‘‘(b) COORDINATION.—In local workforce investment 
areas where more than 1 grantee under this title provides 
services, the grantees shall— 
‘‘(1) coordinate their activities related to the 
One-Stop delivery system; and 
‘‘(2) shall be signatories of the memorandum of 
understanding established under section 121(c) of the 
Workforce Investment Act of 1998 (29 U.S.C. 
2841(c)). 
‘‘SEC. 513. PERFORMANCE. 
‘‘(a) MEASURES.— 
‘‘(1) ESTABLISHMENT OF MEASURES.—The Sec-
retary shall establish, in consultation with grantees, 
subgrantees, and host agencies under this title, States, 
older individuals, area agencies on aging, and other 
organizations serving older individuals, performance 
measures for each grantee for projects and services 
carried out under this title. 
‘‘(2) CONTENT.— 
‘‘(A) COMPOSITION
OF
MEASURES.—The 
performance measures established by the Sec-
retary in accordance with paragraph (1) shall 
consist of— 
‘‘(i) core indicators of performance 
specified in subsection (b)(1) and the ex-
pected levels of performance applicable to 
each core indicator of performance, and 
‘‘(ii) additional indicators of perform-
ance specified in subsection (b)(2) 
‘‘(B) 
CONTINUOUS
IMPROVEMENT.—The 
measures described in subparagraph (A)(i) shall 
be designed to promote continuous improvement 
in performance. 
‘‘(C) EXPECTED
LEVELS
OF
PERFORM-
ANCE.—The Secretary and each grantee shall 
reach agreement on the expected levels of per-
formance for each program year for each of the 
core indicators of performance specified in sub-
section (b)(1). The agreement shall take into ac-
count the factors described in subparagraphs (B) 
and (D) and other appropriate factors as deter-
mined by the Secretary, and shall be consistent 
with the requirements of subparagraph (E). 
Funds under the grant may not be awarded 
until such agreement is reached. 
‘‘(D) ADJUSTMENT.—The expected levels of 
performance described in subparagraph (C) ap-
plicable to a grantee shall be adjusted after the 
agreement under subparagraph (C) has been 
reached only with respect to the following factors:
‘‘(i) High rates of unemployment or of 
poverty or welfare participation, in the 
areas served by a grantee, relative to other 
areas of the State or Nation. 
‘‘(ii) Significant downturns in the 
areas served by the grantee or in the na-
tional economy. 
‘‘(iii) Significant numbers or propor-
tions of participants with 1 or more bar-
riers to employment served by a grantee rel-
ative to grantees serving other areas of the 
State or Nation. 
‘‘(iv) Changes in Federal, State, or 
local minimum wage requirements. 
‘‘(E) PLACEMENT.— 
‘‘(i) LEVEL
OF
PERFORMANCE.—For 
all grantees, the Secretary shall establish a 
level of performance of not less than the per-
centage specified in clause (ii) (adjusted in 
accordance with subparagraph (D)) for the 
entry into unsubsidized employment core 
indicator of performance described in sub-
section (b)(1)(A). If a grantee achieved a 
level of performance less than the percentage 
specified in such clause for the preceding
fiscal year for which results are available 
before the enactment of the Senior Inde-
pendence Act of 2006, the Secretary shall 
provide technical assistance to assist such 
grantee to achieve the applicable percentage 
specified in such clause. 
‘‘(ii) REQUIRED PLACEMENT PERCENT-
AGES.—The minimum percentage for the 
entry into unsubsidized employment de-
scribed in subsection (b)(1)(A) is— 
‘‘(I) 22 percent in fiscal year 
2007; 
‘‘(II) 24 percent in fiscal year 
2008; 
‘‘(III) 26 percent in fiscal year 
2009; 
‘‘(IV) 28 percent in fiscal year 
2010; and 
‘‘(V) 30 percent in fiscal year 
2011. 
‘‘(3) PERFORMANCE
EVALUATION
OF
GRANT-
EES.—The Secretary shall annually establish na-
tional performance measures for each grantee under 
this title, which shall be applicable to the grantee 
without regard to whether such grantee operates such
100 
program directly or through contracts, grants, or 
agreements with other entities. The measures shall in-
clude the core indicators of performance and expected 
level of performance for each such indicator, and the 
additional indicators of performance. In addition, the 
Secretary shall annually publish the actual perform-
ance of each grantee with respect to— 
‘‘(A) the levels achieved for each of the core 
indicators of performance, compared to expected 
levels of performance under paragraph (2)(C) 
(including any adjustments to such levels made 
in accordance with to paragraph (2)(D)); and 
‘‘(B) the levels achieved for each of the addi-
tional indicators of performance. 
‘‘(4) LIMITATION.—An agreement to be evaluated 
on the performance measures shall be a requirement 
for application for, and a condition of, all grants au-
thorized by this title. 
‘‘(b) INDICATORS OF PERFORMANCE.— 
‘‘(1) CORE INDICATORS.—The core indicators of 
performance described in subsection (a)(2)(A)(i) shall 
consist of— 
‘‘(A) entry into unsubsidized employment; 
‘‘(B) retention in unsubsidized employment 
for 6 months;