Procurement Roles and Responsibilities for Job Corps Contracts, 64738-64740 [2019-25441]

Agencies

• Employment and Training Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 84, Number 227 (Monday, November 25, 2019)]
[Rules and Regulations]
[Pages 64738-64740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25441]


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DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 686

RIN 1205-AB96


Procurement Roles and Responsibilities for Job Corps Contracts

AGENCY: Employment and Training Administration, Labor.

ACTION: Final rule.

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SUMMARY: In this final rule, the Department of Labor (Department) makes 
two procedural changes to its Workforce Innovation and Opportunity Act 
(WIOA) Job Corps regulations to enable the Secretary to delegate 
procurement authority as it relates to the development and issuance of 
requests for proposals for the operation of Job Corps centers, outreach 
and admissions, career transitional services, and other operational 
support services. The Department is taking this procedural action to 
align regulatory provisions with the relevant WIOA statutory language 
and to provide greater flexibility for internal operations and 
management of the Job Corps program.

DATES: This final rule will become effective on December 26, 2019.

FOR FURTHER INFORMATION CONTACT: Heidi M. Casta, Deputy Administrator, 
Office of Policy Development and Research, U.S. Department of Labor, 
200 Constitution Avenue NW, Room N-5641, Washington, DC 20210; 
telephone (202) 693-3700 (this is not a toll-free number).
    Individuals with hearing or speech impairments may access the 
telephone number above via TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    The Department is amending two provisions of 20 CFR part 686, which 
implements subtitle C of title I of WIOA. Through these amendments, the 
Department is aligning these regulatory provisions with the language in 
WIOA by broadening the authority to issue contract solicitations from 
the Employment and Training Administration (ETA) to the Secretary of 
Labor. The Department is making this procedural change to the WIOA 
regulation to provide greater flexibility in the management and 
operation of the Job Corps program by allowing the Secretary of Labor 
to designate the component of the Department that is authorized to 
issue solicitations for the operation of Job Corps centers, outreach 
and admissions, career transitional services, and other operational 
support services. This change will provide the Department with the 
flexibility to more efficiently manage the Job Corps procurement 
process, which will in turn allow greater economies of scale and 
operational efficiencies. This rule is consistent with the President's 
Management Agenda Cross-Agency Priority (CAP) Goal Number 5--Sharing 
Quality Services. The Department is implementing this CAP, in part, via 
the Department's Enterprise-Wide Shared Services Initiatives whose 
primary goals are as follows:
    1. Improve human resources efficiency, effectiveness, and 
accountability;
    2. Provide modern technology solutions that empower the DOL

[[Page 64739]]

mission and serve the American public through collaboration and 
innovation;
    3. Maximize DOL's federal buying power through effective 
procurement management; and
    4. Safeguard fiscal integrity, and promote the effective and 
efficient use of resources.
    This rule will assist the Department's implementation of its 
Enterprise-Wide Shared Services Initiative.
    This rule is not an Executive Order 13771 regulatory action because 
this rule is not significant under Executive Order 12866.

II. Summary of Final Rule

    Sec. 147(a) of WIOA authorizes the Secretary of Labor to enter into 
agreements with eligible entities to operate Job Corps centers and to 
provide activities to a Job Corps center. Two provisions in the 
regulation implementing subtitle C of Title I of WIOA implement section 
147(a). Title 20 CFR 686.310(a) broadly states that the Secretary 
selects eligible entities to operate contract centers on a competitive 
basis in accordance with applicable statutes and regulations, and 20 
CFR 686.340(a) states that the Secretary selects eligible entities to 
provide outreach and admission, career transition, and operational 
support services on a competitive basis in accordance with applicable 
statutes and regulations. However, both provisions also specifically 
require ETA to develop and issue solicitations for these Job Corps 
contracts. These provisions are inconsistent with section 147(a) and 
constrain the Department's ability to assign the authority to develop 
and issue solicitations to whichever component of the agency determined 
appropriate to further the important goals of selecting the appropriate 
entities to support the Job Corps program.
    This final rule amends Sec. Sec.  686.310(a) and 686.340(a) by 
replacing ``ETA'' with ``the Secretary.'' Through this final rule, the 
Department is aligning the text of sections 686.310(a) and 686.340(a) 
with the statutory language in section 147(a) of WIOA, eliminating the 
inconsistency between the regulation and the statute. This change 
affords the Department greater flexibility to manage and oversee the 
Job Corps procurement process in a manner that it determines 
appropriate.

III. Discussion of Public Comments

    The Department invited written comments on all aspects of the 
proposed rule from interested parties for consideration prior to 
issuing a final rule (84 FR 45449). The written comment period closed 
on September 30, 2019. The Department received two significant adverse 
comments. The Department also received one comment that was outside the 
scope of the rulemaking.
    One commenter that represents a national association expressed a 
concern that decentralization of procurement authority outside of ETA 
would result in ``the further separation of Job Corps' programmatic, 
budget, and procurement authorities which could negatively impact Job 
Corps center operations, students, and taxpayers.'' The commenter 
opined that the proposal, if implemented, would place Job Corps' 
procurement function under a different agency, with different political 
leadership, different goals and priorities, and different measures of 
performance success. This, according to the commenter, could 
potentially negatively impact Job Corps students. The commenter 
suggested that because of the interrelation between program, budget, 
and contracting, all Job Corps contracting functions should be 
consolidated under a single political official or, ideally, within the 
Office of Job Corps, but regardless suggested that the Department 
establish performance measures for contracting officials related to 
student outcomes.
    The second commenter opined that the proposed change would affect 
how contracts for outreach and admission, career transition and 
operational services would be awarded. Specifically, the commenter 
expressed concern that the change would politicize the awarding of Job 
Corps contracts, in contravention of OMB's Uniform Guidance, rather 
than awards being made on the basis of an offeror's technical ability 
to provide the services.
    No change to the proposal is being made in response to these 
comments. This change aligns the Job Corps regulation with the 
statutory language and affords the Department greater flexibility in 
managing the Job Corps procurement functions. The Department disagrees 
that this change will adversely impact the operation of the Job Corps 
program. The Department and ETA will continue to support Job Corps and 
its programmatic needs and interests, including ensuring that there is 
appropriate coordination and consultation during the various phases of 
the procurement process. ETA program and budget staff will continue to 
work closely with the assigned procurement staff to develop and review, 
as appropriate, solicitations for Job Corps operation and support 
contracts. Similarly, these changes do not involve or limit the 
evaluation of proposals or quotations submitted in response to 
solicitations. Additionally, the Department disagrees that this change 
will politicize the awarding of Job Corps contracts. The Department 
will continue to conduct all Job Corps procurements in accordance with 
the relevant provisions of the Federal Acquisition Regulations, which, 
contrary to the commenter's assertion, governs the development and 
award of all Job Corps contract solicitations and awards, as well as in 
compliance with all of the WIOA statutory and regulatory requirements 
and the evaluation and selection criteria announced in Department 
solicitations. Regarding the commenter's suggestion to establish 
performance measures for contracting officials related to student 
outcomes, the Department does not tie performance measures for 
contracting officials related to either formation or administration of 
contracts to program outcomes. Successful program outcomes are the 
responsibility of the office administering the program, in this case 
the Office of Job Corps, and the contractors directly serving students.
    Therefore, the Department is finalizing the regulatory text as 
proposed.

IV. Rulemaking Analyses and Notices

Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review)

    Executive Order 12866 requires that regulatory agencies assess both 
the costs and benefits of significant regulatory actions. Under the 
Executive Order, a ``significant regulatory action'' is one meeting any 
of a number of specified conditions, including the following: Having an 
annual effect on the economy of $100 million or more; creating a 
serious inconsistency or interfering with an action of another agency; 
materially altering the budgetary impact of entitlements or the rights 
of entitlement recipients, or raising novel legal or policy issues. The 
Department has determined that this final rule is not a ``significant'' 
regulatory action and a cost-benefit and economic analysis is not 
required. This regulation merely makes a procedural change to allow 
flexibility to manage and oversee the Job Corps procurement process in 
a manner that the Department determines appropriate.
    Executive Order 13563 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health

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and safety effects, distributive impacts, and equity). Executive Order 
13563 emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility to 
minimize burden.
    This rule makes only a procedural change to allow flexibility to 
manage and oversee the Job Corps procurement process in a manner that 
the Department determines appropriate. Therefore, this rule is not 
expected to have any regulatory impacts.

Regulatory Flexibility Act/Small Business Regulatory Enforcement 
Fairness Act

    The Regulatory Flexibility Act (RFA), at 5 U.S.C. 603(a), requires 
agencies to prepare and make available for public comment an initial 
regulatory flexibility analysis, which describes the impact of the 
final rule on small entities. Section 605 of the RFA allows an agency 
to certify a rule, in lieu of preparing an analysis, if the final rule 
is not expected to have a significant economic impact on a substantial 
number of small entities. This final rule does not affect small 
entities as defined in the RFA. Therefore, the Department certifies 
that the final rule will not have a significant economic impacts on a 
substantial number of small entities.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the Department consider the impact of paperwork and other 
information collection burdens imposed on the public. The Department 
has determined that this rule does not alter any information collection 
burdens.

Executive Order 13132 (Federalism)

    Section 6 of E.O. 13132 requires Federal agencies to consult with 
State entities when a regulation or policy may have a substantial 
direct effect on the States, the relationship between the National 
Government and the States, or the distribution of power and 
responsibilities among the various levels of government, within the 
meaning of the E.O. Section 3(b) of the E.O. further provides that 
Federal agencies must implement regulations that have a substantial 
direct effect only if statutory authority permits the regulation and it 
is of national significance.
    This final rule does not have a substantial direct effect on the 
States, the relationship between the National Government and the 
States, or the distribution of power and responsibilities among the 
various levels of government, within the meaning of the E.O. This final 
rule merely makes a procedural change for internal Departmental 
operations and management for Job Corps procurement.

Unfunded Mandates Reform Act of 1995

    This regulatory action has been reviewed in accordance with the 
Unfunded Mandates Reform Act of 1995 (the Reform Act). Under the Reform 
Act, a Federal agency must determine whether a regulation proposes a 
Federal mandate that would result in the increased expenditures by 
State, local, or tribal governments, in the aggregate, or by the 
private sector, of $100 million or more in any single year. This final 
rule merely makes an administrative change regarding the Departmental 
entity authorized for Job Corps procurement responsibilities. 
Therefore, the relevant requirements the Reform Act do not apply.

Executive Order 13175 (Indian Tribal Governments)

    The Department has reviewed the final rule under the terms of E.O. 
13175 and DOL's Tribal Consultation Policy, and have concluded that the 
changes to regulatory text which are the focus of the final rule would 
not have tribal implications, as these changes do not have substantial 
direct effects on one or more Indian tribes, the relationship between 
the Federal Government and Indian tribes, nor the distribution of power 
and responsibilities between the Federal Government and Indian tribes. 
Therefore, no consultations with tribal governments, officials, or 
other tribal institutions were necessary.

List of Subjects in 20 CFR Part 686

    Employment, Grant programs--labor, Job Corps.

Amended Regulatory Text

    For the reasons stated in the preamble, the Department amends 20 
CFR part 686 as follows:

PART 686--THE JOBS CORPS UNDER TITLE I OF THE WORKFORCE INNOVATION 
AND OPPORTUNITY ACT

0
1. The authority citation for part 686 continues to read as follows:

    Authority: Secs. 142, 144, 146, 147, 159, 189, 503, Pub. L. 113-
128, 128 Stat. 1425 (Jul. 22, 2014).


0
2. Amend Sec.  686.310 by revising paragraph (a) to read as follows:


Sec.  686.310  How are entities selected to receive funding to operate 
centers?

    (a) The Secretary selects eligible entities to operate contract 
centers on a competitive basis in accordance with applicable statutes 
and regulations. In selecting an entity, the Secretary issues requests 
for proposals (RFPs) for the operation of all contract centers 
according to the Federal Acquisition Regulation (48 CFR chapter 1) and 
Department of Labor Acquisition Regulation (48 CFR chapter 29). The 
Secretary develops RFPs for center operators in consultation with the 
Governor, the center workforce council (if established), and the Local 
WDB for the workforce development area in which the center is located.
* * * * *

0
3. Amend Sec.  686.340 by revising paragraph (a) to read as follows:


Sec.  686.340  How are entities selected to receive funding to provide 
outreach and admission, career transition and other operations support 
services?

    (a) The Secretary selects eligible entities to provide outreach and 
admission, career transition, and operational services on a competitive 
basis in accordance with applicable statutes and regulations. In 
selecting an entity, the Secretary issues requests for proposals (RFP) 
for operational support services according to the Federal Acquisition 
Regulation (48 CFR chapter 1) and Department of Labor Acquisition 
Regulation (48 CFR chapter 29). The Secretary develops RFPs for 
operational support services in consultation with the Governor, the 
center workforce council (if established), and the Local WDB for the 
workforce development area in which the center is located.
* * * * *

John Pallasch,
Assistant Secretary for Employment and Training, Labor.
[FR Doc. 2019-25441 Filed 11-22-19; 8:45 am]
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