81_FR_54373 81 FR 54216 - Veterans Employment Pay for Success Grant Program (“VEPFS program”)

81 FR 54216 - Veterans Employment Pay for Success Grant Program (“VEPFS program”)

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 81, Issue 157 (August 15, 2016)

Page Range54216-54226
FR Document2016-19304

The Department of Veterans Affairs (VA) is establishing a grant program (Veterans Employment Pay for Success (VEPFS)) under the authority of 38 U.S.C. 3119 to award grants to eligible entities to fund projects that are successful in accomplishing employment rehabilitation for Veterans with a Service-connected Disability. VA will award grants on the basis of an eligible entity's proposed use of a Pay for Success (PFS) strategy to achieve goals. This Notice includes the general process for awarding the grant, criteria and parameters for evaluating grant applications, priorities related to the award of a grant, and general requirements and guidance for administering a VEPFS grant program.

Federal Register, Volume 81 Issue 157 (Monday, August 15, 2016)
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54216-54226]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19304]


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DEPARTMENT OF VETERANS AFFAIRS


Veterans Employment Pay for Success Grant Program (``VEPFS 
program'')

AGENCY: VA Center for Innovation, Vocational Rehabilitation and 
Employment, Department of Veterans Affairs (VA).

ACTION: Notice of funding availability.

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SUMMARY: The Department of Veterans Affairs (VA) is establishing a 
grant program (Veterans Employment Pay for Success (VEPFS)) under the 
authority of 38 U.S.C. 3119 to award grants to eligible entities to 
fund projects that are successful in accomplishing employment 
rehabilitation for Veterans with a Service-connected Disability. VA 
will award grants on the basis of an eligible entity's proposed use of 
a Pay for Success (PFS) strategy to achieve goals. This Notice includes 
the general process for awarding the grant, criteria and parameters for 
evaluating grant applications, priorities related to the award of a 
grant, and general requirements and guidance for administering a VEPFS 
grant program.

DATES: Applications for a grant under the VEPFS program must be 
submitted to Grants.gov by 11:59 p.m. Eastern Time September 14, 2016. 
Successful applicants will be notified by September 30, 2016. The award 
made through the VEPFS program will cover a period of 60 months.

FOR FURTHER INFORMATION CONTACT: Patrick Littlefield, Executive 
Director, VA Center for Innovation. [email protected], (202) 
256-7176.
    If mailing correspondence, other than application material, please 
send to: VA Center for Innovation, VA Central Office, Attn: Patrick 
Littlefield (320), 810 Vermont Avenue NW., Washington, DC 20420.
    Disclosure: Publication of this Notice does not obligate VA to 
award any grant or to obligate the entire amount of funding available.

SUPPLEMENTARY INFORMATION: 

I. Program Description

A. Background

    This competition of the VEPFS program is a collaborative effort by 
the Department of Veterans Affairs (VA) and the Corporation for 
National and Community Service (CNCS) to test the Pay for Success (PFS) 
model as a way to improve suitable Employment Outcomes for Veterans 
with a Service-connected Disability of Post-Traumatic Stress Disorder 
(PTSD). Improving suitable Employment Outcomes, as noted in Appendix I, 
means creating positive impact in terms of these outcomes, where the 
results for individuals that receive the Intervention are better than 
the results for a valid comparison group that did not receive the 
Intervention.
    Throughout this document, the nomenclature of outcomes, consistent 
with the Pay for Success field's use of the term, is inextricably 
linked to impact in this Notice. This competition seeks to create a 
meaningful difference in Veterans' lives that would not otherwise 
exist.
    This goal is consistent with the mission of VA, which is to fulfill 
President Lincoln's promise, ``To care for him who shall have borne the 
battle, and for his widow, and his orphan'' by serving and honoring the 
men and women who are America's Veterans. VA's Office of Economic 
Opportunity within the Veterans Benefits Administration has a further 
defined mission to ``Help Veterans attain personal and economic 
success'' through a variety of benefits, services, and activities 
including promoting employment opportunities for Veterans. The targeted 
veterans for this Pay for Success (PFS) pilot will need to have 
Service-connected Disability of PTSD.

[[Page 54217]]

    While VA and other government organizations, such as the Department 
of Labor, have programs that assist Veterans in seeking employment, 
there is not an employment program that focuses specifically and solely 
on Veterans with PTSD. VA is interested in enhancing vocational 
services with the intent of improving overall Employment Outcomes for 
this target group of Veterans. This PFS competition will target the 
effective delivery of employment Interventions to Veterans with a 
Service-connected Disability of PTSD. Employment Outcomes will be 
related to success in obtaining and sustaining suitable employment. The 
overarching goal of this competition is to generate positive impact for 
Veterans as they seek to return to competitive employment. Please see 
Appendix II for more information on the background of the focus of this 
competition.
Background on the Social Innovation Fund as Partner to VA
    The Social Innovation Fund (SIF) at the Corporation for National 
and Community Service (CNCS) has chosen to partner with VA on this 
program. The mission of CNCS is to improve lives, strengthen 
communities, and foster civic engagement through service and 
volunteering. Through AmeriCorps, Senior Corps, and the Volunteer 
Generation Fund, CNCS has helped to engage millions of citizens in 
meeting community and national challenges through service and volunteer 
action. Through the SIF, CNCS has augmented its traditional activities 
with an enhanced focus on identifying and growing innovative, evidence-
based approaches to our nation's challenges.
    The purpose of the SIF is to grow the impact of innovative 
community-based solutions that have compelling evidence of improving 
the lives of people in low-income communities throughout the United 
States. The SIF directs resources toward increasing the evidence-base, 
capacity, and scale of the organizations it funds in order to improve 
the lives of people served by those organizations. The SIF also 
generates broader impact by leveraging the grant program in various 
ways to improve how philanthropies, Federal government departments and 
agencies, state and local government, and community-based organizations 
deploy funds to address social challenges. Additionally, it enhances 
the ability of the nonprofit sector to support the growth of 
innovative, high-impact organizations.
    Ultimately, SIF PFS efforts are intended to:
     Increase knowledge in the social sector about which 
capacity building and PFS Project-structuring practices increase the 
likelihood of successful implementation of PFS projects as well as 
other evidence-based approaches and related social financing 
mechanisms.
     Accelerate the development of the field to make it easier 
to adopt outcomes-focused funding models.
     Attract capital to finance effective solutions to 
challenges facing low-income communities nationwide and to high-
performing organizations that demonstrate the ability to strengthen, 
grow, and sustain effective solutions for challenges facing low-income 
communities.
    CNCS's partnership on this program provides expertise on PFS to 
pair with VA's expertise on Veterans' issues.

B. Funding Purpose

    The VEPFS program will fund a demonstration project 
(``demonstration'') to support and assess the use of Pay for Success 
(PFS) to improve Employment Outcomes for Veterans with a Service-
connected Disability of PTSD. The program will specifically target 
Veterans with a Service-connected Disability of PTSD in low-income 
communities or in geographical areas that have the highest demonstrated 
employment need. Improved Employment Outcomes will be based on whether:
     Employment is consistent with a Veteran's interests, 
aptitudes, skills, and abilities;
     Employment improves (or does not aggravate/worsen) the 
Veteran's disabling conditions;
     Employment requires reasonably developed skills;
     Employment provides the Veteran with a Living Wage 
(preferred) or improves the Veteran's earnings annually; and
     Competitive employment is sustained.
    PFS is a strategy of procuring positive outcomes that manifest in 
positive impact by paying for an Intervention only once it produces 
those outcomes. PFS projects typically involve two elements: a PFS 
Agreement and PFS financing.
    1. A PFS Agreement provides for payment when an Intervention 
achieves positive outcomes at pre-set target levels, as compared to the 
outcomes achieved by a counterfactual group. (Pre-set means set in, and 
by the signatories to, the PFS Agreement before the Intervention is 
deployed.) Achievement of outcomes is typically verified by an 
Evaluator using a robust methodology agreed upon by all parties to a 
transaction to ascertain impact.
    2. PFS financing, sometimes referred to as social impact bonds, is 
the provision of mission-driven capital that covers the upfront costs 
of delivering the Intervention and potentially other project costs. 
Given that verifying the outcomes that trigger Outcomes Payments may 
take several years, Service Providers often will not have the resources 
to self-finance the costs of implementing a preventive Intervention 
during an agreement period. PFS financing covers these costs. Such 
third-party investment is typically at-risk and return of capital (and 
any potential return on investment) via the Outcomes Payor is 
dependent, in whole or in part, on the achievement of outcomes 
identified in the PFS Agreement.
    Projects involving either solely a PFS Agreement, or both a PFS 
Agreement and PFS Financing, are considered viable projects to 
ultimately receive Outcomes Payments funded by the VEPFS program. 
Please see the diagram in Appendix II for the typical, though not 
mandatory, steps in a PFS project that includes PFS financing.
    Note that the PFS Agreement must be in accordance with standards 
relating to evaluation methodology, metrics for Employment Outcomes, 
and investor rate of return to be issued by VA in the terms and 
conditions of the grant agreement.
    For definitions related to the VEPFS program, please see Appendix 
I.
    The VEPFS program will fund Outcomes Payments, which by definition 
in Appendix I are tied to impact, for a High-Quality PFS Project 
designed to improve Employment Outcomes among Veterans with a Service-
connected Disability of PTSD. Through this competition, VA will select 
an entity to act as an Outcomes Payor, administering the Federal funds 
and matching non-Federal funds to pay for improved Employment Outcomes.
    The key objectives of this demonstration are as follows:
    1. Pilot test the PFS model operated by a project coordinator to 
learn whether the PFS approach is feasible to fund a Veterans' 
employment initiative.
    2. Assist Veterans with a Service-connected Disability of PTSD in 
securing employment and/or increasing earnings.
    3. Add evidence to the knowledge base about effective and 
integrated Interventions to support Veterans' employment.
    4. Conduct research to identify lessons learned and best practices 
on the feasibility of testing effective Veterans' employment 
Interventions.

[[Page 54218]]

C. Approach

    1. Applicants must present either a Partial Project Partnership or 
Full Project Partnership for a High-Quality PFS Project at the time of 
application.
    2. The Grant Recipient (referred to as ``Recipient'' in the 
remainder of the document) will serve as an Outcomes Payor and thus a 
party to a PFS Agreement that is designed to improve Employment 
Outcomes among Veterans with a Service-connected Disability of PTSD.
    3. The Recipient is responsible for securing non-Federal funds in 
accordance with the 1:1 cash match requirement for the entire grant 
award.
    4. Within six months of the grant award, the Recipient must submit 
to VA a proposed high-level project plan that outlines key milestones 
and associated target deadlines for the duration of the project period.
    5. The Project Partnership must produce a High-Quality PFS Project 
for improving Employment Outcomes among Veterans with a Service-
connected Disability of PTSD.
    6. The Recipient will capture and share with the public key 
learnings from the PFS activity that this grant supports. The Recipient 
will work with VA and CNCS in order to disseminate information related 
to the Recipient's PFS activity supported by this grant. This 
requirement involves, but is not limited to, the Recipient providing to 
VA and making publicly available all major documents and tools 
developed for the High-Quality PFS Project, including a PFS Agreement, 
taking into consideration the confidentiality needs of Participants as 
well as local, state, and Federal laws.
    7. VA will ensure a Grant Program Assessment is conducted. The 
Grant Program Assessment will ascertain the level of progress made 
towards achieving the objectives articulated in Section I.B. of this 
Notice throughout, and at the conclusion of, the period of performance.
    8. If the Evaluator certifies that the impact of the Intervention, 
as determined through rigorous evaluation, has met the requirements of 
the PFS Agreement, Outcomes Payments will be disbursed by the Recipient 
to the Service Provider.

D. Key Programmatic Requirements

    Any Project Coordinator and Investor(s) must be procured in 
accordance with the requirements in 2 CFR 200.317-200.326. 
Alternatively, nonprofit community organizations may continue to comply 
with the Procurement Standards in OMB Circular A-110 for two additional 
fiscal years, beginning after December 26, 2014, meaning through Fiscal 
Year 2017. Such election must be specified in the nonprofit 
organization's documented policies and procedures. In the case that 
applicants have not yet procured a Project Coordinator and Investor(s) 
but plan to, applicants must present a detailed plan for forming a Full 
Project Partnership at the time of application that follows grant 
procurement requirements in 2 CFR 200.317-200.326 for any Federal funds 
utilized.
    The Recipient must submit to VA a proposed high-level project plan 
that outlines key milestones and associated target deadlines for the 
duration of the project period, reflecting the following activities and 
the duration for each:
     Formation of a Full Project Partnership and development 
and execution of the PFS Agreement;
     Delivery of the Intervention;
     Employment Outcomes evaluation to ascertain impact; and
     Outcomes Payor review of the evaluation and potential 
release of Outcomes Payments. (Note that Employment Outcomes may be 
evaluated and Outcomes Payments released at other times for positive 
impact during this project period if the terms of the PFS Agreement 
call for multiple payment points.)
    The Grant Program Assessment activities include, but are not 
limited to:
     Providing interviews, data and documentation of inputs, 
outputs, and Employment Outcomes to support the Grant Program 
Assessment;
     Requiring participation from the Recipient in the Grant 
Program Assessment; and
     Conducting additional activities to augment the overall 
knowledge sharing agenda.

E. Program Authority

    Funding applied for under this Notice is provided by VA and CNCS.
    VA: Funding from VA is authorized by 38 U.S.C. 3119. Section 3119 
authorizes VA to make grants to public or nonprofit agencies for the 
development of projects ``designed to increase the resources and 
potential for accomplishing the rehabilitation of disabled 
veterans[,]'' which include Veterans with Service-connected 
Disablilities.
    CNCS: Section 198K of the National and Community Service Act of 
1990, Public Law 101-610, as amended, (42 U.S.C. 12653k) established 
CNCS's Social Innovation Fund. The Consolidated and Further Continuing 
Appropriations Act, 2015, Public Law 113-235, Division G, Title IV, 
Corporation for National and Community Service, and The Consolidated 
and Further Continuing Appropriations Act, 2016, Public Law 114-92, 
Division H, Title IV, Corporation for National and Community Service, 
provided that up to 20% of funds made available for the Social 
Innovation Fund may be provided to PFS.
    VA and CNCS entered into an interagency agreement, which designates 
VA as the agency responsible for implementing this PFS project.

II. Federal Award Information

A. Estimated Available Funds and Award Amount

    Up to $3.0 million in Federal funding is available for the award. 
VA intends to award one grant of $3.0 million through this competition.

B. Project Period

    The anticipated start date of grant funding under this announcement 
is September 30, 2016. The grant award covers a five-year project 
period. Applications should represent the full five-year period.

C. Funding Instrument

    The funding mechanism for the VEPFS program is a grant.

III. Eligibility Information

A. Eligible Applicants

    This competition is limited to public or nonprofit agencies, 
including nonprofit institutions of higher learning. Eligible nonprofit 
organizations are defined in 2 CFR 200.70. Eligible applicants must 
propose to serve Veterans with a Service-Connected Disability of PTSD 
in low-income communities or in geographical areas that have the 
highest need in the issue areas. ``Highest need '' means greater than 
the national average, and ``issue areas'' means (1) reductions in 
poverty or increases in economic opportunity for economically 
disadvantaged individuals or (2) health, including health services and 
health eductation.

B. Cost Sharing or Matching

    The Recipient must provide non-Federal cash funds for Outcomes 
Payments that match by 100% the Federal funds received through this 
award. An applicant may meet the match requirement with a combination 
of its own funds and those of other non-Federal sources. At the time of 
application, applicants must present evidence that they have already 
secured 10% of their match requirement in non-Federal cash by 
submitting match

[[Page 54219]]

verification documents, as explained in Section IV.D. (Other Submission 
Requirements) of this Notice.

C. Other

    Entities that have been convicted of a Federal crime may not 
receive assistance described in this Notice.
    Pursuant to the Lobbying Disclosure Act of 1995, an organization 
described in Section 501(c)(4) of the Internal Revenue Code of 1986, 26 
U.S.C. 501(c)(4), that engages in lobbying activities is not eligible 
to apply.

IV. Application and Submission Information

A. Address To Request Application Package

    Applicants may download the application package from Grants.gov. 
Questions regarding the application process should be referred to the 
Program Official: Patrick Littlefield (Executive Director, VA Center 
for Innovation), [email protected], (202) 256-7176 (This is 
not a toll-free number).
    Hearing- or speech-impaired individuals may access this number 
through TTY by calling the Federal Relay Service at 1-800-829-4833 
(this is a toll-free number).

B. Content and Form of Application

1. Application Content
    The VEPFS Grant Program application package provided at Grants.gov 
(Funding Opportunity Number: VA-VACI-2016-01) contains electronic 
versions of the application forms that are required. Additional 
attachments to satisfy the required application information may be 
provided. The application must provide a well-designed plan with a 
clear and compelling justification for receiving the requested funds. 
Reviewers will assess the application on the basis of the program 
goals, partnership, work plan and budget, expertise and capacity, and 
match as noted in Section IV. of this Notice. All VEPFS grant 
applications must consist of the following:
    Completed applications must have the following components:
     Standard Forms (SF) 424, 424A and 424B: The SF-424, SF-
424A, and SF-424B require general information about the applicant and 
proposed project.
     Narrative
    [cir] Executive Summary: An outline of key information and a brief 
description of the applicant's proposal. The Executive Summaries of all 
compliant applications will be published on the VA Web site. The 
outline of key information should include, in outline format, the 
following:

    [cir] Name of Proposal
    [cir] Name of Intervention
    [cir] Type of Partnership Presented at Time of Application [Full/
Partial Project Partnership]
    [cir] Amount of Federal Funds Sought (up to $3.0 million)
    [cir] Match
    [ssquf] Amount of Funding Secured as Cash on Hand (at least 10% of 
the Non-Federal Match Requirement)
    [ssquf] Amount of Funding for which Applicant Has Received 
Commitments
    [ssquf] Amount of Funding for which Applicant Has Received Letters 
of Interest
    [ssquf] Amount of Funding for which Applicant Has Plan to Secure

    [cir] Project Description
    [cir] Project Partnership
    [cir] Work Plan and Budget
    [cir] Expertise and Capacity
    [cir] Match
    [cir] Match Verification Documentation
    See Section V.A. of this Notice for details on information that 
should be included in the Project Description, Project Partnership, 
Work Plan and Budget, Expertise and Capacity, Match, and Match 
Verification Documentation components.
    Applications may not exceed 50 double-spaced pages as the pages 
print out from Grants.gov. The Budget section is not included in the 
page limit. Please note that reviewers will be instructed to stop 
reading the Narrative section of the grant application after page 50. 
Reviewers will not consider material past the page limit.
    Applications must include a Dun and Bradstreet Universal Numbering 
System (DUNS) number and an Employer Identification Number. The DUNS 
number does not replace an Employer Identification Number. You can 
obtain a DUNS number at no cost by calling the DUNS number request line 
at (866) 705-5711 or by applying online at http://fedgov.dnb.com/webform. The Web site indicates a 48-hour email turnaround time on 
requests for DUNS numbers; however, VA recommends registering at least 
30 days before the application due date.
    After obtaining a DUNS number, applicants must also register with 
the System for Award Management (SAM) and maintain an active SAM 
registration until the application process is complete and, if a grant 
is awarded, throughout the life of the award. SAM registration must be 
renewed annually. VA suggests finalizing a new registration or renewing 
an existing one at least two weeks before the application deadline to 
allow time to resolve any issues that may arise. Applicants must use 
their SAM-registered legal name and address on all grant applications 
to VA.
    VA will not make an award to an applicant until the applicant has 
complied with all applicable DUNS and SAM requirements and, if the 
applicant has not fully complied with the requirements by the time VA 
is ready to make an award, VA will determine the applicant is not 
qualified to receive a Federal award and will use this determination as 
a basis for making the award to another applicant. See the SAM Quick 
Guide for Grantees at https://www.sam.gov/sam/transcript/SAM_Quick_Guide_Grants_Registrations-v1.6.pdf.
2. Submission Dates and Times
    Applications are due September 14, 2016 by 11:59 p.m. Eastern Time. 
Submissions received after this application deadline will be considered 
late and will not be reviewed or considered. Submissions via email, 
mail, or fax will not be accepted. VA reserves the right to extend the 
submission deadline and any notice of such extended deadline will be 
posted on the VA Web site.
    It is the responsibility of grant applicants to ensure a full and 
complete application is submitted via Grants.gov. Applicants are 
encouraged to periodically review the ``Version History Tab'' of the 
funding opportunity announcement in Grants.gov to identify if any 
modifications have been made to the funding announcement and/or 
opportunity package. Upon initial download of the funding opportunity 
package, applicants will be asked to provide an email address to be 
notified of any changes to the opportunity package before the closing 
date. Providing your email address will allow Grants.gov to send you an 
email message in the event this funding opportunity package is changed 
and/or republished on Grants.gov prior to the posted closing date. Any 
technical issues during any document download or submission processes 
should be directed to Grants.gov for assistance.
    Once the application is submitted in Grants.gov, the applicant will 
see a confirmation screen explaining that your submission is being 
processed and a link will be provided to track the application. Retain 
the Grants.gov application tracking number received in the application 
submission confirmation screen. This tracking number is also emailed to 
the applicant upon submission.

[[Page 54220]]

    VA may consider an application after the deadline, but only if the 
applicant submits an email explaining the extenuating technical 
circumstance that caused the delay. VA will determine the admissibility 
of late applications on a case-by-case basis. However, please be 
advised that VA will not consider an advance request to submit a late 
application. Applicants must send the email to Patrick Littlefield 
within the 24 hours immediately after the deadline. Communication with 
VA staff, including a program officer, is not a substitute for sending 
a letter to [email protected]. VA will determine whether or 
not to accept a late application on a case-by-case basis.

C. Intergovernmental Review

    The applications will be reviewed solely by subject matter experts 
and authorized personnel from VA and other Federal agencies. The 
program is not subject to Executive Order 12372, ``Intergovernmental 
Review of Federal Programs.''

D. Funding Restrictions

    The Recipient's request for funding must be consistent with the 
limitations and uses of grant funds set forth in this Notice. Pursuant 
to 2 CFR 200.414, for indirect costs, the Recipient may utilize a 10% 
de minimis rate of modified total direct costs, utilize a rate already 
negotiated with the Federal Government, negotiate an indirect cost rate 
for the first time, or charge costs directly following 2 CFR 200.413. 
The indirect rate utilized must be applied consistently across all 
Federal awards.
    The Recipient may draw down funds for Outcomes Payments only after 
the Employment Outcomes have been achieved and verified according to 
pre-set requirements.
    In the event that Employment Outcomes are achieved at or above pre-
set target levels per the terms of the PFS Agreement and all funds for 
Outcomes Payments are claimed: The Recipient will release Outcomes 
Payments, funded by this grant and by non-Federal sources through the 
match requirement, per the terms of the PFS Agreement related to a 
High-Quality PFS Project for improving Employment Outcomes among 
Veterans with a Service-connected Disability of PTSD.
    In the event Employment Outcomes are not achieved at or above pre-
set target levels per the terms of the PFS Agreement and not all funds 
for Outcomes Payments are claimed: The Recipient shall not draw down VA 
or CNCS funds for Outcomes Payments as opposed to funds for indirect 
costs. Instead, CNCS funds for Outcomes Payments will return to CNCS 
and VA funds for Outcomes Payments will return to the U.S. Treasury via 
VA.

E. Other Submission Requirements

1. Electronic Submission via Grants.gov
    Applications for the VEPFS program must be submitted electronically 
through Grants.Gov.
2. Submission of Additional Documents
    Match Verification Documentation: At the time of application, 
applicants must demonstrate through a letter or other form of 
documentation that they have cash-on-hand that meets 10% of their match 
requirement. Applicants may demonstrate cash-on-hand by a statement 
from the Chief Financial Officer or other officer that the organization 
has established a reserve of otherwise uncommitted funds for the 
purposes of fulfilling this match requirement. A bank statement or 
report of assets is not sufficient without the accompanying statement 
that the funds are uncommitted. Applicants may also demonstrate 
commitments by a dated and signed letter from each donor/foundation, 
indicating the amount of funds committed for the specific use of 
supporting this grant. Such a letter must contain a firm commitment to 
provide the applicant the stated funding upon award of a grant by VA.
    To demonstrate cash on hand, applicants may demonstrate cash-on-
hand by a statement from the Chief Financial Officer or other officer 
that the organization has established a reserve of otherwise 
uncommitted funds for the purposes of fulfilling this match 
requirement. A bank statement or report of assets is not sufficient 
without the accompanying statement that the funds are uncommitted. 
Applicants may also demonstrate commitments by a dated and signed 
letter from each donor/foundation, indicating the amount of funds 
committed for the specific use of supporting this grant. Such a letter 
must contain a firm commitment to provide the applicant the stated 
funding upon award of a grant by VA.
    Documentation must be uploaded as part of the grant application 
package to Grants.gov. Applicants should include the following 
information:
     The legal applicant name and applicant's point of contact 
information;
     The application ID number;
     A list of documents attached to the email;
     Individually saved files that are clearly labeled; and
     Files that include the legal applicant name and 
application ID number within the body of the document.
    Applications must be submitted as a complete package, including the 
additional documents. Materials arriving separately will not be 
considered and may result in the application being rejected. Match 
verification, as well as all other documentation must be received by 
the application deadline. Submission of evidence of match by the 
application deadline is a compliance criterion.
    Do not submit supplementary material such as videos, brochures, 
letters of support, or any items not requested in this Notice. VA will 
not review or return them.

V. Application Review Information

A. Selection Criteria

    Reviewers will assess the degree to which the applicant clearly and 
convincingly meets the following criteria and score them according to 
the points assigned to each criteria (out of 100 total points 
possible):
1. Project Description (up to 30 points)
     Identifies and describes an employment Intervention for 
Veterans with a Service-connected Disability of PTSD (3 points);
     Identifies and describes the methodology for delivering an 
employment Intervention to Veterans with a Service-Connected Disability 
of PTSD through a PFS Agreement that is supported by Strong Evidence, 
describing the Strong Evidence of the Intervention and describing the 
Employment Outcomes to be evaluated. Please include information on the 
measurable Employment Outcomes the applicant seeks to improve by 
replicating or expanding a proven initiative or supporting a new 
evidence-based initiative (5 points);
     Identifies where geographically the Intervention to be 
delivered through the PFS Agreement will be deployed and explains in 
detail how that Intervention will serve Veterans with a Service-
connected Disability of PTSD in (1) low-income communities or (2) 
geographical areas that have the highest need for the issue areas (7 
points);
     Identifies and justifies the number and population of 
Veterans expected to be served by the Intervention to be delivered 
through the PFS Agreement, and why the proposed Intervention is well-
suited to the target population and context (2.5 points);
     Defines the method for determining an appropriate Veteran 
control group for the evaluation of Employment Outcomes (2.5 points);
     Describes any employer engagement, development, and 
training strategies (2.5 points);

[[Page 54221]]

     Describes the integration and role of mental health care 
professionals in the project (2.5 points);
     Describes how the PFS project will promote the Employment 
Outcome of a Living Wage as a result of the Intervention as compared to 
the control group (2 points);
     Describes how the PFS project will promote the Employment 
Outcome of an appreciable increase in annual earnings for Veterans as a 
result of the Intervention as compared to the control group (1 point);
     Describes how the applicant will sustain the replicated or 
expanded initiative after the conclusion of the grant period (2 
points).
2. Project Partnership (up to 25 points)
     For applicants presenting a Full Project Partnership at 
the time of application (25 points). Provides the name, qualifications, 
and project responsibilities of each of the following partner entities 
committed to the project:
    [cir] Project Coordinator
    [cir] Evaluator
    [cir] Investor(s) if the PFS Agreement will involve PFS financing
    [cir] Service Provider(s). Please include as part of qualifications 
any experience working with Veterans.
     For applicants presenting a Partial Project Partnership at 
the time of application (15 points).
    [cir] Provides the name, qualifications, and project 
responsibilities of any of the following partner entities committed to 
the project (7 points):

 Project Coordinator
 Evaluator
 Investor(s) if the PFS Agreement will involve PFS financing
 Service Provider(s). Please include as part of the 
qualifications any experience working with Veterans.
    [cir] Describes a plan that has a high likelihood of success to 
transparently form a Full Project Partnership (5 points).
    [cir] Provides evidence of experience in developing partnerships 
for social innovation generally and/or PFS specifically (3 points).
3. Work Plan and Budget (up to 20 points)
     Proposes a high-level work plan that provides specific, 
realistic, and actionable timelines tied to completion of the following 
tasks within the project period and includes staff roles assigned to 
complete the following tasks, noting whether such staff members are 
already hired (10 points):
    [cir] Secure any remaining non-Federal funds for the match 
requirement;
    [cir] Form a Full Project Partnership if it has not been formed 
yet;
    [cir] Execute a PFS Agreement for a High-Quality PFS Project that 
evaluates impacts within the period of performance and potential 
release of Outcomes Payments;
    [cir] Define reporting structure, data collection methods, Evaluate 
Outcomes and performance metrics, and evaluation approach.
     Provides a budget narrative that (10 points):
    [cir] Breaks down total funds by:

 Amount of total funding for indirect costs (in accordance with 
2 CFR 200.414)
 Amount of total funding for Outcomes Payments

    [cir] Breaks down total funds by:

 The amount of the Federal share
 The amount of the non-Federal share (i.e., matching funds)

    [cir] Justifies the amount budgeted for Outcomes Payments in terms 
of an appropriate rate of return for Investors and number of Veterans 
to be served.
4. Expertise and Capacity (up to 17 points)
     Provides evidence of past experience among its in-house 
staff (and/or Board of Directors if applicant is a 501c(3) nonprofit 
organization) working on:
    [cir] Pay for Success or other social finance strategies (6 
points);
    [cir] Issues specific to Veterans (1 point);
    [cir] Workforce supports for individuals facing mental health 
challenges, including PTSD (1 point);
    [cir] Demonstrated knowledge of sound vocational rehabilitation 
principles (1 point);
    [cir] Knowledge of and adherence to Service-Connected Disability 
related privacy concerns (1 point);
    [cir] Experience with employment focused and/or mental health 
service providers (1 point);
    [cir] Data on the measurable Employment Outcomes the applicant has 
improved (1 point).
     Identifies and explains sufficient capacity (i.e., 
knowledge, skill, and time) among existing in-house staff or those to 
be hired, to carry out its responsibilities if selected as a Recipient 
(3 points).
     Describes how the applicant uses data to analyze and 
improve its initiatives (2 points).
5. Match (up to 8 points)
     Identifies and provides evidence for the percentage of its 
match requirement that meets each of the four categories:
    1. Funds that the applicant has secured (i.e., made available if 
itself providing the funds or already received from others) as cash on 
hand to meet the match requirement;
    2. Funds for which the applicant has received commitments;
    3. Funds for which the applicant has received letters of interest 
from funders;
    4. Funds the applicant has a credible plan to secure.
    Points will be allocated as follows:
    [cir] Each applicant will identify the percentage of its match 
requirement that meets each of the four categories above.
     For example, Applicant ABC identifies that it has secured 
half its match requirement and received letters of interest from 
funders in providing the remaining half.
    [cir] Those percentages will be multiplied as follows: by 100% for 
funds that are secured; by 90% for funds that have been committed; by 
60% for funds that funders have expressed interest in providing; and by 
30% for funds that the applicant has a credible plan to secure.
    [cir] For Applicant ABC, the reviewer would multiply 50% x 100% for 
the secured funds (50% x 100% = 50%) and multiply 50% x 30% for the 
funds supported for which the applicant has a credible plan to secure 
(50% x 30% = 15%).
    [cir] The resultant percentages will be added to yield the 
applicant's ``match score multiplier.'' It will be no more than 100%.
     For Applicant ABC, the ``match score multiplier'' would be 
65% (50% + 15%).
    [cir] The ``match score multiplier'' will be applied to 8 points. 
This is the applicant's point allocation for this selection criteria.
     For Applicant ABC, the score would be 5.2 points (65% x 8 
points).

C. Review and Selection Process

    VA and other Federal Agencies will review all grant applications 
received in response to this Notice according to the following steps.
1. Compliance Review
    VA staff will review all applications to determine compliance with 
the following Threshold Requirements:
     The application is filed within the time period 
established in this Notice;
     The application is complete;
     The applicant is an eligible entity;
     The applicant demonstrates it has 10% of the match 
requirement as cash on hand.
    The compliance review does not include reading the entire 
application. Applications that do not meet all compliance criteria will 
be determined non-compliant, and therefore will not be

[[Page 54222]]

considered. Applications must be received through Grants.gov, as 
specified in Section IV. of this Notice, on or before the application 
deadline published in Section IV. of this Notice.
2. Application Review
    Staff reviewers from VA, CNCS, and possibly other Federal Agencies 
will assess and score all compliant applications. VA will recruit, 
screen for conflicts of interest, and select reviewers on the basis of 
their expertise in Pay for Success programming and/or the Selection 
Criteria articulated in Section IV.A. of this Notice, as well as their 
expertise in assessing grant applications. The applications will be 
ranked in order from highest to lowest scores.
3. Risk Assessment Evaluation
    VA staff will evaluate the risks to the program posed by each 
applicant, including conducting due diligence to ensure an applicant's 
ability to manage Federal funds. This evaluation is in addition to the 
evaluation of the applicant's quality of its application, and results 
from this evaluation will inform funding decisions. If VA determines 
that an award will be made, special conditions that correspond to the 
degree of risk assessed may be applied to the award. In evaluating 
risks, VA may review and consider the following:
     Financial stability;
     Quality of management systems and ability to meet the 
management standards prescribed in the Uniform Guidance (2 CFR Part 
200);
     Applicant's record in managing previous Federal awards, 
grants, or procurement awards, including:
    [cir] Timeliness of compliance with applicable reporting 
requirements;
    [cir] Accuracy of data reported;
    [cir] Validity of performance measure data reported;
    [cir] Conformance to the terms and conditions of previous Federal 
awards; and
    [cir] If applicable, the extent to which any previously awarded 
amounts will be expended prior to future awards.
     Information available through OMB-designated repositories 
of government-wide eligibility qualification or financial integrity 
information, such as:
    [cir] Federal Awardee Performance and Integrity Information System 
(FAPIIS);
    [cir] Dun and Bradstreet; and
    [cir] ``Do Not Pay.''
    Applicants may review and comment on information available through 
these OMB-designated repositories and VA will consider any comments 
made by the applicant.
     Reports and findings from single audits performed under 
Subpart F--Audit Requirements, 2 CFR Part 200, OMB Circular A-133, and 
findings of any other available audits;
     Applicant organization's annual report;
     Publicly available information, including information from 
the applicant organization's Web site;
     Applicant's ability to effectively implement statutory, 
regulatory, or other requirements imposed on award recipients;
     Applicant's past compliance or ability to comply with 
Federal procurement requirements in procuring the Project Coordinator 
and Investor(s) in accordance with 2 CFR 200.317-200.326.
4. Applicant Clarification
    Following the review process and risk assessment evaluation, VA may 
ask some applicants to provide clarifying information. VA staff uses 
clarifying information to inform funding recommendations. A request for 
clarification does not guarantee a grant award. If an organization does 
not respond by the deadline to a request for clarification, VA will 
remove its application from consideration. Applicants must be prepared 
to provide documentation of eligibility criteria and other support 
documentation described in the narrative, including demonstrated 
commitment of key experts and team. VA may conduct a site visit 
inspection, as appropriate.
5. Selection for Funding
    VA will utilize the ranked scores of applications as the primary 
basis for selection, ultimately made by the delegated official who may 
factor in the risk assessment and clarification information provided by 
the applicant.
6. Applicant Feedback
    VA will provide reviewer feedback to compliant applicants following 
announcement of the selected Recipient and grant award. This feedback 
will be based on the review of the original application and will not 
reflect information that may have been provided in response to requests 
for clarification.

VI. Federal Award Administration Information

A. Federal Award Notices

    Although subject to change, the VA VEPFS Grant Program Office 
expects to announce the results of this competition by September 30, 
2016. Prior to executing any funding agreement, VA will contact 
successful applicant(s), make known the amount of proposed funding, and 
verify the applicant's desire to receive the funding. In advance of 
grant award, successful applicants will be required to complete the VA 
Form 26-0967, which is a ``Certification Regarding Debarment, 
Suspension, Ineligibility and Voluntary Exclusion.'' Any communication 
between the VA VEPFS Grant Program Office and successful applicant 
prior to the issuance of an award notice is not authorization to begin 
project activities. Once VA verifies that the grant applicant is still 
seeking funding, VA will issue a signed and dated award notice. The 
award notice will be sent by U.S. Mail to the organization listed on 
the SF-424. Unsuccessful applicants will be notified by letter, sent by 
U.S. Mail to the organization listed on the SF-424. The Notice of Grant 
Award signed by the VA VEPFS Grant Program officer is the authorizing 
document for grant activities.
    An awardee may not expend Federal funds until the start of the 
Project Period identified in the Notice of Grant Award.

B. Administrative and National Policy Requirements

    The Notice of Grant Award incorporates the approved application as 
part of the binding commitments under the grant, as well as the 
requirements of applicable sections of 38 U.S.C. 3119, as well as the 
requirements of applicable sections of the National and Community 
Service Act of 1990, Public Law 101-610, The Consolidated and Further 
Continuing Appropriations Act, 2015, Public Law 113-235, Division G, 
Title IV, Corporation for National and Community Service, and other 
applicable statutes and regulations. Awards will also be subject to the 
General and Specific Terms and Conditions established for grants and 
any Special Conditions attached to the award.
    Grants under this program are subject to the Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards (Uniform Guidance, now consolidated in 2 CFR parts 200 and VA's 
implementing regulation at [fill in when we hae reg cite] and CNCS's 
implementing regulation at Part 2205). This final guidance supersedes 
and streamlines requirements from OMB Circulars A-21, A-87, and A-122 
(the former Cost Principles), A-110 and A-102 (the former 
Administrative Requirements), A-133 and A-50 (the former Audits and 
Audit Follow up),

[[Page 54223]]

and A-89 (the former Federal Domestic Assistance Program Information).

C. Reporting

    VA places great emphasis on the responsibility and accountability 
of Recipients. Applicants should be aware of the following: Upon 
execution of a grant agreement with VA, the Recipient(s) may have a 
liaison appointed by VA who will provide oversight and monitor services 
provided to Veterans. The Recipient(s) must provide to VA certain 
information, which will include but will not necessarily be limited to:
    1. Quarterly Reports. The Recipient must submit to VA quarterly 
reports based on the Federal fiscal year, which include the following 
information (and any associated costs):
     Record of time and resources expended administering the 
VEPFS program;
     The number of Veterans served, including demographics of 
this population;
     Types of employment assistance provided;
     A full accounting of VEPFS administrative funds received 
from VA and used or unused during the quarter;
     Results of routine monitoring and any project variations;
     A comparison of accomplishments related to objectives of 
the award;
     An explanation for any goals not met;
     Analysis and explanation for any cost overruns. Reports 
must be submitted to VA no later than 30 calendar days after the close 
of each Federal fiscal quarter.
    2. Additional Reports. VA may request additional reports if 
necessary to allow VA to fully and effectively assess project 
accountability.
    3. Other Requirements. The Recipient shall conform, if necessary, 
to the requirements of 2 CFR part 200, Appendix XII--Award Term and 
Condition for Recipient Integrity and Performance Matters.

VII. Federal Awarding Agency Contact

    For further information contact: Patrick Littlefield, Executive 
Director, VA Center for Innovation, [email protected], (202) 
256-7176.
    If mailing correspondence, other than application material, please 
send to: VA Center for Innovation, VA Central Office, Attn: Patrick 
Littlefield (320), 810 Vermont Avenue NW., Washington, DC 20420.
    All correspondence with the VA concerning this Notice should 
reference the title and funding opportunity number listed at the top of 
this solicitation. Please read the complete announcement before sending 
inquiries or submitting proposals. Once the Notice deadline has passed, 
the VA staff may not discuss this competition with applicants until the 
review process has been completed.

VIII. Other Information

A. Transparency in Grant Making

    VA is committed to transparency in grantmaking. This Notice 
includes a description of the application review and selection process. 
In addition, the following information for compliant applications will 
be published on the VA and CNCS Web site within 90 business days after 
all grants are awarded:
     A list of all compliant applications submitted;
     Executive summaries of all compliant applications as 
submitted by the applicants;
     Data extracted from the Face Sheet of Standard Form 424 
(SF-424);
     The program narratives for the successful application.

B. Payments of Grant Funds

    Funds will be dispersed by the U.S. Department of Health and Human 
Services Payment Management System. A special condition will be placed 
on funds for Outcomes Payments that will prevent the funds from being 
drawn down until Employment Outcomes are achieved and verified, 
creating positive impact. If Employment Outcomes have been achieved per 
the terms of the PFS Agreement, creating positive impact, funding for 
Outcomes Payments may then be drawn down through the same system. 
Payment methods must minimize the time elapsing between the transfer of 
funds from the U.S. Treasury and the disbursement by the Recipient.

Appendix I: Definitions

Key Parties

     Evaluator: An independent entity that determines the 
impact of the services provided, including whether the services have 
resulted in Employment Outcomes that meet target levels that have 
been agreed to in advance of the provision of the Intervention.
     Investor: An person or entity that provides upfront 
capital to cover costs of providing services/delivering an 
Intervention and other associated costs before a determination has 
been made as to whether certain Employment Outcomes have been 
achieved at pre-set target levels. Investors' upfront capital may 
also be used to pay for the evaluation of outcomes and the costs of 
the Project Coordinator's work.
     Outcomes Payor: An entity that receives a VEPFS grant 
and administers payment for outcomes of an intervention that meet 
target levels that have been agreed to in advance of the provision 
of the Intervention.
     Participant: An eligible Veteran who receives services 
through a PFS project to which potential Outcomes Payments funded by 
a VEPFS grant have been dedicated.
     Project Coordinator: An entity that facilitates, 
coordinates, and executes a PFS Agreement to improve Employment 
Outcomes for Veterans with a Service-connected Disability of PTSD. 
With respect to other PFS projects, Project Coordinators are 
sometimes referred to as intermediaries. Responsibilities may 
include, but are not limited to, building a financial model to guide 
the terms of the PFS Agreement and raising capital from Investors 
for the PFS Agreement that involve PFS financing. For the purposes 
of this Notice, we exclusively use the term Project Coordinators to 
refer specifically to an organization's role in facilitating a PFS 
project.
     Recipient: An entity that receives a grant through the 
VEPFS program. For the purpose of the VEPFS program, the Recipient 
is also the Outcomes Payor.
     Secretary: Refers to the Secretary of Veterans Affairs.
     Service Provider: An entity that delivers an 
Intervention designed to achieve improved Employment Outcomes for 
Veterans with a Service-connected Disability of PTSD.
     Veteran: Defined as provided in 38 CFR 3.1.

Key Concepts

     Employment Outcome: The employment or earnings of a 
Participant in the Intervention or control group member after the 
service period. The VEPFS program will measure certain outcomes, 
including competitive employment, skill development, achieving a 
sustained period of employment, wage-earnings, and achieving 
employment that aligns with the interests and aptitude of the job 
seeker. Improving Employment Outcomes means creating positive impact 
in terms of these outcomes, where the results for individuals that 
receive the Intervention are better than the results for a valid 
control group that did not receive the Intervention.
     Grant Program Assessment: The set of activities and 
deliverables that assess the effectiveness of the VEPFS program in 
achieving the objectives articulated in Section I.C. of this Notice. 
(It is distinct from the evaluation of the Intervention that 
potentially triggers release of Outcomes Payments.)
     High-Quality PFS Project: For the purpose of this 
Notice, a PFS Project that includes the following components:
    [cir] A well-defined problem and associated target population.
    [cir] A evidence-based preventive service delivery strategy that 
is managed, coordinated, and guided by the Service Provider, is 
flexible and adaptive to the target problem and population, and has 
Strong Evidence.
    [cir] Well-defined, achievable potential outcome target(s) as 
compared to a control group that are a significant improvement on 
the current condition of the target population and have been agreed 
to by all required project partners.

[[Page 54224]]

    [cir] A rigorous impact evaluation that uses an experimental or 
quasi-experimental design that is well-executed by an Evaluator.
    [cir] A financial model that shows public sector value, 
including cost savings or efficiency as well as societal benefit, 
and tracks effects of the project on relevant Federal, state, and 
local funding sources.
    [cir] A commitment from an entity to act as an Outcomes Payor 
(whose Outcomes Payments may be directed to Investors if they have 
covered, in part or in whole, costs associated with delivering the 
Intervention and constructing and managing the project).
    [cir] If needed, a binding commitment of funds from one or more 
independent Investors to cover relevant operating costs of the 
Intervention, including administrative costs of the intermediary.
    [cir] A PFS Agreement and any associated necessary agreements 
that incorporate all elements above.
     Intervention: A service or technology that is provided 
to individuals and is intended to achieve certain results. Examples 
of service interventions or technological interventions to improve 
Veteran Employment Outcomes include, but are not limited to, support 
services, employment coaching, mental health treatment, vocational 
training, occupational therapy, community engagement, and outreach.
     Living Wage: A wage on which it is possible for a wage 
earner or an individual and his or her family to live at least 
according to minimum customary standards in the geographic region 
where the individual resides.
     Outcomes Payments: Funds that are paid to an Investor 
or Service Provider and that are released only for the achievement 
of outcomes, as compared to those of a control group, that meet 
target levels that have been agreed to in advance of the provision 
of an Intervention (i.e., if positive impact has been created by the 
Intervention in terms of these outcomes). When Investors have 
provided the upfront capital for the project, these payments 
generally cover repayment of the principal investment and provide a 
modest return on investment for any associated risks of paying for 
the Intervention upfront.
     Pay for Success (PFS) Agreement: A multi-party 
agreement to deliver an innovative or evidence-based Intervention 
intended to improve outcomes for a targeted population signed by the 
entities that constitute the Project Partnership.
     Project Partnership: A collaboration among entities 
that negotiate and execute a project to improve Employment Outcomes 
for Veterans with a Service-connected Disability of PTSD. For the 
purpose of the VEPFS grant program described in this Notice, a 
Project Partnership is not a distinct legal entity. The entities 
that may be involved in a Project Partnership include: Outcomes 
Payor, Project Coordinator, Evaluator, Investor, Service Provider.
    [cir] Full Project Partnership: A Project Partnership that 
includes all of the following stakeholders:
     Evaluator;
     Investor(s) if PFS Agreement will involve PFS 
Financing;
     Outcomes Payor; and
     Service Provider(s).
    [cir] Partial Project Partnership: A Project Partnership that 
includes the Outcomes Payor and at least one--but not all--of the 
following stakeholders:
     Evaluator;
     Investor(s) if PFS Agreement will involve PFS 
Financing; and
     Service Provider(s).
     Service-connected Disability: A disability that is 
``service-connected'' as defined in 38 CFR 3.1.
     Strong Evidence: Evidence from previous studies, the 
designs of which support causal conclusions (i.e., studies with high 
internal validity), which include enough of the range of 
Participants and settings to support scaling up to the state, 
regional, or national level (i.e., studies with high external 
validity). The following are examples of Strong Evidence: (1) More 
than one well-designed and well-implemented experimental study or 
well-designed and well-implemented quasi-experimental study that 
supports the effectiveness of the practice, strategy, or program; or 
(2) one large, well-designed and well-implemented randomized 
controlled, multisite trial that supports the effectiveness of the 
practice, strategy, or program.

Appendix II: Background on the Focus of this VEPFS Competition

    Given the manpower buildup for the wars in Afghanistan and Iraq 
and the nearing completion of the U.S. combat mission in those 
countries, the U.S. military implemented a troop drawdown that is 
planned to continue over the next few years. This has resulted in a 
multitude of Servicemembers transitioning out of the military and 
into the civilian workforce. Transitioning back into civilian life 
and finding employment can be challenging for many Veterans. 
Veterans with Service-connected Disabilities, especially mental 
health conditions, may experience an even more difficult transition 
process and encounter significant employment barriers compared to 
other Veterans.
    PTSD, a mental health condition that can develop after exposure 
to a traumatic event such as warfare, is particularly pervasive 
among Veterans. A recent report in JAMA provided a detailed 
assessment of the Army Study to Assess Risk and Resilience in 
Servicemembers (Army STARRS) project and found PTSD to be 15 times 
higher in soldiers compared to civilians.\1\ Up to 20% of Veterans 
from recent tours of duty have experienced PTSD.\2\ As of 2015, more 
than 400,000 Operation Enduring Freedom (OEF), Operation Iraqi 
Freedom (OIF), and Operation New Dawn (OND) Veterans were seen for 
potential PTSD at VA facilities following their return from overseas 
deployments.\3\
---------------------------------------------------------------------------

    \1\ http://www.ncbi.nlm.nih.gov/pmc/articles/PMC4075436/.
    \2\ http://www.nytimes.com/2010/07/08/us/08vets.html?_r=0.
    \3\ http://www.publichealth.va.gov/docs/epidemiology/ptsd-report-fy2015-qtr2.pdf.
---------------------------------------------------------------------------

    Veterans with PTSD are likely to face challenges in the 
transition process and in particular with obtaining and maintaining 
suitable, stable employment. Symptoms of PTSD may include lack of 
interest in engaging in tasks and activities, anxiety, depression, 
cardiovascular disease, feelings of detachment from others, 
sleeplessness, and trouble with concentration. This vast array of 
symptoms combined with other employment barriers such as limited 
non-military vocational skills and work experience, lack of 
resources to assist with preparation for finding a civilian job, and 
a challenging job market can prevent Veterans with PTSD from 
successfully achieving their civilian vocational goals.
    PTSD is listed in the recognized authority on mental illness 
diagnoses, the Diagnostic and Statistical Manual of Mental 
Disorders, Fifth Edition (DSM-V). The DSM-V is utilized by VA in 
conducting Service-connected Disability evaluations for VA 
compensation purposes.
    A study conducted by VA in 2011 confirmed that a negative 
relationship exists between mental health conditions, mental health 
issues, and employment.\4\ The unemployment rates for people with 
mental illness are high. People with severe mental illness have 
exceptionally higher rates of unemployment, between 60-100%. People 
with long-term psychiatric disabilities are less likely to be 
employed than those with long-term physical disabilities. A person's 
self-esteem may also be compromised during unemployment, leading to 
anxiety and self-doubt. The study also asserts that feelings of 
``helplessness'' arise when a person believes he/she has little 
influence over important events in his/her life, such as securing 
meaningful work. In VA's experience the overwhelming majority of 
Veterans using the VA systems want to be employed, or at least be 
engaged in meaningful activity. However, their disability may create 
a barrier to employment.
---------------------------------------------------------------------------

    \4\ http://www.nchv.org/images/uploads/Employment_Status_of_Patients_in_the_VA_Health_System-Implications_for_Mental_Health_Services_WEB.pdf.
---------------------------------------------------------------------------

    Mental health providers view vocational rehabilitation and 
employment services as an integral part of a treatment plan for 
Veterans with PTSD or other mental health challenges. They report 
that Veterans have better outcomes while actively pursuing an 
employment goal.5 6 Many people with mental health 
conditions view employment as central to their lives, yet fewer than 
15% have jobs.\7\ Thus, participation in a program that focuses on 
vocational needs should lead to improved functional and Employment 
Outcomes for Veterans with a Service-connected Disability of PTSD.
---------------------------------------------------------------------------

    \5\ http://www.nchv.org/images/uploads/Posttraumatic_stress_disorder_and_employment_in_veterans_participating_WEB.pdf.
    \6\ http://www.rehab.research.va.gov/jour/07/44/6/pdf/resnick.pdf.
    \7\ http://www.ncbi.nlm.nih.gov/pubmed/15616477.

---------------------------------------------------------------------------

[[Page 54225]]

[GRAPHIC] [TIFF OMITTED] TN15AU16.020


[[Page 54226]]



Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the 
document to the Office of the Federal Register for publication 
electronically as an official document of the Department of Veterans 
Affairs. Gina S. Farrisee, Deputy Chief of Staff, Department of 
Veterans Affairs, approved this document for publication.

    Dated: August 5, 2016.
Jeffrey Martin,
Office Program Manager, Office of Regulation Policy & Management, 
Office of the Secretary, Department of Veterans Affairs.
[FR Doc. 2016-19304 Filed 8-12-16; 8:45 am]
BILLING CODE 8320-01-P



                                                54216                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices




                                                  Dated: August 5, 2016.                                eligible entity’s proposed use of a Pay               Community Service (CNCS) to test the
                                                Stuart Feldstein,                                       for Success (PFS) strategy to achieve                 Pay for Success (PFS) model as a way
                                                Director, Legislative and Regulatory                    goals. This Notice includes the general               to improve suitable Employment
                                                Activities, Office of the Comptroller of the            process for awarding the grant, criteria              Outcomes for Veterans with a Service-
                                                Currency.                                               and parameters for evaluating grant                   connected Disability of Post-Traumatic
                                                  Board of Governors of the Federal Reserve             applications, priorities related to the               Stress Disorder (PTSD). Improving
                                                System, August 8, 2016.                                 award of a grant, and general                         suitable Employment Outcomes, as
                                                Robert deV. Frierson,                                   requirements and guidance for                         noted in Appendix I, means creating
                                                Secretary of the Board.                                 administering a VEPFS grant program.                  positive impact in terms of these
                                                  Dated at Washington, DC, this 5th day of              DATES: Applications for a grant under                 outcomes, where the results for
                                                August 2016.                                            the VEPFS program must be submitted                   individuals that receive the Intervention
                                                Federal Deposit Insurance Corporation.                  to Grants.gov by 11:59 p.m. Eastern                   are better than the results for a valid
                                                Ralph E. Frable,                                        Time September 14, 2016. Successful                   comparison group that did not receive
                                                Assistant Executive Secretary.                          applicants will be notified by September              the Intervention.
                                                                                                        30, 2016. The award made through the                    Throughout this document, the
                                                [FR Doc. 2016–19268 Filed 8–12–16; 8:45 am]
                                                                                                        VEPFS program will cover a period of                  nomenclature of outcomes, consistent
                                                BILLING CODE 4810–33–P; 6210–01–P; 6714–01–C
                                                                                                        60 months.                                            with the Pay for Success field’s use of
                                                                                                        FOR FURTHER INFORMATION CONTACT:                      the term, is inextricably linked to
                                                                                                        Patrick Littlefield, Executive Director,              impact in this Notice. This competition
                                                DEPARTMENT OF VETERANS                                  VA Center for Innovation.                             seeks to create a meaningful difference
                                                AFFAIRS                                                 Patrick.Littlefield@va.gov, (202) 256–                in Veterans’ lives that would not
                                                                                                        7176.                                                 otherwise exist.
                                                Veterans Employment Pay for Success                       If mailing correspondence, other than                 This goal is consistent with the
                                                Grant Program (‘‘VEPFS program’’)                       application material, please send to: VA              mission of VA, which is to fulfill
                                                AGENCY:  VA Center for Innovation,                      Center for Innovation, VA Central                     President Lincoln’s promise, ‘‘To care
                                                Vocational Rehabilitation and                           Office, Attn: Patrick Littlefield (320),              for him who shall have borne the battle,
                                                Employment, Department of Veterans                      810 Vermont Avenue NW., Washington,                   and for his widow, and his orphan’’ by
                                                Affairs (VA).                                           DC 20420.                                             serving and honoring the men and
                                                                                                          Disclosure: Publication of this Notice              women who are America’s Veterans.
                                                ACTION: Notice of funding availability.                 does not obligate VA to award any grant               VA’s Office of Economic Opportunity
                                                SUMMARY:   The Department of Veterans                   or to obligate the entire amount of                   within the Veterans Benefits
                                                Affairs (VA) is establishing a grant                    funding available.                                    Administration has a further defined
                                                program (Veterans Employment Pay for                    SUPPLEMENTARY INFORMATION:                            mission to ‘‘Help Veterans attain
sradovich on DSK3GMQ082PROD with NOTICES




                                                Success (VEPFS)) under the authority of                 I. Program Description                                personal and economic success’’
                                                38 U.S.C. 3119 to award grants to                                                                             through a variety of benefits, services,
                                                eligible entities to fund projects that are             A. Background                                         and activities including promoting
                                                successful in accomplishing                               This competition of the VEPFS                       employment opportunities for Veterans.
                                                employment rehabilitation for Veterans                  program is a collaborative effort by the              The targeted veterans for this Pay for
                                                with a Service-connected Disability. VA                 Department of Veterans Affairs (VA) and               Success (PFS) pilot will need to have
                                                                                                                                                                                                          EN15AU16.019</GPH>




                                                will award grants on the basis of an                    the Corporation for National and                      Service-connected Disability of PTSD.


                                           VerDate Sep<11>2014   19:23 Aug 12, 2016   Jkt 238001   PO 00000   Frm 00176   Fmt 4703   Sfmt 4703   E:\FR\FM\15AUN1.SGM   15AUN1


                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                            54217

                                                   While VA and other government                        and PFS Project-structuring practices                    2. PFS financing, sometimes referred
                                                organizations, such as the Department of                increase the likelihood of successful                 to as social impact bonds, is the
                                                Labor, have programs that assist                        implementation of PFS projects as well                provision of mission-driven capital that
                                                Veterans in seeking employment, there                   as other evidence-based approaches and                covers the upfront costs of delivering
                                                is not an employment program that                       related social financing mechanisms.                  the Intervention and potentially other
                                                focuses specifically and solely on                         • Accelerate the development of the                project costs. Given that verifying the
                                                Veterans with PTSD. VA is interested in                 field to make it easier to adopt                      outcomes that trigger Outcomes
                                                enhancing vocational services with the                  outcomes-focused funding models.                      Payments may take several years,
                                                intent of improving overall Employment                     • Attract capital to finance effective             Service Providers often will not have
                                                Outcomes for this target group of                       solutions to challenges facing low-                   the resources to self-finance the costs of
                                                Veterans. This PFS competition will                     income communities nationwide and to                  implementing a preventive Intervention
                                                target the effective delivery of                        high-performing organizations that                    during an agreement period. PFS
                                                employment Interventions to Veterans                    demonstrate the ability to strengthen,                financing covers these costs. Such third-
                                                with a Service-connected Disability of                  grow, and sustain effective solutions for             party investment is typically at-risk and
                                                PTSD. Employment Outcomes will be                       challenges facing low-income                          return of capital (and any potential
                                                related to success in obtaining and                     communities.                                          return on investment) via the Outcomes
                                                sustaining suitable employment. The                        CNCS’s partnership on this program                 Payor is dependent, in whole or in part,
                                                overarching goal of this competition is                 provides expertise on PFS to pair with                on the achievement of outcomes
                                                to generate positive impact for Veterans                VA’s expertise on Veterans’ issues.                   identified in the PFS Agreement.
                                                as they seek to return to competitive                                                                            Projects involving either solely a PFS
                                                employment. Please see Appendix II for                  B. Funding Purpose
                                                                                                                                                              Agreement, or both a PFS Agreement
                                                more information on the background of                      The VEPFS program will fund a                      and PFS Financing, are considered
                                                the focus of this competition.                          demonstration project                                 viable projects to ultimately receive
                                                Background on the Social Innovation                     (‘‘demonstration’’) to support and assess             Outcomes Payments funded by the
                                                Fund as Partner to VA                                   the use of Pay for Success (PFS) to                   VEPFS program. Please see the diagram
                                                                                                        improve Employment Outcomes for                       in Appendix II for the typical, though
                                                   The Social Innovation Fund (SIF) at                  Veterans with a Service-connected
                                                the Corporation for National and                                                                              not mandatory, steps in a PFS project
                                                                                                        Disability of PTSD. The program will                  that includes PFS financing.
                                                Community Service (CNCS) has chosen
                                                                                                        specifically target Veterans with a                      Note that the PFS Agreement must be
                                                to partner with VA on this program. The
                                                                                                        Service-connected Disability of PTSD in               in accordance with standards relating to
                                                mission of CNCS is to improve lives,
                                                                                                        low-income communities or in                          evaluation methodology, metrics for
                                                strengthen communities, and foster
                                                                                                        geographical areas that have the highest              Employment Outcomes, and investor
                                                civic engagement through service and
                                                                                                        demonstrated employment need.                         rate of return to be issued by VA in the
                                                volunteering. Through AmeriCorps,
                                                                                                        Improved Employment Outcomes will                     terms and conditions of the grant
                                                Senior Corps, and the Volunteer
                                                                                                        be based on whether:                                  agreement.
                                                Generation Fund, CNCS has helped to
                                                engage millions of citizens in meeting                     • Employment is consistent with a                     For definitions related to the VEPFS
                                                community and national challenges                       Veteran’s interests, aptitudes, skills, and           program, please see Appendix I.
                                                through service and volunteer action.                   abilities;
                                                                                                                                                                 The VEPFS program will fund
                                                Through the SIF, CNCS has augmented                        • Employment improves (or does not
                                                                                                                                                              Outcomes Payments, which by
                                                its traditional activities with an                      aggravate/worsen) the Veteran’s
                                                                                                                                                              definition in Appendix I are tied to
                                                enhanced focus on identifying and                       disabling conditions;
                                                                                                                                                              impact, for a High-Quality PFS Project
                                                growing innovative, evidence-based                         • Employment requires reasonably                   designed to improve Employment
                                                approaches to our nation’s challenges.                  developed skills;                                     Outcomes among Veterans with a
                                                   The purpose of the SIF is to grow the                   • Employment provides the Veteran                  Service-connected Disability of PTSD.
                                                impact of innovative community-based                    with a Living Wage (preferred) or                     Through this competition, VA will
                                                solutions that have compelling evidence                 improves the Veteran’s earnings                       select an entity to act as an Outcomes
                                                of improving the lives of people in low-                annually; and                                         Payor, administering the Federal funds
                                                income communities throughout the                          • Competitive employment is                        and matching non-Federal funds to pay
                                                United States. The SIF directs resources                sustained.                                            for improved Employment Outcomes.
                                                toward increasing the evidence-base,                       PFS is a strategy of procuring positive
                                                                                                                                                                 The key objectives of this
                                                capacity, and scale of the organizations                outcomes that manifest in positive
                                                                                                                                                              demonstration are as follows:
                                                it funds in order to improve the lives of               impact by paying for an Intervention
                                                                                                        only once it produces those outcomes.                    1. Pilot test the PFS model operated
                                                people served by those organizations.                                                                         by a project coordinator to learn
                                                The SIF also generates broader impact                   PFS projects typically involve two
                                                                                                        elements: a PFS Agreement and PFS                     whether the PFS approach is feasible to
                                                by leveraging the grant program in                                                                            fund a Veterans’ employment initiative.
                                                various ways to improve how                             financing.
                                                philanthropies, Federal government                         1. A PFS Agreement provides for                       2. Assist Veterans with a Service-
                                                departments and agencies, state and                     payment when an Intervention achieves                 connected Disability of PTSD in
                                                local government, and community-                        positive outcomes at pre-set target                   securing employment and/or increasing
                                                based organizations deploy funds to                     levels, as compared to the outcomes                   earnings.
                                                                                                        achieved by a counterfactual group.                      3. Add evidence to the knowledge
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                                                address social challenges. Additionally,
                                                it enhances the ability of the nonprofit                (Pre-set means set in, and by the                     base about effective and integrated
                                                sector to support the growth of                         signatories to, the PFS Agreement before              Interventions to support Veterans’
                                                innovative, high-impact organizations.                  the Intervention is deployed.)                        employment.
                                                   Ultimately, SIF PFS efforts are                      Achievement of outcomes is typically                     4. Conduct research to identify
                                                intended to:                                            verified by an Evaluator using a robust               lessons learned and best practices on
                                                   • Increase knowledge in the social                   methodology agreed upon by all parties                the feasibility of testing effective
                                                sector about which capacity building                    to a transaction to ascertain impact.                 Veterans’ employment Interventions.


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                                                54218                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                C. Approach                                             A–110 for two additional fiscal years,                Corporation for National and
                                                   1. Applicants must present either a                  beginning after December 26, 2014,                    Community Service, and The
                                                Partial Project Partnership or Full                     meaning through Fiscal Year 2017. Such                Consolidated and Further Continuing
                                                Project Partnership for a High-Quality                  election must be specified in the                     Appropriations Act, 2016, Public Law
                                                PFS Project at the time of application.                 nonprofit organization’s documented                   114–92, Division H, Title IV,
                                                   2. The Grant Recipient (referred to as               policies and procedures. In the case that             Corporation for National and
                                                ‘‘Recipient’’ in the remainder of the                   applicants have not yet procured a                    Community Service, provided that up to
                                                document) will serve as an Outcomes                     Project Coordinator and Investor(s) but               20% of funds made available for the
                                                Payor and thus a party to a PFS                         plan to, applicants must present a                    Social Innovation Fund may be
                                                Agreement that is designed to improve                   detailed plan for forming a Full Project              provided to PFS.
                                                Employment Outcomes among Veterans                      Partnership at the time of application                  VA and CNCS entered into an
                                                with a Service-connected Disability of                  that follows grant procurement                        interagency agreement, which
                                                PTSD.                                                   requirements in 2 CFR 200.317–200.326                 designates VA as the agency responsible
                                                   3. The Recipient is responsible for                  for any Federal funds utilized.                       for implementing this PFS project.
                                                securing non-Federal funds in                             The Recipient must submit to VA a
                                                                                                                                                              II. Federal Award Information
                                                accordance with the 1:1 cash match                      proposed high-level project plan that
                                                requirement for the entire grant award.                 outlines key milestones and associated                A. Estimated Available Funds and
                                                   4. Within six months of the grant                    target deadlines for the duration of the              Award Amount
                                                award, the Recipient must submit to VA                  project period, reflecting the following                 Up to $3.0 million in Federal funding
                                                a proposed high-level project plan that                 activities and the duration for each:                 is available for the award. VA intends to
                                                                                                          • Formation of a Full Project                       award one grant of $3.0 million through
                                                outlines key milestones and associated
                                                                                                        Partnership and development and                       this competition.
                                                target deadlines for the duration of the
                                                                                                        execution of the PFS Agreement;
                                                project period.
                                                                                                          • Delivery of the Intervention;                     B. Project Period
                                                   5. The Project Partnership must                        • Employment Outcomes evaluation
                                                produce a High-Quality PFS Project for                                                                           The anticipated start date of grant
                                                                                                        to ascertain impact; and                              funding under this announcement is
                                                improving Employment Outcomes                             • Outcomes Payor review of the
                                                among Veterans with a Service-                                                                                September 30, 2016. The grant award
                                                                                                        evaluation and potential release of                   covers a five-year project period.
                                                connected Disability of PTSD.                           Outcomes Payments. (Note that
                                                   6. The Recipient will capture and                                                                          Applications should represent the full
                                                                                                        Employment Outcomes may be                            five-year period.
                                                share with the public key learnings from                evaluated and Outcomes Payments
                                                the PFS activity that this grant supports.              released at other times for positive                  C. Funding Instrument
                                                The Recipient will work with VA and                     impact during this project period if the
                                                CNCS in order to disseminate                                                                                    The funding mechanism for the
                                                                                                        terms of the PFS Agreement call for                   VEPFS program is a grant.
                                                information related to the Recipient’s                  multiple payment points.)
                                                PFS activity supported by this grant.                     The Grant Program Assessment                        III. Eligibility Information
                                                This requirement involves, but is not                   activities include, but are not limited to:
                                                limited to, the Recipient providing to                                                                        A. Eligible Applicants
                                                                                                          • Providing interviews, data and
                                                VA and making publicly available all                    documentation of inputs, outputs, and                   This competition is limited to public
                                                major documents and tools developed                     Employment Outcomes to support the                    or nonprofit agencies, including
                                                for the High-Quality PFS Project,                       Grant Program Assessment;                             nonprofit institutions of higher learning.
                                                including a PFS Agreement, taking into                    • Requiring participation from the                  Eligible nonprofit organizations are
                                                consideration the confidentiality needs                 Recipient in the Grant Program                        defined in 2 CFR 200.70. Eligible
                                                of Participants as well as local, state,                Assessment; and                                       applicants must propose to serve
                                                and Federal laws.                                         • Conducting additional activities to               Veterans with a Service-Connected
                                                   7. VA will ensure a Grant Program                    augment the overall knowledge sharing                 Disability of PTSD in low-income
                                                Assessment is conducted. The Grant                      agenda.                                               communities or in geographical areas
                                                Program Assessment will ascertain the                                                                         that have the highest need in the issue
                                                level of progress made towards                          E. Program Authority                                  areas. ‘‘Highest need ’’ means greater
                                                achieving the objectives articulated in                    Funding applied for under this Notice              than the national average, and ‘‘issue
                                                Section I.B. of this Notice throughout,                 is provided by VA and CNCS.                           areas’’ means (1) reductions in poverty
                                                and at the conclusion of, the period of                    VA: Funding from VA is authorized                  or increases in economic opportunity
                                                performance.                                            by 38 U.S.C. 3119. Section 3119                       for economically disadvantaged
                                                   8. If the Evaluator certifies that the               authorizes VA to make grants to public                individuals or (2) health, including
                                                impact of the Intervention, as                          or nonprofit agencies for the                         health services and health eductation.
                                                determined through rigorous evaluation,                 development of projects ‘‘designed to
                                                                                                        increase the resources and potential for              B. Cost Sharing or Matching
                                                has met the requirements of the PFS
                                                Agreement, Outcomes Payments will be                    accomplishing the rehabilitation of                     The Recipient must provide non-
                                                disbursed by the Recipient to the                       disabled veterans[,]’’ which include                  Federal cash funds for Outcomes
                                                Service Provider.                                       Veterans with Service-connected                       Payments that match by 100% the
                                                                                                        Disablilities.                                        Federal funds received through this
                                                D. Key Programmatic Requirements                           CNCS: Section 198K of the National                 award. An applicant may meet the
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                                                  Any Project Coordinator and                           and Community Service Act of 1990,                    match requirement with a combination
                                                Investor(s) must be procured in                         Public Law 101–610, as amended, (42                   of its own funds and those of other non-
                                                accordance with the requirements in 2                   U.S.C. 12653k) established CNCS’s                     Federal sources. At the time of
                                                CFR 200.317–200.326. Alternatively,                     Social Innovation Fund. The                           application, applicants must present
                                                nonprofit community organizations may                   Consolidated and Further Continuing                   evidence that they have already secured
                                                continue to comply with the                             Appropriations Act, 2015, Public Law                  10% of their match requirement in non-
                                                Procurement Standards in OMB Circular                   113–235, Division G, Title IV,                        Federal cash by submitting match


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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                           54219

                                                verification documents, as explained in                 information should include, in outline                at least two weeks before the application
                                                Section IV.D. (Other Submission                         format, the following:                                deadline to allow time to resolve any
                                                Requirements) of this Notice.                              Æ Name of Proposal                                 issues that may arise. Applicants must
                                                                                                           Æ Name of Intervention                             use their SAM-registered legal name and
                                                C. Other
                                                                                                           Æ Type of Partnership Presented at                 address on all grant applications to VA.
                                                  Entities that have been convicted of a                Time of Application [Full/Partial Project                VA will not make an award to an
                                                Federal crime may not receive                           Partnership]                                          applicant until the applicant has
                                                assistance described in this Notice.                       Æ Amount of Federal Funds Sought                   complied with all applicable DUNS and
                                                  Pursuant to the Lobbying Disclosure                   (up to $3.0 million)                                  SAM requirements and, if the applicant
                                                Act of 1995, an organization described                     Æ Match                                            has not fully complied with the
                                                in Section 501(c)(4) of the Internal                       D Amount of Funding Secured as                     requirements by the time VA is ready to
                                                Revenue Code of 1986, 26 U.S.C.                              Cash on Hand (at least 10% of the                make an award, VA will determine the
                                                501(c)(4), that engages in lobbying                          Non-Federal Match Requirement)                   applicant is not qualified to receive a
                                                activities is not eligible to apply.                       D Amount of Funding for which                      Federal award and will use this
                                                IV. Application and Submission                               Applicant Has Received                           determination as a basis for making the
                                                Information                                                  Commitments                                      award to another applicant. See the
                                                                                                           D Amount of Funding for which                      SAM Quick Guide for Grantees at
                                                A. Address To Request Application                            Applicant Has Received Letters of                https://www.sam.gov/sam/transcript/
                                                Package                                                      Interest                                         SAM_Quick_Guide_Grants_
                                                   Applicants may download the                             D Amount of Funding for which                      Registrations-v1.6.pdf.
                                                application package from Grants.gov.                         Applicant Has Plan to Secure
                                                                                                                                                              2. Submission Dates and Times
                                                Questions regarding the application                        Æ Project Description
                                                process should be referred to the                          Æ Project Partnership                                 Applications are due September 14,
                                                Program Official: Patrick Littlefield                      Æ Work Plan and Budget                             2016 by 11:59 p.m. Eastern Time.
                                                (Executive Director, VA Center for                         Æ Expertise and Capacity                           Submissions received after this
                                                Innovation), Patrick.Littlefield@va.gov,                   Æ Match                                            application deadline will be considered
                                                (202) 256–7176 (This is not a toll-free                    Æ Match Verification Documentation                 late and will not be reviewed or
                                                number).                                                   See Section V.A. of this Notice for                considered. Submissions via email,
                                                                                                        details on information that should be                 mail, or fax will not be accepted. VA
                                                   Hearing- or speech-impaired
                                                                                                        included in the Project Description,                  reserves the right to extend the
                                                individuals may access this number
                                                                                                        Project Partnership, Work Plan and                    submission deadline and any notice of
                                                through TTY by calling the Federal
                                                                                                        Budget, Expertise and Capacity, Match,                such extended deadline will be posted
                                                Relay Service at 1–800–829–4833 (this
                                                                                                        and Match Verification Documentation                  on the VA Web site.
                                                is a toll-free number).
                                                                                                        components.                                              It is the responsibility of grant
                                                B. Content and Form of Application                         Applications may not exceed 50                     applicants to ensure a full and complete
                                                1. Application Content                                  double-spaced pages as the pages print                application is submitted via Grants.gov.
                                                                                                        out from Grants.gov. The Budget section               Applicants are encouraged to
                                                  The VEPFS Grant Program application                   is not included in the page limit. Please             periodically review the ‘‘Version
                                                package provided at Grants.gov                          note that reviewers will be instructed to             History Tab’’ of the funding opportunity
                                                (Funding Opportunity Number: VA–                        stop reading the Narrative section of the             announcement in Grants.gov to identify
                                                VACI–2016–01) contains electronic                       grant application after page 50.                      if any modifications have been made to
                                                versions of the application forms that                  Reviewers will not consider material                  the funding announcement and/or
                                                are required. Additional attachments to                 past the page limit.                                  opportunity package. Upon initial
                                                satisfy the required application                           Applications must include a Dun and                download of the funding opportunity
                                                information may be provided. The                        Bradstreet Universal Numbering System                 package, applicants will be asked to
                                                application must provide a well-                        (DUNS) number and an Employer                         provide an email address to be notified
                                                designed plan with a clear and                          Identification Number. The DUNS                       of any changes to the opportunity
                                                compelling justification for receiving                  number does not replace an Employer                   package before the closing date.
                                                the requested funds. Reviewers will                     Identification Number. You can obtain a               Providing your email address will allow
                                                assess the application on the basis of the              DUNS number at no cost by calling the                 Grants.gov to send you an email
                                                program goals, partnership, work plan                   DUNS number request line at (866) 705–                message in the event this funding
                                                and budget, expertise and capacity, and                 5711 or by applying online at http://                 opportunity package is changed and/or
                                                match as noted in Section IV. of this                   fedgov.dnb.com/webform. The Web site                  republished on Grants.gov prior to the
                                                Notice. All VEPFS grant applications                    indicates a 48-hour email turnaround                  posted closing date. Any technical
                                                must consist of the following:                          time on requests for DUNS numbers;                    issues during any document download
                                                  Completed applications must have the                  however, VA recommends registering at                 or submission processes should be
                                                following components:                                   least 30 days before the application due              directed to Grants.gov for assistance.
                                                  • Standard Forms (SF) 424, 424A and                   date.                                                    Once the application is submitted in
                                                424B: The SF–424, SF–424A, and SF–                         After obtaining a DUNS number,                     Grants.gov, the applicant will see a
                                                424B require general information about                  applicants must also register with the                confirmation screen explaining that
                                                the applicant and proposed project.                     System for Award Management (SAM)                     your submission is being processed and
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                                                  • Narrative                                           and maintain an active SAM registration               a link will be provided to track the
                                                  Æ Executive Summary: An outline of                    until the application process is                      application. Retain the Grants.gov
                                                key information and a brief description                 complete and, if a grant is awarded,                  application tracking number received in
                                                of the applicant’s proposal. The                        throughout the life of the award. SAM                 the application submission confirmation
                                                Executive Summaries of all compliant                    registration must be renewed annually.                screen. This tracking number is also
                                                applications will be published on the                   VA suggests finalizing a new                          emailed to the applicant upon
                                                VA Web site. The outline of key                         registration or renewing an existing one              submission.


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                                                54220                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                   VA may consider an application after                 Payments will return to CNCS and VA                      Applications must be submitted as a
                                                the deadline, but only if the applicant                 funds for Outcomes Payments will                      complete package, including the
                                                submits an email explaining the                         return to the U.S. Treasury via VA.                   additional documents. Materials
                                                extenuating technical circumstance that                                                                       arriving separately will not be
                                                                                                        E. Other Submission Requirements
                                                caused the delay. VA will determine the                                                                       considered and may result in the
                                                admissibility of late applications on a                 1. Electronic Submission via Grants.gov               application being rejected. Match
                                                case-by-case basis. However, please be                     Applications for the VEPFS program                 verification, as well as all other
                                                advised that VA will not consider an                    must be submitted electronically                      documentation must be received by the
                                                advance request to submit a late                        through Grants.Gov.                                   application deadline. Submission of
                                                application. Applicants must send the                                                                         evidence of match by the application
                                                email to Patrick Littlefield within the 24              2. Submission of Additional Documents                 deadline is a compliance criterion.
                                                hours immediately after the deadline.                      Match Verification Documentation: At                  Do not submit supplementary
                                                Communication with VA staff,                            the time of application, applicants must              material such as videos, brochures,
                                                including a program officer, is not a                   demonstrate through a letter or other                 letters of support, or any items not
                                                substitute for sending a letter to                      form of documentation that they have                  requested in this Notice. VA will not
                                                Patrick.Littlefield@va.gov. VA will                     cash-on-hand that meets 10% of their                  review or return them.
                                                determine whether or not to accept a                    match requirement. Applicants may                     V. Application Review Information
                                                late application on a case-by-case basis.               demonstrate cash-on-hand by a
                                                                                                        statement from the Chief Financial                    A. Selection Criteria
                                                C. Intergovernmental Review
                                                                                                        Officer or other officer that the                       Reviewers will assess the degree to
                                                   The applications will be reviewed                    organization has established a reserve of             which the applicant clearly and
                                                solely by subject matter experts and                    otherwise uncommitted funds for the                   convincingly meets the following
                                                authorized personnel from VA and other                  purposes of fulfilling this match                     criteria and score them according to the
                                                Federal agencies. The program is not                    requirement. A bank statement or report               points assigned to each criteria (out of
                                                subject to Executive Order 12372,                       of assets is not sufficient without the               100 total points possible):
                                                ‘‘Intergovernmental Review of Federal                   accompanying statement that the funds
                                                Programs.’’                                             are uncommitted. Applicants may also                  1. Project Description (up to 30 points)
                                                D. Funding Restrictions                                 demonstrate commitments by a dated                       • Identifies and describes an
                                                                                                        and signed letter from each donor/                    employment Intervention for Veterans
                                                  The Recipient’s request for funding                   foundation, indicating the amount of                  with a Service-connected Disability of
                                                must be consistent with the limitations                 funds committed for the specific use of               PTSD (3 points);
                                                and uses of grant funds set forth in this               supporting this grant. Such a letter must                • Identifies and describes the
                                                Notice. Pursuant to 2 CFR 200.414, for                  contain a firm commitment to provide                  methodology for delivering an
                                                indirect costs, the Recipient may utilize               the applicant the stated funding upon                 employment Intervention to Veterans
                                                a 10% de minimis rate of modified total                 award of a grant by VA.                               with a Service-Connected Disability of
                                                direct costs, utilize a rate already                       To demonstrate cash on hand,                       PTSD through a PFS Agreement that is
                                                negotiated with the Federal                             applicants may demonstrate cash-on-                   supported by Strong Evidence,
                                                Government, negotiate an indirect cost                  hand by a statement from the Chief                    describing the Strong Evidence of the
                                                rate for the first time, or charge costs                Financial Officer or other officer that the           Intervention and describing the
                                                directly following 2 CFR 200.413. The                   organization has established a reserve of             Employment Outcomes to be evaluated.
                                                indirect rate utilized must be applied                  otherwise uncommitted funds for the                   Please include information on the
                                                consistently across all Federal awards.                 purposes of fulfilling this match                     measurable Employment Outcomes the
                                                  The Recipient may draw down funds                     requirement. A bank statement or report               applicant seeks to improve by
                                                for Outcomes Payments only after the                    of assets is not sufficient without the               replicating or expanding a proven
                                                Employment Outcomes have been                           accompanying statement that the funds                 initiative or supporting a new evidence-
                                                achieved and verified according to pre-                 are uncommitted. Applicants may also                  based initiative (5 points);
                                                set requirements.                                       demonstrate commitments by a dated                       • Identifies where geographically the
                                                  In the event that Employment                          and signed letter from each donor/                    Intervention to be delivered through the
                                                Outcomes are achieved at or above pre-                  foundation, indicating the amount of                  PFS Agreement will be deployed and
                                                set target levels per the terms of the PFS              funds committed for the specific use of               explains in detail how that Intervention
                                                Agreement and all funds for Outcomes                    supporting this grant. Such a letter must             will serve Veterans with a Service-
                                                Payments are claimed: The Recipient                     contain a firm commitment to provide                  connected Disability of PTSD in (1) low-
                                                will release Outcomes Payments,                         the applicant the stated funding upon                 income communities or (2) geographical
                                                funded by this grant and by non-Federal                 award of a grant by VA.                               areas that have the highest need for the
                                                sources through the match requirement,                     Documentation must be uploaded as                  issue areas (7 points);
                                                per the terms of the PFS Agreement                      part of the grant application package to                 • Identifies and justifies the number
                                                related to a High-Quality PFS Project for               Grants.gov. Applicants should include                 and population of Veterans expected to
                                                improving Employment Outcomes                           the following information:                            be served by the Intervention to be
                                                among Veterans with a Service-                             • The legal applicant name and                     delivered through the PFS Agreement,
                                                connected Disability of PTSD.                           applicant’s point of contact information;             and why the proposed Intervention is
                                                  In the event Employment Outcomes                         • The application ID number;                       well-suited to the target population and
                                                are not achieved at or above pre-set                       • A list of documents attached to the
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                                                                                                                                                              context (2.5 points);
                                                target levels per the terms of the PFS                  email;                                                   • Defines the method for determining
                                                Agreement and not all funds for                            • Individually saved files that are                an appropriate Veteran control group for
                                                Outcomes Payments are claimed: The                      clearly labeled; and                                  the evaluation of Employment
                                                Recipient shall not draw down VA or                        • Files that include the legal                     Outcomes (2.5 points);
                                                CNCS funds for Outcomes Payments as                     applicant name and application ID                        • Describes any employer
                                                opposed to funds for indirect costs.                    number within the body of the                         engagement, development, and training
                                                Instead, CNCS funds for Outcomes                        document.                                             strategies (2.5 points);


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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                            54221

                                                  • Describes the integration and role of                 Æ Form a Full Project Partnership if it             providing the funds or already received
                                                mental health care professionals in the                 has not been formed yet;                              from others) as cash on hand to meet the
                                                project (2.5 points);                                     Æ Execute a PFS Agreement for a                     match requirement;
                                                  • Describes how the PFS project will                  High-Quality PFS Project that evaluates                  2. Funds for which the applicant has
                                                promote the Employment Outcome of a                     impacts within the period of                          received commitments;
                                                Living Wage as a result of the                          performance and potential release of                     3. Funds for which the applicant has
                                                Intervention as compared to the control                 Outcomes Payments;                                    received letters of interest from funders;
                                                group (2 points);                                         Æ Define reporting structure, data                     4. Funds the applicant has a credible
                                                  • Describes how the PFS project will                  collection methods, Evaluate Outcomes                 plan to secure.
                                                promote the Employment Outcome of                       and performance metrics, and                             Points will be allocated as follows:
                                                an appreciable increase in annual                       evaluation approach.                                     Æ Each applicant will identify the
                                                earnings for Veterans as a result of the                  • Provides a budget narrative that (10              percentage of its match requirement that
                                                Intervention as compared to the control                 points):                                              meets each of the four categories above.
                                                group (1 point);                                          Æ Breaks down total funds by:                          • For example, Applicant ABC
                                                  • Describes how the applicant will                    • Amount of total funding for indirect                identifies that it has secured half its
                                                sustain the replicated or expanded                        costs (in accordance with 2 CFR                     match requirement and received letters
                                                initiative after the conclusion of the                    200.414)                                            of interest from funders in providing the
                                                grant period (2 points).                                • Amount of total funding for Outcomes                remaining half.
                                                                                                          Payments                                               Æ Those percentages will be
                                                2. Project Partnership (up to 25 points)                                                                      multiplied as follows: by 100% for
                                                                                                          Æ Breaks down total funds by:
                                                   • For applicants presenting a Full                   • The amount of the Federal share                     funds that are secured; by 90% for funds
                                                Project Partnership at the time of                      • The amount of the non-Federal share                 that have been committed; by 60% for
                                                application (25 points). Provides the                     (i.e., matching funds)                              funds that funders have expressed
                                                name, qualifications, and project                         Æ Justifies the amount budgeted for                 interest in providing; and by 30% for
                                                responsibilities of each of the following               Outcomes Payments in terms of an                      funds that the applicant has a credible
                                                partner entities committed to the                       appropriate rate of return for Investors              plan to secure.
                                                project:                                                and number of Veterans to be served.                     Æ For Applicant ABC, the reviewer
                                                   Æ Project Coordinator                                                                                      would multiply 50% × 100% for the
                                                   Æ Evaluator                                          4. Expertise and Capacity (up to 17                   secured funds (50% × 100% = 50%) and
                                                   Æ Investor(s) if the PFS Agreement                   points)                                               multiply 50% × 30% for the funds
                                                will involve PFS financing                                 • Provides evidence of past                        supported for which the applicant has a
                                                   Æ Service Provider(s). Please include
                                                                                                        experience among its in-house staff                   credible plan to secure (50% × 30% =
                                                as part of qualifications any experience                                                                      15%).
                                                                                                        (and/or Board of Directors if applicant is
                                                working with Veterans.                                                                                           Æ The resultant percentages will be
                                                                                                        a 501c(3) nonprofit organization)
                                                   • For applicants presenting a Partial                                                                      added to yield the applicant’s ‘‘match
                                                                                                        working on:
                                                Project Partnership at the time of                         Æ Pay for Success or other social                  score multiplier.’’ It will be no more
                                                application (15 points).                                finance strategies (6 points);                        than 100%.
                                                   Æ Provides the name, qualifications,                    Æ Issues specific to Veterans (1 point);              • For Applicant ABC, the ‘‘match
                                                and project responsibilities of any of the                 Æ Workforce supports for individuals               score multiplier’’ would be 65% (50% +
                                                following partner entities committed to                 facing mental health challenges,                      15%).
                                                the project (7 points):                                 including PTSD (1 point);                                Æ The ‘‘match score multiplier’’ will
                                                • Project Coordinator                                      Æ Demonstrated knowledge of sound                  be applied to 8 points. This is the
                                                • Evaluator                                             vocational rehabilitation principles (1               applicant’s point allocation for this
                                                • Investor(s) if the PFS Agreement will                 point);                                               selection criteria.
                                                   involve PFS financing                                   Æ Knowledge of and adherence to                       • For Applicant ABC, the score
                                                • Service Provider(s). Please include as                Service-Connected Disability related                  would be 5.2 points (65% × 8 points).
                                                   part of the qualifications any                       privacy concerns (1 point);
                                                   experience working with Veterans.                                                                          C. Review and Selection Process
                                                                                                           Æ Experience with employment
                                                   Æ Describes a plan that has a high                   focused and/or mental health service                    VA and other Federal Agencies will
                                                likelihood of success to transparently                  providers (1 point);                                  review all grant applications received in
                                                form a Full Project Partnership (5                         Æ Data on the measurable                           response to this Notice according to the
                                                points).                                                Employment Outcomes the applicant                     following steps.
                                                   Æ Provides evidence of experience in                 has improved (1 point).                               1. Compliance Review
                                                developing partnerships for social                         • Identifies and explains sufficient
                                                innovation generally and/or PFS                         capacity (i.e., knowledge, skill, and                   VA staff will review all applications
                                                specifically (3 points).                                time) among existing in-house staff or                to determine compliance with the
                                                                                                        those to be hired, to carry out its                   following Threshold Requirements:
                                                3. Work Plan and Budget (up to 20                                                                               • The application is filed within the
                                                points)                                                 responsibilities if selected as a Recipient
                                                                                                        (3 points).                                           time period established in this Notice;
                                                  • Proposes a high-level work plan                        • Describes how the applicant uses                   • The application is complete;
                                                that provides specific, realistic, and                  data to analyze and improve its                         • The applicant is an eligible entity;
                                                                                                                                                                • The applicant demonstrates it has
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                                                actionable timelines tied to completion                 initiatives (2 points).
                                                of the following tasks within the project                                                                     10% of the match requirement as cash
                                                period and includes staff roles assigned                5. Match (up to 8 points)                             on hand.
                                                to complete the following tasks, noting                    • Identifies and provides evidence for               The compliance review does not
                                                whether such staff members are already                  the percentage of its match requirement               include reading the entire application.
                                                hired (10 points):                                      that meets each of the four categories:               Applications that do not meet all
                                                  Æ Secure any remaining non-Federal                       1. Funds that the applicant has                    compliance criteria will be determined
                                                funds for the match requirement;                        secured (i.e., made available if itself               non-compliant, and therefore will not be


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                                                54222                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                considered. Applications must be                          • Reports and findings from single                  make known the amount of proposed
                                                received through Grants.gov, as                         audits performed under Subpart F—                     funding, and verify the applicant’s
                                                specified in Section IV. of this Notice,                Audit Requirements, 2 CFR Part 200,                   desire to receive the funding. In advance
                                                on or before the application deadline                   OMB Circular A–133, and findings of                   of grant award, successful applicants
                                                published in Section IV. of this Notice.                any other available audits;                           will be required to complete the VA
                                                                                                          • Applicant organization’s annual                   Form 26–0967, which is a ‘‘Certification
                                                2. Application Review                                   report;                                               Regarding Debarment, Suspension,
                                                   Staff reviewers from VA, CNCS, and                     • Publicly available information,                   Ineligibility and Voluntary Exclusion.’’
                                                possibly other Federal Agencies will                    including information from the                        Any communication between the VA
                                                assess and score all compliant                          applicant organization’s Web site;                    VEPFS Grant Program Office and
                                                applications. VA will recruit, screen for                 • Applicant’s ability to effectively                successful applicant prior to the
                                                conflicts of interest, and select                       implement statutory, regulatory, or                   issuance of an award notice is not
                                                reviewers on the basis of their expertise               other requirements imposed on award                   authorization to begin project activities.
                                                in Pay for Success programming and/or                   recipients;                                           Once VA verifies that the grant
                                                the Selection Criteria articulated in                     • Applicant’s past compliance or                    applicant is still seeking funding, VA
                                                Section IV.A. of this Notice, as well as                ability to comply with Federal                        will issue a signed and dated award
                                                their expertise in assessing grant                      procurement requirements in procuring                 notice. The award notice will be sent by
                                                applications. The applications will be                  the Project Coordinator and Investor(s)               U.S. Mail to the organization listed on
                                                ranked in order from highest to lowest                  in accordance with 2 CFR 200.317–
                                                                                                                                                              the SF–424. Unsuccessful applicants
                                                scores.                                                 200.326.
                                                                                                                                                              will be notified by letter, sent by U.S.
                                                3. Risk Assessment Evaluation                           4. Applicant Clarification                            Mail to the organization listed on the
                                                                                                           Following the review process and risk              SF–424. The Notice of Grant Award
                                                   VA staff will evaluate the risks to the
                                                program posed by each applicant,                        assessment evaluation, VA may ask                     signed by the VA VEPFS Grant Program
                                                including conducting due diligence to                   some applicants to provide clarifying                 officer is the authorizing document for
                                                ensure an applicant’s ability to manage                 information. VA staff uses clarifying                 grant activities.
                                                Federal funds. This evaluation is in                    information to inform funding                            An awardee may not expend Federal
                                                addition to the evaluation of the                       recommendations. A request for                        funds until the start of the Project
                                                applicant’s quality of its application,                 clarification does not guarantee a grant              Period identified in the Notice of Grant
                                                and results from this evaluation will                   award. If an organization does not                    Award.
                                                inform funding decisions. If VA                         respond by the deadline to a request for              B. Administrative and National Policy
                                                determines that an award will be made,                  clarification, VA will remove its                     Requirements
                                                special conditions that correspond to                   application from consideration.
                                                the degree of risk assessed may be                      Applicants must be prepared to provide                   The Notice of Grant Award
                                                applied to the award. In evaluating                     documentation of eligibility criteria and             incorporates the approved application
                                                risks, VA may review and consider the                   other support documentation described                 as part of the binding commitments
                                                following:                                              in the narrative, including demonstrated              under the grant, as well as the
                                                   • Financial stability;                               commitment of key experts and team.                   requirements of applicable sections of
                                                   • Quality of management systems and                  VA may conduct a site visit inspection,               38 U.S.C. 3119, as well as the
                                                ability to meet the management                          as appropriate.                                       requirements of applicable sections of
                                                standards prescribed in the Uniform                                                                           the National and Community Service
                                                Guidance (2 CFR Part 200);                              5. Selection for Funding                              Act of 1990, Public Law 101–610, The
                                                   • Applicant’s record in managing                        VA will utilize the ranked scores of               Consolidated and Further Continuing
                                                previous Federal awards, grants, or                     applications as the primary basis for                 Appropriations Act, 2015, Public Law
                                                procurement awards, including:                          selection, ultimately made by the                     113–235, Division G, Title IV,
                                                   Æ Timeliness of compliance with                      delegated official who may factor in the              Corporation for National and
                                                applicable reporting requirements;                      risk assessment and clarification                     Community Service, and other
                                                   Æ Accuracy of data reported;                         information provided by the applicant.                applicable statutes and regulations.
                                                   Æ Validity of performance measure                                                                          Awards will also be subject to the
                                                data reported;                                          6. Applicant Feedback
                                                                                                                                                              General and Specific Terms and
                                                   Æ Conformance to the terms and                          VA will provide reviewer feedback to               Conditions established for grants and
                                                conditions of previous Federal awards;                  compliant applicants following                        any Special Conditions attached to the
                                                and                                                     announcement of the selected Recipient                award.
                                                   Æ If applicable, the extent to which                 and grant award. This feedback will be
                                                any previously awarded amounts will                                                                              Grants under this program are subject
                                                                                                        based on the review of the original                   to the Uniform Administrative
                                                be expended prior to future awards.                     application and will not reflect
                                                   • Information available through                                                                            Requirements, Cost Principles, and
                                                                                                        information that may have been                        Audit Requirements for Federal Awards
                                                OMB-designated repositories of                          provided in response to requests for
                                                government-wide eligibility                                                                                   (Uniform Guidance, now consolidated
                                                                                                        clarification.                                        in 2 CFR parts 200 and VA’s
                                                qualification or financial integrity
                                                information, such as:                                   VI. Federal Award Administration                      implementing regulation at [fill in when
                                                   Æ Federal Awardee Performance and                    Information                                           we hae reg cite] and CNCS’s
                                                                                                                                                              implementing regulation at Part 2205).
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                                                Integrity Information System (FAPIIS);                  A. Federal Award Notices
                                                   Æ Dun and Bradstreet; and                                                                                  This final guidance supersedes and
                                                   Æ ‘‘Do Not Pay.’’                                      Although subject to change, the VA                  streamlines requirements from OMB
                                                   Applicants may review and comment                    VEPFS Grant Program Office expects to                 Circulars A–21, A–87, and A–122 (the
                                                on information available through these                  announce the results of this competition              former Cost Principles), A–110 and A–
                                                OMB-designated repositories and VA                      by September 30, 2016. Prior to                       102 (the former Administrative
                                                will consider any comments made by                      executing any funding agreement, VA                   Requirements), A–133 and A–50 (the
                                                the applicant.                                          will contact successful applicant(s),                 former Audits and Audit Follow up),


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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                                  54223

                                                and A–89 (the former Federal Domestic                   number listed at the top of this                      levels that have been agreed to in advance of
                                                Assistance Program Information).                        solicitation. Please read the complete                the provision of the Intervention.
                                                                                                        announcement before sending inquiries                   • Participant: An eligible Veteran who
                                                C. Reporting                                                                                                  receives services through a PFS project to
                                                                                                        or submitting proposals. Once the                     which potential Outcomes Payments funded
                                                   VA places great emphasis on the                      Notice deadline has passed, the VA staff              by a VEPFS grant have been dedicated.
                                                responsibility and accountability of                    may not discuss this competition with                   • Project Coordinator: An entity that
                                                Recipients. Applicants should be aware                  applicants until the review process has               facilitates, coordinates, and executes a PFS
                                                of the following: Upon execution of a                   been completed.                                       Agreement to improve Employment
                                                grant agreement with VA, the                                                                                  Outcomes for Veterans with a Service-
                                                Recipient(s) may have a liaison                         VIII. Other Information                               connected Disability of PTSD. With respect
                                                appointed by VA who will provide                                                                              to other PFS projects, Project Coordinators
                                                                                                        A. Transparency in Grant Making
                                                oversight and monitor services provided                                                                       are sometimes referred to as intermediaries.
                                                                                                          VA is committed to transparency in                  Responsibilities may include, but are not
                                                to Veterans. The Recipient(s) must                                                                            limited to, building a financial model to
                                                                                                        grantmaking. This Notice includes a
                                                provide to VA certain information,                                                                            guide the terms of the PFS Agreement and
                                                                                                        description of the application review
                                                which will include but will not                                                                               raising capital from Investors for the PFS
                                                                                                        and selection process. In addition, the
                                                necessarily be limited to:                                                                                    Agreement that involve PFS financing. For
                                                                                                        following information for compliant                   the purposes of this Notice, we exclusively
                                                   1. Quarterly Reports. The Recipient
                                                                                                        applications will be published on the                 use the term Project Coordinators to refer
                                                must submit to VA quarterly reports
                                                                                                        VA and CNCS Web site within 90                        specifically to an organization’s role in
                                                based on the Federal fiscal year, which
                                                                                                        business days after all grants are                    facilitating a PFS project.
                                                include the following information (and                                                                          • Recipient: An entity that receives a grant
                                                                                                        awarded:
                                                any associated costs):                                    • A list of all compliant applications              through the VEPFS program. For the purpose
                                                   • Record of time and resources                                                                             of the VEPFS program, the Recipient is also
                                                                                                        submitted;
                                                expended administering the VEPFS                          • Executive summaries of all                        the Outcomes Payor.
                                                program;                                                compliant applications as submitted by                  • Secretary: Refers to the Secretary of
                                                   • The number of Veterans served,                     the applicants;
                                                                                                                                                              Veterans Affairs.
                                                including demographics of this                                                                                  • Service Provider: An entity that delivers
                                                                                                          • Data extracted from the Face Sheet                an Intervention designed to achieve
                                                population;                                             of Standard Form 424 (SF–424);
                                                   • Types of employment assistance                                                                           improved Employment Outcomes for
                                                                                                          • The program narratives for the                    Veterans with a Service-connected Disability
                                                provided;                                               successful application.                               of PTSD.
                                                   • A full accounting of VEPFS                                                                                 • Veteran: Defined as provided in 38 CFR
                                                administrative funds received from VA                   B. Payments of Grant Funds                            3.1.
                                                and used or unused during the quarter;                     Funds will be dispersed by the U.S.
                                                   • Results of routine monitoring and                                                                        Key Concepts
                                                                                                        Department of Health and Human
                                                any project variations;                                                                                          • Employment Outcome: The employment
                                                                                                        Services Payment Management System.
                                                   • A comparison of accomplishments                    A special condition will be placed on
                                                                                                                                                              or earnings of a Participant in the
                                                related to objectives of the award;                                                                           Intervention or control group member after
                                                                                                        funds for Outcomes Payments that will                 the service period. The VEPFS program will
                                                   • An explanation for any goals not                   prevent the funds from being drawn                    measure certain outcomes, including
                                                met;                                                    down until Employment Outcomes are                    competitive employment, skill development,
                                                   • Analysis and explanation for any                   achieved and verified, creating positive              achieving a sustained period of employment,
                                                cost overruns. Reports must be                          impact. If Employment Outcomes have                   wage-earnings, and achieving employment
                                                submitted to VA no later than 30                        been achieved per the terms of the PFS                that aligns with the interests and aptitude of
                                                calendar days after the close of each                   Agreement, creating positive impact,                  the job seeker. Improving Employment
                                                Federal fiscal quarter.                                                                                       Outcomes means creating positive impact in
                                                                                                        funding for Outcomes Payments may                     terms of these outcomes, where the results
                                                   2. Additional Reports. VA may                        then be drawn down through the same
                                                request additional reports if necessary to                                                                    for individuals that receive the Intervention
                                                                                                        system. Payment methods must                          are better than the results for a valid control
                                                allow VA to fully and effectively assess                minimize the time elapsing between the                group that did not receive the Intervention.
                                                project accountability.                                 transfer of funds from the U.S. Treasury                 • Grant Program Assessment: The set of
                                                   3. Other Requirements. The Recipient                                                                       activities and deliverables that assess the
                                                                                                        and the disbursement by the Recipient.
                                                shall conform, if necessary, to the                                                                           effectiveness of the VEPFS program in
                                                requirements of 2 CFR part 200,                         Appendix I: Definitions                               achieving the objectives articulated in
                                                Appendix XII—Award Term and                             Key Parties
                                                                                                                                                              Section I.C. of this Notice. (It is distinct from
                                                Condition for Recipient Integrity and                                                                         the evaluation of the Intervention that
                                                                                                          • Evaluator: An independent entity that             potentially triggers release of Outcomes
                                                Performance Matters.
                                                                                                        determines the impact of the services                 Payments.)
                                                VII. Federal Awarding Agency Contact                    provided, including whether the services                 • High-Quality PFS Project: For the
                                                                                                        have resulted in Employment Outcomes that             purpose of this Notice, a PFS Project that
                                                  For further information contact:                      meet target levels that have been agreed to in        includes the following components:
                                                Patrick Littlefield, Executive Director,                advance of the provision of the Intervention.            Æ A well-defined problem and associated
                                                VA Center for Innovation,                                 • Investor: An person or entity that                target population.
                                                Patrick.Littlefield@va.gov, (202) 256–                  provides upfront capital to cover costs of               Æ A evidence-based preventive service
                                                7176.                                                   providing services/delivering an Intervention         delivery strategy that is managed,
                                                  If mailing correspondence, other than                 and other associated costs before a                   coordinated, and guided by the Service
                                                                                                        determination has been made as to whether             Provider, is flexible and adaptive to the target
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                                                application material, please send to: VA
                                                Center for Innovation, VA Central                       certain Employment Outcomes have been                 problem and population, and has Strong
                                                                                                        achieved at pre-set target levels. Investors’         Evidence.
                                                Office, Attn: Patrick Littlefield (320),
                                                                                                        upfront capital may also be used to pay for              Æ Well-defined, achievable potential
                                                810 Vermont Avenue NW., Washington,                     the evaluation of outcomes and the costs of           outcome target(s) as compared to a control
                                                DC 20420.                                               the Project Coordinator’s work.                       group that are a significant improvement on
                                                  All correspondence with the VA                          • Outcomes Payor: An entity that receives           the current condition of the target population
                                                concerning this Notice should reference                 a VEPFS grant and administers payment for             and have been agreed to by all required
                                                the title and funding opportunity                       outcomes of an intervention that meet target          project partners.



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                                                54224                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                   Æ A rigorous impact evaluation that uses                • Outcomes Payor; and                                 Veterans with PTSD are likely to face
                                                an experimental or quasi-experimental                      • Service Provider(s).                             challenges in the transition process and in
                                                design that is well-executed by an Evaluator.              Æ Partial Project Partnership: A Project           particular with obtaining and maintaining
                                                   Æ A financial model that shows public                Partnership that includes the Outcomes                suitable, stable employment. Symptoms of
                                                sector value, including cost savings or                 Payor and at least one—but not all—of the             PTSD may include lack of interest in
                                                efficiency as well as societal benefit, and             following stakeholders:                               engaging in tasks and activities, anxiety,
                                                tracks effects of the project on relevant                  • Evaluator;                                       depression, cardiovascular disease, feelings
                                                Federal, state, and local funding sources.                 • Investor(s) if PFS Agreement will involve        of detachment from others, sleeplessness,
                                                   Æ A commitment from an entity to act as              PFS Financing; and                                    and trouble with concentration. This vast
                                                an Outcomes Payor (whose Outcomes                          • Service Provider(s).                             array of symptoms combined with other
                                                Payments may be directed to Investors if they              • Service-connected Disability: A                  employment barriers such as limited non-
                                                have covered, in part or in whole, costs                disability that is ‘‘service-connected’’ as           military vocational skills and work
                                                associated with delivering the Intervention             defined in 38 CFR 3.1.                                experience, lack of resources to assist with
                                                and constructing and managing the project).                • Strong Evidence: Evidence from previous
                                                   Æ If needed, a binding commitment of                                                                       preparation for finding a civilian job, and a
                                                                                                        studies, the designs of which support causal
                                                funds from one or more independent                                                                            challenging job market can prevent Veterans
                                                                                                        conclusions (i.e., studies with high internal
                                                Investors to cover relevant operating costs of                                                                with PTSD from successfully achieving their
                                                                                                        validity), which include enough of the range
                                                the Intervention, including administrative                                                                    civilian vocational goals.
                                                                                                        of Participants and settings to support scaling
                                                costs of the intermediary.                              up to the state, regional, or national level             PTSD is listed in the recognized authority
                                                   Æ A PFS Agreement and any associated                 (i.e., studies with high external validity). The      on mental illness diagnoses, the Diagnostic
                                                necessary agreements that incorporate all               following are examples of Strong Evidence:            and Statistical Manual of Mental Disorders,
                                                elements above.                                         (1) More than one well-designed and well-             Fifth Edition (DSM–V). The DSM–V is
                                                   • Intervention: A service or technology              implemented experimental study or well-               utilized by VA in conducting Service-
                                                that is provided to individuals and is                  designed and well-implemented quasi-                  connected Disability evaluations for VA
                                                intended to achieve certain results. Examples           experimental study that supports the                  compensation purposes.
                                                of service interventions or technological               effectiveness of the practice, strategy, or              A study conducted by VA in 2011
                                                interventions to improve Veteran                        program; or (2) one large, well-designed and          confirmed that a negative relationship exists
                                                Employment Outcomes include, but are not                well-implemented randomized controlled,               between mental health conditions, mental
                                                limited to, support services, employment                multisite trial that supports the effectiveness       health issues, and employment.4 The
                                                coaching, mental health treatment, vocational           of the practice, strategy, or program.                unemployment rates for people with mental
                                                training, occupational therapy, community                                                                     illness are high. People with severe mental
                                                engagement, and outreach.                               Appendix II: Background on the Focus                  illness have exceptionally higher rates of
                                                   • Living Wage: A wage on which it is                 of this VEPFS Competition                             unemployment, between 60–100%. People
                                                possible for a wage earner or an individual
                                                                                                           Given the manpower buildup for the wars            with long-term psychiatric disabilities are
                                                and his or her family to live at least
                                                                                                        in Afghanistan and Iraq and the nearing               less likely to be employed than those with
                                                according to minimum customary standards
                                                                                                        completion of the U.S. combat mission in              long-term physical disabilities. A person’s
                                                in the geographic region where the
                                                                                                        those countries, the U.S. military                    self-esteem may also be compromised during
                                                individual resides.
                                                   • Outcomes Payments: Funds that are paid             implemented a troop drawdown that is                  unemployment, leading to anxiety and self-
                                                to an Investor or Service Provider and that             planned to continue over the next few years.          doubt. The study also asserts that feelings of
                                                are released only for the achievement of                This has resulted in a multitude of                   ‘‘helplessness’’ arise when a person believes
                                                outcomes, as compared to those of a control             Servicemembers transitioning out of the               he/she has little influence over important
                                                group, that meet target levels that have been           military and into the civilian workforce.             events in his/her life, such as securing
                                                agreed to in advance of the provision of an             Transitioning back into civilian life and             meaningful work. In VA’s experience the
                                                Intervention (i.e., if positive impact has been         finding employment can be challenging for             overwhelming majority of Veterans using the
                                                created by the Intervention in terms of these           many Veterans. Veterans with Service-                 VA systems want to be employed, or at least
                                                outcomes). When Investors have provided                 connected Disabilities, especially mental             be engaged in meaningful activity. However,
                                                the upfront capital for the project, these              health conditions, may experience an even             their disability may create a barrier to
                                                payments generally cover repayment of the               more difficult transition process and                 employment.
                                                principal investment and provide a modest               encounter significant employment barriers                Mental health providers view vocational
                                                return on investment for any associated risks           compared to other Veterans.                           rehabilitation and employment services as an
                                                of paying for the Intervention upfront.                    PTSD, a mental health condition that can           integral part of a treatment plan for Veterans
                                                   • Pay for Success (PFS) Agreement: A                 develop after exposure to a traumatic event           with PTSD or other mental health challenges.
                                                multi-party agreement to deliver an                     such as warfare, is particularly pervasive            They report that Veterans have better
                                                innovative or evidence-based Intervention               among Veterans. A recent report in JAMA               outcomes while actively pursuing an
                                                intended to improve outcomes for a targeted             provided a detailed assessment of the Army            employment goal.5 6 Many people with
                                                population signed by the entities that                  Study to Assess Risk and Resilience in                mental health conditions view employment
                                                constitute the Project Partnership.                     Servicemembers (Army STARRS) project and              as central to their lives, yet fewer than 15%
                                                   • Project Partnership: A collaboration               found PTSD to be 15 times higher in soldiers          have jobs.7 Thus, participation in a program
                                                among entities that negotiate and execute a             compared to civilians.1 Up to 20% of                  that focuses on vocational needs should lead
                                                project to improve Employment Outcomes                  Veterans from recent tours of duty have               to improved functional and Employment
                                                for Veterans with a Service-connected                   experienced PTSD.2 As of 2015, more than              Outcomes for Veterans with a Service-
                                                Disability of PTSD. For the purpose of the              400,000 Operation Enduring Freedom (OEF),             connected Disability of PTSD.
                                                VEPFS grant program described in this                   Operation Iraqi Freedom (OIF), and
                                                Notice, a Project Partnership is not a distinct         Operation New Dawn (OND) Veterans were                  4 http://www.nchv.org/images/uploads/
                                                legal entity. The entities that may be                  seen for potential PTSD at VA facilities
                                                                                                                                                              Employment_Status_of_Patients_in_the_VA_
                                                involved in a Project Partnership include:              following their return from overseas
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                                                                                                                                                              Health_System-Implications_for_Mental_Health_
                                                Outcomes Payor, Project Coordinator,                    deployments.3                                         Services_WEB.pdf.
                                                Evaluator, Investor, Service Provider.                                                                          5 http://www.nchv.org/images/uploads/
                                                   Æ Full Project Partnership: A Project                  1 http://www.ncbi.nlm.nih.gov/pmc/articles/         Posttraumatic_stress_disorder_and_employment_
                                                Partnership that includes all of the following          PMC4075436/.                                          in_veterans_participating_WEB.pdf.
                                                stakeholders:                                             2 http://www.nytimes.com/2010/07/08/us/               6 http://www.rehab.research.va.gov/jour/07/44/6/
                                                   • Evaluator;                                         08vets.html?_r=0.                                     pdf/resnick.pdf.
                                                   • Investor(s) if PFS Agreement will involve            3 http://www.publichealth.va.gov/docs/                7 http://www.ncbi.nlm.nih.gov/pubmed/

                                                PFS Financing;                                          epidemiology/ptsd-report-fy2015-qtr2.pdf.             15616477.



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Appendix III: Example of a Pay for Success Contract with Pay for Success Financing




         5A Out         Payor makesQutcomesP
         f Evaluator determines outcomeswere &                                                 rmings the causal impact
                                                                                        id :communicates the ou tcomesto
            pro—set   targat levels, repaying         al
         and prov        a modest return for the investors‘
         absorption of risk.




                                                                    Outcomes Payments
                  ‘        l                  .        ‘            to the Investors.
             Red arrows referto the flows of money that
             include federal funds.



             Blue arrows refer to other actions. .
                                                                                                                           Federal Register/Vol. 81, No. 157 /Monday, August 15, 2016 /Notices
                                                                                                                           54225


                                                54226                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                Signing Authority                                       nature of the information collection and              information unless it displays a
                                                  The Secretary of Veterans Affairs, or                 its expected cost and burden; it includes             currently valid OMB control number.
                                                designee, approved this document and                    the actual data collection instrument.                The Federal Register Notice with a 60-
                                                authorized the undersigned to sign and                  DATES: Comments must be submitted on                  day comment period soliciting
                                                submit the document to the Office of the                                                                      comments on this collection of
                                                Federal Register for publication
                                                                                                        or before September 14, 2016.
                                                                                                        ADDRESSES: Submit written comments
                                                                                                                                                              information was published at 81 FR
                                                electronically as an official document of the
                                                Department of Veterans Affairs. Gina S.                 on the collection of information through              15149 on March 21, 2016,
                                                Farrisee, Deputy Chief of Staff, Department of          www.Regulations.gov, or to Office of                    Affected Public: Individuals or
                                                Veterans Affairs, approved this document for            Information and Regulatory Affairs,                   households.
                                                publication.                                            Office of Management and Budget, Attn:                  Estimated Annual Burden: 10 hours.
                                                  Dated: August 5, 2016.                                VA Desk Officer; 725 17th St. NW.,                      Estimated Average Burden per
                                                Jeffrey Martin,                                         Washington, DC 20503 or sent through                  Respondent: 30 minutes.
                                                                                                        electronic mail to oira_submission@                     Frequency of Response: One-time.
                                                Office Program Manager, Office of Regulation
                                                Policy & Management, Office of the Secretary,           omb.eop.gov. Please refer to ‘‘OMB                      Estimated Number of Respondents:
                                                Department of Veterans Affairs.                         Control No. 2900–NEW’’ in any                         20.
                                                [FR Doc. 2016–19304 Filed 8–12–16; 8:45 am]             correspondence.                                         By direction of the Secretary.
                                                BILLING CODE 8320–01–P                                  FOR FURTHER INFORMATION CONTACT:                      Cynthia Harvey-Pryor,
                                                                                                        Cynthia Harvey-Pryor, Enterprise                      Program Analyst, Office of Privacy and
                                                                                                        Records Service (005R1B), Department                  Records Management, Department of
                                                DEPARTMENT OF VETERANS                                  of Veterans Affairs, 810 Vermont                      Veterans Affairs.
                                                AFFAIRS                                                 Avenue NW., Washington, DC 20420,                     [FR Doc. 2016–19300 Filed 8–12–16; 8:45 am]
                                                [OMB Control No. 2900–NEW]                              (202) 461–5870 or email cynthia.harvey-               BILLING CODE 8320–01–P
                                                                                                        pryor@va.gov. Please refer to ‘‘OMB
                                                Agency Information Collection; Status                   Control No. 2900–NEW.’’
                                                of Loan Account—Foreclosure or                                                                                DEPARTMENT OF VETERANS
                                                                                                        SUPPLEMENTARY INFORMATION:
                                                Other Liquidation, VA Form 26–0971;                                                                           AFFAIRS
                                                                                                          Title: Status of Loan Account—
                                                Activity Under OMB Review                               Foreclosure or other Liquidation VA                   Advisory Committee Charter Renewals
                                                AGENCY:  Veterans Benefits                              Form.
                                                Administration, Department of Veterans                    OMB Control Number: 2900–NEW.                       AGENCY:  Department of Veterans Affairs.
                                                Affairs.                                                  Type of Review: Regular.                            ACTION: Notice of Advisory Committee
                                                ACTION: Notice.                                           Abstract: Under 38 CFR 36, the holder               Charter Renewals
                                                                                                        of a delinquent vendee account is
                                                SUMMARY:   In compliance with the                       legally entitled to repurchase of the loan            SUMMARY:   In accordance with the
                                                Paperwork Reduction Act (PRA) of 1995                   by VA when the loan has been                          provisions of the Federal Advisory
                                                (44 U.S.C. 3501–3521), this notice                      continuously in default for 3 months                  Committee ACT (FACA), 5 U.S.C. App.
                                                announces that the Veterans Benefits                    and the amount of the delinquency                     2, and after consultation with the
                                                Administration (VBA), Department of                     equals or exceeds the sum of 2 monthly                General Services Administration, the
                                                Veterans Affairs, will submit the                       installments. When requesting the                     Secretary of Veterans Affairs has
                                                collection of information abstracted                    repurchase of a loan, the holder uses VA              renewed the charters for the following
                                                below to the Office of Management and                   Form 26–0971. An agency may not                       statutorily authorized Federal advisory
                                                Budget (OMB) for review and comment.                    conduct or sponsor, and a person is not               committees for a two-year period,
                                                The PRA submission describes the                        required to respond to a collection of                beginning the on the dates listed below:



                                                          Committee name                                              Committee description                                       Charter renewed on

                                                Advisory Committee on Prosthetics Authorized by 38 U.S.C. § 543. Provides advice on the administration                    May 18, 2016.
                                                  and Special-Disabilities Programs. of VA prosthetics programs and the rehabilitation research, devel-
                                                                                     opment, and evaluation of prosthetics technology; assesses VA
                                                                                     programs that serve Veterans with spinal cord injury, blindness or
                                                                                     vision impairment, loss of or loss of use of extremities, deafness or
                                                                                     hearing impairment, or other serious incapacities.
                                                Advisory Committee on Homeless Authorized by 38 U.S.C. § 2066. Provides advice to the Secretary on                        May 19, 2016.
                                                  Veterans.                          benefits and services provided to homeless Veterans by the De-
                                                                                     partment of Veterans Affairs.
                                                Geriatrics and Gerontology Advi- Authorized by 38 U.S.C. § 7312. Provides advice to the Secretary                         June 30, 2016.
                                                  sory Committee.                    and the Under Secretary for Health on matters pertaining to geri-
                                                                                     atrics by assessing the capability of VA health care facilities to
                                                                                     meet all the needs of older Veterans, and by evaluating VA facili-
                                                                                     ties designated as Geriatric Research, Education, and Clinical Cen-
                                                                                     ters.
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                                                FOR FURTHER INFORMATION CONTACT:                        Management Office (00AC), 810                         view a copy of a VA Federal advisory
                                                Jeffrey Moragne, Committee                              Vermont Avenue NW., Washington, DC                    committee charter, visit http://
                                                Management Office, Department of                        20420; telephone (202) 266–4660; or                   www.va.gov/advisory.
                                                Veterans Affairs, Advisory Committee                    email at Jeffrey.Moragne@va.gov. To



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Document Created: 2016-08-13 02:21:50
Document Modified: 2016-08-13 02:21:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of funding availability.
DatesApplications for a grant under the VEPFS program must be submitted to Grants.gov by 11:59 p.m. Eastern Time September 14, 2016. Successful applicants will be notified by September 30, 2016. The award made through the VEPFS program will cover a period of 60 months.
ContactPatrick Littlefield, Executive Director, VA Center for Innovation. [email protected], (202) 256-7176.
FR Citation81 FR 54216 

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