FY24 HFMI RFA (6.25.24).pdf

Information Collection: 0584-0512

Expiration date: 07/31/2025

Supplemental Nutrition Assistance Program

Healthy Fluid Milk Incentives - Cooperative Agreement

Fiscal Year 2024 Request for Applications (RFA)

Assistance Listing Number (ALN): 10.551

Release Date: June 25, 2024

Application Due Date: August 9, 2024, by 11:59pm Eastern Daylight

Time (EDT)

Anticipated Award Date: September 2024

OMB BURDEN STATEMENT:

This information is being collected to assist the Food and Nutrition Service in evaluating applications for the Process and Technology Improvement Grant. This is a voluntary collection and

FNS will use the information to rank and fund applicants for the Process and Technology

Improvement Grant. This collection does not request any 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 is 0584-0512. 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 22314 ATTN: PRA (0584-0512). Do not return the completed form to this address.

Application Checklist

This Application Checklist provides applicants with a list of the required actions and documents that must be completed. 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) number;

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

When preparing your application, ensure:

Application format and narrative meet the requirements included in Section 4 –

Application and Submission Information. This includes page limits, priorities outlined in

Section 5 – Application Review Information, and all necessary attachments.

When preparing your budget, ensure the following information is included (also include applicable information from the Budget Checklist page #45):

All key staff proposed to be paid by this grant.

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

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

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

Itemized travel expenses (including type of travel), travel justification, and basis for lodging estimate.

Types of equipment and supplies, justifications, and estimates, ensuring that the budget is in line with the project description.

Information for all contracts and justification for any sole-source contracts

Justification, description, and an itemized list of all consultant services.

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 an applicant is requesting the de minimis rate or indirect costs are not required, please state this in the budget narrative.

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)

Resumes of key staff

Letters of support/commitment from key partners http://www.grants.gov/

Additional attachments as required

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)

Table of Contents

1. Program Description and Objectives

Executive Summary

Program Description

Purpose and Key Objectives

FY24 Funding Priorities (Bonus Points)

Project Design

Cooperative Agreement

Program Policy

2. Federal Award Information

Allowable Costs

Unallowable Costs

3. Eligibility Information

Eligible Applicants

Ineligible Applicants

Cost Sharing or Matching Considerations

Pre-Award Screening Requirements

Acknowledgement of USDA Support

4. Application and Submission Information

Content and Form of Application Submission

Special Instructions:

1. Cover Sheet

2. Table of Contents

3. Application Project Summary

4. Project Narrative

5. Staffing Plan

6. Management Plan

7. Budget

8. Activities/Indicators Tracker

9. Timeline of Activities to Achieve the Goals

10. Application Budget Narrative

Indirect Cost Rate

Required Grant Application Forms

Submission Information

Submission Date

Preparing for Electronic Application Submission through Grants.gov

How to Submit an Application via Grants.gov

Grants.gov Receipt Requirements and Proof of Timely Submission

Intergovernmental Review

Funding Restrictions

5. Application Review Information

Review Criteria

Project Design (35 points)

Implementation and Monitoring (15 points)

Sustainability (10 points)

Budget Appropriateness and Economic Efficiency (25 points)

Staff Capability and Management (15 points)

FY24 Funding Priorities (Bonus Points)

Agency Priorities – Bonus Points

Review and Selection Process

6. Federal Award Administration Information

Federal Award Notice

Administrative and National Policy Requirements

Confidentiality of an Application

Conflict of Interest and Confidentiality of the Review Process

Administrative Regulations

Code of Federal Regulations and Other Government Requirements

Reporting Requirements

Financial Reports

Performance Progress Reports (PPR)

7. Federal Awarding Agency Contacts

8. Other Information

Debriefing Requests

Appendix

RFA Budget Narrative Checklist

FNS-908 Performance Progress Report (PPR)

1. Program Description and Objectives

Executive Summary

FNS requests applications for the Healthy Fluid Milk Incentives (HFMI) Cooperative

Agreement Projects for fiscal year (FY) 2024 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 2024 is

$2,583,428. Government agencies (State, local, territory, or tribal agencies) and non-profit organizations are eligible to apply for this funding. The anticipated period of performance for this project is from September 1, 2024, to September 1, 2027. Please see Section 3. Eligibility Information, for more details.

Program Description

The Supplemental Nutrition Assistance Program (SNAP), authorized under the Food and Nutrition

Act of 2008 (Insert legislative citation for the FNA), 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.

Legislative Authority

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, 2024, [P. L. 118-42 provides $2,583,428 for HFMI for fiscal year

(FY) 2024.

FNS announces, through this Request for Applications (RFA), the availability of $2,583,428 in total grant funding to award one cooperative agreement. Eligible entities who can submit applications include government agencies (State, local, territory, or tribal agencies) and non-profit organizations.

FNS reserves the right to use this solicitation and competition to award additional grants to responsive applicants to this RFA in this or the subsequent fiscal year should additional funding become available.

Background

Beginning in 2020, FNS has awarded four HFMI grants to develop and test methods to increase the purchase and consumption of healthy fluid milk. The first project in 2020 was implemented at

Lowe’s Food King Supermarkets in West Texas. In 2021, FNS awarded a second grant for implementation at Wakefern ShopRite grocery stores in New Jersey, and one Jubilee grocery store in West Texas. The third grant, awarded in 2022, substantially expanded the project to JMBL, Inc https://www.google.com/search?sxsrf=ALeKk01Q8vIIn1e5RC90bZzNAEwhgAK8ZA%3A1584628804793&q=agriculture%2Bimprovement%2Bact%2Bof%2B2018%2Bpub.%2Bl.%2B115-334&sa=X&ved=2ahUKEwiLsYqo4qboAhUUgnIEHYDpCOgQ1QIoA3oECBcQBA

Supermarkets and Wright’s Market in Alabama, Mother’s Nutritional Center in California, Little

Giants Farmers Market and Carver Market in Georgia, and G.F. Buche Co. in South Dakota. Finally, the fourth grant, awarded in 2023, continued the vast expansion of the program to Meijer grocers in Michigan, Ohio, Indiana, Kentucky, Illinois and Wisconsin, By Chance Markets in Louisiana and

Mississippi, Cost Kutter Tifton LLC in Georgia, Daily Table in Massachusetts, Fiesta Foods, Saar's

Super Saver Foods, PT Food Co-Op, Shop N Kart, Stormans, and Point Roberts Marketplace in

Washington, Harvest Market in California, Oregon, and Washington, Hired Man Grocery in Kansas, Food Land in Iowa, Mitchell Grocery Corp in Alabama, Jeffcoat in Mississippi, and Vowell in

Alabama and Mississippi.

The 2024 HFMI grant 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. Prior HFMI projects mainly tested the impact of dollar-for-dollar paper coupon incentives, while a small set of retailers tested the delivery of a dollar-for-dollar coupon delivered electronically through a retailer’s loyalty accounts or as an automatic discount at the point of purchase.

Key Requirement for FY 2024 Applicants: FNS is limiting proposals to project designs that will either 1.) Deliver HFMI incentives as an automatic discount at the point of purchase or 2) Through integration with State Electronic Benefit Transfer (EBT) systems to automatically deposit earned

HFMI incentives onto SNAP households EBT cards (See Project Design on page 12 and in the scoring criteria on page 35).

Purpose and Key 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.

Below is a list of the Program Objectives. As noted in Section 4, within the “Activities/Indicators

Tracker,” proposed activities should be clearly aligned to these objectives and their associated activities and indicators.

Note that if awarded, grantees will be required to report on progress towards activities aligned with the required objective(s) and must use the FNS-908 Performance Progress Report.

Key Objectives

Application proposals must include all the objectives identified below. Proposals can contain more objectives.

# Objective

1. Increase the purchase and consumption of qualifying fluid milk by SNAP households by providing a financial incentive at the point of purchase using EBT integration or automatic discounts.

2. Partner with selected 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 HFMI incentive availability and information to SNAP households.

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

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

6. 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.

FY24 Funding Priorities (Bonus Points)

Target Communities (up to 15 Points)

Applicants who demonstrate one or more of the community priorities listed below (see bulleted list just below) will be awarded up to an additional 15 bonus points for incorporating the specified target areas into the project design.

Bonus Points will be evaluated based on the following criteria:

⎯ Up to 50% of overall selected retailer locations target one or more of the priority communities – 5 points

⎯ 50 to 75% of overall selected retailer locations target one or more of the priority communities – 10 points

⎯ Over 75% of overall selected retailer locations target one or more of the priority communities – 15 points

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:

• 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

• Tribal Nations and/or surrounding tribal communities.

Applicants must indicate the method(s) used to identify the priority areas and describe how the partnering retailer(s) will target those identified communities. See the section entitled “Review

Criteria” for how this portion will be evaluated.

Project Design

The awardee(s) and its team of partners, including retailers, and optionally other community partners, must develop and operate the projects to provide incentives for the https://mtgis-portal.geo.census.gov/arcgis/apps/MapSeries/index.html?appid=49cd4bc9c8eb444ab51218c1d5001ef6 https://www.ers.usda.gov/data-products/poverty-area-measures/ https://www.ers.usda.gov/data-products/food-access-research-atlas/ https://www.ers.usda.gov/data-products/food-access-research-atlas/ 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 healthy fluid milk by SNAP households. Qualifying fluid milk under HFMI is defined as all varieties of pasteurized cow’s milk, including lactose-free, that is:

• Without flavoring or sweeteners,

• Packaged in liquid form,

• Consistent with the Food and Drug Administration, State, and local standards for fluid milk

Vitamin A and D levels, and

• Consistent with the most recent dietary recommendations.

2. Incentive Models

Applicants must propose one of the following models in their proposal:

MODEL 1 (EBT Integration):

*Low/no-fat milk for incentive that is delivered into the household’s EBT account. 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 into their EBT card (i.e. EBT integration) to be used on a subsequent shopping trip for the purchase of any SNAP eligible item at any

SNAP-authorized store.

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

SNAP eHIP is an FNS grant that was awarded in June 2023.

Applicants may also propose limiting the use of earned incentives for the purchase of additional healthy fluid milk or dairy food item if the applicant or applicant’s State partner has that capability.

For this model, if the HFMI applicant is not a State agency that administers SNAP, then the applicant will need to partner with a State that has or is in the process of developing the EBT-integrated infrastructure to implement this model within the project’s period of operation Due to current EBT system limitations, States that have already implemented EBT-integrated incentives and whose incentives are active will not be able to operate HFMI via EBT in parallel.

Requirements for a letter of commitments demonstrating partnership with a State are outlined in number 8 below.

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

Contact information for potential state partners can be provided upon request.

Requests should be emailed to SM.FN.SNAP-Retailer-Grants@usda.gov.

MODEL 2 (Automatic Discount):

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.

Applicants must verify with selected partnering retailers, their third-party processor (TPP), and any additional partners, if applicable, that their proposed solution is viable and that the associated costs are acceptable prior to applying for this grant. Alternative incentive models not specified in this solicitation will not be allowed if the retailer later determines that the proposed solution is not practicable.

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

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.

3. Incentives Amounts

Applicants must indicate the following:

• Whether the incentives will be a percentage-off discount, dollar-off discount, or a dollar-for-dollar match;

• The incentive dollar amount or percentage that will be discounted;

• The maximum incentive amount, if any, that a household may earn per transaction/week/month, etc.;

• When the incentive will be available for redemption (i.e., immediately, next day, within 24 hours, etc.); and

• The expiration date for all non-automatic discount incentives. An expiration date is required for all non-automatic discount incentives and cannot be less than 30 days.

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.

mailto:SM.FN.SNAP-Retailer-Grants@usda.gov

Priority will be given to applicants who target communities, listed under “FY24 Funding Priorities”

(page 11), 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) and must submit a letter of commitment from each partnering retailer (see page 14- for more information) as part of the application package.

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 and convenience stores. The SNAP-authorized retailer partners should offer a range of qualifying fluid milk.

Applicants must indicate the number of retailers they plan to partner with and provide a detailed justification that indicates and explains the likelihood that grant funds specifically designated for the incentive will likely be redeemed by SNAP households over the project period of operation at each retailer. The grantee must agree to make a good faith effort to partner with a sufficient number of retailer locations so that the estimated amount of incentives that will be redeemed is reasonable when compared to the grant funds specifically allocated for incentives.

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) or an FNS-approved incentive waiver.

If a grantee wishes to add additional retailer banners and/or locations during the project period that were not included in the initial proposal, the grantee will be required to submit a written request to FNS, including justification, store name(s), addresses, and FNS numbers. If the grantee 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, restaurant, 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 System Software Upgrades for Retailers in Priority Target Areas: Applicants may propose to use grant funds for system software upgrade costs for independent retailers that sell sufficient quantities of qualifying fluid milk and are located in Priority Target Areas, described in

“FY24 Funding Priorities” (page 11)., for the purpose of providing and/or redeeming HFMI incentive under this grant, including software changes that may be needed to print information https://www.fns.usda.gov/snap/retailer-locator about the incentive earned on the SNAP receipts. Using grants for the purchase of hardware for retailers, such as the POS devices themselves, is not allowed. See Part 4. “Budget”.

6. Incentive Delivery Mechanism

FNS is seeking applicants who, in collaboration with their partners, choose an incentive delivery method(s), that either places incentives onto household’s EBT cards though integration with State

Electronic Benefit Transfer (EBT) systems or provides households with an automatic discount at the point of purchase, as described under Part I.D- Project Design.

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

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 the value of the incentive, and print resulting incentive values on the SNAP receipt.

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.

Incentives delivered through a retailer’s POS system for an automatic discount may require additional technical enhancements if the retailer’s system does not already have the capability.

These retailers would be expected to keep records that provide the value of the incentive discounts provided.

7. Household Earnings Information

Projects should include ways to provide each household with information on the incentive amount or discount earned and, if applicable, the remaining accumulated value of incentives, as well as the expiration date for unused incentives.

Proposals for EBT integration projects must:

• Specify that incentives will be assigned a hierarchy level that maintains first in, first out redemption of benefits;

• Specify that the Automated Response Unit (ARU) will 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; and

• Include, at a minimum, a message on the required printed receipt provided at the point of purchase for all SNAP purchases that indicates the Healthy Fluid Milk Incentive amount issued and the Expiration Date.

While not required for automatic discount models, ideally, proposals for automatic discount projects will include the amount of the discount printed on the required receipt for SNAP purchases. If proposing an automatic discount, please include the feasibility and/or any limitations for including this on the receipt for each partnering retailer.

Technical assistance will be available from FNS as needed.

8. Letters of Commitment

Applicants proposing the EBT integration model (MODEL 1 above) must submit letters of commitment from:

• Each retailer banner or location that will participate in the project;

• Each SNAP State agency where the project will operate (if applicant is not the SNAP State agency); and

• Each State’s EBT contractor for the proposed EBT system changes.

Applicants proposing the Automatic Discount model (MODEL 2 above) must submit letters of commitment from:

• Each retailer banner or location that will participate in the project.

At a minimum, the letters of commitment for either model must include the following as applicable to each partner:

• Confirmation that the proposed solution is viable and that costs are acceptable, including retailer costs associated with:

o Recognizing qualifying foods and totaling their value;

o Applying an automatic discount, if applicable;

o Placing information about the incentive earned on the SNAP receipt, if applicable; and o Meeting reporting and accounting requirements.

• 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.) to meet the reporting and accounting requirements.

• A description explaining partnering retailers’ Third-Party Processor (TPP) provider, the type of POS system the retailer uses, and any changes that will made to the POS system, if applicable, and documentation that shows the retailer has discussed the needed changes and cost with their service providers.

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

o 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 and track incentives using the proposed project design.

Letters of commitment for EBT integration models must also include confirmation from the applicable partner that the EBT and/or retailer system is able to:

• Validate participating HFMI stores;

• Properly calculate and post incentives earned;

• 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 HFMI 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.

• Meet the reporting and accounting requirements.

9. 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.

10. Communication/Outreach Promotion

Applicants must include a detailed plan for communicating information about and promoting

HFMI incentives to SNAP households in their grant application.

The awardee must ensure the following is communicated to SNAP households:

• Availability of 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 retailers;

• The monthly cap amount, if applicable, 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 HFMI promotional materials available at local SNAP offices;

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

• Creating promotional materials for social media accounts; or

• Partnering with the State Agency to send promotional materials through direct mail to

SNAP recipients in the participating retailer’s area. State Agencies may not provide outside entities with a list of SNAP recipients’ mailing addresses, even under a MOU.

11. Nutrition Education Component

SNAP EBT integrated and automatic discount incentives apply to all SNAP households 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 to bring more awareness to the HFMI program. Proposals should include a description of planned activities.

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

Data Collection and Evaluation

Given the limited funds available, FNS will conduct 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 or discounts issued, and (3) sales of fluid milk, as described below. Data should be reported separately by retailer outlet (e.g., individual store/market locations).

Awardees may not change the amount of the incentive or discount provided by an individual retailer outlet without FNS approval.

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 the 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 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;

• Sales of qualifying skim/non-fat milk, broken out by SNAP EBT and all other tenders1;

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

See Attachment A for the required data template that will need to be submitted to FNS monthly.

1 WIC EBT sales should be included with “other tenders”, distinguished from SNAP EBT sales.

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 a week defined as Sunday to Saturday. Each week shall be presented as a row in a cumulative spreadsheet (see template attached). The updated spreadsheet shall be shared with FNS by the first Wednesday of each month. These submissions 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. The submission shall specify which week(s) each circumstance occurred. Applicants may propose to provide other data elements, including but not limited to the number of unique SNAP participants earning incentives or discounts. 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 either (1) historical data from participating retailer outlets or (2) current data from comparison retailer outlets. Historical data refer to data from at least 3 months preceding incentive program implementation and include SNAP EBT and all other sales of skim/non-fat and

1%. 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 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.

Applicants should share the data template (see Attachment A) with retailers when seeking partnerships to ensure all parties are aware of the required fields. 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.

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, however, it will be factored into other scored sections as appropriate and could impact selection.

Key Timeframes

The period of performance for the FY 2024 SNAP HFMI Cooperative Agreement will not exceed 4 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.

First-time HFMI grantees will be required to participate in biweekly conference calls with FNS during the initial implementation. Thereafter, and for any grantees who have received HFMI funding in the past, will be required to participate in conference calls as needed, to report on project progress/status to FNS. Formal progress and financial reports are due quarterly.

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.

Roles and Responsibilities of this Cooperative Agreement

FNS will provide technical assistance to the awardee. FNS will approve major aspects of the project in advance of implementation in a manner and timeframe agreed upon between the awardee 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 has overall responsibility for project planning, implementation, and operations in cooperation with retailers and other partners as designated by the awardee. 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 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 audits 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.

As outlined in Design Parameter #8 above, to demonstrate that the applicant and its partners possess strong capability to work together to successfully carry out the obligations of this agreement in a timely, efficient, and effective manner, applicants must 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.

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-Retailer-

Grants@usda.gov. Please ensure that all inquiry emails include the grant officer (please refer to

Section 7) copied in the CC line.

Incentive Restrictions

HFMI Qualifying Fluid Milk. An HFMI project must incentivize the purchase of HFMI qualifying fluid 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.

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

SNAP-Ed 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.

• The Electronic Healthy Incentives Project (eHIP) is a grant program targeted 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. Participation in both eHIP and HFMI is permitted, however each program has its own separate funding, participation, and reporting requirements. HFMI awardees participating in eHIP cannot comingle funds between the programs and must meet each program’s participation and reporting requirements.

Proposal Changes

If the awardee wishes to make changes within the scope of their plan after HFMI funds have been awarded, then the awardee must, in accordance with accompanying terms and conditions, notify

FNS in writing and in detail, regarding the change and the budget impact, and receive approval for the proposed change.

Sales Tax

In accordance with 7 U.S.C. 2013 (a), 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 not be refunded with cash. Proposals must indicate the process for returns and refunds to mitigate against the ability of a household to earn an incentive without the required SNAP purchase.

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 firms 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 participate in the HFMI project. The MOU must be signed and dated by the awardee project director(s) and all of the firm’s owners. If the awardee is working with a chain of centrally-owned and operated firms, then one MOU that includes all relevant information on every participating firm location will be sufficient. The applicant/grantee organization should keep the original MOU in their records and be able to present it in the event of an audit.

Noncompliance with Program Policy

Note: These conditions will also be included in the awardees Terms and Conditions.

Awardees and their participating firms are expected to comply with all of the policies and requirements laid out in this RFA document as well as any HFMI or SNAP policies or requirements further…