eHIP RFA FINAL-3.17.23 Revision.FNL.pdf

Federal Nutrition Programs Electronic Healthy Incentives Project (eHIP) Cooperative Agreement Project

Fiscal Year 2023 Request for Applications (RFA)

CFDA: 10.561

Release Date: January 19, 2023 Application Due Date: 11:59 PM, Eastern Standard Time (EST), March 31, 2023 Anticipated Award Date: June 2023

OMB Burden Statement: The valid OMB control number for this information collection is 0584-0512. The estimated average time required to complete this information collection is 39 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. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to: U.S. Department of Agriculture, Food and Nutrition Services, Office of Policy Support, 1320 Braddock Place, 5th Floor, Alexandria, VA 22314 ATTN: PRA (0584-0512). Do not return the completed form to this address.

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

Federal Nutrition Electronic Health Incentives Project (eHIP) 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 10.561.

DATES: Applications must be received by 11:59 PM, Eastern Standard Time (EST) on March, 31, 2023. 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 Electronic Healthy Incentives Project (eHIP) Cooperative Agreement Projects for fiscal year (FY) 2023 to support projects that develop innovative strategies to prioritize nutrition security among low-income consumers participating in the Supplemental Nutrition Assistance Program (SNAP) by testing the delivery of incentives for healthy foods using State’s electronic benefit transfer (EBT) systems. The total funding amount available for FNS to support this program in FY 2023 is approximately $25,000,000.

This Application Checklist provides applicants with a list of the required documents. However, FNS expects that applicants will read the entire RFA prior to the submission of their application and comply with all requirements outlined in the solicitation. The Application Checklist is for applicant use only and should not be submitted as part of the Application Package.

Complete the following at least four weeks prior to submission:

Obtain a Unique Entity Identifier (UEI);

Register the UEI number in the System for Award Management (SAM); and, Register in Grants.gov.

When preparing your application, ensure:

Your application format and narrative meet the requirements included in Section IX “Application and Submission Information.” This includes page limits, priorities outlined in Section IX, and all necessary attachments.

When preparing your budget, ensure the following information is included:

Cost Allocation o If other programs will benefit from this project, the costs supported by the grant will only fund the SNAP aspects of the project.

Personnel o Proposal includes all key employees paid for by the grant.

o Proposal identifies employees by name, position, and title.

o The percentage of time the Project Director will devote to the project in full-time equivalents (FTEs).

o Your organization’s fringe benefit rate and amount, as well as the basis for the computation.

o The type of fringe benefits to be covered with Federal funds.

Travel o Expenses are itemized and explained in the budget narrative. For example: origination/destination points, number and purpose of trips, number of staff traveling, mode of transportation, and cost of each trip.

o Attendee objectives and travel justifications are included in the budget narrative.

o Basis for lodging estimates are identified in the budget narrative.

Equipment o Equipment costs are justified in the budget narrative.

o Types of equipment, unit costs, and number of items are listed in the budget narrative, along with basis for cost per item.

Supplies o Types of supplies, unit costs, and number of items are listed in the budget narrative, along with basis for cost per item.

Contractual and Consultant Costs o The need for a contractor has been identified in the proposal, and the cost is justified in the budget narrative.

o Applicants that are required to issue a bid have provided a narrative explaining the requirement and provided a reasonable estimate for contractual and consultant costs.

Indirect Cost Information o Indirect cost information (either a copy of a Negotiated Indirect Cost Rate Agreement (NICRA) or if no agreement exists and the applicant has never been approved for a NICRA, they may charge up to 10% de minimis). If applicant is requesting the de minimis rate or indirect costs are not requested, please indicate this in the budget narrative.

Other o Any other costs associated with this project are itemized, explained, and reasonable

When submitting your application, ensure you have submitted the following:

SF-424 – Application for Federal Assistance (fillable PDF in Grants.gov) SF-424A – Budget Information and Instruction Form (fillable PDF in Grants.gov) SF-424B – Assurances for Non-Construction Programs (fillable PDF in Grants.gov) SF-LLL – Disclosure of Lobbying Activities FNS-906 – Grant Program Accounting System & Financial Capability Questionnaire (Appendix Pg.

51) Negotiated Indirect Cost Rate Agreement (PDF - Upload using the “Add Attachments” button under SF-424 item #15)

When applicable, application packages are required to include the following documents:

All non-profit organizations must include their 501(c)(3) determination letter issued by the Internal

Revenue Service (IRS) http://www.grants.gov/web/grants/forms.html http://www.grants.gov/web/grants/forms.html http://www.grants.gov/web/grants/forms.html http://www.grants.gov/web/grants/forms.html

Table of Contents

PART I - FUNDING OPPORTUNITY DESCRIPTION

A. AUTHORITY AND BACKGROUND

B. PURPOSE AND OBJECTIVES

Key Objectives

C. FY 2023 FUNDING PRIORITIES

D. PROJECT DESIGN

1. Qualifying Foods

2. Incentive Models

3. Incentive Redemption Method

4. Incentives Amount

5. Site Selection

6. Retailer Selection

7. Incentive Delivery Mechanism- Integration with Current EBT System

8. Household eHIP Earnings Information

9. Communication/Outreach Promotion

10. Retailer Training and Technical Support Plan

11. Data Collection and Evaluation

12. Proposed Project Enhancements

13. Key Timeframes

E. COOPERATIVE AGREEMENT

Project Roles and Responsibilities

F. PROGRAM POLICY

Incentive Restrictions Concurrent Participation in SNAP-Ed, GusNIP, and/or HFMI Proposal Changes

G. AWARDEE AND FIRM REQUIREMENTS

PART II - FEDERAL AWARD INFORMATION

A. AVAILABLE FUNDING

B. FUNDING ALLOCATION GUIDANCE

C. ALLOWABLE COSTS

PART III - ELIGIBILITY INFORMATION

A. ELIGIBLE APPLICANTS

B. COST SHARING OR MATCHING CONSIDERATIONS

C. PRE-AWARD SCREENING REQUIREMENTS

PART IV - APPLICATION AND SUBMISSION INFORMATION

https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867708 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867708 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867734 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867734 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867738 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867738 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867742 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867742

Content and Form of Application Submission A. Content of Application Submission

1. Cover Sheet

2. Table of Contents

3. Work Plan with Implementation Timeline

4. Data Collection

5. Management Plan

6. Budget

7. Application Budget Narrative

8. Activities/Indicators Tracker

B. Required Grant Application Forms Appendices

C. Submission Date D. Preparing for Electronic Application Submission through Grants.gov E. How to Submit an Application via Grants.gov F. Grants.gov Receipt Requirements and Proof of Timely Submission

PART V - APPLICATION REVIEW INFORMATION

A. REVIEW CRITERIA

Evaluation of Grant Application Criteria

B. EVALUATION FACTORS AND CRITERIA

C. REVIEW AND SELECTION PROCESS

D. DETERMINATION OF AWARD AMOUNT

PART VI - FEDERAL AWARD ADMINISTRATION INFORMATION

A. FEDERAL AWARD NOTICE

B. ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS

Confidentiality of an Application Safeguarding Personally Identifiable Information Conflict of Interest and Confidentiality of the Review Process Administrative Regulations

C. CODE OF FEDERAL REGULATIONS AND OTHER GOVERNMENT REQUIREMENTS

Government-wide Regulations

D. REPORTING REQUIREMENTS

Financial Reports Performance Progress Report (PPR)

PART VII - FEDERAL AWARDING AGENCY CONTACTS

PART VIII - OTHER INFORMATION

Debriefing Requests https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867759 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867759 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867765 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867765 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867777 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867777 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867778 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867778

APPENDIX

eHIP Systems Functionality and Requirements RFA Budget Narrative Checklist Legal Organization Name:

FNS-908 Performance Progress Report (PPR) – For Reference Only https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867780 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867780 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867780 https://usdagcc.sharepoint.com/sites/FNS-SNAP-IPIDRPD/Shared%20Documents/General/eHIP%20RFA/eHIP%20RFA%20final%20draft%20-%201.16.23%20Final%20Check%20In.docx#_Toc124867780

A. 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 1001 of the American Rescue Plan Act of 2021, P.L. 117-2, (“ARPA”) authorized USDA $4,000,000,000 for Food Supply Chain and Agriculture Pandemic Response, including the ability to provide grants and other assistance to maintain and improve food and agricultural supply chain resiliency.

The Department authorized $25,000,000, on a competitive basis, to enter into cooperative agreements with State agencies to carry out Electronic Healthy Incentive Projects (eHIP) under USDA’s Framework to Transform the Food System.

FNS announces, through this Request for Applications, the availability of a maximum of $25,000,000 in total grant funding to award as many as three cooperative agreement grants. Eligible entities are the 53 State Agencies who administer SNAP benefits. This award is contingent upon the availability of funds.

Awards are contingent upon funds having been apportioned internally and made available to FNS.

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

In 2012, FNS tested a way of making fruits and vegetables more affordable for participants in SNAP through the Healthy Incentives Pilot (HIP). Under HIP, SNAP participants received 30 cents for every SNAP dollar spent on qualifying fruits and vegetables at participating SNAP-authorized firms. The pilot’s incentive model integrated incentive delivery and redemption through the State’s Electronic Benefit Transfer (EBT) processor, which loaded the incentive directly onto the household’s EBT card (i.e., EBT integration).

The final HIP evaluation presented positive findings on the impacts of financial incentives for fruit and vegetable consumption and as a result, FNS has witnessed a significant increase in healthy foods incentives offered to SNAP households. In FY 2022, the Gus Schumacher Nutrition Incentive Program (GusNIP) awarded $38,700,000 to 8 organizations, to implement fruit and vegetable incentive projects to SNAP households; FNS approved six incentive waiver requests for independent retailers to offer fruit and vegetable incentives across seven States; and FNS awarded $3,000,000 for a grantee to implement a healthy milk incentive project across six States. The increased purchase for fruit and vegetables resulting from eHIP will maintain and strengthen the delivery infrastructure of such foods, benefitting supply chain resiliency.

While HIP tested the impact of financial incentives and the feasibility of EBT integration, eHIP will evaluate the administrative costs when administered at the State-level through the State’s EBT processor and compare these costs to other incentive programs. FNS’ goal is to maximize funds directed to SNAP households, establish methods for consistent and effective incentive delivery, and decrease overall

PART I - FUNDING OPPORTUNITY DESCRIPTION

https://www.congress.gov/117/plaws/publ2/PLAW-117publ2.pdf https://www.fns.usda.gov/snap/hip administrative costs. The final eHIP project will be independently evaluated by an evaluation contractor competitively selected by FNS.

B. PURPOSE AND OBJECTIVES

The primary purpose of the eHIP project is to develop innovative strategies to prioritize nutrition security. eHIP will enable grantees to provide incentives under these grants and to test the delivery of incentives through States’ electronic benefit transfer (EBT) systems, which is also known as EBT integration, to incentivize and reward SNAP households for purchasing healthy foods. Applicants must offer SNAP households a set percentage, up to 100%, of the cost of qualifying fruits and vegetables (F/V) purchased with SNAP benefits back onto their EBT card to be redeemed for future purchases of qualifying F/V or any SNAP-eligible food product, depending on the model selected. For the purpose of this grant, eligible incentive foods are fruits and vegetables identified for increased consumption with the most recent dietary recommendations as defined under section 9(j) of the Food and Nutrition Act of 2008, as amended. In turn, FNS anticipates the increased purchase of fruits and vegetables will support the delivery infrastructure of such foods and maintain and strengthen supply chain resiliency.

eHIP is focused on leveraging the State SNAP EBT infrastructure for the delivery of the incentives to SNAP participants. eHIP does not displace other on-going incentive activities or opportunities that are available through the Gus Schumacher Nutrition Incentives Program (GusNIP), Healthy Fluid Milk Incentive (HFMI) or retailer-initiated and funded incentives supported and encouraged by FNS.

Rather, eHIP can operate in tandem with these or State-funded SNAP incentive projects.

Key Objectives

All eHIP projects must meet the following objectives:

# Objectives 1 Develop and implement EBT integration to deliver and redeem eHIP incentives.

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

3 Communicate and promote eHIP incentive availability and information to SNAP households.

4 Provide training and technical support to participating SNAP-authorized retailers in administering the incentives.

5 Facilitate participation in the eHIP evaluation through data collection and sharing.

6 Separately track, report, and fund eHIP benefits through modified versions of currently existing processes.

C. FY 2023 FUNDING PRIORITIES

According to USDA’s Economic Research Service (ERS), the food-at-home Consumer Price Index (CPI) increased 11.9% from May 2021 to May 2022. In 2022, food-at-home prices were predicted to increase between 8.5 and 9.5 percent. As at-home food prices increase, access to safe, healthy, and affordable foods increasingly becomes more challenging for low-income families.

eHIP aligns with the USDA Strategic Plan (Goal 4) to make safe, nutritious food available to all Americans. FNS is committed to eliminating barriers to access nutrition assistance programs and prioritizing nutrition security. Nutrition security emphasizes providing Americans not just calories, but calories that matter for their health and well-being. This requires taking an equity lens to our efforts and having consistent and equitable access to healthy, safe, affordable foods that are essential to optimal health.

Diet-related diseases hit hardest in communities with high food insecurity. According to the Office of Minority Health at the U.S. Department of Health and Human Services (HHS), American Indian/Alaskan Natives1, Black/African Americans2, and Hispanic/Latino Americans3 are more likely to be obese than non-Hispanic whites, which is a risk factor for several diseases such as diabetes, heart disease, and stroke.

In addition to the general program purpose and priorities, FNS will prioritize applications who propose models that ensure incentives reach marginalized and/or high food insecurity communities such as:

• Tribal Nations and/or surrounding tribal communities.

• Rural communities as defined by the U.S. Census Bureau.

• Persistent poverty counties, as defined by USDA ERS Poverty Area Measures

• Low-income and low access census tracts, as defined by the USDA ERS Food Access Research

Atlas

FNS will provide up to 20 bonus points to applicants who meet these funding priorities (See Section V.B. Evaluation Factors and Criteria). Applicants must indicate the method(s) used to identify the priority areas and describe how the partnering retailer(s) will target those identified communities.

D. PROJECT DESIGN

The awardee(s) and its team of partners, including State agency staff, retailers, the State’s EBT contractor, and optionally other community partners, must develop and operate a project that tests the delivery of a financial incentive that is returned to the SNAP household’s EBT card, also known as EBT integration.

Below are the required design parameters.

1. Qualifying Foods

1 Obesity and American Indians/Alaska Natives - The Office of Minority Health (hhs.gov) 2 Obesity and African Americans - The Office of Minority Health (hhs.gov) 3 Obesity and Hispanic Americans - The Office of Minority Health (hhs.gov) https://www.usda.gov/sites/default/files/documents/usda-fy-2022-2026-strategic-plan.pdf https://mtgis-portal.geo.census.gov/arcgis/apps/MapSeries/index.html?appid=49cd4bc9c8eb444ab51218c1d5001ef6 https://www.ers.usda.gov/data-products/poverty-area-measures/ https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ers.usda.gov%2Fdata-products%2Ffood-access-research-atlas%2F&data=05%7C01%7C%7Cba1036beeb4d4fc0b0c708daed980afa%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638083534514786715%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=eT9S2SPSwsQqlqb4O5wTRRlu%2FUWVarFVoOWkxCZmYu0%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ers.usda.gov%2Fdata-products%2Ffood-access-research-atlas%2F&data=05%7C01%7C%7Cba1036beeb4d4fc0b0c708daed980afa%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638083534514786715%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=eT9S2SPSwsQqlqb4O5wTRRlu%2FUWVarFVoOWkxCZmYu0%3D&reserved=0 https://www.minorityhealth.hhs.gov/omh/browse.aspx?lvl=4&lvlid=40 https://www.minorityhealth.hhs.gov/omh/browse.aspx?lvl=4&lvlid=25 https://www.minorityhealth.hhs.gov/omh/browse.aspx?lvl=4&lvlid=70 eHIP is intended to increase the purchase and consumption of healthy foods that are consistent with the most recent dietary guidelines. For the purpose of this grant, the qualifying foods must be fruits and vegetables as defined below:

Qualifying Fruits and Vegetables (F/V): Whole fruits and vegetables (including legumes); 100% fruit or vegetable juice; and any variety of fresh, canned, dried, or frozen whole or cut fruits and vegetables without added sugars, fats, or oils, and salt (i.e., sodium).

2. Incentive Models

Incentives must be offered to every SNAP household shopping at the partnering retailer locations. The grantee must select one of the following eHIP incentive models to test:

• Qualifying F/V for any SNAP eligible food: SNAP participants purchase qualifying F/V using their SNAP benefits to receive a percentage of the qualifying purchase back onto their EBT card to be redeemed subsequently through the State EBT processing system for the purchase of any SNAP eligible food.

Any SNAP-eligible food is any product that SNAP households are normally allowed to purchase using their SNAP benefits.

• Qualifying F/V for Qualifying F/V: SNAP participants purchase qualifying F/V using their

SNAP benefits to receive a percentage of the qualifying purchase back onto their EBT card to be redeemed subsequently through the State EBT processing system for the purchase of additional qualifying F/V.

Note: This model will require additional technical requirements. Applicants should confirm the feasibility of this incentive model with the State’s EBT processor and include a description of the additional technical requirements in their letter of commitment.

3. Incentive Redemption Method

Applicants will need to specify whether the incentives can be redeemed at any SNAP-authorized location or only at retailer locations participating in the eHIP project.

If incentive redemption will be restricted to only participating locations, the applicant must provide the technical and budgetary justification for the limitation, such as utilizing a separate EBT account for eHIP incentives or other solutions that would involve extensive programing changes to current retailer POS devices or require new devices for incentive redemption capabilities, but that would result in better tracking, monitoring, etc., and explain how such solution is scalable Statewide and eventually nationwide.

Applicants must also specify whether an additional incentive will be earned on a purchase where an incentive benefit (rather than a SNAP benefit) was used to pay for the qualifying purchase (i.e., earning an incentive on an incentive). Additionally, applicants must explain the processes that will be implemented to mitigate the potential for fraud, including creating and trafficking incentive benefits.

4. Incentives Amount

Applicants must offer SNAP households a set percentage, up to 100%, of the cost of qualifying F/V purchased with SNAP benefits back onto their EBT card to be redeemed for future purchases of qualifying F/V or any SNAP-eligible food product, depending on the model selected.

Proposals should indicate:

• The percentage of the qualifying purchase amount households will receive back as incentives for future purchases;

• A monthly earnings cap - the maximum amount of incentives each household can earn per month;

• An expiration timeframe - the amount of time from the date an incentive is earned that it will remain available for redemption by the household; and

• Any other incentive earning caps that will be implemented, such as a cap per transaction.

5. Site Selection

Proposed project site(s) may include State or sub-State areas, such as county, city, community, or group of contiguous communities, and/or Tribal Nations.

Priority will be given to applicants who incorporate the priority target areas , listed in Section I.C.

6. Retailer Selection

Prior to submitting an application under this RFA, applicants must establish partnerships with SNAP-authorized retailers located in the project site(s) that typically sell the qualifying foods directly to households. If the applicant wishes to partner with a firm(s) that is not currently authorized to accept SNAP benefits, the applicant should specifically identify such firms in the proposal, provide justification for the firms’ selection, and include statements in the firm’s letter of commitment that 1) the firm intends to meet the stocking or sales requirements for SNAP authorization, and 2) will submit an application for authorization within 30 days of award.

Selected grantee(s) will be required to provide the retailer’s FNS authorization numbers in a secured format within 2 weeks of award. Applicants should confirm that selected partner firms are authorized though the retailer locator map.

Ideally, project site(s) would include some combination of supermarket chains, independent retailer grocers of all sizes, convenience stores, and farmers. States who elect to partner with farmers are encouraged to select farmers who process payments using SNAP Market Link solutions. States are also encouraged to consider including retailers who accept SNAP payment online so that incentives are available to online SNAP shoppers as well.

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 the qualifying foods, calculate and transmit the value of the incentive earned and the value of the incentive purchase, and print the resulting incentive balance on the SNAP receipt. Retailers using standalone (side-by-side) POS terminals may need to create and manually enter a separate subtotal of qualifying foods based on visual identification so that this additional value can be captured; these retailers would be expected to keep records to provide incentive issuance and redemption data. Technical assistance will be available from FNS as needed. See Appendix, page 44.

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

Applicants must submit letters of commitment from each retailer banner or location that will participate in the project and at a minimum, include the following:

• Retailers with IECR systems: Confirmation that the selected retailer(s) can program their systems to offer incentives or the intentions to upgrade their systems to offer incentives using the proposed project design.

• Retailers with side-by-side POS terminals: Confirmation that the selected retailer(s) has 1) a process in place to identify qualifying fruit and vegetable purchases at the point of sale and 2) a system to offer and track incentives using the proposed project design.

Indicate if the selected retailers offer other incentives through other grants or privately funded programs and, specifically, whether the other incentives are operating under a Gus Schumacher Nutrition Incentive Program (GusNIP) or Healthy Fluid Milk Incentive (HFMI) grant.

If a grantee(s) wishes to add additional retailer banners and/or locations during the project period that were not included in the initial proposal, the grantee(s) will be required to submit a written request to FNS, including justification, store name(s), addresses, and FNS numbers. If the grantee(s) is partnering with a new retailer banner(s), the grantee will be required to attach a letter of commitment from each retailer banner.

Ineligible retailers: Retailers that are not eligible to participate in an incentive project under this grant include:

• Authorized retailers that do not typically sell the qualifying foods to households, such as bakeries, or seafood or meat specialty stores.

• Wholesalers and meal services, such as drug/alcohol treatment programs, battered women’s shelters, communal dining facilities, group living arrangements, homeless meal providers, meal delivery services, and senior and other residential centers.

Funding POS System Upgrades or Equipment for Retailers in Priority Target Areas: Applicants may propose to use grant funds for independent retailers that sell sufficient quantities of qualifying fruits and vegetables and are located in Priority Target Areas, described in Section I.C., for POS system costs to provide incentives though a process that can be certified by the retailer’s third-party processor (TPP) and electronically tracked through the POS system at the point of the qualifying purchase. See Part IV.A.7.

“Budget”.

7. Incentive Delivery Mechanism- Integration with Current EBT System eHIP will utilize the existing EBT system currently in place for SNAP: its debit cards, POS terminals, receipts, and vendor data system. However, the system will need to accommodate the unique accounting needs of eHIP at the point of purchase, which differs from regular SNAP transactions.

Thus, changes are needed to EBT system programming, accounting and reporting for the duration of the project. Due to the technical nature of changes necessary to allow retailers to comply with the accounting, crediting and the reporting needs of eHIP, these specifications and requirements are enumerated systematically in the Appendix, page 44, of this RFA. State Agencies will need to review these requirements carefully and, together with their EBT contractor and other relevant parties, develop a plan of action to address them and present that plan in their application.

EBT integration will require substantial modifications to the EBT and retailer systems and procedures to enable them to:

• Validate participating eHIP stores;

• Recognize qualifying foods and total their value;

• Properly calculate incentives earned and post incentives;

• Identify incentives separately from SNAP transactions in order to debit and post incentives, and for back-end accounting and tracking purposes;

• Transmit the information in the authorization request to the EBT system in a manner compliant with current ANSI message standard X9.58, modified as necessary to transmit eHIP data in a standard manner for all retailers participating in the project (this will require collaboration with FNS, participating integrated retailers and their TPPs, and standalone terminal providers);

• Generate appropriate approval messages to retailers;

• Print incentive values earned on EBT receipts;

• Apply a cap to the monthly amount of incentive that can be earned by any one household;

• Remove incentive amounts from the available balance after the expiration date.

• Ensure that households no longer in SNAP (i.e. no longer receiving monthly benefit allotments) cannot earn incentives.

• Continue to include checks for valid FNS authorization number, account number and PIN value, as well as determining that account status is active and that there are sufficient funds.

Applicants must provide letters of commitment from the State’s EBT contractor for the proposed EBT system changes, reporting and accounting requirements, and any necessary POS upgrades at participating retailers. See Part IV.B. “Appendices”.

8. Household eHIP Earnings Information

Projects should include ways to provide each household with information on the incentive amount earned and the remaining accumulated value of incentives, as well as the expiration date for unused incentives (expirations should be no less than 30 days) to include, at a minimum, the following methods:

• EBT Receipts: At the point of purchase in the form of a message on a printed receipt, which is already a SNAP receipt requirement.

Example: The receipt could read immediately above the remaining SNAP balance:

Healthy Incentive Earned: $xx.xx

Expiration Date: xx /xx /xx Remaining Incentive Balance: $xx.xx

• Automated Response Unit (ARU): Report incentive transaction and balance information in the same manner as other transactions when the caller selects the options to listen to the list of the most recent transactions or to have a two-month statement mailed.

Projects should also specify how households will be informed on how their earned incentives will be applied to subsequent purchases, including the order in which incentive benefits versus monthly benefits will be applied.

9. Communication/Outreach Promotion

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

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

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

• Qualifying foods for which an incentive is offered, and the eligible foods that can be purchased with incentives;

• Location of participating firms;

• The monthly cap amount and how to track the amount of incentives earned;

• How to use the incentives earned, and locations of where earned incentives can be used;

• The expiration date of the incentives earned; and

• Where to get additional information.

Examples of State SNAP agency promotional activities include:

• Making eHIP promotional materials available at local SNAP offices;

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

• Creating eHIP promotional materials for social media accounts; or

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

10. 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 eHIP 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.

11. Data Collection and Evaluation

FNS will conduct an administrative cost analysis using data provided by the awardee. FNS will develop and monitor indicators of progress towards objectives by examining eHIP project activities in terms of (1) the project’s administrative costs, (2) the amount of incentives issued, and (3) sales of qualifying F/V, as described below. The data should be reported separately by retailer outlet (e.g., individual stores/market locations). The awardee must provide information on the incentive model that all individual retailer outlets are implementing at the start of the project. The set incentive amount provided by an individual retailer outlet should not be changed without approval from FNS (see section I.D.4 for Incentives Amount).

Awardees are required to have a Data Use Agreement with each firm that guarantees each firm will provide the following required data elements related to administrative costs:

• 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; and

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

Data Use Agreements shall also ensure that the following data elements related to incentive issuance and sales, are provided for each firm:

• Number of households issued an incentive and the average incentive amount issued per household per month.

• Amount of incentives issued to SNAP participants, in dollars and number of transactions per month;

• Amount of incentives redeemed by SNAP participants, in dollars and number of transactions per month;

• Number of households that redeemed an incentive and incentive amount redeemed per household per month.

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

12. Proposed Project Enhancements

In addition to meeting the basic requirements of this RFA, applicants may wish to include in their proposal enhancements that exceed the project requirements. 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. Any enhancements should be presented separately from the 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 this section will not be scored.

13. Key Timeframes

The anticipated period of performance for this grant project is 4 years. Priority will be given to proposals that plan to launch the project in a fully operational form within 18 months of executing a signed cooperative agreement. Prior to launching the project, the awardee will be expected to make and test all administrative and accounting systems adjustments to set eHIP up for operations. Once launched, the project operations may last for the remainder of the grant period of performance. The awardee will be responsible for collecting and reporting specified incentive issuance and redemption data during the entire project period on a monthly basis. Biweekly conference calls during implementation and monthly conference calls thereafter are required to report on project progress/status to FNS. Formal progress and financial reports are due quarterly.

E. 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.

Project Roles and Responsibilities

FNS: FNS will provide direction and technical assistance both to the eHIP awardee(s) and the evaluation contractor and coordinate their efforts. 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 eHIP funds. FNS will review 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.

eHIP Grantee: The eHIP grantee(s) is the State SNAP Agency that will be competitively selected based on the technical merits of its application. The grantee has overall responsibility for project planning, implementation, and operations in cooperation with retailers, SNAP local agency(ies), EBT contractor, and other partners as designated by the grantee(s). FNS encourages consultation and partnering with SNAP-Ed agencies who have experience with nutrition education through teaching SNAP households how to make healthy meals and how to stretch their SNAP dollars and WIC agencies who have experience with retailer and participant training on the purchase of qualifying F/V. The awardee(s) shall:

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

• Delegate responsibilities to SNAP local agency staff, the EBT processor, retailers and other partners as appropriate;

• Inform, promote, and educate SNAP households on how to earn and use eHIP incentives;

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

o Amending the retailer’s point-of-sale service provider 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 eHIP qualifying foods to ensure they understand their responsibilities and meet milestones of the eHIP management plan.

o Conducting employee trainings to inform and educate cashiers on eHIP incentives and how to issue/redeem them;

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

• Monitor partner retailer incentive operations, including accuracy of eligible incentive product lists, to ensure that incentives continue to be earned and redeemed as expected.;

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

• Maintain records on all project costs, including costs covered by other funding sources (e.g., retailers system changes; in-kind contributions)

• Cooperate fully with the FNS evaluation contractor to ensure the integrity of the evaluation and quality of the project cost data provided to the contractor before, during, and after project operations;

• Seek FNS approval at critical junctures and checkpoints after award, including management plan, budget plan, training plans, EBT contractor’s design and implementation plan, 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 eHIP funds separately from SNAP administrative funds, any other grant award funds, or funds provided by any other partner, and establish financial and management reporting and controls to ensure that eHIP funds are not commingled with other funding sources or used inappropriately. A separate and distinct audit trail must be established and maintained for the expenditure of eHIP funds that clearly demonstrates they are solely used for eHIP purposes.

• States should present their plan for compensating retailers in Priority Target Areas for costs associated with eHIP, such as reprogramming of existing POS terminals and modifying internal data storage systems or acquiring additional equipment.

Retailers: Participating retailers must develop and maintain their POS systems and other incentive procedures necessary to support eHIP, including cashier checkout processes at the point of purchase, maintaining a list of qualifying foods eligible for the incentive, a list of foods that can be purchased with the incentive (if applicable), procedures for informing SNAP recipients of any incentive received at the point of purchase, and meeting requirements for providing incentive information on receipts.

EBT Contractor: The EBT contractor servicing retailers will, at the direction of the eHIP Grantee, meet all requirements and operate and maintain the eHIP system as described in the Appendix, page 44, of this RFA. This includes, but is not limited to the following duties:

• Calculate the incentive amount earned at the point of purchase.

• Be able to provide incentive balance information to households.

• Track each SNAP household’s monthly cumulative incentives earned to ensure that capped value is not exceeded, and report “real time” cumulative incentives earned on cash register receipts.

• Reconcile and provide daily reports on incentives earned and credited to EBT accounts.

• Reimburse retailers for the redemption of eHIP incentive benefits along with their regular SNAP benefits.

• Provide daily and monthly summary reports and daily activity files at the individual transaction level as specified during the Project Design phase to FNS and/or its designated agents.

• Support clients with eHIP questions or problems through the client Automated Response Unit

(ARU) and customer service representatives.

• Support EBT-only and commercial retailers on eHIP-specific problems through the retailer ARU and customer service representatives.

• Cooperate with FNS in obtaining data and other information for evaluation purposes and work directly with FNS’ evaluation contractor to provide at a minimum, the items prescribed in Section I.D.11. Data and Evaluation.

• At the request of the eHIP Grantee, assist with other eHIP implementation activities, such as assisting the eHIP Grantee in the training of retailers for the new system.

Other Partners: Other partners may be engaged to facilitate eHIP projects. Duties of any partners should be described clearly in the application, along with an overview of how the State will provide oversight to their activities throughout eHIP.

To demonstrate that the applicant (See Part III.A. ”Eligible Applicants”) and its stakeholders possess strong capability to work together to successfully carry out the obligations of this agreement in a timely, efficient, and effective manner,applicants must include in the proposal:

• A signed letter of commitment to work closely and cooperatively with FNS in support of the grant objectives.

• Signed letters of commitment from each retailer banner or location that will participate in the project.

• Copies of agreements with all necessary stakeholders.

F. PROGRAM POLICY

This section addresses certain aspects of eHIP and SNAP policies as they pertain to the eHIP cooperative agreement project. This section also deals with policies regarding the participation of firms (e.g., convenience stores, grocery stores, farmers markets, direct-marketing farmers) in eHIP projects.

“Firm” is defined at 7 CFR 271.2. Questions regarding the policies discussed below may be directed to SM.FN.SNAP-RetailerPolicy@usda.gov.

Incentive Restrictions eHIP awardees may not solely incentivize specific brand names or product lines of F/V, nor may eHIP awardees solely incentivize a specific subset of qualifying F/V. In addition, eHIP awardees may not provide incentives earned through a “no purchase required” mechanism or through an automatic discount. Households must be required to purchase qualifying F/V using their SNAP benefits to earn incentives that can only be used on a future purchase.

Concurrent Participation in SNAP-Ed, GusNIP, and/or HFMI

Grantees that receive eHIP as well as SNAP-Ed, HFMI, 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 implements nutrition education to promote healthy food choices and physical activity consistent with the most recent Dietary Guidelines for Americans. Participation in both eHIP and SNAP-Ed is permitted, however, each program has its own separate funding, participation, and reporting requirements. SNAP-Ed funds may not be used to provide actual cash or other financial incentives, and awardees must meet each program’s participation and reporting requirements.

• Gus Schumacher Nutrition Incentive Program (GusNIP) is a grant program targeted to increasing the purchases…