84 FR 412 - Applications for Selection as a Performance Partnership Pilot; Performance Partnership Pilots for Disconnected Youth

The Department of Education (ED or Department) is issuing a notice inviting applications for selection of up to 10 performance partnership pilots for fiscal year (FY) 2018 and up to 10 performance partnership pilots for FY 2019 under the Performance Partnership Pilots for Disconnected Youth authority.

[Federal Register Volume 84, Number 18 (Monday, January 28, 2019)]
[Notices]
[Pages 412-420]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-00200]


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DEPARTMENT OF EDUCATION


Applications for Selection as a Performance Partnership Pilot; 
Performance Partnership Pilots for Disconnected Youth

AGENCY: Office of Career, Technical, and Adult Education, Department of 
Education.

ACTION: Notice.

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SUMMARY: The Department of Education (ED or Department) is issuing a 
notice inviting applications for selection of up to 10 performance 
partnership pilots for fiscal year (FY) 2018 and up to 10 performance 
partnership pilots for FY 2019 under the Performance Partnership Pilots 
for Disconnected Youth authority.

DATES: 
    Deadline for Notice of Intent to Apply: March 14, 2019.

    Note:  Submission of a notice of intent to apply is optional.

    Deadline for Transmittal of Applications: April 29, 2019.
    Deadline for Intergovernmental Review: June 27, 2019.

ADDRESSES: Braden Goetz, U.S. Department of Education, 400 Maryland 
Avenue SW, Room 11141, Potomac Center Plaza (PCP), Washington, DC 
20202. Telephone: (202) 245-7405. Email: [email protected]. Or 
Corinne Sauri, U.S. Department of Education, 400 Maryland Avenue SW, 
Room 11-134, Potomac Center Plaza (PCP), Washington, DC 20202. 
Telephone: (202) 245-6412.

FOR FURTHER INFORMATION CONTACT: Braden Goetz, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 11141, PCP, Washington, DC 
20202. Telephone: (202) 245-7405. Email: [email protected]. Or 
Corinne Sauri, U.S. Department of Education, 400 Maryland Avenue SW, 
Room 11-134, Potomac Center Plaza (PCP), Washington, DC 20202. 
Telephone: (202) 245-6412.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: 

Full Text of Announcement

I. Pilot Opportunity Description

    Purpose of Program: Performance Partnership Pilots for Disconnected 
Youth (P3) was first authorized by Congress in FY 2014 by the 
Consolidated Appropriations Act, 2014 (2014 Act), and the authority has 
been included by Congress in appropriations acts each year since FY 
2014. The P3 authority enables pilot sites to blend FY 2018 and FY 2019 
Federal funds and obtain waivers of program requirements, including 
statutory, regulatory, and administrative requirements that are 
barriers to achieving improved outcomes for youth-serving programs 
included in the authority. Under P3, pilots can test innovative, 
outcome-focused strategies to achieve significant improvements in 
educational, employment, and other key outcomes for disconnected youth 
using the flexibility provided by P3.
    Background: P3 aligns with the Administration's priorities of 
relieving burden, breaking down ``silos,'' increasing flexibility, and 
providing State, local, and Tribal governments greater freedom to 
innovate. P3 gives ED; the Departments of Labor (DOL), Health and Human 
Services (HHS), Housing and Urban Development (HUD),\1\ and Justice 
(DOJ); \2\ the Corporation for National and Community Service (CNCS); 
and the Institute of Museum and Library Services (IMLS) (collectively, 
the Agencies) authority, provided certain conditions and requirements 
are met, to waive Federal statutory and regulatory requirements that 
inhibit effective service delivery for disconnected youth. The 
authority also advances the

[[Page 413]]

Principles of Economic Mobility articulated in Executive Order 13828, 
Reducing Poverty in America by Promoting Opportunity and Economic 
Mobility. These principles include: Balancing flexibility and 
accountability in Federal poverty programs; addressing the challenges 
of high-need special populations; reducing the size of bureaucracy and 
streamlining services; and empowering the private sector and local 
communities to develop and apply locally based solutions to poverty.\3\
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    \1\ HUD was first authorized to enter into performance 
agreements with respect to Homeless Assistance Grants by the 
Consolidated Appropriations Act, 2016.
    \2\ DOJ's Office of Justice Programs was first authorized to 
enter into performance agreements by the Consolidated and Further 
Continuing Appropriations Act, 2015.
    \3\ E.O. 13828 of Apr 10, 2018, Federal Register, April 13, 
2018, 83 FR 15941.
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    P3 authorizes the Agencies to enter into Performance Partnership 
Agreements (performance agreements) with State, local, or Tribal 
governments. The performance agreements provide pilots with additional 
flexibility in the use of certain of the Agencies' discretionary 
funds,\4\ including competitive and formula grant funds. Pilots must 
include two or more Federal programs (at least one of which is 
administered in whole or in part by a State, local, or Tribal 
government) that are targeted on disconnected youth, or designed to 
prevent youth from disconnecting from school or work, and that provide 
education, training, employment, and other related social services. 
Entities that seek to participate in these pilots will be required to 
commit to achieving significant improvements in outcomes for 
disconnected youth in exchange for flexibility permitted under P3. The 
authorizing statute states that `` `[t]o improve outcomes for 
disconnected youth' means to increase the rate at which individuals 
between the ages of 14 and 24 (who are low-income and either homeless, 
in foster care, involved in the juvenile justice system, unemployed, or 
not enrolled in or at risk of dropping out of an educational 
institution) achieve success in meeting educational, employment, or 
other key goals.''
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    \4\ For the purposes of P3, discretionary funds are funds that 
Congress appropriates on an annual basis, rather than through a 
standing authorization. They exclude ``entitlement'' (or mandatory) 
programs such as Social Security, Medicare, Medicaid, most Foster 
Care IV-E programs, Vocational Rehabilitation State Grants, and 
Temporary Assistance to Needy Families (TANF). Discretionary 
programs administered by the Agencies support a broad set of public 
services, including education, job training, health and mental 
health, and other low-income assistance programs.
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    This notice invites applications for selection as FY 2018 and 2019 
pilots. Unlike previous rounds, ED will not award start-up funds to 
selected pilots, because the Agencies want to encourage potential 
pilots to create cost-neutral innovations in service delivery. However, 
the flexibilities available under P3 can generate significant cost 
savings for pilots by relieving them of some burdensome requirements, 
as well as enabling them to use Federal dollars more effectively to 
serve disconnected youth.

Flexibilities Available Under P3

    P3 provides important opportunities for flexibility and burden 
reduction. The Agencies have published on Youth.gov a list of the 
waivers previously granted to pilots under the prior three rounds of 
P3.\5\ These waivers were helpful to the pilots that received them, 
and, in this fourth round, the Agencies hope that applicants propose 
even more ambitious and bold efforts to remove Federal constraints on 
effective and innovative service delivery for disconnected youth. We 
provide several examples below.
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    \5\ The list of previously granted waivers is available at 
https://youth.gov/youth-topics/reconnecting-youth/performance-partnership-pilots.
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    We note that these examples are provided for illustrative purposes 
only, and that the allowability of specific proposals will depend on 
the unique circumstances of individual applicants. Any waivers must be 
consistent with the statutory safeguards that apply to P3, discussed 
below, and the Agencies will consider whether the inclusion of a 
program in a specific pilot is consistent with, or conflicts with, 
other significant legal or policy considerations. Also, the Agencies 
will review the blending of competitive grants on a case-by-case basis 
in order to consider how the scope, objectives, and target populations 
of the existing award align with the proposed pilot. Any changes in 
terms and conditions of the existing competitive grant awards required 
for pilot purposes must be justified by the applicant. In addition, the 
Agencies can only waive Federal statutory or regulatory requirements. 
The Agencies encourage applicants to analyze whether their request also 
requires State or local rule changes to implement as those rules are 
not under the jurisdiction of the Agencies to waive for P3.
    Example A: P3 waivers can help a State, local, or Tribal government 
use funds from multiple competitive and formula grants more cohesively 
and effectively and relieve some of the paperwork or reporting 
requirements associated with these grants. For example, an Alaska 
Native village that is the recipient of a Social and Economic 
Development Strategies grant from the Administration for Native 
Americans in HHS, an Alaska Native Education program grant and a Native 
American Career and Technical Education grant from ED, and an Indian 
and Native American Program Employment and Training Grant from DOL, 
might obtain P3 waivers and other flexibilities that would enable it to 
blend these funds to carry out an apprenticeship program for Alaska 
Native youth. Through P3, it also might replace the reporting 
requirements associated with each of these grants with a single set of 
outcome goals that the village deems most critical for its youth.
    Example B: A number of Federal grant programs that award funds by 
formula to States, such as Student Support and Academic Enrichment 
Grants (SSAE) under Title IV of the Elementary and Secondary Education 
Act of 1965 and Part B of the Individuals with Disabilities Education 
Act (IDEA), require or allow States to set aside funds for State-level 
activities. In most cases, program statutes specify through a list of 
authorized or required activities how States may or must use funds 
reserved for State-level activities. A State might request a waiver 
that would allow it to use State-level funds to support an activity 
that goes beyond the required and permissive activities set out in the 
relevant program statute. More specifically, a State might propose to 
use funds for an activity that, while not clearly included as an 
allowable use of funds under the relevant statutory list of authorized 
activities, is designed to improve outcomes for disconnected youth and 
is consistent with the statutory purposes of the program. For example, 
section 611(e)(2)(C) of Part B of the IDEA contains a list of allowable 
activities that States may use State-level set-aside funds to support. 
Through P3, a State might seek a waiver to allow it to use State-level 
IDEA Part B set-aside funds to support an activity that is designed to 
improve the efficiency and effectiveness of special education and 
related services offered to disconnected youth with disabilities, even 
though that activity is not specifically included as an authorized 
activity under section 611(e)(2)(C). To expand educational options 
through a school choice initiative, a State could, for example, propose 
to use State-level IDEA Part B funds to provide additional IDEA Part B 
funds beyond the minimum required proportionate share that must be 
expended by local educational agencies on the provision of special 
education and related services (i.e., equitable services) to eligible 
parentally-placed private school children with disabilities, to cover 
the cost of equitable services for disconnected youth who are 
parentally

[[Page 414]]

placed private school children with disabilities. These funds could be 
blended with, and supplemented by, State-level SSAE funds.
    Example C: Many Federal programs contain statutory or regulatory 
requirements that limit eligibility to individuals based on age or 
other requirements. A P3 applicant could seek flexibility to waive 
eligibility requirements to broaden the target population. For example, 
the WIOA Title I Youth program limits eligibility for services to out-
of-school youth between the ages of 16 and 24, while the Adult 
Education and Family Literacy Act (AEFLA), Title II of WIOA, limits 
eligibility to individuals age 16 and older who are not enrolled or 
required to be enrolled in secondary school under State law. A State 
could seek a waiver of these eligibility requirements to create an 
education and employment program for disconnected youth as young as age 
14 and use the P3 authority to blend WIOA Title I Youth and AEFLA 
State-level funds to implement the program.
    Example D: P3 authority can also be used by applicants to propose 
changes to projects funded under multiple Federal grants that are each, 
separately, intended to support programs designed to help disconnected 
youth achieve greater success in meeting their educational and 
employment goals. A public college or university that is considered a 
unit of State or local government might obtain waivers to blend 
discretionary, non-entitlement student aid funds under Title IV of the 
Higher Education Act of 1965, dollars received through various Federal 
formula programs, and competitive grant funds in ways that would 
achieve better outcomes for disconnected youth. For example, a public 
college or university might propose to increase the share of the 
Federal Work Study (FWS) program funds available for Job Location and 
Development programs and waive the 25 percent cap on the amount of the 
school's allocation that may be used to pay wages to students employed 
with private, for-profit organizations so that it could use all or more 
than 25 percent of its FWS funds to provide students who are at risk of 
dropping out subsidized career internships in the private sector that 
are aligned with students' educational and career goals. If the public 
college or university receives a Federal TRIO or Gaining Early 
Awareness and Readiness for Undergraduate Programs grant, it might also 
propose to blend funds available under these competitive grant programs 
(e.g., TRIO Student Support Services) to provide career counseling and 
mentoring to the students participating in these career internships. 
Similarly, a community college might obtain waivers to blend and use a 
portion of a TRIO Educational Opportunity Center grant and its WIOA 
Title II AEFLA program subgrant to implement an intensive integrated 
education and training program for young adults who lack a high school 
credential.
    Although the P3 authority provides broad waiver authority to 
increase flexibility and relieve burden in order to improve the 
effectiveness of Federal funding for disconnected youth, it is 
important to note that there are some limitations on the waivers. In 
particular, as stated in the original statutory authority for P3, the 
P3 waivers--
     May not involve any requirement related to 
nondiscrimination, wage and labor standards, or the allocation of funds 
to State and sub-State levels;
     Must be consistent with the statutory purposes of the 
Federal program for which such discretionary funds were appropriated;
     May not result in denying or restricting the eligibility 
of any individual for any of the services that (in whole or in part) 
are funded by the agency's programs and Federal discretionary funds 
that are involved in the pilot;
     Based on the best available information, may not otherwise 
adversely affect vulnerable populations that are the recipients of such 
services;
     Must be necessary to achieve the outcomes of the pilot as 
specified in the performance agreement, and no broader in scope than is 
necessary to achieve such outcomes; and
     Must result in either (a) realizing efficiencies by 
simplifying reporting burdens or reducing administrative barriers with 
respect to such discretionary funds; or (b) increasing the ability of 
individuals to obtain access to services that are provided by the 
discretionary funds.

FY 2018 and FY 2019

    P3 was reauthorized for FY 2018 for programs administered by all of 
the seven Agencies, and the Agencies may select up to ten pilots. As of 
the date of this notice, P3 has been reauthorized for FY 2019 for 
programs administered by ED, HHS, DOL, CNCS, and IMLS, and these five 
agencies may select up to ten pilots involving programs they 
administer. Legislation pending in Congress would authorize the 
inclusion of FY 2019 funds for HUD Homeless Assistance Grants and 
programs administered by DOJ's Office of Justice programs. We are 
inviting applications for pilots under both the FY 2018 and FY 2019 
authorities. Applicants must indicate in their applications whether 
they are applying as a FY 2018 or a FY 2019 pilot.
    FY 2018 Pilots: An applicant applying as a FY 2018 pilot must 
propose to include FY 2018 funds from at least one of the seven Federal 
Agencies, and may choose to include FY 2019 funds from ED, HHS, DOL, 
CNCS, and IMLS programs. If the pending legislation described above is 
enacted before the application deadline announced by this notice, 
applicants may also propose to include FY 2019 Homeless Assistance 
Grants and Office of Justice Programs in their applications.\6\
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    \6\ Regular updates on the status of this legislation will be 
posted on Youth.gov.
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    FY 2019 Pilots: An applicant applying as a FY 2019 pilot must 
propose to include only FY 2019 funds from ED, HHS, DOL, CNCS, or IMLS 
programs. If the pending legislation described above is enacted before 
the application deadline announced by this notice, applicants may also 
propose to include FY 2019 Homeless Assistance Grants and Office of 
Justice Programs in their applications in addition to or instead of 
funds from ED, HHS, DOL, CNCS, and IMLS.
    If Congress extends the P3 authority in future years, pilots 
selected under either authority may propose to expand the number of 
Federal programs supporting pilot activities using future funding 
appropriated. However, authority for pilots to expand in future years 
is subject to Congressional action as well as agency discretion.

Absolute Priorities

    For the purposes of this competition, absolute priorities create 
separate categories for scoring and considering applications. 
Applicants must address one of two absolute priorities.
    As in the third round of P3, the statutory authorities for FY 2018 
and FY 2019 direct the Agencies to include communities that have 
experienced civil unrest among the P3 pilots that are designated for FY 
2018 and FY 2019. Consequently, we are including an absolute priority 
for pilots involving such communities (Absolute Priority 1). Some 
communities struggle with high youth unemployment, low graduation 
rates, drug abuse, and crime. These and other continuing challenges can 
manifest in different instances of civil unrest, such as violent 
protests, increases in interpersonal violence in concentrated areas, or 
civil disorder. We believe that P3 flexibilities, including waivers and 
the blending of funds, will help empower communities to improve

[[Page 415]]

educational and employment outcomes for disconnected youth in these 
communities. The second absolute priority we have included (Absolute 
Priority 2) in this round is for all other proposed pilots that serve 
disconnected youth.

Competitive Preference Priority

    This competition includes one competitive preference priority under 
which we will award up to 15 points to an application, depending on how 
well that application proposes to align Federal, State, or local 
funding streams to promote the economic mobility of low-income 
individuals (as defined under section 312(g) of the Higher Education 
Act of 1965, as amended). We believe the flexibilities available 
through P3 hold great potential for improving economic opportunity and 
mobility in economically distressed communities, such as communities 
with one or more Qualified Opportunity Zones established under the Tax 
Cuts and Jobs Act (Pub. L. 115-97). Created to spur long-term private 
investment in low-income urban and rural areas of the country, 
Qualified Opportunity Zones are low-income communities that have been 
nominated by the governor of each State and Chief Executive Officer of 
United States territories and the District of Columbia and that have 
been certified by the U.S. Secretary of the Treasury. Disconnected 
youth are highly concentrated in impoverished communities like those 
designated as Qualified Opportunity Zones; in high-poverty 
neighborhoods with a poverty rate above 21 percent, one in five young 
people are disconnected.\7\ Effectively addressing the education and 
skill needs of these youth is central to improving the economic 
circumstances of these communities and promoting economic mobility 
among their residents. Skill-building also is essential to maximizing 
the impact of the new investment that will be flowing into these 
communities and ensuring that Qualified Opportunity Zone residents are 
trained and ready to assume the new jobs that will be created by the 
infusion of capital. Without complementary actions to boost the 
education and skills of youth and adults in Qualified Opportunity 
Zones, many of the new jobs will be filled by individuals who reside 
elsewhere--or they will go unfilled altogether, throttling economic 
growth. P3 can make possible bold and creative interventions by State, 
local, and tribal governments to help disconnected youth, such as those 
in Qualified Opportunity Zones reengage, succeed in education and 
training, and prosper in the job market.
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    \7\ Burd-Sharp, S. and Lewis, K. (2017) Promising Gains, 
Persistent Gaps: Youth Disconnection in America. Brooklyn, NY: 
Measure of America of the Social Science Research Council.
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    Priorities: This competition includes two absolute priorities and 
one competitive preference priority. Absolute Priority 1 is from the 
Consolidated Appropriations Act, 2018 (Pub. L. 115-141) and the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Acts, 2019 (Pub. L. 115-245) and 
Absolute Priority 2 is from the notice of final priorities, 
requirements, definitions, and selection criteria for this program 
published on April 28, 2016, in the Federal Register (81 FR 25339) (P3 
NFP) The competitive preference priority is from the Secretary's Final 
Supplemental Priorities and Definitions for Discretionary Grant 
Programs, published in the Federal Register on March 2, 2018 (83 FR 
9096).
    Absolute Priorities: For this competition and any subsequent year 
in which we make pilot designations from the list of applications from 
this competition, these priorities are absolute priorities. Under 34 
CFR 75.105(c)(3) we consider only applications that meet Absolute 
Priority 1 or 2.

    Note:  Applicants must indicate whether they are applying under 
Absolute Priority 1 or Absolute Priority 2. An applicant that 
applies under Absolute Priority 1, but is not eligible under that 
absolute priority, will be considered under Absolute Priority 2.

    These priorities are:
    Absolute Priority 1--Improving Outcomes for Disconnected Youth in 
Communities That Have Experienced Civil Unrest.
    To meet this priority, an applicant must propose a pilot that is 
designed to improve outcomes for disconnected youth in one or more 
communities that have experienced civil unrest. In response to the 
priority, an applicant should describe the instance(s) of civil unrest, 
including (1) a description of the civil unrest that occurred or is 
occurring in the community or communities it intends to serve; and (2) 
the date or dates of the civil unrest.
    Absolute Priority 2--Improving Outcomes for Disconnected Youth.
    To meet this priority, an applicant must propose a pilot that is 
designed to improve outcomes for disconnected youth.
    Competitive Preference Priority: For this competition and any 
subsequent year in which we make pilot designations from the list of 
applications from this competition, this priority is a competitive 
preference priority. Under 34 CFR 75.105(c)(2)(i), we will award up to 
an additional 15 points to an application, depending on how well the 
application meets this priority. This priority is:

Promoting Economic Opportunity

    Projects designed to increase educational opportunities by reducing 
academic or nonacademic barriers to economic mobility by aligning 
Federal, State, or local funding streams to promote economic mobility 
of low-income individuals (as defined under section 312(g) of the 
Higher Education Act of 1965, as amended).
    Application Requirements:
    The application requirements for this competition are from the P3 
NFP and are as follows:
    (a) Executive summary. The applicant must provide an executive 
summary that briefly describes the proposed pilot, the flexibilities 
being sought, and the interventions or systems changes that would be 
implemented by the applicant and its partners to improve outcomes for 
disconnected youth.
    (b) Target population. The applicant must complete Table 1, 
specifying the target population(s) for the pilot, including the age 
range of youth who will be served and the estimated number of youth who 
will be served over the course of the pilot.

[[Page 416]]



                       Table 1--Target Population
------------------------------------------------------------------------
                                                        Estimated number
                                                        of youth served
         Target population              Age range       over the course
                                                          of the pilot
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    (c) Flexibility, including waivers:
    (1) Federal requests for flexibility, including waivers. For each 
program to be included in a pilot, the applicant must complete Table 2, 
Requested Flexibility. The applicant must identify two or more 
discretionary Federal programs that will be included in the pilot,\8\ 
at least one of which must be administered (in whole or in part) by a 
State, local, or Tribal government.\9\ In Table 2, the applicant must 
identify one or more program requirements that would inhibit 
implementation of the pilot and request that the requirement(s) be 
waived in whole or in part. Examples of potential waiver requests and 
other requests for flexibility include, but are not limited to: 
Blending of funds and changes to align eligibility requirements, 
allowable uses of funds, and performance reporting.
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    \8\ Applicants are encouraged to consult the list of examples of 
programs that are potentially eligible for inclusion in pilots at 
https://youth.gov/youth-topics/reconnecting-youth/performance-partnership-pilots.
    \9\ Local governments that are requesting waivers of 
requirements in State-administered programs are strongly encouraged 
to consult with the State agencies that administer the programs in 
preparing their applications.

                                                             Table 2--Requested Flexibility
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                                                                Program requirements    Statutory or
            Program name                   Federal agency       to be waived in whole    regulatory        Name of program      Blending funds? (yes/no)
                                                                     or in part           citation             grantee
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 Note: Please note in ``Name of Program Grantee'' if the grantee is a State, local, or Tribal government, or non-governmental entity.

    (2) Non-Federal flexibility, including waivers. The applicant must 
provide written assurance that--
    (i) The State, local, or Tribal government(s) with authority to 
grant any needed non-Federal flexibility, including waivers, has 
approved or will approve such flexibility within 60 days of an 
applicant's designation as a pilot finalist; \10\ or
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    \10\ This includes, for example, for local governments, 
instances in which a waiver must be agreed upon by a State. It also 
includes instances in which waivers may only be requested by the 
State on the local government's behalf, such as waivers of the 
performance accountability requirements for local areas established 
in Title I of the Workforce Innovation and Opportunity Act.
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    (ii) Non-Federal flexibility, including waivers, is not needed in 
order to successfully implement the pilot.\11\
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    \11\ Only top-scoring applicants notified by ED must submit this 
written assurance. The assurance must be transmitted to 
[email protected] by no later than 21 calendar days of the 
applicant's notification by ED that is a top-scoring applicant.
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    (d) Budget and budget narrative.
    (1) The applicant must complete Table 3 to provide the following 
budget information:
    (i) For each Federal program, the grantee, the amount of funds to 
be blended or braided (as defined in this notice), the percentage of 
total program funding received by the grantee that the amount to be 
blended or braided represents, the Federal fiscal year of the award, 
and whether the grant has already been awarded; and
    (ii) The total amount of funds from all Federal programs that would 
be blended or braided, as defined in this notice, under the pilot.

                                            Table 3--Federal Funds 12
----------------------------------------------------------------------------------------------------------------
                                                                   Blended funds
                                                     Amount of         as a
         Program name                Grantee        funds to be    percentage of  Federal fiscal   Grant already
                                                      blended        grantee's     year of award  awarded? (y/n)
                                                                    total award
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
TOTAL BLENDED
----------------------------------------------------------------------------------------------------------------


[[Page 417]]


                                      Table 3--Federal Funds 12--Continued
----------------------------------------------------------------------------------------------------------------
                                                                   Braided funds
                                                     Amount of         as a
         Program name                Grantee        funds to be    percentage of  Federal fiscal   Grant already
                                                      braided        grantee's     year of award  awarded? (y/n)
                                                                    total award
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
TOTAL BRAIDED
----------------------------------------------------------------------------------------------------------------
Note: Applicants may propose to expand the number of Federal programs supporting pilot activities using future
  funding appropriated after FY 2018, which may be included in pilots if Congress extends the P3 authority.

    (e) Partnership capacity and management. The applicant must 
identify the proposed partners, including any and all State, local, and 
Tribal entities and non-governmental organizations that would be 
involved in implementation of the pilot, and describe their roles in 
the pilot's implementation using Table 4. Partnerships that cross 
programs and funding sources but are under the jurisdiction of a single 
agency or entity must identify the different sub-organizational units 
involved.
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    \12\ Applicants are encouraged to consult the list of examples 
of programs that are potentially eligible for inclusion in pilots 
available at https://youth.gov/youth-topics/reconnecting-youth/performance-partnership-pilots.

                         Table 4--Pilot Partners
------------------------------------------------------------------------
                                        Type of
                                     organization
                                    (state agency,      Description of
             Partner                 local agency,     partner's role in
                                    community-based        the pilot
                                     organization,
                                       business)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 Note: Any grantees mentioned in Table 3 that are not the lead applicant
  must be included in Table 4.

    Program Requirements:
    The program requirement for this competition is from the P3 NFP.
    Performance agreement. Each P3 pilot, along with other non-Federal 
government entities involved in the partnership, must enter into a 
performance agreement that will include, at a minimum, the following 
(as required by section 526(c)(2) of Division H of the 2014 Act):
    (a) The length of the agreement;
    (b) The Federal programs and federally funded services that are 
involved in the pilot;
    (c) The Federal discretionary funds that are being used in the 
pilot;
    (d) The non-Federal funds that are involved in the pilot, by source 
(which may include private funds as well as governmental funds) and by 
amount;
    (e) The State, local, or Tribal programs that are involved in the 
pilot;
    (f) The populations to be served by the pilot;
    (g) The cost-effective Federal oversight procedures that will be 
used for the purpose of maintaining the necessary level of 
accountability for the use of the Federal discretionary funds;
    (h) The cost-effective State, local, or Tribal oversight procedures 
that will be used for the purpose of maintaining the necessary level of 
accountability for the use of the Federal discretionary funds;
    (i) The outcome (or outcomes) that the pilot is designed to 
achieve;
    (j) The appropriate, reliable, and objective outcome-measurement 
methodology that will be used to determine whether the pilot is 
achieving, and has achieved, specified outcomes;
    (k) The statutory, regulatory, or administrative requirements 
related to Federal mandatory programs that are barriers to achieving 
improved outcomes of the pilot; and
    (l) Criteria for determining when a pilot is not achieving the 
specified outcomes that it is designed to achieve and subsequent steps, 
including:
    (1) The consequences that will result; and
    (2) The corrective actions that will be taken in order to increase 
the likelihood that the pilot will achieve such specified outcomes.
    Definitions: The following definitions are from the P3 NFP.
    Blended funding is a funding and resource allocation strategy that 
uses multiple existing funding streams to support a single initiative 
or strategy. Blended funding merges two or more funding streams, or 
portions of multiple funding streams, to produce greater efficiency 
and/or effectiveness. Funds from each individual stream lose their 
award-specific identity, and the blended funds together become subject 
to a single set of reporting and other requirements, consistent with 
the underlying purposes of the programs for which the funds were 
appropriated.
    Braided funding is a funding and resource allocation strategy in 
which entities use existing funding streams to support unified 
initiatives in as flexible and integrated a manner as possible while 
still tracking and maintaining separate accountability for each funding 
stream. One or more entities may coordinate several funding sources, 
but each individual funding stream maintains its award-specific 
identity. Whereas blending funds typically requires one or more waivers 
of associated program requirements, braiding does not. However, waivers 
may be used to support more effective or efficient braiding of funds.
    An interim indicator is a marker of achievement that demonstrates 
progress

[[Page 418]]

toward an outcome and is measured at least annually.
    Outcomes are the intended results of a program, or intervention. 
They are what applicants expect their projects to achieve. An outcome 
can be measured at the participant level (for example, changes in 
employment retention or earnings of disconnected youth) or at the 
system level (for example, improved efficiency in program operations or 
administration).
    A waiver provides flexibility in the form of relief, in whole or in 
part, from specific statutory, regulatory, or administrative 
requirements that have hindered the ability of a State, locality, or 
Tribe to organize its programs and systems or provide services in ways 
that best meet the needs of its target populations. Under P3, waivers 
provide flexibility in exchange for a pilot's commitment to improve 
programmatic outcomes for disconnected youth consistent with underlying 
statutory authorities and purposes.
    Program Authority: (a) Section 217 of Division B, section 525 of 
Division H, and section 231 of Division L of the Consolidated 
Appropriations Act, 2018 (Pub. L. 115-141). (b) Section 524 of Division 
B of the Department of Defense and Labor, Health and Human Services, 
and Education Appropriations Acts, 2019 and Continuing Appropriations 
Act, 2019 (Pub. L. 115-245).
    Applicable Regulations: (a) The Education Department General 
Administrative Regulations in 34 CFR parts 75, 77, 79, 81, 82, 86, 97, 
98, and 99, and such other regulations as the Agencies may apply based 
on the programs included in a particular pilot. (b) The Office of 
Management and Budget Guidelines to Agencies on Governmentwide 
Debarment and Suspension (Nonprocurement) in 2 CFR part 180, as adopted 
and amended as regulations of the Department in 2 CFR part 3485. (c) 
The Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards in 2 CFR part 200, as adopted and 
amended as regulations of the Department in 2 CFR part 3474. (d) The P3 
NFP.

II. Performance Pilot Designation Information

    Type of Award: Flexibility.
    Estimated Available Funds: None.
    Estimated Number of Designations: 10 pilots under the FY 2018 
authority, and 10 pilots under the FY 2019 authority.

    Note: The Department is not bound by any estimates in this 
notice.

    Project Period: FY 2018 pilots may operate for as long as FY 2018 
appropriated funds remain available to pilots to obligate to support 
project activities, but not past September 30, 2022. FY 2018 pilots may 
use FY 2019 appropriated funds from ED, HHS, DOL, CNCS, and IMLS 
programs as well, but would still be required to end by September 30, 
2022 FY 2019 pilots may operate for as long as FY 2019 appropriated 
funds remain available to them, but not past September 30, 2023.

III. Eligibility Information

    1. Eligible Applicants: The lead applicant must be a State, local, 
or Tribal government entity, represented by a chief executive, such as 
a governor, mayor, or other elected leader, or the head of a State, 
local, or Tribal agency.
    2. Cost-Sharing or Matching: This program does not require cost-
sharing or matching.

IV. Application and Submission Information

    1. Application Submission Instructions: Applicants must submit 
completed applications to [email protected].
    2. Submission of Proprietary Information: Given the types of 
projects that may be proposed in applications for the P3 competition, 
your application may include business information that you consider 
proprietary. In 34 CFR 5.11 we define ``business information'' and 
describe the process we use in determining whether any of that 
information is proprietary and, thus, protected from disclosure under 
Exemption 4 of the Freedom of Information Act (5 U.S.C. 552, as 
amended).
    Because we plan to make successful applications available to the 
public, including performance agreements, and may make all applications 
available, you may wish to request confidentiality of business 
information.
    Consistent with Executive Order 12600, please designate in your 
application any information that you believe is exempt from disclosure 
under Exemption 4. In the appropriate Appendix section of your 
application, under ``Other Attachments Form,'' please list the page 
number or numbers on which we can find this information. For additional 
information please see 34 CFR 5.11(c).
    3. Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79.
    4. Recommended Page Limit: The application narrative is where you, 
the applicant, provide the information specified in the application 
requirements and address the selection criteria that reviewers use to 
evaluate your application. We recommend that you (1) limit the 
application narrative to no more than 15 pages and (2) use the 
following standards:
     A ``page'' is 8.5 x 11, on one side 
only, with 1 margins at the top, bottom, and both sides.
     Double space (no more than three lines per vertical inch) 
all text in the application narrative, including titles, headings, 
footnotes, quotations, references, and captions.
     Use a font that is either 12 point or larger.
     Use one of the following fonts: Times New Roman, Courier, 
Courier New, or Arial.
    5. Notice of Intent To Apply: The Department will be able to review 
applications more efficiently if we know the approximate number of 
applicants that intend to apply. Therefore, we strongly encourage each 
potential applicant to notify us of its intent to submit an 
application. To do so, please email [email protected] with the 
subject line ``Intent to Apply,'' and include the applicant's name and 
a contact person's name and email address. Applicants that do not 
submit a notice of intent to apply may still apply for designation as a 
pilot; applicants that do submit a notice of intent to apply are not 
bound to apply or bound by the information provided.
    6. Other Submission Requirements: Applications under this 
competition must be submitted electronically unless you qualify for an 
exception to this requirement in accordance with the instructions in 
this section.
    a. Electronic Submission of Applications.
    Applications for pilots under the P3 competition must be submitted 
via email to [email protected].
    Please note the following:
     The Department is not publishing an application package 
for this program. To submit an application, follow the instructions 
listed above to provide all of the information specified in the 
application requirements, absolute priorities, and selection criteria. 
Additionally, complete and submit Standard Form 424B, Assurances for 
Non-Construction Programs (available at www2.ed.gov/fund/grant/apply/appforms/appforms.htmlwww2.ed.gov/fund/grant/apply/appforms/appforms.html) with your application.
     The Department must receive your application by 11:59 p.m. 
Eastern Standard Time on April 29, 2019. We will notify you if we are 
rejecting your application because it was received after the 
application deadline date.
     We may request that you provide us original signatures on 
forms at a later date.

[[Page 419]]

V. Application Review Information

    1. Selection Criteria: The selection criteria for this competition 
and any subsequent year for which we make pilot designations from the 
list of applications from this competition are from the P3 NFP.
    The points assigned to each criterion are indicated in the 
parentheses next to the criterion. An applicant may earn up to 100 
points based on the selection criteria.
    (a) Need for Project. In determining the need for the proposed 
project, we will consider the magnitude of the need of the target 
population, as evidenced by the applicant's analysis of data, including 
data from a comprehensive needs assessment conducted or updated in the 
past three years, using representative data on youth from the 
jurisdiction(s) proposing the pilot, that demonstrates how the target 
population lags behind other groups in achieving positive outcomes and 
the specific risk factors for this population (35 points).

    Note:  Applicants are encouraged to disaggregate these data 
according to relevant demographic factors such as race, ethnicity, 
gender, age, disability status, involvement in systems such as 
foster care or juvenile justice, status as pregnant or parenting, 
and other key factors selected by the applicant. If disaggregated 
data specific to the local population are not available, applicants 
may refer to disaggregated data available through research, studies, 
or other sources that describe similarly situated populations as the 
one the applicant is targeting with its pilot.


    Note:  Applicants do not need to include a copy of the needs 
assessment but should identify when it was conducted or updated.

    (b) Need for Requested Flexibility, Including Blending of Funds and 
Other Waivers. In determining the need for the requested flexibility, 
including blending of funds and other waivers, we will consider:
    (1) The strength and clarity of the applicant's justification that 
each of the specified Federal requirements identified in Table 2 for 
which the applicant is seeking flexibility hinders implementation of 
the proposed pilot (30 points); and
    (2) The strength and quality of the applicant's justification of 
how each request for flexibility identified in Table 2 (i.e., blending 
funds and waivers) will increase efficiency or access to services and 
produce significantly better outcomes for the target population(s) (35 
points).
    2. Review and Selection Process:
    The Department will screen applications that are submitted in 
accordance with the requirements in this notice and will determine 
which applications are eligible to be read based on whether they have 
met the eligibility and application requirements established by this 
notice.
    The Department will use reviewers with knowledge and expertise on 
issues related to improving outcomes for disconnected youth to score 
the selection criteria. The Department will thoroughly screen all 
reviewers for conflicts of interest to ensure a fair and competitive 
review.
    Reviewers will read, prepare a written evaluation of, and score the 
assigned applications, based on the selection criteria.
    The Secretary of Education (Secretary) will also consider 
compliance with assurances including those applicable to Federal civil 
rights laws that prohibit discrimination in programs or activities 
receiving Federal financial assistance (such as, for ED programs, 34 
CFR 100.4, 104.5, 106.4, 108.8, and 110.23).
    Technical scoring. Reviewers will read, prepare a written 
evaluation, and assign a technical score to the applications assigned 
for their review, using the selection criteria.
    ED will then prepare a rank order of applications based on their 
technical scores.
    Flexibility, including blending of funds and other waivers. Using 
this rank order, representatives of the Agencies that administer 
programs under which flexibility in Federal requirements is sought will 
evaluate whether the flexibility, including blending of funds and other 
waivers, requested by top-scoring applicants meets the statutory 
requirements for P3 and is otherwise appropriate. For example, if an 
applicant is seeking flexibility under programs administered by HHS and 
DOL, its requests for flexibility will be reviewed by HHS and DOL 
officials. Applicants may be asked to participate in telephone calls at 
this point in the process in order to clarify requests for flexibility 
and other aspects of their proposals.
    If 25 or fewer eligible applications are received, the technical 
scoring and reviews of flexibility requests may be conducted 
concurrently.
    Selecting finalists. Agency officials may recommend the selection 
of up to 20 projects as Performance Partnership Pilots (up to 10 
projects under the FY 2018 authority, and up to 10 under the FY 2019 
authority). In consultation with the other Agencies, the Secretary will 
select finalists after considering the rank ordering, the 
recommendations of the Agencies that administer the programs for which 
the applicants are seeking flexibility, and other information including 
an applicant's performance and use of funds and compliance history 
under a previous award under any agency program. In selecting pilots, 
the Secretary may consider high-ranking applications meeting Absolute 
Priority 1 and Absolute Priority 2 separately to address the statutory 
requirement that designated pilots include communities that have 
experienced civil unrest. In addition, as required by appropriations 
acts authorizing P3, each pilot must meet all statutory criteria.
    Consistent with Application Requirement (f) in the P3 NFP, each 
finalist must propose to ED and any other Agencies implicated in the 
pilot a performance agreement that includes outcome measures and 
interim indicators to gauge pilot performance. At least one outcome 
measure must be in the domain of education, and at least one outcome 
measure must be in the domain of employment. Finalists may specify 
additional employment and education outcome measures, as well as 
outcome measures in other domains of well-being, such as criminal 
justice, physical and mental health, and housing. Regardless of the 
outcome domain, finalists must identify at least one interim indicator 
for each proposed outcome measure. Finalists may apply one interim 
indicator to multiple outcome measures, if appropriate.
    Examples of outcome measures and interim indicators follow. Pilots 
may choose from this menu or may propose alternative indicators and 
outcome measures if they describe why their alternatives are more 
appropriate for their proposed projects.

                            Education Domain
------------------------------------------------------------------------
            Outcome measure                     Interim indicator
------------------------------------------------------------------------
High school diploma or equivalency        High school
 attainment.                              enrollment.
                                          Reduction in chronic
                                          absenteeism.
                                          Grade promotion.
                                          Performance on
                                          standardized assessments.

[[Page 420]]

 
                                          Grade point average.
                                          Credit accumulation.
College completion.....................   Enrollment.
                                          Course attendance.
                                          Credit accumulation.
                                          Retention.
------------------------------------------------------------------------


                            Employment Domain
------------------------------------------------------------------------
            Outcome measure                     Interim indicator
------------------------------------------------------------------------
Sustained Employment...................   Unsubsidized
                                          employment at time periods
                                          after exit from the program.
                                          Median earnings at
                                          time periods after exit from
                                          the program.
------------------------------------------------------------------------

    For each finalist, ED and any other Agencies implicated in the 
pilot will negotiate the performance agreement. If a performance 
agreement cannot be finalized for an applicant, an alternative 
applicant may be selected as a finalist instead. The recommended 
projects will be considered finalists until performance agreements are 
signed by all parties, and pilot designation will be awarded only after 
finalization and approval of each finalist's performance agreement.

VI. Designation Administration Information

    1. Designation Notices: If your application is successful, we 
notify your U.S. Representative(s) and U.S. Senators and send you a 
letter notification of your selection as a pilot. We may notify you 
informally, also.
    If your application is not evaluated or not selected as a pilot, we 
notify you.
    2. Performance Measures: As described earlier in this notice, the 
performance agreement for each pilot will include outcome measures, 
interim indicators, and targets.

VII. Other Information

    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the program contact person 
listed under FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at: www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Dated: January 22, 2019.
Scott Stump,
Assistant Secretary for Career, Technical, and Adult Education.
[FR Doc. 2019-00200 Filed 1-25-19; 8:45 am]
 BILLING CODE 4000-01-P