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2.7 One-Stop Operators (OSOs)

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Chapter 2.7.1 Resources

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Chapter 2.7.2 Resources

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Chapter 2.7.3 Resources

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Chapter 2.7.5 Resources

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2.7.1 Procurement of the One-Stop Operator(s)

Effective date: October 1, 2020

The local WDB, with the agreement of the Chief Elected Official (CEO), must competitively procure one-stop operator(s) for its Job Center(s) or One-Stop Delivery System at least once every four years.1 Procurement activities must be compliant with local procurement policies and procedures and the principles of competitive procurement in the Uniform Guidance parts 2 CFR §§ 200.318 through 200.326.2 The competitive procurement process for the OSO must be documented in writing and must:

  • explain the nature of the competitive process;
  • describe how market research, requests for information, and cost and price analysis were conducted as part of the procurement preparation; and
  • clearly articulate the role of the OSO.3

Consistent with Uniform Guidance, procurement methods may include:

  • procurement by sealed bids;
  • procurement by competitive proposals; or
  • procurement by sole source, only if determined necessary in accordance with Uniform Guidance and the WIOA Titles I-A and I-B Policy & Procedure Manual.4

The procurement process must clearly identify a scope of work and budget for the OSO function. The budget must include a sufficient amount of funding to account for staffing the required functions outlined in the scope of work; at minimum the budget must include at least $3500.5 The cost of the OSO contract may be cost-shared among one-stop partners through the One-Stop Delivery System Memorandum of Understanding (MOU) local negotiation process.

The local WDB may procure a single OSO to operate one or more Job Centers within the local area, or multiple OSOs to operate specific job centers within the local area.6 DWD-DET strongly encourages the procurement of a single OSO in each local area or planning region. Identifying a single OSO in each local area allows the local WDB to streamline its contracting and oversight responsibilities, while ensuring consistent integrated service delivery throughout its various locations among all required and additional one-stop partners.


2.7.2 Eligible Entities

Effective date: October 1, 2020

To be eligible to receive funds to operate a Job Center, an entity (which may be a consortium of entities) must:

  • be selected as a one-stop operator through a competitive process;
  • be an entity (public, private, or nonprofit)1 of demonstrated effectiveness, located in the local area, which may include:
    • an institution of higher education;
    • a nontraditional public secondary school such as a night school, adult school, or an area career and technical education school;
    • a community-based organization, nonprofit organization, or workforce intermediary;
    • a private for-profit entity;
    • a government agency;
    • an Employment Service State agency established under the Wagner-Peyser Act;
    • Indian Tribes, tribal organizations, Alaska Native entities, Indian-controlled organizations serving Indians, or Native Hawaiian organizations (collectively referred to herein as "Indian Tribes");
    • a local WDB, with the approval of the CEO and the Governor;2 or
    • another interested organization or entity, which is capable of carrying out the duties of the one-stop operator and may include a local chamber of commerce or other business organization, or a labor organization.3

Elementary schools and secondary schools are not eligible for designation or certification as one-stop operators, except nontraditional public secondary schools and career and technical education schools.4

Local WDBs as One-Stop Operators

A local WDB may submit a proposal to be the one-stop operator in its own local area. In cases where the local WDB wishes to compete for an OSO contract, the local WDB cannot be involved in the development or evaluation of the competitive procurement process.5 In these cases, the local WDB may contract with an outside entity, for example another local WDB or directly with DWD, to manage the procurement cycle.

If the local WDB is selected as the OSO for the local area, then it must contract with another entity to perform the required monitoring and oversight functions of the OSO contract.

The selection of the local WDB as the OSO for the local area must be authorized, in writing, by both the Chief Elected Official (CEO) and the Governor, or the Governor's authorized designee.6 An official request must be submitted in writing to the CEO and to the assigned DWD-DET Local Program Liaison by the WDB Chairperson prior to the execution of the OSO contract.7


2.7.3 Functions of the OSO

Effective date: October 1, 2020

Each OSO must coordinate the service delivery of required one-stop partners and service providers to ensure meaningful access to all programs through the one-stop delivery system.1

Local WDBs may establish additional roles for the OSO, including, but not limited to:

  • coordinating service providers within the Job Center and across the One-Stop Delivery System;
  • being the primary provider of services within the Job Center;
  • providing some of the services within the Job Center;
  • coordinating service delivery in a multi-center area, which may include affiliate job centers;
  • acting as the Job Center Complaint Coordinator;
  • performing other designated functions related to Equal Opportunity and Civil Rights Compliance; or
  • other allowable functions as determined by the local WDB.2

OSO functions must be clearly delineated in the contract agreement between the WDB and the contracted entity and must be adequately funded.

The OSO must not:

  • convene system stakeholders to assist in the development of the local plan;
  • prepare and submit local plans;
  • be responsible for oversight of itself;
  • manage or significantly participate in the competitive selection process for the OSO;
  • select or terminate OSOs, or providers of career and/or youth services;
  • negotiate local performance accountability measures; nor
  • develop and submit budgets for activities of the local WDB.3

OSOs must disclose to the local WDB, in writing, any potential conflicts of interest arising from the relationships of the operators with particular training service providers or other service providers.4

OSOs must not establish practices that create disincentives to providing services to individuals with barriers to employment who may require longer-term services, such as intensive employment, training, and education services.5

OSOs must comply with federal regulations and procurement policies relating to the calculation and use of profits.6


2.7.4 OSOs Serving Multiple Roles

Effective date: June 1, 2021

Any entity serving as an OSO that also serves a different role within the one-stop delivery system may perform some or all of these functions when it is acting in its other role if it has established sufficient firewalls and conflict of interest policies and procedures in accordance with 20 CFR § 679.430.1 Any organization that has been selected to perform more than one of these functions must develop a written agreement with the local WDB and CEO that clearly describes how that organization and the local WDB will ensure that appropriate firewalls are in place to minimize fiscal risk and prevent a conflict of interest or the appearance of a conflict of interest.2 the conflict of interest agreement may be part of the OSO agreement or a separate agreement.

An OSO can be a service provider, but there must be appropriate firewalls in place regarding the competition and subsequent oversight, monitoring, and evaluation of performance of the service provider.

The OSO cannot develop, manage, or conduct the competition of a service provider in which it intends to compete.

There must also be firewalls and internal controls within the operator-service provider entity.

In cases where the local WDB is selected as the OSO, appropriate firewalls must be established to distinguish between its role as the local WDB and its role as the OSO. These firewalls should be clearly defined in the written request for authorization described in Section 2.7.2.1.


2.7.5 Monitoring & Oversight of the OSO

Effective date: October 1, 2020

The local WDB must develop a written policy and procedure regarding oversight, monitoring, and evaluation of performance of the OSO. At minimum, this policy must ensure that the following are reviewed annually:

  • Performance of each contractually required OSO function; and
  • OSO expenditures, to ensure they are within budget and are reasonable, necessary, and allowable in accordance with the Uniform Guidance.

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