What is SIPPRA?
The Social Impact Partnership to Pay for Results Act (SIPPRA) was signed into law on February 9, 2018 and is intended to improve the effectiveness of certain social services. The federal government will pay for a project only if predetermined project outcomes have been met and validated by an independent evaluator, a system called a “pay for results partnership.” Congress appropriated $100 million for the SIPPRA program to implement “Social Impact Partnership Demonstration Projects” and feasibility studies to prepare for those projects. The SIPPRA program is largely administered by the Department of the Treasury (Treasury).
How can I keep up-to-date on new SIPPRA information?
Treasury’s website, Treasury.gov/SIPPRA, has a link enabling sign-ups to a SIPPRA email distribution list for future announcements. These FAQs will be updated periodically with additional information.
My question is not on this FAQ list. Who can I ask?
Questions can be sent to SIPPRA@treasury.gov. We will provide additional information as it becomes available, via updates to these FAQs, the SIPPRA website, and the SIPPRA email distribution list.
What is the application deadline for project applications? (NEW)
Applications under this Notice of Funding Availability (NOFA) can be submitted no earlier than April 22, 2019 and no later than 4:00 p.m. Eastern Time May 22, 2019 electronically via www.Grants.gov.
Treasury encourages potential applicants to submit a notice of intent to apply by April 8, 2019.
Will there be subsequent Notices of Funding Availability during the 10 year program? (NEW)
If funds remain available following awards made under this Notice of Funding Availability (NOFA), Treasury anticipates publishing a subsequent NOFA in the future.
Can Treasury answer questions about Grants.gov? (NEW)
No. Information related to Grants.gov can be found at www.Grants.gov.
When will project awards be made?
Treasury anticipates announcing awards for projects no later than November 2019, 6 months after the May 22, 2019 application deadline.
Who is eligible to apply for and receive a SIPPRA grant?
Only State and local governments are eligible to apply for SIPPRA funding. “State” is defined in SIPPRA to include each State of the United States, the District of Columbia, each commonwealth, territory or possession of the United States, and each federally recognized Indian tribe.
Can an eligible applicant submit more than one application under this program? (NEW)
Any eligible applicant may submit more than one application, but may submit only one application for any given target population to be served. Each application must be submitted to Grants.gov separately.
Can multiple divisions within an eligible state or local department submit separate proposals for a demonstration project, or are divisional proposals required to be combined into one state-wide or departmental application? (NEW)
Multiple divisions within a state or local department may submit an application.
May multiple divisions within a state or local department submit a joint application? (NEW)
Yes, multiple divisions within a state or local department may submit a joint application, although one division must be designated as the lead applicant.
Which types of projects qualify for SIPPRA funding?
SIPPRA provides funding for pay for results projects. Under SIPPRA, Treasury will award grants for pay-for-results projects designed to produce one of 21 outcomes listed in 42 U.S.C. § 1397n-1(b). See Appendix A. SIPPRA also provides more limited funding to support pay-for-results feasibility studies. (See FAQs on Outcome Project Awards and Feasibility Studies Awards below.)
May I submit a SIPPRA application to fund an existing project? (NEW)
No. Proposed interventions in SIPPRA applications cannot serve individuals currently being served by an existing Pay for Success project.
Must all agreements (e.g., project team contracts, funding sources) be finalized at the time of application? (NEW)
Project funding should be arranged at the time of application. Treasury expects that applicants will provide as part of their application, letters of commitment from partners. The letters of commitment may state the commitment is conditional on a SIPPRA award. Final arrangements will be made prior to award of the grant.
How many SIPPRA project awards will Treasury make? (NEW)
The number of project awards will depend on the quality and viability of project applications and the amount of funds requested by individual applicants. Without pre-judging the outcome, Treasury anticipates making between five and fifteen awards under the first Notice of Funding Availability (NOFA).
What criteria will be used to select projects for funding? (NEW)
Section E of the Notice of Funding Availability (NOFA) details the criteria Treasury, with the assistance and recommendations made by the Commission on Social Impact Partnerships and in consultation with the Federal Interagency Council on Social Impact Partnerships (the Council), will consider in selecting projects for funding.
How are interventions “that directly benefit children” determined? (NEW)
During the application review process Treasury and subject matter experts will assess whether the project as a whole is for the benefit of children. There will not be a “partially for the benefit of children” category. In a project with multiple interventions and outcomes, it may be that not all of the interventions and outcomes will directly benefit children. In this event, Treasury will assess to see whether the primary purpose of the project directly benefits children.
Are there requirements for matching funds or cost sharing for projects? (NEW)
Cost sharing or matching funds, as defined in the Uniform Guidance, are not required, and the financial contributions from any investors for project implementation are not characterized as cost sharing or matching funds.
Intervention Outcomes, Value and Savings Estimates, Payments
Will I be required to work with an evaluator?
Yes. SIPPRA requires that an independent evaluator determine whether project outcomes have been met before the federal government can make payments based on those validated outcomes. 42 U.S.C. § 1397n-2(c)(2).
How is the Independent Evaluator paid? (NEW)
A recipient will be eligible to receive up to 15% of the project grant award to pay the Independent Evaluator. Since the Act limits the amount of SIPPRA funding that may be used to pay for evaluations, the project recipient and its partners may need to bear some of the cost for the Independent Evaluator and should consider this requirement during the planning process. The federal government will determine the amount it will pay the Independent Evaluator during the application review period.
Are there specific metrics a grant recipient must meet in order to receive payments after a project is completed? (NEW)
Yes. The grant recipient must achieve the outcome target(s) proposed in the grant application within the intervention period to trigger a federal payment. An independent evaluator must verify the intervention achieved the outcome target(s), determine whether an outcome payment should be made, and, if so, determine the size of the payment. The payment will reflect no more than the value to the federal government and be less than or equal to the value of the proposed outcome calculated in accordance with Section A.5.b. of the Notice of Funding Availability (NOFA).
What are the payment options for an intervention? (NEW)
An applicant may propose a project consisting of only one outcome, with one proposed federal payment to be made at the end of the project. Depending on the degree to which the proposed outcome has been met, actual payment would be subject to the required Independent Evaluator validation and would be equal to or less than the proposed payment.
Alternatively, an applicant may propose multiple outcomes within a project, with proposed payments tied to the completion of each outcome. Each outcome and related payment will be evaluated independently. Depending on the degree to which each proposed outcome has been met, actual payment would be subject to the required Independent Evaluator validation and would be equal to or less than the proposed payment for that outcome.
How will the “value to the federal government” be determined? (NEW)
Value to the federal government will be estimated from the public sector savings (decrease in federal outlays) and federal tax receipts (potential increase in revenue) that are the result of the intervention.
Value should be calculated for each proposed outcome and for the aggregate intervention calculated in accordance with Section A.5.b. of the Notice of Funding Availability (NOFA).
For assistance with calculating the budget impact analysis, please see the Treasury SIPPRA website.
Is a separate budget impact analysis (BIA), required for each proposed outcome payment? (NEW)
Yes. Applicants proposing multiple project outcomes and multiple related outcome payments (see Payment Options FAQ) must provide a separate BIA, calculated in accordance with Section A.5.b. of the Notice of Funding Availability (NOFA), for each outcome payment, as well as an aggregated BIA.
Feasibility Study Awards
When will a Notice of Funding Availability (NOFA) for feasibility studies be published?
Treasury expects to publish a NOFA for feasibility studies in 2019.
What is the period of performance for a SIPPRA feasibility study?
Feasibility studies must be completed no later than nine months following the date of receipt of funding.
Is there a matching funds requirement for feasibility studies?
SIPPRA requires a grant recipient to provide at least 50% of the funding for a feasibility study.
How many feasibility study awards will be made?
The number of feasibility awards under SIPPRA will depend on the quality and viability of project applications and the amount of funds requested by individual applicants.