Volunteer Innovation Act
Bill: S.2240 | Sponsor: Sen. Young, Todd (R-IN)
Policy area: Labor and Employment

Summary:
Volunteer Innovation Act
This bill creates a new pay-for-results pilot program within AmeriCorps that allows for the private funding of national service projects in exchange for payment of federal funds upon successful project completion.
Eligible entities selected to participate in the pilot program must use AmeriCorps participants or volunteers for a national service project and must finance the entire up-front cost of the project. A participating entity must agree to achieve some desired outcome through the project. A participating entity that achieves the desired outcome will receive a grant from AmeriCorps in a negotiated amount that is less than or equal to the value to the federal government of the outcome. An entity that does not achieve the desired outcome on a project is not eligible to receive federal funds under the bill.

To establish a national and community service pay for results program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Volunteer Innovation Act''.

SEC. 2. NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM.

    Subtitle H of title I of the National and Community Service Act of 
1990 (42 U.S.C. 12653 et seq.) is amended--
            (1) by redesignating parts IV and V as parts V and VI, 
        respectively; and
            (2) by inserting after part III the following:

          ``PART IV--NATIONAL SERVICE PAY FOR RESULTS PROGRAM

``SEC. 198L. DEFINITIONS.

    ``In this part:
            ``(1) B corps entity.--The term `B Corps entity' means a 
        private for-profit entity that--
                    ``(A) has social sustainability or environmental 
                performance standards;
                    ``(B) has accountability standards; and
                    ``(C) is transparent in reporting the entity's 
                social or environmental performance.
            ``(2) B corps partnership.--The term `B Corps partnership' 
        means a partnership between a B Corps entity and one or more 
        community-based entities (as such term is defined in section 
        101).
            ``(3) Eligible entity.--The term `eligible entity' means--
                    ``(A) a B Corps partnership; or
                    ``(B) a community-based entity (as defined in 
                section 101).
            ``(4) Intervention.--The term `intervention' means a 
        specific service delivered to achieve an impact through a 
        national service pay for results project.
            ``(5) National service pay for results model.--The term 
        `national service pay for results model' means a method of 
        financing national service programs in which--
                    ``(A) Federal funds are awarded to a eligible 
                entity, only if the eligible entity achieves certain 
                outcomes agreed on by the entity and the Corporation;
                    ``(B) the eligible entity coordinates with the 
                Chief Executive Officer and investors to identify--
                            ``(i) an intervention expected to produce 
                        the outcome; and
                            ``(ii) investors to fund the delivery of 
                        the intervention; and
                    ``(C) the eligible entity implements the 
                intervention through the use of participants.
            ``(6) National service pay for results project.--The term 
        `national service pay for results project' means a project that 
        finances national service programs using a national service pay 
        for results model.
            ``(7) Participant.--The term `participant' has the meaning 
        given the term in section 101.

``SEC. 198M. NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM.

    ``(a) Planning Period.--Not later than 15 days after the date of 
enactment of this section, the Corporation shall begin a planning and 
consultation period in order to assess appropriate outreach needed to 
potential applicants. The Corporation shall conduct an internal review 
and assessment to plan appropriate allocation of staff and other 
resources needed to ensure successful implementation of the program 
under this section.
    ``(b) Notice.--
            ``(1) In general.--Not later than 12 months after the date 
        of enactment of this part, the Chief Executive Officer shall 
        publish in the Federal Register a request for proposals from 
        eligible entities for national service pay for results projects 
        in accordance with this section.
            ``(2) Manner of notice.--The Corporation shall provide 
        advance notice to potential eligible entity applicants of any 
        national service priorities to be in effect for a fiscal year, 
        in the same manner as such notice is provided under section 
        122(f)(2).
    ``(c) Required Outcomes for National Service Pay for Results 
Project.--To qualify as a national service pay for results project 
under this part, a project must effectively utilize participants to 
produce 1 or more measurable, clearly defined outcomes that result in 
Federal savings and social benefit through any of the activities 
described in subparagraphs (B) of paragraphs (1) through (5) of section 
122(a).
    ``(d) Application Required.--The notice described in subsection (b) 
shall require a eligible entity to submit, not later than 6 months 
after the date of publication in the Federal Register under subsection 
(b), an application for the national service pay for results project 
that addresses each of the following:
            ``(1) The outcome goals of the project.
            ``(2) The anticipated number of participants needed to 
        implement the project.
            ``(3) The criteria used to determine the eligibility of a 
        participant for the project, including how the potential 
        participants will be identified, how such participants will be 
        recruited for the project, and how such participants will be 
        trained for their roles in the project.
            ``(4) A description of each intervention in the project and 
        anticipated outcomes of the intervention.
            ``(5) A plan for implementing each intervention through the 
        use of participants.
            ``(6) Rigorous evidence demonstrating that the intervention 
        can be expected to produce the desired outcomes.
            ``(7) The target population that will be served by the 
        project.
            ``(8) The expected social benefits to individuals who 
        receive the intervention, the participants working on the 
        project, and others who may be impacted.
            ``(9) The projected cost to the eligible entity to carry 
        out the project, and any costs to the Federal, State, or local 
        government associated with the project.
            ``(10) Projected Federal, State, and local government 
        savings and other savings, including an estimate of the savings 
        to the Federal Government, on a program-by-program basis and in 
        the aggregate, if the project is implemented and the outcomes 
        are achieved as a result of the intervention.
            ``(11) If savings resulting from the successful completion 
        of the project are estimated to accrue to a State or local 
        government, the likelihood of the State or local government to 
        realize those savings.
            ``(12) A description of the expertise of the eligible 
        entity, including a summary of the experience of the eligible 
        entity in delivering the proposed intervention or a similar 
        intervention, or demonstrating that the eligible entity has the 
        expertise necessary to deliver the proposed intervention.
            ``(13) An explanation of the experience of the eligible 
        entity in raising private and philanthropic capital to fund 
        social service investments.
            ``(14) A description of the expertise of investors that the 
        eligible entity intends to partner with, to the extent that the 
        eligible entity may have identified those investors by the time 
        the application is submitted.
            ``(15) A summary of the unmet need in the area where the 
        intervention will be delivered or among the target population 
        who will receive the intervention.
            ``(16) The proposed payment terms, the methodology used to 
        calculate outcome payments, the payment schedule, and 
        performance thresholds.
            ``(17) The project budget.
            ``(18) The project timeline, provided that, notwithstanding 
        section 187, all projects shall be limited to a duration of 5 
        years.
            ``(19) The criteria used to determine the eligibility of an 
        individual to be served by the project, including how selected 
        populations will be identified, how they will be referred to 
        the project, and how they will be enrolled in the project.
            ``(20) The evaluation design.
            ``(21) The metrics that will be used in the evaluation to 
        determine whether the outcomes have been achieved as a result 
        of the intervention and how the metrics will be measured.
            ``(22) An explanation of how the metrics used in the 
        evaluation to determine whether the outcomes achieved as a 
        result of the intervention are independent, objective 
        indicators of impact and are not subject to manipulation by the 
        eligible entity or investor.
            ``(23) A summary explaining the independence of the 
        evaluator from the other entities involved in the project and 
        the evaluator's experience in conducting rigorous evaluations 
        of program effectiveness including, where available, well-
        implemented randomized controlled trials on the intervention or 
        similar interventions.
            ``(24) Any potential payment disputes related to the 
        outcomes of the evaluation.
            ``(25) The capacity of the eligible entity to deliver the 
        intervention to the number of participants the eligible entity 
        proposes to serve in the project.
            ``(26) The assurances described in sections 131(e) and 
        132(a), except that such assurances shall apply to the project 
        carried out using assistance provided under this part.
    ``(e) Prohibited Activities and Ineligible Organizations.--
            ``(1) Community-based entity.--Section 132A shall apply to 
        community-based entities carrying out a national service pay 
        for results project under this part and to participants in 
        those projects.
            ``(2) B corps entity.--For purposes of section 132(a)(1) 
        and section 132A(a)(8)(A), a B Corps entity shall not be 
        considered a business organized for profit.

``SEC. 198N. AWARDING NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM 
              FUNDS.

    ``(a) Timeline in Awarding Agreement.--
            ``(1) In general.--Not later than 3 months after the 
        deadline for applications in accordance with section 198M has 
        expired, the Chief Executive Officer shall select not less than 
        4 and not more than 6 community-based entities or eligible 
        entities to participate in national service pay for results 
        projects.
            ``(2) Fewer applicants.--Notwithstanding paragraph (1), if 
        fewer than 4 community-based entities or eligible entities meet 
        the requirements of this part, the Chief Executive Officer may 
        select fewer than 4 entities or partnerships.
    ``(b) Considerations in Awarding Agreement.--In determining whether 
to enter into an agreement for a national service pay for results 
project (the application for which was submitted under section 198M) 
the Chief Executive Officer shall--
            ``(1) seek to ensure geographic diversity in selected 
        entities, including by selecting not less than 1 eligible 
        entity that plans to serve a rural community and not less than 
        1 eligible entity that plans to serve an urban community; and
            ``(2) consider--
                    ``(A) the anticipated utilization of participants, 
                and whether the eligible entity plans to utilize 
                participants who come from a high-risk background;
                    ``(B) the value to the Federal Government of the 
                outcomes expected to be achieved if the outcomes 
                specified in the agreement are achieved as a result of 
                the intervention;
                    ``(C) the likelihood, based on evidence provided in 
                the application and other evidence, that the eligible 
                entity will achieve those outcomes;
                    ``(D) the savings to the Federal Government if the 
                outcomes specified in the agreement are achieved as a 
                result of the intervention;
                    ``(E) the savings to State and local governments if 
                the outcomes specified in the agreement are achieved as 
                a result of the intervention; and
                    ``(F) the expected quality of the evaluation that 
                would be conducted with respect to the agreement.
    ``(c) Agreement Authority.--
            ``(1) Agreement requirements.--The Chief Executive Officer 
        may enter into an agreement for a national service pay for 
        results project with an eligible entity selected under this 
        part if the Chief Executive Officer determines that each of the 
        following requirements are met:
                    ``(A) The eligible entity agrees to achieve 1 or 
                more outcomes as a result of the intervention, as 
                specified in the agreement and validated by independent 
                evaluation, in order to receive payment.
                    ``(B) The Federal payment to the eligible entity 
                for each specified outcome achieved as a result of the 
                intervention is less than or equal to the value of the 
                outcome to the Federal Government over a period not to 
                exceed 10 years, as determined by the Chief Executive 
                Officer, in consultation with the entity.
                    ``(C) The project will begin not more than 12 
                months after the eligible entity has been selected.
                    ``(D) Notwithstanding section 187, the duration of 
                the project does not exceed 5 years.
                    ``(E) The eligible entity has demonstrated, through 
                the application submitted under section 198M, that, 
                based on prior rigorous experimental evaluations or 
                rigorous quasi-experimental studies, the intervention 
                can be expected to achieve each outcome specified in 
                the agreement.
                    ``(F) The eligible entity has experience raising 
                private or philanthropic capital to fund social service 
                investments. To the extent the eligible entity does not 
                have such experience or is unable to secure private or 
                philanthropic capital prior to its application 
                submission, the Corporation may assist selected 
                programs in attaining such funding.
                    ``(G) The eligible entity applying for the program 
                has shown that it has experience delivering the 
                intervention, a similar intervention, or has otherwise 
                demonstrated the expertise necessary to deliver the 
                intervention.
                    ``(H) The project will utilize participants to 
                implement the intervention.
            ``(2) Ability to finance project.--
                    ``(A) Plan.--On the date that is 6 months after the 
                date of an agreement under this subsection--
                            ``(i) the eligible entity shall provide the 
                        Chief Executive Officer with a plan 
                        demonstrating that the entity has the 
                        capability to fully fund the up-front costs of 
                        the project and will have such funds available 
                        and reserved for the project not later than 1 
                        year after the date of such agreement; and
                            ``(ii) if the Chief Executive Officer finds 
                        that the eligible entity is not likely to have 
                        the capability to fully fund the up front costs 
                        of the project, the Chief Executive Officer may 
                        terminate such agreement.
                    ``(B) Funds reserved.--On the date that is 6 months 
                after the date of an agreement under this subsection, 
                if the eligible entity does not have the funds 
                available and reserved to fully fund the up-front costs 
                of the project, the Chief Executive Officer may 
                terminate the agreement under this subsection.
            ``(3) Impact of selection.--Subject to paragraph (2), for 
        purposes of applying provisions of subtitles C, D, and F under 
        this part, if the Corporation enters into an agreement with an 
        entity for a project under this section--
                    ``(A) the project shall be considered to be a 
                national service program under section 122(a); and
                    ``(B) the entity shall be considered to be a grant 
                recipient under subtitle C.
            ``(4) Payment.--
                    ``(A) In general.--The eligible entity selected 
                under this part shall pay the entire up-front costs of 
                the project under this part.
                    ``(B) Outcome payment.--The Corporation shall pay 
                the selected eligible entity, after completion of the 
                project, only if the independent evaluator described in 
                section 198N-1(b) determines that the national service 
                pay for results project has met the requirements 
                specified in the agreement and achieved an outcome as a 
                result of the intervention, as specified in the 
                agreement and validated by independent evaluation.
                    ``(C) Amount of payment.--The Corporation shall 
                have discretion in determining the amount of funds 
                awarded for each pay for results project under this 
                part, except that such amount shall be specified as 
                part of the agreement with each entity under this 
                section and shall be consistent with the requirements 
                of part III of subtitle C, and subtitle D.
                    ``(D) Applicability of limitation on program grant 
                costs.--Section 189 shall not apply to a pay for 
                results project under this part.
    ``(d) National Service Members.--
            ``(1) In general.--For purposes of applying subtitles C, D, 
        and F under this part, the Corporation shall consider a 
        participant in a pay for results project under this part to be 
        a participant in a national service program in the same manner 
        as, and under the same conditions as, a participant in a 
        program under subtitle C. Unless otherwise specified in this 
        part, the terms and conditions applicable to a participant 
        under subtitle C, including the terms and conditions described 
        under part III of that subtitle, shall apply in the same manner 
        to a participant who participates in a pay for results program 
        under this part.
            ``(2) Eligible entity responsibility.--Each selected 
        eligible entity will be responsible for recruiting, selecting, 
        and training the participants participating in projects carried 
        out by that eligible entity under this part, consistent with 
        part III of that subtitle. The entity shall carry out the 
        responsibilities and authorities described in part III of that 
        subtitle for a grant recipient.
            ``(3) Eligibility for educational award.--Participants in a 
        pay for results project under this part shall be eligible for a 
        national service educational award described in section 146 in 
        the same manner as, and under the same conditions as, 
        individuals who participate in other approved national service 
        positions.

``SEC. 198N-1. EVALUATIONS.

    ``(a) Authority To Enter Into Agreements.--For each eligible entity 
awarded a national service pay for results project approved by the 
Chief Executive Officer under this part, the Corporation shall enter 
into an agreement with such eligible entity to pay for all or part of 
the independent evaluation to determine whether the entity's project 
has achieved a specific outcome as a result of the intervention in 
order for the selected entity to receive outcome payments under this 
part.
    ``(b) Evaluator Qualifications.--The Corporation may not enter into 
an agreement with an entity under this section unless the Corporation 
determines that--
            ``(1) the evaluator is independent of the other parties to 
        the agreement; and
            ``(2) the evaluator has demonstrated substantial experience 
        in conducting rigorous evaluations of program effectiveness 
        including, where available and appropriate, well-implemented 
        randomized controlled trials on the intervention or similar 
        interventions.
    ``(c) Methodologies To Be Used.--The evaluation used to determine 
whether a eligible entity will receive outcome payments under this part 
shall use experimental designs using random assignment, or other 
reliable, evidence-based research methodologies that allow for the 
strongest possible causal inferences when random assignment is not 
feasible.
    ``(d) Progress Report.--
            ``(1) Submission of report.--The eligible entity shall 
        ensure that the independent evaluator will--
                    ``(A) not later than 2 years after a project has 
                been approved by the Chief Executive Officer and 
                annually thereafter until the project is concluded, 
                submit to the Chief Executive Officer a written report 
                summarizing the progress that has been made in 
                achieving each outcome specified in the agreement; and
                    ``(B) before the scheduled time of the first 
                outcome payment and before the scheduled time of each 
                subsequent payment, submit to the Chief Executive 
                Officer a written report that includes the results of 
                the evaluation conducted to determine whether an 
                outcome payment should be made along with information 
                on the unique factors that contributed to achieving or 
                failing to achieve the outcome, the challenges faced in 
                attempting to achieve the outcome, and information on 
                the improved future delivery of this or similar 
                interventions.
            ``(2) Submission to the ceo and congress.--Not later than 
        30 days after receipt of the written report pursuant to 
        paragraph (1)(B), the Chief Executive Officer shall submit the 
        report to each of the authorizing committees.
    ``(e) Final Report.--
            ``(1) Submission of report.--The eligible entity shall 
        ensure that the independent evaluator will, not later than 6 
        months after the national service pay for results project is 
        completed--
                    ``(A) evaluate the effects of the activities 
                undertaken pursuant to the agreement with regard to 
                each outcome specified in the agreement; and
                    ``(B) submit to the Chief Executive Officer a 
                written report that includes the results of the 
                evaluation and the conclusion of the evaluator as to 
                whether the eligible entity has fulfilled each 
                obligation of the agreement, along with information on 
                the unique factors that contributed to the success or 
                failure of the project, the challenges faced in 
                attempting to achieve the outcome, and information on 
                the improved future delivery of this or similar 
                interventions.
            ``(2) Submission to the ceo and congress.--Not later than 
        30 days after receipt of the written report pursuant to 
        paragraph (1)(B), the Chief Executive Officer shall submit the 
        report to each authorizing committees.
    ``(f) Limitation on Cost of Evaluations.--Of the amounts 
appropriated to carry out this part, the Chief Executive Officer may 
not obligate more than 15 percent to evaluate the implementation and 
outcomes of the projects under this part.
    ``(g) Applicability of Other Evaluation Provisions.--Section 179 
shall not apply with respect to a national service pay for results 
project that is evaluated in accordance with this section.

``SEC. 198N-2. FUNDING.

    ``(a) Prohibition on Federal Funding for Credit Enhancements.--No 
amount appropriated to carry out this part may be used to provide any 
insurance, guarantee, or other credit enhancement to an eligible entity 
under which a Federal payment would be made to an eligible entity, as 
the result of such entity failing to achieve an outcome specified in an 
agreement.
    ``(b) Matching Funds Requirements Not Applicable.--An eligible 
entity awarded an agreement under this part shall not be subject to the 
matching funds requirement in section 121(e) or any other matching 
funds requirements that are applicable to activities funded under this 
Act.''.

SEC. 3. CONFORMING AMENDMENTS.

    (a) Types of National Service Positions.--Section 123 of the 
National and Community Service Act of 1990 (42 U.S.C. 12573) is 
amended--
            (1) by redesignating paragraph (8) as paragraph (9); and
            (2) by inserting after paragraph (7) the following:
            ``(8) A position for a participant in a national service 
        pay for results project that is selected under part IV of 
        subtitle H.''.
    (b) Provision of Approved National Service Positions.--Section 129 
of such Act (42 U.S.C. 12581) is amended--
            (1) in the first sentence of subsection (c)--
                    (A) by striking ``or as'' and inserting ``, as''; 
                and
                    (B) by striking ``shall receive'' and inserting 
                ``or as a national service member in a national service 
                pay for results project that is selected under part IV 
                of subtitle H shall receive''; and
            (2) in subsections (j)(1) and (k)(3), by striking 
        ``501(a)(2)'' and inserting ``501(a)(2)(A)''.
    (c) Approval Process for Approved Positions.--Section 149 of such 
Act (42 U.S.C. 12606) is amended--
            (1) in subsection (a)(1)(A)(ii), by inserting after 
        ``section 123'' the following: ``or enters into an agreement 
        with an entity to carry out a national service pay for results 
        project under part IV of subtitle H''; and
            (2) in subsection (b)(1)(B)(ii), by striking ``E of this 
        title,'' and inserting ``E of this title, part IV of subtitle H 
        of this title,''.
    (d) Limitation on Program Grant Costs.--Section 189(c) is amended 
by striking the period at the end and inserting ``, and shall not apply 
to a pay for results project under part IV of subtitle H of title I.''.
    (e) Authorization of Appropriations.--Section 501(a)(2) of such Act 
(42 U.S.C. 12681(a)(2)) is amended to read as follows:
            ``(2) Subtitles c and d.--
                    ``(A) In general.--There are authorized to be 
                appropriated, for each fiscal year, such sums as may be 
                necessary to provide financial assistance under 
                subtitle C of title I and to provide national service 
                educational awards under subtitle D of title I for the 
                number of participants described in section 121(f)(1) 
                for that fiscal year, subject to subparagraph (B).
                    ``(B) Part iv of subtitle h.--The Corporation shall 
                transfer such sums as may be necessary from the funds 
                appropriated under subparagraph (A) for that fiscal 
                year to part IV of subtitle H of title I, and use the 
                funds to provide national service educational awards 
                under subtitle D of title I for participants in 
                national service pay for results projects.
                    ``(C) Funds available until expended.--Funds 
                obligated under subparagraph (B) shall remain available 
                until expended, and any funds deobligated from a pay 
                for results project under part IV of subtitle H shall 
                immediately become available for activities authorized 
                under subtitle C.''.

SEC. 4. VISTA.

    Title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 
4950 et seq.) is amended by inserting after part C the following:

           ``PART D--NATIONAL SERVICE PAY FOR RESULTS PROGRAM

``SEC. 131. DEFINITIONS.

    ``In this part:
            ``(1) B corps entity.--The term `B Corps entity' means a 
        private for-profit entity that--
                    ``(A) has social sustainability or environmental 
                performance standards;
                    ``(B) has accountability standards; and
                    ``(C) is transparent in reporting the entity's 
                social or environmental performance.
            ``(2) B corps partnership.--The term `B Corps partnership' 
        means a partnership between a B Corps entity and one or more 
        community-based entities.
            ``(3) Community-based entity.--The term `community-based 
        entity' means a public or private nonprofit organization that--
                    ``(A) has experience with meeting unmet human, 
                educational, environmental, or public safety needs; and
                    ``(B) meets other such criteria as the Director may 
                establish.
            ``(4) Eligible entity.--The term `eligible entity' means--
                    ``(A) a B Corps partnership; or
                    ``(B) a community-based entity.
            ``(5) Intervention.--The term `intervention' means a 
        specific service delivered to achieve an impact through a 
        national service pay for results project.
            ``(6) National service pay for results model.--The term 
        `national service pay for results model' means a method of 
        financing national service programs in which--
                    ``(A) Federal funds are awarded to an eligible 
                entity, only if the entity achieves certain outcomes 
                agreed on by the entity and the Director;
                    ``(B) the eligible entity coordinates with the 
                Director and investors to identify--
                            ``(i) an intervention expected to produce 
                        the outcome; and
                            ``(ii) investors to fund the delivery of 
                        the intervention; and
                    ``(C) the eligible entity implements the 
                intervention through the use of volunteers.
            ``(7) National service pay for results project.--The term 
        `national service pay for results project' means a project that 
        finances national service programs using a national service pay 
        for results model.

``SEC. 132. NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM.

    ``(a) Notice.--Not later than 3 months after the date of enactment 
of this part, the Director shall publish in the Federal Register a 
request for proposals from eligible entities for national service pay 
for results projects in accordance with this section.
    ``(b) Required Outcomes for National Service Pay for Results 
Project.--To qualify as a national service pay for results project 
under this part, a project must effectively utilize volunteers to 
produce 1 or more measurable, clearly defined outcomes that result in 
Federal savings and social benefit through any of the activities 
described in subparagraphs (B) of paragraphs (1) through (5) of section 
122(a) of the National and Community Service Act of 1990 (42 U.S.C. 
12572(a)) or described in section 103(a).
    ``(c) Application Required.--The notice described in subsection (b) 
shall require an eligible entity to submit, not later than 6 months 
after the date of publication in the Federal Register under subsection 
(a), an application for the national service pay for results project 
that addresses each of the following:
            ``(1) The outcome goals of the project.
            ``(2) The anticipated number of volunteers needed to 
        implement the project.
            ``(3) The criteria used to determine the eligibility of a 
        volunteer for the project, including how the potential 
        volunteers will be identified, how such volunteers will be 
        recruited for the project, and how such volunteers will be 
        trained for their roles in the project.
            ``(4) A description of each intervention in the project and 
        anticipated outcomes of the intervention.
            ``(5) A plan for implementing each intervention through the 
        use of volunteers.
            ``(6) Rigorous evidence demonstrating that the intervention 
        can be expected to produce the desired outcomes.
            ``(7) The target population that will be served by the 
        project.
            ``(8) The expected social benefits to individuals who 
        receive the intervention, the volunteers working on the 
        project, and others who may be impacted.
            ``(9) The projected cost to the eligible entity to carry 
        out the project, and any costs to the Federal, State, or local 
        government associated with the project.
            ``(10) Projected Federal, State, and local government 
        savings and other savings, including an estimate of the savings 
        to the Federal Government, on a program-by-program basis and in 
        the aggregate, if the project is implemented and the outcomes 
        are achieved as a result of the intervention.
            ``(11) If savings resulting from the successful completion 
        of the project are estimated to accrue to a State or local 
        government, the likelihood of the State or local government to 
        realize those savings.
            ``(12) A description of the expertise of the eligible 
        entity, including a summary of the experience of the entity in 
        delivering the proposed intervention or a similar intervention, 
        or demonstrating that the entity has the expertise necessary to 
        deliver the proposed intervention.
            ``(13) An explanation of the experience of the eligible 
        entity in raising private and philanthropic capital to fund 
        social service investments.
            ``(14) A description of the expertise of investors that the 
        eligible entity intends to partner with, to the extent that the 
        eligible entity may have identified those investors by the time 
        the application is submitted.
            ``(15) A summary of the unmet need in the area where the 
        intervention will be delivered or among the target population 
        who will receive the intervention.
            ``(16) The proposed payment terms, the methodology used to 
        calculate outcome payments, the payment schedule, and 
        performance thresholds.
            ``(17) The project budget.
            ``(18) The project timeline, provided that all projects 
        shall be limited to a duration of 5 years.
            ``(19) The criteria used to determine the eligibility of an 
        individual to be served by the project, including how selected 
        populations will be identified, how they will be referred to 
        the project, and how they will be enrolled in the project.
            ``(20) The evaluation design.
            ``(21) The metrics that will be used in the evaluation to 
        determine whether the outcomes have been achieved as a result 
        of the intervention and how the metrics will be measured.
            ``(22) An explanation of how the metrics used in the 
        evaluation to determine whether the outcomes achieved as a 
        result of the intervention are independent, objective 
        indicators of impact and are not subject to manipulation by the 
        eligible entity or investor.
            ``(23) A summary explaining the independence of the 
        evaluator from the other entities involved in the project and 
        the evaluator's experience in conducting rigorous evaluations 
        of program effectiveness including, where available, well-
        implemented randomized controlled trials on the intervention or 
        similar interventions.
            ``(24) Any potential payment disputes related to the 
        outcomes of the evaluation.
            ``(25) The capacity of the eligible entity to deliver the 
        intervention to the number of volunteers the eligible entity 
        proposes to serve in the project.

``SEC. 133. AWARDING NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM 
              FUNDS.

    ``(a) Timeline in Awarding Agreement.--
            ``(1) In general.--Not later than 3 months after the 
        deadline for applications in accordance with section 132 has 
        expired, the Director shall select not less than 4 and not more 
        than 6 eligible entities to participate in national service pay 
        for results projects.
            ``(2) Fewer applicants.--Notwithstanding paragraph (1), if 
        fewer than 4 eligible entities meet the requirements of this 
        part, the Director may select fewer than 4 entities.
    ``(b) Considerations in Awarding Agreement.--In determining whether 
to enter into an agreement for a national service pay for results 
project (the application for which was submitted under section 132) the 
Director shall--
            ``(1) seek to ensure geographic diversity in selected 
        entities, including by selecting not less than 1 eligible 
        entity that plans to serve a rural community and not less than 
        1 eligible entity that plans to serve an urban community; and
            ``(2) consider--
                    ``(A) the anticipated utilization of volunteers, 
                and whether the eligible entity plans to utilize 
                volunteers who come from a high-risk background;
                    ``(B) the value to the Federal Government of the 
                outcomes expected to be achieved if the outcomes 
                specified in the agreement are achieved as a result of 
                the intervention;
                    ``(C) the likelihood, based on evidence provided in 
                the application and other evidence, that the eligible 
                entity will achieve those outcomes;
                    ``(D) the savings to the Federal Government if the 
                outcomes specified in the agreement are achieved as a 
                result of the intervention;
                    ``(E) the savings to State and local governments if 
                the outcomes specified in the agreement are achieved as 
                a result of the intervention; and
                    ``(F) the expected quality of the evaluation that 
                would be conducted with respect to the agreement.
    ``(c) Agreement Authority.--
            ``(1) Agreement requirements.--The Director may enter into 
        an agreement for a national service pay for results project 
        with an eligible entity selected under this part if the 
        Director determines that each of the following requirements are 
        met:
                    ``(A) The eligible entity agrees to achieve 1 or 
                more outcomes as a result of the intervention, as 
                specified in the agreement and validated by independent 
                evaluation, in order to receive payment.
                    ``(B) The Federal payment to the eligible entity 
                for each specified outcome achieved as a result of the 
                intervention is less than or equal to the value of the 
                outcome to the Federal Government over a period not to 
                exceed 10 years, as determined by the Director, in 
                consultation with the entity.
                    ``(C) The project will begin not more than 12 
                months after the eligible entity has been selected.
                    ``(D) The duration of the project does not exceed 5 
                years.
                    ``(E) The eligible entity has demonstrated, through 
                the application submitted under section 132, that, 
                based on prior rigorous experimental evaluations or 
                rigorous quasi-experimental studies, the intervention 
                can be expected to achieve each outcome specified in 
                the agreement.
                    ``(F) The eligible entity has experience raising 
                private or philanthropic capital to fund social service 
                investments. To the extent the eligible entity does not 
                have such experience or is unable to secure private or 
                philanthropic capital prior to its application 
                submission, the Director may assist selected programs 
                in attaining such funding.
                    ``(G) The eligible entity applying for the program 
                has shown that it has experience delivering the 
                intervention, a similar intervention, or has otherwise 
                demonstrated the expertise necessary to deliver the 
                intervention.
                    ``(H) The project will utilize volunteers to 
                implement the intervention.
            ``(2) Ability to finance project.--
                    ``(A) Plan.--On the date that is 6 months after the 
                date of an agreement under this subsection--
                            ``(i) the eligible entity shall provide the 
                        Director with a plan demonstrating that the 
                        entity has the capability to fully fund the up-
                        front costs of the project and will have such 
                        funds available and reserved for the project 
                        not later than 1 year after the date of such 
                        agreement; and
                            ``(ii) if the Director finds that the 
                        eligible entity is not likely to have the 
                        capability to fully fund the up front costs of 
                        the project, the Director may terminate such 
                        agreement.
                    ``(B) Funds reserved.-- On the date that is 6 
                months after the date of an agreement under this 
                subsection, if the eligible entity does not have the 
                funds available and reserved to fully fund the up-front 
                costs of the project, the Director may terminate the 
                agreement under this subsection.
            ``(3) Impact of selection.--Subject to paragraph (2), for 
        purposes of applying provisions of part A and part C, if the 
        Director enters into an agreement with an entity for a project 
        under this section--
                    ``(A) except with respect to provisions that are 
                otherwise specified in this part, the entity shall be 
                considered a sponsoring organization of VISTA; and
                    ``(B) subject to subsection (d) and except with 
                respect to provisions that are otherwise specified in 
                this part, the volunteers participating in that project 
                shall be considered VISTA volunteers.
            ``(4) Payment.--
                    ``(A) In general.--The eligible entity selected 
                under this part shall pay the entire up-front costs of 
                the project under this part.
                    ``(B) Outcome payment.--The Director shall pay the 
                selected eligible entity, after completion of the 
                project, only if the independent evaluator described in 
                section 134(b) determines that the national service pay 
                for results project has met the requirements specified 
                in the agreement and achieved an outcome as a result of 
                the intervention, as specified in the agreement and 
                validated by independent evaluation.
                    ``(C) Amount of payment.--The Director shall have 
                discretion in determining the amount of funds awarded 
                for each pay for results project under this part, 
                except that such amount shall be specified as part of 
                the agreement with each entity under this section.
    ``(d) Volunteers.--The assignment of volunteers under this part, 
and the provision of support for such volunteers, including any 
subsistence allowances and stipends, shall be on such terms and 
conditions as the Director shall determine to be appropriate, but shall 
not exceed the level of support provided under section 105. Projects 
using volunteers who do not receive stipends may also be supported 
under this part.

``SEC. 134. EVALUATIONS.

    ``(a) Authority To Enter Into Agreements.--For each eligible entity 
awarded a national service pay for results project approved by the 
Director under this part, the Director shall enter into an agreement 
with such eligible entity to pay for all or part of the independent 
evaluation to determine whether the entity's project has achieved a 
specific outcome as a result of the intervention in order for the 
selected entity to receive outcome payments under this part.
    ``(b) Evaluator Qualifications.--The Director may not enter into an 
agreement with an entity under this section unless the Director 
determines that--
            ``(1) the evaluator is independent of the other parties to 
        the agreement; and
            ``(2) the evaluator has demonstrated substantial experience 
        in conducting rigorous evaluations of program effectiveness 
        including, where available and appropriate, well-implemented 
        randomized controlled trials on the intervention or similar 
        interventions.
    ``(c) Methodologies To Be Used.--The evaluation used to determine 
whether an eligible entity will receive outcome payments under this 
part shall use experimental designs using random assignment, or other 
reliable, evidence-based research methodologies that allow for the 
strongest possible causal inferences when random assignment is not 
feasible.
    ``(d) Progress Report.--
            ``(1) Submission of report.--The eligible entity shall 
        ensure that the independent evaluator will--
                    ``(A) not later than 2 years after a project has 
                been approved by the Director and annually thereafter 
                until the project is concluded, submit to the Director 
                a written report summarizing the progress that has been 
                made in achieving each outcome specified in the 
                agreement; and
                    ``(B) before the scheduled time of the first 
                outcome payment and before the scheduled time of each 
                subsequent payment, submit to the Director a written 
                report that includes the results of the evaluation 
                conducted to determine whether an outcome payment 
                should be made along with information on the unique 
                factors that contributed to achieving or failing to 
                achieve the outcome, the challenges faced in attempting 
                to achieve the outcome, and information on the improved 
                future delivery of this or similar interventions.
            ``(2) Submission to the ceo and congress.--Not later than 
        30 days after receipt of the written report pursuant to 
        paragraph (1)(B), the Director shall submit the report to each 
        of the authorizing committees.
    ``(e) Final Report.--
            ``(1) Submission of report.--The eligible entity shall 
        ensure that the independent evaluator will, not later than 6 
        months after the national service pay for results project is 
        completed--
                    ``(A) evaluate the effects of the activities 
                undertaken pursuant to the agreement with regard to 
                each outcome specified in the agreement; and
                    ``(B) submit to the Director a written report that 
                includes the results of the evaluation and the 
                conclusion of the evaluator as to whether the eligible 
                entity has fulfilled each obligation of the agreement, 
                along with information on the unique factors that 
                contributed to the success or failure of the project, 
                the challenges faced in attempting to achieve the 
                outcome, and information on the improved future 
                delivery of this or similar interventions.
            ``(2) Submission to the ceo and congress.--Not later than 
        30 days after receipt of the written report pursuant to 
        paragraph (1)(B), the Director shall submit the report to each 
        authorizing committees.
    ``(f) Limitation on Cost of Evaluations.--Of the amounts 
appropriated to carry out this part, the Director may not obligate more 
than 15 percent to evaluate the implementation and outcomes of the 
projects under this part.

``SEC. 135. FUNDING.

    ``(a) Prohibition on Federal Funding for Credit Enhancements.--No 
amount appropriated to carry out this part may be used to provide any 
insurance, guarantee, or other credit enhancement to an eligible entity 
under which a Federal payment would be made to an eligible entity, as 
the result of such entity failing to achieve an outcome specified in an 
agreement.
    ``(b) Matching Funds Requirements Not Applicable.--An entity 
awarded an agreement under this part shall not be subject to a matching 
funds requirement.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated a total of $5,000,000--
            (1) to carry out part IV of subtitle H of title I of the 
        National and Community Service Act of 1990 (42 U.S.C. 12653 et 
        seq.), as amended by sections 2 and 3 of this Act; and
            (2) to carry out part D of title I of the Domestic 
        Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.).
                                 <all>