DRAFT Waiver Request: One-Stop Operator (OSO) Location Requirement

Waiver Request:  One-Stop Operator (OSO) Location Requirement

Required Elements:

In satisfaction of the required elements identified in the U.S. Department of Labor (DOL) Waiver Request Tool:

1. The statutory and regulatory requirements are identified below, within the waiver request.

1. There are no State or local barriers, only Federal barriers imposed by WIOA and its final rules.

1. These waiver request will help Iowa’s local workforce development areas (local areas) to fulfill the WIOA requirements for one-stop operator (OSO) competitive selection after the realignment of the State’s local areas despite limited federal funding.

1. The State anticipates that this will help program outcomes by allowing Iowa use less money on OSOs, which will free up funds for use in other areas to meet WIOA requirements.

1. This waiver request will help local areas, including Local Workforce Development Boards (WDBs), by allowing them to combine their efforts and resources when competitively selecting an OSO, which will allow them to find cost efficiencies that would otherwise be unavailable.

1. IWD will continue to monitor local areas and Local WDBs for WIOA compliance, including with respect to the competitive selection of OSOs. IWD will collect and include information about waiver outcomes in the State’s WIOA annual report.

1. IWD posted a draft of this waiver request on the State’s public comment portal for 30 days prior to submitting this waiver request.

Waiver Request:

Training and Employment Guidance Letter (TEGL) WIOA No. 15-16, “Competitive Selection of One-Stop Operators,” states:

The WIOA Joint Final Rule requires that a competitive process be conducted at least once every four years. The requirement to use a competitive process for one-stop operator selection is set forth in WIOA sec. 121(d)(2)(A). Due to this statutory requirement, the competitive selection process for one-stop operators in all Local Areas cannot be waived. While the Local WDB must select the one-stop operator through a competitive process at least once every four years, a State may require, or a Local WDB may choose to implement, a competitive selection process more often than once every four years.

(emphasis added).

TEGL No. 15-16 makes clear that the Secretary of Labor will not waive the requirements relating to the competitive designation or certification of the OSO. But it appears to leave open the possibility of waiving eligibility requirements for the OSO. These eligibility requirements are in WIOA section 121(d)(2), which states:

To be eligible to receive funds made available under this subtitle to operate a one-stop center referred to in subsection (e), an entity (which may be a consortium of entities)—

(A) shall be designated or certified as a one-stop operator through a competitive process; and

(B) shall be an entity (public, private, or nonprofit), or consortium of entities (including a consortium of entities that, at a minimum, includes 3 or more of the one-stop partners described in subsection (b)(1)), of demonstrated effectiveness, located in the local area, which may include—

(i) an institution of higher education;

(ii) an employment service State agency established under the Wagner–Peyser Act (29 U.S.C. 49 et seq.), on behalf of the local office of the agency;

(iii) a community-based organization, nonprofit organization, or intermediary;

(iv) a private for-profit entity;

(v) a government agency; and

(vi) another interested organization or entity, which may include a local chamber of commerce or other business organization, or a labor organization.

(emphasis added).

Iowa requests a waiver of the requirement in WIOA section 121(d)(2)(B) that the entity that is the OSO be “located in the local area.” Eliminating this requirement will allow multiple Local WDBs)to jointly select an entity to serve as the OSO for their local areas even if the entity is not located in one of the local areas. Performing the OSO role remotely for the comprehensive one-stop center(s) and local area(s) in which the entity is not located will allow participating local areas to save money on the OSO.  For example, instead of two local areas spending $100,000 each on the OSO for a combined total of $200,000, the two local areas could combine their efforts and resources to competitively select an OSO for both local areas at a cost of only $100,000. This would effectively cut the costs of the OSO for the local areas in half and free up limited federal funding for use in meeting other WIOA requirements for the local areas.