the regular labor market. Moreover, not having a wage and salary job provided them with more time to work on their businesses, while the UI benefits provided a regular income. Project GATE had much larger impacts on business ownership among recent UI recipients in Minnesota, where job search requirements were waived for GATE program group members. For the recent UI recipients in Minnesota, the impact of Project GATE on business ownership started at +12 percentage points in the first quarter of the follow-up period and increased to +15 percentage points in the last quarter, all statistically significant. One reason for larger impacts among recent UI recipients in Minnesota may be attributable to the fact that the job search requirements that accompany the receipt of UI were waived for GATE participants which allowed them to continue receiving benefits while concentrating on their businesses, rather than looking for a wage and salary job Finally, Project GATE is a successful entrepreneurial training model in rural areas. Rural areas in the demonstration were especially innovative in providing access to training and business counseling to entrepreneurs. For more information on Project GATE, please visit the following weblink: http://wdr.doleta.gov/research/ keyword.cfm?fuseaction=dsp--resultDetails&pub--id=2337&mp=y. 2. Necessary Project Components The new Project GATE grantees would follow the service delivery strategy employed by the successful Project GATE Demonstration. Intake for the grants would involve three steps: (1) Registration, (2) orientation, and (3) completion of an application package. These are described in detail below. Registration. Persons interested in applying for training under the grant must first signal their interest in the program by registration. This would be done at a participating One-Stop Career Center, at the GATE Web site, by mailing a postcard, or by calling a toll-free number. Registered individuals will be notified by mail of the times and locations of the GATE orientations in their areas. The Project GATE Web site will be reactivated for the purposes of the grants. Other outreach materials developed for the GATE demonstration will be adapted for use under the grants. Registrants will be asked to contact a One-Stop Career Center to select which orientation they plan to attend. Orientation. The GATE orientation has four main objectives. First, it aims to provide the attendees with a balanced picture of both the positive and negative aspects of self-employment. Second, the orientation describes GATE services so that applicants have realistic expectations about services provided and do not expect to become eligible for grants or loans directly from GATE. Third, the orientation describes the services provided by the One-Stop Career Center. Finally, One-Stop Career Center staff members describe the GATE application process and offer each attendee an application package. Application Package. Orientation attendees will be given an application package. The application collects information for the evaluation. It also is used to check on eligibility for Project GATE and to provide the assessment counselor (see below) with some information about the participant's needs. The applicant will be required to send the application package to the evaluation contractor. Forms that are less than 90 percent complete will be returned to the applicant for completion. 3. Necessary Project Services Each Project GATE grantee must offer at minimum three basic services: (1) An assessment, (2) classroom training, and (3) one-on-one business counseling. All Project GATE grant participants must receive an assessment. After the assessment, participants may receive classroom training only, business counseling only, or both. Assessment. Soon after being accepted into the project, each participant should meet with a GATE assessment counselor. The GATE counselor is generally a member of a local economic development entity such as a chamber of commerce or small business development center. The main objective of the assessment is to recommend the services and providers that best meet the participant's needs. On the basis of this review, the counselor recommends the appropriate set of services to the participant and refers them to a training or business counseling provider. Training. The training courses offered will vary by provider. Many providers offer multiple training courses. At minimum, service providers must offer basic courses for those just starting businesses that focus on developing a business plan. Topics covered in these basic courses may also include: Market research, marketing, pricing, financing, cash flow, [[Page 28512]] accounting, hiring, permits and licenses, and legal issues. Other courses should target participants who already have developed business plans and may have started their businesses, but need assistance in growing the business. These more advanced courses may cover topics such as growth strategies, business planning, and customer relations. In addition to training courses, some providers also may offer seminars on specific business types (e.g., child-care businesses), e-commerce, or accounting software packages. Business Counseling. All Project GATE grant participants may meet one-on-one with a business counselor to receive assistance with their specific businesses or business ideas. The amount of business counseling received should be tailored to the needs of the participants. Suggested topics to be covered in business counseling sessions may include refinement of the business idea, business plan writing and development, marketing, budget and cash flow projections, and availability of financing. For those in need of financing for their businesses, the counselors may provide assistance in applying for loans from the SBA or other funding sources. Individual business counseling is an important and effective strategy for assisting entrepreneurs with their business needs. Existing small business owners who do not need classroom training often use one-on-one business counseling to work through specific business issues. Individuals at the business start-up phase often use technical assistance to help work through specific issues after completing classroom training. Not only do these sessions provide practical advice on business-related issues, but they also allow counselors the opportunity to provide emotional support and encouragement when participants face difficulties in the business development process. Background Information for Category 2--Getting Ahead of the Curve: Raising Educational/Skill Levels of Workers in Declining Industries: Today's global economy is marked by tremendous advancements in communication, travel, and trade--allowing individuals instant access to commerce from almost anywhere in the world. At the same time, American businesses find themselves competing not only with companies across the street, but also with companies around the globe. As a result, many companies are streamlining or reinventing their operations. Long-term employees in these companies find themselves at a disadvantage because of outdated skills. Because of their skill deficit, they face dislocation not only in the face of plant closures or relocations but in the case of reinvention, where companies and industries must modify their core competency and skill requirements to remain competitive in the global marketplace. The roots of the workforce investment system were designed to meet the needs of a different economy than we are in today. The system was designed for an economy characterized by interchangeable labor, cyclical layoffs, and employers that, for the most part, required a workforce with no more than a high school diploma from workers. In the 21st century globally competitive economy, it is becoming increasingly important that the workforce investment system act as a strategic partner in regional economic and talent development. A critical part of talent development that helps create a competitive advantage for a region is to develop innovative strategies to assist businesses in layoff aversion by raising the education and skill levels of workers in declining or at-risk industries, or industries that are transforming. This requires strategic partnerships with employers, education and training providers at all levels, including apprenticeship providers, economic development entities, local, regional, and state governments, the philanthropic community, faith-based and community organizations, research institutions, and other civic leaders with a stake in economic growth and talent development. 1. Getting Ahead of the Curve Demonstration Under this category, the strategies employed to upgrade workers skills should be designed to (a) meet employers' critical skill needs, enhancing employers' ability to avoid layoffs; and/or (b) provide workers with updated transferable skills to enhance their ability to transition to other occupations and/or careers. Solutions should examine the concept of career lattices based on competencies. The objective is to enhance the value of workers to their current employer and to raise their education and skill levels to position them to quickly move into new jobs, either within or outside their current employer/industry if their current jobs are eliminated. 2. Necessary Project Components Applications under this category must consist of the following two components: (1) Development of an ``early warning system'' for tracking declining industries/businesses. The early warning system can involve coordination and evaluation of current activities as well as creation of new activities. (2) Engagement with businesses in declining industries, such as traditional manufacturing, or transforming industries that require new skill sets, such as information technology and advanced manufacturing, to collaboratively develop strategies to raise the education and skill levels of the current workforce. This may be focused on either lay-off aversion or to position workers to advance in their current careers, while increasing worker productivity, but it also supports their potential need to transition to other occupations if employment in the industry or business is no longer viable. It is ETA's expectation that workers will receive training as part of grant activities. Early Warning System and engagement with businesses in at-risk industries to provide training: In 1988, Congress passed the Worker Adjustment and Retraining Notification (WARN) Act to provide workers with sufficient time to prepare for the transition between the jobs they currently hold and new jobs. The WARN Act requires employers to provide written notice at least 60 calendar days in advance of covered plant closings and mass layoffs. Once receiving a WARN notice, state and local workforce agencies engage the employer and its employees in rapid response activities. Additionally, many states have created their own regulations around advanced notices that place further restrictions on employers. These models, while valuable, represent a more reactive approach to assisting both employers and workers and are also limited in their coverage. In today's global economy, rapid response and other actions targeting individuals at risk for dislocation need to be proactive rather than reactive. In fact, proactive strategies targeting businesses at-risk for closure or realignment and employees at-risk for dislocation are a vital part of retaining competitive advantage in a regional economic and talent development framework. Some state and local workforce agencies are working with employers and other state agencies to create ``early warning'' systems. These systems track companies and industries that are likely to experience closures, move to another location/state, experience layoffs, or face industry transformation that requires a substantive change in skill requirements. This demonstration intends to support the development and implementation of replicable models for early warning systems. Using the early warning systems, the workforce [[Page 28513]] investment system and its partners should work together to provide workers at risk for layoff with training to upgrade their skills. 3. Early Warning System Requirements Early warning enables the workforce investment system and its economic development, education, and other partners to strategically deploy regional assets to support industry transformation and up-skill or re-skill the workforce to ensure successful transitions into new occupations and industries. Early warning systems will vary based on the needs in each state and region, however they should include at a minimum: Strong collaboration with state Labor Market Information departments to understand how and where the state and regional economy is transitioning and how to identify declining industries and companies. Partnerships between the workforce investment system at the state and local levels, governmental and non-governmental economic development agencies at the state and local levels, educational entities at all levels, businesses, industry associations, and outplacement firms. Additionally, optional partners include philanthropic organizations, faith and community-based organizations, governmental and non-governmental education agencies, and labor management organizations if applicable. Aligning the resources and activities of different federal, state, and local governments. For example rapid response, Regional Innovation Grants, Trade Act funding (including the Trade Adjustment Assistance for Firms program operated under the Department of Commerce's Economic Development Administration (EDA)), state and local WIA dislocated worker funds, federal, state, and local economic development resources (such as EDA grants), and any other federal and state resources that align with the goals of serving dislocated workers. Leveraging resources from governmental and non- governmental partners. Outreach and education strategies to business and industry about benefits of collaboration. Creation of a replication model to be disseminated to other workforce agencies. A plan for sustainability beyond the life of the grant. It is expected that by the end of year one of the grant, the grantee will have established an early warning system and that the grantee will constantly assess and evaluate the effectiveness of their model and make changes as needed. 4. Business Engagement Strategies and Training Requirement A regional economy's competitiveness depends on the skills of its workers. According to the Bureau of Labor Statistics, Americans now average 14 jobs between the ages of 18 and 34--or approximately one new job every 14 months. This statistic demonstrates the need for a flexible workforce that receives competency-based training as part of a lifelong learning strategy. Workers with outdated skills in declining industries represent untapped potential that can be difficult to reach. The purpose of this component is to support the development of partnerships and business engagement strategies that ultimately result in these workers receiving competency-based training to allow them to quickly adapt to changes in their current occupation or industry or move to new industries should their current environment no longer present viable career options. ETA's goal is not only to enhance the value of workers in their current jobs but also to position them to move into new jobs quickly if their current jobs are eliminated. Declining industries are not defined in this solicitation but ETA intends them to be those traditional industries that have been in decline for the past decade, such as traditional manufacturing, textiles, furniture production, tobacco, etc. Transforming industries are also not strictly defined but are intended to be those facing significant changes in the skill requirements of their occupations and career ladders due to shifts in the industry requirements, such as information technology and advanced manufacturing. Applicants who make a persuasive case that a non-traditional industry is in decline or transforming in their area will also be considered. Business engagement strategies will vary based on the needs of the state and applicants are encouraged to be innovative in their proposed activities. Applicants' business engagement strategies and subsequent training strategies may focus on outreach to affected businesses and industries, lay-off aversion, increasing worker productivity, and/or positioning workers to advance in their current careers. However, training must also support workers' potential need to transition to other occupations if the industry or business is no longer viable. ETA intends grants to include a planning period of up to one year to identify declining, at-risk, or transforming industries, build business and education partnerships, and understand training strategies that will respond to the needs of employers and workers in the context of the regional economy. Years two and three are intended to serve as the implementation period, when the workforce investment system will use the early warning system to identify specific employers, identify or design appropriate incumbent-worker training programs, and deliver training to workers at risk for layoff. The one-year planning period should include, at a minimum, the following elements: Partnership with economic development organizations, business and industry, and education and training providers to create a consensus about skills gaps between the skills of the industry or industries in decline and growth sectors and the skills that are needed in the 21st century industry competencies. This may include development and administration of assessments, surveys of employers and industry associations, identification of requirements in current industry certifications, and a mapping of the existing skills areas against those that are needed. Partnership with the One-Stop Career Center system and its partners and faith and community-based organizations to examine support options to support participant success in education and training programs. Connection to ongoing activities with similar goals, such as Regional Innovation Grants, Base Realignment and Closure activities, Workforce Innovation in Regional Economic Development Grants, and other federal, state or local efforts that have begun planning or are implementing activities in the area. Identification of existing education and training models, remediation models, competency-based models, career ladders, curricula, and other materials. Identification of, or where necessary development of, curricula, competency-based models, career ladders, and other materials to support training. Creation of a sustainability plan to continue engagement with at-risk businesses after the grant ends. The implementation period should be a minimum of two years and it may overlap with the planning period. The implementation phase should incorporate the information gathered through the Early Warning System created in year one of the grant. The [[Page 28514]] implementation period should include, at a minimum, the following elements: Partnerships with education and training providers to provide the necessary education and training to individuals at risk for dislocation including work readiness; remediation; science, technology, engineering and math (STEM); and other industry required competencies and curricula. Leveraging financial and non-financial resources to support training, including existing curricula, space, equipment, faculty, and other resources. Outcomes appropriate to the nature of the solution, including the number of businesses impacted, the return of investment to the business, the number of individuals who receive services, the number of individuals who receive training, the number of individuals who complete training, the number of credentials awarded, ETA's common measures (entered employment, employment retention, average earnings), wage gains, promotions, and other outcomes determined important by the applicant. Outcomes for each grantee will be negotiated following grant award based on the information contained in their grant agreement and the needs of ETA's independent evaluation of the demonstration if applicable. Creation of a replication model to be disseminated to other workforce agencies. Background Information for Category 3--Innovative Adult Learning Models for Dislocated Workers: Applicants may only submit an application under one of the following options: Option A--Innovative Adult Learning Strategies or Option B--Innovative Earn/Learn Models Using Apprenticeship. This background information is relevant to both options. More than three million jobs have been lost between 1998 and 2003, with 2.7 million lost since the immediate pre-recession year of 2000. Manufacturing job losses have primarily been in traditional sectors such as automotive and textiles, and now with the economic slowdown, layoffs are projected in finance, construction and other industries. Many of these are jobs that will likely not come back. The 21st century economy demands a workforce with postsecondary education credentials, and the adaptability to respond immediately to changing economic and business needs. Innovative approaches need to be tried to retrain and retool dislocated workers for high-demand jobs in industries that will be here for the long term and can provide wages comparable to what they have been earning such as Information Technology, Healthcare, Biotechnology, Advanced Manufacturing, Energy and others. The public workforce investment system plays a leadership role in meeting these demands by catalyzing the implementation of innovative talent development and lifelong learning strategies that will enable American workers to advance their skills and remain competitive in the global economy. 1. Innovative Adult Learning Models Demonstration This demonstration is focused on creating new or identifying existing innovative strategies for educating and training dislocated workers. These strategies must address the issues commonly faced by dislocated workers including: (1) The need to earn income while in training, (2) the need for basic skills remediation, particularly for STEM\1\ areas and literacy, to achieve skill levels required for education and training programs, (3) difficulty learning in traditional education formats, (4) accelerated learning options to shorten the time of skills upgrading. Applicants may only submit an application under one of the following options: Option A--Innovative Adult Learning Strategies or Option B--Innovative Earn/Learn Models Using Apprenticeship. Applicants may only submit an application under one option. --------------------------------------------------------------------------- \1\ Science, Technology, Engineering and Mathematics. --------------------------------------------------------------------------- Option A--Innovative Adult Learning Strategies (Including, But Not Limited to Earn/Learn) A.1. Adult Learning Strategies Demonstration Under this option, projects will focus on identifying successful adult learning education and training models and implementing a demonstration of the model or models in a state, region, or local area targeting adult dislocated workers. Projects will adapt the education and training model, which may have been developed for adult populations in specific target populations, and demonstrate the viability of the model in helping workers learn new skills at a faster and more in-depth rate while allowing the ability to earn income. Education and training must focus on state, regional, or local high-growth, high-demand industries. This demonstration will require strong partnerships among State Workforce Agencies, state and local workforce investment boards, One-Stop Career Centers, businesses (existing or new partners), education and training providers including community colleges, adult and vocational education providers, 4-year universities, other training providers, and community or faith based organizations. A.2. Necessary Project Components Applicants will identify innovative adult learning strategies and models that address the needs dislocated workers have for: accelerated time to credential, blended learning strategies, remediation in foundational academics, different learning environments, and accessing learning on different schedules and using different modalities. These models may not include apprenticeship components, but may include on- the-job training. Applicants will select a least one model to be adapted for their demonstration. Each applicant must determine what high-growth, high-demand industries are driving their economy and where there are job and skill shortages. This should be done in collaboration with state Labor Market Information agencies, economic development agencies, business and industry partners, and education and training providers. This model will require a formal partnership between the applicant SWA and at least one entity from each of the following: local workforce investment board/One-Stop Career Center; an education or training provider, and an individual business or industry association. Multiple partners in these categories are not required but are strongly encouraged. Economic development organizations and faith and community- based organizations are not required but are also strongly encouraged. The SWA, in conjunction with its local workforce investment board(s) will oversee the design and operation of this demonstration. It is expected that the demonstration will accomplish a seamless transition for dislocated workers who will be retrained under the innovative adult learning strategy or model for jobs in high-growth and high-demand industries. Using leveraged resources, incentives may be provided to dislocated workers including, but not limited to, wrap around supportive services including stipends. However, it is not ETA's intent to have grant funds used in the provision of supportive services under this component. A.3. Project Requirements The Innovative Adult Learning Strategies Demonstration is not intended to fund the creation of entirely new training models. Rather, projects should be innovative in how they adapt existing models to the adult dislocated [[Page 28515]] worker population and be tailored to the specific needs of workers in their region. Applications must include, but are not limited, to the following elements: A demonstration of need in the area of the demonstration, including identification of: the dislocated worker pool, the high- growth, high-demand industries in the area, the occupations on which to focus retraining efforts, the skills and competencies required in those occupations, and the assets the currently exist for the project to leverage. A description of the roles of current and future partners in the grant and the leveraged resources they will bring to the table. A description of how the innovative training model was identified and selected to be adapted for demonstration. A discussion of the ways in which the model will need to be adapted to meet the education and training needs of the targeted dislocated workers including the need to earn while they learn, an accelerated timeline, remediation, and different learning schedules and modalities. Additionally, applicants should describe anticipated skill assessments and mapping to high growth, high demand industries. A description of the projected number of individuals to be trained under the grants and the expected outcomes including ETA's common measures (entered employment, employment retention, and average earnings), the number of credentials awarded, and other outcomes determined important by the applicant. Specific outcomes for each grantee will be negotiated following grant award based on the information contained in their grant agreement and the needs of ETA's independent evaluation of the demonstration if applicable. A commitment to documenting the training model in such a way that the model can be disseminated to other workforce agencies. Option B--Innovative Earn/Learn Model Using Apprenticeship B.1. Earn/Learn Using Apprenticeship Demonstration This option focuses on demonstrating innovative and fresh approaches in retraining and re-skilling adult learners and dislocated workers through Registered Apprenticeship in high-demand industries. Projects must demonstrate the viability of the model in helping adult workers learn new skills at a faster and more in-depth rate for high growth industries such as advanced manufacturing, biotechnology, energy, health care, and information technology. This demonstration will require strong partnerships among WIA state agencies, Workforce Investment Boards, One-Stop Career Centers, businesses (existing or potential apprenticeship sponsors), labor organizations, industry, education/training providers, Registered Apprenticeship offices (the federal Office of Apprenticeship or a State Apprenticeship Agency) and any other appropriate federal or state offices or other entities with resources that can be leveraged to make the project a success. The strategy may be incorporated into regional economic development goals to build a globally competitive and prepared workforce. A goal of this option is to develop and register new apprenticeship programs to serve dislocated workers and adult learners. Registered Apprenticeship is a critical postsecondary education, training, and employment option available in every state in the country, and is an important component of talent development strategies. The model is an excellent option for dislocated workers and others who are transitioning from declining industries to new occupations because it provides immediate employment for apprentices. Registered Apprenticeship is a national training system that combines paid learning on-the-job and related technical and theoretical instruction in a skilled occupation with guaranteed wage structures. As an ``earn-while-you-learn'' model, Registered Apprenticeship is particularly attractive for dislocated workers with families and financial obligations who must have a paycheck while they gain additional education or workforce skills while transitioning to a new career. Most dislocated workers may not be able to go to school full time without benefit of a job. Registered Apprenticeships provide access to education and training that may not otherwise be accessible to many adults. Additionally, regions that adopt robust Registered Apprenticeship programs in the context of economic development strategies create seamless pipelines of skilled workers and flexible career pathways to meet current and future workforce demands. Upon completion of the apprenticeship, apprentices earn certificates that are recognized nationwide as portable industry credentials. Many apprenticeship programs-particularly in high-growth industries such as health care, advanced manufacturing and transportation--also offer interim credentials and training certificates based on a competency model that leads to a Certificate of Completion. There may be beginning, intermediate, advanced, and specialty certification levels. Registered Apprenticeship programs also allow credit for previous apprenticeship-related experience. Registered Apprenticeship is a highly versatile training strategy that aligns with and advances the goals of key workforce investment system initiatives. By coordinating and collaborating with the knowledgeable professionals that make up the Registered Apprenticeship system, the workforce system can increase the quality of its services to both its employer and worker customers and enhance activities in support of current workforce system priorities. B.2. Necessary Project Components Applicants will develop a registered apprenticeship model that targets dislocated workers and adult learners to help them transition into a high-demand industry. The Registered Apprenticeship programs are expected to produce skilled workers that are in demand in a minimum of one high-growth industry in local area(s) where dislocation occurs. Each location must determine what high-demand industries are driving their economy and where there are job and skill shortages. This model will require applicants to form formal partnerships and/or consortia among WIA, employers (current and/or potential apprenticeship sponsors), organized labor, employer associations, educational institutions, state apprenticeship agencies, or the federal Office of Apprenticeship and other entities whose resources can be leveraged to make the program a success. Members of the partnership/consortium will oversee the design and operation of this initiative. It is expected that the project will accomplish a seamless transition for adult learners and dislocated workers who will be retrained through Registered Apprenticeship for high demand jobs in industries that will be here for a long time and can provide wages comparable to what they have been earning. Using leveraged resources, incentives may be provided including, but not limited to, wrap around supportive services including stipends. However, it is not ETA's intent to have grant funds used in the provision of supportive services under this component. Projects should be innovative, fresh approaches to retraining and re-skilling dislocated workers and mature adult learners for high- demand jobs. The following are possible models and linkages with registered apprenticeship [[Page 28516]] to transition dislocated workers to new industries and which consortia/ partnerships may want to test. However, applicants are not limited to these suggestions. Identify companies and geographic areas with large concentrations of requests for H-1B visas and develop a demonstration to train and employ dislocated workers to fill these jobs. Develop a demonstration which leverages competency-based registered apprenticeship occupations. Develop models and linkages with registered apprenticeship to transition workers to the nuclear and alternative energy industries drawing from laid off workers in these communities. Explore options for developing ``green collar'' apprenticeships. Promote Registered Apprenticeship as a career development strategy in industries with high turnover. B.3. Project Requirements Additionally, applicants must include the following in their grant application: Description of model. Description of the types of High Growth Industry apprenticeable occupations in which the registered apprenticeship program's plans to train and employ workers. Description of each partner's role in recruiting, selecting, training, placing and retaining workers in registered apprenticeships in the project. Strategies for identifying the employers who will train and employ Adult Learners and/or Dislocated Workers. Discuss in detail how the applicant and its partnership/ consortium plan to: (1) Conduct outreach strategies to declining businesses and industries; (2) outreach strategies to industries that will employ the dislocated and/or mature adult workers; (3) conduct outreach strategies and orientation sessions to recruit dislocated workers into education and training; (4) utilize support groups and facilitating networks for Dislocated Workers in registered apprenticeships, on or off the job site, to improve their retention. Description of all services that will be offered and who will provide them. Describe how the partners will assure that there are or will be suitable and appropriate positions available in the High Growth Industry registered apprenticeship programs. Activities and Timeline. Description of Outcomes. Please note, ETA will consider the successful placement of a minimum of 50 Adult learners and/or Dislocated Workers in High Growth industry registered apprenticeships the primary successful outcome a grantee can achieve. Budget. Background Information for Category 4--Preventing Dislocations of TANF Recipients Moving Into Entry Level Jobs Subject to Economic Churn: 1. Preventing Dislocations of TANF Recipients Demonstration Since the passage of the Temporary Assistance to Needy Families (TANF) program in 1996, there has been success in transitioning individuals off welfare and into transitional employment. Transitional employment opportunities typically are located on the lowest rung of the career ladder and require work readiness and basic education and skill training. These positions are most susceptible to churn resulting from economic shifts that cause employment opportunities to grow and contract on a regular basis depending on the state of the economy or the season. The result is individuals cycling between low-level employment and government assistance, such as unemployment insurance benefits and food stamps. Former TANF recipients who have moved into employment are becoming the next generation of employees most at risk for dislocation. Given that unemployment insurance is becoming the new safety net for those former TANF recipients that are moving into the workforce, the goal of this demonstration is to provide additional education and training to former TANF recipients, who have successfully entered transitional employment, to move them up the career ladder in the high- growth, high-demand sectors of healthcare, hospitality, and retail resulting in: (1) An increase in the employment retention of former TANF recipients, (2) a reduction in the number of former TANF recipients that are unemployed, and (3) an increase in earnings for former TANF recipients through placement in career-ladder positions to enable them to achieve self sufficiency. This will require partnerships with the TANF system at the state and local level, education and training providers including adult education and community colleges, and business and industry. 2. Necessary Project Components Applicants must include the following project components: partner roles and industry focus. These are described in detail below. Partner Roles. Required partners in this demonstration include: the State Workforce Agency (applicant) and at least one entity from each of the following categories: local workforce investment board and One-Stop Career Center, state TANF agency, local TANF agency, community or technical college, adult or vocational education provider, business and industry, and faith and community-based organizations. Additional partners are encouraged, but not required, including economic development agencies, the state adult education agency, K-12 high school systems, four year universities, and philanthropic organizations. Partners must submit letters of commitment detailing their roles in the project. At a minimum, the partner should contribute the following to the demonstration: The State Workforce Agency should be responsible for coordinating the work of the partners and reaching out to other state agencies. Local workforce investment boards and One-Stop Career Centers should at a minimum: Work with state or local TANF agencies to identify former TANF recipients who obtained successful entered transitional employment but (1) are currently receiving unemployment insurance or (2) are at risk of unemployment; Assess and refer candidates to trainings; and Track outcomes of candidates. State and local TANF agencies should work with the local workforce investment system to identify former TANF recipients for training; share expertise and models in moving individuals into employment; and leveraging resources where appropriate. Community Colleges should map the competencies needed to advance up the chosen career ladder, assist in design and provision of remediation, and provide education and training. Adult or Vocational Education Providers should assist in the design and provision of remediation, and provide education and training. Business and Industry partners should assist in identifying individuals for the demonstration, identify career ladder opportunities, and work with education and training partners to develop demand-driven training to move individuals up career ladders. Faith and Community Based Organizations should share expertise in successful strategies for working with the target population and should provide outreach and wrap around support services as needed. For applicants partnering with faith and community based organizations please visit http://www.dol.gov/cfbci/accesspoints.htm for specific mechanisms and strategies for integrating these organizations into the proposal. Additional partners, including those listed above, will enhance the depth and [[Page 28517]] breadth of the demonstration and are strongly encouraged. Industry Focus. This project is intended to be a sectoral demonstration focused on the healthcare, hospitality, and retail industries. Education and training must be focused on career ladder opportunities in one of these industries. Examples of career-ladder based education and training programs already demonstrated either under the High Growth Job Training Initiative and Community-Based Job Training Grants and by state and local areas, educational institutions and non-profit organizations can be found at www.workforce3one.org. The Workforce3 One Web site is a valuable resource for information about demand-driven projects of the workforce investment system, educators, employers, and economic development representatives. ETA encourages applicants to look to existing education and training models that may be adaptable to serve the target population and goals outlined in this Solicitation. 3. Project Requirements ETA is seeking innovative solutions to address the goal of moving former-TANF recipients up the career ladder in the healthcare, hospitality, and retail industries. The demonstration should meet the needs of former TANF recipients as well as business and industry. In addition, ETA is looking for demonstrations that include at least two of the following components: Use of college-bridge programs for individuals with low skills. Bridge programs offer a way for low-skilled individuals to successfully complete education and training in a college environment. The bridge program offers an intermediate step between the individual's current position and full integration into college-level coursework; Use of contextualized learning to integrate basic skills remediation into industry skills training curricula; Use of on-the-job training or other learn/earn education strategies; ``Grow your own'' strategies with employers committing to education and training onsite to advance employees in low-level positions and partnering with state and local workforce and TANF agencies to backfill entry-level positions with individuals currently receiving TANF but who are ready to move into transitional employment; Non-traditional education models that utilize flexible schedules to accommodate individuals' work and family schedules; Development of modularized credit-based courses that allow individuals to break up certificate or degree programs into shorter, more manageable tracks; or Inclusion of career counseling and mentors. Part II. Award Information 1. Award Amount ETA anticipates awarding between 16 and 20 grants under this solicitation, with individual grants ranging in value from $500,000 to $2 million. However, this does not preclude ETA from funding grants at either a lower or higher amount, or funding a smaller or larger number of projects, based on the type and the number of quality submissions. Applicants are encouraged to submit budgets for quality projects at whatever funding level is appropriate to their project. 2. Period of Performance The period of grant performance will be up to 36 months from the date of execution of the grant documents. This performance period shall include all necessary implementation and start-up activities, participant follow-up for performance outcomes, and grant close-out activities. ETA may elect to exercise its option to award no-cost extensions to grants for an additional period, based on the success of the program and other relevant factors, if the grantee requests, and provides a significant justification for, such an extension. 3. Leveraged Resources Under this funding opportunity, ETA is not requiring the applicants to provide leveraged resources. However, projects funded under this solicitation should leverage resources per the rating criteria from key entities in the strategic partnership. Businesses, faith-based and community organizations, economic development entities, education systems, and philanthropic foundations often invest resources to support workforce development. In addition, other federal, state, and local government programs may have resources available that can be integrated into the proposed project. Examples of such programs include other Department of Labor programs such as registered apprenticeship, as well as non-DOL One-Stop partner programs such as Vocational Rehabilitation, Adult Education, and Department of Education Pell Grants. As applicable, applications will be scored based on the quality and the degree to which the source and use of leveraged funds are clearly explained and the extent to which they are integrated into the project in support of grant outcomes. Leveraging resources in the context of strategic partnerships accomplishes three goals: (1) It allows for the strategic pursuit of resources; (2) it increases stakeholder investment in the project at all levels including design and implementation phases; and (3) it broadens the impact of the project itself. Applicants are encouraged to leverage significant resources from key partners and other organizations to maximize the impact of the project on the community. Leveraged Resources include the value of goods and services that would be allowable costs if paid for with grant funds whether incurred as a cost by the recipient or a sub-recipient and paid for with either non-federal or federal dollars, or provided as volunteer services valued in accordance with the provisions at 29 CFR part 95.23(d) and (e) or part 97.24(c)(1) and (2), as appropriate. Also, leveraged resources are subject to monitoring reviews. Partnering organizations may provide resources such as supportive services, mentoring, tutoring, and volunteers--all of which are important for grantees to leverage when assisting certain individuals targeted by these funds. For applicants who choose to leverage resources, please include the following information in the technical proposal: (1) The total amount leveraged from federal sources; (2) the total amount leveraged from non-federal sources; (3) the partners contributing the resources; and (4) the projected activities, broken out by the source of the leveraged resource (federal or nonfederal), to be implemented utilizing these resources. Applicants should address leveraged resources (as applicable) in the technical proposal but should not reflect the leveraged resources on the SF424A form. ETA encourages applicants and their strategic partners to be entrepreneurial as they seek out, utilize, and sustain these resources, whether they are in-kind or cash contributions, when creating strategic partnerships under this solicitation. 4. Funding Restrictions Determinations of allowable costs will be made in accordance with the applicable Federal cost principles. Disallowed costs are those charges to a grant that the grantor agency or its representative determines not to be allowed in accordance with the applicable Federal cost principles or other conditions contained in the grant. Applicants will not be entitled to reimbursement of pre-award costs. Limitations on Cost Per Participant. Since training costs may vary considerably depending on the skills and competencies required, flexibility [[Page 28518]] will be provided on cost per participant. However, applications for funding will be reviewed to determine if the cost of the training is appropriate and will produce the outcomes identified. Applicants should demonstrate that the proposed cost per participant is aligned with existing price structures for similar training in the local area or other areas with similar characteristics. When calculating cost per participant, applicants must distinguish between non-training and training costs utilizing grant funds. Indirect Costs. As specified in the Office of Management and Budget Circular Cost Principles, indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular cost objective. An indirect cost rate (ICR) is required when an organization operates under more than one grant or other activity whether Federally-assisted or not. Organizations must use the ICR supplied by the cognizant Federal agency. If an organization requires a new ICR or has a pending ICR, the Grant Officer will award a temporary billing rate for 90 days until a provisional rate can be issued. This rate is based on the fact that an organization has not established an ICR agreement. Within this 90 day period, the organization must submit an acceptable indirect cost proposal to their Federal cognizant agency to obtain a provisional ICR. Administrative Costs. An entity that receives a grant to carry out a project or program under one of the categories in this solicitation may not use more than 10 percent of the amount of the grant to pay administrative costs associated with the program or project. Administrative costs could be both direct and indirect costs and are defined at 20 CFR 667.220. Administrative costs do not need to be identified separately from program costs on the Standard Form 424A Budget Information Form. Administrative costs should be discussed in the budget narrative and tracked through the grantee's accounting system. To claim any administrative costs that are also indirect costs, the applicant must obtain an indirect cost rate agreement from its Federal cognizant agency as specified above. Use of Funds for Supportive Services. It is not ETA's intent for grant funds to be used for the provision of supportive services, such as transportation and childcare, including funds provided through stipends for such purposes. However, applicants are encouraged to identify strategic partners as appropriate who can provide these services as leveraged resources. If supportive services are proposed as an integral part of the project, use of grant funds for this purpose will require a one-time approval from the Grant Officer prior to the grantee incurring these costs. Salary and Bonus Limitations. None of the funds appropriated in Public Law 109-149, Public Law 110-5, or prior Acts under the heading ``Employment and Training'' that are available for expenditure on or after June 15, 2006, shall be used by a recipient or sub-recipient of such funds to pay the salary and bonuses of an individual, either as direct costs or indirect costs, at a rate in excess of Executive Level II, except as provided for under section 101 of Public Law 109-149. This limitation shall not apply to vendors providing goods and services as defined in Office of Management and Budget (OMB) Circular A-133. See Training and Employment Guidance Letter number 5-06 for further clarification: http://wdr.doleta.gov/directives/corr-- doc.cfm?DOCN=2262. Legal Rules Pertaining to Inherently Religious Activities by Organizations that Receive Federal Financial Assistance. The government is generally prohibited from providing direct financial assistance for inherently religious activities (please see 29 CFR part 2, subpart D). These grants may not be used for religious instruction, worship, prayer, proselytizing or other inherently religious activities except as provided in those regulations. Neutral, non-religious criteria that neither favors nor disfavors religion will be employed in the selection of grant recipients and must be employed by grantees in the selection of sub-recipients. ETA Intellectual Property Rights. Applicants should note that grantees must agree to provide ETA a paid-up, nonexclusive and irrevocable license to reproduce, publish, or otherwise use for Federal purposes all products developed or for which ownership was purchased under an award, including but not limited to curricula, training models, technical assistance products, and any related materials, and to authorize them to do so. Such uses include, but are not limited to, the right to modify and distribute such products worldwide by any means, electronically or otherwise. Distribution Rights. Selected applicants must agree to give ETA the right to use and distribute all materials developed with grant funds such as training models, curricula, technical assistance products, etc. Materials developed with grant resources are in the public domain; therefore, ETA has the right to use, reuse, modify, and distribute all grant-funded materials and products to any interested party, including broad distribution to the public workforce investment system via the Internet or other means. Part III. Eligibility Information 1. Eligible Applicants. Eligible applicants for the grants under all categories shall be SWAs including the five territories of Puerto Rico, Virgin Islands, Guam, Northern Mariana Islands and American Samoa. Each SWA would be required to identify the local workforce investment boards and One-Stop Career Center as established under Section 121 of WIA, [29 U.S.C. 2841] that would be participating in the proposed project. Applicants must submit a letter of commitment from each of the partners participating in the proposed project. 2. Participant Eligibility Requirements Dislocated Workers. Under Categories 1, 3 and 4, the eligible participants for these demonstrations are dislocated workers. Dislocated Workers eligibility is defined under WIA Section 101(9) as follows. The term ``dislocated worker'' means an individual who-- (A)(i) has been terminated or laid off, or who has received a notice of termination or layoff, from employment; (ii)(I) is eligible for or has exhausted entitlement to unemployment compensation; or (II) has been employed for a duration sufficient to demonstrate, to the appropriate entity at a one-stop center referred to in section 134(c), attachment to the workforce, but is not eligible for unemployment compensation due to insufficient earnings or having performed services for an employer that were not covered under a State unemployment compensation law; and (iii) is unlikely to return to a previous industry or occupation; (B)(i) has been terminated or laid off, or has received a notice of termination or layoff, from employment as a result of any permanent closure of, or any substantial layoff at, a plant, facility, or enterprise; (ii) is employed at a facility at which the employer has made a general announcement that such facility will close within 180 days; or (iii) for purposes of eligibility to receive services other than training services described in section 134(d)(4), intensive services described in section 134(d)(3), or supportive services, is employed at a facility at which the employer has made a general announcement that such facility will close; (C) was self-employed (including employment as a farmer, a rancher, or [[Page 28519]] a fisherman) but is unemployed as a result of general economic conditions in the community in which the individual resides or because of natural disasters; or (D) is a displaced homemaker. Incumbent Workers. Under Category 2, the eligible participants are incumbent workers at risk for dislocation. Incumbent Workers at risk for dislocation are defined as those workers who are in declining, at risk, or transforming industries who are in need of skill upgrades to avert lay off in the their current position or to obtain new employment in the same or a different industry should their current employment no longer be viable. TANF Recipients. Under Category 4, eligible participants will meet the definition of a dislocated worker as stated above and will have received assistance under the Temporary Assistance for Needy Families Act within the past five years. Veterans Priority. The Jobs for Veterans Act (Pub. L. 107-288) provides priority of service to veterans and spouses of certain veterans for the receipt of employment, training, and placement services in any job training program directly funded, in whole or in part, by the Department of Labor. In circumstances where a grantee must choose between two equally qualified candidates for training, one of whom is a veteran, the Jobs for Veterans Act requires that the grantee give the veteran priority of service by admitting him or her into the program. Please note that, to obtain priority of service, a veteran must meet the program's eligibility requirements. ETA Training and Employment Guidance Le