TEGL_8-20_acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION WIOACORRESPONDENCE SYMBOL ETA-OWI DATE RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. X OPERATING GUIDANCE for the WORKFORCE INNOVATION AND OPPORTUNITY ACT referred to as WIOA TO STATE WORKFORCE AGENCIES STATE AND LOCAL STAKEHOLDERS IN THE WORKFORCE INNOVATION AND OPPORTUNITY ACT STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE LIAISONS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS AMERICAN JOB CENTER DIRECTORS FROM JOHN PALLASCH Assistant Secretary SUBJECT Pay for Performance PFP Guidance for WIOA title I subtitle B 1.Purpose. To provide guidance on PFP for state and local WIOA title I subtitle B programs that implement PFP contract strategies. 2.Action Requested. State agencies state workforce development boards WDBs local WDBs and American Job Center AJC also called one-stop partner programs must follow the requirements in this guidance as they develop policies and procedures related to PFP. 3.Summary and Background. a Summary. This U.S. Department of Labor s DOL s Employment and Training Administration ETA PFP guidance adheres closely to the applicable statutory and regulatory provisions. PFP is a type of performance contract in which WIOA funds are paid only after performance occurs and outcomes are validated. b Background. PFP contracting strategies seek to maximize the likelihood that the federal government pays only for demonstrably effective services and also seeks to secure performance outcomes at a lower cost than might otherwise occur. WIOA introduced PFP contract strategies as an optional activity for certain services allowable under WIOA title I subtitle B Adult Dislocated Worker and Youth programs. 2 PFP evolved from Pay for Success PFS projects which began in the U.S. in 2012. ETA issued two of the first federal competitive grants to pilot test PFS in 2013. The U.S. Government Accountability Office GAO conducted a major study of PFS including an examination of several employment projects which is helpful in understanding some of the complexities involved in various types of performance based-contracting. PFP presents an opportunity to only pay for outcomes achieved rather than for services that may or may not result in positive outcomes. Such an approach can remove unintended incentives for creaming and explicitly direct payments towards employment success for disadvantaged populations. 4. PFP Guidance. See Attachments I and III for all PFP guidance. 5. Inquiries. Please direct questions to the appropriate ETA regional office. 6. References. WIOA Public Law No. 113-128 enacted July 22 2015 available at https www.gpo.gov fdsys pkg PLAW-113publ128 pdf PLAW-113publ128.pdf Sections 3 47 which references 116 b 2 A 116 d 2 K 116 d 6 D 116 h 129 c 2 which references 128 b 134 a 3 A xiv and 134 c 3 G ii VI 134 d 1 A iii which references 133 b and 189 g 2 D 20 CFR 677.215 b 20 CFR 683.500 through 683.540 680.140 b 4 680.320 a 5 681.420 i 682.210 l 2 CFR 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards U.S. Government Accountability Office Pay for Success Collaboration among Federal Agencies Would Be Helpful as Governments Explore New Financing Mechanisms September 2015 GAO-15-646 www.gao.gov products GAO-15-646 ETA Performance TEGLs and TENs Training and Employment Notice 1. TEGL 14-18 Aligning Performance Accountability Reporting Definitions and Policies Across Workforce Employment and Training Programs Administered by the U.S. Department of Labor DOL March 25 2019 https wdr.doleta.gov directives corr doc.cfm DOCN 7611 2. TEGL 05-18 Workforce Innovation and Opportunity Act WIOA Annual Statewide Performance Report Narrative November 7 2018 https wdr.doleta.gov directives corr doc.cfm docn 3118 3. TEGL 03-18 Eligible Training Provider ETP Reporting Guidance under the Workforce Innovation and Opportunity Act WIOA August 31 2018 https wdr.doleta.gov directives corr doc.cfm docn 3527 4. TEGL 10-16 Change 1 Performance Accountability Guidance for Workforce Innovation and Opportunity Act WIOA Title I Title II Title III and Title IV Core Programs August 23 2017 https wdr.doleta.gov directives corr doc.cfm DOCN 3255 5. TEN 8-16 Implementation of an Integrated Performance Reporting System for Multiple Employment and Training Administration ETA and Veterans Employment and Training Service VETS Administered Programs August 24 2016 https wdr.doleta.gov directives corr doc.cfm DOCN 5317 3 7. Attachments. Attachment I. Pay for Performance Guidance Attachment II. Summary of Selected Major Federal State and Local WIOA PFP Roles Attachment III. Extended Disbursement Account