Incumbent Worker System Building Demonstration

Training and Employment Guidance Letter No. 16-98

U.S. Department of Labor
Employment and Training Administration
Washington, D.C. 20210

April 16, 1999

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 16-98

TO: ALL STATE JTPA LIAISONS
ALL STATE WORKER ADJUSTMENT LIAISONS

FROM: DAVID HENSON
Director
Office of Regional Management

SUBJECT: Incumbent Worker System Building Demonstration

1. Purpose. To provide the States information on the second round of availability of Title III Demonstration Funds for Incumbent Worker System Building at the State level for Program Year 1998.

2. References. The Job Training Partnership Act (JTPA), as amended; the JTPA Final Rules, as published in the Federal Register on September 2, 1994; The Workforce Investment Act of 1998 (Public Law 105-220); and Training and Employment Guidance Letter No. 7-98.

3. Background. The U.S. Department of Labor, Employment and Training Administration (DOL/ETA), has the authority to carry out demonstration projects during Program Year 1998 that provide assistance to new entrants to the workforce and incumbent workers through section 323 of the JTPA.

On October 29, 1998, DOL announced the availability of Title III Demonstration funds for capacity/system building at the State level as part of its plan to undertake several types of initiatives under this authority. Grants to those States with acceptable proposals for system building have been issued by the Department.

Another initiative -- incumbent worker training for small firms or regional sectors and incumbent worker training for large firms or industries -- will be funded under a competition that is currently in progress. Grant awards under this Solicitation for Grant Applications are expected to be announced in May or June.

RESCISSIONS: None
EXPIRATION DATE: Continuing

Those States and entities which did not apply for systems building grants under the first opportunity are encouraged to do so now. The same guidelines apply for preparation of a proposal, but a streamlined review process will be followed due to the nearness to the end of the program year funding period.

4. Description of Incumbent Worker State System Building Demonstration. These grants would support the State-level development of strategies and operational plans to respond to incumbent worker training needs in their areas. Authorization effective July 1, 1998, allows for the use of Secretary's JTPA Title III Discretionary funds under demonstration authority for incumbent worker training. Governors do not have authority at this time to use Title III formula-allotted funds for this purpose. The new Workforce Investment Act authorizes Governors to use a limited portion of funds for Statewide activities for services to incumbent workers.

This demonstration program is intended to support a broad-based nationwide effort to further the development of incumbent worker training strategies. It will provide for the preparation of an initial State Strategy for Incumbent Worker Training to be developed by appropriate stakeholders within each State--including employers, organized labor, training providers, economic and workforce development organizations, and other appropriate parties. The projects would be grants with a maximum period of performance of 12 months, not to exceed $50,000 each, with a total for all grants, including those funded under the first round of fund availability, not to exceed $2,600,000.

5. Discussion. In order for States to prepare for the development of incumbent worker training strategies, they must first work with stakeholders to determine the following: what the States' greatest needs are; what already exists in the area of incumbent worker training; what organizations are already working together on this effort; what will be necessary for a broad-based Statewide strategy for incumbent worker training; how much this effort will cost; what funds have already been committed to this effort; how participating organizations, firms, or sectors will be selected to participate; who will represent them; what type of training is needed; how training needs have been documented; who will be eligible for the training; what specific outcome goals will be achieved; how the projects will be managed and how the projects will be evaluated.

Also required under the system building grant will be the preparation of a State Strategy for Incumbent Worker Training to be developed by appropriate stakeholders within each State, the District of Columbia, and Puerto Rico. This Strategy will constitute the primary deliverable to the Department in response to the grant. Proposals must include a State Strategy.

Proposal budgets must include funds for at least one visit to Washington, D.C., for two persons to attend a 2-day grant program orientation or conference.

6. Submission of State Applications. States' Incumbent Worker System Building Demonstration grant applications should be submitted as soon as possible, but not later than May 17, 1999, to the appropriate Regional Office, as well as to the Grant Officer and to the Program Office (addresses below). Each State may submit only one response but should coordinate responses between the State Dislocated Worker Unit and JTPA Liaison. Separate copies should be sent at the same time to the following addresses:

Janice E. Perry, Grant Officer
Attention: Incumbent Worker System Building Demonstration Plan
Employment and Training Administration
U.S. Department of Labor, Room S4203
200 Constitution Avenue, N.W.
Washington, DC 20210

Douglas B. Holl, Program Manager
Office of Worker Retraining and Adjustment Programs
Employment and Training Administration
U.S. Department of Labor, Room N5426
200 Constitution Avenue, N.W.
Washington, D.C. 20210

Regional Office staff will review the applications for relevance to the program dimensions and the identified needs, and will forward their comments to the National Office. Applications that meet the Department's review criteria will be processed for funding. Those that do not will be returned, accompanied by an identification of key shortcomings. States will be notified of grant awards by June 30, 1999.

7. Inquiries. Inquiries about the demonstration should be directed to Douglas Holl, Office of Worker Retraining and Adjustment Programs at 202-219-5577 x115.

8. Attachments.

I. Proposal Format for Grant Applications
II. State Strategy Content

Attachment I: Proposal Format for Grant Application

Source: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1999/TEGL16-98_AttachA.pdf (accessed October 25, 2026)

(Maximum 10 pages)

1. Overview; goals for the planning process

a. Describe the State's current activities in the incumbent worker field.
b. Describe the State's goals for this effort.

2. Strategy for Statewide Efforts

a. Describe what will be necessary under this grant for a broad-based strategy Statewide for incumbent worker training; how much this effort will cost; and what funds have already been committed to this effort. b. Describe how under this grant this effort will plan for the selection of organizations, firms, or sectors to participate in incumbent worker activities and who will represent them in the planning and implementation processes.

3. Stakeholders to be Targeted

a. Identify the organizations in your State which are already working on incumbent worker training. b. Describe what stakeholders will be included in the planning process and their relevance to the effort under this grant.

4. Needs for Incumbent Worker Training

a. Describe what already exists in the area of privately-funded and publicly-funded incumbent worker training and what organizations are already working together on this effort. Describe how these needs were determined. b. Describe the goals for the planning effort under this grant in the area of need identification. How will training needs be documented? Who will be eligible for the training?

5. Training Providers

Identify potential issues related to selection of training providers, and describe how the plan will address these issues.

6. Outcome Goals

What are the specific outcome goals for this project? How were they determined? How will achievement of goals be measured?

7. Management of Projects

a. How will this system-building grant project be managed? Include the name of project manager and the organization. b. How will the planning activity address the management of prospective incumbent worker training projects?

8. Budget

a. Describe how much money you have budgeted for this effort, including specific line items as contained in Standard Form 424A. b. Provide a narrative description of each line item, indicating the basis for each cost. The maximum allowable total of grant funds is $50,000 per State. Identify any non-system building grant funds devoted to this effort. c. Budget must allow for funds for travel to Washington, D.C., for two persons to attend one two-day conference.

9. Time line

Using a chart format, indicate the activities which will take place during the project's period of performance (up to 12 months) to complete the State Strategy.

10. Evaluation

Describe how this demonstration project will be evaluated. What would the State consider to be an effective demonstration project?

11. Additional Information

Please provide any additional information you feel is necessary to understand your State's Strategy for Incumbent Worker Training.

Attachment II: State Strategy for Incumbent Worker Training Content

Source: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1999/TEGL16-98_AttachB.pdf (accessed October 25, 2026)

State Strategies will be due to DOL by the end of the eleventh month of the grant period. While it is expected that each initial State Strategy for Incumbent Worker Training will vary, such Strategies should address the core issues identified in the grant applications.

1. Achievement of Goals

a. What were your goals for the planning process for incumbent worker system building? b. Did you achieve your goals? If not, why not?

2. Participation in Statewide Efforts

a. What organizations, firms, or sectors participated in the Statewide planning efforts? b. Were there any major problems, issues, or successes you confronted or achieved during this statewide effort?

3. Participation of Stakeholders

a. What major stakeholders were involved in the planning process for incumbent worker training system-building? b. Were there other stakeholders who should have been involved? Why were they not involved? c. Are there any lessons you learned about the participation of various stakeholders?

4. Need Identification

a. What were your goals for identification of need in the Statewide planning process for incumbent worker system-building? b. What additional needs were identified?

5. Training Providers

a. What efforts have been achieved for identification of training providers?
b. How have training providers been identified and selected?

6. Outcome Goals

a. What outcome goals have been identified for incumbent worker training?
b. How did you determine specific outcome goals?

7. Project Management

a. Describe how the project has been and will be managed.
b. Include the name of the project manager and the organization.

8. Budget

a. How much money was expended for the incumbent worker effort?
b. What were the individual line items?

9. Time line

a. What activities took place during the 12 month period of performance to complete the State Strategy? b. If there were any activities not completed during the period of performance, explain why they were not completed.

10. Evaluation

a. Describe the results of the evaluation of the incumbent worker training effort. b. What are the lessons learned from the evaluation that can be utilized in the State's future efforts with incumbent worker training?