Pay for Success Solicitation for Grant Application (SGA/DFA PY 11-13) Prospective Applicant Webinar

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3 Presenters Presenters:  Jonathan Payne, Division of WIA Adult Services and Workforce Systems, Office of Workforce Investment  Megan Lizik, Division of WIA Adult Services and Workforce Systems, Office of Workforce Investment  Linda Forman, Grants Management Specialist, Office of Grants Management

4 Tips and Resources for Viewing this Webinar  Have a copy of the SGA when viewing the Webinar – _13.pdfhttp:// _13.pdf  View Applying for ETA Competitive Grants: A Web-Based Toolkit for Prospective Applicants –

5 I. Pay for Success Description

6 Pay for Success Description Section I.A The Pay for Success (PFS) model is a new way of financing social services to help governments target limited dollars to achieve a positive, measurable outcome. The PFS model offers an alternative financing solution for preventative social services, which are often the first services to get cut in austere budget times, even though in many cases they lead to long term benefits to the workforce system, such as reduced programmatic costs, more efficient public spending, and better social outcomes. At a time when all levels of government are facing cutbacks, Pay for Success offers a new approach to invest in services for vulnerable populations that need more – not less – support, while at the same time saving money for the public sector.

7 Potential Benefits Section I.A Potential Benefits of Pay for Success  Overcoming the challenges of blending program- and population-specific government funding  Creating incentives for social innovation, improved workforce outcomes, public sector cost savings, and efficiency gains  Identifying effective preventative services  Allowing for more rapid learning about which strategies are most effective  Transferring social investment risk from the government to private investors

8 DOL Objectives Section I.B The Department’s objective for the pilot projects  Test a model for government investment in preventative and innovative service delivery models that transfers risk to the private sector.  Learn whether the Pay for Success concept is feasible in the workforce development policy arena.  Determine whether preventative social services complementing workforce development programming “pay off.”

9 Critical Elements Section I.B Critical Elements of the Pay for Success Model  A well-defined problem and target population  A flexible and preventative service delivery strategy  Committed funds from investors to cover operating costs  Well-defined, achievable outcome targets  Outcome measurement methodology  Project timeline for outcome achievement dates  Financial model showing public sector savings  Payment arrangement details between the applicant and intermediary

10 Partnership Structure Section I.C Required Partners in a Pay for Success Application:  State/local/tribal government agency  The intermediary  The investors  The independent outcome validator Other entities involved:  Service Providers  U.S. Department of Labor

11 Additional Resources  For a more in depth description of all the critical elements of the Pay for Success model please read the SGA.  Additional resources on the Pay for Success concept can also be found at ess.cfm ess.cfm

12 II. Award Information

13 Award Amount & Performance Period Sections II.A and II.B Award Amount:  Up to $20 million in grant funds, with awards ranging up to $12 million for approximately grantees Period of Performance:  Awards expected in Spring 2013  Total technical grant performance period - 48 months  36 months for start-up, implementation, and delivery of intervention  6 months for outcome measurement and documentation  6 months for DOL approval and payment

14 III. Eligibility Information

15 Section III.A.1 Eligible Applicants Section III.A.1 Eligible applicants  State Workforce Agencies eligible for assistance under Title I of the Workforce Investment Act (WIA) of 1998  Local government agencies responsible for workforce programs under Title I of WIA  Federally recognized Indian tribal governments

16 Other Eligibility Criteria Section III.B and III.C  Cost Sharing or Matching –Cost sharing or matching funds are not required as a condition for application. The financial contribution from investors is not considered cost sharing or matching funds.  Other Eligibility Criteria –One submission per applicant –Identified social problem and population must be in the scope of the public workforce system –Applicants must have a fully-formed partnership –Secured commitment of funds from investors

17 Other Eligibility Criteria Section III.D and III.E  Eligible Participants –Participants must meet the characteristics of the proposed target population. –There are no restrictions on target population eligibility.  Veterans Priority for Participants –Veterans priority of service provisions require grant recipients give veterans or eligible spouses priority of service –For additional information, see at

18 Section III.F.1 Other Eligibility Criteria Section III.F.1  Other Grant Specifications –DOL is committed to a transparent grant award process –Posting grant applications on public websites is a means of promoting and sharing innovative ideas –Abstracts from Section IV, Part III.A of the SGA, as well as a version of the Technical Proposal in Section IV, Part II, will be published on the Department’s website or similar location. –Applicants are encouraged to maximize the disclosed grant application information and to exercise restraint and redact only when necessary. 

19 IV. Application and Submission Information

20 Content and Form of Submission Section IV.B Proposals submitted in response to this SGA must include the following:  Cost Proposal  Technical Proposal  Attachments to the Technical Proposal Applications that do not contain all three parts will be considered non-responsive and will not be reviewed.

21 Section IV.B.Part I Application and Submission Information Cost Proposal, Section IV.B.Part I Part I – Cost Proposal  SF-424 (Application for Federal Assistance)  D-U-N-S® Number  SF-424A (Budget Information Form)  A Budget Narrative  CCR Registration Applications that fail to provide a signed SF 424 including a D–U–N–S® Number, CCR registration, SF 424A, and the budget narrative will be considered non-responsive and not reviewed

22 Section IV.B.Part II Application and Submission Information Technical Proposal, Section IV.B.Part II Part II – Technical Proposal  Project narrative that demonstrates the applicant’s capabilities to implement the grant project in accordance with the provisions of this solicitation (see Section V of the SGA)  The Technical Proposal is limited to 25 double- spaced single-sided 8.5 x 11 inch pages with 12 point text font and 1 inch margins for all grantees. Applications that do not include the Technical Proposal will be considered non-responsive and not be reviewed

23 Section IV.B.Part III Application and Submission Information Attachments, Section IV.B.Part III Part III – Attachments to the Technical Proposal  Abstract, not to exceed three pages  An SF-424  A letter of commitment from the investor(s) to provide working capital adequate to sustain the life of the project.  A partnership agreement signed by representatives of the state/local/tribal government applicant, intermediary, investor(s) and independent validator confirming that all partners are in agreement with the roles and responsibilities within the framework of the Pay for Success model and all components of the applicant’s grant proposal.

24 Proposal Submission Section VI.C  Methods of Submission −Regular mail −Overnight mail −Hand delivery −Online at  Reference Eric Luetkenhaus, Grant Officer, SGA/DFA PY Proposals must be received by 4:00:00 PM (ET) on December 11 th, 2012

25 Proposal Submission (con’t)  Applicants submitting in hard copy –Submit an original signed application (including SF-424) and 1 “copy-ready” version free of bindings, staples, or protruding tabs –Include identical electronic copy of proposal on compact disc (CD)  Using Grants.gov -- Get started now! –Significant registration process the first time - takes days or weeks to complete –Highly recommended that online submission be completed 2 working days prior to the date specified for receipt of applications –Components of the application must be saved as either.doc,.docx,.xls,.xlsx,.rtf, or.pdf files If submitted in any other format, the applicant bears the risk that compatibility or other issues will prevent us from considering the application. Note: This funding opportunity is not subject to Executive Order “Intergovernmental Review of Federal Programs.”

26 Funding Restrictions Section IV.E  Administrative Costs –Not to exceed 10 percent of the grant award  Intellectual Property Rights –DOL reserves a nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use for Federal purposes, the copyright in all products developed under the grant  For more information on Funding Restrictions, please read Section IV of the SGA.

27 V. Application Review Information

28 Evaluation Criteria Section V.A. CriterionPoints 1. Pay for Success Partnership Description of the Problem and Target Population Outcomes, Outcome Targets, and Intervention Design Independent Validation of Outcome Targets Financing Model and Payout Structure 25 Total:100

29 Evaluation Criteria, con’t Evaluation Criteria, con’t Section V.A.1 1.Pay for Success Partnership (20 points)  Partnership Agreement (5 points)  Partnership Qualifications (10 points)  Work Plan for Timely Project Start Up (5 points)

30 Evaluation Criteria, con’t Evaluation Criteria, con’t Section V.A.2 2. Description of the Problem and Target Population (10 points)  Identify problem and target population  Define characteristics and demographics of target population  Describe how the target population is affected by the problem  Detail the barriers that prevent you from currently addressing the problem

31 Evaluation Criteria, con’t Evaluation Criteria, con’t Section V.A.3 3. Outcomes, Outcome Targets, and Intervention Design (25 points)  Outcome Targets (15 points)  Intervention Design (10 points)

32 Evaluation Criteria, con’t Evaluation Criteria, con’t Section V.A.4 4.Independent Validation of Outcome Targets (20 points)  Independent Validator Responsibilities (3 points)  Validation Methodology (10 points)  Data Administration and Management (5 points)  Dispute Resolution (2 points)

33 Evaluation Criteria, con’t Evaluation Criteria, con’t Section V.A.5 5. Financing Model and Payout Structure (25 points)  Cost of the Outcome and Resulting Savings (10 points)  Investment (5 points)  Payments (10 points)

34 Review and Selection Process Review and Selection Process Section V.C.  Technical review panels will meet after closing date to review applications  Two-Tier Process  Scoring is based on how applicants respond to the evaluation criteria in the SGA in Section V.A.

35 Selection Process Selection Process Section V.C.  Panel scores for the technical proposals will be primary basis for selection of applications  The Grant Officer may also consider: –Geographic balance –Alignment with the goals of the workforce investment system –Availability of funds –Advantageous nature of the proposal to the government  Panel scores are advisory in nature to the Grant Officer

36 Award Administration Information Award Administration Information Section VI  All award notifications will be posted on the ETA homepage (  Applicants selected for award will be contacted directly before the grant’s execution.  Applicants not selected for award will be notified by mail or .

37 Other Program Requirements Section VI.B  Administrative and National Policy Requirements –Program requirements –Other legal requirements –Other administrative standards and provisions –Special program requirements Evaluation Changes to the Statement of Work Submission for Payment

38 Reporting Section VI.C  Grantees must provide these reports/documents: –Quarterly Financial Reports –Quarterly Progress and Annual Performance –Records Retention

39 Agency Contacts Section VII  Questions should be submitted to Linda Forman at: and reference SGA/DFA PY in the subject  ETA will review questions submitted regarding the SGA and provide a timely response

40 Additional Resources Section VIII Workforce 3 One:  Communities of practice  Live web-based events  Register for updates! For more information about Pay for Success: 

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