ETA Announces H-1B Technical Skills Training Grant Prodedures

[Federal Register: January 6, 2003 (Volume 68, Number 3)]
[Notices]
[Page 567-578]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ja03-71]

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DEPARTMENT OF LABOR

Employment and Training Administration

[SGA/DFA 03-100]

H-1B Technical Skills Training Grants

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of procedures for grant applications for H-1B technical
skills training grants.

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SUMMARY: The Employment and Training Administration (ETA), U.S.
Department of Labor (DOL), announces the availability of approximately
$200 million in grant funds for skill training programs for unemployed
and employed workers. These grants are financed by a user fee paid by
employers to bring foreign workers into the U.S. under a new H-1B
nonimmigrant visa. As part of the H-1B nonimmigrant visa program, this
technical skills training program was authorized under the American
Competitiveness and Workforce Improvement Act of 1998 (ACWIA), as
amended. The grants are a long-term solution to domestic skill
shortages in high skill and high technology occupations. H-1B technical
skills grants are focused on addressing the high skill technology
shortages of American businesses; they are not intended to address
labor shortages due to reasons other than technical skill shortages.
Grant awards will be made only to the extent that funds are available.
Eligible applicants for these grants will be local Workforce
Investment Boards (Local Boards) established under section 117 of the
Workforce Investment Act (WIA) and representing a local or regional
public-private partnership that is comprised of at least one Local
Board, one business or business-related non-profit organization such as
a trade association, and one community-based organization, higher
education institution or labor union that will carry out such programs
or projects through One-Stop delivery systems established under section
121 of WIA, or regional consortia of Local Boards.
This notice describes the application submission requirements, the
process that eligible entities must use to apply

[[Page 568]]

for funds covered by this solicitation, and how grantees will be
selected.

DATES: The grant policies and procedures described in these guidelines
are effective immediately, and remain in effect until further notice.
Funds are available for obligation by the Secretary of Labor (the
Secretary) under 29 U.S.C. 2916. Applications for grant awards will be
accepted immediately upon publication of this notice in the Federal
Register. It is anticipated that review panels will begin to convene to
evaluate applications 60 days after publication.

ADDRESSES: Applications must be mailed to the U.S. Department of Labor,
Employment and Training Administration, Division of Federal Assistance,
Attention: Ella Freeman, SGA/DFA 03-100, 200 Constitution Avenue, NW.,
Room S-4203, Washington, DC 20210. Telefacsimile (FAX) applications
will not be accepted. Applicants are advised that mail delivery in the
Washington area may be delayed due to mail decontamination procedures.

FOR FURTHER INFORMATION CONTACT: Ella Freeman, Grants Management
Specialist, Division of Federal Assistance, Telephone (202) 693-3301.
(This is not a toll free number.) You must specifically ask for Ella
Freeman.

SUPPLEMENTARY INFORMATION: The Employment and Training Administration
(ETA), U.S. Department of Labor (DOL), announces the availability of
grant funds for technical skills training for employed and unemployed
American workers. These grants are financed by a user fee paid by
employers to bring foreign workers into the U.S. on a temporary basis
to work in high skill or specialty occupations. As part of the H-1B
non-immigrant visa program, this technical skills training program was
established under the American Competitiveness and Workforce
Improvement Act of 1998 (ACWIA 1998) as amended by the American
Competitiveness in the Twentieth Century Act of 2000 (ACWIA 2000) and
companion legislation. The grants are a long-term solution to domestic
skill shortages in high skill and high technology occupations--raising
the technical skill levels of American workers so they can take
advantage of the new technology-related, high skills employment
opportunities. This will, in turn, help businesses reduce their
dependence on skilled foreign professionals permitted to work in the
U.S. on a temporary basis under the H-1B visa program. H-1B technical
skills grants are focused on directly addressing the high skill
technology shortages of American businesses; they are not intended to
address labor shortages due to reasons other than technical skill
shortages. Grant awards will be made only to the extent that funds are
available.
The Act creates a two-part eligibility and funding system for the
program. Seventy-five (75%) percent of the available grant funds will
be awarded to Local Boards established under section 117 of the
Workforce Investment Act (WIA) that will carry out such programs or
projects through the One-Stop delivery systems established under
section 121 of WIA, or regional consortia of Local Boards. Regional
consortia of boards may be interstate. Each Local Board or consortium
of boards receiving grant funds must represent a local or regional
public-private partnership that is comprised of at least (i) One Local
Board; (ii) one business or business-related non-profit organization
such as a trade association; and (iii) one community-based organization
or higher education institution or labor union. This notice governs the
process for awarding the 75 percent funds.
The remaining 25 percent of the available funds will be awarded to
business partnerships that consist of at least two businesses or a
business-related nonprofit organization that represents more than one
business. The partnership may also include any educational, labor,
community organization, or Local Board. Applicants for the 25 percent
funds must explain the barriers they faced in meeting the partnership
eligibility criteria for the 75 percent funds--for example, the
business partnerships may be on a national, multi-state, regional or
rural area basis (such as rural telework programs). The Solicitation
for Grant Applications (SGA) governing the competition for the first
round of grants for the 25 percent funds was published in the Federal
Register in December 2001.
Successful applicants under earlier H-1B training grant
solicitations are eligible to apply for grants under this competition.
Current awardees are encouraged to indicate how their new proposals can
provide a different approach or scope to skills training given program
improvements developed under the current award. Consideration will be
given to grantees which use grant funds to significantly expand their
training program or project through such means as training more workers
or offering more courses, or to applicants whose training programs or
projects expand as a result of increasing collaborations--especially
with more than one small business or with a labor-management training
program or project.
ACWIA 2000 provides resources for skill training in high skill and
high technology occupations that are in demand by U.S. businesses. One
key measure of this demand is determined by the number of employer H-1B
applications for foreign workers. For example, the occupation with the
most current H-1B demand is information technology (IT). Appendix B to
this solicitation provides information on the occupations approved
under H-1B petitions by the Immigration and Naturalization Service
(INS) for Fiscal Year 2001. Applicants should check the INS Web site
(www.ins.gov) or the Department of Labor's Employment and Training
Administration's Web site (www.doleta.gov/h-1b/) for the latest INS
information on occupations approved under H-1B petitions.
This announcement consists of four parts:
[sbull] Part I provides background, basic DOL policies and
emphasis, principles of H-1B technical skills grants, and the
legislative mandate for technical skills training grants under Section
286(s) of INA, Section 111 of ACWIA 2000, and Section 214(i) of INA.
[sbull] Part II describes specific program, administrative and
reporting requirements that will apply to all grant awards.
[sbull] Part III describes the application process.
[sbull] Part IV describes the review process and rating criteria
that will be used to evaluate applications for funding.

Part I--Background, DOL Policies and Emphases

A. Background

In response to demands from industries that were experiencing skill
shortages in areas such as information technology, Congress enacted the
Immigration Act of 1990. This act, implemented in 1992, established the
H-1B visa category for non-immigrants who sought to work in high skill
or specialty occupations, and set annual limits of 65,000 on the number
of H-1B visas granted. In a subsequent effort to help employers access
skilled foreign workers and compete internationally, Congress enacted
the American Competitiveness and Workforce Improvement Act of 1998
(ACWIA 1998) Pub. L. 105-277 in October 1998. The provisions of ACWIA
1998 created technical skills training grants under the Department of
Labor's Employment and Training Administration. ACWIA 1998

[[Page 569]]

was amended by the American Competitiveness in the Twenty-first Century
Act of 2000 (ACWIA 2000) Pub.L. 106-313.
High skill and specialty occupations require theoretical and
practical application of a body of highly specialized knowledge and
sometimes may even require full state licensure to practice in the
occupation. These occupations require at least a bachelor's degree or
higher and/or experience in the specific specialty. They also may
require recognition of expertise in the specialty through progressively
responsible positions relative to the specialty occupation.
ACWIA 1998 increased the annual limit on H-1B visas temporarily to
115,000 in fiscal years 1999 and 2000, and to 107,500 in 2001. In
addition, a $500 user fee was imposed on employers for H-1B
applications. ACWIA 1998 authorized the use of 56.3% of the fee to
finance the H-1B Technical Skills Training Grant Program. Grants funded
under ACWIA 1998 had the long-term goal of raising the technical skill
levels of American workers in order to fill specialty occupations
presently being filled by temporary workers admitted to the United
States under the provisions of the H-1B visa.
ACWIA 1998 described eligible grant applicants as local Workforce
Investment Boards (local Boards) or a consortium of local Boards.
Current grantees are local Boards, as established under section 117 of
the Workforce Investment Act (WIA), that have been funded to carry out
specifically designed high technology skill training programs or
projects for employed and unemployed workers through one-stop delivery
systems or a regional consortia of local boards, as established under
section 121 of the WIA. Regional consortia may be interstate as well as
intrastate.
ACWIA 2000, enacted on October 17, 2000, increased the temporary
cap to 195,000 H-1B visas annually and extended this higher cap for two
additional years, until the end of fiscal year 2003. Separate
legislation raised the employer H-1B application fee from $500 to
$1,000. ACWIA 2000 authorized the use of 55% of the funds generated by
fees to continue the Department of Labor's H-1B Technical Skills
Training Grant Program through September 30, 2003.
ACWIA 2000 created two-part eligibility and funding criteria for
the new program. Local WIBs are eligible to receive 75% of total funds
awarded. These grants provide funds to partnerships consisting of one
or more local WIBs, at least one business or business related non-
profit (such as a trade association) and one community-based
organization (which may be faith-based), higher education institution
or labor union. The remaining 25% of funds are made available through
grants to eligible partnerships that consist of at least two businesses
or a business-related nonprofit organization that represents more than
one business. Partnerships may include any educational, labor,
community organization, or WIB, but funds may be used only to carry out
a strategy that would otherwise not be eligible for funds under the 75%
clause due to barriers in meeting partnership eligibility criteria.
The 75 percent funding stream requires a 50 percent match in cash
or in kind; the 25 percent portion requires a 100 percent match in cash
or in kind. The matching requirement is assessed for the entire Federal
grant funding level. Partners cooperating in the proposed project may
divide the responsibility for the match among themselves in any way
they choose to do so. ACWIA 2000 requires that consideration be given
to applicants that provide a specific commitment from other public or
private sources, or both, to demonstrate the long-term sustainability
of the training program or project after the grant expires.
Eighty percent of the grants are to be awarded to projects that
train workers in high technology, information technology, and
biotechnology skills. For example, this includes skills needed for
software and communications services, telecommunications, systems
installation and integration, computers and communications hardware,
advanced manufacturing, health care technology, biotechnology and
biomedical research and manufacturing, and innovation services. No more
than 20 percent may be awarded to projects that train for skills
related to any single specialty occupation. A specialty occupation is
one that requires at a minimum a college degree or comparable
experience. In accordance with ACWIA 2000, the Secretary of Labor must
make every effort to fairly distribute grant funds among urban and
rural areas and across the different geographic regions of the country.
The technical skills training portion of the law (Section 111) is
designed to help both employed and unemployed American workers acquire
the requisite technical capabilities in high skill occupations that
have shortages. Training generally is aimed at occupations at the H-1B
skill levels, which are defined as a bachelor's degree or comparable
experience. Under ACWIA 2000, training is not limited to skill levels
commensurate with 4-year undergraduate degrees, but can include the
preparation of workers for a broad range of positions along a career
ladder leading to an H-1B skill level job.
To meet the legislative intent of training American workers to
replace foreign workers under the H-1B visa program, technical skills
training grants under this SGA must focus on a high level of training
and on selected occupations. As shown on Table 1, foreign workers
coming to the United States under the H-1B visa program are
exceptionally well-educated, nearly 60 percent possess a Bachelor's
degree, over 30 percent have a Master's degree, and 10 percent have a
Doctorate or Professional degree. With respect to occupations, nearly
60 percent are computer/information technology related occupations,
such as programmers, database administrators and systems analysts. The
second largest occupational area is architecture, engineering and
surveying related occupations. It should be noted that of the
education-related area occupations, most are college and university
level, not elementary or secondary level. Of the medicine and health
related occupations, the largest grouping is physicians and surgeons
rather than nurses or other healthcare workers.
ACWIA 2000 requires certain accountability factors. Specifically,
the Secretary of Labor is to give consideration to applicants who
commit to achieving certain outcome goals for individuals who complete
training. These outcome goals are: (1) Hiring or causing the hiring of
unemployed trainees; (2) increasing the wages or salary of incumbent
workers; or (3) providing skill certifications to trainees or linking
the training to industry accepted occupational skill standards,
certificates, or licensing requirements. These accountability factors
represent a list of possible, desired outcomes or goals rather than
contractual requirements. (For example, an applicant may propose a
specific goal by designing a technical skills training program that is
expected to result in increased wages and the awarding of
certifications that document skills acquisition). In accordance with
ACWIA 2000, applicants must agree that the project will be subject to
evaluation by the Department of Labor and agree to fully cooperate in
evaluation studies.
ACWIA 2000 specified that consideration be given to the use of
grant funds to demonstrate a significant ability to expand a training
program or project through such means as training

[[Page 570]]

more workers or offering more courses or projects resulting from
collaborations, especially with more than one small business or with a
labor management training program or project, or for a partnership that
involves and directly benefits more than one small business.

Table 1.--Key Facts About H-1B Visa Approved Petitions, Fiscal Year 2001
------------------------------------------------------------------------
Percent
of total
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Country of Birth:
India.................................................... 48.9
China.................................................... 8.3
Canada................................................... 3.9
Philippines.............................................. 3.1
United Kingdom........................................... 2.9
All other................................................ 33.8
Age:
Under 20................................................. 00.0
20-24.................................................... 11.6
25-29.................................................... 41.9
30-34.................................................... 25.8
35-39.................................................... 12.0
40 and over.............................................. 8.70
Level of Education:
Less than Associate's degree............................. 1.2
Associate's degree....................................... 0.6
Bachelor's degree........................................ 56.8
Master's degree.......................................... 31.1
Doctorate degree......................................... 7.4
Professional degree...................................... 3.0
Occupational Area:
Computer/information technology.......................... 58.0
Architecture, engineering and surveying.................. 12.2
Administrative specialties............................... 7.2
Education................................................ 5.3
Managers and officials................................... 3.8
Medicine and health...................................... 3.4
Life sciences............................................ 2.0
Social sciences.......................................... 1.9
Mathematics/physical sciences............................ 1.7
All other................................................ 3.2
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Source: Report on Characteristics of Specialty Occupation Workers (H-
1B), Fiscal Year 2001, U.S. Immigration and Naturalization Service,
July 2002.

Forty-three H-1B Technical Skills Training Grants totaling $95.6
million were awarded under the provisions of ACWIA 1998. Under ACWIA
2000, the Department of Labor has awarded, as of October 1, 2002, a
total of 45 grants totaling $116.7 million; of these, 31 grants
totaling $82.3 million were under the 75 percent funding stream and 14
grants totaling $34.5 million were under the 25 percent funding stream.
H-1B grants under earlier SGAs were funded for up to a 24-month period,
with the possibility of an additional option year, based on
performance, continued demand for training, and availability of funds.
Combining awards made under both ACWIA 1998 and ACWIA 2000, the
Department of Labor has awarded a total of 88 H-1B Technical Skills
Training Grants totaling $212 million. Because funds are available as
they are collected from H-1B user fee revenues, the Department
anticipates that additional H-1B Technical Skills Training Grant
applications will be funded throughout fiscal year 2003 (October 1,
2002-September 30, 2003). Additional details on the background of the
H-1B Technical Skills Training Grants demonstration project can be
found at the H-1B Web site http://www.doleta.gov/h-1b. This Web site
contains descriptions of current projects, legislative documents and
research papers.

B. Principles of H-1B Technical Skills Training Grants

Development, implementation and operation of H-1B Technical Skills
Training Grants as envisioned under the authorizing legislation (see
Background above) is based on the following principles:
Business Involvement: Businesses are the workforce investment
system's customers who generate the demand for all jobs, in particular,
the demand for high skill occupations. Businesses are essential
partners in formulating, developing and operating H-1B technical skills
grant projects. Under WIA, business plays a critical, leadership role
in planning and overseeing training and employment activities. WIA
requires that the majority of the membership of state and local
Workforce Investment Boards are business representatives, and that the
state and local board chairs be drawn from business. For the purpose of
these grants, it is desirable that businesses represented in the group
applying for this grant include those with current high technology
skills shortages. Some of these businesses may have in the past
utilized foreign workers under the H-1B visa program. Now, they intend
to hire, retain, or promote graduates of the H-1B technical skills
training program.
Partnership Sustainability: The grant awards under this SGA will
not exceed duration of 36 months with an option for a no cost extension
of up to 12 additional months. No cost extensions extend the period
during which existing grant funds may be spent. ETA intends that
regional partnerships sustain themselves over the long term and well
after the federal resources from this initiative have been exhausted.
In addition, coordination and consultation with the applicable state
workforce agency and/or the Governor's office or State Workforce
Investment Board is vital to long-term sustainability and will
potentially spread high skill training efforts beyond the grantee site.
The statutory 50 percent non-federal matching requirement is an
integral part of ensuring sustainability because the matching resources
are expected to help extend the skill shortages training effort beyond
the term of the grant. This partnership sustainability concept relates
to two rating criteria: Links with Key Partners and Sustainability (the
resources each partner offers and the role of external resources in
building the foundation for a long-term partnership).
High Skill Level Focus and Innovative Service Delivery: Training
selected employed and unemployed workers to fill current local or
regional high skill level shortages is the immediate focus of this
initiative. Training investments should be targeted in occupational
areas that have been identified on the basis of H-1B occupations as
high technology skill shortage areas. H-1B Technical Skills Training
Grants are not intended to address lower level skill labor shortages
nor are they intended to fund training programs aimed at imparting
basic educational skills. In addition, H-1B grants are not intended to
address occupational shortages due to reasons other than high
technology skill shortages.
Innovative or proven tools and approaches, that may include on-the-
job training, distance learning, or combinations of training and
educational techniques, to close particular skill gaps and provide
strategies for training that promote regional development are hallmarks
of successful H-1B technical skills training projects. H-1B grantees
should tailor training to the needs of the selected incumbent and
unemployed workers, both in content and delivery.
Qualified Target Population: Technical skills training is geared
towards employed and unemployed workers who can be trained and placed
directly in highly skilled H-1B occupations or in the highest echelons
of an H-1B career ladder. Candidates for training funded by H-1B
Technical Skills Training Grants should possess (and be identified
through appropriate assessment tools) a high level of general
educational background and, in addition, have the prerequisites for the
occupational training being proposed. Targeted individuals should also
possess certain characteristics such as drive and initiative that will
help guarantee successful completion of the high skill level training
funded by H-1B grants.

[[Page 571]]

Employees at the H-1B skill level are generally characterized as
having a Bachelor's degree or comparable work experience. The H-1B
technical skill training is not limited to skill levels commensurate
with a four-year degree. It may be used to prepare workers for a broad
range of positions along a specified career ladder. ``Career ladder''
may generally be defined as a system of career options which encourage
opportunities for professional growth and upward mobility. Technical
skills training can include a broad range of positions along a career
ladder that directly leads to a high skills level job within a
reasonable period of time. Thus, potential trainees are not required to
enter training with a four-year degree. Additionally, trainees do not
necessarily have to acquire a four-year degree to be successful,
although many will have a four-year degree and many others will possess
two-year degrees. Career ladders create opportunities for individuals
who may vary in experience and education levels (such as specialty
training and Associates' degrees) to advance along a defined career
ladder and qualify through additional training and education for H-1B
level related occupations.
Use of Skill Standards: Skill standards represent a benchmark by
which an individual's achieved competence can be measured. Work in this
area has been performed by private industry and trade associations,
registered apprenticeship training systems, and public and private
partnerships. Well-defined skill standards can be useful tools in
matching training goals to targeted occupational areas. Applicants are
encouraged to survey the progress to date in developing occupational
skill standards in their community and in applicable industries.
As noted earlier (In Part IA--Background), the definition of the
minimum proficiency level required to be considered an H-1B occupation,
contained in section 214 (i), 8 U.S.C. 1184 (i) of the Immigration and
Naturalization Act (INA), speaks to a very high skill level for these
``specialty occupations.'' These are occupations that require
``theoretical and practical application of a body of highly specialized
knowledge,'' and full state licensure, if required for the occupation,
to practice in the occupation. The standard for these occupations is
either completion of at least a Bachelor's degree or experience in the
specialty equivalent to the completion of such a degree and recognition
of expertise in the specialty through progressively responsible
positions relating to the specialty. Specialized and professionally
recognized certificates may also be characteristic of a high level of
technical skills.
Comprehensive Local and Regional Planning: H-1B technical skills
training applicants must describe the local area or region that will be
served with particular emphasis on high technology skills shortages.
Applicants are encouraged to ascertain current labor force and industry
data to reflect the skills shortages in their region. The proposal also
must identify the political jurisdictions to be included and provide an
enumeration of the specific local workforce investment areas that are
served under WIA. Current data on approved H-1B visa petitions should
be utilized to the extent feasible to describe skill shortages in
specific occupations. Appendix B to this solicitation is a listing of
occupations for which H-1B visa petitions have been recently approved.
Requests for H-1B visas for the applicant's region may reflect a skills
shortage for those occupations, as well. Applicants may consider
surveying local and regional employers to ascertain the extent of
employer use of H-1B visas to obtain foreign workers and to obtain
information on the specific occupations and skills imported.
Applicants are encouraged to utilize all available state and local
data, including that provided by area businesses and business
associations, in making determinations of regional shortages.
Applicants are encouraged to analyze data made available by their state
labor market information (LMI) director, the Bureau of Labor Statistics
(BLS), and through the local One-Stop delivery system.

C. DOL Policies and Emphases

Section 111(c)(4)(A) of ACWIA 2000 states that consideration will
be given to applicants who, where applicable, commit to provide three
target outcomes for participants who complete training. These outcomes
are the hiring of unemployed trainees, increased wages or salaries of
employed workers, and skill certificates documenting skills acquisition
or a link to industry accepted occupational skill standards,
certificates, or licensing requirements.
The Employment and Training Administration anticipates that
applicants may need to make a range of supportive services available to
enhance the quality and effectiveness of the skill training provided
under the grant. Grant funds may not be used to provide supportive
services. Appropriately focused services, as defined by section 101(46)
of WIA--such as transportation or childcare--are considered as
important enhancements to the technical skills training package.
Utilizing federal resources through co-enrollment in H-1B technical
skills training and WIA is a strongly recommended course of action.
While WIA resources cannot be counted toward the matching requirement;
co-enrollment allows for much broader and comprehensive service
provision. Successful applicants are encouraged to leverage such
Federal resources to help make the technical skills training more
effective.
In order to provide these resources, applicants should build
linkages to the One-Stop Career Center network to reach out, inform,
and recruit individuals to participate in H-1B technical skills
training. The central role of the Local Boards in the planning and
policy activity surrounding these grants is critical. WIA requires the
Local Board to prepare a strategic workforce investment plan for the
area that it oversees. The Local Board also designates One-Stop center
operators and certifies or approves eligible training providers.
As required by ACWIA, ETA will give consideration in awarding
grants to any proposal which includes and directly benefits two or more
small businesses (100 employees or less).
DOL emphases for this SGA relate to level of training and
occupations selected for training. In accordance with the legislative
provisions to train American workers to an H-1B visa level, DOL seeks
to achieve a higher level of skill training than has occurred to date
in some H-1B grants--to a level that clearly prepares individuals to
meet the H-1B visa definition of ``theoretical and practical
application of a body of specialized knowledge* * *'' In addition,
since a major objective of H-1B technical skills training grants is to
alleviate dependency upon foreign workers in specialty occupations, DOL
believes that increased priority is needed in occupations relating to
the higher levels of computer science and information technology;
architecture, engineering and surveying; biotechnology, biomedical
research and manufacturing, and advanced manufacturing technology.
Lower level healthcare and other non-H-1B occupations and preparatory
or introductory level information technology areas will receive low
selection priority under this SGA. DOL anticipates that the focus on a
high level of training and on H-1B occupations will result in most
participants being enrolled in training programs during the first year
of the grant operation, with

[[Page 572]]

actual training occurring during the remainder of the grant period.

Part II--Requirements

A. Eligible Participants

Training funded by a grantee may be both for persons who are
currently employed and who wish to obtain and upgrade skills and for
persons who are unemployed. The aim of the skills training is to place
employed and unemployed workers in highly skilled H-1B related
occupations. As noted above, eligible participants for H-1B Technical
Skills Training Grants, prior to beginning training funded by H-1B
training grants, should possess (and be identified as having through
appropriate assessment tools) a high level of general educational
background and, in addition, have the prerequisites for the
occupational training being proposed. H-1B targeted individuals should
also possess those characteristics such as drive and initiative that
will help guarantee successful completion of the high skill level
training funded by H-1B grants.

B. Administrative Requirements

1. General
Grantee organizations will be subject to: ACWIA 2000; these
guidelines; the terms and conditions of the grant and any subsequent
modifications; applicable Federal laws (including provisions in
appropriations law); and any applicable requirements listed below--
a. Workforce Investment Boards--20 Code of Federal Regulations
(CFR) Part 667.220, published in the Federal Register on Friday, August
11, 2000 (Administrative Costs).
b. Non-Profit Organizations--Office of Management and Budget (OMB)
Circulars A-122 (Cost Principles) and 29 CFR part 95 (Administrative
Requirements).
c. Educational Institutions--OMB Circulars A-21 (Cost Principles)
and 29 CFR part 95 (Administrative Requirements).
d. State and Local Governments--OMB Circulars A-87 (Cost
Principles) and 29 CFR part 97 (Administrative Requirements).
e. Profit Making Commercial Firms--Federal Acquisition Regulation
(FAR)--48 CFR part 31 (Cost Principles), and 29 CFR part 95
(Administrative Requirements). In addition, the audit requirements at
20 CFR 627.480 applies to commercial recipients.
f. All entities must comply with 29 CFR parts 93 and 98, and, where
applicable, 29 CFR parts 96 and 99.
2. Administrative Costs
ACWIA 2000 Section 111 (c)(6) provides that an entity that receives
a grant to carry out a program or project under section 414(c)(1)(A) of
ACWIA may not use more than 10 percent of the amount of the grant to
pay administrative costs associated with the program or project.
Administrative costs are defined at 20 CFR 667.220.
3. Start-up Costs
ACWIA 2000 Section 111 (c)(3) limits the amount of start-up costs
of partnerships or new training projects, which may be charged to these
grants. Except for partnerships of small businesses, the limit is five
(5) percent of any single grant or costs not to exceed $75,000. For
partnerships consisting primarily of small businesses, the limit is ten
(10) percent of the cost allocable for a single grant or a maximum of
$150,000.

C. Reporting Requirements

The grantee is required to provide the reports and documents listed
below:
Quarterly Financial Reports. A Quarterly Financial Status Report
(SF269) is required until such time as all funds have been expended or
the period of availability has expired. Quarterly reports are due 30
days after the end of each calendar year quarter. Grantees must use
ETA's On-Line Electronic Reporting System.
Progress Reports. The grantee must submit a quarterly progress
report to the GOTR within 30 days following each quarter. Two copies
are to be submitted providing a detailed account of activities
undertaken during that quarter including:
1. Number completing training this quarter
2. Number completing training overall
3. Number enrolled in training
4. Number expected to complete training by end of project
5. Number new job placements as a result of training
6. Number promotions resulting from the training
7. Number wage increases resulting from training and amount of wage
increases resulting from training
8. Number certifications and/or /degrees, by type, awarded as
result of training

Note: DOL may require additional data elements to be collected
and reported on either a regular basis or special request basis.
Grantees must agree to meet DOL reporting requirements.

A narrative section is also required for each quarterly report,
including:
1. General overview of project progress, new developments and
resolution of previous issues and problems.
2. Explanation of any problems and issues encountered and planned
response.
3. Lessons learned in the areas of project administration and
management, training delivery, partnership relationships and other
related areas.
4. Discussion of the occupational areas for which skills training
is being provided, including a listing of the occupations being
trained, training delivery, number of students per occupation and other
relevant information that provides a reasonable picture of the
occupational training being conducted.
Final Report. A draft final report which summarizes project
activities and employment outcomes and related results of the
demonstration must be submitted no later than 60 days prior to the
expiration date of the grant. After responding to DOL questions and
comments on the draft report, three copies of the final report must be
submitted no later than the grant expiration date. Grantees must agree
to use a designated format specified by DOL for preparing the final
report.

D. Evaluation

As required by ACWIA 2000, applications must include an agreement
that the program or project shall be subject to evaluation by the
Secretary of Labor to measure its effectiveness. To measure the impact
of these skill training grants, ETA will arrange for or conduct an
independent evaluation of the outcomes and benefits of the projects.
Grantees must agree to make records on participants, employers and
funding available and to provide access to program operating personnel
and to participants, as specified by the evaluator(s) under the
direction of ETA, including after the period of operation.

E. Matching Funds

Applicants must demonstrate the ability to provide resources
equivalent to at least 50 percent of the grant award amount as a match.
This statutory match may be provided in-cash or in-kind, and federal
resources may not be counted against the matching requirement. At least
one-half of the non-Federal matching funds shall be from the business
or businesses or business-related nonprofit organizations involved. The
amount and nature of the match must be clearly described in the
application.
The 50 percent matching requirement is designed to assist grantees
in initiating sustainability for the proposed project. The Department
is particularly

[[Page 573]]

interested that the applicants demonstrate clear evidence that matching
resources will sustain training activities after the expiration of the
grant. Although matches may be one-time occurrences, applicants are
encouraged to seek partnerships that reflect a commitment, financially
and non-financially, to the future success of the proposed program.

F. Grantee Data System

The grantee must have a system capable of collecting, storing and
retrieving participant and training result information and producing
reports needed for administrative, management, and analytical purposes.
ETA will be routinely validating data as part of its oversight
responsibilities, so grantees must ensure the accuracy and validity of
information reported. The grantee must identify the data elements to be
routinely collected.

G. Other

The application must include identification of a management entity,
the proposed staffing pattern, the resumes of key staff members and
detailed descriptions of the roles of various entities participating in
the partnership. Each application MUST designate an individual who will
serve as project director and who will devote a substantial portion of
his/her time to the project, which may be defined as at least 60
percent. The applicant should also include a description of the
organizational capacity and track record in high skill training and
related activities of the primary actors in the partnership.

Part III--Application Process

A. Eligible Applicants

Section 111(c)(2)(A)(i) of ACWIA 2000 specifies that the Secretary
shall, in consultation with the Secretary of Commerce, subject to the
availability of funds in the H-1B Nonimmigrant Petitioner Account,
award 75 percent of the grants to Local Boards established under
section 116(b) or 117 of the WIA, 29 U.S.C. 2831(b) and 2832, or
consortia of such Boards in a region. A consortium can cross state
lines or involve more than one statewide Local Board.
Each Local Board or consortium of boards receiving grant funds must
represent a local or regional public-private partnership consisting of
at least one Local Board; one business or business-related non-profit
organization such as a trade association and one community-based
organization (which may be a faith-based organization), or higher
education institution, or labor union.
The activities of the local or regional public-private partnership
must be conducted in coordination with the activities of the relevant
Local Board or Boards established under WIA. ACWIA 2000 requires that
each partnership designate a fiscal agent responsible for being the
recipient of grant funds.
Under this announcement, only Local Boards (through their
designated fiscal agents) and consortia of Local Boards may apply for
and receive these grant awards. This requirement does not prevent the
participation of other partners or concerned entities, which are
integral to the process of planning for and conducting skills training
in skills shortage areas. As noted earlier under Supplementary
Information, successful applicants under earlier H-1B solicitations are
eligible to apply for grants under this competition. Current awardees
must indicate how their new proposals can provide a different approach
or scope to skills training given program improvements developed under
the current award.
Applicants are encouraged to collaborate with entities that possess
a sound grasp of the job market in the region and are in a position to
address the issue of skill shortage occupations. These entities include
organizations such as private, for-profit businesses--including small
and medium-size businesses; business, trade, or industry associations
such as local Chambers of Commerce and small business federations; and
labor unions. These partners should include businesses and business
associations, which have experienced first hand the problems of coping
with skill shortages and which employ workers engaged in skill shortage
occupations.
This notice will not prescriptively define the roles of individual
entities within the partnership beyond requiring that the Local Boards
or consortia be the applicant and designate a fiscal agent for
receiving grant funds, as stated in ACWIA 2000. The applicant's
proposal is expected to provide a detailed discussion of participating
organizations' respective responsibilities.
Based on ETA's experience, regional partnerships that actively
engage a wide range of participation from community groups--
particularly with strong private employer involvement--appear to be
more successful. Consortia of Local Boards representing more than one
area that share common economic goals may join together as one
applicant rather than applying individually.
The application must clearly identify the applicant (or the fiscal
agent), the grant recipient (and/or fiscal agent), and describe its
capacity to administer this project. It must also indicate that the
project is consistent with and will be coordinated with the activities
of the relevant Local Board or Boards and with the other partners in
the workforce investment system(s) that are involved in technical
skills activities in the relevant region(s).
According to Section 18 of the Lobbying Disclosure Act of 1995, an
organization described in Section 501 (c) (4) of the Internal Revenue
Code of 1986 that engages in lobbying activities will not be eligible
for the receipt of federal funds constituting an award, grant, or loan.

Note: Except as specifically provided in this Notice, DOL/ETA's
acceptance of a proposal and an award of federal funds to sponsor
any program(s) does not provide a waiver of any grant requirements
and/or procedures. For example, the OMB Circulars require and an
entity's procurement procedures must require that all procurement
transactions are conducted, as much as practical, to provide open
and free competition. If a proposal identifies a specific entity to
provide services, the DOL/ETA's award does not provide the
justification or basis to sole-source the procurement, i.e., it does
not authorize the applicant to avoid competition when procuring
these services.

Part IV of this announcement identifies the criteria that will be
used to rate applicant submissions. These criteria and point value are:

------------------------------------------------------------------------
Criterion Points
------------------------------------------------------------------------
A. Statement of Need........................................... 10
B. Level of Training and Service Delivery Strategy............. 25
C. Target Population........................................... 10
D. Sustainability.............................................. 15
E. Linkages with Key Partners.................................. 15
F. Outcomes, Management and Cost Effectiveness................. 25
--------
Total Possible Points...................................... 100
------------------------------------------------------------------------

B. Submission of Proposals

Applicants must submit four (4) copies of their proposal, with
original signatures. The proposal must consist of two (2) separate and
distinct parts, Parts I and II.
Part I of the proposal must contain the Standard Form (SF) 424,
``Application for Federal Assistance'' (Appendix C) and the Budget
Information Form (Appendix D). Upon confirmation of an award, the
individual signing the SF 424 on behalf of the applicant shall
represent the responsible financial and administrative entity.

[[Page 574]]

In preparing the Budget Information form, the applicant must
provide a concise narrative explanation to support the request. The
statutory language of ACWIA 2000 is specific in stating that grant
resources are to be expended for programs or projects to provide
technical skills training. An illustrative, but not exclusive, list of
allowable and allocable types of administrative costs is provided in
the WIA regulations at 20 CFR 667.200. In general, however, this grant
does not contemplate or permit the purchase of capital equipment. The
budget narrative should discuss precisely how the administrative costs
support the project goals.
Part II must contain a technical proposal that demonstrates the
applicant's capabilities in accordance with the Statement of Work. A
grant application is limited to twenty-five (25) double-spaced, single-
sided, 8.5 inch x 11 inch pages with one-inch margins. The applicant
may provide resumes, a staffing pattern, statistical information and
related material in attachments, which may not exceed fifteen (15)
pages. Although not required, letters of commitment from partners or
from those providing matching resources may be submitted as
attachments. Such letters will not count against the allowable maximum
page total. The applicant must briefly itemize those participating
entities in the text of the proposal. Text type shall be 12 point or
larger. Applications that do not meet these requirements will not be
considered. Each application must include a Time Line outlining project
activities and an Executive Summary that is not to exceed two pages.
The Time Line and the Executive Summary do not count against the 25-
page limit. No cost data or reference to prices should be included in
the technical proposal.

C. Hand Delivered Proposals

Hand delivered proposals will be received at the address identified
above. Telegraphed and/or faxed proposals will not be accepted. Failure
to adhere to the administrative instructions pertaining to Submission
of Proposals (contained in Section B) and Delivery of Proposals
(contained in Section C) will be considered as non-responsive.

D. Period of Performance

The initial period of performance will be up to 36 months from the
date of execution of the grant documents. It is anticipated that
individual awards will not exceed $3,000,000. ETA may elect to exercise
its option for a no-cost extension for these grants for an additional
period not to exceed 12 months, based on the success of the program and
other relevant factors.

Part IV--Review Process & Rating Criteria

A. The Review Process

Applications for the H-1B technical skills training grants will be
accepted continuously after the publication of this announcement until
further notice. Technical review panels will meet periodically on an
as-needed basis, given the number of applications and the availability
of funds.
The technical review panel will make careful evaluation of
applications against the criteria below. Final funding decisions will
be based on the rating of applications as a result of the review
process, and other factors such as statutory requirements (urban/rural
balance, geographic balance, the requirement that at least 80 percent
of funds be awarded for high technology, information technology, and
biotechnology occupational training and that not more than 20 percent
of funds be available for training in any single specialty occupation),
availability of funds, and what is most advantageous to the Government.
The panel results are advisory in nature and not binding on the Grant
Officer. The Government may elect to award the grant(s) with or without
discussions with the offeror(s). In situations without discussions, an
award will be based on the offeror(s) signature on the SF 424, which
constitutes a binding offer.
The rated applications will be placed in the following categories:
(1) If the application receives a rating of 80 and above, it will
be placed on an eligible to be funded list. The applicant will remain
on this list for 9 months before resubmittal is required. Applicants in
this category may require further discussions. Inclusion on this list
is not a guarantee of funding.
(2) If the application receives a rating of 79 or below, the
applicant will be eligible to receive technical assistance through
group workshops in areas such as:
[sbull] Grant Writing
[sbull] Partnership Building/Linkages
[sbull] Administrative Requirements
[sbull] Service Delivery Strategies
(3) Those applications receiving a rating of 70-79 will also be
eligible to receive additional individualized technical assistance.
All applicants will receive written notice of their rating which
will include a summary of their strengths and weaknesses in the
application at the conclusion of the review process.

B. Rating Criteria

Applications will be rated on how completely they respond to the
criteria set forth below, and how responsive they are to the policy
goals and emphases set forth in Part II of this document.
1. Statement of Need (10 points)
ACWIA 2000 is a response to high technology skill shortages around
the country in specific occupations. The most recent H-1B occupation
data are provided as an attachment to this solicitation. Applicants
should clearly describe the local area or region for which services are
to be provided and the high technology skill shortages prevalent in the
geographic area and region.
Applicants are encouraged to utilize all available data resources
to ensure that their descriptions of need are relevant to local and
regional labor market shortages. Information can include, but is not
limited to: statistical information from Federal government sources,
state labor market information, H-1B applications, newspaper want ads,
expressed employer hiring demands, and information from the One-Stop
system, in responding to this criterion. Descriptive items about the
local area or region, such as rural or urban, should be included. (What
high technology needs and opportunities exist in the region? What are
the particular characteristics of the local political, economic and
administrative jurisdictions--Local Boards, labor market areas, or
special district authorities--that led them to associate for the
purpose of this application?)
A general description of the local area or region should include
socioeconomic data, with a particular focus on the general education
and skill levels prevalent in the area. Applicants are encouraged to
include information such as transportation patterns, and statistical
and demographic information (e.g., age and income data). Other germane
questions that will provide greater depth of description include: What
is the general business environment? What industries and occupations
are growing and declining? What types of skills are being sought in the
geographic area or region by the major employers in general, and the
partnership member companies, in particular? Data from local and
regional employers relating to the use of H-1B visas to import foreign
workers to meet their high technology skill needs will be of special
help in demonstrating high technology training needs.

[[Page 575]]

2. Level of Training and Service Delivery Strategy (25 points)
Applicants must lay out the comprehensive strategy proposed for
providing the technical skills training that is mandated as the core
activity of these grant awards. Applicants shall describe a service
delivery strategy that provides training at or leading to an H-1B level
skill. Part 1C of this SGA spells out very clearly DOL's strong
interest in achieving a higher level of training than has occurred in
some H-1B grants, to a level that clearly prepares individuals to meet
the H-1B visa definition of ``theoretical and practical application of
a body of specialized knowledge.'' A discussion of the impact of skills
training in response to the identified skill shortages of the region
should be included. Since the H-1B skill level is at the Bachelor
degree level or above, training may include formal education. Specific
issues that must be addressed as part of this section include:
[sbull] The range and identity of potential training providers,
including identifying whether they are on the eligible training
provider list as described in WIA, section 122, the types of skills
training that will be offered, how the training will meet the local
area or regional skills needs, and how the training will be provided.
[sbull] The targeted occupations and skill level and how the skill
upgrading will be measured. If degrees and/or certificates are
contemplated, the type and recognition authority should be described as
well as an estimate of the number and type to be attained.
[sbull] What steps will be taken to reach out to the community(ies)
to provide information about the project and planned training
activities.
[sbull] How will the types of training planned for project
participants be determined.
Training at a sufficiently high skill level will be an important
factor in this criterion. If career ladder training is proposed, the
applicant must provide adequate detail demonstrating that all rungs of
the ladder lead to H-1B training at the top rung and that it is
reasonably likely that the majority of individuals on the ladder will
complete the highest rungs of H-1B level training under the H-1B
Technical Skills Training Grant.
Innovation in the context of service delivery is also considered
essential and is a basic principle of H-1B Technical Skills Training
Grants and can represent a wide variety of approaches and techniques.
Innovation may be implemented in the manner in which training services
are provided, e.g., distance learning to provide instruction,
interactive video self-instructional materials, and flexible class
scheduling (sections of the same class scheduled at different times of
the day to accommodate workers whose schedules fluctuate). Creativity
in developing the service strategy is also encouraged. The service
delivery strategy must meet the needs of business partners, providing
skills identified in the statement of need. Evidence should be provided
that business partners have been involved in developing the training
service delivery plan. The service delivery strategy should also
effectively reach out to and meet needs of the target population, i.e.,
desired candidates are recruited and training conducted in such a
manner that participants can attend without undo hardship (training
during workday, on weekends and/or through distance learning methods).
Applicants should fully describe any innovative and creative approaches
contemplated.
3. Target Population (10 points)
The eligibility criteria for skills training enumerated in ACWIA
2000 are extremely broad and include employed and unemployed workers.
This section should clearly identify the targeted workers, including
their characteristics and explain why they are targeted. A discussion
of what assessment procedures are to be used to ensure that the
targeted individuals are qualified for the training and have a high
likelihood of successful completion of the training is critical. The
applicant should address some specific issues relating to the target
worker population such as:
[sbull] How many employed workers and unemployed workers will be
targeted for services and why?
[sbull] What are the technical skills training needs of those
workers to fulfill skill shortage occupations at the H-1B level? Note
that employers' needs should be addressed in Statement of Need.
[sbull] It is extremely important that the selection process for
workers, both employed and unemployed, be carefully described to make
it clear how those individuals will be determined to possess the
capacity after the completion of training to accept jobs that
previously were filled via the H-1B visa process, or could be filled at
the H-1B level. In the case of both incumbent workers and unemployed
workers, there needs to be an extensive discussion of the criteria to
be used to assess and enroll individuals. Applicants shall describe how
members of the target population will be selected and the technical
skills training needs of the target population in such a way as to
verify that H-1B level training is actually required, especially in the
case of incumbent workers. Applicants shall describe the assessment
tools used to ensure that proposed trainees are able to complete H-1B
level training, in terms of ability and educational preparation. Note
that trainees must possess a fairly advanced skills set prior to the
start of H-1B training, i.e., they should be capable of pursuing
training at the college level.
[sbull] What is the business partners' involvement in the selection
of candidates?
[sbull] What is the targeted education and skill level of trainees
as they enter the program?
4. Sustainability (15 points)
Sustainability refers to the continuation of the partnership based
on the strength of that partnership and the ability of the training
program to deliver value to employers. Applicants must demonstrate that
they will meet the statutory requirement to provide a 50 percent match
to the resources for proposed projects. Matches may either be in-cash
or in-kind and federal resources cannot be counted towards the matching
requirement. Applicants must describe to what extent the partners
provide matching funds or services and how this contribution assists in
building the foundation for a long-term partnership, i.e.,
sustainability. Matching resources and partnerships are considered an
integral element of the project, as they support and strengthen the
quality of the technical skills training provided and contribute
materially toward sustainability. This section MUST contain a detailed
discussion of the size, nature, and quality of the non-federal match
and how the match will be used to further the goals of the project.
Proposals not presenting a detailed discussion of the non-federal match
or not meeting the statutory 50 percent match requirement will be
considered non-responsive and will not be considered.
Technical Skills Training Grant resources are limited to raising
the skill levels of individuals to fill high skills H-1B occupations.
Applicants will be given preference for identifying other resources
both federal and non-Federal, because they can contribute materially
toward quality outcomes and sustainability. (Note that although federal
resources may not be counted as match, they may be counted to
demonstrate the project sustainability.) Applicants are also encouraged
to establish relationships with State Workforce Investment Boards and

[[Page 576]]

relevant state agencies, as they may provide valuable assistance and
resources that can contribute to the success of a proposed project.
Applicants should enumerate these resources in this section to support
their discussion of sustainability and also describe any specific
existing contractual commitments. The sustainability issue can be
addressed by providing concrete evidence that training activities of
the partnership will be continued after the expiration date of the
grant by using other public or private resources.
5. Linkages With Key Partners (15 points)
The application must show the partnership required by Section
111(c)(2)(A)(i) of ACWIA 2000 (a Local Board or consortium of Local
Boards; one community-based organization, higher education institution,
or labor union; and one business or business-related nonprofit
organization such as a trade association). ETA encourages, and will be
looking for, applications that go beyond the minimum requirements of
the statute and show broader, expected long-term partnerships. The
applicant should identify the partners and how they will interact
together, i.e., what role each will play and what resources each
partner will offer. In particular, this section should identify
partnerships with the private and public sectors, including ties with
small- and medium-sized businesses and small business federations. In
addition, the proposal should include a description of any coordination
and consultation activities with the applicable state workforce agency
and/or Governor's office or state Workforce Investment Board. Evidence
of such coordination and/or consultation such as written documentation
should be included in the application. The Service Delivery Strategy
section of the Statement of Work describes the role of each of the
actors in delivering the proposed services, while this section is
intended to look at the linkages from a more structural perspective
with particular emphasis on the employers in the consortium that are
experiencing skills shortages and have hiring or upgrading needs.
ETA also is interested in the extent of the involvement of small
businesses in the partnership. Consideration will be given to any
partnership that involves and directly benefits more than one small
business (each consisting of 100 employees or less).
6. Outcomes, Management and Cost Effectiveness (25 points)
This criterion includes three areas: (a) Program and training
outcomes, (b) project and grant management, and (c) cost effectiveness.
Applicants must describe the predicted outcomes resulting from this
training. It is estimated that the projected results will be somewhat
varied given the mix of people who will be served. Success can be
determined through placements in H-1B skills shortage occupations,
increased wages, or skills attainment in H-1B occupations, or in
training for or placement in positions on a defined career ladder
directly leading toward such skills attainment.
For unemployed workers, outcomes will be viewed in terms of gaining
new employment and enhanced skills attainment in, or on the ladder to
H-1B skill shortage occupations.
Outcomes for employed workers may be at a somewhat higher level
than for those unemployed workers who do not possess similar skills at
the outset. Because of the differing skill levels and backgrounds of
participants in an H-1B training program, the outcomes section should
discuss gains attained for individual participants in context of their
backgrounds and skill levels when they entered. Therefore, the focus of
the discussion in this section should emphasize very specifically the
benefits that occur because of the training. For example, an applicant
might state that a certain skill level is projected for a given group
and indicate what change in skills that represents and how that might
translate into an increase in earnings.
As noted in Level of Training and Service Delivery Strategy above,
the application must identify what occupations will be trained for
under this grant. Please identify each occupation in terms of skills in
high technology, information technology and biotechnology, including
skills needed for software and communication services,
telecommunications, systems installation and integration, computers and
communications hardware, advanced manufacturing, health care
technology, bio-technology and biomedical research and manufacturing
and innovation services.
Applicants should indicate how they plan to achieve one or more of
the following outcome goals upon successful completion of a training
program:
(1) The hiring of unemployed trainees (if applicable);
(2) Increases in the wages or salaries of already employed trainees
(if applicable); and
(3) Awards of educational degrees, credit toward degrees, skill
certifications to trainees or links the trainees to industry-accepted
occupational skill standards, certificates or licensing requirements.
Management includes qualifications and experience of proposed staff
and related areas. Applicants should include a description of the
organizational structure and processes and automated system to be used
for managing the project, collecting project data, monitoring and
tracking progress, responding to issues and problems, and producing
relevant reports for both the grantee and DOL.
Applicants will provide a detailed discussion of the expected cost
effectiveness of their proposal in terms of the expected cost per
participant compared to the expected benefits for these participants.
Applicants should address the employment outcomes, placement, increased
salary, promotion or retention and the levels of skills to be achieved
(such as attaining state licensing in an occupation) relative to the
amount of training that the individual needed to receive to achieve
those outcomes. Benefits can be described both qualitatively in terms
of skills attained, including degrees and certificates attained, and
quantitatively in terms of wage gains. Costs must be justified in
relation to cost per participant and, when possible, contrast with
similar costs for training conducted elsewhere. Cost effectiveness may
be demonstrated in part by cost per participant and cost per activity
in relation to the level and duration of services provided and outcomes
to be attained; the applicant's expectations regarding these measures
should be included.

Signed in Washington, DC, this 31st day of December 2002.
Laura Cesario,
Grant Officer.
Appendix A: Legislative Mandate
Appendix B--H-1B Petitions Approved in Fiscal Year 2001 for Top 10
Major Occupational Groups and Top 23 Detailed Occupations, Source: INS,
July 2002
Appendix C: (SF) 424--Application Form
Appendix D: Budget Information Form
Appendix E: Project Profile Information (completed by applicant)

Appendix A--Legislative Mandate

(1) ACWIA and ACWIA 2000

The relevant portions of ACWIA 2000 dealing with the
establishment of a fund for implementing a program of H-1B skills
training grants are as follows:

[[Page 577]]

``Section 286(s)--H-1B Nonimmigrant Petitioner Account (As Amended)

(1) In General--There is established in the general fund of the
Treasury a separate account, which shall be known as the `H-1B
Nonimmigrant Petitioner Account.' Notwithstanding any other section
of this title, there shall be deposited as offsetting receipts into
the account all fees collected under 8 U.S.C. 1184 (c)(9)(section
214(c)(9)).
(2) Use of Fees for Job Training--55 percent of amounts
deposited into the H-1B Nonimmigrant Petitioner Account shall remain
available to the Secretary of Labor until expended for demonstration
programs and projects described in section 414(c) of the American
Competitiveness and Workforce Improvement Act of 1998.''
``SEC. 111. Demonstration Programs and Projects To Provide
Technical Skills Training for Workers.
Section 414(c) of the American Competitiveness and Workforce
Improvement Act of 1998 (as contained in title IV of division C of
Public Law 105-277; 112 Stat. 2681-653) is amended to read as
follows:
(c) Demonstration Programs and Projects To Provide Technical
Skills Training for Workers.--
(1) In General.--
(A) Funding.--The Secretary of Labor shall use funds available
under section 286(s)(2) of the Immigration and Nationality Act (8
U.S.C. 1356(s)(2)) to establish demonstration programs or projects
to provide technical skills training for workers, including both
employed and unemployed workers.
(B) Training Provided.--Training funded by a program or project
described in subparagraph (A) shall be for persons who are currently
employed and who wish to obtain and upgrade skills as well as for
persons who are unemployed. Such training is not limited to skills
levels commensurate with a four-year undergraduate degree, but
should include the preparation of workers for a broad range of
positions along a career ladder. Consideration shall be given to the
use of grant funds to demonstrate a significant ability to expand a
training program or project through such means as training more
workers or offering more courses, and training programs or projects
resulting from collaborations, especially with more than one small
business or with a labor-management training program or project. The
need for the training shall be justified through reliable regional,
state, or local data.
(2) Grants.--
(A) Eligibility.-- To carry out the programs and projects
described in paragraph (1)(A), the Secretary of Labor shall, in
consultation with the Secretary of Commerce, subject to the
availability of funds in the H-1B Nonimmigrant Petitioner Account,
award--
(i) 75 percent of the grants to a local workforce investment
board established under section 116(b) or section 117 of the
Workforce Investment Act of 1998 (29 U.S.C. 2832) or consortia of
such boards in a region. Each workforce investment board or
consortia of boards receiving grant funds shall represent a local or
regional public-private partnership consisting of at least--
(I) one workforce investment board;
(II) one community-based organization or higher education
institution or labor union; and
(III) one business or business-related non-profit organization
such as a trade association: Provided, That the activities of such
local or regional public-private partnership described in this
subsection shall be conducted in coordination with the activities of
the relevant local workforce investment board or boards established
under the Workforce Investment Act of 1998 (29 U.S.C. 2832); and
(ii) 25 percent of the grants under the Secretary of Labor's
authority to award grants for demonstration projects or programs
under section 171 of the Workforce Investment Act (29 U.S.C. 2916)
to partnerships that shall consist of at least 2 businesses or a
business-related nonprofit organization that represents more than
one business, and that may include any educational, labor, community
organization, or workforce investment board, except that such grant
funds may be used only to carry out a strategy that would otherwise
not be eligible for funds provided under clause (i), due to barriers
in meeting those partnership eligibility criteria, on a national,
multi state, regional, or rural area (such as rural telework
programs) basis.
(B) Designation of Responsible Fiscal Agents.-- Each partnership
formed under subparagraph (A) shall designate a responsible fiscal
agent to receive and disburse grant funds under this subsection.
(C) Partnership Considerations.--Consideration in the awarding
of grants shall be given to any partnership that involves and
directly benefits more than one small business (each consisting of
100 employees or less).
(D) Allocation of Grants.--In making grants under this
paragraph, the Secretary shall make every effort to fairly
distribute grants across rural and urban areas, and across the
different geographic regions of the United States. The total amount
of grants awarded to carry out programs and projects described in
paragraph (1)(A) shall be allocated as follows:
(i) At least 80 percent of the grants shall be awarded to
programs and projects that train employed and unemployed workers in
skills in high technology, information technology, and
biotechnology, including skills needed for software and
communications services, telecommunications, systems installation
and integration, computers and communications hardware, advanced
manufacturing, health care technology, biotechnology and biomedical
research and manufacturing, and innovation services.
(ii) No more than 20 percent of the grants shall be available to
programs and projects that train employed and unemployed workers for
skills related to any single specialty occupation, as defined in
section 214(i) of the Immigration and Nationality Act.
(3) Start-Up Funds.--
(A) In General.--Except as provided in subparagraph (B), not
more than 5 percent of any single grant, or not to exceed $75,000,
whichever is less, may be used toward the start-up costs of
partnerships or new training programs and projects.
(B) Exception.--In the case of partnerships consisting primarily
of small businesses, not more than 10 percent of any single grant,
or $150,000, whichever is less, may be used toward the start-up
costs of partnerships or new training programs and projects.
(C) Duration of Start-Up Period.--For purposes of this
subsection, a start-up period consists of a period of not more than
2 months after the grant period begins, at which time training shall
immediately begin and no further Federal funds may be used for
start-up purposes.
(4) Training Outcomes.--
(A) Consideration for Certain Programs and Projects.--
Consideration in the awarding of grants shall be given to applicants
that provide a specific, measurable commitment upon successful
completion of a training course, to--
(i) hire or effectuate the hiring of unemployed trainees (where
applicable);
(ii) increase the wages or salary of incumbent workers (where
applicable); and
(iii) provide skill certifications to trainees or link the
training to industry-accepted occupational skill standards,
certificates, or licensing requirements.
(B) Requirements for Grant Applications.--Applications for
grants shall--(i) articulate the level of skills that workers will
be trained for and the manner by which attainment of those skills
will be measured; (ii) include an agreement that the program or
project shall be subject to evaluation by the Secretary of Labor to
measure its effectiveness; and (iii) in the case of an application
for a grant under subsection (c)(2)(A)(ii), explain what barriers
prevent the strategy from being implemented through a grant made
under subsection (c)(2)(A)(i).
(5) Matching Funds.--Each application for a grant to carry out a
program or project described in paragraph (1)(A) shall state the
manner by which the partnership will provide non-Federal matching
resources (cash, or in-kind contributions, or both) equal to at
least 50 percent of the total grant amount awarded under paragraph
(2)(A)(i), and at least 100 percent of the total grant amount
awarded under paragraph (2)(A)(ii). At least one-half of the non-
Federal matching funds shall be from the business or businesses or
business-related nonprofit organizations involved. Consideration in
the award of grants shall be given to applicants that provide a
specific commitment or commitments of resources from other public or
private sources, or both, so as to demonstrate the long-term
sustainability of the training program or project after the grant
expires.
(6) Administrative Costs.--An entity that receives a grant to
carry out a program or project described in paragraph (1)(A) may not
use more than 10 percent of the amount of the grant to pay for
administrative costs associated with the program or project.

(2)INA

The Immigration and Nationality Act (INA)(section 101(a)(15)
(H)(i)(b))(8 U.S.C 1101 (a)(15)(H)(i)(B)) defines the H-1B alien as
one ``who is coming temporarily to the United States to perform
services in a specialty occupation * * * or as a fashion model * * *
''

[[Page 578]]

The INA (Section 214(i)) sets criteria to define the term
``specialty occupation:''
(1) For purposes of section 1101(a)(15)(H)(i)(b) and paragraph
2, a ``specialty occupation'' means an occupation that requires--(A)
theoretical and practical application of a body of highly
specialized knowledge and,
(B) attainment of a bachelor's or higher degree in the specific
specialty (or its equivalent) as a minimum for entry into the
occupation in the United States.
(2) For purposes of section 1101(a)(15)(H)(i)(b)), the
requirements of this paragraph with respect to a specialty
occupation are--(A) full state licensure to practice in the
occupation, if such licensure is required to practice in the
occupation,
(B) completion of the degree described in paragraph (1)(B) for
the occupation, or (C)(i) experience in the specialty equivalent to
the completion of such degree, and (ii) recognition of expertise in
the specialty through progressively responsible positions relating
to the specialty.

Appendix B.--H-1B Petitions Approved in Fiscal Year 2001 for Top 10 Major Occupational Groups and Top 23
Detailed Occupations, Source: INS, July 2002
----------------------------------------------------------------------------------------------------------------
Group Detailed LCA*
Occupations rank rank code Total Percent
----------------------------------------------------------------------------------------------------------------
Computer-related............................................ 1 ......... 03 191,397 58.0
Systems analysis and programming........................ ....... 1 030 171,784 52.1
Occupations not elsewhere classified (n.e.c.)........... ....... 3 039 13,661 4.1
Data communications and networks........................ ....... 17 031 2,618 0.8
Computer systems technical support...................... ....... 18 033 2,590 0.8
Architecture, engineering and surveying..................... 2 ......... 00/01 40,388 -2.2
Electrical/Electronics engineering...................... 2 ......... 003 15,356 4.7
Occupations n.e.c....................................... ....... 6 019 8,404 3.4
Mechanical engineering.................................. ....... 10 007 4,815 1.5
Architectural........................................... ....... 15 001 2,937 0.9
Civil engineering....................................... ....... 19 005 2,534 0.8
Industrial engineering.................................. ....... 23 012 2,184 0.7
Administrative specializations.............................. 3 ......... 16 23,794 7.2
Accountants, auditors and related occupations........... ....... 5 160 11,076 3.4
Occupations n.e.c....................................... ....... 13 169 3,279 1.0
Budget and management systems........................... ....... 14 161 3,245 1.0
Sales and distribution management....................... ....... 21 163 2,415 0.7
Education................................................... 4 ......... 09 17,431 5.3
College and university education........................ ....... 4 090 12,183 3.7
Preschool, primary school and kindergarten education.... ....... 20 092 2,534 0.7
Managers and officials...................................... 5 ......... 18 12,423 3.8
Miscellaneous n.e.c..................................... ....... 7 189 6,864 2.1
Medicine and health......................................... 6 ......... 07 11,334 3.4
Physicians and surgeons................................. ....... 12 070 4,541 1.4
Occupations n.e.c....................................... ....... 16 079 2,827 0.9
Life Sciences............................................... 7 ......... 04 6,492 2.0
Biological Sciences..................................... ....... 11 041 4,813 1.5
Social Sciences............................................. 8 ......... 05 6,145 1.9
Economics............................................... ....... 8 050 5,733 1.7
Mathematics and physical sciences........................... 9 ......... 02 5,772 1.7
Chemistry............................................... ....... 22 022 2,360 0.7
Miscellaneous professional, technical & managerial.......... 10 ......... 19 5,662 1.7
Occupations n.e.c....................................... ....... 9 199 5,106 1.5
----------------------------------------------------------------------------------------------------------------
*Labor Condition Application code

Appendix E--Project Profile Information

Applicant Name:--------------------------------------------------------
Project Title:---------------------------------------------------------
Occupations and Number of individuals to be Trained [list]:
Level of Training:
a. Pre-career ladder------
b. Lower career ladder------
c. Mid-career ladder------
d. H-1B visa level (bachelor's degree or equivalent,
professionally recognized certificate training)------

Note: Pre-Career Ladder training refers to training that is
meant to prepare someone for development along a career path. This
may include basic literacy classes, GED classes, basic computer
skills training, ESL education, or other low level training that in
and of itself will not prepare the student to hold a job on an H-1B
level career ladder. Lower career ladder and mid-career level
training is more advanced than pre-career ladder but still
constitutes foundation preparation rather than training specifically
addressing a specialty occupation at the H-1B visa level. The H-1B
visa level requires ``a theoretical and practical application of a
body of highly specialized knowledge and attainment of a bachelor's
or higher degree in the specialty.''

Targeted Population:
a. Incumbent workers------
b. Unemployed workers------

Note: incumbent workers are those currently employed by a
specific company or business. Unemployed workers are those workers
not currently employed, but still part of the labor force.

Geographic area served:
a. Rural------
b. Urban------

Note: A general delineation of urban/rural is whether the
geographic area served in within a Metropolitan Statistical Area
(MSA). If within a MSA, the area is considered urban, otherwise,
rural.

Degrees/certificates expected [list by type. name and number]:

[FR Doc. 03-193 Filed 1-3-03; 8:45 am]
BILLING CODE 4510-30-P

(01/06/2003)

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