1 Secretary's Order 2-96
was signed on April 17, 1996, delegating jurisdiction to issue final agency decisions under these
statutes and regulations to the Administrative Review Board. 61 Fed. Reg. 19978 (May 3, 1996).
The order also contains a comprehensive list of the statutes, executive order and regulations under
which the Board now issues final agency decisions. 61 Fed. Reg. 19982.
2 The JTPA
regulations were revised in 1992. The revisions and renumbering were reflected in the 1993
edition Code of Federal Regulations. The regulatory citations in this decision are consistent with
the regulations in effect at the time of the program operations and audit.
3 Single unit
charge agreements are generally characterized as fixed unit price, performance-based contracts
which provide that a contractor will be paid a specific negotiated price for each participant who
completed training and was placed in unsubsidized employment in the occupation
trained for and at not less than the wage specified in the agreement. The fixed
unit price was not to be allocated by cost category and the contractor assumed the risk of non-payment for any participant who did not complete training or was not placed in unsubsidized
employment.
4 The
regulations at 20 C.F.R. § 629.38(e)(2), entitled Classification of costs
provide:
(2) Costs which are billed as a single unit charge do not have to be
allocated or prorated among the several cost categories but may be
charged entirely to training or retraining services when the
agreement:
(i) Is for training under title II or for retraining under title III, . . .
under a performance-based contract/agreement;
(ii) Is fixed unit price; and
(iii)(A) Stipulates that full payment for the full unit price will be made only upon
completion of training by a participant and placement of the participant into
unsubsidized employment in the occupation trained for and at not less than the wage
specified in the agreement; . . . .
5 A full
discussion of the background concerning the development of the regulation and the ensuing policy
interpretation can be found in the Secretary's Texas decision, slip op. at 2-4, 6-8.