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§ 3056l. Competitive requirements relating to grant awards
(a)
Program authorized
In accordance with section
3056
(b) of this title, the Secretary shall award grants to eligible applicants to carry out projects under this subchapter for a period of 1 year, except that, after the promulgation of regulations for this subchapter and the establishment of the performance measures required by section
3056k
(a) of this title, the Secretary shall award grants for a period of not to exceed 3 years.
(c)
Criteria
The Secretary shall select the eligible applicants to receive grants under subsection (a) of this section based on the following:
(1)
The applicant’s ability to administer a program that serves the greatest number of eligible individuals, giving particular consideration to individuals with greatest economic need, greatest social need, poor employment history or prospects, and over the age of 60.
(2)
The applicant’s ability to administer a program that provides employment for eligible individuals in the communities in which such individuals reside, or in nearby communities, that will contribute to the general welfare of the community.
(3)
The applicant’s ability to administer a program that moves eligible individuals into unsubsidized employment.
(4)
The applicant’s ability to move individuals with multiple barriers to employment into unsubsidized employment.
(d)
Responsibility tests
(1)
In general
Before final selection of a grantee, the Secretary shall conduct a review of available records to assess the applicant’s overall responsibility to administer Federal funds.
(2)
Review
As part of the review described in paragraph (1), the Secretary may consider any information, including the organization’s history with regard to the management of other grants.
(3)
Failure to satisfy test
The failure to satisfy any one responsibility test that is listed in paragraph (4), except for those listed in subparagraphs (A) and (B) of such paragraph, does not establish that the organization is not responsible unless such failure is substantial or persistent (for 2 or more consecutive years).
(4)
Test
The responsibility tests include review of the following factors:
(A)
Efforts by the organization to recover debts, after three demand letters have been sent, that are established by final agency action and have been unsuccessful, or that there has been failure to comply with an approved repayment plan.
(C)
Serious administrative deficiencies identified by the Secretary, such as failure to maintain a financial management system as required by Federal regulations.
(E)
Failure to provide services to applicants as agreed to in a current or recent grant or to meet applicable performance measures.
(F)
Failure to correct deficiencies brought to the grantee’s attention in writing as a result of monitoring activities, reviews, assessments, or other activities.
(G)
Failure to return a grant closeout package or outstanding advances within 90 days of the grant expiration date or receipt of closeout package, whichever is later, unless an extension has been requested and granted.
(J)
Failure to have maintained effective cash management or cost controls resulting in excess cash on hand.
(K)
Failure to ensure that a subrecipient complies with its Office of Management and Budget Circular A–133 audit requirements specified at section
667.200(b) of title
20, Code of Federal Regulations.
(e)
National performance measures and competition for public and private nonprofit agencies and organizations
(2)
Technical assistance and corrective action plan
(A)
In general
If the Secretary determines that a grantee fails to meet the national performance measures for a program year, the Secretary shall provide technical assistance and require such organization to submit a corrective action plan not later than 160 days after the end of the program year.
(B)
Content
The plan submitted under subparagraph (A) shall detail the steps the grantee will take to meet the national performance measures in the next program year.
(C)
After second year of failure
If a grantee fails to meet the national performance measures for a second consecutive program year, the Secretary shall conduct a national competition to award, for the first full program year following the determination (minimizing, to the extent possible, the disruption of services provided to enrollees), an amount equal to 25 percent of the funds awarded to the grantee for such year.
(D)
Competition after third consecutive year of failure
If a grantee fails to meet the national performance measures for a third consecutive program year, the Secretary shall conduct a national competition to award the amount of the grant remaining after deduction of the portion specified in subparagraph (C) for the first full program year following the determination. The eligible applicant that receives the grant through the national competition shall continue service to the geographic areas formerly served by the grantee that previously received the grant.
(3)
Competition requirements for public and private nonprofit agencies and organizations in a State
(A)
In general
In addition to the actions required under paragraph (2), the Secretary shall take corrective action if the Secretary determines at the end of any program year that, despite meeting the established national performance measures, a public or private nonprofit agency or organization that is a grantee has attained levels of performance 20 percent or more below the national performance measures with respect to the project carried out in a State and has failed to meet the performance measures as established by the Secretary for the State grantee in such State, and there are not factors, such as the factors described in section
3056k
(a)(2)(B) of this title, or size of the project, that justify the performance.
(B)
First year of failure
After the first program year of failure to meet the performance criteria described in subparagraph (A), the Secretary shall require a corrective action plan, and may require the transfer of the responsibility for the project to other grantees, provide technical assistance, and take other appropriate actions.
(C)
Second year of failure
After the second consecutive program year of failure to meet the performance criteria described in subparagraph (A), the corrective actions to be taken by the Secretary may include the transfer of the responsibility for a portion or all of the project to a State or public or private nonprofit agency or organization, or a competition for a portion or all of the funds to carry out such project among all eligible entities that meet the responsibility tests under subsection (d) of this section except for the grantee that is the subject of the corrective action.
(D)
Third year of failure
After the third consecutive program year of failure to meet the performance criteria described in subparagraph (A), the Secretary shall conduct a competition for the funds to carry out such project among all eligible entities that meet the responsibility tests under subsection (d) of this section except for the grantee that is the subject of the corrective action.
(4)
Request by Governor
Upon the request of the Governor of a State for a review of the performance of a public or private nonprofit agency or organization within the State, the Secretary shall undertake such a review in accordance with the criteria described in paragraph (3)(A). If the performance of such grantee is not justified under such criteria, the Secretary shall take corrective action in accordance with paragraph (3).
(f)
Performance measures and competition for States
(2)
Technical assistance and corrective action plan
If a State that receives a grant fails to meet the performance measures for a program year, the Secretary shall provide technical assistance and require the State to submit a corrective action plan not later than 160 days after the end of the program year.
(3)
Content
The plan described in paragraph (2) shall detail the steps the State will take to meet the standards.
(4)
Failure to meet performance measures for second and third years
(A)
After second year of failure
If a State fails to meet the performance measures for a second consecutive program year, the Secretary shall provide for the conduct by the State of a competition to award, for the first full program year following the determination (minimizing, to the extent possible, the disruption of services provided to enrollees), an amount equal to 25 percent of the funds available to the State for such year.
(B)
After third year of failure
If the State fails to meet the performance measures for a third consecutive program year, the Secretary shall provide for the conduct by the State of a competition to award the funds allocated to the State for the first full program year following the Secretary’s determination that the State has not met the performance measures.
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Notes
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Parallel authorities (CFR)
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Notes
1 Update(s)
Parallel authorities (CFR)
PDF (4 pages)
Title 42 RSS
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