OCTAE: Providing High-Quality Career and Technical Education Programs for Underserved, High-Need Youth Through a Pay for Success Model CFDA Number 84.051 | Apply Online

Frequently Asked Questions (FAQs)

What is this grant opportunity about?

This opportunity from the U.S. Department of Education (Office of Career, Technical, and Adult Education, OCTAE) under CFDA 84.051 supports communities in developing a Pay for Success (PFS) financing approach to expand or launch high-quality career and technical education (CTE) programs for underserved, high-need youth. The funding is aimed at building the groundwork for results-based financing rather than immediately paying for large-scale program delivery across multiple sites.

What does "Pay for Success (PFS)" mean in this context?

In this context, Pay for Success refers to a results-based financing model where implementation can be supported by private or philanthropic capital, and repayment or success payments are tied to achieving measurable outcomes. The grant focuses on preparing projects that can be financed and evaluated under that outcomes-based structure.

What is the main goal of the grant (what does it fund)?

The core purpose is to fund a single Intermediary organization through a cooperative agreement to provide technical assistance for the first two stages of a three-phase PFS model. The Intermediary helps local sites assess feasibility and, if feasible, move into transaction structuring so that projects become launch-ready PFS deals.

Who receives the award?

The opportunity anticipates a single award. The award is intended for one Intermediary organization that will then work with selected local sites.

What is the funding amount and maximum award size?

The opportunity anticipates a single award with an award ceiling of $2,000,000.

What type of grant mechanism is used?

This is a discretionary grant competition using a cooperative agreement mechanism. A cooperative agreement generally means the Department of Education expects substantial involvement during the project period, such as coordination on deliverables, timelines, and technical assistance activities.

What is CFDA 84.051?

CFDA 84.051 is the catalog identifier associated with this U.S. Department of Education grant opportunity. The application package referenced for submission was tied to CFDA 84.051.

What is an "Intermediary" in this grant?

The Intermediary is the organization funded by the Department of Education to provide technical assistance to local CTE sites. The Intermediary conducts feasibility studies (Phase One) and supports transaction structuring (Phase Two) for sites that are determined feasible.

How many local sites are involved?

Phase One involves feasibility studies in four selected Local CTE Sites.

What happens in Phase One (Feasibility Studies)?

In Phase One, the Intermediary conducts feasibility studies at four selected Local CTE Sites to determine whether proposed CTE initiatives are strong enough, measurable enough, and operationally realistic enough to be financed and evaluated under a PFS structure.

What kinds of topics are assessed during the feasibility studies?

The feasibility studies typically include examining the target youth population and their needs; assessing the quality and evidence base of the CTE program model; confirming that outcomes can be clearly defined and tracked using available data systems; evaluating stakeholder readiness (such as schools, training providers, workforce partners, local government, and employers); and estimating costs and potential economic or public benefits that could support outcomes-based repayment.

What happens in Phase Two (Transaction Structuring)?

In Phase Two, the Intermediary moves from analysis to deal design by providing or supporting transaction structuring for up to three of the four local sites, and only for those sites whose projects are determined to be feasible.

What does "transaction structuring" include for a PFS project?

Transaction structuring is the process of turning a promising concept into a launch-ready PFS project. It includes defining the parties and their roles (service providers, outcome payors, investors, evaluators), setting outcome metrics and verification methods, building a financial model, negotiating terms, and preparing the legal and operational framework needed to start.

Will all four local sites receive transaction structuring support?

Not necessarily. The notice emphasizes that funding is limited, so structuring support may not be possible for all four sites. In addition, only sites determined to be feasible can move into transaction structuring.

Can all sites complete Phase One and Phase Two during the grant period?

The notice highlights a practical constraint that, even with strong intent, local challenges may prevent every site from completing the first two phases within the grant period.

What is the intended end result of Phase One and Phase Two?

The overall aim is to end with fully structured, high-quality PFS projects that are ready to implement CTE programs in local communities and improve education and workforce outcomes for underserved, high-need youth.

Does this grant directly fund large-scale CTE program delivery at multiple sites right away?

No. The description emphasizes that the grant does not focus on directly funding large-scale program delivery at multiple sites right away. Instead, it funds the groundwork needed to develop results-based PFS projects that can later support implementation through other financing.

Who are the intended beneficiaries of the CTE efforts supported by this grant?

The CTE programs associated with the PFS projects are intended to serve underserved, high-need youth.

Who is eligible to apply?

Eligible applicants are broad and include state, county, and local governments; independent school districts; public and private institutions of higher education; federally recognized tribal governments and tribal organizations; nonprofits with or without 501(c)(3) status; and for-profit entities (other than small businesses), along with other eligible entities as clarified in the official notice.

Are nonprofits required to have 501(c)(3) status to apply?

No. The eligibility list includes nonprofits with or without 501(c)(3) status.

Are for-profit entities eligible?

Yes. For-profit entities are included as eligible applicants, except small businesses (the listing specifies "for-profit entities (other than small businesses)").

How were applications submitted?

Applications were required to be submitted electronically through Grants.gov using the downloadable application package for CFDA 84.051.

What were the key dates listed for the original competition cycle?

The posting lists these dates: applications became available July 26, 2016; a pre-application meeting was scheduled for August 2, 2016; and the application deadline was August 25, 2016.

Is the synopsis enough to apply, or is there another official source?

The synopsis repeatedly stresses that it is not a substitute for the official Federal Register notice. Applicants were expected to rely on the official notice for full eligibility rules, required content, priorities, performance measures, and submission requirements.

What role does the Department of Education play during the project?

Because the mechanism is a cooperative agreement, the Department of Education is expected to have substantial involvement during the project period, such as coordinating with the Intermediary on deliverables, timelines, and technical assistance activities.