PROFESSIONAL SERVICES CONTRACT Contract #0000000000000000000023011 This Contract (the “Contract"), entered into by and between Indiana Family and Social Services Administration (“FSSA”), Division of Family Resources (“DFR”) (the "State") and MAXIMUS HUMAN SERVICES, INC. (the "Contractor"), is executed pursuant to the terms and conditions set forth herein. In consideration of those mutual undertakings and covenants, the parties agree as follows: 1. Duties of Contractor The Contractor shall provide the following services relative to this Contract: The Contractor shall provide employment and training services to Indiana low income families and individuals who require some support in meeting basic household needs, including those participating in Indiana Manpower and Comprehensive Training (“IMPACT”), Gateway to Work (“GTW”), Temporary Assistance for Needy Families (“TANF”) and Supplemental Nutrition Assistance Program (“SNAP”), as further outlined in Exhibit 1—Scope of Work, which is attached hereto and incorporated herein. Included as a portion of the duties of the Contractor are certain reporting requirements to the State related to the SNAP Employment and Training Program. The Program and related reports are detailed in Exhibit 4—Food and Nutrition Service Reporting Measures, attached hereto and incorporated herein. 2. Consideration The Contractor will be paid at the rates detailed in Exhibit 2—Contract Financials Rate Card and Exhibit 3—Pay for Performance Standards, which are attached hereto and incorporated herein, for performing the duties set forth above. Total remuneration under this Contract shall not exceed $36,283,919.28. If the total amount invoiced by Contractor for services provided pursuant to this Contract will exceed the total remuneration specified in this Clause 2, Contractor shall not be obligated to continue performance until such time as an amendment adding sufficient additional funds is executed by the parties. Contractor agrees to provide the State with 30 days advance written notice if it anticipates that its invoices will exceed the total remuneration. 3. Term This Contract shall be effective for a period of four years. It shall commence on October 1, 2017 and shall remain in effect through September 30, 2021. Upon the mutual agreement of the State and Contractor, this Contract may be extended to a total of six years in two (2) one-year extensions. 4. Access to Records The Contractor and its subcontractors, if any, shall maintain all books, documents, papers, accounting records, and other evidence pertaining to all costs incurred under this Contract. They shall make such materials available at their respective offices at all reasonable times during this Contract, and for three (3) years from the date of final payment under this Contract, for inspection by the State or its authorized designees. Copies shall be furnished at no cost to the State if requested. Page 1 of 60 5. Assignment; Successors The Contractor binds its successors and assignees to all the terms and conditions of this Contract. The Contractor shall not assign or subcontract the whole or any part of this Contract without the State's prior written consent. The Contractor may assign its right to receive payments to such third parties as the Contractor may desire without the prior written consent of the State, provided that the Contractor gives written notice (including evidence of such assignment) to the State thirty (30) days in advance of any payment so assigned. The assignment shall cover all unpaid amounts under this Contract and shall not be made to more than one party. 6. Assignment of Antitrust Claims As part of the consideration for the award of this Contract, the Contractor assigns to the State all right, title, and interest in and to any claims the Contractor now has, or may acquire, under state or federal antitrust laws relating to the products or services which are the subject of this Contract. 7. Audits The Contractor acknowledges that it may be required to submit to an audit of funds paid through this Contract. Any such audit shall be conducted in accordance with IC §5-11-1, et seq. and audit guidelines specified by the State. The State considers the Contractor to be a “Contractor” under 2 C.F.R. 200.330 for purposes of this Contract. However, if required by applicable provisions of 2 C.F.R. 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements), Contractor shall arrange for a financial and compliance audit, which complies with 2 C.F.R. 200.500 et seq. 8. Authority to Bind Contractor The signatory for the Contractor represents that he/she has been duly authorized to execute this Contract on behalf of the Contractor and has obtained all necessary or applicable approvals to make this Contract fully binding upon the Contractor when his/her signature is affixed, and accepted by the State. 9. Changes in Work The Contractor shall not commence any additional work or change the scope of the work until authorized in writing by the State. The Contractor shall make no claim for additional compensation in the absence of a prior written approval and amendment executed by all signatories hereto. This Contract may only be amended, supplemented or modified by a written document executed in the same manner as this Contract. In addition, should there be any material change in the operational assumptions provided in this Contract or changes to state or federal laws, regulations, or policies (including, but not limited to those with respect to privacy and data security requirements) such that the Contractor incurs additional material costs, the parties shall negotiate an equitable adjustment to price and/or performance standards within a reasonable period of time after Contractor issues a request for such equitable adjustment. 10. Compliance with Laws A. The Contractor shall comply with all applicable federal, state, and local laws, rules, regulations, and ordinances, and all provisions required thereby to be included herein are hereby incorporated by reference. The enactment or modification of any applicable state Page 2 of 60 or federal statute or the promulgation of rules or regulations thereunder after execution of this Contract shall be reviewed by the State and the Contractor to determine whether the provisions of this Contract require formal modification. B. The Contractor and its agents shall abide by all ethical requirements that apply to persons who have a business relationship with the State as set forth in IC §4-2-6, et seq., IC §4-2-7, et seq., and the regulations promulgated thereunder. If the Contractor has knowledge, or would have acquired knowledge with reasonable inquiry, that a state officer, employee, or special state appointee, as those terms are defined in IC 4-2-6-1, has a financial interest in the Contract, the Contractor shall ensure compliance with the disclosure requirements in IC 4-2-6-10.5 prior to the execution of this contract. If the Contractor is not familiar with these ethical requirements, the Contractor should refer any questions to the Indiana State Ethics Commission, or visit the Inspector General’s website at http://www.in.gov/ig/. If the Contractor or its agents violate any applicable ethical standards, the State may, in its sole discretion, terminate this Contract immediately upon notice to the Contractor. In addition, the Contractor may be subject to penalties under IC §§4-2-6, 4-2-7, 35-44.1-1-4, and under any other applicable laws. C. The Contractor certifies by entering into this Contract that neither it nor its principal(s) is presently in arrears in payment of taxes, permit fees or other statutory, regulatory or judicially required payments to the State of Indiana. The Contractor agrees that any payments currently due to the State of Indiana may be withheld from payments due to the Contractor. Additionally, further work or payments may be withheld, delayed, or denied and/or this Contract suspended until the Contractor is current in its payments and has submitted proof of such payment to the State. D. The Contractor warrants that it has no current, pending or outstanding criminal, civil, or enforcement actions initiated by the State, and agrees that it will immediately notify the State of any such actions. During the term of such actions, the Contractor agrees that the State may delay, withhold, or deny work under any supplement, amendment, change order or other contractual device issued pursuant to this Contract. E. If a valid dispute exists as to the Contractor's liability or guilt in any action initiated by the State or its agencies, and the State decides to delay, withhold, or deny work to the Contractor, the Contractor may request that it be allowed to continue, or receive work, without delay. The Contractor must submit, in writing, a request for review to the Indiana Department of Administration (IDOA) following the procedures for disputes outlined herein. A determination by IDOA shall be binding on the parties. Any payments that the State may delay, withhold, deny, or apply under this section shall not be subject to penalty or interest, except as permitted by IC §5-17-5. F. The Contractor warrants that the Contractor and its subcontractors, if any, shall obtain and maintain all required permits, licenses, registrations, and approvals, and shall comply with all health, safety, and environmental statutes, rules, or regulations in the performance of work activities for the State. Failure to do so may be deemed a material breach of this Contract and grounds for immediate termination and denial of further work with the State. G. The Contractor affirms that, if it is an entity described in IC Title 23, it is properly registered and owes no outstanding reports to the Indiana Secretary of State. H. As required by IC §5-22-3-7: 1. The Contractor and any principals of the Contractor certify that: (A) the Contractor, except for de minimis and nonsystematic violations, has not violated the terms of: Page 3 of 60 (i) IC §24-4.7 [Telephone Solicitation Of Consumers]; (ii) IC §24-5-12 [Telephone Solicitations]; or (iii) IC §24-5-14 [Regulation of Automatic Dialing Machines]; in the previous three hundred sixty-five (365) days, even if IC §24-4.7 is preempted by federal law; and (B) The Contractor will not violate the terms of IC §24-4.7 for the duration of the Contract, even if IC §24-4.7 is preempted by federal law. 2. The Contractor and any principals of the Contractor certify that an affiliate or principal of the Contractor and any agent acting on behalf of the Contractor or on behalf of an affiliate or principal of the Contractor, except for de minimis and nonsystematic violations, (A) has not violated the terms of IC §24-4.7 in the previous three hundred sixty-five (365) days, even if IC §24-4.7 is preempted by federal law; and (B) will not violate the terms of IC §24-4.7 for the duration of the Contract, even if IC §24-4.7 is preempted by federal law. 11. Condition of Payment All services provided by the Contractor under this Contract must be performed to the State's reasonable satisfaction, as determined at the discretion of the undersigned State representative and in accordance with all applicable federal, state, local laws, ordinances, rules and regulations. The State shall not be required to pay for work found to be unsatisfactory, inconsistent with this Contract or performed in violation of any federal, state or local statute, ordinance, rule or regulation. 12. Confidentiality, Security and Privacy of Personal Information A. Terms used, but otherwise not defined in this Contract shall have the same meaning as those found in 45 CFR Parts 160, 162, and 164. B. “HIPAA” means the Health Insurance Portability and Accountability Act of 1996 (sections 1171 through 1179 of the Social Security Act), including any subsequent amendments to such Act. C. “HIPAA Rules” mean the rules adopted by and promulgated by the US Department of Health and Human Services (“HHS”) under HIPAA and other relevant federal laws currently in force or subsequently made, such as the Health Information Technology for Economic and Clinical Heath Act (“HITECH”), as enumerated under 45 CFR Parts 160, 162, and 164, including without limitation any and all additional or modified regulations thereof. Subsets of the HIPAA Rules include: 1) 2) 3) 4) “HIPAA Enforcement Rule” as defined in 45 CFR Part 160; “HIPAA Security Rule” as defined in 45 CFR Part 164, Subparts A and C; “HIPAA Breach Rule” as defined in 45 CFR Part 164, Subparts A and D; and “HIPAA Privacy Rule” as defined in 45 CFR Part 164, Subparts A and E. D. If Contractor is deemed a Business Associate to the State, Contractor is hereby authorized by the State to create, receive, maintain, and/or transmit Protected Health Information (“PHI”) and other Personally Identifiable Information (meaning personal information as collectively defined in IC 4-1-6-1 and IC 4-1-11-3, “PII”) on the State’s behalf pursuant to and consistent with the Services performed by Contractor under this Contract. Page 4 of 60 E. Contractor agrees that as a Business Associate to the State it is obligated to comply with the HIPAA Rules, as such Rules apply to Business Associates, throughout the term of this Contract and thereafter as may be required by federal law and such compliance will be at Contractor’s sole expense. Further: 1) Contractor will not use or further disclose PHI or PII except as expressly permitted by this Contract or as required by law. Contractor understands that this prohibition expressly applies to any information provided by the Social Security Administration, directly or through the State. It is further provided that nothing in this Contract shall be construed to permit Contractor use or disclose PHI in a manner that would violate the provisions of the HIPAA Privacy Rule as such Rule applies to the State with regard to the Services performed by Contractor under this Contract or otherwise cause the State to be noncompliant with the HIPAA Privacy Rule. 2) Contractor understands it must fully comply with the HIPAA Security Rule and will employ appropriate and compliant safeguards to reasonably prevent the use or disclosure of PHI and PII other than as permitted by this Contract or required by the HIPAA Privacy Rule. Such safeguards will be designed, implemented, operated, and managed by Contractor at Contractor’s sole expense and following the Contractor’s best professional judgment regarding such safeguards. Upon the State’s reasonable request, Contractor will review such safeguards with the State. Contractor will implement the following HIPAA requirements for any forms of PHI or PII that the Contractor receives, maintains, or transmits on behalf of the State: a) b) c) d) Administrative safeguards under 45 CFR 164.308; Physical safeguards under 45 CFR 164.310; Technical safeguards under 45 CFR 164.312; and Policies and procedures and documentation requirements under 45 CFR 164.316. 3) Contractor understands that it is subject to the HIPAA Enforcement Rule under which Contractor may be subject to criminal and civil penalties for violations of and noncompliance with the HIPAA Rules. F. Improper Disclosure, Security Incident, and Breach Notification. 1) Contractor understands that it is subject to the HIPAA Breach Rule. 2) For the purposes of this Contract, the term Breach has the same meaning as defined in the HIPAA Breach Rule. The term “Security Incident” shall mean an action or event that has resulted in the improper use or disclosure of PHI or PII in Contractor’s safekeeping (in violation of this Contract and/or in violation of the HIPAA Privacy Rule), the reasonable possibility or suspected possibility that an improper use or disclosure of PHI or PII may have occurred, or circumstances in which PHI or PII has been exposed to an opportunity for improper use or disclosure. 3) If a Security Incident occurs or if Contractor suspects that a Security Incident may have occurred with respect to PHI and/or PII in Contractor’s safekeeping: a) Contractor shall notify the State of the Security Incident within one (1) business day of when Contractor discovered the Security Incident; such notification shall be made to the FSSA Privacy & Security Office in a manner reasonably prescribed by the FSSA Privacy & Security Officer and shall include as much detail as the Contractor reasonably may be able to acquire within the one (1) business day. b) For the purposes of such Security Incidents, “discovered” and “discovery” shall mean the first day on which such Security Incident is known to the Contractor or, by Page 5 of 60 exercising reasonable diligence, would have been known to the Contractor. Regardless of whether the Contractor failed to exercise reasonable diligence, improperly delaying the notification of discovery beyond the one day requirement, the Contractor will notify the FSSA Privacy & Security Office within one day of gaining actual knowledge of a breach. c) In collaboration with the FSSA Privacy & Security Office, Contractor shall undertake all commercially reasonable efforts necessary to thoroughly investigate the Security Incident and to provide all results of such investigation to the FSSA Privacy & Security Office, including but not limited to Contractor personnel involved, source and cause of the Security Incident, specific information disclosed, disclosure victims (those whose PHI/PII was disclosed), disclosure recipients, supporting materials, actions taken to mitigate or stop the Security Incident, and similar details. d) Contractor’s investigation must be undertaken expeditiously and completed to the extent that a determination of whether a Breach has occurred can be reasonably made, including the identification of the victims or likely victims, within a reasonable timeframe as mutually agreed upon with the FSSA Privacy & Security Office, from the date of discovery of the Security Incident. Contractor shall provide details of its investigation to the FSSA Privacy & Security Office on an ongoing basis until the investigation is complete. e) Contractor and the FSSA Privacy & Security Office will collaborate on the results of Contractor’s investigation; the determination as to whether a Breach has occurred rests solely with the FSSA Privacy & Security Office. f) If it is determined by the FSSA Privacy & Security Office that a Breach has occurred: (i) (ii) (iii) (iv) (v) Contractor agrees that it shall be responsible for, including all costs with respect to, fulfilling the State’s and/or Contractor’s obligations for notice to all of the known and suspected victims of the Breach. Such notice shall comply with the HIPAA Breach Rule notification requirements and/or applicable notification requirements under State law. Contractor further agrees that such notification will be made under its name, unless otherwise specified by the FSSA Privacy & Security Office. Contractor will coordinate its Breach notification efforts with the FSSA Privacy & Security Office; the FSSA Privacy & Security Office will approve Contractor’s Breach notification procedures and plans, including the format and content of the notice(s) prior to such notification being made. Contractor accepts full responsibility for the Breach and any resulting losses or damages incurred by the State or any victim of the Breach. Contractor will undertake all commercially reasonable efforts necessary to mitigate any deleterious effects of the Breach for the known and suspected victims of the Breach. The State, through the FSSA Privacy & Security Office, will make the appropriate notifications to HHS and/or the applicable State agencies with respect to the Breach, unless the Contractor is directed to do so by the FSSA Privacy & Security Office. g) Contractor will undertake commercially reasonable corrective actions to eliminate or minimize to the greatest degree possible the opportunity for an identified Security Incident to reoccur and provide the FSSA Privacy & Security Office with its plans, status updates, and written certification of completion regarding such corrective actions. Page 6 of 60 G. Subcontractors. Contractor agrees that in accordance with the HIPAA Privacy Rule any subcontractors engaged by Contractor (in compliance with this Contract) that will create, receive, maintain, or transmit State PHI/PII on Contractor’s behalf will contractually agree to the same restrictions, conditions, and requirements that apply to Contractor with respect to such PHI/PII. H. Access by Individuals to their PHI. Contractor acknowledges that in accordance with the HIPAA Privacy Rule individuals for whom Contractor has direct possession of their PHI on the State’s behalf have the right to inspect and amend their PHI, and have the right for an accounting of uses and disclosures of such PHI, except as otherwise provided therein. Contractor shall provide such right of inspection, amendment, and accounting of disclosures to such individuals upon reasonable request by the State (or by such individuals if the State directly refers such individuals to Contractor). In situations in which Contractor does not have direct possession of such PHI, then the State shall be responsible for such inspection, amendment, and accounting of disclosures rights by individuals. I. Access to Records. Contractor shall make available to HHS and/or the State, Contractor’s internal practices, books, and records relating to the use and disclosure of PHI and PII provided to Contractor by the State or created, received, maintained, or transmitted by Contractor on the State’s behalf. Contractor shall promptly inform the State by giving notice to the FSSA Privacy & Security Office of any request by HHS (or its designee) for such internal practices, books, and/or records and shall provide the State with copies of any materials or other information made available to HHS. J. Return of Protected Health Information. Upon request by the State or upon termination of this Contract, Contractor will, at the State’s sole option, either return or destroy all copies of any PHI or PII provided to Contractor by the State, including PHI or PII created, received, maintained, or transmitted by Contractor on the State’s behalf and Contractor shall warrant in writing that it has returned or destroyed such PHI and/or PII. Further, upon termination of this agreement Contractor will not retain any copies of any such PHI and PII and shall warrant same in writing. K. At the sole discretion of the State, the State may terminate this Contract for Contractor’s material breach of this Section 12. L. Contractor agrees to participate in a disaster recovery plan, as appropriate to the Contractor’s Services, as determined by the State to be necessary to uphold integral business functions in the event of an unforeseen disaster. M. Drug and Alcohol Records. In the performance of the Services under this Contract, Contractor may have access to confidential information regarding alcohol and drug abuse patient records. Contractor agrees that such information is confidential and protected information and promises and assures that any such information, regardless of form, disclosed to Contractor for the purposes of this Contract will not be disclosed or discussed with others without the prior written consent of the State. The Contractor and the State will comply with the applicable requirements of 42 CFR Part 2 and any other applicable federal or state law or regulatory requirement concerning such information. The Contractor will report any unauthorized disclosures of such information in compliance with Section 12.F. N. Confidentiality of State Information. The Contractor understands and agrees that data, materials, and information disclosed to the Contractor may contain confidential and protected information. The Contractor covenants that data, material and information gathered, based upon or disclosed to the Contractor for the purpose of this Contract, will not be disclosed to or discussed with third parties without the prior written consent of the State. Page 7 of 60 The parties acknowledge that the services to be performed by Contractor for the State under this contract may require or allow access to data, materials, and information containing Social Security numbers maintained by the State in its computer system or other records. In addition to the covenant made above in this section and pursuant to 10 IAC 5-3-1(4), the Contractor and the State agree to comply with the provisions of IC 4-1-10 and IC 4-1-11. If any Social Security number(s) is/are disclosed by Contractor, Contractor agrees to pay the cost of the notice of disclosure of a breach of the security of the system in addition to any other claims and expenses for which it is liable under the terms of this contract. The Contractor shall report any unauthorized disclosures of Social Security numbers to the FSSA Privacy & Security Office within one (1) business day of the date of discovery. O. Contractor will indemnify and hold the State harmless from any loss, damage, costs, expense, judgment, sanction or liability, including, but not limited to, attorneys’ fees and costs, that the State incurs or is subject to, as a result of a breach of this Section by the Contractor or any subcontractor, agent or person under Contractor’s control. In the event a claim is made against the State for any such claim, cause of action, liability, damage, cost or expense, State may, at its sole option: (i) tender the defense to Contractor, who shall provide qualified and competent counsel to represent the State interest at Contractor’s expense; or (ii) undertake its own defense, utilizing such professionals as it deems reasonably necessary, holding Contractor responsible for all reasonable costs thereof. In any event, State shall have the sole right to control and approve any settlement or other compromise of any claim brought against it that is covered by this Section. P. Contractor shall adhere to all relevant FSSA Application Security policies located at http://in.gov/fssa/4979.htm for any related activities provided to FSSA under this contract. Contractor is responsible for validating that any subcontractors they engage will also comply with these policies. Any exceptions to these policies require written approval from the FSSA Privacy & Security Office. 13. Continuity of Services A. The Contractor recognizes that the service(s) to be performed under this Contract are vital to the State and must be continued without interruption and that, upon Contract expiration, a successor, either the State or another contractor, may continue them. The Contractor agrees to: 1. Furnish phase-in training; and 2. Exercise its best efforts and cooperation to effect an orderly and efficient transition to a successor. B. The Contractor shall, upon the State's written notice: 1. Furnish phase-in, phase-out services for up to sixty (60) days after this Contract expires; and 2. Negotiate in good faith a plan with a successor to determine the nature and extent of phase-in, phase-out services required. The plan shall specify a training program and a date for transferring responsibilities for each division of work described in the plan, and shall be subject to the State's approval. The Contractor shall provide sufficient experienced personnel during the phase-in, phase-out period to ensure that the services called for by this Contract are maintained at the required level of proficiency. C. The Contractor shall allow as many personnel as practicable to remain on the job to help the successor maintain the continuity and consistency of the services required by this Contract. The Contractor also shall disclose necessary personnel records and allow the successor to conduct on-site interviews with these employees. If selected employees are agreeable to the change, the Contractor shall release them at a mutually agreeable date and negotiate transfer of their earned fringe benefits to the successor. Page 8 of 60 D. The Contractor shall be reimbursed for all reasonable phase-in, phase-out costs (i.e., costs incurred within the agreed period after contract expiration that result from phase-in, phase-out operations). 14. Debarment and Suspension A. The Contractor certifies by entering into this Contract that neither it nor its principals nor any of its subcontractors are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from entering into this Contract by any federal agency or by any department, agency or political subdivision of the State of Indiana. The term "principal" for purposes of this Contract means an officer, director, owner, partner, key employee or other person with primary management or supervisory responsibilities, or a person who has a critical influence on or substantive control over the operations of the Contractor. B. The Contractor certifies that it has verified the state and federal suspension and debarment status for all subcontractors receiving funds under this Contract and shall be solely responsible for any recoupment, penalties or costs that might arise from use of a suspended or debarred subcontractor. The Contractor shall immediately notify the State if any subcontractor becomes debarred or suspended, and shall, at the State's request, take all steps required by the State to terminate its contractual relationship with the subcontractor for work to be performed under this Contract. 15. Default by State If the State, sixty (60) days after receipt of written notice, fails to correct or cure any material breach of this Contract, the Contractor may cancel and terminate this Contract and institute measures to collect monies due up to and including the date of termination. 16. Disputes A. Should any disputes arise with respect to this Contract, the Contractor and the State agree to act immediately to resolve such disputes. Time is of the essence in the resolution of disputes. B. The Contractor agrees that, the existence of a dispute notwithstanding, it will continue without delay to carry out all of its responsibilities under this Contract that are not affected by the dispute. Should the Contractor fail to continue to perform its responsibilities regarding all non-disputed work, without delay, any additional costs incurred by the State or the Contractor as a result of such failure to proceed shall be borne by the Contractor, and the Contractor shall make no claim against the State for such costs. C. If the parties are unable to resolve a contract dispute between them after good faith attempts to do so, a dissatisfied party shall submit the dispute to the Commissioner of the Indiana Department of Administration for resolution. The dissatisfied party shall give written notice to the Commissioner and the other party. The notice shall include (1) a description of the disputed issues, (2) the efforts made to resolve the dispute, and (3) a proposed resolution. The Commissioner shall promptly issue a Notice setting out documents and materials to be submitted to the Commissioner in order to resolve the dispute; the Notice may also afford the parties the opportunity to make presentations and enter into further negotiations. Within thirty (30) business days of the conclusion of the final presentations, the Commissioner shall issue a written decision and furnish it to both parties. The Commissioner’s decision shall be the final and conclusive administrative decision unless either party serves on the Commissioner and the other party, within ten (10) business days after receipt of the Commissioner’s decision, a Page 9 of 60 written request for reconsideration and modification of the written decision. If the Commissioner does not modify the written decision within thirty (30) business days, either party may take such other action helpful to resolving the dispute, including submitting the dispute to an Indiana court of competent jurisdiction. If the parties accept the Commissioner’s decision, it may be memorialized as a written Amendment to this Contract if appropriate. D. The State may withhold payments on disputed items pending resolution of the dispute. The unintentional nonpayment by the State to the Contractor of one or more invoices not in dispute in accordance with the terms of this Contract will not be cause for the Contractor to terminate this Contract, and the Contractor may bring suit to collect these amounts without following the disputes procedure contained herein. E. With the written approval of the Commissioner of the Indiana Department of Administration, the parties may agree to forego the process described in subdivision C. relating to submission of the dispute to the Commissioner. F. This paragraph shall not be construed to abrogate provisions of Ind. Code 4-6-2-11 in situations where dispute resolution efforts lead to a compromise of claims in favor of the State as described in that statute. In particular, releases or settlement agreements involving releases of legal claims or potential legal claims of the state should be processed consistent with Ind. Code 4-6-2-11, which requires approval of the Governor and Attorney General. 17. Drug-Free Workplace Certification As required by Executive Order No. 90-5 dated April 12, 1990, issued by the Governor of Indiana, the Contractor hereby covenants and agrees to make a good faith effort to provide and maintain a drug-free workplace. The Contractor will give written notice to the State within ten (10) days after receiving actual notice that the Contractor, or an employee of the Contractor in the State of Indiana, has been convicted of a criminal drug violation occurring in the workplace. False certification or violation of this certification may result in sanctions including, but not limited to, suspension of contract payments, termination of this Contract and/or debarment of contracting opportunities with the State for up to three (3) years. In addition to the provisions of the above paragraph, if the total amount set forth in this Contract is in excess of $25,000.00, the Contractor certifies and agrees that it will provide a drug-free workplace by: A. Publishing and providing to all of its employees a statement notifying them that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the Contractor's workplace, and specifying the actions that will be taken against employees for violations of such prohibition; B. Establishing a drug-free awareness program to inform its employees of (1) the dangers of drug abuse in the workplace; (2) the Contractor's policy of maintaining a drug-free workplace; (3) any available drug counseling, rehabilitation and employee assistance programs; and (4) the penalties that may be imposed upon an employee for drug abuse violations occurring in the workplace; C. Notifying all employees in the statement required by subparagraph (A) above that as a condition of continued employment, the employee will (1) abide by the terms of the statement; and (2) notify the Contractor of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction; Page 10 of 60 D. Notifying the State in writing within ten (10) days after receiving notice from an employee under subdivision (C)(2) above, or otherwise receiving actual notice of such conviction; E. Within thirty (30) days after receiving notice under subdivision (C)(2) above of a conviction, imposing the following sanctions or remedial measures on any employee who is convicted of drug abuse violations occurring in the workplace: (1) taking appropriate personnel action against the employee, up to and including termination; or (2) requiring such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state or local health, law enforcement, or other appropriate agency; and F. Making a good faith effort to maintain a drug-free workplace through the implementation of subparagraphs (A) through (E) above. 18. Employment Eligibility Verification As required by IC §22-5-1.7, the Contractor swears or affirms under the penalties of perjury that the Contractor does not knowingly employ an unauthorized alien. The Contractor further agrees that: A. The Contractor shall enroll in and verify the work eligibility status of all his/her/its newly hired employees through the E-Verify program as defined in IC §22-5-1.7-3. The Contractor is not required to participate should the E-Verify program cease to exist. Additionally, the Contractor is not required to participate if the Contractor is self-employed and does not employ any employees. B. The Contractor shall not knowingly employ or contract with an unauthorized alien. The Contractor shall not retain an employee or contract with a person that the Contractor subsequently learns is an unauthorized alien. C. The Contractor shall require his/her/its subcontractors, who perform work under this Contract, to certify to the Contractor that the subcontractor does not knowingly employ or contract with an unauthorized alien and that the subcontractor has enrolled and is participating in the E-Verify program. The Contractor agrees to maintain this certification throughout the duration of the term of a contract with a subcontractor. D. The State may terminate for default if the Contractor fails to cure a breach of this provision no later than thirty (30) days after being notified by the State. 19. Employment Option If the State determines that it would be in the State's best interest to hire an employee of the Contractor, the Contractor will release the selected employee from any non-compete agreements that may be in effect. This release will be at no cost to the State or the employee. 20. Force Majeure In the event that either party is unable to perform any of its obligations under this Contract or to enjoy any of its benefits because of natural disaster or decrees of governmental bodies not the fault of the affected party (hereinafter referred to as a "Force Majeure Event"), the party who has been so affected shall immediately or as soon as is reasonably possible under the circumstances give notice to the other party and shall do everything possible to resume performance. Upon receipt of such notice, all obligations under this Contract shall be immediately suspended. If the period of nonperformance exceeds thirty (30) days from the receipt of notice of the Force Majeure Page 11 of 60 Event, the party whose ability to perform has not been so affected may, by giving written notice, terminate this Contract 21. Funding Cancellation When the Director of the State Budget Agency makes a written determination that funds are not appropriated or otherwise available to support continuation of performance of this Contract, this Contract shall be canceled. A determination by the Director of State Budget Agency that funds are not appropriated or otherwise available to support continuation of performance shall be final and conclusive. 22. Governing Law This Contract shall be governed, construed, and enforced in accordance with the laws of the State of Indiana, without regard to its conflict of laws rules. Suit, if any, must be brought in the State of Indiana. 23. HIPAA Compliance This information has been incorporated into Clause 12. 24. Indemnification The Contractor agrees to indemnify, defend, and hold harmless the State, its agents, officials, and employees from all third party claims and suits including court costs, attorney's fees, and other expenses caused by any act or omission of the Contractor and/or its subcontractors, if any, in the performance of this Contract. The State shall not provide such indemnification to the Contractor. 25. Independent Contractor; Workers' Compensation Insurance The Contractor is performing as an independent entity under this Contract. No part of this Contract shall be construed to represent the creation of an employment, agency, partnership or joint venture agreement between the parties. Neither party will assume liability for any injury (including death) to any persons, or damage to any property, arising out of the acts or omissions of the agents, employees or subcontractors of the other party. The Contractor shall provide all necessary unemployment and workers' compensation insurance for the Contractor's employees, and shall provide the State with a Certificate of Insurance evidencing such coverage prior to starting work under this Contract. 26. Information Technology Enterprise Architecture Requirements If the Contractor provides any information technology related products or services to the State, the Contractor shall comply with all IOT standards, policies and guidelines, which are online at http://iot.in.gov/architecture/. The Contractor specifically agrees that all hardware, software and services provided to or purchased by the State shall be compatible with the principles and goals contained in the electronic and information technology accessibility standards adopted under Section 508 of the Federal Rehabilitation Act of 1973 (29 U.S.C. 794d) and IC 4-13.1-3. Any deviation from these architecture requirements must be approved in writing by IOT in advance. The State may terminate this Contract for default if the Contractor fails to cure a breach of this provision within a reasonable time. Page 12 of 60 27. Insurance A. The Contractor and their subcontractors ( if any) shall secure and keep in force during the term of this Contract the following insurance coverages (if applicable) covering the Contractor for bodily injury, property damage, and wrongful acts, errors and omissions committed by the Contractor or any subcontractors while performing their professional services arising out of or resulting from Contractor’s or subcontractors’ performance under this Contract: 1. Commercial general liability, including contractual liability coverage, and products or completed operations coverage (if applicable), with minimum liability limits not less than $1,000,000 per occurrence/$2,000,000 aggregate and $5,000,000 per occurrence/aggregate under an excess/umbrella liability policy unless additional coverage is required by the State. The State is to be named as an additional insured on a primary, non-contributory basis for Contractor’s or subcontractors’ liability covered under the policy in connection with this Contract. 2. Automobile liability for owned, non-owned and hired autos with a combined single limit minimum of $1,000,000 per occurrence. The State is to be named as an additional insured on a primary, non-contributory basis. 3. Errors and Omissions liability with a minimum liability limit of $1,000,000 per claim and in the aggregate. Coverage for the benefit of the State shall continue for a period of two (2) years after the contract expiration date provided under this Contract. 4. Fiduciary Liability is required if the Contractor is responsible for the management and oversight of various employee benefit plans and programs such as pensions, profitsharing and savings, among others. These contractors face potential claims for mismanagement brought by plan members. Limits should be no less than $5,000,000 per occurrence. 5. Valuable Papers coverage, available under an All Risk Property policy, is required when any plans, drawings, media, data, records, reports, billings and other documents are produced or used under this agreement. Insurance must have limits sufficient to pay for the re-creation and reconstruction of such records. 6. Commercial Crime insurance (Fidelity Bond), with a limit of $5,000,000 per occurrence. 7. The Contractor shall provide proof of such insurance coverage by tendering to the undersigned State representative a certificate of insurance prior to the commencement of this Contract and proof of workers' compensation coverage meeting all statutory requirements of IC §22-3-2, including “all other states coverage” if any of the services provided under this Contract involve work outside of Indiana. B. The Contractor's insurance coverage must meet the following additional requirements: 1. The insurer must have a certificate of authority or other appropriate authorization to operate in the state in which the policy was issued. 2. Any deductible or self-insured retention amount or other similar obligation under the insurance policies shall be the sole obligation of the Contractor. 3. The State shall have available to it the full extent of any coverage actually secured by the Contractor in excess of the minimum requirements set forth above. The duty to Page 13 of 60 indemnify the State under this Contract shall not be limited by the insurance required in this Contract. 4. The insurance, except for Errors and Omissions Liability, required in this Contract, through a policy or endorsement(s), shall include a provision that the policy and endorsements may not be canceled or non-renewed without thirty (30) days' prior written notice to the undersigned State agency. 5. The Contractor waives and agrees to require their insurer to waive their rights of subrogation against the State of Indiana. C. Failure to provide insurance as required in this Contract may be deemed a material breach of contract entitling the State to terminate this Contract. The Contractor shall furnish a certificate of insurance and required endorsements to the State before the commencement of this Contract. 28. Key Person(s) A. If both parties have designated that certain individual(s) are essential to the services offered, the parties agree that should such individual(s) leave their employment during the term of this Contract for whatever reason, the State shall have the right to terminate this Contract upon thirty (30) days' prior written notice. B. In the event that the Contractor is an individual, that individual shall be considered a key person and, as such, essential to this Contract. Substitution of another for the Contractor shall not be permitted without express written consent of the State. Nothing in sections A and B, above shall be construed to prevent the Contractor from using the services of others to perform tasks ancillary to those tasks which directly require the expertise of the key person. Examples of such ancillary tasks include secretarial, clerical, and common labor duties. The Contractor shall, at all times, remain responsible for the performance of all necessary tasks, whether performed by a key person or others. Key person(s) to this Contract is Meshia Henderson. 29. Licensing Standards The Contractor, its employees and subcontractors shall comply with all applicable licensing standards, certification standards, accrediting standards and any other laws, rules, or regulations governing services to be provided by the Contractor pursuant to this Contract. The State will not pay the Contractor for any services performed when the Contractor, its employees or subcontractors are not in compliance with such applicable standards, laws, rules, or regulations. If any license, certification or accreditation expires or is revoked, or any disciplinary action is taken against an applicable license, certification, or accreditation, the Contractor shall notify the State immediately and the State, at its option, may immediately terminate this Contract. 30. Merger & Modification This Contract constitutes the entire agreement between the parties. No understandings, agreements, or representations, oral or written, not specified within this Contract will be valid provisions of this Contract. This Contract may not be modified, supplemented, or amended, except by written agreement signed by all necessary parties. Page 14 of 60 31. Minority and Women's Business Enterprises Compliance Award of this Contract was based, in part, on the MBE/WBE participation plan. The following certified MBE or WBE subcontractors will be participating in this Contract: MBE/WBE PHONE COMPANY NAME Minority 317 845 5326 Woman 260 247 9437 Sahasra Technologies Corp Briljent, LLC SCOPE OF PRODUCTS and/or SERVICES professional services UTILIZATION DATE 10/01/2017 PERCENT professional services 10/01/2017 9.900 15.890 A copy of each subcontractor agreement must be submitted to IDOA’s MBE/WBE Division within thirty (30) days of the effective date of this Contract. Failure to provide a copy of any subcontractor agreement will be deemed a violation of the rules governing MBE/WBE procurement, and may result in sanctions allowable under 25 IAC 5-7-8. Failure to provide any subcontractor agreement may also be considered a material breach of this Contract. The Contractor must obtain approval from IDOA’s MBE/WBE Division before changing the participation plan submitted in connection with this Contract. The Contractor shall report payments made to MBE/WBE Division subcontractors under this Contract on a monthly basis. Monthly reports shall be made using the online audit tool, commonly referred to as “Pay Audit.” MBE/WBE Division subcontractor payments shall also be reported to the Division as reasonably requested and in a format to be determined by Division. 32. Nondiscrimination Pursuant to the Indiana Civil Rights Law, specifically including IC §22-9-1-10, and in keeping with the purposes of the federal Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Americans with Disabilities Act, the Contractor covenants that it shall not discriminate against any employee or applicant for employment relating to this Contract with respect to the hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of the employee's or applicant's race, color, national origin, religion, sex, age, disability, ancestry, status as a veteran, or any other characteristic protected by federal, state, or local law ("Protected Characteristics"). Contractor certifies compliance with applicable federal laws, regulations, and executive orders prohibiting discrimination based on the Protected Characteristics in the provision of services. Breach of this paragraph may be regarded as a material breach of this Contract, but nothing in this paragraph shall be construed to imply or establish an employment relationship between the State and any applicant or employee of the Contractor or any subcontractor. The State is a recipient of federal funds, and therefore, where applicable, Contractor and any subcontractors shall comply with requisite affirmative action requirements, including reporting, pursuant to 41 CFR Chapter 60, as amended, and Section 202 of Executive Order 11246 as amended by Executive Order 13672. 33. Notice to Parties Whenever any notice, statement or other communication is required under this Contract, it shall be sent by first class mail or via an established courier / delivery service to the following addresses, unless otherwise specifically advised. Page 15 of 60 Notices to the State shall be sent to: David Smalley Division of Family Resources 402 West Washington Street, Room W392 Indianapolis, IN 46204 Notices to the Contractor shall be sent to: Adam Polatnick Maximus Human Services, Inc. 11419 Sunset Hills Road Reston, VA 20190 As required by IC §4-13-2-14.8, payments to the Contractor shall be made via electronic funds transfer in accordance with instructions filed by the Contractor with the Indiana Auditor of State. 34. Order of Precedence; Incorporation by Reference Any inconsistency or ambiguity in this Contract shall be resolved by giving precedence in the following order: (1) this Contract, (2) attachments prepared by the State, (3) RFP#17-060, (4) Contractor's response to RFP#17-060, and (5) attachments prepared by the Contractor. All attachments, and all documents referred to in this paragraph, are hereby incorporated fully by reference. 35. Ownership of Documents and Materials A. All documents, records, programs, applications, data, algorithms, film, tape, articles, memoranda, and other materials (the "Materials") not developed or licensed by the Contractor prior to execution of this Contract, but specifically developed under this Contract shall be considered "work for hire" and the Contractor hereby transfers and assigns any ownership claims to the State so that all Materials will be the property of the State. If ownership interest in the Materials cannot be assigned to the State, the Contractor grants the State a non-exclusive, non-cancelable, perpetual, worldwide royalty-free license to use the Materials and to use, modify, copy and create derivative works of the Materials. B. Use of the Materials, other than related to contract performance by the Contractor, without the prior written consent of the State, is prohibited. During the performance of this Contract, the Contractor shall be responsible for any loss of or damage to the Materials developed for or supplied by the State and used to develop or assist in the services provided while the Materials are in the possession of the Contractor. Any loss or damage thereto shall be restored at the Contractor's expense. The Contractor shall provide the State full, immediate, and unrestricted access to the Materials and to Contractor's work product during the term of this Contract. 36. Payments A. All payments shall be made 35 days in arrears in conformance with State fiscal policies and procedures. As required by IC §4-13-2-14.8, the direct deposit shall be made by electronic funds transfer to the financial institution designated by the Contractor in writing unless a specific waiver has been obtained from the Indiana Auditor of State. No payments will be made in advance of receipt of the goods or services that are the subject of this Contract except as permitted by IC §4-13-2-20. Page 16 of 60 B. Claims shall be submitted for reimbursement in accordance with payment specifications defined in this Contract utilizing the State-generated FSSA Contract Claim Reimbursement Form. Costs are incurred on the date goods, services, and/or deliverables are satisfactorily provided in full and/or after a reimbursable expense has been paid. Reimbursement shall be based on actual goods, services and/or deliverables provided and/or actual reimbursable expenses previously paid. Claims shall be submitted to the State 1) within sixty (60) calendar days following the end of the month in which goods, services or deliverable were provided and/or expenses were paid or 2) where the successful delivery of goods, services, deliverables (including Work Participation Rate (“WPR”) reports) cannot be determined within sixty (60) calendar days following the end of the month in which goods, services, or deliverables were provided and/or expenses were paid, within sixty (60) calendar days of such time as they can be so determined. The State has the discretion, and reserves the right, to not pay any claims submitted later than ninety (90) calendar days of termination of this agreement. Payment for claims submitted after that time may, at the discretion of the State, be denied. C. The State acknowledges and agrees that Contractor is reliant upon the accuracy and efficiency of the State’s reporting system and that any inadequacies of that reporting system may prevent Contractor from fully and accurately capturing sufficient data to properly invoice the State. The State further acknowledges and agrees that it is solely responsible for the operation of its reporting system and therefore assumes the full risk of any failures, inefficiencies, delays, or inaccuracies associated with the reporting system. If any such failures, inefficiencies, delays, or inaccuracies result in Contractor being unable to timely submit an accurate invoice, as determined by Contractor, the State agrees that Contractor nevertheless shall be entitled to receive equitable compensation. The parties agree to meet within ten (10) business days of request by Contractor to determine such equitable compensation and the terms of payment. D. At the time that the final claim is submitted, all reconciliation issues must be resolved including the return of any incorrectly reimbursed monies or credits received for expenses previously reimbursed. Incorrectly reimbursed funds or credits received for expenses reimbursed will be returned immediately upon discovery as a direct payment, not credit, to the “State of Indiana.” Each return of funds will be accompanied with a completed FSSA Contract Claim Reimbursement Form identifying specific Components to be credited (negative) and each associated month reported on the original reimbursement request. Payments and FSSA Contract Claim Reimbursement Forms will be submitted to FSSA Administrative Services using the address provided on the reimbursement form. E. Claims must be submitted with accompanying supportive documentation, as designated by the State. Incomplete claims submitted or claims submitted without supportive documentation will be returned to the Contractor and/or Grantee and not processed for payment. Failure to successfully perform or execute the policies and/or provisions made in this contract may result in the denial and/or partial payment of claims submitted for reimbursement. 37. Penalties/Interest/Attorney's Fees. The State will in good faith perform its required obligations hereunder and does not agree to pay any penalties, liquidated damages, interest or attorney's fees, except as permitted by Indiana law, in part, IC §5-17-5, IC §34-54-8, IC §34-13-1 and IC § 34-52-2-3. Notwithstanding the provisions contained in IC §5-17-5, any liability resulting from the State's failure to make prompt payment shall be based solely on the amount of funding originating from the State and shall not be based on funding from federal or other sources. Page 17 of 60 38. Progress Reports The Contractor shall submit progress reports to the State upon request. The report shall be oral, unless the State, upon receipt of the oral report, should deem it necessary to have it in written form. The progress reports shall serve the purpose of assuring the State that work is progressing in line with the schedule, and that completion can be reasonably assured on the scheduled date. 39. Public Record The Contractor acknowledges that the State will not treat this Contract as containing confidential information, and will post this Contract on its website as required by Executive Order 05-07. Use by the public of the information contained in this Contract shall not be considered an act of the State. 40. Renewal Option This Contract may be renewed under the same terms and conditions, subject to the approval of the Commissioner of the Department of Administration and the State Budget Director in compliance with IC §5-22-17-4. The term of the renewed contract may not be longer than the term of the original contract. 41. Severability The invalidity of any section, subsection, clause or provision of this Contract shall not affect the validity of the remaining sections, subsections, clauses or provisions of this Contract. 42. Substantial Performance This Contract shall be deemed to be substantially performed only when fully performed according to its terms and conditions and any written amendments or supplements. 43. Taxes The State is exempt from most state and local taxes and many federal taxes. The State will not be responsible for any taxes levied on the Contractor as a result of this Contract. 44. Termination for Convenience This Contract may be terminated, in whole or in part, by the State, which shall include and is not limited to the Indiana Department of Administration and the State Budget Agency whenever, for any reason, the State determines that such termination is in its best interest. Termination of services shall be effected by delivery to the Contractor of a Termination Notice at least thirty (30) days prior to the termination effective date, specifying the extent to which performance of services under such termination becomes effective. The Contractor shall be compensated for services properly rendered prior to the effective date of termination. The State will not be liable for services performed after the effective date of termination. The Contractor shall be compensated for services herein provided but in no case shall total payment made to the Contractor exceed the original contract price or shall any price increase be allowed on individual line items if canceled only in part prior to the original termination date. For the purposes of this paragraph, the parties stipulate and agree that the Indiana Department of Administration shall be deemed to be a party to this agreement with authority to terminate the same for convenience when such termination is determined by the Commissioner of IDOA to be in the best interests of the State. Page 18 of 60 45. Termination for Default A. With the provision of thirty (30) days' notice to the Contractor, the State may terminate this Contract in whole or in part if the Contractor fails to: 1. Correct or cure any breach of this Contract; the time to correct or cure the breach may be extended beyond thirty (30) days if the State determines progress is being made and the extension is agreed to by the parties; 2. Deliver the supplies or perform the services within the time specified in this Contract or any extension; 3. Make progress so as to endanger performance of this Contract; or 4. Perform any of the other provisions of this Contract. B. If the State terminates this Contract in whole or in part, it may acquire, under the terms and in the manner the State considers appropriate, supplies or services similar to those terminated, and the Contractor will be liable to the State for any excess costs for those supplies or services. However, the Contractor shall continue the work not terminated. C. The State shall pay the contract price for completed supplies delivered and services accepted. The Contractor and the State shall agree on the amount of payment for manufacturing materials delivered and accepted and for the protection and preservation of the property. Failure to agree will be a dispute under the Disputes clause. The State may withhold from these amounts any sum the State determines to be necessary to protect the State against loss because of outstanding liens or claims of former lien holders. D. The rights and remedies of the State in this clause are in addition to any other rights and remedies provided by law or equity or under this Contract. 46. Travel No expenses for travel will be reimbursed unless specifically permitted under the scope of services or consideration provisions. Expenditures made by the Contractor for travel will be reimbursed at the current rate paid by the State and in accordance with the State Travel Policies and Procedures as specified in the current Financial Management Circular. Out-of-state travel requests must be reviewed by the State for availability of funds and for appropriateness per Circular guidelines. 47. Indiana Veteran's Business Enterprise Compliance. Award of this Contract was based, in part, on the Indiana Veteran’s Business Enterprise (“IVBE”) participation plan. The following IVBE subcontractors will be participating in this Contract: IVB PHONE COMPANY NAME Veteran 317/927-7004 Veteran Veteran 574/250-2831 317/541-0200 Bingle Research Group, Inc. M.R.C., Inc. Professional Management Enterprises, Inc. SCOPE OF PRODUCTS and/or SERVICES professional services UTILIZATION DATE 10/01/2017 PERCENT professional services professional services 10/01/2017 10/01/2017 0.190 6.160 0.630 A copy of each subcontractor agreement shall be submitted to IDOA within thirty (30) days of the request. Failure to provide any subcontractor agreement may also be considered a material Page 19 of 60 breach of this Contract. The Contractor must obtain approval from IDOA before changing the IVBE participation plan submitted in connection with this Contract. The Contractor shall report payments made to IVBE subcontractors under this Contract on a monthly basis. Monthly reports shall be made using the online audit tool, commonly referred to as “Pay Audit.” IVBE subcontractor payments shall also be reported to IDOA as reasonably requested and in a format to be determined by IDOA. 48. Waiver of Rights No right conferred on either party under this Contract shall be deemed waived, and no breach of this Contract excused, unless such waiver is in writing and signed by the party claimed to have waived such right. Neither the State's review, approval or acceptance of, nor payment for, the services required under this Contract shall be construed to operate as a waiver of any rights under this Contract or of any cause of action arising out of the performance of this Contract, and the Contractor shall be and remain liable to the State in accordance with applicable law for all damages to the State caused by the Contractor's negligent performance of any of the services furnished under this Contract. 49. Work Standards The Contractor shall execute its responsibilities by following and applying at all times the highest professional and technical guidelines and standards. If the State becomes dissatisfied with the work product of or the working relationship with those individuals assigned to work on this Contract, the State may request in writing the replacement of any or all such individuals, and the Contractor shall grant such request. 50. State Boilerplate Affirmation Clause I swear or affirm under the penalties of perjury that I have not altered, modified, or changed the State's Boilerplate clauses (as defined in the 2016 OAG/ IDOA Professional Services Contract Manual) in any way except for the following clauses which are named below: 2. Consideration. Modified. 9. Changes in Work. Modified. 27. Insurance. Modified. 36. Payments. Modified. 51. Additional Clause: Limitation of Liability Contractor’s total liability to the State for any and all claims, actions, suits, losses, costs, expenses, damages, and liabilities whatsoever arising out of or in any way related to this Agreement from any cause, including but not limited to negligence, errors, omissions, strict liability, breach of contract or breach of warranty shall not, in the aggregate exceed three (3) times the total contract amount. The forgoing limitation shall not apply to claims arising out of injuries to persons, damage to tangible property, infringement of third-party’s rights in intellectual property, or fraud. In no event shall either party be liable for special, indirect, incidental, economic, consequential or punitive damages, including but not limited to lost revenue, lost profits, replacement goods, loss of technology rights or services, loss of data, or interruption or loss of use of software or any portion thereof regardless of the legal theory under which such damages are sought even if a party has been advised of the likelihood of such damages, and notwithstanding any failure of essential purpose of any limited remedy. Page 20 of 60 52. Federal Requirements Clause The contractor must comply with the following provisions: 1. Executive Order 11246, entitled “Equal Employment Opportunity,” as amended by Executive Order 11375, and as supplemented by the Department of Labor Regulations (41 CFR Part 60): The Executive Order prohibits federal contractors and federally-assisted construction contractors and subcontractors who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin. The Executive Order also requires Government contractors to take affirmative action to ensure that equal opportunity is provided in all aspects of their employment. Contractor will compile data, maintain records, and submit reports as required to permit effective enforcement of nondiscrimination laws, regulations, policies, instructions, and guidelines. This agreement permits authorized USDA personnel to review such records, books, and accounts as needed during hours of program operation to ascertain compliance. 2. The Clean Air Act, Section 306: a. No Federal agency may enter into any contract with any person who is convicted of any offense under section 113(c) for the procurement of goods, materials, and services to perform such contract at any facility at which the violation which gave rise to such conviction occurred if such facility is owned, leased, or supervised by such person. The prohibition in the preceding sentence shall continue until the Administrator certifies that the condition giving rise to such a conviction has been corrected. For convictions arising under section 113(c)(2), the condition giving rise to the conviction also shall be considered to include any substantive violation of this Act associated with the violation of 113(c)(2). The Administrator may extend this prohibition to other facilities owned or operated by the convicted person. b. The Administrator shall establish procedures to provide all Federal agencies with the notification necessary for the purposes of subsection (a). c. In order to implement the purposes and policy of this Act to protect and enhance the quality of the Nation's air, the President shall, not more than 180 days after enactment of the Clean Air Amendments of 1970 cause to be issued an order (1) requiring each Federal agency authorized to enter into contracts and each Federal agency which is empowered to extend Federal assistance by way of grant, loan, or contract to effectuate the purpose and policy of this Act in such contracting or assistance activities, and (2) setting forth procedures, sanctions, penalties, and such other provisions, as the President determines necessary to carry out such requirement. d. The President may exempt any contract, loan, or grant from all or part of the provisions of this section where he determines such exemption is necessary in the paramount interest of the United States and he shall notify the Congress of such exemption. e. The President shall annually report to the Congress on measures taken toward implementing the purpose and intent of this section, including but not limited to the progress and problems associated with implementation of this section. [42 U.S.C. 7606] 3. The Clean Water Act: a. No Federal agency may enter into any contract with any person who has been convicted of any offense under Section 309(c) of this Act for the procurement of goods, materials, and services if such contract is to be performed at any facility at which the violation which gave rise to such conviction occurred, and if such facility is owned, leased, or supervised by such person. The prohibition in preceding sentence Page 21 of 60 shall continue until the Administrator certifies that the condition giving rise to such conviction has been corrected. b. The Administrator shall establish procedures to provide all Federal agencies with the notification necessary for the purposes of subsection (a) of this section. c. In order to implement the purposes and policy of this Act to protect and enhance the quality of the Nation’s water, the President shall, not more than 180 days after the enactment of this Act, cause to be issued an order: (1) requiring each Federal agency authorized to enter into contracts and each Federal agency which is empowered to extend Federal assistance by way of grant, loan, or contract to effectuate the purpose and policy of this Act in such contracting or assistance activities, and (2) setting forth procedures, sanctions, penalties, and such other provisions, as the President determines necessary to carry out such requirement. d. The President may exempt any contract, loan, or grant from all or part of the provisions of this section where he determines such exemption is necessary in the paramount interest of the United States and he shall notify the Congress of such exemption. e. The President shall annually report to the Congress on measures taken in compliance with the purpose and intent of this section, including, but not limited to, the progress and problems associated with such compliance. f. (1) No certification by a contractor, and no contract clause, may be required in the case of a contract for the acquisition of commercial items in order to implement a prohibition or requirement of this section or a prohibition or requirement issued in the implementation of this section. (2) In paragraph (1), the term “commercial item” has the meaning given such term in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)). 4. The Anti-Lobbying Act: This Act prohibits the recipients of federal contracts, grants, and loans from using appropriated funds for lobbying the Executive or Legislative Branches of the federal government in connection with a specific contract, grant, or loan. As required by Section 1352, Title 31 of the U.S. Code and implemented at 34 CFR Part 82 for persons entering into a grant or cooperative agreement over $100,000, as defined at 34 CFR Part 82, Section 82.105 and 82.110, the applicant certifies that: a. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the making of any federal grant, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal grant or cooperative agreement; b. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Confess in connection with this federal grantor or cooperative agreement, the undersigned shall complete and submit Standard Form – LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; c. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including sub-grants, contracts under grants and cooperative agreements, and subcontracts) and that all sub-recipients shall certify and disclose accordingly. 5. Americans with Disabilities Act: This Act (28 CFR Part 35, Title II, Subtitle A) prohibits discrimination on the basis of disability in all services, programs, and activities provided to the public by State and local governments, except public transportation services. Page 22 of 60 6. Drug Free Workplace Statement: The Federal government implemented the Drug Free Workplace Act of 1988 in an attempt to address the problems of drug abuse on the job. It is a fact that employees who use drugs have less productivity, a lower quality of work, a higher absenteeism, and are more likely to misappropriate funds or services. From this perspective, the drug abuser may endanger other employees, the public at large, or themselves. Damage to property, whether owned by this entity or not, could result from drug abuse on the job. All these actions might undermine public confidence in the services this entity provides. Therefore, in order to remain a responsible source for government contracts, the following guidelines have been adopted: a. The unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the work place. b. Violators may be terminated or requested to seek counseling from an approved rehabilitation service. c. Employees must notify their employer of any conviction of a criminal drug statute no later than five days after such conviction. d. Although alcohol is not a controlled substance, it is nonetheless a drug. It is the policy of the Indiana Family and Social Services Administration that abuse of this drug will also not be tolerated in the workplace. e. Contractors of federal agencies are required to certify that they will provide drug-free workplaces for their employees. 7. Debarment, suspension, and other responsibility matters: As required by Executive Order 12549, Debarment and Suspension, and implemented at 34 CFR Part 85, for prospective participants in primary covered transactions, as defined at 34 CFR Part 85, Sections 85.105 and 85.110. a. The applicant certifies that it and its principals: (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; (2) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and (4) Have not within a three-year period preceding this application had one or more public transactions (federal, state, or local) terminated for cause or default. b. Where the applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application. 8. The federal government reserves a royalty-free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, for federal government purposes, the copyright in any work developed under a grant, sub-grant, or contract under a grant or sub-grant or any rights of copyright to which a contractor purchases ownership. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. Page 23 of 60 Non-Collusion and Acceptance The undersigned attests, subject to the penalties for perjury, that the undersigned is the Contractor, or that the undersigned is the properly authorized representative, agent, member or officer of the Contractor. Further, to the undersigned’s knowledge, neither the undersigned nor any other member, employee, representative, agent or officer of the Contractor, directly or indirectly, has entered into or been offered any sum of money or other consideration for the execution of this Contract other than that which appears upon the face hereof. Furthermore, if the undersigned has knowledge that a state officer, employee, or special state appointee, as those terms are defined in IC 4-2-6-1, has a financial interest in the Contract, the Contractor attests to compliance with the disclosure requirements in IC 4-2-6-10.5. Agreement to Use Electronic Signatures I agree, and it is my intent, to sign this Contract by accessing State of Indiana Supplier Portal using the secure password assigned to me and by electronically submitting this Contract to the State of Indiana. I understand that my signing and submitting this Contract in this fashion is the legal equivalent of having placed my handwritten signature on the submitted Contract and this affirmation. I understand and agree that by electronically signing and submitting this Contract in this fashion I am affirming to the truth of the information contained therein. I understand that this Contract will not become binding on the State until it has been approved by the Department of Administration, the State Budget Agency, and the Office of the Attorney General, which approvals will be posted on the Active Contracts Database: https://hr85.gmis.in.gov/psp/pa91prd/EMPLOYEE/EMPL/h/?tab=PAPP_GUEST In Witness Whereof, Contractor and the State have, through their duly authorized representatives, entered into this Contract. The parties, having read and understood the foregoing terms of this Contract, do by their respective signatures dated below agree to the terms thereof. MAXIMUS HUMAN SERVICES, INC. By: Title: Date: Indiana Family and Social Services Administration, Division of Family Resources Digitally signed by Adam Polatnick DN: cn=Adam Polatnick, o, ou=MAXIMUS Human Services, Inc., email=adampolatnick@maximus.com, c=US Date: 2017.10.31 16:16:38 -04'00' By: Title: Date: Adrienne M. Shields Digitally signed by Adrienne M. Shields DN: cn=Adrienne M. Shields, o=DFR, ou=FSSA, email=Adrienne.Shields@fssa.in.g ov, c=US Date: 2017.10.31 21:12:51 -04'00' Electronically Approved by: Indiana Office of Technology Electronically Approved by: Department of Administration By: (for) Dewand Neely, Chief Information Officer Refer to Electronic Approval History found after the final page of the Executed Contract for details. By: (for) Jessica Robertson, Commissioner Refer to Electronic Approval History found after the final page of the Executed Contract for details. Electronically Approved by: State Budget Agency Electronically Approved as to Form and Legality: Office of the Attorney General By: (for) Jason D. Dudich, Director Refer to Electronic Approval History found after the final page of the Executed Contract for details. By: (for) Curtis T. Hill, Jr., Attorney General Refer to Electronic Approval History found after the final page of the Executed Contract for details. Page 24 of 60 EXHIBIT 1 SCOPE OF WORK 1.0 Introduction Overview DFR is responsible for the administration of the Indiana Manpower and Comprehensive Training program (IMPACT), Gateway to Work (GTW), Temporary Assistance for Needy Families (TANF), and the Supplemental Nutrition Assistance Program (SNAP). These programs provide benefits and services to low income families and individuals who require some support in meeting basic household needs. In administering these programs, DFR partners with DWD on related projects, including WIOA (Workforce Innovation and Opportunity Act). Additionally, DFR utilizes DWD as a resource for in demand jobs and related job skills training. For more information on each program, please see Section 3.0. The Contractor’s goal is to deliver employment and training services designed to provide program recipients the skills and resources needed to obtain and retain full time, permanent employment and advance in the workplace. To meet its mission of promoting economic independence, DFR’s employment and training Contractor partners with community organizations, government and non-profit social service agencies, private organizations and employers to help the individuals and families improve their level of self-sufficiency. This Scope of Work is an Exhibit to the Contract describing the Duties of the Contractor. 2.0 Definitions ABAWD: An able-bodied adult without dependents receiving SNAP benefits. Appeal: A formal request for a review of an action. Applicant: A potential member of FSSA’s public assistance programs. Applicant Job Search (AJS): AJS is a program for adults applying for TANF benefits. An adult applicant will be referred to a Case Manager who will enroll them in AJS. To be eligible for TANF benefits, an adult applicant must complete a specified number of days of job search activities through AJS. For more details see ICES Program Policy Manual § 2510.00 et seq. Application: Form used to apply for enrollment in any FSSA Program. Business Days: Official hours of operation 8:00 am to 4:30 pm (local time) based on a five (5) day work week excluding Saturdays, Sundays and official Indiana State employee holidays. Calendar Day: A period of 24 hours beginning at midnight and inclusive of weekends and holidays. Call Center: Telephone facility with toll-free dedicated telephone number, which is staffed for the purpose of meeting customer service needs. Case Manager: An individual, employed by the Contractor or its subcontractor, assigned to each Client and is responsible for tracking the Client’s activities, participation, and any supportive services that the Client may receive. Client: An individual resident of Indiana who is the recipient of the goods or services of a Program administered by DFR. Community Agencies: A community or social service agency to which the Contractor may refer Clients to in order for the Client to receive assistance. Examples include, community mental health centers, community action agencies, Goodwill, food pantries, etc. Community Resources: A resource that Clients may use to receive support and/or supplemental services. Contractor shall maintain a list of Community Resources and ensure that eligible Clients are referred to Community Resources. Examples of Community Resources include, but are not limited to, food banks, Wheels to Work, 211, and SNAP Nutrition Education, which is provided through Purdue Extension. Community Work Experience Program (CWEP): CWEP is intended for a Client who is unable to find unsubsidized employment and would benefit from work experience that might lead to employment. Participants are placed in an unpaid position that is closely related to their employment goals and interests. For TANF recipients, work sites may be public, non-profit or for Page 25 of 60 profit employers. For SNAP volunteers and ABAWDs, work sites are limited to public or private non-profit employers. Component: a service, activity, or program designed to help SNAP recipients gain skills, training, or work experience that will increase their ability to obtain regular employment and achieve self– sufficiency (reference 7 CFR 273.7(e)). Contract: The contract between the State and Contractor. Contractor: MAXIMUS Human Services, Inc. Department of Education (DOE): A federal agency that establishes policy for, administers, and coordinates most federal assistance to education. Department of Workforce Development (DWD): An Indiana agency responsible for the creation and administration of workforce development programs, the payment of unemployment claims, and the collection of unemployment insurance premiums from employers. DFR: The Division of Family Resources (DFR) is responsible for establishing eligibility for Medicaid, SNAP, and TANF benefits. The division also manages the timely and accurate delivery of SNAP and TANF benefits. Document Center: The Document Center handles the intake of mailed applications as well as the scanning, classification, and optical character recognition (OCR) quality checks of submitted documents. The Document Center is part of the larger eligibility operation. FACTS: The Family Assistance and Care through Technology Services System (FACTS) is the internal solution that provides relevant workflow and task management capabilities. Please see IEDSS below for the State’s long-term plans for FACTS. FSSA: The Indiana Family and Social Services Administration, including its subdivisions, including but not limited to the Division of Family Resources. Gateway to Work (GTW): A free, voluntary program that helps connect Healthy Indiana Plan (HIP) 2.0 members to Indiana’s workforce training programs, job search resources, and potential employers. HIP 2.0: The Healthy Indiana Plan 2.0 is a health-insurance program for qualified adults. It pays for medical costs for members and may provide vision and dental coverage. The plan covers Indianans ages 19 to 64 who meet specific income levels. The following individuals may qualify for HIP 2.0:  Couples with annual incomes up to $22,371.93 may qualify.  Individuals with annual incomes up to $16,590.42 may qualify.  A family of four with an annual income of $33,934.95 may qualify. ICES: The Indiana Client Eligibility System (ICES) is the automated eligibility system used by the Division of Family Resources in the determination of eligibility for Indiana’s public assistance programs. ICES is also the current System of Record, though this may change prior to Contract commencement. Please see IEDSS below for the State’s long-term plans for ICES. Program Policy Manual: The Program Policy Manual or Program Policy Manual, specifically Chapter 2500, provides the State’s rules and requirements for administering IMPACT. IEDSS: The Indiana Eligibility Determination Services System (IEDSS) is the State eligibility system that will replace the current State eligibility systems, ICES and FACTS. IEDSS encompasses the system capabilities to support individual eligibility and enrollment for Indiana’s public assistance programs. IMPACT: Indiana Manpower and Comprehensive Training (IMPACT) provides services designed to help recipients of Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) achieve economic self-sufficiency through education, job training, job search, and job placement activities. Performance Cost Allocation Plan (PCAP): The State must submit a PCAP to the federal government for approval on a quarterly basis as part of its integrated eligibility system requirements. The PCAP describes the methodology used for capturing and distributing indirect Page 26 of 60 and administrative cost pools to fairly represent the level of effort it takes to perform the eligibility activities for each federal program. Policy Answer Line (PAL): The Policy Answer Line is a resource for all policy-based inquiries about specific circumstances and their effect on eligibility determination and public assistance programs. Quality Assurance (QA): A systematic process to ensure a product or service being developed is meeting specified requirements. Recipient ID (RIDS): A recipient identification number (RID number) is a Client identification number and is found on cards issued for services, such as a card for Medicaid, SNAP or TANF services. Self-Sufficiency Plan: A Self-Sufficiency Plan or SSP is a signed agreement between TANF and/or SNAP and an IMPACT Client collaboratively developed by the Client and his or her Case Manager. The SSP should be a comprehensive plan for achieving economic self-sufficiency through employment. SNAP: The Supplemental Nutrition Assistance Program (SNAP) is administered by the USDA/Food and Nutrition Service (FNS). SNAP offers nutrition assistance to eligible low-income individuals and families, in the form of an Electronic Benefit Transfer (EBT) card. SNAP E&T Program: The Supplemental Nutrition Assistance Program Employment and Training (SNAP E&T) program is a partnership between FNS and DFR that provides SNAP participants opportunities to gain skills, training or experience that will improve their employment prospects and reduce their reliance on SNAP benefits. State: The State of Indiana and its agencies. State Contract Manager: The individual responsible for the approval of all deliverables, i.e., tasks, and sub-tasks or other work elements in the Scope of Work. Subcontractor: An entity having an arrangement with the Contractor, whereby the Contractor uses the products and/or services of that entity to fulfill some of its obligations under the Contract, while Contractor retains full responsibility for the performance of all of its [the Contractor's] obligations under the Contract, including payment to the Subcontractor. The Subcontractor has no legal relationship with the State, only with the Contractor. System of Record: The System of Record (SOR) is an information storage system that is the authoritative data source for a given data element. In the case of Indiana’s eligibility operation, the current SOR is ICES. This will change and the SOR will be IEDSS. TANF: Temporary Assistance for Needy Families is a federal program that provides cash assistance and supportive services to assist families that have children under the age of 18. Work Instructions: The instructional and technical manuals that help Contractor staff members navigate vendor and/or State systems, perform their job functions, or otherwise instruct staff members on the fulfillment of Contract responsibilities. Work Participation Rate (WPR): The percentage of cash assistance families that include ‘work eligible individuals’ (adult recipients) ‘engaged’ in 30 hours per week of ‘countable’ work activities in a given month. Work Verification Plan: Each State is required to prepare a TANF Work Verification Plan in accordance with the rules published by the US Department of Health and Human Services (HHS). Under these regulations, the State must submit its Work Verification Plan to HHS for approval. The plan follows key directions and responds to questions described in HHS Work Verification Plan guide. The plan is organized into six sections: countable work activities, hours engaged in Page 27 of 60 work, work-eligible individuals, internal controls, verification of other data used in calculating the work participation rates, and a detailed data section. 3.0 Employment and Training Services Program Overview 3.1 Public Assistance Plan Overview The Supplemental Nutrition Assistance Program (SNAP) provides food assistance to low and no income individuals and families living in the United States. It is a federal aid program administered by the Food and Nutrition Service of the US Department of Agriculture (USDA) and is administered and distributed at the State level. The program allows eligible individuals and families to purchase food through Electronic Benefits Transfer (EBT) cards. For more information about SNAP, please visit http://www.in.gov/fssa/dfr/3099.htm. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 put work requirements in place for able-bodied adults receiving SNAP. Due to the nationwide recession and high unemployment rate in 2009, the federal government allowed states, including Indiana to suspend the work requirements for ABAWDs by approving a labor surplus waiver. Indiana reinstated ABAWD time limited benefits on July 1, 2015. Since the time that the work requirements were reinstated, the number of able-bodied adults without dependents receiving benefits has changed from 49,576 in July 2015 to 10,831 in July 2016. The SNAP E&T program was established in 1987 to assist able-bodied SNAP recipients in obtaining employment. States submit annual SNAP E&T State Plans to FNS which describe the populations to be served, the services to be provided and the projected cost for administering the SNAP E&T program. Currently, Indiana runs a voluntary SNAP E&T program meaning that SNAP recipients are not sanctioned upon failing to attend a scheduled activity. ABAWDs who fail to comply for a total of 3 months within the fixed 36 month period are considered ineligible until they regain eligibility, become exempt from Work Registration requirements, or the fixed 36 month period ends, and a new one begins. Indiana offers SNAP E&T services to all SNAP recipients, but only automatically refers and schedules those who are identified as ABAWD and who are not currently meeting the ABAWD work requirements through employment. Non-ABAWD individuals who would like to receive SNAP E&T services are coded as a volunteer within the eligibility system based on interaction with a caseworker, and then receive an appointment for an IMPACT orientation. For more information on Indiana’s SNAP E&T program, please review the SNAP E&T State Plan, DFR Policy Section 2400, and DFR Policy Section 2500. Temporary Assistance for Needy Families (TANF) is a program that provides cash assistance and supportive services to families with children under the age of 18 to help them achieve economic self-sufficiency. TANF is funded by the Temporary Assistance to Needy Families (TANF) block grant which provides states with dollars to fund a vast array of social service programs to low-income families with children. The core goal of TANF is to allow states freedom to provide cash assistance and other types of assistance to move a family from welfare to employment and eventually off of all government programs. Page 28 of 60 TANF Cash Assistance Requirements: To be eligible for TANF cash assistance, a family must meet the following; A. B. C. D. Include a child under age 18 who is living with a parent or other relative acting as a parent; Be financially eligible based upon the state’s ‘standard of need’; Have assets below $1,000; and Meet non-financial criteria such as participation in employment and training activities. TANF Work Requirements: Federal law requires states to assess all adult TANF recipients and develop plans for how these recipients will achieve self-sufficiency for themselves and their families. Failure to comply with these self-sufficiency plans is grounds for sanction or other negative actions against the recipient. The self-sufficiency plans will address barriers (e.g., need for child care, lack of reliable transportation) the recipients face and what services the state will provide to overcome those barriers. To evaluate the states’ TANF program’s success, Congress created the Work Participation Rate (WPR) which measures how many adult TANF recipients are participating in work activities and for how many hours. The WPR is the only measurement Congress created for TANF, and states are subject to heavy penalties if they fail to meet the WPR. As a condition of eligibility for TANF in Indiana, adult applicants deemed mandatory for IMPACT, Indiana’s employment and training program, are required to attend Applicant Job Search Orientation and complete 20 days of Applicant Job Search activities. Failure to complete the program can result in denial of the application. Adult TANF recipients are required to participate in 30 hours per week of activities designed to help recipients find and retain employment. Failure to meet this requirement can result in the closure of the TANF cash assistance case. For more information about TANF Cash Assistance, please visit http://www.in.gov/fssa/dfr/2684.htm. For more information about the TANF WPR, please visit http://www.acf.hhs.gov/ofa/programs/tanf/data-reports. Indiana Manpower and Comprehensive Training (IMPACT) provides services designed to help recipients of SNAP and TANF achieve economic self-sufficiency through education, training, job search, and job placement activities. In addition to providing job training services, IMPACT aims to address a broad range of barriers that may inhibit Clients from seeking and maintaining employment. IMPACT provides employment services as well as a Case Manager to work with each Client to develop an individualized Self-Sufficiency Plan. In addition to job search, IMPACT provides job readiness activities, unpaid community work experience with a community or social service agency, basic education classes, and limited Supportive Services, such as transportation reimbursement. The IMPACT program contracts with service providers across Indiana to implement job search, job development, and placement activities. For a full description of current IMPACT activities, please visit http://www.in.gov/fssa/dfr/2682.htm. Page 29 of 60 Gateway to Work (GTW) is a free program that helps connect Healthy Indiana Plan (HIP) members to Indiana’s workforce training programs, job search resources, and potential employers. HIP members who are unemployed or working less than 20 hours a week will be referred to available employment, job search, and job training programs that will assist them in securing employment. Participation is voluntary. For more information about resources available under the GTW program, please see http://www.in.gov/fssa/hip/2466.htm. 3.2 IMPACT - Mandatory TANF Requirements Applicants: As a condition of eligibility for TANF, adult applicants deemed mandatory for IMPACT, Indiana’s employment and training program, are required to complete Applicant Job Search (AJS) Orientation which includes completing the AJS Self-Sufficiency Plan Assessment and participate a minimum of twenty (20) days for a minimum of four (4) hours each day within the sixty (60) day TANF application time frame. The twenty (20) days do not have to be consecutive. Failure to complete the Applicant Job Search program without good cause will result in the denial of the application for cash assistance. The time in Job Search as an applicant does not count toward the time in Job Search as a recipient. Once a TANF applicant is authorized to receive benefits, the applicant must continue to meet the following participation requirements: As a condition of eligibility for TANF, adult recipients deemed mandatory for IMPACT are required to participate in IMPACT and comply with their Self-Sufficiency Plan. Recipients are required to participate in 30 hours per week of federally defined countable work activities. Recipients who fail to comply with the Self-Sufficiency Plan, without good cause, are subject to sanction. TANF IMPACT Sanction Periods: First occurrence: Loss of TANF Cash Assistance and eligibility for supportive services for the TANF family for a minimum of one (1) month, or until the sanctioned individual demonstrates compliance, whichever is later. Second occurrence: Loss of TANF Cash Assistance and eligibility for supportive services for the TANF family for a minimum of three (3) months, or until the sanctioned individual demonstrates compliance, whichever is later. Third occurrence: Lifetime disqualification from the TANF Program for the TANF family, and any subsequent TANF family in which the sanctioned individual(s) is either the case head or a member. Please see the Program Policy Manual for more information about Mandatory TANF Requirements. Please see historical program volume information. Historical volumes are not a guarantee of future participant volumes. 3.3 IMPACT – Able Bodied Adults Without Dependents (ABAWD) SNAP Requirements Any new SNAP recipient that is an ABAWD will be referred to the employment and training program. Once determined eligible for SNAP, ABAWD Clients will be scheduled for an appointment with a Case Manager for IMPACT orientation. ABAWD SNAP Clients will receive priority for certain services, including enrollment in job skills training, due to Page 30 of 60 the time limited nature of their benefits. SNAP Clients are exempt from the ABAWD time limit if: A. Under age 18 or 50 years of age and older; B. Responsible for the care of a child under age 18 who is in the same SNAP assistance group or for the care of an incapacitated household member; C. Medically certified as physically or mentally unfit for employment or are pregnant; or D. Already exempt from general SNAP work requirements. SNAP Clients determined as ABAWD can meet the work requirements by: A. Working an average of 20 hours per week for a total of 80 hours per month; B. Participating in at least 20 hours a week of approved employment and training activities such as through the IMPACT program; C. Participating in a combination of work and employment and training activities for at least 20 hours a week; or D. Participating in a Community Workforce Experience (CWEP) “workfare” activity for the required hours. Please see the Program Policy Manual for more information about ABAWD SNAP Requirements. As of October 2016, there are 10,189 ABAWD SNAP Clients enrolled in the IMPACT program. Historical volumes are not a guarantee of future participant volumes. 3.4 IMPACT - Voluntary SNAP and TANF Participation Employment and training services are offered by the State to any SNAP recipient (if receiving TANF, must be referred as a TANF client) or TANF recipient, including those for whom IMPACT participation is not mandatory. TANF recipients who wish to volunteer for IMPACT would be referred as mandatory and thus tracked as such. While the State currently operates under voluntary SNAP Participation, the State reserves the right to change to a mandatory program in the future, potentially resulting in a higher population to be served in IMPACT. 3.5 Gateway to Work (GTW) GTW is an optional service, therefore HIP members are not required to participate to receive HIP 2.0 benefits. GTW services encompass all of the IMPACT services, but the Contractor shall separately keep track of GTW participation and engagement. Also, the Contractor shall also abide by the following procedures, and to the extent that they conflict with IMPACT procedures, the below procedures shall take precedence: A. When a GTW participant calls the Call Center, Contractor customer service representatives will conduct caller screening using a standardized call script to assess the unique needs of each caller, and then schedule selected participants for an orientation session with a GTW facilitator at the IMPACT office located nearest their residence. The Orientation will be scheduled to be conducted within 10 business days of the call, the same standard as the IMPACT program. Upon completion of the call, call center staff will document the call in a database and generate a GTW welcome letter that is mailed via USPS. A reminder letter will also be generated 5 business days prior to the Orientation date. Such letter will be printed and mailed by a third party. B. Callers who decide, after hearing about the GTW program, that they do not want to attend a GTW Orientation before the call ends will be mailed an information sheet thanking them for calling the call center, providing them details about Page 31 of 60 the benefits of the GTW program, and to restart the process should they change their mind later. C. The Contractor shall track individuals throughout their participation in the GTW program. The Contractor shall track all services provided and the outcomes of each service. The Contractor shall have reporting capabilities for this data and will be required to provide detailed reports and high-level executive dashboard summaries. 4.0 Mandatory Requirements a) General - The Contractor’s project shall comply with all applicable State and Federal Laws and Regulations. b) General - The Contractor shall comply with all Indiana Office of Technology (IOT) security policies (available at http://www.in.gov/iot/2394.htm) as well as all FSSA specific policies (set forth in greater detail in Attachment B, Sample Contract). These security policies are subject to modification during Contract negotiations pending changes to pending Federal law and FSSA policy. c) General - The Contractor shall adhere to the IMPACT portion of the Program Policy Manual (Chapter 2500.00.00). d) General – Maintain the highest levels of confidentiality with all Clients and Client case files. e) Security and Risk Mitigation - At no additional charge to the State, the Contractor will be required to have in a place a comprehensive, fully tested IT business continuity/disaster recovery plan (ITBCP). The ITBCP will, at a minimum, meet the requirements of NIST SP800-34. 5.0 Client Services 5.1 Employment and Training Services for IMPACT and GTW A. The Contractor shall provide Applicant Job Search (AJS) and employment and training services to all TANF applicants for which AJS is determined to be mandatory or who volunteer or are referred for IMPACT or GTW regardless of program or county of residence. B. The Contractor shall provide IMPACT or GTW in- person services in local offices that do not have a daily IMPACT presence. Onsite service will be based on need in specific counties but will be no less than bi-weekly in any county on a regular schedule as agreed to by the Contractor and the State. 5.1.1 Orientation and Initial Appointment A. The Contractor shall design, develop, and conduct orientation and initial appointment services for IMPACT and GTW Clients. This includes: i. Assign a Case Manager to the Client that conducts the initial appointment; ii. Providing sufficient job search and other initial orientation appointment slots in the System of Record to ensure that appointments can be conducted within ten (10) business days for Client referral for IMPACT and GTW services; iii. Conducting the orientation appointment for IMPACT and GTW Clients; Page 32 of 60 iv. v. vi. vii. Providing overview of IMPACT process per IMPACT initial appointment policy in the Program Policy Manual; Documenting attendance, date and time of appointment of all Clients, as well as hours of participation; Developing engagement strategies to ensure continuity and consistency of Client attendance and engagement; and Scheduling follow-up appointment with the Case Manager, if applicable. 5.1.2 Assessments and Self Sufficiency Plans A. The Contractor shall assign a Case Manager to each Client. The Case Manager will be responsible for setting and conducting meetings with the Client to ensure that their personal milestones are being met, and if they are not, determining a course of action to bring the Client back on track to meeting their employment goals. B. The Contractor shall design, develop, and complete all skills assessments for Clients, including occupational skills matching and strengths and barriers assessments in accordance with the Program Policy Manual. C. The assigned Case Manager shall work collaboratively with the Client to develop a highly personalized Self-Sufficiency Plans in accordance with the Program Policy Manual, including but not limited to action plans to resolve barriers, referrals to Community Agencies, recommendation for Supportive Service needs and assignment to work activities. SSPs shall be developed within 30 days of initial referral and updated as needed thereafter. D. Self-Sufficiency Plans will be personally tailored to meet the specific needs and goals of each Client. E. The Case Manager shall work collaboratively with the Client during their time in the program to ensure that the Client is meeting their goals, and if they are not meeting their goals, the Case Manager shall support the Client in overcoming any challenges or obstacles that may arise. F. The Self-Sufficiency Plan will include short and long term employment goals, steps to achieving those goals, dates for completion of activities and review of the plan, and responsible parties for each step. G. Each quarter, the State’s OV&V vendor may be visiting offices as well as taking a random sample of Client Self-Sufficiency Plans to measure whether quality standards and the agreed upon Performance Metrics are being met. 5.1.3 Skills Development and Resources A. Vocational and Job Skills Training i. The Contractor is expected to cultivate and maintain a network of training providers, education providers, and other service providers to provide a wide range of job skills and life skills training sufficient to meet a variety of Client needs identified in Self-Sufficiency Plans. Such vocational and skills training should include, but is not limited to: job coaching, application support, basic personal finance, professional conduct, resume writing, interview coaching, networking, job retention strategies, time management and productivity strategies, and a variety of other skills necessary for the acquisition and maintenance of a job. ii. The Contractor should ensure that its network of training providers is: Page 33 of 60 a) able to reasonably accommodate and maintain the number of Client referrals sent by the Contractor; b) located throughout the State for convenient Client access regardless of Client location; c) culturally competent; d) ADA accessible; e) able to accommodate the different levels of Client engagement; and f) able to provide a mixture of virtual and in-person services to encourage Client engagement and retention. iii. The Contractor shall cooperate with State staff, including agencies such as the Department of Education (DOE) and the Department of Workforce Development (DWD) to facilitate development of vocational and job skills training and remedial education programs as well as augment the Contractor’s job matching services. Should job skills training funding become limited, the Contractor will refer Clients to DWD; iv. The Contractor shall refer select TANF, SNAP and GTW individuals to Vocational and Job Skills training, who will provide job skills training through appropriate training providers. B. Job Search Training i. The Contractor shall provide job search training. Job search training must be supervised, guided, and structured and participation must be monitored and confirmed by a Client’s Case Manager to ensure the Client is on track to complete the requirements as outlined in his or her Self-Sufficiency Plan. ii. The Client’s Case Manager will be responsible for working closely with each Client to identify specific needs and address challenges to ensure that they are progressing toward economic self-sufficiency. iii. Job search training should employ innovative, creative, and evidence-based strategies that have proven to be effective. iv. Job search training activities may include, but are not limited to, conducting or arranging participant attendance to local job fairs; facilitating job clubs; providing access to and assistance with online job applications, and internet job search sites; networking; and employer cold-calling. v. All job search trainings and activities shall be documented in the Client’s case file by the Contractor. vi. Upon completion of an activity/component, such as workshops, networking session, job club, personal development, etc., the Contractor shall conduct an exit evaluation to determine the Client’s knowledge and skill development as well as to evaluate the overall effectiveness of the activity/component. C. Community Resource Information and Referral i. The Contractor should develop and maintain a thorough and up-todate database listing all available Community Resources and Community Agencies by location. i. The Contractor shall inform Clients of local Community Resources. ii. The Contractor shall refer Clients to Community Agencies as appropriate. iii. The Contractor shall respond to phone calls made to its officers and regarding Community Resources and Community Agencies, Page 34 of 60 iv. v. vi. vii. viii. regardless of the identity of the caller, and direct the caller appropriately if applicable. The Contractor shall provide DCS Support and submit Form 0310 (Preliminary Report of Child Abuse and/or Neglect) where necessary. The Contractor shall refer Client to eligibility for replacement Medicaid and/or Electronic Benefit Transfer (EBT) cards. The Contractor shall participate in community meetings and/or community activities (job fairs, CWEP development, resource information). The Contractor shall communicate with community agencies as required. The Contractor shall provide input, content or other policy information as requested by DFR or the FSSA Communications Office for public relations and outreach efforts. 5.1.4 Providing and Determining Eligibility for Supportive Services A. The Contractor shall administer and provide Supportive Services to eligible Clients. This duty includes: i. Developing and maintaining a network of Supportive Services providers, particularly for transportation (bus passes/gas cards), clothing and vehicle repair services; ii. Contractor provided Supportive Services to Clients and TANF applicants participating in the Applicant Job Search program in accordance with the policies established by the State; iii. Contractor monitored Supportive Services issued to each Client and maintain electronic case file documentation; iv. Contractor maintained record of individual supportive services issued. v. Contractor processed payments to Supportive Services vendors. vi. Contractor developed and tracked a quarterly budget for Supportive Services. The quarterly budget shall be completed and submitted to the DFR Controller fifteen (15) calendar days prior to the start of each State fiscal quarter for review and approval. Expenses shall then be tracked on a monthly basis and a report shall be provided to the Division of Family Resources (DFR) Controller by the 15th calendar day of each month showing expenditures for the preceding month. B. The Contractor shall abide by the following requirements in its administration of Supportive Services: i. The Contractor cannot deny Supportive Services based on a lack of funding to any constituent otherwise eligible for those services under current policy guidelines. Funding levels for Supportive Services will be increased if a policy change is implemented if there is a material increase in applicants or referrals to require additional expenditures. 5.1.5 Job Placements and Work Activity A. Once the Contractor has completed the initial assessment of a Client, worked collaboratively with the client to develop a Self-Sufficiency Plan, and the Client has completed the requisite hours of job training and education, the Contractor is required to assist the Client find a job or work placement. These Page 35 of 60 B. C. D. E. F. placements may range from engagement in a volunteer capacity, placement at a social service agency, community organization, or private employer. The Contractor shall assign Clients to appropriate work activities, including but not limited to job search, community work experience, job readiness training, personal development, vocational training and job skills training in accordance to the TANF Work Verification Plan and IMPACT sections in the ICES Program Policy manual. The Contractor shall assign each SNAP IMPACT Client to work components in accordance to the SNAP Employment and Training Plan and State Policy within 30 days of initial IMPACT appointment. The Contractor is required to track and monitor each Client’s placement and ensure that the Client is on track to meet the goals outlined in the SelfSufficiency Plan through active case management. The Contractor shall also track each Client’s engaged hours in a placement to ensure they are retaining eligibility for public benefits. Community Work Experience Placement (CWEP) i. The Contractor shall develop CWEP sites and obtain agreements with these sites to meet CWEP placement needs of Clients. These CWEP agreements will use an agreement form approved by the State Central Office. ii. The Contractor shall provide liability insurance coverage applicable to CWEPs as required. iii. The Contractor shall monitor the performance and participation of Clients enrolled in CWEP sites per the ICES Program Policy Manual. Job Placement i. The Contractor shall partner with employers throughout the State to meet the job placement needs of Clients. Contractor will enter into agreements with these employers using the agreement form approved by the State Central Office. ii. The Contractor shall establish relationships with local employers to provide up to date job leads, invite employers to IMPACT offices to interview on the spot and/or to share information, and facilitate employer-specific hiring events. iii. The Contractor shall work collaboratively with job placement employers and partners to track and monitor Client performance. iv. The Contractor shall ensure it is providing adequate job retention support and training for the Clients to ensure that each Client is on track to meet the goals outlined in his or her Self Sufficiency Plan. These retention support and training responsibilities include, but are not limited to, individual mentoring; job coaching; job shadowing; Supportive Services; linking participants with income supports; referrals for mental health and/or substance abuse counseling, phone calls to participants and/or employers; employer visits; home visits; performance incentives; peer support; and Case Management. 5.2 Case Management Case Management is the process of coordinating and brokering multiple services needed by Clients to achieve economic self-sufficiency. Case Managers serve as both the point of contact for Clients and the point of accountability for program administrators. The Case Management process is designed to provide a structured and standardized approach to ensure the delivery of services that will achieve the Page 36 of 60 objectives of the IMPACT and GTW programs. Case Managers shall perform the following functions: A. Conduct individual Self-Sufficiency Plan Assessments; B. Develop the Self-Sufficiency Plan with the Client; C. Communicate options and opportunities in the program to the Client; D. Provide referrals to appropriate Community Resources or services; E. Monitor Client participation hours; F. Document attendance for each Client; G. Enter the Client’s attendance hours into the System of Record; H. Review Applicant Job Search attendance verification of TANF Clients to determine AJS compliance, make and process good cause determination in a timely manner to avoid AJS delays in TANF eligibility processing; I. Provide Supportive Services where applicable; J. Conduct periodic reviews of client outcomes with specific clients to measure the effectiveness and success rate of the strategies and goals outlined in the Client’s Self-Sufficiency Plan; K. Help Clients develop course-correction strategies to ensure their individual needs and challenges are being addressed in an effective manner; L. Evaluate Client outcomes; M. Notify eligibility staff of all reported changes within 2 business days of report; N. Create fraud referrals and assist with investigations; and O. Submit 24-month clock extension requests and recommendations with accompanying documents in a timely manner per State policy (see 2453.00.00 in the Program Policy Manual). 5.3 Client Oversight and Evaluation A. The Contractor shall evaluate individual Client progress to verify participation requirements are being met and notify Clients who are not meeting participation requirements. The Contractor shall ensure that all activity to propose or end sanctions is approved by the State. For TANF Clients who are non-compliant with program requirements, the following sanction activity shall be completed by the Contractor: i. The Contractor shall provide non-compliance documentation to the State as necessary to initiate sanction process; ii. The Contractor shall determine if the non-compliant individual has good cause as defined by the State policy; iii. The Contractor shall enter necessary changes into System of Record or appropriate support system for sanction requests; iv. The Contractor shall delete and end sanctions with State approval and request exemptions if applicable. 6.0 Program Management 6.1 Policy Updates A. In the event that the State changes a policy or rule which impacts the scope of this Contract (including but not limited to changes to the Program Policy Manual), the Contractor shall promptly disseminate policy information to its staff. The Contractor shall also prepare updated IMPACT-related responses and materials for use by the Policy Answer Line within seven (7) days of policy or rule change. Page 37 of 60 B. The Contractor shall provide input for financial budget analysis (for large changes) within ten (10) days of request by the State. C. The Contractor shall provide data and input for State and Federal reporting within seven (7) days of request by the State. D. On occasion, the citizens of the State of Indiana will submit correspondence to IMPACT offices with program-related feedback or criticism. The State will ultimately respond to constituent inquiries and feedback, but the Contractor shall review and direct correspondence to the State and support the drafting of responses, if applicable. E. The Contractor shall maintain accurate Work Instructions (instructional materials for its own employees) to support all IMPACT and GTW policy and procedures. Contractor shall submit Work Instructions to the State and/or State designated third party vendor for review, corrected as needed, and resubmitted to the State for final approval and placement request in the State specified online tool for Work Instructions prior to the implementation of new policies and procedures. 6.2 Quality Control and Program Integrity A. The Contractor shall conduct quarterly management evaluations of the local offices, which includes: i. A review of staffing; orientation and self-sufficiency plan for quality; ii. A review of participation requirements; iii. Tracking participation hours including, but not limited to employment reporting; and iv. A review of supportive services, community work experience placements, job development and placement, non-compliance, communication/collaboration, office environment and case notes. B. The Contractor shall participate in and respond to State monitoring/evaluations by the State and State designated third party vendors. C. The Contractor shall identify & report its actual and potential SLA/KPI/KPM noncompliance. D. The Contractor shall conduct reviews of its invoices prior to billing and verify all requirements are met prior to billing. E. The Contractor shall develop corrective action plans as required by Federal, State or Contractual provisions. F. The Contractor shall assist in audits (Auditor offices (e.g., SBA, FSSA Audit, DFR Program Integrity, Federal (IRS, CMS, FNS, HHS)) as required. G. The Contractor shall report immediately suspected fraudulent activity to the FSSA Office of General Counsel Compliance Division. The Contractor shall assist with fraud investigation as applicable. H. The Contractor shall provide ongoing continual improvement through Quality Assurance (case reading), and submit results to the State or State designated third party vendor upon request. I. The Contractor shall submit corrections to all incorrect TANF hours discovered during the Work Verification Plan reviews, other State and State designated third party vendor reviews, and Contractor case reviews within 30 days of receipt of review results with a copy of the correction to State IMPACT policy staff. Page 38 of 60 6.3 SNAP Employment and Training Plan A. The Contractor shall provide a complete, proposed SNAP E&T plan to the State for review no later than July 15 of each year to enable the State to submit a th complete plan to FNS by August 15 . B. The Contractor’s plan shall include a detailed breakdown of each programmatic component, estimates of the number of individuals who will be served, and cost estimates for the Contractor's services. C. The Contractor shall ensure adherence with all components of the approved plan and accurately track activities by component. D. SNAP IMPACT funding will be subject to change annually as FNS has approval rights for this funding when approving the SNAP E&T plan for each federal fiscal year. E. The State retains the right to review and approve the plan before implementation. 6.4 Provide Input for Budget and Finance A. The Contractor shall provide input for PCAP (Performance Cost Allocation Plan). B. The Contractor shall assist in budget development as required. C. The Contractor shall provide input for fiscal/legislative impact activities (Cost Impact Analysis of legislative changes, staffing changes, outsourcing initiatives, etc.). D. The Contractor shall advise DFR on policy issues. 6.5 Correspondence A. The Contractor shall read State publications and correspondences (e.g. Flash Bulletins, e-mail, Administrative Letters, Policy Transmittals, Alerts/Tasks). B. The Contractor shall read new information in the State designated online reference/performance tool. C. The Contractor shall share State correspondences, publications, and other relevant information with appropriate staff and implement as required. 6.6 Hearings and Appeals A. The Contractor shall assist State or vendor staff preparing for hearings by providing documents and information when requested. B. The Contractor shall implement the hearing decision, as applicable. C. The Contractor shall testify in court (as the appropriate Subject Matter Expert or SME) if requested. 7.0 Technology and Reporting 7.1 System of Record A. The current State system of record is the Indiana Client Eligibility System (ICES). State and Contractor staff also utilize the Family Assistance and Care through Technology Services System (FACTS). ICES is the automated eligibility system used by DFR in the determination of eligibility for Indiana’s public assistance programs. FACTS is the internal Curam-based solution that provides relevant case management capabilities. Both ICES and FACTS work collaboratively to deliver a broad-based solution which includes IVR, Document Management, and Call Centers. Page 39 of 60 B. As the new Indiana Eligibility Determination Services System (IEDSS) becomes operational, both ICES and FACTS will gradually be replaced with IEDSS. The goal of IEDSS is to provide an integrated solution to support individual eligibility and enrollment for multiple public assistance programs. Upon its statewide roll out, IEDSS will replace ICES as the System of Record. C. IEDSS will be rolled out on a State-determined schedule until it is fully implemented throughout the State of Indiana. D. The State implemented the IMPACT system on June 10, 2017. The Contractor is expected to use the tool as the Case Management Platform. 7.2 Reporting and Data A. The Contractor shall prepare the statistical and performance reports as detailed in Exhibit 4 to the Contract. Monthly reports shall be due on the 15th day of the calendar month immediately following the month for which the report is being generated. B. The Contractor will be responsible for collecting data to meet the reporting requirements for SNAP Employment and Training. New requirements for SNAP E & T reporting become effective October 1, 2016, with the first report due to Food and Nutrition Service (FNS) due January, 2018 for Federal Fiscal Year 2017. C. Reports shall be delivered via email to the EMPState_Review@fssa.in.gov Inbox and to the IMPACT Policy Manager. 8.0 Billing, Audit, and Payment Point Claims 8.1 Form and Frequency of Billing A. The Contractor shall complete and submit monthly invoices to the State by the 10th of each calendar month for the previous month. B. Billing detail shall clearly break down IMPACT spending between SNAP, TANF and GTW. Billing detail shall delineate between Contractor fees (pay-forperformance) and eligible expenses. C. The Contractor shall ensure that all expenses can be drilled down to the Client level for audit purposes. D. For invoices that are initially denied, corrected re-billings for approved amount must be submitted within 5 business days of denial. E. State systems, including, but not limited to: FACTS, ICES, IEDSS (ICES and FACTS replacement), ResCareWORCS (GTW), Jobs and COGNOS shall be the systems used to validate invoices. 8.2 Audit Requirements A. The Contractor shall close electronic case files in the State system when appropriate. B. The Contractor shall securely shred printed materials containing Client information if Contractor intends to dispose of them. C. The Contractor shall maintain the security of all electronic records containing Client information. D. The Contractor shall maintain Client electronic case files in the State designated systems which will include (at a minimum): i. Copies of all correspondence regarding participant services; Page 40 of 60 ii. iii. iv. v. Copies of all attendance reports and activity calendars; Chronological detailed case notes that will enable a reviewer not familiar with the case to ascertain the current status of the Client as well as a history including, but not limited to phone calls to Clients, employers to verify job related payment points and other third parties, in person contacts with Clients, referrals, follow-up, and supportive services. Notes are to be completed the same day whenever possible, but no later than 24 hours following contact; Copies of Verification of Employment (VOE)'s received from employers which can include pay stubs, employer written statement, etc. that validate placement and retention; and Copies of all plans for employment including Self Sufficiency Plan (SSP) and Assessment documents. 8.3 Outcome Based Payments The performance-based payment points system is outlined in Exhibit 3 to the Contract. Below are the rules and requirements the Contractor shall follow in order to earn any performance based payments under the points system. A. The Contractor shall submit supporting documentation, as agreed upon by State, to substantiate billings for the payment points. B. All claims must be submitted within three (3) billing cycles in order to be considered for payment after the payment point has been achieved. C. In order for placement and any other subsequent payment points to be valid, orientation must have taken place within the prior twelve months. D. The Contractor shall ensure that all claims, including relevant documentation, can be drilled down to the Client level for audit purposes. Documents used to support the claim must be indexed to the Client through the case number and/or RID. E. There shall be a one-time discrepancy rebuttal bill for claims initially denied, and must occur within 30 days of the initial denial date. DFR’s decision regarding the rebuttal is final. F. A Request for Earnings form, which forecasts earnings and projected work hours to determine eligibility, will not be used to validate IMPACT claims billed for placement, high wages and retention payment points except in cases where the earnings section has been completed, which requires the individual enters into unsubsidized employment of at least 20 hours per week at the Federal Minimum Wage or higher for at least two consecutive weeks. SF55695 (Request for Earnings) may be used when - earnings section has been completed and meets conditions as noted in this section. G. For each payment point claimed, the Client shall meet the compliance requirements outlined in Section 2545.00.00 NON-COMPLIANCE DEFINITION of the State Policy Manual. Client is considered noncompliant on the date that he/she does not meet the requirements in Section 2545.00.00 and the Contractor shall not submit claims for individuals that have been sanctioned (or should have been sanctioned) for failure to comply more than 30 days from the point of noncompliance. H. On the date an individual voluntarily withdraws from the IMPACT program, the Contractor is only entitled to payment points that have already been attained by that individual. At the point of voluntary withdrawal, contractor shall not contact the individual or submit an invoice for payments after the date of withdrawal. Page 41 of 60 I. a. Exception to Clause H: In a documented event where the contractor has worked with a Client and the Client is compliant and Voluntary Withdrawal is because of employment, Contractor may invoice for the Payment Point only if all other requirements have been met. Each Payment Point is reviewed separately and based on its own merit of meeting the requirements. Payment of one payment point does not entire Contractor payment of a subsequent payment point. Client must remain in compliance with IMPACT. Clients that are marked as noncompliant with no further participation in the program would not be allowable for subsequent billings after the point of non-compliance. Example: Client completes Orientation, is meeting program requirements, begins Job Search, and fails to turn in Job Search worksheets which results in non-compliance. Client then gets a job after being marked as non-compliant. Placement would not be an allowable billing nor would any further billings be allowable. Each Payment Point is reviewed separately and based on its own merit of meeting the requirements. Payment of one payment point does not entire contractor payment of a subsequent payment point. 10. Project Management 10.1 Transition from Incumbent Contractor shall prepare a master work plan for the transition from the Incumbent provider to the awarded Contractor’s solution within 60 days of the projected go-live date of the Contract. Such work plan will require State approval prior to implementation. At a minimum: A. The Contractor’s work plan must describe all tasks, deliverables, schedules, task dependencies and identification of resource requirements for the Contract, including but not limited to the transition of services from the Incumbent and assumption of custody of the Document Warehouse. B. The Contractor’s work plan must include the proposed start and completion dates for each deliverable. C. The Contractor’s work plan must detail all tasks requiring FSSA and other State resources (including but not limited to the Indiana Office of Technology), summarize the proposed use of FSSA and other State resources, and state any assumptions regarding anticipated involvement of these resources. Further, the Contractor must agree that it is Contractor's obligation to identify its task dependencies on FSSA resources or tasks, and that the Contractor retains the final responsibility for performance of its obligations including the quality of the deliverables. D. FSSA shall have 10 business days to review the first draft of the plan and 5 business days to review any revised drafts. 10.2 Steady-State Operations 10.2.1 Project Management Approach Within 60 days of the commencement of duties under the Contract, the Contractor shall provide a detailed project management plan which explains how the Contractor shall ensure the timely delivery of quality services to the State. This project management plan will be subject to State review and approval. Such proposal shall: Page 42 of 60 A. Describe the overall project management approach, including but not limited to planning, organizing, and managing Contractor staff and activities throughout the term of the Contract in a manner that ensures the smooth administration and completion of deliverables. B. Describe what project management tools, if any, will be used by the Contractor. C. Detail Contractor’s approach to promoting teamwork, facilitating effective communication, and supporting collaborative efforts among the Contractor, any subcontractors, other vendors, FSSA, and FSSA designees. D. Describe the Contractor’s plan to work collaboratively with the FSSA to address stakeholder needs and any issues that require resolution. 10.2.2 Communication Plan Within 60 days of the commencement of duties under the Contract, the Contractor shall provide a communication plan describing how the Contractor will work with FSSA and other stakeholders to facilitate communication and coordination, including but not limited to: A. Proposed meetings, their attendees and cadence; B. Periodic written updates; and C. Proposed team members who will serve as key points of contact for certain functions (Project Manager, etc.) 10.2.3 Issue Resolution Plan Within 60 days of the commencement of duties under the Contract, the Contractor shall provide a plan to identify, track, and resolve issues which may arise between Contractor and the State in the performance of duties under the Contract. Such plan should include: A. Any trouble-shooting tools and techniques that will diagnose issues with networks, services, equipment, software, and data; B. The approach and metrics to measure the success of its issue resolution efforts; C. FSSA’s right to approve all issue resolution plans and procedures prior to implementation; and D. This Issue Resolution Plan shall be subject to State review and approval. 11.0 Staffing 11.1 Project Staffing A. The Contractor shall perform and manage human resource functions, including but not limited to the hiring, discipline, performance appraisals, process time-off requests, monitoring staff time, and staff development for its team. B. The Contractor shall provide human resource information to include personnel policies, payroll, procedures, and benefit administration. C. The Contractor shall provide payroll and time reporting services for Contractor staff. Page 43 of 60 11.1.1 Staff Training A. The Contractor shall deliver a training calendar containing scheduled trainings for IMPACT staff to the State by the 1st day of the calendar month for the next month. Any training additions or deletions to the submitted schedule are to be delivered to the State via a revised calendar as soon as they are scheduled or deleted. Delivery is to be made to the EMPState_Review@fssa.in.gov inbox and to the IMPACT Policy Manager. B. The Contractor shall ensure that Employment and Training staff has completed the requisite training requirements before commencement of services under the Contract. These include: i. Complete State/FSSA training as required (such as CMI Rights Training); ii. Provide information and, as appropriate, in-service training on topics including but not limited to domestic violence, Indiana Department of Workforce Development services, Indiana Vocational Rehabilitation services, and Mental Health provider services; and iii. Develop and deliver new and experienced worker IMPACT training, including but not limited to: a) Delivering formal IMPACT and GTW policy and procedure training within 30 days of staff person hire or internal promotion date; b) Providing information related to negative findings from the State, State Third Party Designee, and Internal QA findings related to IMPACT and GTW policy and procedures; c) Providing refresher training when deemed appropriate by State and Contractor; d) Providing training on new IMPACT and GTW policies and procedures as needed prior to the scheduled implementation of the policy or procedure; and e) Providing special programmatic training and/or Curriculum Development as requested and agreed upon by State and Contractor. C. The Contractor shall coordinate use of training facilities with the State and State designated vendor(s), including computer access for staff trainees during classroom training if applicable. D. The Contractor shall work with the State and State designated vendor(s) to obtain access to the training environments for those systems used by Contractor staff including but not limited to the System of Record. E. Upon request, the Contractor shall submit all IMPACT and GTW related staff training materials to the State or State's third party designee for review at least 30 days prior to planned training dates, or as agreed upon by State and Contractor, and obtain material approval prior from the State to conducting training. F. The Contractor shall coordinate with the State and State designated vendor(s) to set up IMPACT and GTW staff training material online in a learning management environment that will allow staff to access and review delivered training material. G. The Contractor shall incorporate the use of the State designed online performance tool in training its employees. H. The Contractor shall provide and collect written training experience evaluations at the end of each training class for its employees. For those scheduled for a partial class, the Contractor shall provide an evaluation at the end of the scheduled portion. Page 44 of 60 I. J. The Contractor shall submit completed evaluations to the State upon request. Upon request, the Contractor shall meet with and respond to training-related assessments and recommendations delivered by the State or State designated third party vendor. K. Upon policy changes, the Contractor shall update and distribute the Work Instructions to all staff members within 7 days of update and approval. 12 Security and Risk Mitigation 12.1 Risk Management and Mitigation Within 60 days of the commencement of duties under the Contract, the Contractor shall provide a Risk Management and Mitigation plan, including its process for documenting and reporting risks and risk status to the State. This plan should include: A. Contractor’s plan to identify potential risks and develop recommended steps to mitigate those risks; B. Contractor’s plan to track and manage the implementation of any mitigating steps; C. Any proposed tool(s) to track, manage, and report risks and to facilitate the Contractor’s Risk Management Plan; D. The benefits of the recommended risk management and mitigation process to FSSA; E. That FSSA reserves the right to retain access to all of the Contractor’s risk management tools and reports; and F. The State reserves the right to approve the Contractor’s Risk Management Plan, process, and tools. 12.2 Ensuring Data Security Within 60 days of the commencement of duties under the Contract, the Contractor shall provide Contractor’s plan to secure and protect the State’s data, including but not limited to private Client information. Such plan should include: A. Steps taken by Contractor to ensure that private Client information is not used, disclosed or maintained in a manner not in accordance with the law and best practices; B. Contractor’s policy for the secure destruction of information; C. The security and privacy features of any proposed technology; and D. How the Contractor’s solution will use the State’s Active Directory repository to authenticate users, where applicable. The proposal must also describe the architecture to authorize users within the system. Page 45 of 60 EXHIBIT 2 Contract Financials RFP17-060 - Employment and Training Services Rate Card 5 Process failure to attend Orientation/Initial Appointment (AJS, TANF, SNAP, Gateway To ork Estimated Annual Volume Estimated Annual Total .48 74669 855.12 .00 59 490.90 Meeting Federal Requirements to be Countable in Work Participation Rate Numerator Due to Em AN . 30 hours or more of Estimated Annual Volume Estimated Annual Total 16.07 4750 76 332.50 Meeting Federal Requirements to be Countable in Work Participation Rate Numerator Due to Activities AN .Activities ma include less than 30 hours Estimated Annual Volume Estimated Annual Total ation AJS TANF SNAP Ga To Work Estimated Annual Volume Annual Total 18436 088 951.80 Estimated Annual Volume Annual Total 10000 58 500.00 ient Job Placement TANF SNAP Gat To Work Estimated Annual Volume Annual Total 4476 1 49 923.00 tJob Retention TANF SNAP Ga To Work 31 da Estimated Annual Volume Annual Total 2704 1 434 661.28 tJob Retention TANF SNAP Ga To Work - 60 da Estimated Annual Volume Annual Total 2089 1 050 014.96 tJob Retention TANF SNAP Ga To Work - 90 da Estimated Annual Volume Annual Total 1621 24 246.59 ient Job Retention TAN - 180 Estimated Annual Volume Annual Total 199 tJob Retention TAN - 365 Estimated Annual Volume Annual Total 113 Assessment Form ANF SNAP Gatewa to Work Estimated Annual Volume Annual Total 20000 140 000.00 Attainment ofCredentiaI ANF SNAP Gat toWork Estimated Annual Volume Annual Total 13 Services TANF SNAP - Estimated Annual Volume Annual Total 8.5 Services Percenta Mark TANF SNAP Gat to Work Estimated Annual Volume Annual Total 1 Page 46 of 60 EXHIBIT 3 Pay for Performance Standards It is the State’s primary goal to ensure that the Contractor is accountable for delivering services as defined and agreed to in the Contract. This includes, but is not limited to, performing all items described in the Scope of Work, Exhibit 1 to the Contract, completing all deliverables in a timely manner described in the Scope of Work, and generally performing to the satisfaction of the State. Failure to perform in a satisfactory manner may result in corrective actions and the performance withholds described below. It is the intent of FSSA to remedy any non-performance through specific remedies at no additional cost to the State. In the event that the Contractor fails to meet requirements set forth in the Contract, the State will provide the Contractor with a written notice of non-compliance and may require any of the corrective actions or remedies described in the Contract. A. Each month, the Contractor shall withhold fifteen percent (15%) of the Contractor’s monthly invoice amount pending verification of the Contractor’s performance against the Performance Metrics described in ‘Table 1’ below. B. Following the State’s verification that Contractor successfully met the requirements for all Performance Metrics in a given month, the Contractor may invoice the State for the withheld funds described in clause A. above with the subsequent month’s invoice (for example, if Contractor successfully meets the Performance Metrics requirements for January, and verification is completed in February, the 15% of the January invoice that was withheld can be claimed with the February invoice). If the State determines that the Contractor met fewer than all Performance Metrics in a given month, clauses C. or D. shall control. C. If Contractor fails to meet the requirements for one or two Performance Metrics in a given month, the Contractor must submit a Corrective Action Plan (CAP) to the State within fifteen (15) calendar days following the documentation of failure to meet the Metric(s). The State shall review and make reasonable efforts to approve the CAP within ten (10) calendar days of the CAP being received. The State will continue to withhold funds for the month in which the Contractor failed to meet the Metric(s) and subsequent months until Contractor demonstrates that the CAP has been implemented and further successfully meets all Performance Metrics for two consecutive months following the implementation of the CAP. Following verification that Performance Metrics have been met for two consecutive months, Contractor may invoice the State for release of all withheld funds, subject to the exception noted in clauses D. and E. below. D. Subject to Sections F and H, if the Contractor fails to meet two (2) or more Performance Metrics in any given month, the State shall permanently retain the 15% withheld for that month’s invoice because the Contractor’s failure to meet these Performance Metrics will result in the diminished overall value of services delivered by the Contractor under this Contract. If the Contractor fails to meet the same Performance Metric for three consecutive months, the funds withheld for those months shall be permanently retained by the State because the Contractor’s failure to meet these Performance Metrics will result in the diminished overall value of services delivered by the Contractor under this Contract. E. Verification of Contractor’s success or failure to achieve Performance Metrics may be performed by the State or a designated State contractor, including but not limited to the State’s Operational Verification and Validation (OV&V) vendor. F. The State acknowledges and agrees that Contractor is reliant upon the accuracy and efficiency of the State’s reporting system and that any inadequacies of that reporting system may prevent Contractor from fully and accurately capturing sufficient data to properly invoice the State. The State further acknowledges and agrees that it is solely responsible for the operation of its reporting system and therefore assumes the full risk of any failures, inefficiencies, delays, or inaccuracies associated with the reporting system. The State will not consider the Contractor as having failed to meet a Performance Metric if the State and Contractor agree that the information needed to validate Contractor’s performance of a Performance Metric is not available or accurate because of a reporting system error or inadequacy. G. If a report listed in Table -1 below is discontinued at the State’s request, the associated Performance Metric shall not be enforced or factored into withhold calculations. Page 47 of 60 H. A CAP can also be triggered if the State determines that the Contractor is not performing to the reasonable satisfaction of the State, has missed Service Levels and/or KPIs, or has not completed any deliverable in a satisfactory or timely manner according to the agreed upon Performance Metrics. All CAPS must be submitted to the State within fifteen (15) calendar days following the documentation of failure to meet expectations. At a minimum, the CAP shall address the causes of the deficiency, the impacts, and the measures being taken and/or recommended to remedy the deficiency, and indicate whether the solution is permanent or temporary. It must also include a schedule showing when the deficiency will be remedied, and for when the permanent solution will be implemented, if appropriate. The nature of the corrective action(s) will depend upon the nature, severity and duration of the deficiency, and repeated nature of the non-compliance. The State shall review and make reasonable efforts to approve the CAP within ten (10) calendar days of the CAP being received. Notwithstanding the forgoing, the State shall not delay approval in a way that would materially impede the timeliness or effectiveness of the CAP. I. In the event Contractor believes it has not met any Performance Metric due to mitigating circumstances, which shall include, but are not limited to, reasonable delays in implementation not attributable to Contractor’s negligence or willful misconduct Contractor may reques t a waiver from the State of all or part of any assessment or impact attributable thereto. In the event that the State grants Contractor’s waiver request, the above provisions regarding a withhold will be disregarded. a. Contractor shall submit any and all Performance Metrics waiver requests in writing within the greater of fifteen (15) days of the last month in which the waiver period is being requested, or such longer time as may be necessary to determine whether or not Contractor has achieved a Performanc e Metric and the State shall provide a written response within fifteen (15) days. Page 48 of 60 Metric # 1 Metric Subject Metrics - WPR (Cognos) Performance Area All Family adjusted WPR (50% - caseload reduction credit) Due 70 days after report month 2 ICES/Data Warehouse Meet all-Family WPR or have a WPR of 30%, whichever target is higher, without applying the caseload reduction credit. 3 ICES/Data Warehouse Penalty (implement a Performance Improvement Plan) could be invoked if not met for 3 consecutive months. Due 70 days after report month. Meet monthly Two Parent Family WPR or have an adjusted WPR of 90% - Caseload reduction credit, whichever target is higher. Penalty (implement a Performance Improvement Plan) could be invoked if not met for 3 consecutive months. Due 70 days after report month. 90% weekly contact with clients with known employment during the first 31 days; report monthly. 4 Weekly Contact, SelfReported 5 Monthly Contact 95% monthly contact with client with known employment after the first 31 days. 6 Call Center 7 Call Center The monthly average wait time for calls routed to Gateway to Work waiting queue shall not exceed three (3) minutes. The monthly lost call (abandonment) rate shall not exceed seven percent (7%). Table – 1 Definitions: “Known employment” refers to employment entered in the state system of record. “Contact” is defined as including phone, in person, email, text, or automated dialer and documented in the state system of record. Page 49 of 60 EXHIBIT 4 Food and Nutrition Service Reporting Measures MD mun are; 15613 Rules and Regulations Federal Register Vol. 81, No. 57 Thursday, March 24, 2016 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Parts 271 and 273 RIN Supplemental Nutrition Assistance Program (SNAP): Employment and Training Program Monitoring, Oversight and Reporting Measures AGENCY: Food and Nutrition Service, USDA. ACTION: Interim rule. SUMMARY: Section 4022 ofthe Agricultural Act of 2014 requires that, not later than 18 months after the date of enactment, USDA [the Department) shall issue an interim final rule implementing the amendments made by subsection Pursuant to that requirement, this rule implements the employment and training provisions of section 4022(a)(2) of the Agricultural Act of 2014. Section of the Agricultural Act of 2014 provides the Department additional oversight authority of State agencies? administration of the Supplemental Nutrition Assistance Program (SNAP) program. In addition, it requires the Department to develop national reporting measures and for State agencies to report outcome data to the Department. It also requires that the Department monitor and assess State agencies? programs, and provides the Department with the authority to require State agencies to make improvements to their programs as necessary. Finally, State agencies are required to submit reports on the impact of certain components and, in certain States, the services provided to able-bodied adults without dependents DATES: Effective Date: This rule will become effective May 23, 2016. Implementation Date: Upon clearance by OMB of the associated information collection requirements, States shall include reporting measures in the State Plans for the first full fiscal year that begins not earlier than September 20, 2.0 16. Comment Date: Written comments must be received on or before May 23, 2016. ADDRESSES: The Food and Nutrition Service invites interested persons to submit comments on this interim rule. Comments may be submitted by any of the following methods: Federal eHulemaking Portal: Preferred method. Go to http:// follow the online instructions for submitting comments. FAX: Submit comments by facsimile transmission to [703) 305?2486, attention: Moira Johnston, Director, Office of Employment and Training, SNAP. Web site: Go to http:// Follow the online instructions for submitting comments through the link at the SNAP Web site. Email: Send comments to fns.udsa.gov. Include Docket ID Number Supplemental Nutrition Assistance Program: Employment and Training Employment and Training Program Monitoring, Oversight and Reporting Measures Interim Rule in the subject line of the message. Mail: Send comments to Moira Johnston, Director, Office of Employment and Training, SNAP, FNS, US. Department of Agriculture, 3101 Park Center Drive, Room 806, Alexandria, Virginia 22302. Hand delivery or Courier: Deliver comments to Ms. Johnston at the above address. All comments on this interim rule will be included in the record and will be made available to the public. Please be advised that the substance of the comments and the identity of the individuals or entities submitting the comments will be subject to public disclosure. The Department will make the comments publicly available on the Internet via FOR FURTHER INFORMATION CONTACT: Moira Johnston, Director, Office of Employment and Training, at the above address or by telephone at [703) 305? 2515. SUPPLEMENTARY INFORMATION: Page 50 of 60 What acronyms or abbreviations are used in this supplementary discussion? In the discussion of the provisions in this rule, the following acronyms or other abbreviations stand in for certain words or phrases: Acronym, Phrase abbreviation, or symbol Able-Bodied Adults Without ABAWDs. Dependents. Code of Federal Regula- CFR. tions. Employment and Training Federal Register .. FR. Federal Fiscal Year .. FY. Food and Nutrition Act of the FNA. 2008, as amended. Food and Nutrition Service FNS. Food, Conservation and En- FCEA. ergy Act of 2008 (Pub. L. 110?246). Secretary of the US. De- Secretary. partment of Agriculture. Section (when referring to Federal Regulations). Supplemental Nutrition As- SNAP. sistance Program. US. Department of Agri- the Depart- culture. ment. US. Department of Labor DOL. Workforce Innovation and WIOA. Opportunity Act. ackgro an What is the SNAP program? Section of the FNA requires that each State agency implement an program designed to help members of SNAP households gain skills, training, employment, or experience that increase participants? ability to obtain regular employment. State agencies may include one or more ofthe following components in their program: Job search, job search training, workfare, work experience, work training, basic education programs, self- employment training programs, job retention services, and other programs as approved by the Secretary. State agencies submit plans that outline planned components and budgets to FNS for approval annually. How is SNAP funded? The Department funds SNAP programs through $90 million in grants and an additional $20 million in grants for State agencies that pledge to serve all ABAWDs at-risk of losing eligibility due to time-limited 15614 Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations participation. In addition to these grants, the Department reimburses State agencies for 50 percent of approved administrative costs beyond the grant and for 50 percent of allowable participant expenses, such as transportation and dependent care. Is participation in SNAP mandatory? SNAP work registrants not otherwise exempted by the State agency must participate in a SNAP component if referred by the State agency. programs may be mandatory or voluntary. In a mandatory program, failure to comply without good cause, results in disqualification from SNAP for a minimum sanction period which can vary depending upon State policy. Except in the case of permanent disquali?cation, an individual may resume SNAP participation after the sanction period expires and/or the individual complies with work requirements [whichever is later). State agencies may also serve voluntary participants. Voluntary participants are not subject to disqualification from SNAP for failure to comply with a SNAP component. The Agricultural Act of 201 4 This interim rule implements section ofthe Agricultural Act of 2014. Even though the reporting requirements ofthis rule must be implemented by the beginning of ?rst full fiscal year 180 days after publication of this rule, the Department is soliciting comments on this rule. The Department believes that it would benefit from the public?s comments before publishing a final rule. Why is the Department publishing this interim rule rather than a proposed and then final rule? Section ofthe Agricultural Act of 2014 requires that ?Not later than 18 months after the date of enactment ofthis Act, the Secretary shall issue interim ?nal regulations implementing the amendments made by subsection What does the Agricultural Act of 2014 require in regards to SNAP Section 4022 ofthe Agricultural Act of 2014 amends section ofthe FNA, to provide that: The Department develop standardized reporting measures for programs; 0 States agencies? annual plans must identify additional reporting measures for each component that is intended to serve at least 100 participants a year; 0 The Department monitor State programs and assess their effectiveness; 0 State agencies submit an annual report on their programs that includes the number of participants who have gained skills, training, work, or experience that will increase their ability to obtain regular employment; 0 The Department may require a State agency to make modifications to its plan if it determines that the State agencies? outcomes are inadequate. These provisions will provide the Department with more information about the States with effective SNAP programs and promising practices, and help identify those States that need technical assistance to improve their programs. Section 4022 ofthe Agricultural Act of 2014 also requires the Department to carry out up to 10 SNAP pilot projects and to evaluate the SNAP program nationally at least once every ?ve years. This interim rule does not address these last two issues. Reporting Measures What does Section 4022(a)(2) ofthe Agricultural Act of 2014 require the Department to do in developing national reporting measures? Section amended section and (ii) ofthe FNA to require the Department to develop national reporting measures for States within the following requirements: 0 The Department, in consultation with the Secretary of Labor, must develop State reporting measures that identify improvements in the skills, training, education, or work experience of members of households participating in 0 The measures must be based on common measures of performance for Federal workforce training programs; and The measures must include additional indicators that re?ect the challenges facing the types of members of households participating in SNAP who participate in a specific component. Has the Department consulted with the Department of Labor in the development of this rule? Yes. In addition to consulting with and reviewing current performance measures, the Department examined and discussed the performance indicators included in WIOA [visit wioa/ for more information on this legislation). Page 51 of 60 What national reporting measures does this rule establish? After consultation with the DOL, the Department is establishing the following national reporting measures and requiring State agencies to report outcome data based on these measures. These reporting measures are similar to the performance indicators for the core programs in WIOA, but re?ect the intent ofthe Agricultural Act of 2014, the unique characteristics ofthe SNAP program and its participants, the required frequency of reporting, and how the Department will use the data. The reporting measures include: The number and percentage of participants and former participants who are in unsubsidized employment during the second quarter after completion of participation in The number and percentage of participants and former participants who are in unsubsidized employment during the fourth quarter after completion of participation in 0 The median quarterly earnings of all the participants and former participants who are in unsubsidized employment during the second quarter after completion of participation in and The number and percentage of participants that completed a training, educational, work experience or an on- the-job training component. What additional reporting measures does Section ofthe Agricultural Act of 2014 require that State agencies include in their plans? Section amended section of the FNA to require each State agency?s plan to identify appropriate reporting measures for each proposed component that serves a threshold number of participants of at least 100 per year. State agencies will report the outcome data in their annual reports to FNS. The Department has adopted 100 per year because this is consistent with the minimum in the Agricultural Act of 2014. The Department is particularly interested in receiving comments about the reporting measures themselves, as well as the appropriateness of this threshold. Because State agencies have broad flexibility in what components they offer and how they structure their activities, the Department is not prescribing national reporting measures for speci?c components. Instead, the Department encourages State agencies, in designing their component measures, consider the measures that are suggested in the Agricultural Act of 2014, which may include: Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations 15615 The percentage and number of program participants who received services and are in unsubsidized employment subsequent to the receipt ofthose services; The percentage and number of participants who obtain a recognized credential, including a registered apprenticeship, or a regular secondary school diploma or its recognized equivalent, while participating in, or within 1 year after receiving, services; 0 The percentage and number of participants who are in an education or training program that is intended to lead to a recognized credential, including a registered apprenticeship or on-the-job training program, a regular secondary school diploma or its recognized equivalent, or unsubsidized employment; 0 Measures developed by each State agency to assess the skills acquisition of employment and training program participants that reflect the goals of the specific employment and training program components ofthe State agency, which may include: 0 The percentage and number of participants who are meeting program requirements in each component ofthe education and training program ofthe State agency; 0 The percentage and number of participants who are gaining skills likely to lead to employment as measured through testing, quantitative or qualitative assessment, or other method; and The percentage and number of participants Who do not comply with employment and training requirements and who are ineligible under section and Other indicators approved by the Secretary. Is the Department required to approve State agencies? reporting measures for each component? Yes. FNS will work with State agencies to identify appropriate reporting measures for each component. State agencies must include the reporting measures for individual components in their plans, which must be submitted and approved by FNS on an annual basis. Will State agencies be required to report additional information on the characteristics of SNAP participants? The SNAP work registrant population, like the general SNAP population, is very diverse and faces a myriad of challenges to employment, such as measurable educational attainment and employment history, or intangibles such as substance abuse or mental health problems. The Department is interested in understanding the effectiveness of certain approaches with populations facing different barriers; however, this can be difficult to ascertain given that the complex nature of these challenges. The Department believes that to have a better understanding of the effectiveness of SNAP it must have a more complete picture ofthe population it is serving. The Department has very little detailed information on the characteristics of SNAP participants. There are no existing reporting requirements or other mechanisms to collect this information. Therefore, in order to better serve SNAP participants, this rule requires State agencies to report the following six characteristics for all participants. The report will include the total number and percentage of all participants who: 0 Are voluntary vs. mandator 0 have achieved a high schoolldegree [or GED) prior to being provided with services; 0 are speak English as a second language; 0 are male vs. female; and belong in the following age ranges: 16?17, 18?35, 36?49, 50?59, 60 01? older. For example, ifa State had 10,000 participants in a year, 2,000 of which were voluntary and 8,000 mandatory, these numbers would be reported along with the 20 and 80 percentages. State agencies currently collect most ofthis information as part ofthe application and it should be available through their eligibility systems or SNAP tracking systems. This will not require additional reporting on the part ofthe SNAP recipient. Section ofthe FNA, as amended by the Agricultural Act of 2014, requires that the national reporting measures developed by the Department include additional indicators that reflect the challenges facing the types of members of households participating in SNAP who participate in a specific employment and training component. What are these indicators and for which SNAP participants must State agencies report these indicators? Of the above six characteristics required to be reported of all SNAP participants, the Department has identified three that it believes are most important to understanding the challenges to employment faced by those SNAP participants and former participants who are included in Page 52 of 60 the four national reporting measures described above. These characteristics are: Voluntary or mandatory participation in those with low education attainment, and those who are ABAWDs. A participant may have more than one characteristic may be a voluntary participant who is also an ABAWD). The Department believes obtaining data on those participants and former participants included in the national reporting measures who have these three characteristics is critical to the development of effective strategies to serve these populations. Therefore, the rule requires that for each national reporting measure States must submit summary data that disaggregate the four national measures by the following three characteristics. 0 Individuals who are or were voluntary vs. mandatory participants; 0 participants having achieved a high school degree [or GED) prior to being provided with services; and 0 participants who are or were Thus, to illustrate, States will be required to report the total number and percentage of participants and former participants in unsubsidized employment during Q2 after participation in and the number and percentage of those participants who were mandatory and voluntary. If the State had 1,000 out of 10,000 participants and former participants employed in the second quarter following completion of [10 percent) and of the 1,000, 300 were voluntary and 700 were mandatory, these numbers would be reported along with the percentages. Furthermore, in addition to reporting the median quarterly earnings of all the participants and former participants, States will be required to report this outcome measure for the following subgroups: Voluntary participants, mandatory participants, those who have achieved a high school degree [or GED) prior to being provided with services, and ABAWDs. Are the SNAP reporting measures based on the performance indicators for core workforce programs included in WIOA established primary indicators of performance for the core programs related to employment, earnings, credential attainment/measureable skills gains as they relate to gaining/retaining employment, and serving employers. The SNAP reporting measures required by this rule are closely aligned With, but not identical to, those in WIOA. The variations can be attributed to: Difference in the required 15616 Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations frequency of reporting [the Agricultural Act of 2014 requires a single annual report whereas the WIOA proposed regulations would require quarterly reports and an annual report); difference in data needs; and (3) seeking a balance between value of information obtained and the burden of longer term tracking. FNS does not include a reporting measure for the effectiveness of serving employers or the number of participants that obtain credentials, in part because DOL and Department of Education are still in the process of developing this policy. In addition, because State agencies have broad ?exibility in what components they offer and how they structure their activities, the Department is not prescribing national reporting measures for specific components, like the percentage and number of participants who obtain a recognized credential, but the Department encourages State Agencies to consider such measures as described in ?What additional reporting measures does Section ofthe Agricultural Act of 2014 require that State agencies include in their plans?? DOL published proposed regulations regarding WIOA in the ?Workforce Innovation and Opportunity Act; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the One-Stop System Joint Provisions? proposed rule on April 16, 2015. The Department views DOL as the leader in employment policy and will look for ways to be consistent with any changes made to its performance measures in the final rulemaking. The Department is interested in comments pertaining to the variance between the WIOA performance indicators and the SNAP reporting measures. What will the Department do with the reported data? The Department Will use outcome data to monitor the effectiveness of SNAP programs. The Department will also share this information with policy makers, State agencies, and other stakeholders. In combination with the current data State agencies report to FNS regarding SNAP outcome data will help the Department identify programs and components that produce a higher number and percentage of participants that obtain unsubsidized employment. The Department will use the data on median earnings to evaluate the cost-effectiveness of programs and the components States have implemented. The Department will also use this data to assess and identify the most promising practices for State agencies that want to improve their SNAP programs. The Department will use the data on educational attainment in a similar way, while the data regarding the characteristics of participants will help the Department and States better understand the relative challenges different groups face. How often and what method will State agencies use to report to the Department? Pursuant to section ofthe FNA, as amended by the Agricultural Act of 2014, this rule requires State agencies to submit an annual report to FNS by January 1 of each year, to include outcome data on the reporting measures outlined above for the Federal fiscal year ending the previous September 30. FNS may specify a standard format for the annual report. What data and timeframes will an annual report include? Data will be measured within the fiscal year for which the State agency is reporting using the most recent data available during the reporting period for each measure and additional characteristics for the participants and former participants included in the reporting measures. Therefore, if an individual completed participation in in the fourth quarter of FY 2018, information from the second quarter of FY 2019 concerning their employment would be included in reporting for FY 2019, even if that individual was no longer participating in SNAP. Reporting for a fiscal year will include the characteristics of each participant that participated in during that fiscal year. Is there a minimum amount that an individual must earn in a quarter to be included in a reporting measure? No, there is no minimum amount of earnings from unsubsidized employment in a quarter for an individual to be included in a reporting measure. What other information must States include in the annual reports? States that have committed to offering all at-risk ABAWDs a slot in a qualifying activity and have received an additional allocation of funds as specified in 7 CFR must include in their annual reports the following information: The average number of individuals in the State who meet the conditions of The number ofindividuals to Whom the State offers a position in a program described in Page 53 of 60 The number of individuals who participate in such programs; and A description of the types of employment and training programs the State agency offered to at-risk ABAWDs, and the availability of those programs throughout the State. What does the Agricultural Act of 2014 require in terms of monitoring, evaluating and assessing States? programs? The Agricultural Act of 2014 amended section ofthe FNA to require the Department to monitor SNAP programs and assess their effectiveness in terms of preparing members of households for employment, including the acquisition of basic skills necessary for employment, and increasing the number of household members who obtain and retain employment subsequent to participation in The Agricultural Act of 2014 also amended section ofthe FNA to require that the Department evaluate State agencies? programs on a periodic basis to ensure: 0 Compliance with Federal program rules and regulations; 0 that program activities are appropriate to meet the needs of the individuals referred by the State agency to an program component; and 0 that reporting measures are appropriate to identify improvements in skills, training, work and experience for participants in an employment and training program component. How is the Department codifyng this provision? SNAP regulations at 7 CFR 275.3(a) already require NS to conduct management evaluation (ME) reviews of designated, or ?target?, areas of program operation each fiscal year. FNS identifies target areas each year based upon a number of considerations, including recent policy changes, risk to Federal funds, and risk to program access. For example, FNS may identify program access as an area that the regional offices are required to review in every State, and nutrition education as an area to be reviewed on an at?risk basis, as necessary. This affords FNS maximum flexibility to target its resources to those current areas of vulnerability or agency priorities. In past years, FNS has not required its regional offices to perform an ME of each State agency?s program; many operate very small job-search only programs. However, FNS has required its regional offices to review programs in States that operate third party matching programs, or that have Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations 15617 combined Federal and State budgets over a certain threshold. As part of its general monitoring and oversight responsibilities, FNS will meet the requirement of the FNA by continuing to perform MEs of States? programs, but will also continue to establish in guidance which target areas to focus on each year. In addition, through its current authority, FNS is required to review and approve State agencies? plans and budgets. Through this process, FNS will ensure that individual components are structured to meet the needs of participants and that the reporting measures for individual components with more than 100 participants, required by this rule, are appropriate to measure the impact of the components on participants. Does the Department have authority to require modifications to State agencies? programs? Yes. Section ofthe FNA, as amended by the Agricultural Act of 2014, gives the Department the authority to require a State agency to make modifications to its SNAP plan to improve outcomes if the Department determines that the outcomes are inadequate. Why are most of the reporting measures focused on program outcomes? The Government Performance and Results Act of 1993 requires that performance indicators be used to measure the outcome of government programs. The national reporting measures in this rule will provide data that be used to evaluate the effectiveness of programs in moving SNAP recipients toward self- sufficiency. Additionally, the USDA Office of Inspector General performed an audit of the SNAP program and, in its ?nal report, entitled ?Food Stamp Employment and Training Program? released April 29, 2008, concluded that the data to evaluate the SNAP program?s impact was lacking. The chief recommendation of this audit report was that FNS establish reporting measures for the SNAP program and require State agencies to submit outcome data, which FNS could then use to determine whether the program improves employability and helps participants prepare for or obtain jobs. FNS agrees with this recommendation and, through this rule, is establishing standardized reporting measures that capture the impact of programs. As noted above, FNS will use data to help identify the most effective programs and best practices, and will share this information with State agencies looking to improve or expand their programs. Do State agencies already have reporting measures and outcome data? Currently, thirty-six State agencies have reporting measures and report program outcome data in their plans. State agencies use a variety of reporting measures, and the outcome data reported cannot be compared or summarized on a national level. Additionally, other work programs, such as those funded under the Workforce Innovation and Opportunity Act and the Wagner-Peyser Act (WPA), require State agencies to track, collect, and report outcome data. The measures in this rule are designed to be similar to the common measures used by these other work programs. The Department recommends that State agencies consult with State workforce and other agencies on data collection strategies and technical requirements. For reporting purposes, who is considered an participant? A SNAP applicant or recipient who is placed in and begins an component is considered a ?participant? for reporting purposes. participants who are placed in a component but do not show up for the first training appointment will not be counted in the base of participants for reporting measures. Individuals that complete an component are also considered to be participants for reporting purposes, even if they are no longer participating in SNAP. The Department recognizes that some State agencies provide services to SNAP participants who are under-employed and it does not wish to discourage this practice. As such, State agencies may include participants who are already employed as countable participants, if placed in a component. Should voluntary participants be counted as well as mandatory participants? Yes. State agencies must count all participants, both mandatory and voluntary, in the base for reporting measures. The Department recognizes that some State agencies have shifted the focus of their programs to voluntary participants because these participants are often more motivated to work and seek training that will make them more employable. The interim reporting measures will re?ect the effectiveness of the program for both mandatory and voluntary participants. Page 54 of 60 What is meant by unsubsidized employment? Unsubsidized employment means the participant does not receive wages subsidized by a Federal, State or local government program, such as the TANF subsidized employment program or a SNAP work supplementation program. This is consistent with the definition of unsubsidized employment used by other Federal work programs. Participants who enter unsubsidized employment may still be receiving job retention services such as transportation reimbursements and dependent care. The definition of unsubsidized employment is not limited to jobs with paid benefits, such as health care coverage. Although the Department recognizes the value of such benefits for SNAP households, it would add complexity to data collection and the Department believes it is not an essential reporting requirement for the purpose ofthe interim rule. What is meant by ?median? quarterly earnings? This rule requires that State agencies report the median average quarterly earnings for all participants who had earnings from unsubsidized employment in the second quarter following completion of Median earnings will capture wage levels, and is consistent with the similar DOL reporting measure under WIOA. The ?median? is determined by ranking participants? incomes from lowest to highest and identifying the middle income amount so that there are an equal number of incomes higher and lower. The median income is the amount in the middle?half the income amounts are higher, and half are lower. For example, for three participants earning $1,000, $1,500 and $3,500, the median income is $1,500 even though the average [or mean] would be $2,000. Using the median income can provide a more meaningful measure since it shows the halfway point, rather than the average, which can be significantly in?uenced by the larger incomes at the top or very small incomes at the bottom of the scale. Will 100 percent grants be affected by the reported measures data? No. Outcome data will not affect Federal 100 percent grant funding for programs. However, the Department retains the authority at to consider outcome data as part ofthe scope of impact for a State?s program when evaluating requests for additional 100 percent funds. 15618 Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations How may States fund the collection and reporting of outcome data? State agencies may use administrative funds provided by and to pay for development of reporting systems as necessary. administrative funds may also be used to meet staffing requirements that result from reporting measure tracking, the cost of follow-up with participants and other aspects ofthe measures. Will the Department consider unemployment rates when evaluating outcome data? The Department will not factor unemployment rates into the raw outcome data. Reporting measures are meant to re?ect whether programs are effective in moving participants toward employment and self- sufficiency. However, the Department will consider unemployment rates together with other important factors when looking at the unique challenges SNAP participants face. Should State agencies count workfare and work experience as unsubsidized employment? No. Workfare and work experience are defined as components at section ofthe FNA, and participation in these components is captured in the Currently, many State agencies offer workfare and work experience as components to provide participants with experience or training that will move them into employment. As State agencies already report these activities on the as components, the Department will not consider placement in such activities as unsubsidized employment to be included in the reporting measures. Will the Department verify this data? The Department will not verify this information on a regular basis. However, FNS will review data collection methods and verify data as part of the ME review of States? programs. This will help to ensure that reported data is accurate. Procedural Matters Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits [including potential economic, environmental, public health and safety effects, distributive impacts, and equity]. Executive Order 13563 emphasizes the importance of quantifying both costs and bene?ts, of reducing costs, of harmonizing rules, and of promoting ?exibility. This interim rule has been designated a ?significant regulatory action,? although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by the Office of Management and Budget Consistent with the requirements of Executive Orders 12866 and 13563, a Regulatory Impact Analysis was developed for this interim rule. Regulatory Impact Analysis As required for all rules that have been designated as signi?cant by OMB, a RIA was developed for this interim rule. The RIA for this rule was published as part ofthe docket to this rule on The following summarizes the conclusions of the regulatory impact analysis. Need for Action: This interim rule implements requirements for State agencies to report outcome data for SNAP programs as mandated by Section 4022(a)(2) ofthe Agricultural Act of 2014. The interim rule establishes five separate reporting measures and requires State agencies to report annually outcome data to monitor the effectiveness of programs. State agencies are also required to identify appropriate reporting measures for each proposed component that serves a threshold number of participants of at least 100 a year. The reporting measures for these components will be identified in State agencies? plans and the outcome data will be reported to FNS in State agencies? annual reports. Bene?ts: Benefits of this action include better data to inform policy makers regarding means to improve effectiveness, ultimately benefiting SNAP participants. National reporting measures will allow State and Federal program managers and policy makers to strategically plan on program tactics that will result in improved employment outcomes. Uniform reporting measures for programs will potentially benefit SNAP applicants and recipients by providing data to help evaluate what works in SNAP and share best practices from those programs. Costs: FNS estimates that the costs will include one-time capital costs for developing new or modifying existing data collection systems for programs, additional reporting burden for collecting and reporting data for the required reporting measures, and, for Page 55 of 60 those States that need to develop new systems, annual operating and maintenance costs for those systems. FNS anticipates minimal burden to a small number of low-income families and minimal, if any, impact on program participation. FNS anticipates that some costs will be paid for using the existing federal grant money States receive to operate State funds spent in excess of the grant are reimbursed at a 50 percent rate by the Federal government. Effect on State Agencies: The Department has estimated that the effect on State agencies will be two-fold: First, a one-time capital cost for developing new or modifying existing data collection systems for programs; and second, a reporting burden for collecting and reporting data for the required outcome measures. Those States that need to develop new systems may also incur annual operating and maintenance costs. Thirty-six State agencies currently have reporting measures and collect outcome data. However, the interim rule requires the addition of several data elements that none of these States are currently collecting. While it is expected that, in the first- year, State agencies will expend time and effort to establish reporting systems, the ongoing burden as shown below in the Paperwork Reduction Act section of the preamble is relatively moderate? about one and one-half staff-month per State. ffect on Low-Income Families: Establishing reporting requirements that measure outcomes will ultimately allow State agencies to better serve low- income populations by providing them with services that lead to longer- term unsubsidized employment opportunities. In addition, the Department estimates that the burden of the rule on low-income families will be minimal. A small number of participants may face additional reporting burden due to the need to contact these individuals to track outcomes that are not available through existing data sources. Participation Impacts: The Department estimates that the impact on SNAP participation will be minimal. Establishing reporting requirements that measure outcomes will allow State agencies to better serve low-income populations by providing them with services that lead to longer-term unsubsidized employment opportunities. Civil Rights Impact Analysis The Department has reviewed this interim rule in accordance with Departmental Regulation 4300?4, ?Civil Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations 15619 Rights Impact Analysis,? to identify any requirements that may have the purpose or effect of excluding, limiting, or otherwise disadvantaging any group or class of persons on one or more prohibited bases. After careful review of the rule?s intent and provisions, and the characteristics of SNAP households and individual participants, the Department has determined that this rule will not have a disparate impact on any group or class of persons. The interim rule will require State agencies to collect and report outcome data on SNAP programs and will not change work requirements or impact the population subject to work requirements. The Department specifically prohibits the State and local government agencies that administer the Program from engaging in actions that discriminate based on race, color, national origin, sex, religious creed, age, disability, and political beliefs. nondiscrimination policy can be found at 7 CFR The interim rule does not change these requirements. egul atory Flexibility A ct The Regulatory Flexibility Act (5 U.S.C. 601?612) requires agencies to analyze the impact of rulemaking on small entities and consider alternatives that will minimize any significant impacts on small entities. Pursuant to that review, it is certified that this interim rule will not have a significant impact on small entities. The provisions ofthis interim rule apply to State agencies, which are not small entities as defined by the Regulatory Flexibility Act. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 Public Law 104?4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, tribal governments and the private sector. Under Section 202 ofthe UMRA, the Department generally must prepare a written statement, including a cost/ benefit analysis, for rules with Federal mandates that may result in expenditures to State, local, or tribal governments in the aggregate, or to the private sector, of$100 million or more in any one year. When such a statement is needed for a rule, Section 205 ofthe UMRA generally requires the Department to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective or least burdensome alternative that achieves the objectives of the rule. This interim rule contains no Federal mandates (under the regulatory provisions of Title II ofthe UMRA) for State, local and tribal governments or the private sector of$100 million or more in any one year. Thus, the rule is not subject to the requirements of sections 202 and 205 of the UMRA. Executive Order 12372 SNAP is listed in the Catalog of Federal Domestic Assistance under No. 10.551. For the reasons set forth in the final rule in 7 CFR 3015, Subpart and related Notice (48 FR 29115), the Program is included in the scope of Executive Order 12372, which requires intergovernmental consultation with State and local of?cials. Federalism Impact Statement Executive Order 13132, requires Federal agencies to consider the impact of their regulatory actions. Where such actions have federalism implications, agencies are directed to provide a statement for inclusion in the preamble to the regulations describing the agency?s considerations in terms ofthe three categories called for under section of the Executive Order 13132. This rule does not have Federalism impacts. Prior Consultation With State Officials Currently, the Department, through FNS, has encouraged State agencies to establish reporting measures and to report outcome data in their State plans. FNS informally consulted with State agencies to identify what reporting measures and outcome data they collect in the absence of required reporting measures. An informal review of State agencies in FY 2007 showed that twenty-three State agencies had reporting measures and gathered outcome data on the number of participants who entered employment. This review revealed wide variability in how State agencies? aggregate data, how employment was defined, and whether a direct link to participation in was established. FNS reviewed FY 2013 State agency plans and found that thirty-six State agencies track the number of participants that enter employment. The interim rule will standardize the reporting measures that State agencies use and what outcome data State agencies report. Nature ofConcerns and the Need To Issue This Rule As modified by the Agricultural Act of 2014, section ofthe FNA requires that the Department monitor SNAP programs and measure their effectiveness. In addition, the Government Performance and Results Act of 1993 requires that Page 56 of 60 performance indicators be used to measure the outcome of government programs. Finally, a 2008 audit by the USDA Office of Inspector General (GIG) found that FNS had sufficient systems in place to monitor State agency compliance and administration with laws and regulations, but recommended FNS establish reporting measures for the SNAP program and require State agencies to submit outcome data to determine the Program?s effectiveness. This rule establishes standardized reporting measures and requires State agencies to report outcome data for the SNAP program. The Department published a proposed rule establishing performance measures in 1991 (FR 43152, August 30, 1991). At that time, many State agencies and advocates responded that the rule would impose an unreasonable burden on State agencies. The Department did not codify that proposed rule. While State agencies may have similar concerns today, other Federal work programs, such as the Workforce Innovation and Opportunity Act and the Wagner-Peyser Act have established standardized performance indicators and State workforce investment boards have more experience tracking entered employment, retention and earnings. By implementing Section 16[h)[5) ofthe FNA, the Department is following the lead ofother Federal agencies and establishing standardized reporting measures and requiring State agencies to report outcome data in order to evaluate the effectiveness of programs. Extent to Which We Met Those Concerns The Department has considered the impact ofthe interim rule on State and local agencies. This rule will implement reporting measures that are required by law and require the reporting of outcome data. The provisions in this rule are similar to the current practice of at least thirty-six State agencies. FNS will work with the remaining State agencies to provide guidance and technical assistance in meeting the requirements of this rule. Executive Order 131 75?Consultation and Coordination With Indian Tribal Governments This rule has been reviewed in accordance with the requirements of Executive Order 13175, ?Consultation and Coordination with Indian Tribal Governments.? Executive Order 13175 requires Federal agencies to consult and coordinate with tribes on a government- to-government basis on policies that have tribal implications, including regulations, legislative comments or 15620 Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes or on the distribution of power and responsibilities between the Federal Government and Indian tribes. Currently, only two State SNAP programs include partnerships or activities with Tribal organizations. On February 29, 2012, during a Tribal consultation, the Department explained the existing section ofthe FNA which required the Department to monitor and measure the effectiveness of programs, and intention to write a proposed rule on reporting measures and the reporting of outcome data. The Department invited Tribal officials or their designees to ask questions about the impact of a proposed rule on Tribal governments, communities, and individuals. The Department did not receive any comments or questions on its intention to write that rule. (Subsequently, the Agricultural Act of 2014 passed, which expanded the requirements and authority under section 16(hJ[5) ofthe FNA, and included a requirement that the Department publish an interim rule identifying national reporting measures.) This session established a baseline of consultation for future actions, should any be necessary, regarding this rule. Reports from the Tribal consultation session will be made part of the Department?s annual reporting on Tribal Consultation and Collaboration. The Department will provide additional venues, such as webinars and teleconferences, to periodically host collaborative conversations with Tribal leaders and their representatives concerning ways to improve this rule in Indian country. FNS has assessed the impact of this rule on Indian tribes and determined that this rule has tribal implications that require tribal consultation under E.O. 13175 and has consulted with Tribes as described above. If a Tribe requests consultation, FNS will work with the Office of Tribal Relations to ensure meaningful consultation is provided where changes, additions and modifications identified herein are not expressly mandated by Congress. Executive Order 12988 This rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule is intended to have preemptive effect with respect to any State or local laws, regulations or policies that con?ict with its provisions or that will otherwise impede its full implementation. This rule is not intended to have retroactive effect unless so specified in the ?Effective Date? paragraph ofthis rule. Prior to any judicial challenge to the provisions of this rule or the application of its provisions, all applicable administrative procedures must be exhausted. E-Government Act Compliance The Department is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. Paperwork Reduction Act The Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35; see 5 CFR part 1320) requires that OMB approve all collections of information by a Federal agency from the public before they can be implemented. Respondents are not required to respond to any collection of information unless it displays a current valid OMB control number. This interim rule contains new provisions that will affect reporting and recordkeeping burdens. Section 271.8 has been amended to reflect the new reporting requirements. The changes in burden that will result from the provisions in the interim rule are described below, and are subject to review and approval by OMB. When the information collection requirements have been approved, the Department will publish a separate action in the Federal Register announcing approval. Written comments on the information collection in this interim rule must be received by May 23, 2016. Comments are invited on: (1) Whether the collection ofinformation is necessary for the proper performance ofthe Agency?s functions, including whether the information will have practical utility; (2) the accuracy of the Agency?s estimate ofthe information collection burden, including the validity of the methodology and assumptions used; ways to enhance the quality, utility and clarity of the information to be collected; and ways to minimize the burden of the collection of information on those who are to respond, including use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Comments may be sent to Moira Johnston, at the address listed in the ADDRESSES section of this preamble. Comments will also be accepted through the Federal eRulemaking Portal. Go to and follow the online instructions for submitting Page 57 of 60 comments electronically. For further information, or for copies ofthe information collection requirements, please contact Ms. Johnston. All responses to this request for comments will be summarized and included in the request for OMB approval. All comments will also become a matter of public record. Title: SNAP: Employment and Training Program Monitoring, Oversight and Reporting Measures. OMB Number: Expiration Date: Not Yet Determined. Type of Request: New Collection. Abstract: As required by the Paperwork Reduction Act of 1995 [44 U.S.C. FNS is submitting this information collection to OMB for its review. The interim rule will require State agencies to collect and report information on: The number and percentage of participants who are in unsubsidized employment during the second quarter after completion of participation in The number and percentage of participants who are in unsubsidized employment during the fourth quarter after completion of participation in Median quarterly earnings of all participants who worked in unsubsidized employment during the second quarter after completion of participation in The total number and percentage of participants that complete a training, educational, work experience or an on-the-job training component; and (5) certain unique characteristics of SNAP participants that will provide information on the challenges they face in obtaining employment. The rule also requires State agencies to identify appropriate reporting measures for each proposed component that serves a threshold number of participants of at least 100 a year. The reporting measures for each component will be identified in States? plans and the outcome data will be reported to FNS in their annual reports. Additionally, the rule requires that State agencies that have committed to offering all ABAWDs at risk of losing eligibility due to time-limited participation 3 slot in a qualifying activity and have received an additional allocation of funds, to report information regarding the use ofthose funds. Respondents: The 53 State agencies that administer the SNAP program. Estimated Number ofResponses per Respondent: One response per year for each State agency that administers the SNAP program. States agencies will be required to report their outcome data annually. Federal Register Vol . 81, N0. 57/Thursday, March 24, 2016/Rules and Regulations 15621 Current status: Thirty-six State agencies currently identify reporting measures and collect outcome data. However, the interim rule requires the addition of several data elements that these State agencies are not currently collecting. While the Department believes that some of these State agencies may continue to use the systems they already have in place with modifications to meet the provisions of this rule, others may decide to implement new systems to meet the increase in data that is required to be reported to FNS. The remaining 17 State agencies that do not have reporting measures in place will all need to develop systems to collect and report the required data. In the first year that the rule is published, State agencies will need to develop data collection systems, reprogram existing systems, build interfaces between SNAP eligibility and SNAP data collection systems and decide what data will be collected manually. Effect on State Agencies: The Department has estimated that the effect on State Agencies will be two-fold: First, a one-time capital cost for developing new or modifying existing data collection systems for programs; and second, a reporting burden for collecting and reporting data for the required reporting measures. Those States that need to develop new systems may also incur annual operating and maintenance costs. Prior to implementation: In the first year that the rule is published, States may develop new SNAP systems, reprogram existing systems, build interfaces between SNAP eligibility and SNAP systems, and/or decide what data will be collected manually. For several ofthe measures employment, earnings, characteristics of participants) State agencies? could use a variety of sources to obtain administrative data, such as SNAP automated eligibility systems. The Department anticipates that some State agencies will rely on government entities with which they already have agreements and will need to renegotiate those agreements. Given the different size and complexity of States? programs, variations in their data systems, capabilities of their SNAP eligibility systems, and experience with reporting measures, it is not possible to develop a reliable estimate ofthe burden this rule places on State agencies to implement. Because ofthe uncertainties surrounding the exact methods States will use to collect and submit outcome data, we are requesting that States comment specifically on their potential capital start-up and operating and maintenance costs based upon consultation with potential data sources. After internal discussions with FNS regional office and State systems staff, FNS assumes an estimate of three staff-months [520 hours) per State to establish data collection and reporting systems to implement this rule, at a cost of approximately $1.2 million. This estimate ofinitial burden is a placeholder until FNS receives comments from States on their estimate ofthe time it will take to implement. ESTIMATED INITIAL REPORTING AND RECORDKEEPING BURDEN HOURS Number of - . . - Number of Total annual Total burden Description of activrty burden hours respondents responses per response hours One-time capital start-up and operating and maintenance costs .. 53 53 520 27,560 Annual ongoing burden from ruie: While it is expected that in the first year State agencies will expend more time and effort to establish reporting systems, the ongoing burden as shown below is relatively moderate?about one and one half staff-month per State. The following estimates assume that State agencies will use a combination of methods to collect the data including existing automated systems data, new data collection, and some contact with SNAP participants. In the regulatory impact analysis accompanying this rule, FNS estimates that the ongoing additional time burden will average no more than about 231 hours annually per State [about one and a half staff-months) on average [12,233 hours per year for all States), or less than $1 million in total. The breakdown ofthe 231 hours is itemized in the table below. FNS believes this estimate may be somewhat high since data that can be collected through automated data systems is expected to require less time than data collected through direct contact with SNAP participants. ESTIMATED ONGOING REPORTING AND HECORDKEEPING BURDEN HOURS Average . . . - - . Number of Annual re ort/ Total annual Total burden Regulation section Description of respondents record ?fgd responses hours 272.1(f) Recordkeeping. Re- participants who have eamings 53 1 53 40 2,120 porting. in the second quarter after comple- tion of Re- participants who have eamings 53 1 53 40 2,120 porting. in the fourth quarter after comple- tion of Median quarterly eamings .. 53 1 53 40 2,120 Reporting. participants that completed a 45 1 45 80 3,600 Reporting. training, educational, work experi- ence or an on-the-job training component within 6 months after completion of participation in Page 58 of 60 15622 Federal Register/Vol. 81, N0. 57/Thursday, March 24, 2016/Rules and Regulations ESTIMATED ONGOING REPORTING AND RECORDKEEPING BURDEN HOURS?Continued Average . . . . . . Number of Annual report/ Total annual Total burden Re ulatlon section Descrr tron of - burden hours 9 ty respondents record filed responses per response hours Characteristics of participants, 53 1 53 20 1,060 (vi) Reporting. some broken out by 4 above measures. Measures in a State agencies? 53 1 53 20 1,060 Reporting. plan for components that are de- signed to serve at least 100 participants a year. Information about ABAWDs from 10 1 10 10 100 Reporting. State agencies that have com- mitted to offering them participa- tion in a qualifying activity. Total Report- .. 53 7 320 38 12,180 ing. Total Recordkeeping. SUMMARY OF ONGOING BURDEN (IN ADDITION TO OMB 7 CFR 273 Total No. Respondents .. 53 Average No. Responses per Re- spondent .. 7 Total Annual Responses .. 373 Average Hours per Response .. 32.8 Total Burden Hours for Part 273 With Interim Rule .. 12,233 In addition to potential capital start- up and operating and maintenance costs, we are requesting that States comment specifically on our burden estimates. List of Subjects 7 CFR Part 271 Food stamps, Grant programs?social programs, Reporting and recordkeeping requirements. 7 CFR Part 273 Administrative practice and procedure, Aliens, Claims, Education and employment, Fraud, Grant programs?social programs, Reporting and recordkeeping requirements, Supplemental Nutrition Assistance Program. For reasons set forth in the preamble, 7 CFR parts 271 and 273 are amended as follows: I 1. The authority citation for 7 CFR parts 271 and 273 continues to read as follows: Authority: 7 U.S.C. 2011?2036. PART INFORMATION AND DEFINITIONS I 2. In 271.8, amend the table by adding an entry for in alphanumeric order to read as follows: ?271.8 Information collection] record keeping?0MB assigned control numbers. 7 CFR section where requirements are de- Current OMB Control scnbed .. 0584?New. it it it PART OF ELIGIBLE HOUSEHOLDS 3. Amend 273.7 as follows: I a. Add paragraph and b. Add paragraphs and (17). The additions read as follows: 273.7 Work provisions(xvii) For each component that is expected to include 100 or more participants, reporting measures that the State will collect and include in the annual report in paragraph of this section. Such measures may include: (A) The percentage and number of program participants who received services and are in unsubsidized employment subsequent to the receipt ofthose services; (B) The percentage and number of participants who obtain a recognized credential, a registered apprenticeship, or a regular secondary school diploma (or its recognized equivalent), while participating in, or within 1 year after receiving services; (C) The percentage and number of participants who are in an education or training program that is intended to lead Page 59 of 60 to a recognized credential, a registered apprenticeship an on-the-job training program, a regular secondary school diploma (or its recognized equivalent), or unsubsidized employment; (D) Measures developed to assess the skills acquisition of program participants that re?ect the goals of the specific components including the percentage and number of participants who are meeting program requirements or are gaining skills likely to lead to employment; and (E) Other indicators approved by FNS in the State plan. 9c 9: 9c (16) FNS may require a State agency to make modifications to its SNAP plan to improve outcomes if FNS determines that the outcomes are inadequate. (17) The State agency shall submit an annual report by January 1 each year that contains the following information for the Federal ?scal year ending the preceding September 30. The number and percentage of participants and former participants who are in unsubsidized employment during the second quarter after completion of participation in (ii) The number and percentage of participants and former participants who are in unsubsidized employment during the fourth quarter after completion of participation in Median average quarterly earnings ofthe participants and former participants who are in unsubsidized employment during the second quarter after completion of participation in (iv) The total number and percentage of participants that completed an educational, training work experience or an on-the-job training component. Federal Register/Vol. 81, No. 57/Thursday, March 24, 2016/Rules and Regulations 15623 The number and percentage of participants who: (A) Are voluntary vs. mandatory participants; (B) Have received a high school degree (or GED) prior to being provided with services; (C) Are (D) Speak English as a second language; (E) Are male vs. female (F) Are within each of the following age ranges: 16?17, 18?35, 36?49, 50?59, 60 or older. (vi) Of the number and percentage of participants reported in paragraphs through (iv) ofthis section, a disaggregation of the number and percentage of those participants and former participants by the characteristics listed in paragraphs (B), and (C) ofthis section. (Vii) Reports for the measures identified in a State?s plan related to components that are designed to serve at least 100 participants a year; and States that have committed to offering all at-risk ABAWDs participation in a qualifying activity and have received an additional allocation of funds as specified in shall include: (A) The average number of individuals in the State who meet the conditions of (B) The average number of individuals to whom the State offers a position in a program described in and (C) The average number of individuals who participate in such programs; and (D) A description ofthe types of employment and training programs the State agency offered to at risk ABAWDs and the availability of those programs throughout the State. (ix) States may be required to submit the annual report in a standardized format based upon guidance issued by FNS. 9: 9: 9: Dated: March 18, 2016. Kevin Concannon, Under Secretazy, Food, Nu trition, and Consumer Services. Doc. 2016?06549 Filed 3?23?15; 8:45 am] BILLING CODE DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 9? [Docket No. 31068 Amdt. No. 3688] Standard Instrument Approach Procedures, and Takeoff Minimums and Obstacle Departure Procedures; Miscellaneous Amendments AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule. SUMMARY: This rule amends, suspends, or removes Standard Instrument Approach Procedures (SIAPs) and associated Takeoff Minimums and Obstacle Departure Procedures for operations at certain airports. These regulatory actions are needed because of the adoption of new or revised criteria, or because of changes occurring in the National Airspace System, such as the commissioning of new navigational facilities, adding new obstacles, or changing air traffic requirements. These changes are designed to provide for the safe and efficient use of the navigable airspace and to promote safe flight operations under instrument flight rules at the affected airports. DATES: This rule is effective March 24, 2016. The compliance date for each SIAP, associated Takeoff Minimums, and ODP is specified in the amendatory provisions. The incorporation by reference of certain publications listed in the regulations is approved by the Director ofthe Federal Register as of March 24, 2016. ADDRESSES: Availability of matter incorporated by reference in the amendment is as follows: For Examination 1. US. Department of Transportation, Docket Ops?M30, 1200 New Jersey Avenue SE., West Bldg, Ground Floor, Washington, DC 20590?0001; 2. The FAA Air Traffic Organization Service Area in which the affected airport is located; 3. The office of Aeronautical Navigation Products, 6500 South MacArthur Blvd., Oklahoma City, OK 73169 or, 4. The National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202?741?6030, or go to: Page 60 of 60 Availability All SIAPs and Takeoff Minimums and ODPs are available online free of charge. Visit the National Flight Data Center online at nfdc.faa.gov to register. Additionally, individual SIAP and Takeoff Minimums and ODP copies may be obtained from the FAA Air Traffic Organization Service Area in which the affected airport is located. FOR FURTHER INFORMATION CONTACT: Thomas J. Nichols, Flight Procedure Standards Branch Flight Technologies and Procedures Division, Flight Standards Service, Federal Aviation Administration, Mike Monroney Aeronautical Center, 6500 South MacArthur Blvd., Oklahoma City, OK 73169 (Mail Address: PO. Box 25082, Oklahoma City, OK 73125) telephone: (405) 954?4164. SUPPLEMENTARY INFORMATION: This rule amends Title 14, Code of Federal Regulations, Part 97 (14 CFR part 97) by amending the referenced SIAPs. The complete regulatory description of each SIAP is listed on the appropriate FAA Form 8260, as modified by the National Flight Data Center Permanent Notice to Airmen (P-NOTAM), and is incorporated by reference under 5 U.S.C. 552(a), 1 CFR part 51, and 14 CFR 97.20. The large number of their complex nature, and the need for a special format make their verbatim publication in the Federal Register expensive and impractical. Further, airmen do not use the regulatory text of the SIAPs, but refer to their graphic depiction on charts printed by publishers of aeronautical materials. Thus, the advantages of incorporation by reference are realized and publication ofthe complete description of each SIAP contained on FAA form documents is unnecessary. This amendment provides the affected CFR sections, and specifies the SIAPs and Takeoff Minimums and ODPs with their applicable effective dates. This amendment also identifies the airport and its location, the procedure and the amendment number. Availability and Summary of Material Incorporated by Reference The material incorporated by reference is publicly available as listed in the ADDRESSES section. The material incorporated by reference describes SIAPs, Takeoff Minimums and ODPs as identified in the amendatory language for part 97 of this final rule. The Rule This amendment to 14 CFR part 97 is effective upon publication of each Electronic Approval History User ID Approver Name Datetime Description 1 P239151 Bowling,Paul 11/01/2017 8:11:29AM Agency Fiscal Approval 2 K003627 Smith,Karen S 11/01/2017 8:35:08AM IOT Approval 3 D231271 Neely,Dewand Anthony 11/01/2017 10:39:03AM IOT Approval 4 M225528 Hempel,Mark Alan 11/01/2017 12:46:18PM IDOA Legal Approval 5 J268330 Habig,Joseph Michael 11/09/2017 1:36:08PM SBA Approval 6 Z220413 Jackson,Zachary Q 11/09/2017 2:12:17PM SBA Approval 7 M338811 Skarbeck,Molly H 11/09/2017 3:22:19PM Attorney General Approval 8 S210690 Gard,Susan W 11/09/2017 3:27:21PM Attorney General Approval 9 S330632 Newman,Scott C 11/09/2017 4:25:57PM Attorney General Approval