Solicitation - Healthy Fluid Milk_Request for Applications.pdf

Federal Nutrition Programs Healthy Fluid Milk Incentives (HFMI) Cooperative Agreement Project

Fiscal Year 2020 Request for Applications (RFA)

CFDA: 10.551

Release Date: May 18, 2020 Application Due Date: 11:59 PM, Eastern Standard Time (EST), June 17, 2020 Anticipated Award Date: August 2020

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FOOD AND NUTRITION SERVICE; U.S. DEPARTMENT OF AGRICULTURE

Federal Nutrition Programs Healthy Fluid Milk Incentives (HFMI) Cooperative Agreement Project

INITIAL ANNOUNCEMENT

CATALOG OF FEDERAL DOMESTIC ASSISTANCE: This program is listed in the Assistance Listings under the Catalog of Federal Domestic Assistance number 10.551.

DATES: Applications must be received by 11:59 PM, Eastern Standard Time (EST) on June 17, 2020. Applications received after this deadline will normally not be considered for funding (see Part IV, C of this RFA). Comments regarding this request for applications (RFA) are requested within six months from the issuance of this notice. Comments received after that date will be considered to the extent practicable.

EXECUTIVE SUMMARY: FNS requests applications for the Healthy Fluid Milk Incentives (HFMI) Cooperative Agreement Projects for fiscal year (FY) 2020 to support projects to increase the purchase of fluid milk among low-income consumers participating in the Supplemental Nutrition Assistance Program (SNAP) by providing incentives at the point of purchase. The amount available for FNS to support this program in FY 2020 is approximately $930,000.

Table of Contents

PART I—FUNDING OPPORTUNITY DESCRIPTION……

A. Legislative Authority and Background B. Purpose and Priorities C. Project Design D. Cooperative Agreement E. Program Policy F. Awardee and Firm Requirements

PART II—AWARD INFORMATION

A. Available Funding B. Award Period C. Funding Allocation Guidance D. Funding Restrictions

PART III—ELIGIBILITY INFORMATION

A. Eligible Applicants B. Cost Sharing or Matching C. Pre-Award Screening Requirements

PART IV—APPLICATION AND SUBMISSION INFORMATION

A. Electronic Application Package……… B. How to Submit an Application via Grants.gov C. Required Application Forms D. Content and Form of Application Submission E. Submission Dates and Times F. Application Deadline and Proof of Timely Submission……

PART V—APPLICATION REVIEW REQUIREMENTS

A. Review Criteria B. Evaluation Factors and Criteria C. Review and Selection Process…………… D. Determination of Award Amount………

PART VI—FEDERAL AWARD ADMINISTRATION INFORMATION…

A. Award Notice B. Administrative and National Policy Requirements C. Code of Federal Regulations and Other Government Requirements D. Reporting Requirements

PART VII—AGENCY CONTACT

PART VIII—OTHER INFORMATION

A. Use of Funds; Changes B. Confidential Aspects of Applications and Awards C. Regulatory Information

PART I - FUNDING OPPORTUNITY DESCRIPTION

A. LEGISLATIVE AUTHORITY AND BACKGROUND

The Supplemental Nutrition Assistance Program (SNAP), authorized under the Food and Nutrition Act of 2008, as amended, is the cornerstone of the Nation’s nutrition assistance safety net. The United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) certifies low-income Americans to participate in the program and authorizes and monitors retailers to accept SNAP benefits for eligible food products. Currently, around 40 million low-income Americans receive SNAP benefits and more than 250,000 retailers are authorized to accept SNAP benefits.

Section 4208 of the Agricultural Improvement Act of 2018, P.L. 115-334, (“Farm Bill”) authorizes USDA, on a competitive basis, to enter cooperative agreements with governmental entities or nonprofit organizations to carry out Healthy Fluid Milk Incentives (HFMI) projects.

The Further Consolidated Appropriations Act, 2020, P.L. 116-93, provides $930,000 for HFMI for fiscal year (FY) 2020. This amount includes funds that are allocated for use by FNS for an independent evaluation of Healthy Fluid Milk Incentive Projects (7%).

B. PURPOSE AND OBJECTIVES

The primary purpose of the HFMI is to develop and test methods to increase the purchase and consumption of qualifying fluid milk by SNAP households by providing them an incentive at the point of purchase at authorized retailer locations. “Qualifying fluid milk” includes all varieties of pasteurized cow’s milk that (1) is without flavoring or sweeteners, (2) is consistent with the most recent dietary recommendations, (3) is packaged in liquid form, and (4) contains vitamins A and D at levels consistent with the Food and Drug Administration, State, and local standards for fluid milk.

FNS plans to enter into a cooperative agreement with one selected awardee to carry out a HFMI project.

FNS reserves the right to make more than one award, and to use this solicitation and competition to award additional grants in this or the subsequent fiscal year should funding become available.

Key Objectives

All HFMI projects must meet the following objectives:

# Objectives 1 Increase the purchase and consumption of qualifying fluid milk by SNAP households by providing a financial incentive at the point of purchase.

2 Develop and implement a point of purchase solution(s) to deliver and redeem the HFMI incentives.

3 Partner with selected SNAP-authorized retailer(s) to operate the point of purchase incentive solution in compliance with all relevant SNAP regulations and requirements.

https://www.google.com/search?sxsrf=ALeKk01Q8vIIn1e5RC90bZzNAEwhgAK8ZA:1584628804793&q=agriculture+improvement+act+of+2018+pub.+l.+115-334&sa=X&ved=2ahUKEwiLsYqo4qboAhUUgnIEHYDpCOgQ1QIoA3oECBcQBA

To demonstrate that the applicant and its partners possess strong capability to work together to successfully carry out the obligations of this agreement in a timely, efficient, and effective manner, applicants must:

• Sign an agreement committing to work closely and cooperatively with its partners to support the project objectives and methods, including all steps necessary to meet the design, implementation, and operation requirements of the project, and

• Submit signed letters of commitment from each partner.

For those applications submitted in response to this RFA, FNS will give priority, in the following order, to projects that:

• Maximize the share of funds used for direct incentives to participants; and

• Include food retailers (firms) in a range of sizes and types in urban and rural areas.

Concurrent Participation in SNAP-Ed or GusNIP

Grantees that receive HFMI as well as SNAP-Ed and/or GusNIP funds must keep in mind the following guidelines:

• SNAP-Ed is an evidence-based program that helps people lead healthier lives. SNAP-Ed teaches people using or eligible for SNAP about good nutrition and how to make their food dollars stretch further. SNAP-Ed participants also learn to be physically active. While SNAP-Ed providers are encouraged to form partnerships and collaborations in order to leverage resources, SNAP-Ed funds may not be used to provide actual cash or other financial incentives.

• Gus Schumacher Nutrition Incentive Program (GusNIP) is a grant program targeted to increasing the purchases of fruits and vegetables by SNAP recipients through incentives provided at the point of purchase. While participation in both GusNIP and HFMI is permitted, each program has its own separate funding, participation, and reporting requirements. HFMI awardees participating in GusNIP must be careful not to comingle funds between the programs, and must meet each program’s participation and reporting requirements.

Communicate and promote HFMI incentive availability and information to SNAP households.

5 Provide training and technical support to participating SNAP-authorized retailer(s) in administering the incentives.

6 Facilitate participation in the HFMI evaluation through data collection and sharing.

7 Separately track, report, and fund HFMI benefits through modified versions of currently existing processes.

C. PROJECT DESIGN

The awardee(s) and its team of partners, including retailers, and optionally other community partners, must develop and operate the projects to test the impact of different methods and frameworks for providing incentives for the purchase of fluid milk at the point of purchase. Below are the required design parameters.

Target Foods

HFMI is intended to increase the purchase and consumption of fluid milk by SNAP households.

Qualifying fluid milk under HFMI is defined as all varieties of pasteurized cow’s milk that is:

1. Without flavoring or sweeteners,

2. Packaged in liquid form,

3. Consistent with the Food and Drug Administration, State, and local standards for fluid milk vitamin A and D levels, and

4. Consistent with the most recent dietary recommendations*.

*Note that the 2015-2020 Dietary Guidelines for Americans (DGAs) recommends the consumption of fat-free or low-fat (1%) milk for most people; however, the DGAs are expected to be updated in 2020, and any changes to the recommendations for fluid milk must be incorporated into the awarded projects should such changes occur.

Incentive Scenarios

The grantee must implement and test a HFMI incentive as stated below.

• SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive incentives that can be redeemed for any fluid milk.

For purposes of HFMI, “any fluid milk” must meet the first three requirements enumerated above, but does not need to be fat-free or low-fat (1%) milk to meet the current DGAs. (E.g. whole milk and 2% milk can count as “any fluid milk” but not “qualifying fluid milk”).

The grantee may also optionally include HFMI incentives that test the scenarios below.

• SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive incentives that can be redeemed only for qualifying dairy products.

Qualifying dairy products are any dairy products that have cow’s milk as the first listed ingredient on the ingredients list and meet the DGAs.

• SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive incentives that can be redeemed for any dairy product.

Any dairy product is any product that has cow’s milk as the first listed ingredient on the ingredients list, but the product does not need to be fat-free or low-fat (1%) dairy to meet the current DGAs. (E.g.

whole dairy products and 2% dairy products can count as “any dairy product” but not “qualifying dairy products”).

Site Selection

Proposed project site(s) may include a sub-State area, such as county, community, or group of contiguous communities, and should include a variety of readily accessible retailers offering a range of SNAP eligible foods, and a SNAP participant profile that is generally representative of the State’s caseload. Projects should include multiple project sites to ensure both rural and urban areas are represented and tested.

Retailer Selection

Applicants must establish partnerships with SNAP-authorized retailers located in the project site(s) prior to application under this RFA and, at a minimum, provide letters of commitment from each retailer location that will participate in the project. The retailers must typically sell fluid milk directly to households. Authorized retailers that do not typically sell fluid milk to households may not participate in HFMI. Ineligible retailers include wholesalers, meal services, such as drug/alcohol treatment programs, battered women’s shelters, communal dining facilities, group living arrangements, homeless meal providers, meal delivery services, senior and other residential centers, and specialty stores, such as bakeries, seafood, or meat specialty stores.

Ideally, projects site(s) would include some combination of supermarket chains, independent retailer grocers of all sizes and convenience stores.

Retailers with integrated electronic cash register (IECR) systems that include scanners and point-of-sale (POS) interfaces will need to reprogram their systems to identify targeted foods, calculate and transmit their value, and print resulting incentive values. Retailers using standalone (side-by-side) POS terminals will need to create and manually enter a separate subtotal of target foods based on visual identification. Their POS devices must be altered so that this additional value can be captured.

Incentive Delivery Mechanism

The awardee, in collaboration with its partners, may choose its own incentive delivery method(s), which may include, but is not limited to, incentives provided through State Electronic Benefit Transfer (EBT) systems, gift cards or loyalty cards that can be limited in some manner to the incentive scenarios noted under Section C, electronic or paper coupons. FNS is interested in testing different types of delivery methods where feasible.

All incentives, regardless of mechanism, must include an expiration date that is no more than a month from the date the incentive was earned.

Incentives delivered through a State’s EBT system would require substantial modifications to the EBT and retailer systems and procedures to enable them to:

• Recognize targeted foods and total their value;

• Transmit the information in the authorization request to the EBT system;

• Validate participating HFMI stores;

• Properly calculate and post incentive benefits (including account adjustments for any incentive food items returned by SNAP households);

• Generate appropriate approval messages to retailers; and

• Print incentive values on EBT receipts.

Applicants must describe the incentive delivery method(s) in detail as a part of this proposal.

Applicants proposing to implement an EBT incentive delivery method must provide letters of commitment from the SNAP State agency where the project will be located and, if applicable, from that State’s EBT contractor.

Incentives Amounts

The incentive should be limited up to a dollar-for-dollar match for the value of the target food purchased. Incentives should be offered to every SNAP household shopping at the partner retailers, though SNAP households are not required to redeem the incentives.

D. COOPERATIVE AGREEMENT

This grant will be awarded in the form of a cooperative agreement. This agreement is a legal instrument reflecting a relationship between the Federal government and the awardee. Substantial involvement is expected between the Federal government and the awardee when carrying out the activity in the agreement. Cooperative agreements are subject to the same administrative requirements as grants.

Application Instructions

To assist applicants in preparing an application, specifications and information on format, mandatory forms, and administrative procedures are provided in Part IV. This includes a list of critical application items that if not provided in or with the application will disqualify the applicant from further consideration.

Key Timeframes

The award period for the FY2020 Cooperative Agreement will be up to two (2) years. All funds must be obligated and all program activities under the cooperative agreement (other than activities relating to the close out of the cooperative agreement) must be completed by the end of the award period. The close-out of the agreement must occur no later than 90 days following the termination date of the agreement, and all obligations incurred under the grant must be liquidated by this date. Any funds that are not liquidated within 90 days following the end of the award period must be returned to FNS. In addition, the final progress reports are due to FNS no later than 90 days following the end of the award period. Assuming an August 2020 award date, the general expectation is that project operations will be completed by May 2022 and all project activities, other than close out activities, will be complete by August 2022. However, modifications to the timeline shall be considered depending on the specifics of the application plans.

The awardee will be expected to launch the project in a fully operational form within 9 months of executing a signed cooperative agreement. During this 9-month period, the awardee will be expected to make and test all administrative and accounting systems adjustments to set HFMI up for operations.

Once launched, the project operations will last for a 12-month period. The awardee will collect and report specified incentive issuance and redemption data during the entire project period on a monthly basis. After completion of the project, the awardee will participate in a final meeting with FNS where the awardee shall conduct a formal presentation for FNS. Biweekly conference calls during implementation and monthly conference calls thereafter to report on project progress/status are required. Formal progress and financial reports are due quarterly. A final project report, which includes an assessment documenting the process, challenges, and success of implementation and operations, and final financial report are required.

Applicant Proposed Enhancements

In addition to meeting the basic requirements of this RFA, applicants may wish to submit in their applications enhancements that make their projects more feasible or manageable. Enhancements may be submitted in the application as long as these do not detract from or interfere with the goals, rigor, and integrity of the project or contradict project design requirements. Such enhancements may include, but are not limited to: partnership with other entities which offer additional, or matching, funding for incentives. Any enhancements should be presented separately from the State’s core proposal in the application, and should include an accompanying budget proposal that is separate from the core proposal budget. It should be noted that any enhancements that include additional, or matching funding for incentives will not increase the applicant’s score for award purposes under this RFA. Matching fund must not be comingled with Federal Funds.

Project Roles and Responsibilities

FNS will provide direction and technical assistance to the awardee(s). FNS will approve major aspects of the project(s) in advance of implementation in a manner and timeframe agreed upon between the awardee(s) and FNS. FNS will establish a funding mechanism consistent with the cooperative agreement and provide the awardee with detailed directions on claiming and accounting for HFMI funds. FNS will evaluate quarterly progress reports and financial reports to ensure objectives, terms, and conditions of the agreement are met. FNS will participate in periodic collaborative meetings with the awardee.

The awardee(s) has overall responsibility for project planning, implementation and operations in cooperation with retailers and other partners as designated by the awardee(s). FNS encourages consultation and partnering with the appropriate WIC agencies who have experience with retailer and participant training on the purchase of fluid milk. The awardee(s) shall:

• Select/hire appropriately credentialed personnel to manage and operate the project;

• Delegate responsibilities to retailers or other partners as appropriate;

• Recruit and train retailers in all relevant aspects of HFMI and overseeing their activities to ensure project integrity and effectiveness, including:

o Amending Third Party Processors (TPP) and EBT-only agreements, as needed, to support system and procedural changes at participating retailers;

o Developing a plan for the tracking and use of incentives that ensures project integrity;

o Developing Memoranda of Understanding with participating retailers that have the capability to identify HFMI target foods to ensure they understand their responsibilities and meet milestones of the HFMI management plan.

o Informing and educating SNAP recipients on HFMI incentives and how to use them;

o Collecting, recording and reporting required data; and o Providing necessary support, resources, and oversight.

• Train other partners, as applicable, on the requirements and limitations of HFMI to ensure compliance;

• Maintain records on project costs;

• Seek FNS approval at critical junctures and checkpoints after award, including management plan, budget plan, training plans, EBT contractor’s design and implementation plan (if applicable), and retailer accountability plans that are submitted in preliminary form in the application;

• Meet specific obligations and approval points that will be further delineated by FNS in terms of the cooperative agreement between FNS and the awardee;

• Submit timely progress reports, financial reports, data reports, and special reports during the project and a final progress report and a final financial report;

• Participate in periodic collaborative meetings during the project, as well as orientation and close-out meetings with FNS; and

• Account for HFMI funds separately from SNAP administrative funds (i.e., SNAP State Agencies), any other grant award funds, or funds provided by any other partner, and establish financial and management reporting and controls to ensure that HFMI funds are not commingled with other funding sources or used inappropriately. A separate and distinct audit train must be established and maintained for the expenditure of HFMI funds that clearly demonstrates they are solely used for HFMI purposes.

Retailers must develop and maintain whatever EBT system or other incentive procedures are necessary to support HFMI, including check-out procedures to support HFMI, maintaining a list of foods eligible for the incentive (if applicable), as well as a list of target foods, and procedures for informing SNAP recipients of any incentive received at the point of purchase.

Other partners may be engaged to take facilitate HFMI projects. Duties of such partners should be described clearly in the application.

E. PROGRAM POLICY

This section deals with certain aspects of HFMI and SNAP policies as they pertain to the HFMI cooperative agreement program. This section also deals with policies regarding the participation of firms (e.g., convenience stores, grocery stores, farmers markets, direct-marketing farmers) in HFMI projects. “Firm” is defined at 7 CFR 271.2. Questions regarding the policies discussed below may be directed to marga.ortiz@usda.gov.

Incentive Restrictions

HFMI Qualifying Fluid Milk. An HFMI project must incentivize the purchase of HFMI qualifying fluid milk in accordance with Part I.C. - Project Design.

Unallowable Incentives. HFMI awardees may not incentivize specific brand names or product lines of fluid milk, nor may HFMI awardees incentivize only a specific subset of qualifying fluid milk that are not considered by FNS to advance the spirit or purpose of HFMI. In addition, HFMI awardees may not provide incentives earned through a “no purchase required” mechanism.

Communication/Incentive Promotion

Applicants must include a detailed plan for communicating information about and promoting HFMI incentives to SNAP households in their grant application.

For each distinct HFMI project, the awardee must ensure the following is communicated to SNAP households:

• Availability of HFMI incentives and the conditions for receiving the incentives;

• Foods for which an incentive is offered, and the target foods that must be purchased with incentives;

• Location of participating firms;

• How to track the amount of incentives earned;

• How to use the incentives earned;

• The expiration date of the incentives earned; and

• Where to get additional information.

Awardees are encouraged to partner with State SNAP agencies to assist in providing promotional material with the above information to SNAP households. Examples of allowable State SNAP agency promotional activities include:

• Making HFMI promotional materials available at local SNAP offices;

• Allowing promotional videos to be played at local SNAP offices; or

• The State Agency sending awardees’ promotional materials through direct mail to area SNAP recipients. However, State Agencies may not provide HFMI awardees with a list of SNAP recipients’ mailing addresses, even under a MOU.

Additionally, if incentives are offered through EBT or other electronic system, including gift cards that can be limited to approved incentive scenarios noted in section C above, then the incentive amount and remaining accumulated value of incentives must be communicated to HFMI households at the point of purchase in the form of a message on a cash register receipt. An expiration date for incentives must also be included. For example, the receipt could read “Fluid Milk Incentive Earned: $__.__;

Remaining Incentive Balance: $__.__. Incentives Expire: __/__/__” immediately above the remaining SNAP balance (which is already a SNAP receipt requirement).

If the awardee wishes to significantly change this plan after HFMI funds have been awarded, then the awardee must notify FNS in writing and in detail regarding the change and the budget impact, and receive approval for the proposed change.

Retailer Training and Technical Support Plan

Applicants must provide a plan for training cashiers and other on-site staff of participating firms on the mechanics, as well as the requirements and limitations of HFMI to ensure compliance. The proposal must also describe the process for addressing and resolving any technical, policy or operational issues that may arise at firm locations during the course of project implementation and ongoing operations and how that process will be communicated to participating firms.

A detailed description of the resolution process should include information on the organizations/partners responsible for such activities, including hours of availability, and expected response timeframes.

Process Evaluation

Given the limited funds available, FNS will conduct a process evaluation, which focuses on program activities rather than outcomes. As such, FNS will develop and monitor indicators of progress towards objectives by examining HFMI project activities in terms of (1) the project’s administrative costs (2) the amount of incentives distributed and redeemed. For any awardee that gives out sub-awards, the data should be reported at the sub-awardee level. Also the data should be reported separately by retailer outlet (e.g.

individual stores/markets) and incentive design (e.g. how incentive is earned and for what it can be redeemed). Awardees are required to have a Data Use Agreement with each firm or sub-grantee that guarantees each firm will provide information required for the following core program data sets:

• If additional funding other than FNS grant is used to support this project, grantee must be able to separately identify and account for any SNAP funds used for the incentive program and for administrative costs ;

• Breakout of SNAP grant funding spent on administrative costs versus incentives to SNAP participants;

• Amount of incentives issued/distributed to SNAP participants;

• Amount of incentives redeemed by SNAP participants;

• Amount of any unredeemed incentives that were reissued (to same or to other SNAP participants);

• Amount of incentives expired; and

• If possible, amount of incentives issued/distributed and redeemed by households

Proposals should discuss any opportunities and challenges with the data collection requirements and how they will be addressed. Proposals should also describe any previous process, outcome, and impact evaluation experience with SNAP participants or other related food programs. The proposal should demonstrate the capacity and willingness to comply with the data collection and evaluation requirements.

F. AWARDEE AND FIRM REQUIREMENTS

Sales Tax

In accordance with section 4405(a)(3) of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill), as amended by Section 4208 of the Agricultural Act of 2014 (the 2014 Farm Bill), no State or local sales tax shall be collected on any purchase of food made using HFMI incentives.

Equal Treatment Because the statutory language of the 2018 Farm Bill authorizes HFMI projects to provide fluid milk incentives specifically to SNAP clients, the equal treatment provision of 7 CFR 278.2(b) and 7 CFR 274.7(f) does not apply to HFMI awardees for the purpose of providing incentives under the HFMI cooperative agreement. However, other than providing HFMI incentives to SNAP households, awardees must ensure that the same terms and conditions apply to purchases made by individuals with SNAP benefits and with incentives provided under HFMI as apply to purchases made by individuals who are not members of households receiving benefits.

Refunds

HFMI incentives are intended to increase the consumption of qualifying fluid milk and must be spent accordingly. The returning or refunding of HFMI incentives is not consistent with the intention of the HFMI. While spoiled or undesired food products purchased with HFMI incentives may be exchanged for equivalent food products at the firm’s discretion, HFMI incentives may neither be refunded with cash, nor refunded onto a SNAP household’s EBT card through a refund transaction on an EBT POS device. If an individual farmer that produces and sells dairy items is participating using a system that utilizes a distinct HFMI benefit (i.e., valid only for HFMI qualifying fluid milk), such HFMI benefits may only be redeemed as intended at the farmers’ market; they may not be refunded or exchanged.

SNAP Firm Data Confidentiality

Under 7 CFR 278.1(q), certain forms of SNAP firm information are prohibited from disclosure. Local and State SNAP Agencies may not disclose such firm data to HFMI awardees. The names and addresses of SNAP authorized firm are available to the public and can be obtained via the SNAP Retailer Locator.

The FNS number for individual firms is not public information and is subject to restrictions in SNAP regulations at 7 CFR 278.1(q); therefore, it must be obtained directly from the firm. Likewise, SNAP redemption or transaction data at the individual firm level is considered protected data and must be obtained directly from the firm. HFMI awardees should work in close concert with their participating firm in order to obtain any such required information. Both the FNS number and individual firm transaction/redemption data, while necessary for data collection and evaluation purposes, are protected and shall not be published in a public report. SNAP firm transactions/redemptions should only be reported in aggregate. Whenever transmitting any confidential SNAP firm data to FNS, this data must be password protected.

https://www.fns.usda.gov/snap/retailer-locator

Changes in HFMI Awardee Primary Point of Contact

HFMI awardees are required to inform the USDA regarding any changes in their HFMI project’s primary point(s) of contact. At the very least, this means that HFMI awardees must inform FNS points of contact of any change to their Project Directors (PDs) no more than 10 calendar days after the change occurs. HFMI awardees are also strongly encouraged to inform FNS points of contact of changes to other primary awardee points of contact in a timely fashion. The FNS points of contact are located under Part VII of this RFA. As necessary, FNS will provide updates to USDA points of contacts to all awardees.

SNAP Authorization for Participating of Retailers

It is necessary to partner with retailers to conduct a HFMI project. All retailer partners must be SNAP-authorized and in good standing with FNS at the time of award in order to participate in HFMI.

Memorandum of Understanding (MOU) between Awardee and Retailers.

HFMI awardees also must work with their retailer partners to enter into a MOU before that retailer can participate in the HFMI project. The MOU must be signed and dated by the awardee project director(s) and all of the firm’s owners. If the awardee is working with a chain of centrally-owned and operated firms, then one MOU that includes all relevant information on every participating firm location will be sufficient. The MOU must be accompanied by a coversheet bearing the HFMI awardees name, the firm’s name(s), the firm’s FNS number(s), and the phrase “HFMI awardee-Firm MOU Attached”.

The MOU must be submitted by the firm to the SNAP Retailer Service Center before USDA can approve the firm to participate in a HFMI project and must include the following information:

• The name of the firm (including any other names the firm does business as or under);

• The street address of the firm;

• The mailing address of the firm (if different than the street address of the firm);

• The firm’s FNS number;

• A detailed description of the incentives being offered at the firm as part of the project;

• An acknowledgement that the firm will provide the awardee with all incentive -related data necessary for a process evaluation of the HFMI project and that this data will be furnished to FNS;

• An acknowledgement that the firm will follow all relevant HFMI and SNAP rules including, but not limited to, that the firm will:

o Accept HFMI incentives only for qualifying fluid milk or qualifying dairy products in accordance with the HFMI rules;

o Never accept incentives for ineligible products (i.e., non-food, alcohol, tobacco, or hot food products) or cash (i.e., trafficking);

o Never provide cash or SNAP EBT change or refunds for incentives;

o Never accept incentives to pay credit accounts;

o Never accept incentives from individuals known not to be legally entitled to possess incentives; and o Never knowingly provide false information of a substantive nature regarding their participation in the grant project.

• An acknowledgement that any awardee’s failure to abide by HFMI program rules may result in rescission, in whole or in part, of Federal funds provided under the HFMI Cooperative Agreement.

• An acknowledgement that awardees are responsible for overseeing firms participating in their

HFMI project to ensure that SNAP and HFMI rules are followed. Awardees will be held responsible for instances of noncompliance that occur at any of their participating firms.

Misuse of Grant Funds.

https://www.fns.usda.gov/snap/RSC

In cases in which HFMI funds have been spent on unallowable expenses or otherwise misallocated, the USDA will require that the grantee repay the full amount of grant funds that have been misallocated.

Noncompliance with Program Policy.

Awardees and their participating firms are expected to comply with all of the policies and requirements laid out in this RFA document as well as any HFMI or SNAP policies or requirements further clarified in Q&As, memoranda, or other relevant USDA documents (including all applicable provisions of the Food and Nutrition Act of 2008 and SNAP regulations at 7 CFR 278). Awardees will be notified in writing of instances of noncompliance and will face serious repercussions for repeated instances of noncompliance.

Examples of such noncompliance include, but are not limited to, failure to timely report a change of Project Director (PD), allowing unapproved firms to participate in a project, and/or incentivizing ineligible products.

First Instance of Noncompliance. If the awardee or the awardee’s firms fail to comply with HFMI or SNAP rules and this is the first instance of noncompliance associated with that awardee, then the USDA will notify the awardee of the issue in writing and establish a timeline for corrective action. The general timeline for such corrective action is 30 calendar days, although the timeline may be extended or shortened depending on the nature and extent of the issue at hand at the discretion of the USDA.

If the grantee fails to take required corrective action within the established timeline, then the USDA will immediately suspend that awardee’s access to HFMI funds. Access to HFMI funds will be restored when corrective action has been taken.

Second Instance of Noncompliance. If the awardee or the awardee’s firms fail to comply with HFMI or SNAP rules and this is the second instance of noncompliance associated with that awardee, then the USDA will immediately suspend that grantee’s access to HFMI funds, notify the awardee of the issue in writing and establish a timeline for corrective action. The general timeline for such corrective action is 30 calendar days, although the timeline may be extended or shortened depending on the nature and extent of the issue at hand at the discretion of the USDA. Access to HFMI funds will be restored when corrective action has been taken.

Third Instance of Noncompliance. If the awardee or the awardee’s firms fail to comply with HFMI or SNAP rules and this is the third instance of noncompliance associated with that awardee, then the USDA will immediately suspend that awardee’s access to HFMI funds, notify the awardee of the issue in writing and establish a timeline for corrective action. In addition, the USDA will rescind 10% of the total Federal HFMI funding. The general timeline for such corrective action is 30 calendar days, although the timeline may be extended or shortened depending on the nature and extent of the issue at hand at the discretion of the USDA. Access to the remaining HFMI funds will be restored when corrective action has been taken.

Further Instances of Noncompliance. If the awardee or the awardee’s firms fail to comply with HFMI or SNAP rules and more than three such instances of noncompliance have already been documented, then the USDA will rescind the remaining Federal HFMI funds in their entirety.

Considering a History of Noncompliance during Application Evaluation. A history of noncompliance with HFMI or any other USDA grant policies and requirements will be considered during the HFMI application evaluation process.

Acknowledgement of USDA Support

As outlined in 2 CFR 415.2, awardees shall include acknowledgement of USDA Food and Nutrition Service support on any publications written or published with award support and, if feasible, on any publication reporting the results of, or describing, an award-supported activity. Awardees shall include acknowledgement of USDA Food and Nutrition Service support on any audiovisual which is produced with award support and which has a direct production cost of over $5,000.

• When acknowledging USDA support, use the following language: "This material is based upon work that is supported by the Food and Nutrition Service, U.S. Department of Agriculture.” Awardees should follow the USDA Visual Standards Guide when using the USDA logo.

• Award recipients may be asked to host USDA officials for a site visit during the course of their award. All costs associated with the site visit will be paid for by USDA and are not expected to be included in award budgets.

PART II - FEDERAL AWARD INFORMATION

A. AVAILABLE FUNDING

FNS will award this grant in the form of a cooperative agreement to enable collaboration between FNS and the awardee during project development and project execution. Awardee(s) will be selected to receive up to a maximum award amount of $930,000. However, the actual award amount will depend on the specifics of the proposed plan and the reasonableness of the associated budget.

Upon receipt of a properly executed cooperative agreement, FNS will provide funding for the approved agreement through the Grant Award/Letter of Credit process.

All costs must be allowable, allocable, necessary, and reasonable in accordance with 2 CFR part 200, where appropriate. The cost of incentives must be allowable under the applicable cost principles in 2 CFR part 200, Subpart E.

FNS reserves the right to use this solicitation and competition to award additional grants this year or the subsequent fiscal year, should additional funds become available.

B. AWARD PERIOD

The award period for the FY2020 Cooperative Agreement will be up to two (2) years. All funds must be obligated and all program activities under the cooperative agreement (other than activities relating to the close out of the cooperative agreement) must be completed by the end of the award period. The close-out of the agreement must occur no later than 90 days following the termination date of the agreement, and all obligations incurred under the grant must be liquidated by this date.

Any funds that are not liquidated within 90 days following the end of the award period must be returned to FNS. In addition, the final progress reports are due to FNS no later than 90 days following the end of the award period. Please see the section on Federal Award Administration Information for details on reporting requirements.

FNS anticipates awarding the Cooperative Agreement through a competitive process by August 2020. Awardees may use award funds for the duration of the project period. The period of performance begins in August 2020 and will not exceed two [2] years from the start date, or August 2022.

https://www.usda.gov/sites/default/files/documents/visual-standards-guide-january-2013.pdf

C. FUNDING ALLOCATION GUIDANCE

Funds provided under HFMI must primarily provide financial incentives at the point of sale to encourage SNAP recipients to purchase more fluid milk. As a result, a minimum of 51% of total Federal grant funds should be budgeted to and spent on incentives.

Project promotion, outreach and advertising is essential to a successful HFMI project. As a result, a minimum of 5% of total Federal grant funds should be spent on these activities.

Administration, including Recordkeeping, Reporting, data collection and other related costs are important to for a successful HFMI project. A minimum of 25% of total grant funds should be spent on these activities.

Costs that are indirect in nature, and included in entities’ indirect cost pool fall under the indirect cost rate.

Summary of HFMI Funding Allocation Guidelines:

• Incentives ≥ 51%

• Promotion, Outreach, and Advertising ≥ 5%

• Administration, including Recordkeeping, Reporting and Data Collection ≥ 25%

D. FUNDING RESTRICTIONS

Indirect Costs

Applicants may request full indirect costs, subject to statutory limitations. In order to do so, the applicant must use the current negotiated indirect cost rate established by its cognizant Federal agency (the agency that provides the most funds). If awarded, the applicant will be required to produce a negotiated indirect cost rate agreement from the cognizant agency in order to recover indirect costs. If unable to obtain a negotiated rate from its cognizant agency, the applicant is not permitted indirect cost reimbursement.

Rather, the applicant may only be reimbursed for allowable direct costs. Violation of cost accounting principles is not permitted when re-budgeting or charging costs to awards. Rather, costs must be consistently charged as either indirect or direct costs.

Sub-award Restriction

The applicant is expected to perform a substantive portion of the project and no more than 25 percent of HFMI funds may be sub-awarded or subcontracted. FNS will allow applicants to indicate in their proposal if they intend to sub-award or subcontract more than 25 percent of the HFMI. This deviation will require FNS approval. Projects may divide their budget allocations between partners as it fits their work plan. (For additional knowledge or expertise that is not available within the applicant organization, funds for expert consultation may be included in the “All Other Direct Costs” section of the proposed budget.)

Unallowable Costs

Funds awarded under this may not be used for any purpose that limits the use of benefits provided under the Food and Nutrition Act of 2008. Similarly, funds awarded may not be used for the purpose of providing access to ineligible items under the Food and Nutrition Act of 2008. Examples include, but are not limited to, giveaways of alcohol, tobacco, firearms, and lottery tickets.

Under no circumstances may HFMI awardees engage in any activities intended to persuade or recruit individuals to apply for SNAP benefits. The use of Federal and/or match funds to employ personnel tasked with enrolling individuals in SNAP is strictly prohibited.

Promotional activities must be limited to factual statements and HFMI awardees must generally avoid emotional appeals in their promotional activities. Promotional activities funded with Federal and/or match funds:

• Must present factual statements intended to inform, not to persuade,

• May include locational information about firms (i.e., the address of firms participating in the grantee's project),

• May also specify that firms accept SNAP and EBT (this includes appropriate logo use as outlined here:

Using the SNAP Logo, and

• May include information describing the mechanics of the grantee's project (e.g., spend $1 on milk and earn $1 to spend on other dairy products).

Regardless of format, the following example would be an unallowable expense:

"Sign up to receive SNAP benefits and then you can also get 50% off a gallon of milk at Main Street Grocers! Drinking milk will keep you and your family healthy and happy, so come on down on the corner of Maple and Elm Streets!"

Unallowable costs may not be paid for with either Federal or matching funds. If you are unclear as to whether a specific promotional material is acceptable it can be submitted to SM.fn.IncentiveProgram@usda.gov for review by FNS.

Non-Supplantation

Grants must be used to supplement, not supplant, non-Federal funds that would otherwise be available for expenditure on incentive program activities. Grant funds must be used to fund new projects. They may not be used to replace State or local funds that would, in the absence of Federal aid, be available or forthcoming for incentive programs.

PART III - ELIGIBILITY INFORMATION

A. ELIGIBLE APPLICANTS

Eligible entities include governmental or 501(c) nonprofit entities. A government entity is a State, local, or tribal agency. A nonprofit entity is any organization or institution with IRS 501(c) status or accredited institutions of higher education, where no part of the net earnings benefit any private shareholder or individual. All applicant organizations must be domestic entities and shall be owned, operated, and located within the 50 United States, the District of Columbia, Guam, or the United States Virgin Islands. All applicants must demonstrate in their application that they are a domestic entity and either a government agency or a 501(c) non-profit organization. Each eligible applicant may only submit one application in response to this grant solicitation. Suspended or debarred organizations are ineligible to apply.

In addition, applicants must meet the following requirements: (1) have experience in: (i) efforts to reduce food insecurity in the community, including food distribution, improving access to services, or coordinating services and programs; or (ii) experience with the SNAP program; (2) demonstrated competency to implement a project, provide fiscal accountability, collect data, and prepare reports and other necessary documentation; and (3) possess a demonstrated willingness to share information with https://www.fns.usda.gov/snap/using-snap-logo mailto:SM.fn.IncentiveProgram@usda.gov researchers, evaluators, practitioners, and other interested parties, including a plan for dissemination of results to stakeholders.

Partners and Collaborators

Applicants are encouraged to seek and create partnerships with public or private, non-profit or for-profit entities, and/or other appropriate professionals; community-based organizations; and local government entities; and/or partnering entities for the purposes of providing additional resources and strengthening under- resourced communities. Only the applicant must meet the requirements specified above for grant eligibility. Project partners and collaborators need not meet the eligibility requirements. When planning collaborations awardees may sub-award to organizations not eligible to apply provided such organizations are necessary for the successful completion of the project. See Part II, D, Funding Restrictions.

Fiscal Agent. If a non-profit organization cannot accept Federal funds directly, a letter must be included in the application stating that in the event the application results in an award, the award funds must be administered through a fiscal agent organization on their behalf. This agent must be identified in the letter from the applicant and the letter must be countersigned by an authorized representative of the fiscal agent organization. The letter must include the fiscal agent’s point of contact, address, telephone number, fax number and e-mail address. In the event an application is recommended for funding, FNS will request that both the applicant institution/organization and the fiscal agent organization submit complete management information. Include documents showing the organization’s non-profit status when responding to this request.

B. COST SHARING OR MATCHING CONSIDERATIONS

Cost sharing and matching are not required to apply for award funds. However, FNS supports collaboration among local, State, regional, or national partnerships that leverage assets to most effectively reach the goals associated with this solicitation. Collaboration may include sub-grants and in-kind contributions of resources by partner organizations. In-kind contributions may include donations of services, equipment, meeting space, or other resources to be used specifically for the proposed project. The value of these in-kind contributions should be calculated and noted both in the Project Narrative and the Budget Narrative. Commitments of in-kind contributions and/or cost-sharing should be demonstrated through letters of commitment and included in the application package. Any enhancements that include additional, or matching funding for incentives will not increase the applicant’s score for award purposes under this RFA.

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