ing 
measurable 
progress 
in 
language 
skills, 
prereading knowledge, and premathematics knowl-
edge; 
‘‘(12) maintain classroom environments con-
structive to early learning and future school success; 
‘‘(13) demonstrate strong parental involvement 
and activities to develop parent skills to support their 
children’s educational development and ability to 
participate effectively in decisions relating to the edu-
cation of their children; 
‘‘(14) are overseen by a board described in sec-
tion 642(b) that provides direction and actively over-
sees all program activities; 
‘‘(15) document strong fiscal controls, includ-
ing—
‘‘(A) the employment of well-qualified fiscal 
staff with a history of successful management of 
a public or private organization; 
‘‘(B) having no reportable material weak-
nesses with applicable laws and regulations on 
all annual financial audits performed since the 
most recent designation; 
‘‘(C) meeting or exceeding annual require-
ments for financial support under section 640(b); 
and
‘‘(D) maintaining total administrative costs 
at or below 15 percent of total program costs; 
‘‘(16) are licensed to operate in accordance with 
all applicable State child care regulations; 
‘‘(17) conduct outreach activities to ensure that 
services are provided to the most at-risk families in 
the community; 
‘‘(18) have developed strong community partner-
ships with public and private organizations, such as 
businesses, health, and social service providers; and 
‘‘(19) provide opportunities for ongoing profes-
sional development.’’. 
(c) DESIGNATION WHEN NO ENTITY HAS PRIORITY.—
Section 641(d) of the Head Start Act (43 U.S.C. 9836(d)) 
is amended to read as follows:
‘‘(d) DESIGNATION WHEN NO ENTITY HAS PRI-
ORITY.—
‘‘(1) IN GENERAL.—If no entity in a community 
is entitled to the priority specified in subsection (c), 
the Secretary shall, after conducting an open competi-
tion, designate for a 5-year period a Head Start 
agency from among qualified applicants in such com-
munity. 
‘‘(2) CONSIDERATIONS IN DESIGNATION.—In se-
lecting from among qualified applicants for designa-
tion as a Head Start agency, the Secretary shall con-
sider the effectiveness of each such applicant to pro-
vide Head Start services, based on—
‘‘(A) any past performance of such appli-
cant in providing services comparable to Head 
Start services, including how effectively such ap-
plicant provided such comparable services; 
‘‘(B) the plan of such applicant to provide 
comprehensive health (including mental and be-
havioral health), educational, nutritional, social, 
and other services needed to prepare children to 
succeed in school; 
‘‘(C) the capacity of such applicant to serve 
eligible children with curriculum and teaching 
practices based on scientifically based research 
that promote the school readiness of children 
participating in the program; 
‘‘(D) the plan of such applicant to meet 
standards set forth in section 641A(a)(1), with 
particular attention to the standards set forth in 
subparagraphs (A) and (B) of such section; 
‘‘(E) the proposed budget and plan of such 
applicant to maintain strong fiscal controls and 
cost effective fiscal management;