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.1 Authority
.11 Demonstration Projects. Demonstration projects are those authorized by Section 17(b)(1) of the 1977 Food Stamp Act which states in part: The Secretary (of USDA) is authorized to conduct on a trial basis, in one or more areas of the United States, pilot or experimental projects (hereafter called demonstration projects) designed to test program changes that might increase the efficiency of the Food Stamp Program and improve the delivery of food stamp benefits to eligible households. The Secretary is further authorized to waive all or part of the requirements of the act and to implement regulations to the degree necessary to conduct such projects, except that no project may be undertaken which would lower or further restrict the established income and resource standards or benefits levels.
.12 Research Projects. Research projects are those authorized by Section 17(a) of the 1977 Food Stamp Act which states: The Secretary may, by way of making contracts with or grants to public or private organizations or agencies, undertake research that will help improve the administration and effectiveness of the Food Stamp Program in delivering nutrition related benefits.
.13 Evaluation Projects. Evaluation projects are those authorized by Section 17(c) of the 1977 Food Stamp Act which states in part: The Secretary shall develop and implement measures for evaluating, on an annual or more frequent basis, the effectiveness of the Food Stamp Program in achieving its stated objectives.
2. Project Initiation
The Secretary of USDA shall determine those areas of program operations which require demonstration, research, or evaluation efforts. In making these determinations, the Secretary shall consider suggestions submitted by state and county agencies and other interested parties. The Secretary shall, as appropriate, seek proposals for specific types of demonstration projects through either publication of a notice of intent in the Federal Register or in accordance with procedures prescribed in the federal procurement regulations (41 CFR, Ch.1).
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.3 Eligibility
States or public or other nonprofit agencies or organizations or individuals are eligible for grants. Grants shall be subject to the appropriate provisions established in the Office of Management and Budget (OMB) Circular A-102, Uniform Administrative Requirements for Grants-In-Aid to State and Local Governments and Federal Management Circular (FMC) 74-4 Cost Principles Applicable to Grants and Contracts With State and Local Governments. States or public or private agencies or organizations or individuals are eligible for contracts.
.4 Federal Procedures for Approval of Proposals
.41 Presubmission proposal review. All suggestions for project operations and formal proposals for such operations shall be subject to the application procedures contained in OMB Circular A-102. If projects will have a significant impact on normal ongoing program activities, such suggestions or proposals shall be reviewed in accordance with the procedures established in OMB Circular A-95, Evaluation, Review and Coordination of Federal and Federally Assisted Programs and Projects.
.42 Proposals for demonstration, research or evaluation projects shall be reviewed by a panel consisting of appropriate FNS and USDA departmental representatives.
.43 Representatives from other departments and agencies may be invited to participate in proposal review where proposed projects could affect their programs.
.44 Proposals shall be ranked based on the criteria established in this section.
.5 Approval Criteria
.51 Proposals shall be reviewed for responsiveness to the specific requirements contained in the Notice of Intent or request for proposal.
.52 In addition, proposals will be evaluated according to the following general criteria:
.521 The conceptual development and clarity of measurable objectives.
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.522 Probable effectiveness of the proposal to achieve the project objectives based on:
(a) A complete description of the purpose; hypotheses; demonstration, research, or evaluation design; and plans for implementation;
(b) The adequacy of the work plan, indicating tasks, scheduling, and methodology; and
(c) A technical evaluation plan consistent with the objectives stated.
.523 The capability of the applicant to conduct the project based on:
(a) A description of the qualifications of staff;
(b) Availability of necessary facilities, staff, and other resources;
(c) Administrative and supervisory capacity; and
(d) Knowledge of or previous experience in conducting demonstration, research, or evaluation projects.
.524 The projected cost of the project.
.525 For demonstration projects, potential benefits in relation to projected costs and potential nationwide application.
.526 The relationship of the proposal to other similar demonstration, research, or evaluation efforts.
.6 Preoperational Rulemaking Procedures for Demonstration Projects
Prior to the initiation of a demonstration project FNS shall publish proposed regulations in the Federal Register, if the proposal will likely have significant impact on the public. The regulations shall set forth the specific operational procedures for the demonstration project and the provisions of the act and regulations which shall be waived. All public comments received shall be considered and final regulations published prior to actual project operation.
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.7 Federal Financial Participation
.71 Level of Funding
.711 Grant Awards. FNS shall pay all costs up to the level established in the grant award. When a demonstration project involves an area of ongoing state or county administrative responsibilities as established in Section 63-103 FNS may pay up to 100 percent only of those administrative costs which exceed those usual and customary to program operations.
.712 Contracts. FNS shall pay all costs as established in the terms and conditions of the contract.
.713 Additional Funding. The awarding of any funding for additional costs incurred when necessary to the successful completion of a project shall be subject to existing federal grant and contracting procedures.
.714 Limitations. Federal financial participation shall be available to demonstration, research, and evaluation projects only for:
(a) Those activities and projects awarded by FNS. Funds shall not be transferred from one project to another;
(b) Those costs specified in the grant or contract up to the amount approved in the grant or contract; and
(c) Costs incurred during the project, as established in the grant or contract. Time extensions regarding the project may be granted where sufficient justification has been submitted and approved by FNS.
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NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: Sections 10554 and 18904, Welfare and Institutions Code.
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