38 C.F.R. §§ 21.440–21.449

§21.440. Purpose and scope.

38 C.F.R. § 21.440

Sections 21.440 through 21.449 establish and implement the Veterans Employment Pay for Success (VEPFS) grant program, which provides grants to eligible entities to fund outcomes payments for projects that are successful in accomplishing employment rehabilitation for Veterans with service-connected disabilities. These sections apply only to the administration of the VEPFS grant program, unless specifically provided otherwise.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.441. Definitions.

38 C.F.R. § 21.441

For the purposes of §§ 21.440 through 21.449, and any Notices of Funding Availability (NOFA) issued pursuant to §§ 21.440 through 21.449, the following definitions apply:

Applicant is an eligible entity that submits an application for a VEPFS grant announced in a NOFA.

Eligible entity is a public or nonprofit agency, to include institutions of higher learning.

Employment outcome is the employment or earnings of a participant in an intervention group or control or comparison group during or after the service period. Improving employment outcomes means creating positive impact in terms of these outcomes, where the results for individuals that receive the intervention are better than the results for a valid control or comparison group that did not receive the intervention.

Intervention is a service or technology that is provided to individuals and is intended to achieve certain results.

Outcomes payments are funds that are paid to an investor or service provider and that are released only for the achievement of outcomes, as compared to those of a control or comparison group, that meet target levels that have been agreed to in advance of the provision of intervention (i.e., if positive impact has been created by the intervention in terms of these outcomes). When investors have provided the upfront capital for the project, these payments generally cover repayment of the principal investment and provide a modest return on investment for any associated risks of paying for the intervention upfront.

Pay for Success (PFS) agreement is a multi-party agreement to deliver an innovative or evidence-based intervention intended to improve outcomes for a targeted population signed by the entities that constitute the project partnership.

Project partnership is a collaboration among entities that negotiate one or more agreements and execute a project to improve employment outcomes for Veterans with service-connected disabilities. The entities that may be involved in a project partnership include:

(1)

(i)

Outcomes payor. Entity that receives a VEPFS grant and pays for outcomes of services that meet target levels that have been agreed to in advance of the provision of the intervention.

(ii)

Project coordinator. Facilitates, coordinates, and executes a PFS agreement to improve employment outcomes for Veterans with service-connected disabilities. With respect to other PFS projects, project coordinators are sometimes referred to as intermediaries.

(iii)

Evaluator. Independent entity that determines the impact of the services provided, including whether the services have resulted in employment outcomes that meet target levels that have been agreed to in advance of the provision of the intervention.

(iv)

Investor. Person or entity that provides upfront capital to cover costs of providing services/delivering an intervention and other associated costs before a determination has been made as to whether certain employment outcomes have been achieved at pre-set target levels.

(v)

Service provider. Entity that delivers an intervention designed to achieve improved employment outcomes for Veterans with service-connected disabilities.

(2)

A full project partnership is a project partnership that includes an outcomes payor, evaluator, investor (if the PFS agreement involves PFS financing), and service provider. A partial project partnership includes an outcomes payor and at least one of the following: Evaluator, investor (if the PFS agreement involves PFS financing), or service provider.

Recipient is the entity that receives a VEPFS grant under §§ 21.440 through 21.449. The recipient is also the outcomes payor.

Secretary refers to the Secretary of Veterans Affairs.

Service-connected disability is a disability that is “service-connected” as defined in 38 CFR 3.1.

Social finance strategy is a method for securing financial resources using an investment approach that focuses on achieving positive social and/or environmental impact with some form of financial return.

Strong evidence constitutes results from previous studies, the designs of which can support causal conclusions (i.e., studies with high internal validity), that include enough of the range of participants and settings to support scaling up to the state, regional, or national level (i.e., studies with high external validity).

Veteran has the same definition as provided in 38 CFR 3.1.

Veterans Employment Pay for Success (VEPFS) agreement is a PFS agreement to deliver an innovative, evidence-based intervention intended to improve Veteran employment outcomes.

Veterans Employment Pay for Success (VEPFS) project is a project with a strategy for delivering a service with a goal to significantly improve a current condition with respect to unemployment of a target Veteran population and sufficient evidence to support the theory behind the project using a financial model that includes cost savings by funding the project only if it is successful.

Work-plan is a document that articulates tasks and milestones with regard to a particular project.

Notes, amendments, and revision history

Amendments

[81 FR 52775, Aug. 10, 2016, as amended at 85 FR 37755, June 24, 2020]

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[81 FR 52775, Aug. 10, 2016, as amended at 85 FR 37755, June 24, 2020]

§21.442. VEPFS grants—general.

38 C.F.R. § 21.442

(a)

VA may award a VEPFS grant only to an eligible entity selected under § 21.446.

(b)

The amount of Federal funding available to be awarded in a VEPFS grant will be specified in the NOFA.

(c)

A VEPFS grant will be awarded for a minimum and maximum number of years that is specified in the VEPFS grant agreement, beginning on the date on which the VEPFS grant is awarded, with the availability of no-cost extensions.

(d)

As a condition of receiving a VEPFS grant, a recipient will be required to provide matching funds from non-Federal sources equal to or greater than the amount of Federal grant funds awarded, to be combined with the amount of Federal grant funds awarded and used as specified in § 21.443.

(e)

A VEPFS grant award is not a Veterans' benefit. Decisions of the Secretary are final and not subject to the same appeal rights as decisions related to Veterans' benefits.

Notes, amendments, and revision history

Amendments

[81 FR 52775, Aug. 10, 2016, as amended at 85 FR 37755, June 24, 2020]

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[81 FR 52775, Aug. 10, 2016, as amended at 85 FR 37755, June 24, 2020]

§21.443. Permissible uses of VEPFS grant funds.

38 C.F.R. § 21.443

(a)

VEPFS grant funds may be used only to fund outcomes payments if an intervention achieves outcomes at a pre-set target level that has been agreed to in a PFS agreement before service delivery begins for a PFS project with a goal to improve employment outcomes for Veterans with service-connected disabilities.

(b)

To pay for the indirect costs of administering a grant, regardless of whether an intervention achieves outcomes at a pre-set target level, a recipient may:

(1)

Use a Federally approved indirect cost rate (a rate already negotiated with the Federal Government);

(2)

Use a 10% de minimis rate of modified total direct costs;

(3)

Negotiate an indirect cost rate for the first time; or

(4)

Claim certain costs directly following 2 CFR 200.413.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.444. Notice of funding availability.

38 C.F.R. § 21.444

When funds are available for a VEPFS grant, VA will publish a NOFA in the Federal Register and on Grants.gov (http://www.grants.gov). The NOFA will identify:

(a)

The location for obtaining grant applications and the specific forms that will be required;

(b)

The date, time, and place for submitting completed grant applications;

(c)

The total amount and type of funds available and the maximum amount available to a single applicant;

(d)

Information regarding eligibility and the scoring process;

(e)

Any timeframes and manner for payments under the grant; and

(f)

Other information necessary for the VEPFS grant application process, as determined by VA, including contact information for the VA office that will oversee the VEPFS grant.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.445. Application.

38 C.F.R. § 21.445

To apply for a VEPFS grant, eligible entities must submit to VA a complete application package in accordance with the instructions in the NOFA and include the forms specified in the NOFA. Applications will be accepted only through Grants.gov (http://www.grants.gov). A complete grant application package, as further described in the NOFA, includes standard forms specified in the NOFA and the following:

(a)

Project description, including a description of the intervention, the Veteran population to be served, and anticipated employment outcomes;

(b)

Description of anticipated project partnership(s), including the responsibilities of each of the partner entities, the experience of any involved entities with serving Veteran populations, and other qualifications of the involved entities that may be relevant in carrying out responsibilities of the project partnership. In establishing the project partnership, entities, including the project coordinator, evaluator, and service provider, but excluding investors, must be procured following procurement standards set forth in 2 CFR 200.317 through 200.326.

(c)

A work plan, including a budget and timelines;

(d)

Description of applicant's expertise or experience with PFS or other social finance strategies or experience administering programs that serve Veterans with disabilities;

(e)

Documentation of applicant's ability and capacity to administer the project;

(f)

Proof of matching funds already secured, ability to secure matching funds, or commitments received; and

(g)

Any additional information as deemed appropriate by VA and set forth in the NOFA.

Notes, amendments, and revision history

Amendments

[81 FR 52775, Aug. 10, 2016, as amended at 85 FR 37755, June 24, 2020]

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

Amendments

[81 FR 52775, Aug. 10, 2016, as amended at 85 FR 37755, June 24, 2020]

§21.446. Scoring and selection.

38 C.F.R. § 21.446

(a)

Scoring. VA will score only complete applications received from eligible entities by the deadline established in the NOFA. VA will score applications using the following criteria:

(1)

Project description. Applicant identifies and describes an intervention that is designed to improve employment outcomes for Veterans with service-connected disabilities through a PFS agreement and demonstrates with strong evidence the ability of the intervention to meet objectives. Project description should explain and justify the need for the intervention, and include concept, size and scope of the project, and the Veteran population to be served.

(2)

Project partnership. Applicant provides a description of the partnership and the level of partnership (full, partial, or none) attained at the time of application.

(3)

Work plan and budget. Applicant provides a work plan that describes in detail the timeline for the tasks outlined in the project description and proposed milestones. Applicant provides a budget that specifies amount of outcome payments and indirect and other relevant costs.

(4)

Expertise and capacity. Applicant provides evidence of its past experience with PFS or other social finance strategies or experience administering programs that serve Veterans with disabilities, and of its ability and capacity to successfully administer the project.

(5)

Match. Applicant provides evidence of secured cash matching (1:1) funds or of its ability to secure or commitments to receive such funds.

(b)

Selection of recipients. All complete applications from eligible entities will be scored using the criteria in paragraph (a) of this section and ranked in order from highest to lowest total score. NOFA announcements may also clarify the selection criteria in paragraph (a). The relative weight (point value) for each selection criterion will be specified in the NOFA. Point values will be assigned according to the criterion's importance in ensuring the successful development and implementation of a VEPFS project. VA will award any VEPFS grant on the primary basis of scores but will also consider a risk assessment evaluation.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.447. VEPFS grant agreement.

38 C.F.R. § 21.447

After an applicant is selected to receive a VEPFS grant in accordance with § 21.446, VA will draft a grant agreement to be executed by VA and the applicant. Upon execution of the VEPFS grant agreement, VA will obligate grant funds to cover the amount of the approved grant, subject to the availability of funding. The VEPFS grant agreement will provide that the recipient agrees, and will ensure that each subcontractor (if applicable) agrees, to:

(a)

Operate the program in accordance with the provisions of §§ 21.440 through 21.449, 2 CFR part 200, and the applicant's VEPFS grant application;

(b)

Comply with such other terms and conditions, including recordkeeping and reports for program monitoring and evaluation purposes, as VA may establish in the Terms and Conditions of the grant agreement for purposes of carrying out the VEPFS program in an effective and efficient manner; and

(c)

Provide additional information that VA requests with respect to—

(1)

Program effectiveness, as defined in the Terms and Conditions of the grant agreement;

(2)

Compliance with the Terms and Conditions of the grant agreement; and

(3)

Criteria for evaluation, as defined in the Terms and Conditions of the grant agreement.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.448. Recipient reporting requirements.

38 C.F.R. § 21.448

(a)

Recipients must submit to VA a quarterly report 30 days after the close of each Federal fiscal quarter of the grant period. The report must include the following information:

(1)

A detailed record of the time involved and resources expended administering the VEPFS program.

(2)

The number of Veterans served, including demographics of this population.

(3)

The types of employment assistance provided.

(4)

A full accounting of VEPFS grant funds used or unused during the quarter.

(5)

A comparison of accomplishments related to the objectives of the award.

(6)

An explanation for any goals not met.

(7)

An analysis and explanation for any cost overruns.

(b)

VA may request additional reports in the Terms and Conditions of the grant agreement if necessary to allow VA to fully and effectively assess program accountability and effectiveness.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

§21.449. Recovery of funds.

38 C.F.R. § 21.449

If a recipient fails to comply with any Federal statutes or regulations or the terms and conditions of an award made under §§ 21.440 through 21.449, VA may impose additional conditions as specified in 2 CFR 200.207 or, if non-compliance cannot be remedied, take any appropriate actions specified in 2 CFR part 200 as remedies for non-compliance.

Notes, amendments, and revision history

Source

Source: 81 FR 52775, Aug. 10, 2016, unless otherwise noted.

Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.