FY 2017 UI system modernization grants

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                Unemployment Insurance
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI
             Washington, D.C. 20210                      DATE
                                                         September 8, 2017

ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 22-17

TO:               STATE WORKFORCE AGENCIES

FROM:             BYRON ZUIDEMA /s/
                  Deputy Assistant Secretary

SUBJECT:          Unemployment Insurance (UI) Supplemental Funding Opportunity for State
                  Consortia to Modernize Tax and Benefit Systems

1. Purpose. To notify State Workforce Agencies (SWAs) of the availability of Fiscal Year
   (FY) 2017 funds for continued support of state consortia to modernize UI tax and benefit
   systems by addressing outdated information technology system infrastructures.

2. References.
   • 26 U.S.C. 6103(l)(10)(B), Confidentiality and Disclosure of Returns and Return
      Information;
   • 20 CFR Part 619, Unemployment Compensation Data Exchange Standardization for
      Improved Interoperability;
   • Consolidated Appropriations Act of 2017, Public Law No. 115-31 (May 5, 2017);
   • Unemployment Insurance Program Letter (UIPL) No. 26-11, Unemployment Insurance
      Supplemental Funding Opportunity for Program Integrity and Performance and System
      Improvements (July 18, 2011);
   • UIPL No. 17-12, Unemployment Insurance (UI) State Information Data Exchange
      System Messaging and Communications Toolkit Availability (May 9, 2012);
   • UIPL No. 18-12, Unemployment Insurance Supplemental Funding Opportunity for
      Program Integrity and Performance and System Improvements (May 11, 2012);
   • UIPL No. 24-13, Unemployment Insurance Supplemental Funding Opportunity for
      Program Integrity and Performance and System Improvements (July 25, 2013);
   • UIPL No. 13-14, Unemployment Insurance Supplemental Funding Opportunity for
      Program Integrity and Performance and System Improvements (June 16, 2014);
   • UIPL No. 16-15, Unemployment Insurance Supplemental Funding Opportunity for
      Program Integrity and Performance and System Improvements (June 15, 2015);
   • UIPL No. 19-15, Change 1, Unemployment Insurance Supplemental Budget Request
      (SBR) Activities: Quarterly Program Reporting Form and Instructions (April 21, 2017);
   • UIPL No. 19-16, Unemployment Insurance Supplemental Funding Opportunity for
      Improved Operations (August 21, 2017);
   • Training and Employment Notice (TEN) No. 34-13, Publication of the Final Rule for the
      Federal-State Unemployment Insurance Program - Data Exchange Standardization as

 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing

       Required by Section 2104 of the Middle Class Tax Relief and Job Creation Act of 2012
       (June 9, 2014); and
   •   TEN No. 28-14, Pre-Implementation Planning Checklist for State Unemployment
       Insurance (UI) Information Technology (IT) Modernization Projects (March 27, 2015).

3. Background. State UI programs are a critical component of the nation’s social and
   economic safety net. States are heavily dependent on information technology (IT) systems to
   carry out their UI operations and to pay benefits to claimants in a timely manner. UI
   programs in many states operate using aging IT systems, some dating from the 1970s. States
   with these obsolete systems had difficulty ramping up to process recession-level workloads
   and modifying their systems to accommodate required programs changes, such as the
   Emergency Unemployment Compensation and Federal Additional Compensation programs
   that were in place during the most recent recession, and to implement new Federal
   requirements. These difficulties delayed payments to eligible unemployed workers and
   frustrated potential beneficiaries. Problems inherent in these aging systems include lack of
   flexibility to adapt to program changes and difficulty obtaining maintenance and support due
   to a scarcity of technical personnel with knowledge of older hardware and software
   languages. In addition, older systems are not designed to meet the expectations of the public
   (claimants and employers) for electronic and web-based services.

   The limited availability of resources to modernize state UI IT infrastructure over the last two
   decades has left these systems at risk of failure to meet their essential mission. Based on the
   experience of the few states that have been able to develop new benefits or tax systems and
   those that are currently in development, the cost for a new customized system, on average, is
   about $40 to $50 million per benefit or tax system. Most states are in need of a new benefit
   or tax system or both. The Employment and Training Administration’s (ETA) budget
   estimates show that the cost of funding individual customized state systems for every state
   that needs them, even if costs were spread over multiple years, is unaffordable in the current
   budget environment and that states must seek collaborative solutions to address the
   challenge. It is also important to note that the cost of maintaining IT systems has grown
   substantially and states are spending a much greater percentage of their UI administrative
   grants on IT infrastructure, which cuts into their ability to fund staff to carry out mission
   critical functions.

   To address this critical program challenge, in FY 2009, ETA began providing funds to state
   consortia to modernize their UI IT systems as a strategy to reduce cost and accelerate the
   replacement of the outdated UI benefit and tax systems. The consortia strategy promotes the
   following principles:

   •   Development of a core system for multiple states that is only customized as needed for
       individual states to accommodate state laws and that can be maintained and improved
       jointly, thus reducing costs;
   •   Limited use of proprietary products and use of open software products where feasible to
       enable ease of transfer of the system architecture and code base to other states;
   •   Leveraging all of the products developed by existing consortia for other individual states
       or other consortia of states moving forward; and


   •   Positioning the consortia that complete their projects to on-board additional states or to
       enable the consortia to transfer their code to other states or consortia.

   ETA continues to work with states to improve UI program performance and modernize
   outdated IT infrastructures. Following the initial investment in FY 2009, ETA funded SBRs
   for state consortia to modernize their UI tax and benefit systems in FY 2011 (UIPL No. 26-
   11), FY 2012 (UIPL No. 18-12), FY 2013 (UIPL No. 24-13), FY 2014 (UIPL No. 13-14),
   FY 2015 (UIPL No. 16-15), and FY 2016 (UIPL No. 19-16). As a condition of funding
   eligibility, those opportunities required states to implement specific strategies in order to
   qualify for the additional consortium funding.

4. Structure of Funding Opportunity. In recent years, some funds appropriated for state
   administration have remained available due to lower-than-projected workloads. These
   “unearned” above-base state UI administration funds were available at the end of the fiscal
   year for ETA to offer states supplemental funding opportunities for improved operations.
   This supplemental funding enabled states to implement many of the strategic priorities
   contained in ETA’s integrity strategic plan and to support modernization of state UI systems.
   Specifically, this funding has led to widespread state adoption of strategies such as cross-
   matching with the National Directory of New Hires (NDNH) for detecting UI claimants who
   have returned to work, use of the Treasury Offset Program (TOP) for the recovery of fraud
   and certain non-fraud overpayments, and adopting the State Information Data Exchange
   System (SIDES) for timely and accurate exchange of information required from employers to
   make benefit eligibility determinations.

   For FY 2017, it is still not certain whether “unearned” above-base state UI administration
   funding will become available. As a result, ETA is unable to offer SBR funding
   opportunities for improved operations. In the event that some amount of “unearned” above-
   base funding remains available at the end of the fiscal year, ETA will use the limited funds
   remaining to augment base funding for states. ETA continues to strongly encourage all states
   to prioritize the use of the above-base funding to support for improved operations through the
   prevention and detection of UI improper benefit payments, and efforts to enhance state
   performance.

   We are pleased to announce, however, that the enacted FY 2017 appropriation included $50
   million in supplemental funding specifically for continued support of state consortia efforts
   to modernize UI tax and benefit systems, including compliance with the requirements of 26
   U.S.C. 6103(l)(10)(B). See the Report for the Departments of Labor, Health and Human
   Services, and Education, and Related Agencies, accompanying the Consolidated
   Appropriations Act of 2017, Public Law No. 115-31 (May 5, 2017) available at
   https://rules.house.gov/sites/republicans.rules.house.gov/files/115/OMNI/DIVISION%20H-
   %20LABORHHS%20SOM%20OCR%20FY17.pdf.

   Section 6 of this UIPL describes the SIDES requirements for applicants and how states are able to
   satisfy these requirements that are a condition of eligibility. To receive any funding through this
   solicitation, a states must attest to the status of SIDES implementation and fully implement and
   begin using SIDES Web Services and SIDES E-Response (see Attachment A).


   Section 5 of this UIPL describes the types of consortium funding opportunities for UI IT
   modernization projects that are available to states for FY 2017. State requests must include a
   realistic timeline with milestones and goals for the project(s) it commits to implement.

   By accepting these supplemental funds, a state agrees to satisfy the commitment(s) made in
   its application. States’ progress in achieving the timelines and completing the deliverables
   established in the grant’s statement of work will be monitored on a quarterly basis using the
   reporting format discussed in Section 7 of this UIPL.

5. Consortium Projects. State consortia planning to submit a proposal must comply with the
   requirements provided in this section and the SIDES requirements established in Section 6 of
   this UIPL. The proposal must clearly indicate total project costs including a breakdown of
   individual state costs. States must indicate the minimum funds necessary to complete the
   proposed project(s).

   States interested in forming a consortium or on-boarding to a consortium are strongly
   encouraged to consult with the UI Information Technology Support Center (ITSC) operated
   by the National Association of State Workforce Agencies (NASWA), and to review the UI
   Information Technology Modernization Guide and other information provided on the UI
   ITSC website at http://itsc.org/Pages/default.aspx.

   The purposes for which a consortium of states may submit a proposal are outlined below:

   •   An existing consortium deploying cloud solutions that need to interface with the Internal
       Revenue Service (IRS) and the Social Security Administration, whether previously
       funded by ETA or using state funds, may request funds to support compliance with the
       requirements of 26 U.S.C. 6103(l)(10)(B) and to cover the costs of meeting security
       requirements.

   •   An existing consortium, whether funded by ETA or using state funds, with completed
       business requirements for a UI benefits and/or tax system may submit a proposal for the
       design, development, and implementation activities needed to on-board an additional
       state to the existing UI benefits and/or tax system consortium if a fit-gap analysis has
       previously been conducted and completed and the states are prepared to move forward
       with development to on-board the new state.

   •   An existing consortium, whether funded by ETA or using state funds, that has
       substantially completed development of its system may submit a proposal to conduct a
       fit-gap analysis to enable on-boarding a new state. The proposal must demonstrate a
       commitment by the consortium and the state to be on-boarded in order to integrate the
       new state into the consortium and reflect an agreement to revise the existing consortium
       agreement, governance structure, and operating model to accommodate the inclusion of
       the new state agency.


•   A new consortium of states may submit a proposal to adapt a mature code base from
    another consortium or state into a modernized UI benefits and/or tax system. The
    consortium must use open source components to the extent feasible and the components
    must be transferable and available to be shared by multiple SWAs without the need for
    significant customization.

•   In very limited circumstances, such as unanticipated costs for additional subject matter
    experts (SMEs) to assist with the project, ETA may provide additional funding to an
    existing consortium that received IT modernization funding under an earlier SBR. The
    rationale for a request must be compelling and demonstrate that changes in circumstances
    or situations that were unforeseeable are the cause for the need for additional funding.

•   An existing consortium, whether funded by ETA or using state funds, may request funds
    for the development of a subsystem, module, or component of a UI benefits and/or tax
    system. In recent years, a few individual states have used innovative approaches to cost-
    effectively modernize their IT systems. These approaches include modernization of
    specific subsystems, modules, or components that support critical business functions and
    integrate them within their existing system. For the consortium system, a subsystem,
    module, or component that is proposed for development must use open source
    components to the extent feasible, be transferable, and be available to be shared by
    multiple states without the need for significant customization, and/or be hosted in one
    state, which will provide automated services to other states.

•   To promote future cost efficiencies across states and to enable greater leveraging of
    existing UI modernization investments, a consortium of states may request funds to
    develop a model for the shared management of maintenance and operational costs. This
    model is intended to promote cost efficiencies across states and enable greater leveraging
    of existing UI modernization investments. The model may also include shared state
    approaches on consortium system maintenance, ongoing modernization, and adoption of
    new technologies; a shared approach/process for procurement to support the consortium’s
    system; and coordination among consortium states to enable development. The model is
    to be developed as a replicable model that may be used by other consortia. Examples of
    possible consortia applicants for this funding include, but are not limited to, a group of
    more than one consortium of states, or a consortium of states and an individual state or
    states. It is expected that the members of a consortium applying for funds in this
    category will share a common operational element, such as a common vendor, a common
    technology approach, or platform, that poses similar maintenance, operations, and
    upgrade challenges. Funding cannot be used to support actual maintenance costs.
    Examples of what funds in this category can be used to support include securing
    technology expertise (system/organizational design experts/consultants), procurement
    expertise, and coordination among consortium states to enable development of the model.
    Funding for development costs may be considered in future funding opportunities based
    on the model created.


   Consortia are reminded that the project planned by a state consortium must specifically
   address the following requirements if applicable to their specific SBR proposal:

   •   Data outputs that meet UI Required Reporting requirements in ETA Handbook No. 401;
   •   UI Data Validation requirements as referenced in ETA Handbook No. 361;
   •   System interfaces with the ICON network applications;
   •   System interfaces with SIDES;
   •   Compliance with appropriate assurances as referenced in ETA Handbook No. 336,
       Chapter VII, including the requirements for Contingency Planning and Automated
       Information Systems Security;
   •   Compliance with 20 CFR Part 619, the final rule for Data Exchange Standardization that
       designates data exchange standards for UI administration, with further guidance in TEN
       No. 34-13;
   •   If the project includes an integrated UI Tax system, it must provide for the continued
       reporting of wage records, monthly employment, and any other factors required under the
       Quarterly Census of Employment and Wages program; and
   •   Use of the UI IT Modernization pre-implementation checklist set out in TEN No. 28-14
       as a planning tool, and repeat the checklist review for these critical elements when the
       consortium is within at least six months of “going live” with a newly modernized UI IT
       system.

6. SIDES Requirements. States must meet each of the SIDES requirements identified in this
   section to be eligible for consortium funding through this solicitation. For each strategy,
   states must either commit to implementation and recommend a timeline for completion, or
   attest that the strategy is already complete and provide the completion date.

   •   Full Implementation and Use of SIDES. All states must commit to fully implement
       and use both SIDES Web Services and SIDES E-Response in order to improve the
       timeliness and quality of separation information needed to adjudicate non-monetary
       determinations. States must attest to the status of SIDES implementation as part of the
       application for funding (see Attachment A).

       SIDES is a web-based system that allows electronic transmission of UI information
       requests from SWAs to employers and Third Party Administrators (TPAs), as well as
       transmission of responses containing the requested information back to the requesting
       agencies. SIDES provides for two methods by which employers can receive and respond
       to information requests from states:

          SIDES Web Services is a computer-to-computer system best suited for employers and
           TPAs that typically deal with a large volume of UI information requests.

           For employers with a limited number of UI claims throughout the year, the SIDES E-
           Response Web site provides an easy and efficient portal for electronically posting
           responses to information requests from state agencies. SIDES E-Response is
           available in participating states to any employer or TPA with Internet access.


           The NASWA ITSC SIDES Team manages the day-to-day operations and maintenance of
           SIDES.

           ETA interprets full implementation of SIDES Web Services and SIDES E-Response as
           the state collaborating with the NASWA ITSC SIDES Team and completing all the steps
           necessary in order to establish SIDES separation information data exchanges with
           employers and TPAs on a continuous basis. Full implementation includes the following:

              Use of SIDES Web Services as the only mechanism to communicate all
               separation requests with employers and TPAs with whom the state is currently
               exchanging information. As states adopt SIDES Web Services, continuing to
               operate a parallel or dual system, or using some other method for obtaining job
               separation information, diminishes the efficiency of the information gathering process
               and requires state staff, employers, and TPAs to be trained in and to use multiple
               methods for data exchange. The exclusive use of SIDES Web Services for receiving
               all requests and responses to other participants is required by the SIDES Agreement
               to Participate. 1

               ETA knows that a number of states operate centralized business communication hubs
               for a variety of business interactions across multiple state agencies. States with
               centralized employer/business communication hubs should contact NASWA ITSC
               SIDES team for technical assistance to support using SIDES in a centralized
               environment using a single-sign-on option.

              Implementation of SIDES Web Services with all employers and TPAs that
               currently participate in SIDES in that state, and beginning the SIDES data
               exchange with newly participating employers and TPAs within 12 months after
               those parties have completed testing/certification with the NASWA ITSC SIDES
               Team. If a particular employer or TPA is the cause of the delay in implementing the
               exchange, the implementation date will be based on a negotiated schedule with the
               NASWA ITSC SIDES Team.

              Expansion of the overall state usage of SIDES (Web Services and E-Response)
               with a goal for states to receive employer responses through SIDES Web
               Services and SIDES E-Response for at least 50 percent of all UI initial claims 2
               processed and, separately, a goal of at least 35 percent of all UI initial claims
               processed through the SIDES E-Response. To promote employer participation,
               states are strongly encouraged to use SIDES E-Response as the default method by
               which employers respond to separation information requests. By making SIDES E-
               Response the default method, employers are automatically directed to SIDES E-
               Response with an opt-out to decline its use. States that have employed the default
               method approach have dramatically increased employer uptake and use of SIDES.


1
    For states to participate in SIDES, the NASWA ITSC SIDES Team requires a signed “Agreement to Participate.”
2
    The total number of new, initial, and additional claims as reported in the ETA 5159 monthly report.


          Development and implementation of a sustained outreach plan to increase
           employer participation in SIDES. SIDES offers significant efficiencies to
           employers and their TPAs, especially those that operate in more than one state.
           Providing standard formats for employer use for information exchanges with state
           agencies eliminates the need for inefficient manual processes and the need to develop
           systems to handle each state’s forms and processes separately. States also should use
           at least one SIDES messaging tool (either one included in the SIDES marketing
           toolkit as outlined in UIPL No. 17-12 or another state developed messaging tool) to
           ensure that employers are fully aware of the benefits that SIDES offers.

          Commitment to work with the NASWA ITSC SIDES Team on a mutually
           agreeable schedule to accomplish software enhancements and changes within a
           specific timeframe. This mutually agreed schedule may include timeframes for
           testing of the business functionality and security features, and scheduling of the
           changes/enhancements. SIDES technical staff is available to assist states during this
           process. The NASWA ITSC SIDES Team provides states with at least six months’
           notice of major software changes/upgrades and works with states to determine a
           feasible and mutually agreeable implementation date.

7. Quarterly Reporting Requirements. Each state recipient of SBR funds must submit a
   narrative Quarterly Progress Report (ETA 9178) and Quarterly Financial Report (ETA 9130)
   containing updates on the progress and implementation of each grant project as listed in the
   award letter. For SBRs provided to state consortia for IT modernization projects, the lead
   state is expected to provide the status report on behalf of the partner states. Please refer to
   UIPL No. 19-15, Change 1 for additional guidance on the submission of quarterly progress
   reports to meet the reporting and record keeping requirements of these grants.

8. Application and Award of Supplemental Funds. To apply for supplemental funds, the
   lead state in a consortium will be responsible for submitting a joint application on behalf of
   the participating states using the 2017 SBR Application provided in Attachment A. All
   consortium proposals must identify a lead state agency, identify the states participating in the
   consortium, and explain the projected allocation of and fiscal responsibility for expenditures.
   Only the lead state must provide a completed Attachment A application. Partner states must
   only submit a separate SF-424 and SF-424A, as well as a budget narrative using the
   instructions in Attachment C.

   The proposal must clearly indicate total project costs, including a breakdown of individual
   state costs and how much funding, if any, the state(s) are contributing to the project. States
   must indicate the minimum funds necessary to complete the proposed project(s). Depending
   on the availability of funding and number of proposals deemed eligible for funding, it may be
   necessary to negotiate project funding. The FY 2017 Appropriation provides the authority
   for states to provide subgrants to other states and non-state entities for activities in
   accordance with the purpose and conditions of the grant.

   Additionally, proposals must include a copy of the signed agreement(s) with all participating
   states. A cover letter must be included and signed by the Administrator of the lead state


agency and it must explain the roles of the participating state(s) in the project as described in
the consortium agreement.

An application package should contain the following:
• Form provided in Attachment A. An electronic version of Attachment A will be made
   available to states through the ETA regional offices;
• Form SF-424 (OMB No. 4040-0004)
   http://apply07.grants.gov/apply/forms/sample/SF424_2_1-V2.1.pdf and SF-424A (OMB
   No. 4040-0006) http://apply07.grants.gov/apply/forms/sample/SF424A-V1.0.pdf
   covering all projects in the SBR. Please refer to Attachment B for additional instructions
   on completing the SF-424 and SF-424A;
• A Budget Narrative to explain the projected costs reflected in each line item of the SF-
   424A, demonstrating how grant funds will be used. See Attachment C for instructions on
   completing the budget narrative;
• A copy of the signed agreement(s) with all participating states; and
• Indirect Costs: Applicant states that include indirect costs in the budget, must include
   either:
   (a) The approved indirect cost rate with a copy of the Negotiated Indirect Cost Rate
       Agreement (NICRA), a description of the base used to calculate indirect costs along
       with the amount of the base, and the total indirect costs requested; OR
   (b) For those applicant states that meet the requirements to use the 10% de minimis rate
       as described in 2 CFR 200.414(f), a description of the modified total direct cost base
       (see 2 CFR 200.68 for definition) used in the calculation along with the amount of the
       base, and the total indirect costs requested based on the 10% de minimis rate. The
       following link contains information regarding the NICRA at DOL:
       http://www.dol.gov/oasam/boc/dcd/index.htm.

Applications that do not follow the format prescribed in this section will be judged to be non-
responsive and will not be considered for funding. ETA also reserves the right to negotiate
grant amounts with each applicant. States will be required to submit revised forms SF-424
and SF-424A if the final award amount is different from the initial request. New grant
agreements will be executed for supplemental funds awarded under this UIPL.

The one-time funds available for support of state consortia to modernize UI tax and benefit
systems must be obligated by states by September 30, 2022 and liquidated by September
30, 2023. Funds obligated for state staff and services related to automation
acquisitions/projects such as SMEs, application developers, or project management oversight
must be obligated by September 30, 2022, and liquidated within 90 days thereafter. Funding
for state staff cannot be obligated for use at a future date and the obligation may only occur at
the time the staff performs services on the project.

When projects have been approved, a Letter of Award will be issued to the state(s) listing the
proposal that is being funded by the SBR. It will include the funding level and the allocation
among states for any consortium projects. Additionally, the state will also receive a grant


   award package that includes a Notice of Obligation as well as the Grant Terms and
   Conditions. The standard Federal award terms and conditions for FY 2017 ETA grants are
   available here: https://www.doleta.gov/grants/pdf/17StandTermsConds.pdf.

9. Project Modifications. If, during the performance period, a state wishes to reallocate funds
   among categories/projects within its SBR, it must submit a new SF-424A (OMB No. 4040-
   0006) to the appropriate ETA regional office for approval, with a copy to the National Office
   if the amount to be moved is equal to or exceeds 10 percent of the total grant award received
   under this UIPL. The state must also submit a request for modification of the grant signed by
   the state’s signatory authority. This information will be submitted to the Grants Officer with
   a request for modification of the SBR grant to reflect the requested changes. This request
   must be provided to the National Office by the lead state. Also, all future modification
   requests to the grant should be sent by email to [email protected] with a
   copy to the appropriate ETA regional office.

   By accepting these funds, each state agrees to meet the commitment(s) made in its
   application. States may not elect to abandon an approved project and move funds to a
   different project. State progress in achieving the timelines and completing the deliverables
   established in the grant’s statement of work will be monitored on a quarterly basis using the
   reporting format discussed in Section 7 of this UIPL. A state’s failure to meet these
   performance requirements could result in questioned costs that must be repaid.

10. OMB Information Collection. OMB Information Collection No 1225-0086, expires on
    May 31, 2019. According to the Paperwork Reduction Act of 1995, no person is required to
    respond to a collection of information unless such collection displays a valid OMB control
    number. Public reporting burden for this collection of information is estimated to average 20
    hours per response, including time for reviewing instructions, searching existing data
    sources, gathering and maintaining the data needed, and completing and reviewing the
    collection of information. Send comments about the burden estimated or any other aspect of
    this collection of information, including suggestions for reducing this burden, to the U.S.
    Department of Labor, to the attention of the Departmental Clearance Officer, 200
    Constitution Avenue NW, Room N1301, Washington, D.C. 20210. Comments may also be
    emailed to [email protected]. PLEASE DO NOT RETURN THE
    COMPLETED APPLICATION TO THIS ADDRESS. SEND IT TO THE SPONSORING
    AGENCY AS SPECIFIED IN THIS ANNOUNCEMENT.

11. Action Requested. State Administrators are requested to:

   a) Review the funding opportunity and determine whether the state will apply for any funds
      under this solicitation;
   b) Coordinate with UI program and IT staff to develop a proposal(s) under this solicitation;
   c) Work with the appropriate ETA regional office to develop an SBR that will best serve the
      needs of the state. An electronic version of Attachment A will be made available to
      states through the ETA regional offices; and
   d) Submit the SBR application by e-mail to [email protected] by the close of
      business on October 23, 2017, with an electronic copy provided to the appropriate ETA


       regional office. Late applications will not be accepted. The subject line of the e-mail
       should include the name of the state and the title “Consortium SBR 2017.”

12. Inquiries. Questions should be directed to the appropriate ETA regional office.

13. Attachments.

   Attachment A: 2017 Supplemental Budget Request (SBR) Application
   Attachment B: Additional Instructions to Complete the SF-424 and SF-424A
   Attachment C: General Instructions for the Completion of a Budget Information Narrative

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2017/UIPL_22-17_Attachment_A_Acc.pdf)

Attachment A

                   2017 Supplemental Budget Request (SBR) Application

Instructions: States must complete a separate document using the suggested format and
instructions below for each activity for which the state is seeking funding. This document is to
be combined in a single SBR along with a completed SF-424 and an SF-424A covering all
projects. The lead state in a consortium must submit a separate application for a Consortium
Project. Applications that do not follow the format prescribed in this section will be judged as
non-responsive and will not be considered for funding.

                                 Unemployment Insurance
                           Supplemental Budget Request Abstract

 State Name:

 Total Funds Requested for All Projects:

 Name, Title, and Address of Grant Notification Contact (Typically the State Workforce
 Agency Administrator)
 Name:
 Title:
 Address:

 Name, E-Mail Address, and Phone Number of SBR Project or Fiscal Manager
 Name:
 E-Mail Address:
 Telephone Number:

 Provide the following information for each project (add additional rows as needed):

 Individual Project Name         Total Cost of Project            Proposed Completion Date

    SIDES Attestation

                                                                               Yes / No with target date
    SIDES Web Services and SIDES E-Response implemented


                                                                                 Yes / No with target date
                                                                                 within 12 months of this
    State is using SIDES Web Services to Exchange with all                       UIPL’s publication date. 3
    available employers and TPAs


    State is implementing strategies to expand overall state usage of SIDES Web Services
    and SIDES E-Response 4
    (Yes / No with projected target date for achieving the SIDES expansion goals of 50%
    overall and 35% for E-Response)


    SBR Project Application
    Complete a separate document for each activity for which the state seeks funding

    Name of Project


    Amount of Funding Request for this Project


    State Contact

    Name:
    E-Mail Address:
    Telephone Number:


3
  If a particular employer or TPA is the cause for the delay for implementing the exchange, the date will be based on
a negotiated schedule with the NASWA SIDES Team.
4
  States meet SIDES expansion goals by receiving employer responses for at least 50 percent of all UI initial claims
and at least 35 percent of all UI initial claims processed through the SIDES E-Response.


Project Description


Project Timeline


Description of Costs

State Agency Staff Costs:

Type of Position        Total Hours         Cost Per Hour         Total


Contract Staff Costs:

Type of Position        Total Hours         Cost Per Hour         Total


Hardware, Software and Telecommunications Equipment:

Item Description        Cost Per Item       Quantity              Total


Other Costs:

Item                           Cost                         Explanation


Strategic Design:


 Measurable Improvements Expected in UI Operations:


                                  SECTION INSTRUCTIONS

SIDES Attestation: Provide an attestation that the state has completed implementation of
SIDES Web Services and SIDES E-Response. If implementation is ongoing, provide the target
completion date for that component. Indicate if the state is currently matching with all available
employers and TPAs, and if not, attest that the state will be matching with all available
employers and TPSs within 12 months.

Name of Project: Provide the name of the proposed UI IT modernization project to be carried
out by a consortium. If the state is submitting requests to fund more than one project, each
project should be identified by a different name that describes each project.

Amount of Funding Request for this Project: Provide the total amount of funds requested in
this individual project.

State Contact: Provide name, telephone number, and e-mail address of the individual who can
answer any questions relating to the proposal.

Project Description: Provide a brief description of the UI IT modernization project for which
the consortium is seeking funding and explain how the project will improve UI program
operations for the participating states.

Project Timeline (20 percent of total score): Provide a list of the dates and the milestones for
this project. The timeline should include the completion of the work, the designation of specific
tasks to appropriate parties, the issuance of a request for proposal, if appropriate, the projected
start date, the proposed dates to begin and complete testing (if necessary), and the proposed date
for full implementation of the project. These milestones and dates will be used to monitor the
implementation of the project.

Description of Costs (20 percent of total score): Provide an explanation of all costs included
in the project.

•   State Agency Staff Costs: Use the table format provided in this attachment to request state
    staff to support project implementation.

•   Contract Staff Costs: Use the table format provided in this attachment to request contract
    staff to support project implementation.

•   Hardware, Software, and Telecommunications Equipment: Provide an itemized list of
    hardware, software, and telecommunications equipment including the cost per item and the
    number of each item requested. A description of each item must provide any information


    needed to identify the specific item and a description of the size and capacity of each item if
    applicable.

•   Other: Identify each item of cost not covered elsewhere and provide the expected cost per
    item. The need for each item must be explained.

Strategic Design (30 percent of total score): The strategic design of the consortium UI IT
modernization project should provide evidence of a thorough analysis of current operations and
show that the design will meet the needs of the states in the consortium. This section must
include an explanation as to how the proposed system will improve UI operations and
accomplish the goals of the consortium.

Measurable Improvements Expected in UI Operations (30 percent of total score): Identify
the areas which will be improved or on-going costs reduced through implementation of the
proposed project. All improvements and cost reductions must be quantified rather than
generalized.

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2017/UIPL_22-17_Attachment_B_Acc.pdf)

Attachment B

               Additional Guidance for Completing the SF-424 and SF-424A


I. Application for Federal Assistance (SF-424)

    • Use the current version of the form for submission. Expired forms will not be accepted.
       SF-424, Expiration Date 10/31/2019, Office of Management and Budget (OMB)
       Control No. 4040-0004 (Grants.gov). http://www.grants.gov/web/grants/forms/sf-424-
       family.html
    • Section # 8, APPLICANT INFORMATION:
      • Legal Name: The legal name must match the name submitted with the System for
         Award Management (SAM). Please refer to instructions at https://www.sam.gov
      • Employer/Tax Identification Number (EIN/TIN) : Input your correct 9-digit EIN and
         ensure that it is recorded within SAM
      • Organizational DUNS: All applicants for Federal grant and funding opportunities are
         required to have a 9-digit Data Universal Numbering System (D-U-N-S®) number,
         and must supply their D-U-N-S® number on the SF-424. Please ensure that your
         state is registered with the SAM. Instructions for registering with SAM can be found
         at https://www.sam.gov. Additionally, the state must maintain an active SAM
         registration with current information at all times during which it has an active Federal
         award or an application under consideration. To remain registered in the SAM
         database after the initial registration, there is a requirement to review and update the
         registration at least every 12 months from the date of initial registration or
         subsequently update the information in the SAM database to ensure it is current,
         accurate, and complete. Failure to register with SAM and maintain an active account
         will result in a rejection of your submission.
      • Address: Input your complete address including Zipcode+4; Example: 20110-831.
         For lookup, use link at https://tools.usps.com/go/ZipLookupAction!input.action
      • Organizational Unit: Input appropriate Department Name and Division Name, if
         applicable
      • Name and contact information of person to be contacted on matters involving this
         application. Provide complete and accurate contact information including telephone
         number and email address for the point of contact
   • Section # 9, Type of Applicant 1: Select Applicant Type: Input “State Government”
   • Section # 10, Name of the Federal Agency: Input “Employment and Training
      Administration”
   • Section # 11, Catalog of Federal Domestic Assistance Number: include the accurate
      Catalog of Federal Domestic Assistance Number for the applicable Funding Opportunity;
      Example: 17.225 for Unemployment Insurance
   • Section # 12, Funding Opportunity Number and Title: Input the appropriate funding
      opportunity number and Title; Example: UIPL No. 1-17 – Health Coverage Tax Credit;
      TEGL 17-15 – WIOA Adult, Dislocated Worker and Youth Activities Program Allotments

   •    Section # 13, Competition Identification Number: include the advisory reference number or
        appropriate funding opportunity number
   •    Section # 14, Areas Affected by Project: Input the place of performance for the project
        implementation; Example “NY” for New York
   •    Section # 15, Descriptive Title of Applicant’s Project: Input the title of the Project
   •    Section # 16, Congressional Districts of:
               o       a. Applicant: Input the Congressional District of your home office. For
                   lookup, use link at www.house.gov with Zipcode + 4
               o       b. Program/Project: Input the Congressional District where the project
                   work is performed. If it’s the same place as your home office, input the
                   congressional district for your home office. For lookup, use link at
                   www.house.gov with Zipcode+4
        • Section # 17, Proposed Project
               o       a. Start Date: Input a valid start date for the project
               o       b. End Date: Input a valid end date for the project
        • Section # 18, Estimated Funding ($): Input the estimated funding requested. Ensure
           that the funding requested matches the TOTALS in Section B – Budget Categories of
           the SF424A
        • Complete Section #s 19 – 20 as per instructions in Form SF-424
        • Section # 21, Authorized Representative: Input complete information for your
           authorized signatory including contact information such as telephone number and
           email address. Remember to get the SF-424 signed and dated by the Authorized
           representative. If your Authorized Representative has changed from your previous
           application submission for this program, please include a letter from a higher level
           leadership authorizing the new signatory for the application submission

II. Budget Information -Non-Construction Programs (SF-424A)

       • Use the current version of the form for the submission. Expired forms will not be
           accepted. SF 424A, Expiration Date 01/31/2019, OMB Control No. 4040-0006
           http://apply07.grants.gov/apply/forms/sample/SF424A-V1.0.pdf
       • Section B – Budget Categories: Ensure that TOTALS in Section 6, Object Class
           Categories matches the Estimated Funding requested in the SF-424.
       • If indirect charges are specified in Section 6, Object Class Categories, then include either:
         (a) The approved indirect cost rate with a copy of the Negotiated Indirect Cost Rate
              Agreement (NICRA), a description of the base used to calculate indirect costs along
              with the amount of the base, and the total indirect costs requested; OR
         (b) For those applicant states that meet the requirements to use the 10% de minimis rate
              as described in 2 CFR 200.414(f), a description of the modified total direct cost base
              (see 2 CFR 200.68 for definition) used in the calculation along with the amount of the
              base, and the total indirect costs requested based on the 10% de minimis rate. The
              following link contains information regarding the NICRA at DOL:
              http://www.dol.gov/oasam/boc/dcd/index.htm

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2017/UIPL_22-17_Attachment_C_Acc.pdf)

Attachment C

                        General Instructions for the Completion of a Budget
                                       Information Narrative

The Budget Information Narrative must include the following information:

   •   Each line item on the SF‐424A must be explained, and the cost provided for each. Each
       line item on the SF‐424A pertains to projected costs at the recipient level, with the
       exception of the Contractual line item. Contractual should include costs at the project
       operator level.
   •   The total for each line item on the Budget Information Narrative must match the total
       for each line item on the SF‐424A.
   •   If a grant modification requests to realign the budget, the narrative must address the
       reason for the change in each affected line item.

1. Personnel – List all staff positions by title. State the annual salary of each
    person, the percentage of each person’s time devoted to the project, the amount
    of each person’s salary funded by the grant, and the total personnel cost for the
    period of performance.

2. Fringe Benefits – Provide the overall fringe benefit percentage which reflects the
    recipient’s organizational fringe, and list the components included, such as health
    insurance, FICA, retirement, etc. Provide the fringe benefit calculation for each
    staff position listed under the Personnel line item.

3. Travel – Specify the type and purpose of the travel, the number of travelers,
    approximate mileage, per diem rates, estimated number of trips, and other
    associated travel costs.

4. Equipment – Identify each item of equipment to be purchased. Equipment has an
    estimated acquisition cost per unit of $5,000 or more, and a useful life of one year
    or more. List the quantity and unit cost per item. Items with a unit cost of less than
    $5,000 are classified as supplies.

5. Supplies – Supplies include all tangible personal property other than “equipment.”
    Identify supply categories (e.g. office supplies, cell phones, personal tools for
    disaster clean‐up, etc.). List the cost associated with each category.

6. Contractual –
    • Identify each project operator and the funding allocation made to the
      organization.
    • Provide total projected costs (NOT for each project operator but as a lump
      sum) for each of the following categories: Administrative Costs, Career
      Services, Supportive Services, Training (itemize work-based training and
      classroom training), and Other Costs (itemized).

7. Construction – Construction costs are not allowed and this line must be left as
   zero. Minor alterations to adjust an existing space for grant activities (such as a
   classroom alteration) may be allowable. DOL does not consider this as
   construction and the costs must be shown on other appropriate lines such as
   Contractual.

8. Other – List each item in sufficient detail for DOL to determine whether the costs
   are reasonable or allowable. Costs included under Other should not fit into any
   other line item category.

9. Indirect Charges – If charging indirect costs to the grant, this line item must be
   populated. Include the current approved Negotiated Indirect Cost Rate Agreement,
   signed by the Federal cognizant agency, as an attachment to the grant application.