Recompete Pilot Program Phase 1 NOFO.pdf

NOTICE OF FUNDING OPPORTUNITY

EXECUTIVE SUMMARY

• Federal Agency Name: Economic Development Administration (EDA or the Agency), U.S. Department of Commerce (DOC).

• Federal Funding Opportunity Title: FY 2023 Distressed Area Recompete Pilot Program Phase 1 Notice of Funding Opportunity (NOFO) (Recompete Pilot Phase 1 NOFO).

• Announcement Type and Date: Recompete Pilot Program Phase 1 NOFO publishing EDA’s application submission requirements and application review procedures under the Distressed Area Recompete Pilot Program (Recompete Pilot Program), as authorized by section 29 of the Stevenson- Wydler Technology Innovation Act of 1980, as amended (15 U.S.C. § 3722b). Effective date: June 29, 2023.

• Funding Opportunity Number: EDA-RECOMPETEPHASE1-2023

• Catalog of Federal Domestic Assistance (CFDA) Number: 11.040, Distressed Area Recompete Pilot Program

• Dates: This is a two-phase competition. The deadline for Phase 1 applications is 11:59 p.m. Eastern Time on October 5, 2023. Applications received after this deadline will not be reviewed or considered. Only those that receive approval for a Recompete Plan in Phase 1 will be permitted to apply to Phase 2, as Finalists of the Recompete Pilot Program. It is anticipated that the Notice of Funding Opportunity for Phase 2 will be made available in winter 2023.

EDA may amend, cancel, or withdraw the Recompete Pilot Program Phase 1 NOFO at any time. All changes will be communicated via Grants.gov.

• Eligible Applicants: Pursuant to section 29(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. § 3722b(j)(2) and (j)(7)), eligible applicants under this NOFO include: (i) a unit of local government; (ii) the District of Columbia; (iii) a territory of the United States; (iv) a Tribal government; (v) political subdivisions of a State or other entity, including a special-purpose entity engaged in economic development activities; (vi) a public entity or nonprofit organization, acting in cooperation with the officials of a political subdivision of a State or other entity described in (v); (vii) an economic development district; and (viii) a coalition of any of the above entities that serve or are contained within an eligible geographic area. See section A.1.c. of this NOFO for a description of eligible geographic areas.

Individuals and for-profit entities are not eligible for funding under this NOFO.

• Funding Opportunity Description: Subject to the availability of funds, awards made under this NOFO will seek to alleviate persistent economic distress and support long-term comprehensive economic development and job creation, in places with a high prime-age (25 to 54 years) employment gap.

FULL ANNOUNCEMENT TEXT

FY 2023 EDA Distressed Area Recompete Pilot Phase 1 Notice of Funding Opportunity

A. Program Description

1. Competition Structure and Program Information

a. Goal of the Competition ……………………………………………………………………………………………………. 4

b. Competition Structure ………………………………………………………………………………………………………. 5

c. General Requirements ………………………………………………………………………………………………………. 6

d. Strategy Development Grants ………………………………………………………………………………………

e. Recompete Plan Approval ……………………………………………………………………………………………….. 11

f. Implementation Grants ………………………………………………………………………………………………….…. 13

2. Statutory Authorities for EDA’s Recompete Pilot Program

B. Federal Award Information

1. What Funding Is Available Under this Announcement?

2. What Type of Funding Instrument Will Be Used to Make Awards? How Long Will a Project’s Period of Performance Be?

C. Eligibility Information

1. Eligible Applicants

2. EDA Investment Rate

D. Application and Submission Information

1. Obtaining an Application and Electronic Submission through EDGE

2. Content and Form of Applications

3. Submission Dates and Times

4. Intergovernmental Review

5. Funding Restrictions

6. Other Submission Requirements

7. EDGE Systems Issues

E. Application Review Information

1. Criteria, Review, and Selection Process

2. Grants Officer’s Decision

3. Review of Responsibility/Qualification Information in SAM.gov

F. Federal Award Administration Information

1. Federal Award Notice

2. Administrative and National Policy Requirements

3. Reporting

G. Federal Awarding Agency Contact

H. Other Information

1. Right to Use Information

2. Freedom of Information Act Disclosure

3. Notice of Government-Wide Procurement Restriction

4. Past Performance and Non-Compliance with Award Provisions

5. Certifications Required by Annual Appropriations Acts for Corporations and for Awards over $5

Million

6. EDA’s Non-Relocation Policy

7. NOFO Changes Communicated on Grants.gov

8. Disclosure of Information

9. Audit Requirements

10. Fraud Awareness Training

11. Office of Inspector General Rights and Responsibilities

A. Program Description

1. Competition Structure and Program Information

a. Goal of the Competition

The Distressed Area Recompete Pilot Program (Recompete Pilot Program) aims to alleviate persistent economic distress and support long-term, comprehensive economic development and job creation in places with a high prime-age (25 to 54 years) employment gap. The program uses prime-age employment gap (PAEG) as an indicator of economic distress because it accounts for prime-age workers who have stopped looking for jobs and left the labor force, not just those who are currently unemployed. In the execution of this goal, EDA will seek to invest in programs and organizations that have a clear understanding of local conditions and pathways to create and connect people with good jobs while ensuring the program’s benefits are shared equitably and across diverse geographies. EDA’s longstanding mission is to ensure that all communities have a path to economic prosperity, and through the pilot program EDA will support communities with high prime-age employment gaps through flexible, bottom-up strategy and implementation grants that tackle the unique challenges these communities face.

b. Competition Structure

The Recompete Pilot Program will invest in distressed communities to create, and connect workers to, good jobs 1in places that need them most. The program specifically targets distressed communities to spur a new chapter of opportunity in those areas. This includes, but is not limited to, areas where prominent industries have declined or disappeared, that were physically separated by highway construction, or that have endured decades of disinvestment.

They may be urban, suburban, or rural, but they have low labor force participation rates that are holding back prosperity.

EDA will run this competition in two phases through two separate Notices of Funding Opportunity (NOFOs). In this Phase 1 NOFO, EDA will fund Strategy Development Grants and will approve Recompete Plans for certain regions.

Applicants to this Phase 1 NOFO must choose whether they are pursuing a Strategy Development Grant, approval of a Recompete Pla n, or both. Strategy Development Grants are funded and are discussed in greater detail below in section A.1.c. Recompete Plan approval, on the other hand, is unfunded, but is a prerequisite to applying to the Phase 2 NOFO. Under the Phase 2 NOFO EDA will award Implementation funding.

Thus, if an applicant would like to compete for Implementation funding under the upcoming Phase 2 NOFO, it should at minimum apply for Recompete Plan approval under this Phase 1 NOFO (the applicant can also apply for a Strategy Development Grant if it so chooses). Recompete Plan approval is discussed in more detail below in section A.1.d.

In a future Phase 2 NOFO, applicants with approved Recompete Plans will compete for funding for Implementation projects. Phase 2 Implementation funding is discussed in greater detail below in section A.1.e.

EDA will provide technical assistance during the period between Phase 1 announcements and the Phase 2 application deadline to all applicants who receive Strategy Development Grants and/or whose Recompete Plans are approved. Building on the model developed in the Build Back Better Regional Challenge, as part of the two-phase competition, these applicants will have equal access to experts to improve the quality of their Phase 2 applications.

1 See https://www.dol.gov/general/good-jobs/principles.

How do I know what to apply for?

A Strategy Development Grant Only

“Our region has relevant ideas, leaders, and/or assets, but we need to do significantly more coordination and planning to be ready for Implementation funding.

We do not wish to apply for Implementation funding under the upcoming Phase 2 NOFO.”

Recompete Plan Approval Only

“Our region is ready to apply for Implementation funding and does not need additional resources to put together a strong Phase 2 application.”

Both Plan Approval and a Strategy Development Grant

“Our region has an understanding of how to address low labor force participation and is close to being ready to apply for Implementation funding. Additional resources would strengthen our coordination, planning, and Phase 2 application development.”

Whether a region chooses to apply for a Strategy Development Grant won’t affect EDA’s decisions related to Recompete Plan approval in this phase or awarding Implementation Grants in the next phase—each will be evaluated separately. See sections D.2., E.1.a., and E.1.b.

https://www.dol.gov/general/good-jobs/principles

c. General Requirements

Across both phases of the Recompete Pilot Program competition, several general requirements must be addressed in the application materials (see section D.2. below).

i. Why does Prime-Age Employment Gap (PAEG) matter, and how is it calculated?

Based on statute,2 the Recompete Pilot Program relies on a metric called the prime-age employment gap (PAEG) to establish geographic eligibility based on economic distress. Because of this, it is unlike EDA programs funded under the Public Works and Economic Development Act of 1964, as amended, which use 24-month unemployment rates, per capita income, and special need (e.g., natural disasters) to demonstrate eligibility.

The Recompete Pilot Program uses PAEG as an indicator of persistent economic distress because it accounts for prime-age workers who have stopped looking for jobs and left the labor force, not just those who are currently unemployed. Whether they stopped looking for work because local job opportunities are extremely limited or because they struggle to meet the qualifications, lack reliable transportation, need assistance with childcare, or have other reasons, these places require significant support for prime-age workers to reengage in the local workforce. Note that in this competition, EDA is targeting geographies where a high prime-age employment gap exists because good jobs are not available and/or barriers keep people out of the workforce (e.g., supportive services are lacking), not places where demographic trends lead to high PAEG (e.g., high numbers of financially secure early retirees or people pursuing higher education).

PAEG is determined based on the prime-age employment rate, which is the percentage of the age 25-54 population that is currently working. PAEG is the difference (expressed as a percentage) between (i) the national 5-year average prime-age employment rate; and (ii) the 5-year average prime-age employment rate of the eligible area.3 Five-year data are used to determine PAEG in most cases because rolling averages of PAEG provide a more stable, accurate representation of a community’s level of distress over time than a snapshot measurement. Specific PAEGs for eligible areas are enumerated in A.1.c.ii. below.

The statute also requires a unique calculation to determine the PAEG for “Tribal lands”. See 15 U.S.C. § 3722b(j)(9). Unfortunately, some of the required data is unavailable for such areas at this time, a fact that was confirmed through formal Tribal Consultation.4 However, basic unemployment data is available that indicates a high likelihood that both Tribal lands have a high PAEG. As such, EDA has determined that all Tribal lands are eligible to participate in the program. See section B.1. of this NOFO below for a discussion on how the maximum grant rate in Phase 2 will be determined for Tribal lands given the lack of data.

The data required to calculate PAEG is also unavailable for some Pacific Ocean Territories. As with Tribal lands, basic unemployment data is available that indicates a high likelihood that Pacific Ocean Territories have a high PAEG. Thus, EDA has determined that Pacific Ocean Territories are also eligible to participate

2 15 U.S.C. § 3722b(j)(1).

3 EDA is specifically using 5-year American Community Survey data.

4 The Tribal Consultation was conducted in accordance with Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments” (Nov. 6, 2000), the Department of Commerce’s Tribal Consultation and Coordination Policy (Apr. 26, 2012), and Presidential Memorandum, “Tribal Consultation and Strengthening Nation-to-Nation Relationships” (Jan. 26, 2021).

in the program. See section B.1. of this NOFO below for a discussion on how the maximum grant rate in Phase 2 will be determined for these areas given the lack of data.

ii. What geographic areas are eligible to participate in the Recompete Pilot Program?

EDA has developed a Recompete Eligibility Mapping Tool (Mapping Tool), a user-friendly map of areas that are eligible based on the required data about a region’s PAEG and median household income, including all Tribal lands and Pacific Ocean Territories, that can be found here. Applicants generally should reference the map in their applications and use either the Eligible/Service Area List Template here or submit a screenshot generated by the Mapping Tool as proof of eligibility. If the applicant represents a region that the Map does not indicate is eligible, the applicant may submit data showing eligibility that EDA will verify.

By statute, Recompete Pilot Program investments must be located in one of two eligible area types and meet certain PAEG requirements, both of which are represented in the Mapping Tool.5 The two eligible geographic areas are:

• Local Labor Markets (LLMs): a Metropolitan Statistical Area, a Micropolitan Statistical Area, a commuting zone, or Tribal lands. LLMs with a PAEG of at least 2.5% are eligible.

o For the purposes of this competition, all Tribal lands and Pacific Ocean Territories are considered eligible LLMs.

• Local Communities (LCs): areas served by a general-purpose unit of local government (e.g., county government, municipal government) that is located within but does not cover the entire area of an LLM (as defined above) and meets the following criteria:

o It exists within an LLM that does not qualify for Recompete funding; and o EITHER:

The entire area served by the unit of local government on average has a PAEG of at least 5% and a median annual household income of no more than $75,000; or

The area served by the unit of local government has five or more contiguous Census tracts that each individually have a PAEG of at least 5% and median annual household income of no more than $75,000. In this instance, the applicant’s service area must be contained within the identified Census tracts.

iii. What entities are eligible to participate in the Recompete Pilot Program?

Eligible applicants under this NOFO include: (i) a unit of local government; (ii) the District of Columbia;

(iii) a territory of the United States; (iv) a Tribal government; (v) political subdivisions of a State or other entity, including a special-purpose entity engaged in economic development activities; (vi) a public entity or nonprofit organization, acting in cooperation with the officials of a political subdivision of a State or other entity described in (v); (vii) an economic development district; and (viii) a coalition of any of the above entities that serve or are contained within an eligible geographic area. Some institutes of higher education will also be eligible if they fall within one of the above categories.

5 15 U.S.C. § 3722b(j)(1).

https://disgeoportal.egs.anl.gov/Recompete/ https://www.eda.gov/sites/default/files/2023-06/Recompete_Eligible-Service_Area_List_Template_vF.xlsx

Applicants must be one of the above eligible entity types and be located within or serve an area indicated as eligible on the Mapping Tool (or provide data showing eligibility if the geography is not reflected in the Mapping Tool) and be able to represent and act on behalf of the eligible area.

Pursuant to 15 U.S.C. § 3722b(e)(1), no more than one grant may be awarded to eligible entities within a single eligible geographic area (i.e., within an LLM, there may be only one grant awarded in each Recompete phase).

iv. Are there any special considerations for coalitions compared to individual applicants?

No specific type of eligible entity is any more or less competitive than other types of eligible entities. The strongest applicants, however, will demonstrate the ability to engage broadly in the community and support implementation of a wide range of potential targeted actions related to reducing their area’s PAEG. EDA expects that applicants will collaborate with relevant partners that can contribute to the effort. However, EDA is cognizant that areas with a high PAEG are diverse, and some may have one entity that is clearly well-positioned to lead while other areas may be better positioned to form a coalition.

If a coalition decides to apply, it does not need to have a formal legal structure (i.e., a contractual arrangement or public-private partnership) but should develop a governance plan prior to applying for Phase 2 funding.

Coalition applicants also must identify a lead member organization that commits to, if selected for Phase 2 funding:

• be the principal applicant for the Phase 1 Strategy Development Grant and/or Phase 1 Recompete Plan approval;

• serve as EDA’s main point of contact during the competition and implementation;

• be the employer of the Recompete Plan Coordinator (RPC) (described below) or have an established relationship with that employer (note an RPC is required even if the application does not involve a coalition; see below);

• serve as the central coordinator across the eligible geography, to convene public, private, educational, and civic leaders to facilitate bottom-up, middle-out competitiveness;

• establish and maintain communication between the region and/or coalition and EDA to enable and accelerate collaboration and support; and

• ensure funding and other assistance provided by EDA and any other partners are effectively coordinated and braided within communities.

If a coalition wins a Phase 2 Implementation award, the lead member organization will have additional duties related to the ongoing governance structure of the collection of implementation projects funded to ensure they remain cohesive and coordinated. Governance in this context means ensuring that the coalition is communicating and coordinating activities and outcomes. The lead member may also receive funding for specific implementation project(s) in Phase 2. These details will be further addressed in the forthcoming Phase 2 NOFO.

Are EDA Good Jobs Challenge (GJC) and Build Back Better Regional Challenge (BBBRC) Finalists and Winners eligible to participate in the Recompete Pilot Program?

Yes, provided they meet the other eligibility criteria for the Recompete Pilot Program and, if they are applying for funding, are only seeking funding for a scope of work separate from what was funded under GJC or BBBRC.

Regardless of whether an application represents a coalition or single organization, EDA fully anticipates partnerships between applicants, businesses, institutions of higher education, labor unions and federations, non-profits and other regional organizations. In Phase 2, lead organizations should be prepared to articulate how those partnerships are structured and governed, whether formally or informally.

v. What is required in letters of support?

Whether an individual entity or a coalition applies, EDA expects letters of support from regional organizations necessary for success—specifically, targeted employers, labor unions, education and training systems, philanthropy, and nonprofit organizations that can support wraparound services e.g., child/long-term care, onsite health services, transportation assistance) and other needs. An exhaustive list of all relevant organizations is not necessary to win a Strategy Development Grant or receive approval of a Recompete Plan. The primary focus in Phase 1 is for applicants to demonstrate they understand local needs and assets and have a clear sense of the relevant stakeholders necessary for success. EDA considers quality of letters more than sheer volume. EDA expects the number of commitment-making partners to expand and the commitments to become more specific in Phase 2, including applying for and executing an individual component project or making hiring, match funding, co-investment, or policy change commitments for the overall benefit of the community.

EDA also expects that if a region applies as a coalition, that the regional partners will evolve and views it as a success if more members join or the membership is refined to reflect the exact parameters of the Phase 1 Strategy Development grant or Phase 2 Implementation Grant.

vi. How will EDA ensure applicants serve the eligible geography?

Because the Recompete Pilot Program endeavors to assist distressed areas, applicants need to demonstrate that they can adequately represent the eligible area and deliver the solutions proposed in any Recompete Plan.

Thus, applicants, including lead members of a coalition, must demonstrate they are authorized to represent and act on behalf of the eligible geographic area, as described at 15 U.S.C. § 3722b(j)(2). While applicants may be located outside of the eligible geography, they must clearly articulate why they are uniquely positioned to serve the region and that they are serving with the support of the eligible area and have the capacity and leadership to meaningfully increase prime-age employment over the duration of the grant.

Whether an applicant represents a small or large eligible area as represented on the Mapping Tool, it should consider the service area of the investments—that is, the people, and particular areas, that stand to benefit from the Recompete Pilot Program. As part of their application, applicants should identify their chosen service area. The service area may be all or any subset of the eligible area. Some proposals may specifically focus on certain neighborhoods or communities to have the highest impact. Applicants may decide concentrating investments is a better strategy than distributing the benefits evenly across the eligible geography. In any case, EDA will prioritize those applications that focus on interventions that aim to significantly increase prime-age labor market employment and wages.

vii. What is the role of the Recompete Plan Coordinator (RPC)?

EDA believes local champions and change agents are essential and investments are only successful with the right leadership, including leadership that reflects the diverse populations they serve. The RPC role is meant to coordinate across relevant entities and help ensure a successful implementation of Recompete Plans. The specific obligations of the role may vary based on regional assets and needs. EDA encourages applicants to identify strong, diverse talent and place that person in a leadership role to catalyze strong, lasting partnerships across the area, including with the private and public sectors such as other federal partners, and philanthropic supporters. Throughout Phase 2 the RPC and other leadership positions will be critical to success. While not all applicants will have an RPC identified in Phase 1, all applicants should provide a strategy for identifying the right leadership team for their community. Having an RPC or a plan to hire one will be a requirement for Phase 2.

d. Strategy Development Grants

An applicant to the Recompete Pilot Phase 1 NOFO may apply for a Strategy Development Grant, either alone or along with a request for approval of a Recompete Plan. Where an applicant applies only for a Strategy Development Grant, the grant is intended to facilitate a region in becoming more competitive for future approval of a Recompete Plan and thus eventually for Implementation Grants. Some eligible entities that are strong candidates for Recompete Plan approval (discussed below in section A.1.d.) may not have a compelling case for a Strategy Development Grant.

Strategy Development Grants may fund the following types of activities:

(1) Coordination and execution of an inclusive, locally-defined planning process, across jurisdictions and agencies, to develop a comprehensive regional strategy to address high prime-age employment gaps in the regions (i.e., a PAEG strategy);

(2) Identification and fostering of regional partnerships for developing and implementing a comprehensive regional PAEG strategy;

(3) Implementation or updating of assessments to determine regional needs and capabilities;

(4) Development or updating of goals and strategies to implement an existing comprehensive regional PAEG strategy;

(5) Identification or implementation of planning, local zoning, and other changes to code, law, or policy necessary to implement a comprehensive regional PAEG strategy;

(6) Development of plans for promoting broad-based economic growth in a region;

(7) Hiring of the coalition’s RPC to lead the overall effort and other necessary staff;

(8) Formation of a workforce development strategy, according to the needs for a skilled and diverse technical workforce aligned with the region’s strengths;

(9) Activities necessary to prepare for strategy implementation, which may include workforce development strategies, environmental, and engineering documentation, if applicable; and

(10) For Tribal entities and Pacific Ocean Territories, collection of data on the population of individuals ages 25 through 54 to determine PAEG. For Tribal entities this includes collection of data related to such individuals residing on and off Tribal land consistent with the information requested in 15 U.S.C. § 3722b(j)(9).

In the required Project Narrative (see section D.2. below), the applicant must describe the Strategy Development and predevelopment activities it proposes to undertake. The Project Narrative should also clearly demonstrate the applicant’s deep understanding of the region and its needs, including the conditions that led to low employment participation by the region’s prime-age residents; inventory existing community or regional assets that are critical to reducing the PAEG; and identify tested interventions that address regional needs and leverage regional assets to grow the local economy.

Note: Matching share is not required in Phase 1 but will be part of the Phase 2 evaluation criteria.

By statute, Strategy Development Grants may not be used as a prerequisite for Implementation Grants.

e. Recompete Plan Approval

An applicant to the Recompete Pilot Phase 1 NOFO may submit a Recompete Plan for approval. Only applicants with an approved Recompete Plan at the conclusion of Phase 1 of the competition (i.e., Finalists) will be permitted to apply for Implementation funds under the Recompete Pilot Phase 2 NOFO.

Thus, if an applicant would like to compete for Implementation funding under the upcoming Phase 2 NOFO, it should apply for Recompete Plan approval under this Phase 1 NOFO.

Recompete Plan approval signifies that the eligible entity has a multi-year plan for reducing the PAEG of the eligible area with a strong probability of success. EDA’s evaluation of a region’s plan is detailed in section E.2 and must be addressed in the applicant’s application materials (see section D.2. below).

A competitive Recompete Plan will demonstrate the following six elements:

(1) Understanding of regional conditions and needs – Recompete Plans should reflect a deep understanding of the region and its needs, including the conditions that led to a high prime-age employment gap among the region’s prime-age residents. They should be specific in detailing the contributing local conditions, employment barriers for different targeted populations, job quality, and geographic considerations. Beyond the PAEG, applicants are encouraged to provide qualitative and quantitative data that supports the region’s needs, including demonstrating persistent economic distress, and justifies potential investments.

(2) Strength of strategy and quality of potential investments – Recompete Plans should clearly articulate a strategy to address causes of the local high prime-age employment gap identified in element #1 above and the particular geographic locations to be targeted. Applicants should outline the investments they anticipate asking EDA to fund through a Phase 2 NOFO that will help increase per capita wages and close the prime-age employment gap (EDA expects Recompete Plans to include 3-8 Implementation Grant projects that aim to collectively address the region’s key inhibitors of prime-age employment participation and low wages), though EDA recognizes those may evolve or be refined between Phase 1 and submission of a Phase 2 application. EDA encourages applicants to draw from proven interventions; local expertise, organizations, unions, and companies; and practitioner and research findings. The likelihood of success depends on a combination of the strength of the overall strategy (e.g., sources of potential economic growth), track record of the applicant, and quality of the identified interventions. When describing specific interventions, applicants should include the proposed programs and activities, high-level budget estimates (see below regarding a template), and roles and responsibilities of the entities that would execute the interventions. EDA expects that budgets and project specifics will be refined and shared in greater detail if the Recompete Plan is approved and the applicant applies for a Phase 2 Implementation Grant. For Phase 1, a high-level budget estimate is sufficient; see section D.2. for a template for this budget estimate.

(3) Equity, inclusivity, accessibility, and diversity – Recompete Plans should articulate how they will actively engage underserved communities in planning and ensure benefits are shared equitably across all affected populations, including through efforts to reach historically underserved populations and areas (whether rural, urban, or suburban), communities of color, women, and other groups facing labor force barriers such as people without four-year college degrees.

Historical commitments to equity, inclusivity, accessibility, and diversity by applicants and their identified partners, including any prior related concrete successes, will be relevant. The plan should include letters of support from entities that represent underserved communities, businesses, and/or workers. As with all letters of support, EDA puts a premium on quality over quantity. Successful applicants will align budgets, coalition leadership and governance to their equity and diversity priorities. EDA recognizes prioritizing equity means applicants may partner with organizations new to federal grants.

(4) Regional assets – Recompete Plans should inventory existing community or regional assets that are specific to their geography and critical to reducing the PAEG. This may include industries, natural assets, educational institutions (including community colleges and other educational institutions, etc.), or other organizations that have the potential to change the regional economic dynamics (e.g. unions, workforce entities, community and faith-based organizations, etc.). The plans should also identify how new EDA resources along with existing federal, state, or other funding options can unlock the potential of these regional assets in ways and/or at a scale that previous efforts could not. If assets are industry-specific, applicants should also address the degree to which these assets will remain competitive and relevant over time.

(5) Targeted geographic approach – The Recompete Pilot Program is intended to fundamentally improve and increase opportunities in persistently distressed communities. The goal of the program is to support long-term prosperity of the particular place. Applicants should specifically identify their service area within the eligible geography and how the proposed interventions will create long-run, sustained benefits to that area. Recompete Plans should lay out a path to ensuring residents who are not employed or participating in the labor market have access to career pathways, in line with Good Jobs Principles. There are a number of geographically-targeted approaches to creating good jobs and connecting people to them, including small business support, neighborhood programming, and sector-specific training. Applicants should have a preliminary articulation of what types of jobs they anticipate either creating or placing people into through their Recompete Plan, understanding that EDA will be cognizant of each region’s baseline job mix.

(6) Partnerships and potential commitments – Recompete Plans should show how key local, regional, and state partners, including underleveraged or underrepresented organizations and residents, are engaged or will be engaged, and that they are committed to reducing the PAEG.

Applicants are encouraged to indicate in their application the firms, institutions, state and local governments, labor unions or federations, and other local partners who have committed or the applicant will ask to commit to creating good jobs, changing policies and practices, and otherwise supporting the Recompete effort. There must be strong alignment and a shared strategic vision in the region and a plan to leverage local or regional partners’ skills and/or constituencies to achieve better project outcomes. In that regard, a history of collaborating and achieving concrete successes, including at smaller scales, will be relevant. Recompete Plans should demonstrate how other public (including other federal), private-sector, or philanthropic dollars may be leveraged to support the effort. Applicants are encouraged to identify how other federal programs may assist in meeting ancillary needs including infrastructure, education and training, workforce housing, child/long term care, public health challenges (including need for additional mental health or addiction care), broadband, and the like, and this may also include plans to more effectively coordinate and braid such other sources of funding. Note that EDA will be cognizant of the different base levels of funding available in a region. An applicant will not be less competitive if there are simply fewer of these resources available to be leveraged. Rather, applicants will be more competitive to the extent that they are able to leverage what resources are available in a community.

More specific and concrete partner commitments will be required in Phase 2 (see section A.1.f.i.

for examples). Matching dollars are not required in Phase 1 or Phase 2. Matching dollars will be considered in Phase 2 but so will other complementary projects or initiatives that support the Recompete goals.

f. Implementation Grants

EDA will award Implementation Grants competitively under the forthcoming Recompete Pilot Phase 2 NOFO to a subset of eligible entities with Recompete Plans approved under this Recompete Pilot Phase 1 NOFO (i.e., Finalists). Because Recompete Plans submitted for approval will identify programs and activities that would be carried out with Implementation Grants, understanding what EDA may fund with Implementation Grants is critical.

Implementation Grants can fund a wide range of non-construction and construction activities that aim to increase regional capacity across the following four broad categories: workforce development;

business and entrepreneur development; infrastructure; and additional planning, predevelopment, or technical assistance.6 The program is designed to provide significant flexibility for applicants to address the necessary physical, social, and economic barriers to jobs and career pathways. Given the nature of the program, EDA may make investments in areas it historically has not funded. For example, EDA understands there may be a suite of necessary interventions to increase employment, job quality, and wages, such as wraparound services. However, applicants will need to clearly explain how any requested EDA investments directly serve the purpose of the program and can clearly demonstrate intended economic development results.

This large suite of eligible activities is designed to meet the individual needs and address the causes of high PAEG and low wages in a particular place. In each region selected for Implementation Grants, EDA expects to fund approximately 3-8 Implementation Grant projects that aim to collectively address the region’s key inhibitors of prime-age employment participation and low wages at a total funding level that depends on the area of eligibility.

The section immediately following this one (section A.1.f.i below) contains illustrative examples of possible project ideas for both types of areas. EDA encourages applicants to propose the interventions that are best suited for their area, that can achieve measurable outputs and outcomes, and be achieved on schedule and within the planned budget. EDA’s goal is to ensure applicants build Recompete Plans based on a deep understanding of the specific labor force dynamics of their community.

See section B.1. for expected funding levels. While the amount requested and awarded will depend heavily on the types of interventions a particular place needs, efforts to create jobs may require larger investments in public assets, and efforts to connect workers to existing jobs may be more programmatic

6 See 15 U.S.C. § 3722b(c) for a more comprehensive list of allowable activities within these four broad categories.

and thus cost less. Accordingly, it will be critical for applicants in Phase 2 to explain why the requested amount is appropriate for the interventions identified as necessary for that region and for the number of people expected to be newly employed based on those interventions.

i. What are some examples of Recompete Pilot Program implementation investments?

EDA expects Implementation Grants will fund two general economic development intervention approaches: creating new good jobs in the region and connecting people to existing jobs. The specific projects that are necessary to accomplish these types of interventions may be different, and below EDA has provided illustrative examples of projects for each approach. These illustrative examples are intended only as a reference for applicants as they are developing ideas for their Recompete Plans.

Areas where more jobs are needed in general to close the PAEG (and increase career pathways and wages) are encouraged to clearly articulate a strategy that reflects labor market conditions, creates new quality job opportunities, and demonstrates how those new jobs will go to existing unemployed and underserved or non-participating residents. Areas that need to create more good jobs might fund:

• Critical enabling infrastructure (e.g., brownfield redevelopment, workforce training centers near workers)

• Anchor institution partnerships (e.g., anchor firms, ports, community colleges, universities, hospitals, etc.)

• Economic development capacity and leadership (e.g., governance, etc.)

• Sector-specific support and training for high-demand local sectors and jobs (e.g., a sectoral partnership, funding intermediaries to support employers with inclusive workforce development, etc.)

• Remote worker training and connection programs (e.g., with employers outside a labor market)

• Wraparound or supportive services (e.g., child/long-term care, onsite health services, transportation assistance, as appropriate)

Areas in proximity of good jobs (e.g., neighborhoods, suburbs near employment centers) are encouraged to consider how their Recompete Plan connects workers to and keeps them employed at existing jobs within the broader labor market through active labor market policies, wraparound services, or other needed interventions. An area nearby to existing jobs that needs to connect people to them might fund:

• Sector-specific workforce training that reflects the existing employment conditions with employer commitments (see below for examples) that bring together employers and workers and create economies of scale for high-demand jobs (e.g., a sectoral partnership, Registered Apprenticeship and pre-apprenticeship programs, community college programs, funding intermediaries to support employers with inclusive workforce development, etc.)

• Consistent and reliable transportation, usually providing access to existing transportation, but potentially investing in infrastructure, bus lines, etc.

• Wraparound or supportive services (e.g., child/long-term care, onsite health services, transportation assistance, as appropriate)

• Other active labor market support (e.g., community mentorship programs, job search assistance, post-placement success coaching, neighborhood employment hubs)

• Economic development capacity and leadership (e.g., governance, etc.)

EDA encourages applicants to propose the interventions that are most applicable to their local conditions, whether or not they are on the above lists of illustrative examples.

EDA expects workforce development activities to be in line with DOC’s workforce best practices,7 support placement into good jobs and incorporate worker input into their design and delivery. For more information on the definition of good jobs, please review DOC’s and the Department of Labor’s Good Jobs Principles , which describe a shared federal vision for job quality.

ii. What commitments to policy change and outcomes are expected?

EDA’s investments are most effective when combined with local action to change or reform policies, practices, and outcomes that make it harder for people to access work. Regardless of whether an applicant is connecting workers to jobs or creating new jobs, EDA anticipates all successful Phase 2 awardees will have credible, specific, and timely commitments to making such changes in their communities. While firm hiring commitments are critically important to reducing the PAEG in a region, there are many other things firms, state and local governments, foundations, institutions of higher education, and others can do to improve local communities. Some of the most important ways a community can unlock economic opportunity is for the local public and private sector to operate differently and cooperatively. Phase 1 applicants should begin thinking about commitments, though fully developed and agreed upon commitments are not expected until Phase 2.

Examples of commitments to policy change and outcomes might include:

• Anchor institutions such as firms, hospitals, and universities work together to develop standardized hiring requirements for certain occupations

• Private-sector commitments to recruitment in a particular distressed neighborhood or geography

• Eliminating four-year degree requirements for certain occupations and support for employers to adopting skills-based recruitment and hiring practices

• Aligning new investments and programming with existing benefits like SNAP, affordable housing programs, and Medicaid

• Data sharing agreements between state and local agencies, as well as local service providers, to improve service delivery and support

• New leadership roles hired within public, private, and educational institutions focused on economic opportunity within distressed communities

• Procurement decisions to support distressed communities and businesses owned by underrepresented populations

• Local transportation agencies removing physical barriers to job opportunities by increasing or improving access to and convenience of public transportation

7 See https://www.commerce.gov/issues/workforce-development.

https://www.commerce.gov/issues/workforce-development

• Other commitments to improving the area and supporting workers, such as increasing supply of and providing access to affordable housing and high-quality child/long-term elder care

Ultimately, the Recompete Pilot Program is meant to allow maximum flexibility for applicants to propose the investments and policy changes needed for their community to thrive. EDA encourages applicants to be bold and creative in thinking about local commitments to action.

2. Statutory Authorities for EDA’s Recompete Pilot Program

The statutory authority for this program is section 29 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. § 3722b).

B. Federal Award Information

1. What Funding Is Available Under this Announcement?

Across the Consolidated Appropriations Act, 2023 and the Disaster Relief Supplemental Appropriations Act, 2023 (both enacted in Public Law 117-328), Congress appropriated EDA $200,000,000 to remain available until expended to implement the Recompete Pilot Program.

If an applicant is awarded funding, neither DOC nor EDA is under any obligation to provide any future funding in connection with that award or to make any future award(s). Amendments or renewals of an award to increase funding or to extend the period of performance are at the sole discretion of DOC and

EDA.

Publication of this announcement does not obligate DOC or EDA to award any specific grant or cooperative agreement or to obligate all or any part of available funds. The granting of any award is subject to the availability of funds at the time of award as well as to DOC priorities at the time of award.

Neither DOC nor EDA will be held responsible for application preparation costs.

Applicants to this Phase 1 NOFO must choose whether they are pursuing a Strategy Development Grant, approval of a Recompete Plan, or both. EDA anticipates approximately $6,000,000 to $12,000,000 in total being awarded in Phase 1 as Strategy Development Grants of between $250,000 and $500,000 each, and up to $750,000 only in rare circumstances.

EDA expects to approve at least 20 Recompete Plans. Recompete Plan approval itself does not come with any funding although EDA may award a Strategy Development Grant to an applicant that also has its Recompete Plan approved. Recompete Plan approval also serves as a prerequisite to participating in Phase 2 of the competition and applying to the Phase 2 Implementation NOFO. Thus, if an applicant would like to apply for Implementation funding under the upcoming Phase 2 NOFO, it should apply for Recompete Plan approval under this Phase 1 NOFO. During Phase 2, EDA anticipates funding 4-8 Implementation Grants with grants to Local Labor Markets averaging approximately $50,000,000 and grants to Local Communities averaging approximately $20,000,000, though amounts for each awardee will depend on multiple factors. See sections A.1.e. and A.1.f. of this NOFO for more information on how the award amounts may vary depending on the type of intervention (e.g., in general, creating jobs is more costly than connecting people to existing jobs).

Note that the range and averages above will necessarily be less than the maximum amount a region could potentially receive if calculated using the formula in 15 U.S.C. § 3722b(f) or (j)(9) because this is a pilot program and limited funding is available. Further, in no event in Phase 2 will EDA surpass the maximum amount for a region that results from application of the formula in 15 U.S.C. § 3722b(f) or (j)(9). This maximum amount applies over the life of the Recompete Pilot Program and is not necessarily the amount the entity will receive in the initial Phase 2 competition.

For Tribal areas or Pacific Ocean Territories, due to the data being unavailable at this time, determining anticipated grant amounts for Phase 2 is particularly difficult. For those two types of areas, the maximum grant amount in Phase 2 will be $20 million (or a lesser amount requested that is appropriate to the scale of the proposal) or the result of the formula found in 15 U.S.C. § 3722b(f) for Pacific Ocean Territories or the combination of 15 U.S.C. § 3722(f) and (j)(9) for Tribes, provided that the Territory or Tribe submits the required top-line data and a certification of its accuracy.

Depending on demand under this NOFO, EDA may exercise its discretion to adjust the total amount available between the Phase 1 and Phase 2 NOFOs to ensure funds are used to maximum effect.

2. What Type of Funding Instrument Will Be Used to Make Awards? How Long Will a Project’s Period of Performance Be?

Funding Instrument: Subject to the availability of funds, EDA may award grants or cooperative agreements to eligible applicants, but EDA expects most awards to be cooperative agreements. EDA will award a cooperative agreement on a case-by-case basis if substantial agency involvement is required.

For a cooperative agreement, the nature of EDA’s “substantial involvement” (to be included in the terms and conditions of the award) will generally be collaboration between EDA and the recipient on the scope of work, including administering subawards to other coalition members. However, other possible examples of EDA’s “substantial involvement” may include, but are not limited to: (i) authority to halt immediately an activity if detailed performance specifications are not met; (ii) stipulation that the recipient must meet or adhere to specific procedural requirements before subsequent stages of a project may continue; (iii) involvement in recipient’s selection of key personnel; and (iv) operational involvement and monitoring during the project to ensure compliance with statutory requirements.

Period of Performance: The period of performance for a given Phase 1 Strategy Development project may vary depending on the scope of work. EDA expects that most projects will range from 18 to 36 months.