FY22 Healthy Fluid Milk Incentives RFA.pdf

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

Fiscal Year 2022 Request for Applications (RFA)

CFDA: 10.551

Release Date: July 19, 2022 Application Due Date: 11:59 PM, Eastern Standard Time (EST), September 2, 2022 Anticipated Award Date: September 2022

OMB BURDEN STATEMENT: This information is being collected to assist the Food and Nutrition Service to evaluate and rank applicants and protect the integrity of the grantee selection process. This is a voluntary collection and FNS will use the information to fund grants that offer healthy fluid milk incentives to SNAP households. This collection does request personally identifiable information under the Privacy Act of 1974. According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection (IC) is 0584-0512. This expires on 7/31/22 but FNS is submitting the IC renewal package including this Request for Application (RFA) to OMB for their approval prior to the IC expiration. Fewer than ten agencies are expected to apply for this cooperative agreement, but this burden statement is included out of an abundance of caution. The time required to complete this information collection is estimated to average 50 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. 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 Service, Office of Policy Support, 1320 Braddock Place, 5th Floor, Alexandria, VA 22306 ATTN: PRA (0584- 0512.) Do not return the completed form to this address.

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 September 2, 2022. 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) 2022 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 total funding amount available for FNS to support this program in FY 2022 is approximately $3,000,000.

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. 46) 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

Table of Contents

PART I - FUNDING OPPORTUNITY DESCRIPTION

A. AUTHORITY AND BACKGROUND

B. PURPOSE AND OBJECTIVES

Key Objectives

C. FY 2022 FUNDING PRIORITIES

D. PROJECT DESIGN

1. Target Foods

2. Incentive Models

3. Incentives Amounts

4. Site Selection

5. Retailer Selection

6. Incentive Delivery Mechanism

7. Automatic Discount Incentives - Nutrition Education Component

Proposed Project Enhancements

Key Timeframes

E. COOPERATIVE AGREEMENT

Project Roles and Responsibilities

F. PROGRAM POLICY

Incentive Restrictions

Communication/Outreach Promotion

Retailer Training and Technical Support Plan

Data Collection and Evaluation

Concurrent Participation in SNAP-Ed or GusNIP

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

Content and Form of Application Submission file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126158 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126158 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126183 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126183 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126187 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126187 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126191 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126191

A. Content of Application Submission

1. Cover Sheet

2. Table of Contents

3. Application Project Summary

4. Project Narrative

5. Staffing Plan

6. Management Plan

7. Budget

8. Application Budget Narrative

9. Activities/Indicators Tracker

10. Timeline of Activities to Achieve the Goals

B. Required Grant Application Forms

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

file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126209 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126209 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126215 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126215 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126227 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126227 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126228 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126228

Debriefing Requests

APPENDIX

RFA Budget Narrative Checklist

Legal Organization Name:

FNS-908 Performance Progress Report (PPR) – For Reference Only file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126230 file://fnsva/snap/BRD/BRD%20Workgroups/RMIB%20Shared%20Drive%20Master%20Folder/HFMI/RFA/FY%202022/FY22%20FINAL%20HFMI%20RFA.docx#_Toc109126230

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 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, 2022, P.L. 117-103, provides $3,000,000 for HFMI for fiscal year (FY) 2022.

FNS announces, through this Request for Applications, the availability of a maximum of $3,000,000 in total grant funding to award as many as 3 cooperative agreements. Eligible entities who can submit applications include government agencies (State, local, territory, or tribal agencies) and non-profit organizations. This solicitation is contingent upon the availability of funds and 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.

In 2020, FNS awarded the first pilot HFMI grant to develop and test methods to increase the purchase and consumption of healthy fluid milk at Lowe’s Supermarkets in West Texas. In 2021, FNS awarded a second grant to continue and expand the project goals and objectives at Wakefern grocery stores in New Jersey and one Jubilee grocery store in West Texas.

The 2022 HFMI will continue developing and testing 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 in additional regions. “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.

B. PURPOSE AND OBJECTIVES

The primary purpose of the HFMI project 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.

PART I - FUNDING OPPORTUNITY DESCRIPTION

https://www.google.com/search?sxsrf=ALeKk01Q8vIIn1e5RC90bZzNAEwhgAK8ZA%3A1584628804793&q=agriculture%2Bimprovement%2Bact%2Bof%2B2018%2Bpub.%2Bl.%2B115-334&sa=X&ved=2ahUKEwiLsYqo4qboAhUUgnIEHYDpCOgQ1QIoA3oECBcQBA

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.

4 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.

8 If implementing an automatic discount incentive model, provide education on the nutritional value of cow’s milk in accordance with the latest Dietary Guidelines for Americans and in relation to the availability of HFMI incentives at the participating locations.

C. FY 2022 FUNDING PRIORITIES

According to USDA’s Economic Research Service (ERS), the food-at-home Consumer Price Index (CPI) increased 6.5% over the past 12 months and it’s predicted dairy prices will increase between 2.5 and 3.5 percent in 2022. Additionally, it’s been proven that good sources of calcium, iron and Vitamin C, nutrients have been shown to help reduce the absorption of lead in children's bodies. Therefore, in addition to the general program purpose and priorities, FNS will prioritize projects targeting SNAP households in:

• Tribal Lands and/or surrounding tribal communities.

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

• Opportunity Zones, as defined by the Internal Revenue Service (IRS).

• Neighborhoods with contaminated water to mitigate lead absorption among SNAP households.

https://mtgis-portal.geo.census.gov/arcgis/apps/MapSeries/index.html?appid=49cd4bc9c8eb444ab51218c1d5001ef6 https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

Specific Target Areas – Application Bonus Points Applicants who demonstrate one or more of the community priorities listed above will be awarded an additional 15 bonus points for incorporating the specified target areas into the project design.

Applicants who propose to integrate their projects into a State’s SNAP electronic benefit transfer (EBT) system by adding earned incentive amounts to an incentive account for subsequent use, or applicants who propose to use partnering retailer’s point-of-sale (POS) systems to provide automatic discount incentives will be considered for an additional 10 bonus points.

D. 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.

1. 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.

2. Incentive Models

The grantee must select from the following HFMI incentive models to test:

• Low/no-fat milk for low/no-fat dairy: SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive an incentive 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. (E.g., All varieties of low-fat or non-fat liquid, dry, or evaporated pasteurized cow’s milk, without flavoring or sweeteners, including lactose-free and lactose-reduced product; low-fat or non-fat fresh or frozen yogurt; buttermilk;

kefir; and cheeses. This does not include cream, including butter, sour cream, and cream cheese due to their low calcium content.)

• Any dairy for low/no-fat milk: SNAP households must purchase any dairy product as defined below using their SNAP benefits to receive an incentive that can be redeemed for qualifying fluid milk as defined above.

Any dairy product is any product that has cow’s milk or cream 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”).

• Low/no-fat milk for any SNAP eligible item: SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive an incentive that can be redeemed for any SNAP-eligible product.

Any SNAP-eligible product is any product that SNAP households can purchase using their SNAP benefits on a day-to-day basis.

• Low/no-fat milk for immediate point-of-purchase discount: SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive an automatic discount or dollar-off incentive at the time of the qualifying purchase.

An automatic discount incentive does not require a subsequent purchase for the discount to apply; it is applied immediately at the point-of-purchase.

• Low/no-fat milk for discount to be used on subsequent shopping trip: SNAP households must purchase qualifying fluid milk as defined above using their SNAP benefits to receive a set amount or percentage of the qualifying purchase back onto their EBT card (i.e. EBT integration).

This model is based on the Healthy Incentives Pilot (HIP) project which allows the incentive amount to be redeemed subsequently in the same manner as any SNAP EBT transaction for any SNAP-eligible food.

Incentives must be offered to every SNAP household shopping at the partnering retailers.

Applicants may propose to implement different models and/or discount levels at participating stores. If an applicant elects to implement different models and/or discount levels, proposals must include: 1) a justification; 2) confirmation from the retailer(s) confirming the feasibility of programing different incentive scenarios into their POS system; and 3) a management plan explaining how the grantee plans to manage communication and promotional activities for varying incentive models.

Priority will be given to grantees who propose to integrate their projects into a State’s SNAP EBT system or use the partnering retailer’s POS systems to provide automatic discount incentives.

3. Incentives Amounts

Applicants must indicate whether the incentives will be a percentage-off discount, dollar-off discount, or a dollar-for-dollar match.

If applicants elect a percentage-off discount, the discount level must be equivalent to at least 50 percent of the purchase price for qualifying items. Include the maximum number of qualifying items that can be purchased per day, if applicable.

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

If applicants elect a dollar-off discount or dollar-for-dollar match, the proposal must include the ratio of SNAP benefits spent to incentive earned and the maximum incentive dollar amount that can be earned per day, if applicable.

4. Site Selection

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

Priority will be given to applicants who target communities and project areas that have not yet been tested in prior HFMI initiatives.

5. Retailer Selection

Applicants must establish partnerships with SNAP-authorized retailers located in the project site(s) prior to application under this RFA. Please see Part IV A.4. under “Retailer Recruitment” in the “Project Narrative” section for requirements related to the selection of firms not yet authorized to accept SNAP benefits. The retailers must typically sell qualifying 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. The SNAP-authorized retailer partners should offer a range of qualifying fluid milk.

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 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.

Applicants may propose using up to $2,000 of grant funds per retailer located in Priority Target Zones described in Section C. for POS system modifications to be able to provide incentives though a process that can be electronically tracked through the POS system and/or to provide an automatic discount at the point of the qualifying purchase. See Part IV.A.7. “Budget”.

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

• A description explaining the type of POS system the retailer uses and any changes that will be made, if applicable.

• 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 milk purchases at the point of sale and 2) a system to offer incentives using the proposed project design.

• Confirmation that the selected retailer(s) systems can provide data that reflects SNAP EBT transactions separate from other EBT transactions (i.e., TANF, WIC, etc.).

Applicants must indicate the number of retailers they plan to partner with and provide qualifying milk sales data for each retailer and indicate the likely amount of grant funds, based on that data, that will be redeemed by SNAP households over the proposed project period of operation. If qualifying milk sales data is not available by the application due date, applicants must provide justification and include a statement committing to providing this data within 2-months of award. If the data subsequently provided does not support the likelihood that at least 65% of the grant funds will be redeemed by SNAP households over the project period of operation, the grantee must agree to make a good faith effort to partner with a sufficient number of additional retailer locations to bring the estimated amount of incentives that will be redeemed up to at least 65% of the total grant funds awarded.

Indicate if the selected retailers offer other incentives (e.g., fruits and vegetables incentives) and whether the other incentives are operating under a Gus Schumacher Nutrition Incentive Program (GusNIP).

6. Incentive Delivery Mechanism

FNS is seeking applicants who, in collaboration with its partners, choose an incentive delivery method(s), which may include, but is not limited to, incentives placed onto household’s EBT cards though integration with State Electronic Benefit Transfer (EBT) systems, coupons that can only be used to purchase eligible foods consistent with the incentive design options noted under Part I.D- Project Design.

Priority will be given to applicants who collaborate with its partners to integrate their projects into a State’s SNAP’s electronic benefit transfer (EBT) system or to use partnering retailer’s point-of-sale (POS) systems to provide automatic discount incentives.

All non-automatic discount incentives must include an expiration date.

Incentives delivered through State’s EBT system integration 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);

• Identify incentives as a separate benefit type for back-end accounting and tracking purposes.

• Generate appropriate approval messages to retailers; and

• Print incentive values on EBT receipts.

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

Incentives delivered through a retailer’s POS system may require technical enhancement if the retailer’s system does not already have the capability.

Applicants must describe the incentive delivery method(s) in high-level detail, including any proposed system enhancements, as part of the proposal.

Ideally, projects would provide the incentive amount and, if tracked by individual household and applicable, the remaining accumulated value of incentives to HFMI households at the point of purchase in the form of a message on a cash register receipt, the incentive coupon, or other manner.

An expiration date for non-automatic discount 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).

7. Automatic Discount Incentives - Nutrition Education Component

Automatic discount incentives apply to all SNAP households, without requiring the SNAP client to return to use the incentive earned on a subsequent visit and regardless of whether the SNAP client is aware of the HFMI program. As a way to more proactively create a behavioral change and increase the purchase and consumption of healthy milk, FNS is requiring a nutrition education component for an automatic discount incentive model to bring more awareness to the HFMI program. Proposals should include a description of planned activities.

Applicants who do not propose to offer automatic discount incentives should still indicate if nutrition education or similar interventions will be a component of the project and include any planned activities as a proposed enhancement.

All proposals should note any planned partnerships or collaborations (e.g., SNAP-Ed).

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, or nutrition education. 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.

Key Timeframes

The period of performance for the FY2022 Cooperative Agreement will not exceed five (5) years. The awardee will be expected to launch the project in a fully operational form within 18 months of executing a signed cooperative agreement. During this 18-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 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.

A final project report, not to exceed 35 pages, which includes an assessment documenting the process, challenges, and success of implementation and operations, and final financial report are required.

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 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 SNAP-Ed agencies who have experience with participant training through teaching SNAP households how to make healthy meals and how to stretch their SNAP dollars. The awardee(s) shall:

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

• Delegate responsibilities to retailers and 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 the retailer’s point-of-sales 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 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 training 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 EBT systems and other incentive procedures 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 facilitate HFMI projects. Duties of such partners should be described clearly in the application.

To demonstrate that the applicant (see Part III for Applicant Eligibility, pg. 24) 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 include in the proposal:

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

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

F. PROGRAM POLICY

This section addresses certain aspects of HFMI and SNAP policies as they pertain to the HFMI 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 HFMI 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

HFMI Qualifying Fluid Milk. An HFMI project must incentivize the purchase of HFMI qualifying fluid mailto:SM.FN.SNAP-RetailerPolicy@usda.gov milk in accordance with Part I.D. - 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/Outreach 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.

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.

Data Collection and Evaluation

Given the limited funds available, FNS will conduct an administrative cost analysis and an outcome evaluation using data provided by the awardee. 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 issued, and (3) sales of fluid milk, as described below. 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). The awardee must provide information on the incentive model (e.g., discount level) that all individual retailer outlets are implementing at the start of the project. The amount of the discount provided by an individual retailer outlet should not be changed without approval from FNS.

Awardees are required to have a Data Use Agreement with each firm or sub-grantee 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 guarantee that each firm or sub-grantee will provide the following required data elements related to incentive issuance and sales, at a minimum:

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

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

• Sales of qualifying skim/non-fat milk, broken out by SNAP EBT and all other tenders;

• Sales of qualifying 1% milk, broken out by SNAP EBT and all other tenders;

• Sales of 2% milk, broken out by SNAP EBT and all other tenders;

• Sales of whole milk, broken out by SNAP EBT and all other tenders; and

• Sales of flavored milk of any fat content, broken out by SNAP EBT and all other tenders.

Sales completed with non-SNAP EBT tenders may be aggregated and do not need to be broken out by tender type. All data elements related to incentive issuance and sales shall be aggregated at the weekly level, with the start and end dates of each week aligning with each retailer outlet’s promotion (i.e., weekly pricing) cycle. Weekly reports shall include any information on unusual circumstances affecting sales for any retailer (e.g., natural disaster, systems outage, broken dairy case, supply chain issues, special milk/ dairy promotion unrelated to this project, etc.) to explain unusual/ unexpected sales data.

Applicants may propose to provide other data elements, including but not limited to the number of unique SNAP participants earning incentives, average unit prices for fluid milk by fat content, and sales of other products not listed above. If applicable, applicants shall describe the feasibility of collecting such data.

To assist FNS in examining the impact of the incentive program, awardees also will be required to obtain (1) historical data from participating retailer outlets and (2) historical and current data from comparison retailer outlets. Historical data refer to data from the 12 months preceding incentive program implementation and include SNAP EBT and total sales of skim/non-fat, 1%, 2%, whole, and flavored milk. Comparison retailer outlets refer to outlets that are similar to participating outlets in terms of SNAP EBT sales volume, geographic location, and other characteristics but are not themselves participating in the incentive program. Applicants shall propose a strategy for selecting and obtaining data for comparison retailer outlets.

Along with providing data for the cost analysis and outcome evaluation to FNS, the awardee shall conduct a process evaluation to understand implementation of the incentive program. Applicants shall propose an approach to evaluating store staff training, promotion and marketing activities, and other aspects of implementation. Any data collection activities that involve human subjects must be approved by the awardee’s Institutional Review Board. Time required to receive such approval shall be built into the proposed timeline.

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 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.

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 implements nutrition education to promote healthy food choices and physical activity consistent with the most recent Dietary Guidelines for Americans. Participation in both GusNIP and HFMI 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 of fruits and vegetables by SNAP recipients through incentives provided at the point of purchase. Participation in both GusNIP and HFMI is permitted, however each program has its own separate funding, participation, and reporting requirements. HFMI awardees participating in GusNIP cannot comingle funds between the programs and must meet each program’s participation and reporting requirements.

Proposal Changes

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.

G. 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.

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 must work with their retailer partners to enter into a MOU before that retailer can…