Preparing Ex-Offenders for the Workplace Through Beneficiary-Choice Contracting; Solicitation for Grant Applications, 19026-19039 [E7-7151]

Agencies

• Employment and Training Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 72, Number 72 (Monday, April 16, 2007)]
[Notices]
[Pages 19026-19039]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7151]


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DEPARTMENT OF LABOR

Employment and Training Administration


Preparing Ex-Offenders for the Workplace Through Beneficiary-
Choice Contracting; Solicitation for Grant Applications

    Announcement Type: New. Notice of solicitation for grant 
applications.
    Funding Opportunity Number: SGA/DFA PY-06-14.
    Catalog of Federal Domestic Assistance (CFDA) Number: 17,261.
    Key Dates: The closing date for receipt of applications under this 
announcement is May 25, 2007. Applications must be received no later 
than 4 p.m. (Eastern Time). Application and submission information is 
explained in detail in Section IV of this SGA.
    There will be an informational webinar held for this grant 
competition. Information on the date/time of this webinar and a 
recording for applicants who cannot attend will be available on 
www.dol.gov/cfbci.
    Summary: The Employment and Training Administration (ETA), U.S. 
Department of Labor (DOL), announces the availability of approximately 
$5 million in Responsible Reintegration of Youthful Offender grant 
funds to address the specific workforce challenges of ex-offenders and 
produce positive outcomes with a particular focus on employment and 
reduced recidivism. Projects funded under this competition will be 
consistent with both DOL's Youth Vision and President Bush's Faith-
Based and Community Initiative.
    Grant funds awarded under this competition will be used to 
implement a program of services for ex-offenders (ages 18 to 29) under 
a beneficiary-choice contracting model. The beneficiary choice 
contracting model, to be explained more fully later, involves providing 
program participants with an independent choice among multiple service 
providers for specific services. Participants will receive case 
management services from the grantee, but will choose among contracted 
specialized service providers for more in-depth services, including 
soft-skills training and long-term follow up on participant outcomes. 
The grantee will compensate the contracted specialized service 
providers on a per capita basis for services provided, as well as per 
capita performance-based incentives.
    The overarching objective of these programs will be to help ex-
offenders receive services and training, enter and retain employment, 
and avoid recidivism. Each application must provide evidence of 
partnerships with a network of faith-based and community organizations 
(FBCOs), the public workforce investment system and the criminal 
justice system. Strategic partnerships between business representatives 
from high-growth/high-demand industries and the education and training 
community are also encouraged. It is anticipated that individual awards 
will average $1,000,000 for the first year of operation to serve 225 
participants per site.
    Supplementary Information: This solicitation provides background 
information on Beneficiary Choice Contracting and critical elements 
required of projects funded under the solicitation. It also describes 
the application submission requirements, the process that eligible 
applicants must use to apply for funds covered by this solicitation, 
and how grantees will be selected. This announcement consists of eight 
parts:
     Part I provides background information on Beneficiary 
Choice Contracting, DOL's Youth Vision, and The President's Faith-Based 
and Community Initiative.
     Part II describes the size and nature of the anticipated 
awards.
     Part III describes the qualifications of an eligible 
applicant.
     Part IV provides information on the application and 
submission process.
     Part V explains the review process and rating criteria 
that will be used to evaluate applications.
     Part VI provides award administration information.
     Part VII contains ETA contact information.
     Part VIII contains other information for applicants.

Part I. Funding Opportunity Description

1. Background

    Experts estimate that each year more than 650,000 inmates are 
released from Federal and State prisons and return to their communities 
and families. The return of these ex-prisoners threatens the fragile 
cohesion in many of the most troubled neighborhoods in America. Without 
help, a majority of ex-prisoners return to criminal activity. For 
example, according to the U.S. Department of Justice, 68 percent of 
inmates will be charged with new crimes within three years of their 
release from prison, and 47 percent will be reconvicted.
    Released prisoners face a myriad of challenges that contribute to a 
return to criminal activity, re-arrest, and re-incarceration. 
Joblessness among ex-prisoners has been broadly linked to recidivism 
rates. Statistics reveal that even before incarceration, adult 
prisoners demonstrate weak or non-existent ties to the workforce. Data 
from 1997 show that nearly one-third of adult prisoners were unemployed 
in the month before their arrest, compared to seven percent 
unemployment in the general population. Post-incarceration employment 
rates only get worse--unemployment among ex-prisoners has been 
estimated at between 25 and 40 percent. Likewise, prisoners also 
demonstrate low levels of educational attainment. Nineteen percent of 
adult State prisoners are completely illiterate and 40 percent are 
functionally illiterate; over half of State parole entrants were not 
high school graduates and as many as eleven percent had an eighth grade 
education or less.
    Research has also broadly documented the substance abuse and mental 
health issues of ex-prisoners--factors that are likely to contribute to 
poor education levels, lack of employability, and a return to criminal 
activity. A study of parolees from State prisons in 1999 found that 84 
percent had been using an illegal drug or abusing alcohol at the time 
of their offense. One-quarter had been alcohol dependent and one-
quarter had been IV drug users. Fourteen percent had a mental illness 
and twelve percent were homeless at the time of their arrest. In some 
States, nearly one-quarter of parole revocations were related to drug-
related violations.
    In returning to criminal activity, ex-prisoners contribute to the 
presence of violence and crime in already struggling neighborhoods and 
reduce their own chances of living healthy and positive lives or 
contributing to their families. Research indicates that parental loss 
is related to a host of poor outcomes for children that include 
poverty, drug abuse, educational failure, criminal behavior, and 
premature death. Healthy and consistent relationships between parents 
and children strengthen the community by positively impacting both 
generations. Ex-offenders with strong family and community ties have 
greater success in reintegrating into the community and avoiding 
incarceration.
    In order to successfully reintegrate into the community, it is 
essential that

[[Page 19027]]

ex-offenders possess the skills and support necessary to enter and 
compete in the workforce. This solicitation is designed to draw on the 
unique strengths of faith-based and community organizations that may 
not readily partner with the government under more typical funding 
mechanisms. These organizations will serve as a primary partner for 
social service delivery to ex-prisoners, offering highly personalized 
support as well as a direct link into the communities to which the ex-
prisoners are returning. The program also seeks to coordinate the 
provision of these services with judicial system supervision of the 
released prisoners by working with parole and probation officers.
    Community-based partners are well suited for this work because they 
can provide the resources and infrastructure necessary to intervene in 
the lives of returnees and interrupt cycles of crime and incarceration. 
This grant will rely heavily on FBCOs to develop relationships and 
ensure connections to rehabilitation services for the formerly 
incarcerated. Research indicates that faith-based and community 
institutions are among the strongest, most trusted institutions in the 
urban neighborhoods to which the majority of released inmates will 
return. Local faith-based and community organizations possess many 
resources at their command--including buildings, volunteers, the 
respect of the community and a rich tradition of outreach and service. 
Churches, mosques, temples, service organizations, and community 
centers can be especially significant in impoverished urban areas, 
where FBCOs have historically had a strong presence.
    Many FBCOs also possess a proven ability to work collaboratively 
with other service providers and justice agencies for the delivery of 
social services. This is a vital asset since many FBCOs in poor urban 
neighborhoods are small and possess limited financial resources. To 
effectively ensure connections to job training and social services, 
they must build collaborations with other public and private 
organizations. A substantial number of inner-city faith-based and 
community leaders already operate re-entry programs. This initiative 
will help develop and expand these programs that provide job training, 
mentoring and other transitional services that help ex-offenders avoid 
recidivism and become contributing members of their communities.
Objectives
    This program is designed to operate via a beneficiary-choice 
contracting model. Under this model, the individual receiving 
government-funded services (beneficiary) is offered a genuine and 
independent choice among multiple providers. Each provider offers the 
same core services, as well as a unique combination of related 
services. Since service providers are allowed flexibility in the 
combination of and approach to services they offer, this model fosters 
a diversity of service styles in service delivery. This diversity, in 
turn, enables each recipient to choose the provider best suited to his 
or her unique needs and encourages a greater personal engagement as the 
recipient takes ownership in choosing among a variety of services and 
providers. The approach allows flexibility and freedom to both 
participants and providers, and enables organizations that might be 
disinclined to partner with the government in a more constrained 
environment to consider doing so.
    Grant objectives for this program include:
     Positive outcomes for participants, including lower 
recidivism, successful employment and increased job retention;
     Drawing upon the unique strengths of many faith-based and 
community groups that may not readily partner with the government under 
more typical funding mechanisms; and
     Serving as a model for Federal, State and local agencies 
looking to implement beneficiary-choice contracting.
Service Model
    Grants will be awarded to faith-based and community organizations, 
Workforce Investment Boards, One-Stop Career Centers, corrections 
agencies, and other State or local agencies. The grantee will act as 
the central services coordinator (services coordinator). Participants 
can be recruited in many different ways, including by referrals to the 
services coordinator directly by the courts, parole agencies, criminal 
justice agencies, local One-Stop Career Centers, Youth Build programs 
or other service providers. A referral network of service providers 
must also be developed and maintained by each grantee.
Services Coordinator
    Participants will be enrolled by the services coordinator, which 
will provide case management and referral to program services. The 
services coordinator will conduct an initial assessment of the 
participant's needs and interests and then offer him or her a genuine 
and independent choice among a variety of approved specialized service 
providers for in-depth services. The participant will make this choice 
based on summaries of the specialized service providers that include a 
description of the services offered (both core and specialized) by each 
sub-contractor (listed below). This participant choice must be free, 
independent and informed. The service coordinator may discuss the 
participants needs discovered in the initial assessment, but once the 
choice process has begun, each participant must make the choice of 
specialized service providers based on the neutral information given to 
him or her by the service coordinator.
    The services coordinator will provide case management to all 
participants that enroll in the program. The services coordinator will 
also manage relationships and contracts with its network of specialized 
service providers. Expenditures by the services coordinator on its own 
activities and expenses cannot account for more than 40% of grant 
funds. This includes funds reserved for services and program 
administration, including technical assistance and oversight. At least 
60% must be spent on services for participants through specialized 
service providers serving program participants.
    All grantee sites must include access to a wide variety of services 
that ex-offenders need to successfully transition into employment. As 
services coordinators, grantee organizations will:
     Identify and recruit participants;
     Provide basic intake services, including assessment of 
needs and interests;
     Offer each participant a genuine and independent choice 
among service providers--including at least one provider of non-
religious-based services;
     Require informed consent forms of individuals choosing 
services that contain religious content;
     Provide ongoing case management;
     Aid recipients in making full use of all services 
available through local One-Stop Career Center systems, including, when 
possible, Individual Training Accounts;
     Develop a referral process for services. Through this 
referral process the service coordinator will ensure that there is a 
provider of non-religious-based (secular) service for every religious-
based service offered;
     Recruit employers that are willing to employ program 
participants; and
     Develop a data collection strategy.

[[Page 19028]]

    As manager of its contracts with specialized service providers, 
grantee organizations will:
     Design guidelines and baseline criteria for service 
provider organizations' participation. These objective criteria would 
require a level of quality in basic services offered. In addition, 
preference in selecting specialized service provider sub-contractors 
should be given to organizations that provide a diverse offering of 
supplementary services;
     Recruit a minimum of five specialized service providers--
including FBCOs;
     Ensure at least one specialized service provider that 
offers non-religious-based services;
     Establish performance-based contracts with service 
provider organizations;
     Oversee grant data collection procedures and compilation;
     Aid service providers in compliance with necessary 
reporting and other compliance issues;
     Deliver contract payment to service providers; and
     Perform all other aspects of managing the Federal grant--
including fiscal controls and responsibility.
    After obtaining the consent of the participant, the services 
coordinator must share information including basic contact information, 
assessment information and any other pertinent information with the 
chosen service provider. Case management must also be provided in 
coordination with the specialized service provider so as to minimize 
duplication and confusion for the participant.
    Service coordinators must also develop a referral system to address 
participant needs beyond those addressed by the core services offered. 
The service coordinator must develop a functional referral system to 
provide participants referrals to other specialized services beyond 
core services that might not be met through specialized service 
providers. Through this referral process the service coordinator will 
ensure that that there is at least one provider of non-religious-based 
(secular) service if that same specialized service is offered through 
religious-based service by the sub-contractors. Services that the 
coordinator may provide referrals for include transitional housing, 
substance abuse treatment, health services (including mental health 
services and counseling), continuing education system (including 
alternative schools and community colleges), and the One-Stop Career 
Center. The services coordinator will maintain relationships with 
organizations/entities offering these specialized services and must 
keep updated information on each referral partner to ensure there is 
always a current list of referral partners. This referral list must be 
kept separate from the specialized service provider list. However, 
specialized service providers may also be listed on this referral list.
Specialized Service Provider
    Based upon an established performance-based contract with the grant 
recipient organization (services coordinator), specialized service 
provider organizations will offer specific services to participants. A 
single organization or its affiliates, cannot serve as both coordinator 
and a specialized service provider.
    The services coordinator will offer the participant a genuine and 
independent choice of providers. The services coordinator will then 
refer the participant to the chosen specialized services provider. The 
specialized service provider will receive both the participant and 
their needs assessment from the services coordinator. The specialized 
service provider will then use both the prior assessment and its own 
in-person meetings with the participant to develop an individual 
services plan, which will serve as a guide for both the provider and 
the participant as he/she works through the program. Any case 
management provided by the specialized service provider must also be 
coordinated with the services coordinator so as to minimize duplication 
and confusion for the participant.
    All specialized service providers will be required to provide the 
following core services:
     Work readiness training (e.g. soft skills, life skills 
and/or basic skills);
     Career counseling (e.g. one-on-one or group mentoring); 
and
     Follow-up on participants' post program outcomes for a 
minimum of six months.
    In addition to core services, it is expected that specialized 
service providers offer other useful services for ex-offenders 
transitioning into the workplace. These supplementary services, offered 
either directly or through partnerships with other organizations, could 
include:
     Counseling (including anger management, addiction, family, 
social reintegration, etc.)
     Transitional housing
     Substance abuse and alcohol prevention
     Child care services
     Mentoring
     English proficiency courses
     Job placement
     Alternative secondary school offerings (GED preparation)
     Financial literacy
     Job retention services
     Supportive services (e.g. bus passes, interview clothing, 
fees for GED testing, etc.)
     Tutoring, study skills training, instruction, and degree 
attainment (e.g. GED, Associates Degree or technical certificate)
    Specialized service providers will be compensated on a per-capita 
basis based upon their contract with the services coordinator. Partial 
compensation will be provided on a per-capita basis after the 
participant has enrolled in the program. The remainder payment(s) will 
be based on attainment of specific outcomes: completion of course 
curriculum, job placement, job retention and non-recidivism.
    Specialized service providers will be responsible for tracking 
outcomes on clients served, services provided, completion of services 
rendered, job placement, job retention, earnings and recidivism. 
Specialized service providers must report back to the services 
coordinator on all the services received and outcomes for participants 
served under the grant.
    As part of the grant application process, the applicant must submit 
a detailed Memorandum of Agreement (MOA) with at least three 
specialized service providers that describe the specialized service 
provider's firm commitment to act as a subcontractor in the program. 
This MOA will describe the role of the services coordinator and 
specialized service provider, the core and supplementary services to be 
provided, and the method of payment for these services. A minimum of 
five specialized service providers must be a part of each grant program 
when services begin. Specialized service providers include faith-based 
and community organizations. Specialized service providers are to be 
selected without regard to religious character affiliation, or lack 
thereof. At least one specialized service provider at each site, 
however, must offer non-religious-based (secular) services. 
Participants may not choose more than one specialized service provider 
from whom to receive core services.
Partnership With Workforce Investment System
    A grantee must develop a functioning referral system with its local 
One-Stop Career Center and Workforce Investment Board. While the nature 
of these referral relationships will vary, grantees may enter into 
agreements with the

[[Page 19029]]

workforce investment system to assist with assessments of participants, 
development of individual employment service strategies, enrollment in 
training programs, and placement into jobs.
    As part of the application process, the applicant must submit an 
MOA with their local Workforce Investment Board/One-Stop Operator that 
describes the One-Stop Operator's firm commitment to entering into, at 
a minimum, a formal referral partnership with the applicant. This 
formal partnership should produce two-way client referrals from the 
One-Stop Career Center to the applicant and from the applicant to the 
One-Stop Career Center on which the applicant will be required to 
report, as well as appropriate access to One-Stop Career Center 
resources. The MOA must describe that the One-Stop Operator has 
acknowledged that the applicant organization is complementing the 
services provided by the One-Stop Career Center. If an agreement with 
the One-Stop Operator is not provided, the applicant should, at a 
minimum, demonstrate that the One-Stop Operator was contacted and 
provided a sufficient opportunity for response.
Partnership With Local Corrections Agency
    The applicant must also submit an MOA from at least one local 
corrections agency with which the applicant will work on this project. 
This document will also describe the corrections agency's firm 
commitment to entering a formal referral partnership with the 
applicant.
    This formal partnership will produce referrals from the local 
detention facility to the grantee. This may include pre-release 
sessions with soon-to-be-released inmates on the nature of the programs 
and developing important pre-release relationships, especially in the 
area of mentoring, where appropriate. The agreement must describe that 
the corrections agency has acknowledged that the applicant organization 
and its subcontractors will provide reentry services that will assist 
former inmates. If an agreement with the local corrections agency is 
not provided, the applicant should, at a minimum, demonstrate that the 
agency was contacted and provided sufficient opportunity for response. 
Similar agreements with parole and probation agencies are also 
encouraged.
Outcomes
    As this is an employment-focused program, the U.S. Department of 
Labor is funding specific employment-based services and outcomes. Four 
outcome measures will be used to measure success in these grants: 
Entered employment rate, employment retention rate, earnings, and 
recidivism rate. In addition, grantees will report on a number of 
leading indicators that will serve as predictors of success. Leading 
indicators will include: Enrollment rate; participation in education/
training; workforce preparation; mentoring; attainment of degrees and 
certificates; reduced substance abuse; proportion of enrollees in 
stable housing (beyond 90 days post-release); and proportion of 
enrollees complying with parole conditions. In applying for these 
grants, grantees and their sub-contractors agree to submit updated 
Management Information System (MIS) data on enrollee characteristics, 
services provided, placements, outcomes, and follow-up status.
Evaluation
    There will be a formal evaluation of this initiative. In applying 
for these grants, applicants and their sub-contractors agree to 
cooperate in this evaluation by providing enrollment and participation 
data and other information during all years of the project.

2. DOL's Youth Vision

    The White House Taskforce on Disadvantaged Youth notes that despite 
the billions of Federal, State, local, and private dollars spent on 
needy youth and their families, many out-of-school, at-risk youth are 
currently being left behind in our economy because of a lack of program 
focus and emphasis on outcomes. Well-designed and coordinated programs 
offer youth who have become disconnected from mainstream institutions 
and systems additional opportunities to successfully transition to 
adult roles and responsibilities. DOL's Youth Vision focuses on four 
major areas: Improving alternative education services to youth, meeting 
the demands of business, especially in high-growth industries and 
occupations, serving the neediest youth, and improving program 
performance. Applicants are encouraged to demonstrate a commitment to 
these objectives in their program design and application.

3. The President's Faith-Based and Community Initiative

    President Bush's Faith-Based and Community Initiative is built on a 
simple conviction: America can do better for our neighbors in need when 
we enlist every partner willing to join in service. Advancing this goal 
first requires ensuring a ``level playing field'' for all organizations 
willing to join with the government in service, including ones that may 
have been excluded in the past. The Center for Faith-Based and 
Community Initiatives at the U.S. Department of Labor (the Center) has 
worked to eliminate any barriers preventing effective organizations 
from partnering with the government. Equally important, the Center 
works with all agencies of the Department of Labor to cultivate public/
nonprofit/private partnerships nationwide to make its services both 
more comprehensive and more effective.
    A critical aspect of removing barriers and forging new partnerships 
involves expanding opportunities for choice-based social services. In 
addition, because participants make an independent choice among 
providers, the organizations providing services enjoy greater 
flexibility to incorporate elements that would not otherwise be 
permitted in more typical government-funded programs, including 
religious aspects. This freedom results in a broader and more diverse 
social safety net since organizations that may have had little interest 
in partnering with government programs under more typical scenarios may 
be willing to become providers of government-funded services. While 
more traditional social services may be ideal for some program 
participants, others may benefit tremendously from the unique and 
innovative programs offered by new providers. The opportunity to make 
real choices can also serve to empower program participants and 
increase their sense of engagement in the services they receive.
    Whatever the social service may be, faith-based and community 
organizations have an indispensable role to play. Their networks of 
dedicated volunteers, local knowledge, and deep roots in their 
communities provide a tremendous complement to more traditional 
government-funded programs. This enables maximum impact for taxpayer 
dollars. Most significantly, the service of faith-based and community 
organizations can have a deep and abiding impact on the individuals 
they serve and the community as a whole.
    Applicants are encouraged to demonstrate a commitment to these 
objectives in their program design and application.

4. Areas of ETA Emphasis for This SGA

    ETA has developed six areas of emphasis for projects funded through 
this SGA: (1) Increasing service provider choice for ex-offenders 
returning to their communities; (2) helping ex-offenders connect to 
local FBCOs to receive support services that increase

[[Page 19030]]

attachment to the labor market; (3) building strategic partnerships; 
(4) leveraging resources; (5) achieving high-performance outcomes; and 
(6) replicability. These areas of emphasis are taken into account in 
the evaluation of proposals.
     Increasing Service Provider Choice for Ex-Offenders 
Returning to Their Communities. This SGA places great emphasis on 
ensuring that participants are able to choose the organization and 
services that will best suit their needs. Not only does this give the 
participant a sense of ownership of the program, it also enables him/
her to select the services that address their specific needs. This SGA 
also requires a diverse assortment of providers for the participant to 
choose from. It is anticipated that broader choices and greater 
participant engagement will provide higher employment and lower 
recidivism among participants.
     Helping Ex-Offenders Connect to Local FBCOs To Receive 
Support Services That Increase Attachment to the Labor Market. Faith-
based and community organizations are well equipped to provide aid and 
support to people in need. Many such organizations have been serving 
for decades in some of America's most resource-poor neighborhoods, and 
are strengthened by dedicated volunteers, local knowledge, and deep 
roots in their communities. This SGA will help establish formalized 
links with FBCOs that already provide many valuable support services to 
ex-offenders returning to the community, and will draw upon their 
strengths to provide support that will enable ex-offenders to succeed 
in the workplace and avoid repeating past mistakes.
     Building Strategic Partnerships. ETA believes that 
strategic partnerships between faith-based and community organizations 
and the public workforce investment system, business and industry 
representatives, the correctional system, and education and training 
providers such as community colleges, are vital to ensuring that 
participants gain the skills and competencies necessary to enter and 
advance in the workplace.
    In order to maximize success, each partner must be engaged in its 
area of strength and have a clearly defined role in the partnership. 
For example, faith-based and community organizations can provide a 
highly personal connection to participants, as well as services that 
can prove decisive in job retention, such as mentoring and soft-skills 
training. Employers provide work-based opportunities for participants. 
Community colleges and other education and training providers assist in 
providing training for new and incumbent workers. The corrections 
system makes referrals to the program and can provide external impetus 
to participants for their own success. The workforce investment system 
may assist with the assessments of participants, develop individual 
service strategies, enroll them in training programs, place trained 
participants into jobs and conduct follow-up. A wide range of other 
partner roles and responsibilities can be included in the design and 
implementation of a beneficiary-choice model.
     Leveraging Resources. Applicants should utilize funds and 
resources from other entities. Leveraging resources in the context of 
strategic partnerships accomplishes three goals: (1) using the entirety 
of resources available through a clearly defined strategy; (2) 
increasing stakeholder investment in the project at all levels, 
including design and implementation phases; and (3) broadening the 
impact of the project itself.
    Businesses, faith-based and community organizations, and 
foundations often invest resources to support workforce development. In 
addition, other government programs may provide resources, including 
WIA funds reserved for Statewide activities, local WIA Youth formula 
funds, State juvenile justice funds, Federal No Child Left Behind 
education funds, Chaffee, Runaway and Homeless funds and State 
education funds. ETA encourages applicants and their partners to be 
entrepreneurial as they seek out, utilize, and sustain these resources 
while creating effective, innovative projects for ex-offenders.
    Applicants will be rated in part on their ability to demonstrate 
commitments of leveraged resources. These leveraged resources may be 
either in-kind or cash contributions. Please note, Rating Criteria D 
specifically awards points for the use of leveraged resources. While 
the failure to offer leveraged resources as a part of an application 
will not preclude consideration of the application, it will place the 
applicant at a significant disadvantage since one of the evaluation 
criteria evaluates the quality of leveraged resources. Applicants must 
describe in detail how such leveraged funds will be used and 
demonstrate how these funds will contribute to the goals of the 
project.
     High Performance Outcomes. DOL expects that 225 ex-
offenders through the adult criminal justice system will be served 
during the first year of operation at each site awarded a grant under 
this SGA. The measured outcomes for this initiative will include 
education or job training, placement in employment, increased 
retention, and reduced recidivism. The ultimate success of this project 
will hinge upon the strength of these quantifiable results.
     Replicability. As mentioned above, this SGA will test the 
beneficiary-choice model in the context of services provided to ex-
offenders. If successful, materials will be created from this program 
that will provide substantive guidance to Federal, State and local 
agencies for implementation of beneficiary-choice contracting--both in 
reentry services and a wide array of other government-funded services.

5. Examples of Projects That Could Be Funded Under This Solicitation

    Types of projects that could be funded under this SGA include, but 
are not limited to, the following examples. Please note that these are 
only examples, and applicants are encouraged to propose alternative 
approaches. All proposals will be judged on their own merits.
Example 1
    Project Hope of Sklar County, a non-profit 501(c)(3) organization, 
is awarded a $1,000,000 grant under the Beneficiary-Choice Contracting 
Pilot Program. It will serve as the central services coordinator. 
Project Hope formalizes its plans and documents laying out the services 
it and its future partners will provide, and then aggressively 
publicizes an informational meeting for social service providers that 
would be willing to contract with Project Hope to serve ex-offenders.
    Ultimately, Project Hope enters formal contracts with six non-
profit organizations and one for-profit organization: Dreams Unlimited, 
Kronberg Service Center, Shepherd of the Valley Fellowship, The Sklar 
Jewish Union, Anglican Ministries, and Briggs Work Aid, Inc. Project 
Hope will be known as the ``services coordinator,'' and the six 
contractors will be known as specialized service providers. At least 
one of the non-profit organizations, Kronberg Service Center, will 
offer an entirely non-religious program, as does Briggs Work Aid, Inc.
    Project Hope will identify and recruit ex-offenders, working 
closely with the local criminal justice agency. It will provide basic 
intake services and needs assessments to each participant, and offer 
participants information on the differences between each of the six 
specialized service providers. Participants are then free to choose 
from among the six providers for the services

[[Page 19031]]

they will receive. Participants that opt to receive services with 
religious content must sign an informed consent form.
    In addition to its contractual relationships with the specialized 
service providers, Project Hope will provide participants with an in-
depth referral list of service providers that includes both religious-
based and non-religious-based (secular) specialized services. In 
addition, it maintains regular contact with the local One-Stop Career 
Center, ensuring that participants make full use of all services 
available through the local One-Stop Career Center, including 
Individual Training Accounts to address their needs beyond those met by 
the core services provided.
    Once the participant is referred to the specialized service 
provider, Project Hope will continue to provide overall case 
management, ensure that the participant has access to other available 
complementary resources, and compile data collection on all 
participants.
    Under the terms of the contracts, each of the six organizations 
will provide certain core services, including work readiness training 
(e.g. soft skills, life skills and/or basic skills), career counseling 
and follow-up with participants post program activity. In addition, 
each organization will make a unique combination of supplementary 
services available to the participants it serves. For example, Dreams 
Unlimited offers counseling, substance abuse prevention training, 
English proficiency courses, financial literacy education and job 
placement services. Both the Kronberg Service Center and Shepherd of 
the Valley Fellowship offer one-on-one mentoring, GED preparation, and 
child care services. Sklar Jewish Union offers group mentoring, 
individual counseling, and a six-month residential substance abuse 
recovery program. Anglican Ministries provides transitional housing and 
child care services. Briggs Work Aid, Inc provides job placement and 
retention services as well as several different supportive services 
including bus passes and appropriate interview attire.
    The contracts set out clear guidelines for compensation to the 
specialized service providers, which is provided monthly on a per 
capita basis. Project Hope will provide $500 for each participant that 
chooses and is subsequently registered by a specialized service 
provider. It will then provide $400 for each participant that completes 
the specialized service providers' soft skills curriculum. Project Hope 
will provide additional performance-based compensation of $1,800 per 
participant that achieves one of three major milestones: Holding 
unsubsidized employment for more than 90 days, completing an accredited 
vocational training certification or at least one semester at an 
accredited institution of higher learning, or acquiring a GED.
    Project Hope will contribute $75,000 of its own funds so that it 
can serve approximately 300 participants rather than the minimum of 
225. In addition, it has received a $100,000 grant from the Lokkesmoe 
Foundation that Project Hope will use to pay the community college or 
vocational school fees of participants that opt to seek further 
education.
Example 2
    The local One-Stop Career Center serves as the services coordinator 
and enters contracts with specialized service providers to deliver 
services. The One-Stop Career Center will provide all of the services 
of the services coordinator listed above--identify and recruit ex-
offenders, identify and recruit specialized service providers, provide 
basic intake services, including assessment of needs and interests, 
offer each participant a choice among service providers (including at 
least one provider of non-religious-based (secular) services), require 
informed consent forms of individuals choosing services with religious 
content and provide case management. The One-Stop Career Center will 
also be uniquely suited to making full use of all training and 
placement services available through the workforce investment system--
including, when possible, Individual Training Accounts. In addition to 
its contractual relationships with the specialized service providers, 
the One-Stop Career Center will provide participants with an in-depth 
referral list of service providers that includes both religious-based 
and non-religious-based (secular) services.
    As grant manager, the One-Stop Career Center is also responsible 
for designing guidelines for specialized service providers' 
participation, recruiting providers of targeted services, ensuring at 
least one provider of non-religious services, establishing performance-
based contracts with the provider organizations, overseeing grant data 
collection procedures and compilation and fiscal controls, delivering 
contract payment to service providers, and performing all other aspects 
of managing the Federal grant. The One-Stop Career Center also has an 
agreement with the local criminal justice agency for participant 
recruitment purposes.
    The network of specialized service providers is composed of faith-
based and community organizations (FBCOs) as well as other service 
providers.
    Each specialized service provider must enter a contract committing 
to provide soft-skills training (i.e. work readiness, life skills and/
or basic skills), career counseling and long-term follow up, and most 
providers provide supplementary services. Providers receive 
compensation of $300 as a registration fee for each participant that 
chooses to enter their program. In addition, providers will receive 
$900 for each participant that completes the soft-skills training 
offered by the provider. They will receive $900 if the participant 
remains out of prison for 90 days. They will receive $500 if the 
participant remains retained in employment for 90 days, and an 
additional $500 for 180 days of employment. (The One-Stop Career Center 
is aware that if all participants achieved performance goals, the cost 
of $3,100 per participant it would add up to more than the grant 
provides. However, the One-Stop Career Center will make up for this 
short-fall both by additional financial contributions and the fact that 
a certain percentage of program participants will not achieve 
performance goals.)

Part II. Award Information

1. Award Amount

    ETA intends to fund grants for five projects, to serve 225 
individuals (age 18 to 29) through the adult criminal justice system, 
per year, at an average annual grant amount of $1,000,000 per site. 
Applicants may submit proposals within the range of $800,000 to 
$1,200,000. A larger or smaller amount may be requested based on the 
number of participants proposed to serve, but deviations from this 
amount must be clearly justified in the application.

2. Period of Performance

    The period of grant performance will be 22 months from the date of 
execution of the grant document. This performance period shall include 
4 months of organizational preparation, 12 months of service delivery, 
and six months of follow-up data collection. Depending on the 
availability of funds and satisfactory performance, additional years of 
funding may be available for these grants. In addition, ETA may elect 
to exercise its option to award no-cost extensions to these grants for 
an additional period based on the satisfactory progress of the program 
in placing participants in jobs, education, training, mentoring, and 
reducing the recidivism of participants.
    The probability of continuation of grants beyond the initial period 
of grant

[[Page 19032]]

performance will be greatly reduced for those grantees that do not 
begin providing services by the end of the first four months. No more 
than ten percent of the services coordinator budget is to be used in 
the four-month planning period. Grantees are expected to reserve a 
portion of their grant funding to continue to report on recidivism and 
employment outcomes for up to six months after services end.

Part III. Eligibility Information

1. Eligible Applicants

    Applicants must be either a faith-based or community organization 
that is exempt from taxation pursuant to 26 U.S.C. 501(c)(3) at the 
time of application submission, or a government agency (such as a 
Workforce Investment Board, One-Stop Career Center, corrections agency, 
State or local government, housing authority). The applicant will be 
the lead organization that will represent a partnership system that 
consists of the public workforce system, the local corrections agency 
and other social services providers (including faith-based and 
community organizations). At least one of the contracted specialized 
service providers offered to participants must offer a program that 
contains no religious content.
    As stated above, applicants must demonstrate the existence of a 
partnership with both their local Workforce Investment Board/One-Stop 
Career Center system and their local corrections agency. In addition to 
relationships with both these organizations and specialized services 
sub-contractors, collaborations are also encouraged with other 
entities, including child welfare and foster care agencies, substance 
abuse treatment providers, social service agencies, education and 
training providers, business representatives, transitional housing 
providers, health care providers, etc. These providers may fill a role 
as sub-grantees. A single organization, or its affiliates, cannot serve 
as both coordinator and specialized service provider.
    ETA expects to make five awards including a minimum of two to 
faith-based and community organizations.

2. Grantee Resources

    There is no matching requirement for these grants. However, 
applicants will be rated in part on their ability to demonstrate 
commitments of leveraged resources.

3. Other Eligibility Requirements

    Beneficiary Eligibility. Individuals aged 18 to 29 who have been 
convicted of a Federal or State crime through the adult criminal 
justice system, are returning from a State institution, and are not 
currently enrolled in a traditional program may be served by these 
grants. This includes but is not limited to individuals returning from 
correctional facilities or detention centers, half-way houses, and 
those under State supervision that have transitioned from a State 
prison to a local jail prior to release. Participants must enroll in 
the program within 60 days after release from the criminal justice 
system.
    Veterans Priority. This program is subject to the provisions of the 
``Jobs for Veterans Act,'' (Pub. L. 107-288, 38 U.S.C. 4215), which 
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 DOL. To obtain priority of service, a veteran must meet the 
program's eligibility requirements. ETA Training and Employment 
Guidance Letter (TEGL) No. 5-03 (Sept. 16, 2003) at https://
www.doleta.gov/Seniors/other_docs/TEN5_03_VETS.pdf provides general 
guidance on the scope of the veterans priority statute and its effect 
on current employment and training programs.

Part IV. Application and Submission Information

1. Address To Request Application Package

    This announcement includes all information and links to forms 
needed to apply for this funding opportunity.

2. Content and Form of Application Submission

    The proposal must consist of two (2) separate and distinct parts, 
Parts I and II. Applications that fail to adhere to the instructions in 
this section will be considered non-responsive and will not be 
considered.
    Part I of the proposal is the Cost Proposal and must include the 
following three items:
     The Standard Form (SF) 424, ``Application for Federal 
Assistance'' (also available at https://www.grants.gov/agencies/
approved_standard_forms.jsp#1). The SF 424 must clearly identify the 
applicant and be signed by an individual with authority to enter into a 
grant agreement. Upon confirmation of an award, the individual signing 
the SF424 on behalf of the applicant shall be considered the authorized 
representative of the applicant.
     All applicants for Federal grant and funding opportunities 
are required to have a Dun and Bradstreet (DUNS) number. See Office of 
Management and Budget (OMB) Notice of Final Policy Issuance, 68 FR 
38402 (June 27, 2003). Applicants must supply their DUNS number on the 
SF 424. The DUNS number is a nine-digit identification number that 
uniquely identifies business entities. Obtaining a DUNS number is easy 
and there is no charge. To obtain a DUNS number, access this Web site: 
https://www.dunandbradstreet.com or call 1-866-705-5711.
     The Budget Information Form SF 424A (available at https://
www.doleta.gov/sga/forms.cfm). In preparing the SF 424A, the applicant 
must provide a concise narrative explanation to support the request. 
The budget narrative should break down the budget and leveraged 
resources by the project activities specified in the technical proposal 
and should discuss precisely how the administrative costs support the 
project goals. The budget narrative must also provide a detailed back-
up budget that includes the number of staff to be hired by job title.
    Part II of the application is the Technical Proposal, which 
demonstrates the applicant's capabilities to plan and implement the 
grant project in accordance with the provisions of this SGA. The 
guidelines for the content of the Technical Proposal are provided in 
Section V(1) of this SGA; emphasis should be placed on the areas listed 
in Section I(4) of this SGA. The Technical Proposal is limited to 
fifteen (15) double-spaced, single-sided 8.5 inch by 11 inch pages with 
twelve point text font and one-inch margins. Any pages over the 15 page 
limit will not be reviewed.
    In addition, the applicant must provide:
     MOAs from the partnering agencies,
     MOAs from the specialized service providers,
     a time line outlining project activities, and a
     two-page Executive Summary summarizing the proposed 
project and applicant profile information including: (1) Applicant 
name; (2) project title; and (3) requested funding level.
    These additional materials do not count against the fifteen (15) 
page limit for the Technical Proposal. The additional materials may not 
exceed (15) fifteen pages in addition to the Technical Proposal.
    Please note that applicants that fail to provide a SF 424, SF 424A 
and/or a budget narrative will be removed from consideration prior to 
the technical

[[Page 19033]]

review process. If the proposal calls for integrating WIA or other 
Federal funds or includes other leveraged resources, these funds should 
not be listed on the SF 424 or SF 424A Budget Information Form, but 
should be described in the budget narrative and in Part II of the 
proposal. The amount of Federal funding requested for the entire period 
of performance should be shown together on the SF 424 and SF 424A 
Budget Information Form. Applicants are also encouraged, but not 
required, to submit OMB Survey No. 1890-0014: Survey on Ensuring Equal 
Opportunity for Applicants, which can be found at https://
www.doleta.gov/sga/forms.cfm.
    Except for the discussion of match and leveraged resources in 
response to the evaluation criteria, no cost data or reference to 
prices should be included in the technical proposal. Please note that 
applicants should not send letters of commitment or support separately 
to ETA because letters are tracked through a different system and will 
not be attached to the application for review.
    Applications may be submitted electronically on www.grants.gov or 
in hard-copy via U.S. mail, professional delivery service, or hand 
delivery. These processes are described in further detail in Section 
IV(3). Applicants submitting proposals in hard-copy must submit an 
original signed application (including the SF 424) and one (1) ``copy-
ready'' version free of bindings, staples or protruding tabs to ease in 
the reproduction of the proposal by DOL. Applicants submitting 
proposals in hard-copy are also requested, though not required, to 
provide an electronic copy of the proposal on CD-ROM.

3. Submissions Dates, Times, and Address

    The closing date for receipt of applications under this 
announcement is May 25, 2007. Applications must be received at the 
address below no later than 4 p.m. (Eastern Time), except as identified 
in the ``Late Applications'' paragraph below. Applications sent by e-
mail, telegram, or facsimile (FAX) will not be accepted. Applications 
that do not meet the conditions set forth in this notice will not be 
considered. No exceptions to the mailing and delivery requirements set 
forth in this notice will be granted.
    Mailed applications must be addressed to the U.S. Department of 
Labor, Employment and Training Administration, Division of Federal 
Assistance, Attention: Eric Luetkenhaus, Reference SGA/DFA PY-06-14, 
200 Constitution Avenue, NW., Room N4716, Washington, DC 20210. 
Applicants are advised that mail delivery in the Washington area may be 
delayed due to mail decontamination procedures. Hand delivered 
applications will be received at the above address.
    Applicants may apply online at https://www.grants.gov by the 
deadline specified above. Any application received after the deadline 
will not be accepted. For applicants submitting electronic applications 
via Grants.gov, please note that it may take several days to complete 
the ``Get Started'' steps to register with Grants.gov at https://
www.grants.gov/GetStarted. It is strongly recommended that these 
applicants immediately initiate this step in order to avoid unexpected 
delays that could result in the disqualification of their application. 
If submitted electronically through https://www.grants.gov, applicants 
should save application documents as a .doc or .pdf file.
    Late Applications. Any application received after the exact date 
and time specified for receipt at the office designated in this notice 
will not be considered, unless it is received before awards are made, 
was properly addressed, and: (a) Was sent by U.S. Postal Service 
registered or certified mail not later than the fifth calendar day 
before the date specified for receipt of applications (e.g., an 
application required to be received by the 20th of the month must be 
post marked by the 15th of that month) or (b) was sent by professional 
overnight delivery service or submitted on Grants.gov to the address 
not later than one working day prior to the date specified for receipt 
of applications. It is highly recommended that online submissions be 
completed one working day prior to the date specified for receipt of 
applications to ensure that the applicant still has the option to 
submit by overnight delivery service in the event of any electronic 
submission problems. ``Post marked'' means a printed, stamped or 
otherwise placed impression (exclusive of a postage meter machine 
impression) that is readily identifiable, without further action, as 
having been supplied or affixed on the date of mailing by an employee 
of the U.S. Postal Service. Therefore, applicants should request the 
postal clerk to place a legible hand cancellation ``bull's eye'' 
postmark on both the receipt and the package. Failure to adhere to the 
above instructions will be a basis for a determination of non-
responsiveness. Evidence of timely submission by a professional 
overnight delivery service must be demonstrated by equally reliable 
evidence created by the delivery service provider indicating the time 
and place of receipt.
    There will be an informational webinar held for this grant 
competition. Information on the date/time of this webinar and a 
recording for applicants who cannot attend will be available on https://
www.dol.gov/cfbci.

4. Intergovernmental Review

    This funding opportunity is not subject to Executive Order (EO) 
12372, ``Intergovernmental Review of Federal Programs.''

5. Funding Restrictions

    All proposal costs must be necessary and reasonable in accordance 
with Federal guidelines. Determinations of allowable costs will be made 
in accordance with the applicable Federal cost principles, as 
identified in OMB Circulars A-122, A-87, A-21 or at 48 CFR part 31 (See 
29 CFR 95.27, 97.22). 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.
    Regulations governing the treatment in government programs of 
religious organizations and religious activities can be found at 29 CFR 
part 2, subpart D. Grantees and subawardees are expected to be aware of 
and observe the regulations in this subpart. Provisions relating to the 
use of indirect Federal support, such as through vouchers or other 
choice mechanisms, are found within 29 CFR part 2, subpart D at 29 CFR 
2.33(c) and at 20 CFR 667.266. Additional information about the proper, 
constitutional use of ``indirect'' Federal financial assistance can be 
found in Training and Employment Guidance Letter (TEGL) 1-05. See 
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2088.
    Due to the fact that subawardees are paid through indirect funding 
(the beneficiary-choice contracting model), subawardees may make 
inherently religious activities (e.g. religious instruction, prayer, 
proselytizing, etc.) an integrated part of their federally-supported 
program and may require participants to participate in them. Indirect 
assistance may be used for religious activities, because the customer 
has exercised his/her genuine and independent choice by freely 
selecting the program with religious aspects or content from among a 
variety of options, both secular and religious. As a result, 
participation in the religious activities is considered voluntary. The

[[Page 19034]]

recipient, therefore, may use indirect Federal assistance to train a 
participant in religious activities. However, pursuant to Section 
188(a)(3) of the Workforce Investment Act of 1998, 29 U.S.C. 
2938(a)(3), a subawardee may not employ participants to construct, 
operate, or maintain any part of any facility that is used or to be 
used for religious instruction or as a place for religious worship 
(except with respect to the maintenance of a facility that is not 
primarily or inherently devoted to sectarian instruction or religious 
worship, in a case in which the organization operating the facility is 
part of a program or activity providing services to participants). See 
29 CFR 37.6(f).
    Indirect Costs. As specified in OMB 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. In order to utilize grant funds for indirect costs incurred, 
the applicant must obtain an Indirect Cost Rate Agreement with its 
Federal cognizant agency either before or shortly after the grant 
award.
    Administrative Costs. Under the WIA, Preparing Ex-Offenders for the 
Workplace through Beneficiary-Choice Contracting, an entity that 
receives a grant to carry out a project or program 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 SF 424A Budget Information Form. They should be 
discussed in the budget narrative and tracked through the grantee's 
accounting system. Although there will be administrative costs 
associated with the managing of the partnership as it relates to 
specific grant activity, the primary use of funding should be to 
support the actual training activity(ies). To claim any administrative 
costs that are also indirect costs, the applicant must obtain an 
indirect cost rate agreement as described above.
    Expenditures by the services coordinator on its own activities and 
expenses cannot account for more than 40% of total grant funds. This 
includes funds reserved for services and program administration, 
including technical assistance and oversight. At least 60% must be 
spent on services for participants through specialized service 
providers serving program participants.

6. Other Submission Requirements

    Withdrawal of Applications. Applications may be withdrawn by 
written notice or telegram (including mailgram) received at any time 
before an award is made. Applications may be withdrawn in person by the 
applicant or by an authorized representative thereof, if the 
representative signs a receipt for the proposal.

V. Application Review Information

1. Rating Criteria

    This section identifies and describes the criteria that will be 
used to evaluate the proposals submitted in response to this 
solicitation. These criteria and point values are:

------------------------------------------------------------------------
                           Criterion                             Points
------------------------------------------------------------------------
A. Need for the Project.......................................        10
B. Program Management and Organization Capacity...............        25
C. Project Design and Service Strategy........................        40
D. Linkages to Key Partners and Leveraged Resources...........        25
                                                               ---------
    Total Possible Points.....................................       100
------------------------------------------------------------------------

A. Need for the Project (10 Points)
    The applicant should demonstrate the need for the project by 
providing information on the number of ex-offenders in the area to be 
served and the justification of the need for the project in the 
community served by the grant. Use local data to identify the number of 
ex-offenders between the ages of 18 and 29 returning to your community 
through the adult criminal justice system and how this compares with 
the State or county as a whole. If there are particular neighborhoods 
within the city in which you plan to focus this grant, describe these 
neighborhoods and provide available data specific to that area. If 
possible, provide such data for the specific neighborhoods that you 
plan to serve rather than county-wide data.
    Discuss the services or lack of services in your area that exist to 
assist this population. Discuss the extent of criminal activity in the 
area that you will be serving and include all other information 
relevant to establishing the need for your project, including 
recidivism rate, crime rate, etc.
    Discuss the proposed service strategy; describe how it will address 
the lack of services available in the area targeted for the grant 
activities and how it will ensure that participants are prepared for 
and placed and retained in jobs.
    Scoring on this factor will be based on evidence of the following:
     The need in the area served, including the crime rate and 
annual number of returnees to your city, county, State and proposed 
targeted area; and
     The dearth of services provided to this population and how 
and why they need to be served.
     Your description of how the proposed service strategy will 
address the identified gaps and ensure that clients are prepared for, 
placed in, and retained in jobs.
B. Program Management and Organization Capacity (25 points)
    The applicant should demonstrate the capability of providing the 
services proposed and of acting as the Services Coord