[Federal Register Volume 79, Number 77 (Tuesday, April 22, 2014)]
[Notices]
[Pages 22505-22506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09132]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Health Center Program

AGENCY: Health Resources and Services Administration, HHS.

ACTION: Notice of Class Deviation From Competition Requirements for 
Low-Cost Extensions and Administrative Supplement Thresholds To 
Minimize Disruption of Services for Certain Health Center Program 
Service Areas.

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SUMMARY: In accordance with the Awarding Agency Grants Management 
Manual (AAGAM) Chapter 1.03.103, the Bureau of Primary Health Care 
(BPHC) requests a class deviation to award low-cost extensions of up to 
6 months or, when necessary, administrative supplements to minimize 
disruption of services for specific health center program service 
areas.
    Per the requirements for low-cost extensions outlined in the AAGAM 
Chapter 2.04.104B-4A.1.a.(5)(b), these extensions may not exceed 25 
percent of the approved federal direct cost budget authorized for the 
budget period (exclusive of the additional funding requested) or 
$100,000. Likewise, per the requirements for administrative supplements 
outlined in the AAGAM Chapter 2.04.104B-4A.4.b, these supplements may 
not exceed 25 percent of the approved federal direct cost budget 
authorized for the budget period (exclusive of the additional funding) 
or $250,000, whichever is less. In each case, the Health Resources and 
Services Administration (HRSA) is required to publish a notice in the 
Federal Register in advance of, or concurrent with, the awarding of the 
funds.
    BPHC is requesting a class deviation to the requirements for low-
cost extensions to allow HRSA to award extensions that exceed 25 
percent of the approved federal direct cost budget authorized for the 
budget period (exclusive of the additional funding requested) and/or 
$100,000 in cases where the grantee would not receive future continued 
support under the Health Center Program. Likewise, BPHC is requesting a 
class deviation to the requirements for administrative supplements to 
allow HRSA to award supplements that exceed 25 percent of the approved 
federal direct cost budget authorized for the budget period (exclusive 
of the additional funding) and/or $250,000 in cases where the award is 
to a currently funded grantee located in or adjacent to the service 
area of a grantee that will not receive continued support under the 
Health Center Program. BPHC is also requesting that the deviation allow 
for the publication of a consolidated notice in the Federal Register 
annually that summarizes the actions taken in the prior fiscal year.
    The sole purpose of these low-cost extensions or administrative 
supplements is to avoid a gap in the provision of critical health care 
services for a funded service area by providing a ``bridge'' until HRSA 
is able to make an award to an eligible applicant under a Service Area 
Competition (SAC) and/or to assure an orderly phase-out of Health 
Center Program activities by the current grantee.
    BPHC is not requesting that this class deviation cover single 
source replacement awards and will continue to request single case 
deviations for such non-competitive actions if necessary.

SUPPLEMENTARY INFORMATION:
    Intended Recipient of the Award: Health Center Program Grantees.
    Amount of Non-Competitive Awards: Variable.
    Period of Supplemental Funding: Variable.
    CFDA Number: 93.224, 93.527.
    Authority: Section 330 of the Public Health Service Act (42 U.S.C. 
254b), as amended; Public Law 111-148, the Affordable Care Act of 2010, 
Section 5601 and Section 10503, as amended; Public Law 111-152, Health 
Care and Education Reconciliation Act of 2010, Section 2303.
    Justification: BPHC always conducts an open competition to identify 
a new Health Center Program grantee for a previously funded but now 
available service area; however, it generally takes up to 6 months to 
announce and conduct the SAC and select a new grantee for the service 
area.
    In fiscal year 2013, BPHC awarded operational grants to support 
approximately 1,200 Health Center Program grantee organizations. 
Throughout the course of the current fiscal year, there have been 14 
cases where a deviation and accompanying Federal Register Notice were 
warranted per AAGAM 2.04.104B-4A, based on the need to issue a low-cost 
extension or administrative supplement. Such cases occurred when a 
Health Center Program grant was discontinued prior to the project 
period end date. Discontinuations prior to the project period end date 
have been the result of a voluntary relinquishment of the grant award 
by the current grantee or an enforcement action taken by HRSA due to a 
grantee's material noncompliance with program requirements. The need 
for a low-cost extension or administrative supplement has also occurred 
at the end of a grantee's project period due to a lack of eligible or 
fundable applications for the announced service area. In all cases, the 
purpose for the HRSA award of the low-cost extension or administrative 
supplement was to avoid a gap in the provision of critical health care 
services for a service area by providing a ``bridge'' until HRSA was 
able to make an award to an eligible applicant under a SAC and to

[[Page 22506]]

assure an orderly phase-out of Health Center Program activities by the 
current grantee. Often the funds necessary to continue services in 
these service areas exceed the amount authorized for low-cost 
extensions and administrative supplements under the AAGAM.
    Given the commonality of purpose and time-sensitive circumstances 
surrounding these low-cost extensions and administrative supplements, 
approval of a class deviation to allow a streamlined process for these 
awards would ensure both consistency and efficiency, and support HRSA's 
commitment to minimizing a disruption in services to health center 
patients.
    The number of grantees that HRSA would award low-cost extensions or 
administrative supplements to is expected to be extremely limited (less 
than 10-15 per year) based on recent experience. In addition, the 
amount of grant funds provided under the extension or supplement would 
be determined based on pro-rating HRSA's existing funding commitment to 
the service area. In all cases, current fiscal year funds will be used 
to supplement or extend the grantee's existing budget period award.

FOR FURTHER INFORMATION CONTACT: Olivia Shockey, Chief, Expansion 
Branch, Office of Policy and Program Development, Bureau of Primary 
Health Care, Health Resources and Services Administration, 5600 Fishers 
Lane, Rockville, Maryland 20857, email: [email protected].

    Dated: April 16, 2014.
Mary K. Wakefield,
Administrator.
[FR Doc. 2014-09132 Filed 4-21-14; 8:45 am]
BILLING CODE 4165-15-P