(1) which determines need by evaluating only the student's expected family contribution if that student's expected family contribution is not more than $2,800; or (2) which determines relative need by evaluating the difference between the student's cost of education and his expected family contribution if that difference is at least $90; or (3) which determines need by evaluating the student's, and where relevant, the student's parents' income if the student's net income does not exceed $20,000, or, where relevant, if the parents' net income does not exceed $20,000; or (4) which determines need in accordance with standards other than those specifically listed in paragraph (a) of this section if the amount of need determined in accordance with the standard is reasonably comparable to the amount of need that would be determined under the standards listed in paragraph (a).

(c) A State program which provides for the selection of recipients on the basis of criteria which do not qualify under the provisions of paragraph (b) may, nevertheless, be approved, pursuant to section 415C(b)(4) of the Act, if the State demonstrates, to the satisfaction of the Commissioner, that the program provides for the selection of recipients on the basis of substantial financial need.

(20 U.S.C. 1070c-2.)

§ 192.8 Approval of State criteria for determining expected family contribution.

(a) Dependent students. The Commissioner will approve the criteria of a State program which uses an expected family contribution in determining whether a dependent student has substantial financial need if the State takes into consideration at least the following factors in determining the amount of income and net assets that should reasonably be made available to the student, the student's spouse and the student's parents for meeting the student's cost of education:

(1) Any serious family illness; (2) The number of dependent children of the student's parents;

(4) Other circumstances which may affect the ability of the student and the student's parents to contribute toward the cost of the student's education.

(b) Independent or self-supporting student. The Commissioner will approve the criteria of a State program which utilizes an expected family contribution in determining whether an independent or self-supporting student has substantial financial need if the State takes into consideration at least the following factors when calculating that portion of the income and net assets of the student and the student's spouse which should reasonably be made available for meeting the student's cost of education:

(1) Any serious illness in the student's family;

(2) The number of dependent children of the student;

(3) The number of those dependent children attending institutions higher education; and

of

(4) Other circumstances which may affect the ability of the student or the student's spouse to contribute toward the cost of the student's education.

(c) The Commissioner has determined that the following need analysis systems or methods of calculation meet the criteria set forth in paragraph (a) and (b) of this section:

(1) Systems of need analysis published by the American College Testing Program and the College Scholarship Service,

(2) The method of calculating an expected family contribution used in the Basic Educational Opportunity Grant Program (45 CFR 190), or

(3) For dependent students only, the expected family contribution may be determined according to the Income Tax System. This is calculated as an amount equal to the sum of (i) the income tax paid by the parents of the student, (ii) 5 percent of the parents' net assets in excess of $12,500, or $25,000 if such assets include farm or business assets, except that no more than $12,500 may be deducted from non-farm and non-business assets, and

(iii) any amount the student is reasonably able to contribute.

(d) The Commissioner will approve any other need analysis system or method of calculation which produces an expected family contribution reasonably comparable to a system described in paragraph (c) of this section.

(20 U.S.C. 1070c-2.)

§ 192.9 Maintenance of effort.

The amount of funds expended by the State for the non-Federal portion of awards made under this program for each fiscal year shall represent an additional expenditure for that year by that State over the amounts, if any, expended by the State for grants to all students attending institutions of higher education during the second fiscal year preceding the fiscal year in which the State initially received funds under this program.

(20 U.S.C. 1070c-2(b)(4).)

§ 192.10 Use of funds.

(a) Funds paid to a State under this program may be used by that State only to pay 50 percent of the amount of individual student grants made under this program.

192.3

Allotment and reallotment.

192.4 State program requirements.
192.5 State applications.
192.6 Student eligibility.

192.7 State standards for determining substantial financial need.

192.8 Approval of State criteria for determining expected family contribution. 192.9 Maintenance of effort. 192.10 Use of funds.

192.11 Disapproval of State applications. 192.12 General provisions regulation.

AUTHORITY: Sections 415A-415D of Title IV of the Higher Education Act of 1965 as amended by section 131(b)(1) 86 Stat. 255258 (20 U.S.C. 1070c-1070c-3), unless otherwise noted.

SOURCE: 39 FR 19213, May 31, 1974, unless otherwise noted.

§ 192.1 Purpose.

The purpose of this part is to make incentive grants available to the States to assist them in providing grants to eligible students with substantial financial need to enable such students to attend or continue to attend institutions of higher education. States may develop new student grant programs, or may expand existing ones by enlarging the class of eligible grant recipients and/or by increasing the size of the grants previously awarded. (20 U.S.C. 1070c)

§ 192.2 Definitions.

"Academic year" means a period of time, usually eight (8) or nine (9) months, during which a full-time student would normally be expected to complete the equivalent of two semesters, two trimesters, three quarters or 900 clock hours of instruction.

"Act" means Title IV, Part A, Subpart 3 of the Higher Education Act of 1965, as amended (20 U.S.C. 1070c1070c-3).

tracts to public or private agencies, organizations, groups, or individuals, to promote the widespread installation in public and private nonprofit elementary and secondary schools, early childhood education programs and education programs for adults who do not have a certificate of graduation from a school providing secondary education and who have not achieved an equivalent level of education, of rigorously evaluated, exemplary educational programs, products, or practices already developed with Federal support. (References hereinafter to "schools" shall include public and private nonprofit schools and programs providing education at these levels.) The program will be designed to acquaint schools throughout the Nation with exemplary, Federally funded programs and, if the schools decide to adopt these programs, to assist them in doing so through the provision of information, technical assistance, and training.

§ 193.2 Definitions.

The following definitions shall apply to the terms used in this Part: (a) "Joint Dissemination Review Panel" or "JDRP" refers to the panel of that name within the Education Division of the Department of Health, Education, and Welfare, and composed of employees of the Office of Education, the National Institute of Education, and the Office of the Assistant Secretary for Education, which reviews educational programs, products, and practices submitted to it by employees of the Education Division for effectiveness and approves them for national dissemination.

(20 U.S.C. 1221b, 1221c, 1221e.)

(b) "Local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary

schools. Such term also includes any other public institution or agency having administrative control and direction of a public elementary or secondary school.

(20 U.S.C. 881(f).)

(c) "State" means in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands. (20 U.S.C. 881(j).)

§ 193.3 Award procedures.

Awards under this part shall be in the form of competitive contracts and shall be governed by the applicable provisions of Federal and Department procurement regulations contained in 41 CFR Chapters 1 and 3.

§§ 193.4-193.10 [Reserved]

Subpart B-Developer-Demonstrator Projects

§ 193.11 Eligibility for awards.

(a) A proposal for a Developer-Demonstrator project may be submitted by any public or private agency, organization, group, or individual that has developed, with Federal support, an exemplary educational program, product, or practice which has been previously approved for dissemination by the Joint Dissemination Review Panel (JDRP).

(b) If the agency which developed the program approved by the JDRP does not apply for a Developer-Demonstrator Project, another agency, organization, group or individual may apply for a Developer-Demonstrator Project award for the JDRP approved program, if the program continues to be operated at the original site and is available for potential adopter visitation and observation, and if the staff which will perform the project activities is composed substantially of staff members who originally developed and operated the project.

§ 193.12 Project activities.

A Developer-Demonstrator Project contract will be awarded for the pur

pose of carrying out the following activities:

(a) Disseminating information on a nationwide basis, in conjunction with recipients of Facilitator Awards under Subpart C, about the exemplary educational program previously approved by the JDRP;

(b) Developing materials about the approved program to be used by recipients of Facilitator contracts under Subpart C, and local educational agencies, and schools before a local educational agency or school decides to adopt the approved program;

(c) Refining, producing, and packaging instructional, management, and training materials related to the approved program for use with local educational agencies and schools after they have decided to adopt the program;

(d) Providing training and technical assistance to local educational agencies and schools which decide to adopt the approved program in planning for, initiating, and carrying out the program;

(e) Participating in workshops and meetings arranged for by the Commissioner to share information among Network contractors and provide technical assistance to them; and

(f) Evaluating the effectiveness of the diffusion and adoption process including evaluating the data received from the adopter on the effectiveness of program installation.

(20 U.S.C. 1231a; Pub. L. 94-439 (1976); H.R. Rep. No. 1129 at 67 (1976).)

§ 193.13 Proposal requirements.

A proposal for a Developer-Demonstrator Contract award under this subpart must meet the following requirements, in addition to such other requirements as may be set forth in applicable contract documents. The proposal must:

(a) Identify and describe the specific program, product, or practice to be disseminated and document that the program, product, or practice was developed with Federal support and has been approved for dissemination by the Joint Dissemination Review Panel; (b) Provide for the carrying out of all of the project activities described in § 193.12 and describe the strategies to

be used in carrying out these activities;

(c) Set forth a management and an evaluation plan for the project;

(d) Document that the program, product, or practice remains in current use at the site at which it was developed and explain the manner and nature of the current use;

(e) Provide for quarterly reports of such data as is required to measure progress during the project, and a final report due ninety days after the completion of the project, including in the final report recommendations for improving future activities.

(f) Document, if the offeror is other than the original developer of the JDRP approved program, that the program will continue to operate at the original site and be available for visitation by potential adopters and that staff members who originally developed and operated the JDRP approved program will provide training and technical assistance to potential adopters and will participate in other program activities.

§ 193.14 Funding criteria.

In evaluating proposals for Developer-Demonstrator Projects, the Commissioner will apply the following criteria:

(a) High quality. (17 points). The extent the proposed project is designed to achieve high quality (beyond meeting minimum requirements) with respect to each of the project activities described in § 193.12;

(b) Management. (13 points). The quality of the management and evaluation plans described in the proposal;

(c) Access to developer site. (9 points). The extent the proposal provides for access of potential adopters who may wish to visit the ongoing project at the original site and, at the option of the contract recipient, at any additional adopter site in which the program meets the basic specifications of the program at the original site;

(d) Personnel. (20 points). Adequacy of educational background and experience of proposed staff members to perform the requirements specified in the RFP including items such as: educational training, experience in the development and operation of a JDRP

approved program, and related education and experience in dissemination and staff training.

(e) Facilities and resources. (9 points). Adequacy of facilities and other resources;

(f) Innovative strategies. (9 points). The extent the proposal provides for innovative dissemination strategies which may be worthy of replication by other Network projects; and

(g) Cost effectiveness. (9 points). The cost effectiveness of the project with respect to the number of States, schools, and students to be served.

§ 193.15 Allowable costs.

Allowable costs under awards pursuant to this part will be determined in accordance with the cost principles described in 41 CFR Parts 1-15, and may include the costs of employing a small staff to carry out the activities described in § 193.12.

§§ 193.16-193.20 [Reserved]

Subpart C-Facilitator Projects

§ 193.21 Eligibility for awards.

A proposal for a Facilitator Project may be submitted by a public or private agency, organization, group or individual located in the State or region to be served.

§ 193.22 Project activities.

A Facilitator Project contract will be awarded for carrying out the following activities directed to local educational agencies and schools in the State or combination of adjoining States to be served under the project:

(a) Informing local educational agencies and schools about exemplary programs in the National Diffusion Network (i.e., those programs which have been approved for diffusion by the Education Division's Joint Dissemination Review Panel);

(b) Assisting local educational agencies and schools in determining the appropriateness of National Diffusion Network programs for their schools in terms of their assessed needs;

(c) Arranging for potential adopters to visit Demonstrator sites when appropriate;