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[Federal Register Volume 78, Number 7 (Thursday, January 10, 2013)]
[Notices]
[Pages 2284-2287]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00337]

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DEPARTMENT OF LABOR

Methodology for Selecting Job Corps Centers for Closure; Comments 
Request

AGENCY: Office of Job Corps, Employment and Training Administration, 
Labor.
SUMMARY: The Department of Labor requests public comment on the 
methodology for selecting Job Corps centers for closure, outlined in 
this notice.

DATES: Comments are requested February 11, 2013.

ADDRESSES: Address comments to the National Director, Office of Job 
Corps, U.S. Department of Labor, 200 Constitution Avenue NW., Room 
N4459, Washington, DC 20210. Please note mail may be delayed because of 
security procedures.

FOR FURTHER INFORMATION CONTACT: National Director, Office of Job 
Corps, ETA, U.S. Department of Labor, 200 Constitution Avenue NW., Room 
N-4459, Washington, DC 20210; Telephone (202) 693-3000 (this is not a 
toll-free number). Individuals with hearing or speech impairments may 
access the telephone number above via TTY by calling the toll-free 
Federal Information Relay Service at 1-877-889-5627 (TTY/TDD).
    Background: Established in 1964, the Job Corps program is a 
national program administered by the Department of Labor (DOL or we), 
Employment and Training Administration (ETA). It is the nation's 
largest federally-funded, primarily residential training program for 
at-risk youth, ages 16-24. With 125 centers in 48 states, Puerto Rico, 
and the District of Columbia, Job Corps provides economically 
disadvantaged youth with the academic, career technical, and 
employability skills to enter the workforce, enroll in post-secondary 
education, or enlist in the military. Serving approximately 60,000 
participants each year, Job Corps emphasizes the attainment of academic 
credentials, including a high school diploma (HSD) or general 
educational development (GED), and career technical training 
credentials, including industry-recognized credentials, state 
licensures, and pre-apprenticeship credentials.
    Large and small businesses, nonprofit organizations, and Native 
American tribes manage and operate 97 of the Job Corps centers through 
contractual agreements with the Department of Labor following 
competitive procurement, while 28 centers are operated through an 
interagency agreement with the U.S. Department of Agriculture (USDA). 
Job Corps also contracts with firms and companies, usually small 
businesses, through competitive procurements, to recruit new students 
for the program and place graduates and former enrollees into 
meaningful jobs, education programs, the military, or apprenticeship 
training. Job Corps also receives annual Construction, Rehabilitation, 
and Acquisition (CRA) funding to build, maintain, expand, or upgrade 
new and existing facilities at all 125 centers.

Pursuing Program Reform

    In Fiscal Year (FY) 2011, we began an ambitious reform agenda aimed 
at improving the performance of Job Corps centers nationwide. This 
included setting higher standards for all centers, identifying 
historically underperforming centers, and implementing appropriate 
corrective action.
    As part of this reform process, Job Corps continues to undergo a 
rigorous and comprehensive review of its operations and management to 
identify changes that can be made to improve the program's 
effectiveness and efficiency. Job Corps has implemented a National 
Certification Initiative to strengthen and align existing career 
technical training programs to technical standards established by 
industries or trade organizations, which enables students to graduate 
with industry-recognized credentials. These credentials provide for 
long-term attachment to the workforce and economic mobility as Job 
Corps graduates advance through their careers. They also ensure that 
program graduates have gained the skills and knowledge necessary to 
compete in today's workforce. Job Corps has also expanded academic 
opportunities for students with the introduction of evening educational 
programs, as well as community college partnerships and expanded high 
school diploma options. Current budgetary constraints make it even more 
critical to ensure the program's resources are deployed in a way that 
maximizes results to students and taxpayers.
    Job Corps has intensified and reinforced federal oversight of 
operations and performance outcomes for all centers. Federal program 
managers supervise centers through monitoring visits, desk audits, and 
Contractor Performance Assessment Reports during each contractor's 
performance period. Job Corps regional offices also conduct the 
Regional Office Center Assessments. Through these oversight activities, 
Job Corps federal program managers develop Performance Improvement 
Plans (PIPs) for entire centers that need improvement, or Corrective 
Action Plans (CAPs) to address specific aspects of operations, such as 
career technical training. Both PIPs and CAPs are used for continued 
monitoring and implemented for USDA and contract centers respectively. 
These oversight actions have strengthened collaboration between Job 
Corps, contractors, and the USDA to rectify deficiencies, and improve 
policy compliance and performance outcomes.
    While the majority of centers meet program standards, some centers 
are chronically low-performing and have remained in the bottom cohort 
of center performance rankings for multiple years despite extensive DOL 
interventions including corrective measures. Given the resource 
intensiveness of the Job

[[Page 2285]]

Corps model, the Administration has determined that it can no longer 
continue to expend resources on the small number of chronically low-
performing centers that have repeatedly failed to provide participants 
with high-quality Job Corps programming.
    For the purpose of identifying chronically low-performing centers 
for potential closure, we define ``chronically low-performing centers'' 
as those that consistently lagged in overall performance over the past 
five consecutive program years, covering Program Year 2007 through 
Program Year 2011, without evidence of recent performance improvement.
    We are committed to selecting centers for closure in a manner that 
is transparent and objective, and are seeking comments on the proposed 
methodology outlined in this notice in order to inform all interested 
parties about the selection process. Job Corps' published performance 
metrics will be the primary consideration in the selection of centers 
for closure. Provided below is an overview of the program's Outcome 
Measurement System (OMS) and our planned methodology for using the OMS 
and, if applicable, other factors we propose to use to select centers 
for closure.
    Upon review of this notice, interested parties may provide DOL with 
feedback on the methodology, including the outlined criteria and 
assigned weights. We will consider this feedback as we finalize the 
methodology for selecting centers for closure.

Job Corps' Outcome Measurement System

    The Workforce Investment Act of 1998 (WIA), the authorizing 
legislation for the Job Corps program, contains core indicators of 
performance for recruitment, education and placement rates, wages, and 
long-term outcomes of graduates after initial placement.
    To meet the WIA performance requirements, Job Corps uses a 
comprehensive performance management system to assess program 
effectiveness across multiple components of services and programs 
offered to Job Corps students. This detailed system evaluates the 
performance of Job Corps center operators, outreach and admissions 
contractors, and career transition services providers, based on the 
outcomes of program participants. The performance management system 
serves three primary purposes:
     To meet accountability requirements by establishing 
performance measures (also known as metrics) and reporting student 
outcomes for the Job Corps system by the WIA legislation, Common 
Performance Measures for federal youth job training programs, and DOL 
priorities;
     To assess centers' and agencies' accomplishments in 
implementing program initiatives and serving students effectively; and
     To implement a management tool that provides useful and 
relevant feedback on performance, while encouraging continuous program 
improvement.
    Job Corps' performance management system for centers is comprised 
of an OMS Center Report Card, designed to reflect center-level results 
in participants' academic and career technical training achievement, as 
well as post-program placement and earnings. Job Corps centers are 
rated on their performance of student outcomes in three areas: on-
center measures, short-term career transition services, and long-term 
career transition services. On-center measures include student 
attainments for General Education Development (GEDs) or High School 
Diplomas (HSDs), career technical training, literacy and numeracy 
gains, and industry-recognized credentials. Short-term career 
transition services include placement in jobs related to career 
technical training, graduate placement rate, graduate hourly wage, and 
former enrollee placement rate. Lastly, long-term career transition 
services include graduate weekly earnings at 6 months, and placement 
retention at 6 months and 12 months after initial placement.
    Each OMS Report Card consists of four basic components: results-
oriented measures, goals, weights, and ratings, including an overall 
rating, described as follows:
     Performance measures are the categories of outcomes under 
evaluation, such as an HSD or GED attainment. Measures reflect the 
program priorities and objectives important to Job Corps' mission.
     Performance goals are quantitative benchmarks for each 
measure that are set to establish a desired level of performance.
     Relative weights are assigned to performance measures to 
indicate areas of emphasis among responsibilities for serving students. 
Each weight is expressed as a percentage with the sum of all weights in 
a Report Card totaling 100%.
     The rating is the performance (actual percent of goal 
achieved) on each measure, expressed as a percentage. The overall 
rating is the aggregate of all individual performance measure ratings 
expressed as a percentage.
    The overall OMS ratings serve as the basis for ranking Job Corps 
center performance, and are used in performance-based service 
contracting to incentivize performance excellence. More information 
about Job Corps' OMS and center performance results can be found at the 
Job Corps public Web site: http://www.jobcorps.gov/AboutJobCorps/performance_planning.aspx.
    In short, Job Corps' performance management system measures 
effectiveness in executing the program's mission and supporting the 
Secretary of Labor's vision of ``Good Jobs for Everyone.'' By doing so, 
this system meets the legislative intent of the WIA and other reporting 
requirements.

Factors for Selecting Job Corps Centers for Closure

    Provided below is a description of the proposed factors to select a 
small number of Job Corps centers for closure. On August 14, 2012, the 
Office of Job Corps hosted a national Job Corps listening session via 
webinar with the Job Corps community to solicit input on these factors. 
More than 100 Job Corps stakeholders participated in the session and 
provided criteria-related suggestions in the areas of performance, 
geographic location, local economic impact, contract budgets, 
facilities, and the time period for evaluating chronic low performance.
    In addition, we are working collaboratively with the USDA to 
address the unique qualities of the USDA's operation of 28 Civilian 
Conservation Centers.
    Based on the feedback it has received and its own analysis, we 
identified the following primary criteria against which all centers 
will be measured:
     Five-year performance level, including considerations for 
patterns of demonstrable and recent performance improvement;
     On-Board Strength (OBS);
     Facility condition and physical plant; and
     Continued availability of Job Corps services in each 
state, the District of Columbia, and Puerto Rico.
    While the factors above are the primary ones proposed for 
determining center closures, additional consideration may be given to 
Job Corps' continuing commitment to diversity.

1. Five-Year Performance Levels

    Given that the Job Corps' performance metrics provide a 
comprehensive assessment of center performance, allow

[[Page 2286]]

for comparison of performance among centers, and supply enough data for 
decision makers to determine trends over time, the OMS will be the 
guiding factor in selecting centers for closure. We believe this 
approach is the most equitable and transparent for both stakeholders 
and the public, as these published performance metrics have driven 
center performance and programmatic decisions for over a decade.
    We plan to evaluate each center's overall OMS ratings for the last 
five full program years, Program Years 2007-2011, to derive a weighted 
five-year average rating. The five-year average for ratings will be 
critical to guiding the evaluation. We selected the five-year 
performance period for the following reasons:
     Uses the most recent performance data available;
     Allows enough time to analyze impact of any Performance 
Improvement Plans (PIPs);
     Provides a stable basis for comparison, since the 
measurement system had no significant changes over the past five years; 
and
     Relies on published outcomes that have been transparent to 
the system over time.
    This factor will be assigned a weight of 70%. The original OMS 
ratings for each of the five program years will be normalized at one 
hundred percent (100%) so as to be consistent with the OBS and Facility 
Condition Index (FCI) data. Normalized means the data has been placed 
on a 100 point scale.
    We also plan to weight recent performance more heavily than 
previous years, to acknowledge cases in which there might be recent 
improvement trends. To reflect this, weights will be applied to each of 
the five program years' performance data, with recent years receiving 
more weight to incorporate performance improvement. The year-by-year 
weighted structure is as follows:

PY 2011--30%
PY 2010--25%
PY 2009--20%
PY 2008--15%
PY 2007--10%

Total: 100%

    The calculation formula for five-year performance is as follows:

Center's five-year weighted average rating x 70%= Overall Performance 
Rating

2. On-Board Strength

    On Board Strength is an efficiency rating that demonstrates the 
extent to which a center operates at full capacity. Job Corps already 
uses this measure to assess center performance. The measure is reported 
as a percentage, calculated by the actual slot capacity divided by the 
planned slot capacity (daily number of students that a center is 
authorized to serve). The national goal for OBS is 100% in order to 
operate the program at full capacity, maximize program resources, and 
fulfill the mission of serving the underserved student population. 
Centers operating below 100% OBS create cost inefficiencies, such as 
underutilization of center staff, equipment, and facilities.
    We plan to evaluate each center's end of Program Year OBS rating 
for the last five full program years, specifically Program Years 2007-
2011, to derive a five-year average rating.
    This factor will be assigned a weight of 20%. The original OBS 
ratings for each of the five program years will be normalized at one 
hundred percent (100%) so as to be consistent with the OMS and FCI 
data.
    As with the performance criterion, weights will be applied to each 
of the five program years' OBS data, with recent years receiving more 
weight to incorporate performance improvement. The year-by-year 
weighted structure is as follows:

PY 2011--30%
PY 2010--25%
PY 2009--20%
PY 2008--15%
PY 2007--10%

Total: 100%

    The calculation formula for five-year OBS is as follows:

Center's five-year weighted average cumulative OBS x 20%= Overall OBS 
Rating

3. Facility Condition and Physical Plant

    In a program that operates 24 hours per day, seven days per week 
and is primarily residential, facility conditions are important. The 
quality of Job Corps' residential and learning facilities has a direct 
impact on students' experiences and, ultimately, their educational 
achievement. Each Job Corps center is a fully operational complex with 
academic and career technical training facilities, dining and 
recreation buildings, administrative offices, and residence halls (with 
the exception of solely non-residential facilities), including the 
surrounding owned or leased property on which the center is located.
    Job Corps receives an annual appropriation for Construction, 
Rehabilitation, and Acquisition (CRA) that is used to improve facility 
conditions at Job Corps centers. To properly manage the program's 
facility and condition needs, Job Corps uses an FCI and gives each 
center an annual rating. This rating, which is expressed as a 
percentage, accounts for the value of a center's construction, 
rehabilitation, and repair backlog, as compared to the replacement 
value of the center's facilities. Facility condition affects the 
outcomes of the Job Corps program because ``Good Jobs for Everyone'' 
begins with facilities that contribute to a safe learning environment.
    Given funding constraints, we must make strategic decisions about 
the continued allocation of its CRA resources. For this factor, we will 
evaluate each center's Program Year 2011 Facility Condition Index, 
which takes into account all construction projects completed over the 
same five-year period as the other two factors, specifically Program 
Years 2007-2011.
    This factor will be assigned a weight of 10%.
    As with the performance and OBS criteria, weights will be applied 
to each of the five program years' FCI data, with recent years 
receiving more weight to incorporate improvement. The year-by-year 
weighted structure is as follows:

PY 2011--30%
PY 2010--25%
PY 2009--20%
PY 2008--15%
PY 2007--10%

Total: 100%

    The calculation formula for FCI is as follows:

    Center's five-year weighted average FCI rating x 10% = Overall FCI 
Rating

Ranking Centers for Closure

    The analysis of the factors above will yield an overall rating for 
each center. This will allow us to create a list that ranks all 
centers, with the lowest performing centers receiving the lowest 
ratings. The calculation formula is as follows:

----------------------------------------------------------------------------------------------------------------
 
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Overall Performance Rating          +   Overall OBS Rating     +   Overall FCI Rating     =   Overall Rating for
 (70%).                                  (20%).                     (10%).                     Primary Selection
                                                                                               Factors.
----------------------------------------------------------------------------------------------------------------

[[Page 2287]]

4. Job Corps Services Available in Each State, Puerto Rico, and the 
District of Columbia

    In addition to the above three primary criteria with quantifiable 
data, DOL will also ensure that Job Corps services remain available in 
each state, Puerto Rico, and the District of Columbia. We believe it is 
in the best interests of Job Corps' target population to ensure that 
potential students have access to Job Corps in the geographic areas in 
which they reside. We intend to maintain at least one Job Corps center 
in each state, the Commonwealth of Puerto Rico, and the District of 
Columbia to ensure that training is aligned with local and regional 
labor market opportunities. The centers of Ottumwa, Milwaukee, 
Pinellas, Denison, Gulfport and New Orleans are not included for 
consideration. In each case, there is insufficient data to evaluate 
each center's performance over the full five-year period.

Additional Considerations

    Subordinate to the primary selection criteria listed above, 
additional consideration may be given to Job Corps' commitment to 
diversity. Job Corps currently serves a diverse student population and 
remains committed to serving disadvantaged youth from all backgrounds. 
We may consider whether a center's closure would have a 
disproportionate impact on a certain subpopulation of students in 
making a final closure decision.

Timeline for Selecting Job Corps Centers for Closure

    We will begin to implement the selection and closure process by 
Program Year 2013, following the legislatively mandated activities 
pertaining to center closure required by the WIA and as stipulated in 
the DOL/USDA Interagency Agreement. We estimate that it will take a 
minimum of six months to execute closure of a center. If a contract 
center is selected for closure, we anticipate that the mechanism for 
closing the contract center will be through a decision not to exercise 
its option year or to renew a center operator's contract. If a USDA 
center is selected for closure, we will continue working 
collaboratively with the USDA to ensure adherence to the existing 
Interagency Agreement.

The Process for Closing Job Corps Centers, as Outlined in the Workforce 
Investment Act

    In addition to the steps outlined above, we will ensure that it 
follows the legislatively-mandated process for closing a Job Corps 
center, in Section 159 of the WIA, which includes the following:
     The proposed decision to close the center is announced in 
advance to the general public through publication in the Federal 
Register or other appropriate means;
     A reasonable comment period, not to exceed 30 days, is 
established for interested individuals to submit written comments to 
the Secretary; and
     The Member of Congress who represents the district in 
which such center is located is notified within a reasonable period of 
time in advance of any final decision to close the center.

    Dated: Signed in Washington, DC, on this 3rd day of January, 
2013.
Jane Oates,
Assistant Secretary for the Employment and Training Administration.
[FR Doc. 2013-00337 Filed 1-9-13; 8:45 am]
BILLING CODE 4510-FR-P
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