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Content Last Revised: 9/2/94
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CFR  

Code of Federal Regulations Pertaining to U.S. Department of Labor

Title 20  

Employees' Benefits

 

Chapter V  

Employment and Training Administration, Department of Labor

 

 

Part 627  

General Provisions Governing Programs Under Titles I, II, and III of the Act

 

 

 

Subpart D  

Administrative Standards


20 CFR 627.422 - Selection of service providers.

  • Section Number: 627.422
  • Section Name: Selection of service providers.

    (a) Service providers selected under titles I, II, and III of the 

Act shall be selected in accordance with the provisions of section 107 

of the Act, except that section 107(d) shall not apply to training under 

title III.

    (b) Consistent with the requirements of this section, the Governor 

shall establish standards to be followed by recipients and subrecipients 

in making determinations of demonstrated performance, prior to the award 

of all agreements under titles I, II, and III of the Act. These 

standards shall comply with the requirements of this section, 

Sec. 627.420, of this part, Procurement, and section 164(a)(3) of the 

Act. The standards shall require that determinations of demonstrated 

performance will be in writing, and completed prior to the award of an 

agreement.

    (c) Each recipient and subrecipient, to the extent practicable, 

shall select service providers on a competitive basis, in accordance 

with the standards established in Sec. 627.420(b) of this part, 

Procurement. When a State, SDA, SSG, or administrative entity determines 

that services other than intake and eligibility determination will be 

provided by its own staff, a determination shall be made of the 

demonstrated performance of the entity to provide the services. This 

determination: Shall be in writing; shall take into consideration the 

matters listed in paragraph (d) of this section; and may, if 

appropriate, be documented and described in the Job Training Plan, 

GCSSP, or EDWAA plan.

    (d) Awards are to be made to organizations possessing the 

demonstrated ability to perform successfully under the terms and 

conditions of a proposed subgrant or contract. Where comparable 

proposals have been received from an offeror which has demonstrated 

performance and a high-risk recipient/subrecipient, and a determination 

has been made that both proposals are fundable, the award should be made 

to the offeror which has demonstrated performance, unless other factors 

dictate a contrary result. Determinations of demonstrated performance 

shall be in writing, and take into consideration such matters as whether 

the organization has:

    (1) Adequate financial resources or the ability to obtain them;

    (2) The ability to meet the program design specifications at a 

reasonable cost, as well as the ability to meet performance goals;

    (3) A satisfactory record of past performance (in job training, 

basic skills training, or related activities), including demonstrated 

quality of training; reasonable drop-out rates from past programs; where 

applicable, the ability to provide or arrange for appropriate supportive 

services as specified in the

ISS, including child care; retention in employment; and earning rates of 

participants;

    (4) For title II programs, the ability to provide services that can 

lead to the achievement of competency standards for participants with 

identified deficiencies;

    (5) A satisfactory record of integrity, business ethics, and fiscal 

accountability;

    (6) The necessary organization, experience, accounting and 

operational controls; and

    (7) The technical skills to perform the work.

    (e) In selecting service providers to deliver services in a service 

delivery area/substate area, proper consideration shall be given to 

community-based organizations (section 107(a)). These community-based 

organizations, including women's organizations with knowledge about or 

experience in nontraditional training for women, shall be organizations 

which are recognized in the community in which they are to provide 

services. Where proposals are evenly rated, and one of these proposals 

has been submitted by a CBO, the tie breaker may go to the CBO.

    (f) Appropriate education agencies in the service delivery area/

substate area shall be provided the opportunity to provide educational 

services, unless the administrative entity demonstrates that alternative 

agency(ies) or organization(s) would be more effective or would have 

greater potential to enhance the participants' continued educational and 

career growth (section 107(c)). Where proposals are evenly rated, and 

one of these proposals has been submitted by an educational institution, 

the tie breaker shall go to the educational institution.

    (g) In determining demonstrated performance of institutions/

organizations which provide training, such performance measures as 

retention in training, training completion, job placement, and rates of 

licensure shall be taken into consideration.

    (h) Service providers under agreements to conduct projects under 

section 123(a)(2) shall be selected in accordance with the requirements 

of this section.

    (i) The requirements of section 204(d)(2)(B) shall be followed in 

entering into agreements to provide services for older individuals 

funded under title II, part A.

    (j) Additional requirements for selection of service providers by 

substate grantees are described at section 313(b)(6) of the Act and 

Sec. 631.52 of this chapter.

    (k) Amounts for service providers. Each SDA/SSG shall ensure that, 

for all services provided to participants through contracts, grants, or 

other agreements with a service provider, such contract, grant, or 

agreement shall include appropriate amounts necessary for administration 

and supportive services (section 108(b)(5)).

    (l) When a State, SDA or SSG has a policy of awarding additional 

points to proposals received from such organizations as minority 

business enterprises and women-owned businesses, and this policy is 

generally applicable to its other funds, the State, SDA or SSG may apply 

this policy to the JTPA funds.
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