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NO.
TRAINING AND EMPLOYMENT 6-21
NOTICE DATE
September 15, 2021
TO: STATE WORKFORCE AGENCIES
FROM: LENITA JACOBS-SIMMONS
Acting Assistant Secretary
SUBJECT: Accessing Unemployment Insurance (UI) Identity Verification and Fraud
Protection (Identity Proofing) Services using the U.S. Department of Labor’s
(Department) Blanket Purchase Agreements (BPA)
1. Purpose. To provide states with instructions on how to access the BPA resources, including
procedures to establish orders against the Department’s BPAs for identity proofing services.
The resources include the State BPA Ordering Guide, Roles and Responsibilities of States,
Funding Attestation Template, and Frequently Asked Questions (FAQ).
2. Action Requested. The Department’s Employment and Training Administration (ETA)
requests that State Workforce Agency Administrators provide information contained in this
Training and Employment Notice (TEN) to appropriate staff.
3. Summary and Background.
a. Summary – The American Rescue Plan Act (ARPA) sets objectives for the use of the
$2.0 billion appropriated to the Secretary of Labor by the Act. These objectives are to
detect and prevent fraud, promote equitable access, and ensure the timely payment of
benefits regarding the unemployment compensation (UC) programs. In support of
these objectives, the Department competitively awarded multiple BPAs to vendors
capable of providing National Institute of Standards and Technology (NIST)-
compliant1, Identity Assurance Level 2 (IAL2) and Authenticator Assurance Level 2
(AAL2) UI applicant/claimant identity proofing services. The Department developed
resources to provide states with procedures to establish orders against the Department-
awarded BPAs.
b. Background – Identity theft is a major concern for UC programs and is a growing
nationwide and worldwide problem. In calendar year 2020, the Federal Trade
Commission received over 1.3 million reports of identity theft.
EMPLOYMENT AND TRAINING ADMINISTRATION
U.S. DEPARTMENT OF LABOR
WASHINGTON, D.C. 20210
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NIST Special Publication (SP) 800-63 provides technical requirements for implementing digital identity services. The
publication includes: an overview of identity frameworks; using authenticators, credentials, and assertions in a digital
system; and a risk-based process to select assurance levels at https://pages.nist.gov/800-63-3/sp800-63-3.html.
The type of identity theft most reported was “Government Documents and Benefits
Fraud”. Since the onset of the Coronavirus Disease 2019 (COVID-19) pandemic, and
with implementation of the ensuing temporary UC benefit programs, the UI program
has become an increased target for international and domestic criminal organizations
perpetrating identity fraud.
As discussed in UIPL Nos. 23-20; 28-20; 28-20, Change 1; 28-20, Change 2; and 22-
21, ETA strongly encourages states to adopt an array of solutions and techniques to
detect and fight fraud, to have robust strategies in place to verify the identity of
individuals applying for unemployment benefits, and to strengthen efforts to recover
overpayments, including fraudulently paid UC. In UIPL Nos. 28-20, Change 2, and
22-21, the Department specifically called out the importance of NIST-compliant
identity proofing and strongly encouraged all states to implement IAL2 and AAL2
identity proofing before claimants start filling out the UI claims applications and when
re-accessing their accounts. IAL2 and AAL2 standards are recommended for UC
programs due to the personally identifiable information (PII) collected from individuals
and employers in processing claims. States are also reminded of the required
administrative procedures when processing claims and determining UI eligibility in
cases where an individual’s identity is questioned, as discussed in UIPL No. 16-21.
On March 11, 2021, ARPA (Public Law (Pub. L.) 117-2) was enacted. Section 9032,
ARPA, creates a new Section 2118 of the Coronavirus Aid, Relief, and Economic
Security (CARES) Act (Pub. L. 116-136) and provides for a $2,000,000,000
appropriation to the Secretary of Labor to detect and prevent fraud, to promote
equitable access, and to ensure timely payment of benefits to eligible workers with
respect to UC programs. ETA is committed to supporting states by providing funding
and investing in the most innovative and successful tools and resources to stay ahead of
fraud schemes, which includes providing states with options to access NIST-compliant
identity proofing and authentication solutions. On June 7, 2021, the Department issued
a Request for Quotation to solicit vendors capable of providing NIST-compliant IAL2
and AAL2 identity proofing services, which included stringent service level, business
performance, and equity requirements. On July 12, 2021, the Department issued
multiple award BPAs to provide a procurement vehicle to meet identity proofing needs.
4. Ordering and Funding. The ARPA UI Identity Proofing BPAs were competitively
awarded through the General Services Administration (GSA) Multiple Award Schedule
(MAS) program in accordance with Federal Acquisition Regulation (FAR) 8.405-3. The
Department-awarded BPAs provide a procurement vehicle to obtain critical identity
proofing services. This vehicle consists of multiple award BPAs intended to streamline the
ordering process for administering UC programs that have identity proofing procurement
needs. The BPAs were awarded to three vendors, referred to as BPA holders. They are:
LexisNexis, V3Gate, and TransUnion.
a. Ordering Identity Proofing Services Using the BPAs. The Department developed
resources to provide states with procedures to establish orders against the BPAs. States
interested in participating in the Department-awarded BPAs can review the State BPA
Ordering Guide, Roles and Responsibilities of States, Funding Attestation Template,
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and the FAQ document available on the ARPA and UC Featured Content of the UI
Community of Practice (CoP) on WorkforceGPS or directly here (a password is
required to access the UI CoP). The requesting state’s representative will work closely
with Department personnel to take the necessary steps to establish orders against the
BPAs. The Department created templates and samples of the required procurement
documents and Department personnel are available to assist states in completing these
documents.
b. Funding to Support Identity Proofing Services. UIPL Nos. 28-20, Change 2, and
22-21, provide states with funding to combat fraud and allow states to use these funds
to procure, implement, and pay reoccurring subscription costs and/or ongoing
maintenance costs for NIST-compliant IAL2 and AAL2 solutions, including when the
state is ordering against the Department’s BPAs as a procurement vehicle to obtain
identity proofing services. States may use the funding provided in the above listed
UIPLs and may use other Federal grant funds available for this purpose to pay for costs
associated with identity proofing services. As part of the process for ordering under the
Department’s BPAs, the Department will review all funding sources proposed by a
state on the Funding Attestation Template to ensure compliance with Federal law, as
applicable.
5. Inquiries. Please direct inquiries to covid-19@dol.gov with a copy to the appropriate ETA
Regional Office.
6. References.
American Rescue Plan Act of 2021 (ARPA), including Title IX, Subtitle A, Crisis
Support for Unemployed Workers (Pub. L. 117-2);
UIPL No. 22-21, Grant Opportunity to Support States with Fraud Detection and
Prevention, Including Identity Verification and Overpayment Recovery Activities, in
All Unemployment Compensation (UC) Programs, issued August 11, 2021,
https://wdr.doleta.gov/directives/corr_doc.cfm?docn=4240;
UIPL No. 16-21, Identity Verification for Unemployment Insurance (UI) Claims,
issued April 13, 2021, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9141;
UIPL No. 14-21, Change 1, State Responsibilities After the Temporary Unemployment
Benefit Programs under the Coronavirus Aid, Relief, and Economic Security (CARES)
Act, as amended, End Due to State Termination of Administration or When the
Programs Expire, issued July 12, 2021,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9502;
UIPL No. 14-21, American Rescue Plan Act of 2021(ARPA) - Key Unemployment
Insurance (UI) Provisions, issued March 15, 2021,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5669;
UIPL No. 28-20, Change 2, Additional Funding to Assist with Strengthening Fraud
Detection and Prevention Efforts and the Recovery of Overpayments in the Pandemic
Unemployment Assistance (PUA) and Pandemic Emergency Unemployment
Compensation (PEUC) Programs, as well as Guidance on Processes for Combatting
Identity Fraud, issued August 11, 2021,
https://wdr.doleta.gov/directives/corr_doc.cfm?docn=7207;
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UIPL No. 28-20, Change 1, Additional Funding for Identity Verification or
Verification of Pandemic Unemployment Assistance (PUA) Claimants and Funding to
Assist with Efforts to Prevent and Detect Fraud and Identity Theft as well as Recover
Fraud Overpayments in the PUA and Pandemic Emergency Unemployment
Compensation (PEUC) Programs, issued January 15, 2021,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9897;
UIPL No. 28-20, Addressing Fraud in the Unemployment Insurance (UI) System and
Providing States with Funding to Assist with Efforts to Prevent and Detect Fraud and
Identity Theft and Recover Fraud Overpayments in the Pandemic Unemployment
Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC)
Programs, issued August 31, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8044; and
UIPL No. 23-20, Program Integrity for the Unemployment Insurance (UI) Program
and the UI Programs Authorized by the Coronavirus Aid, Relief, and Economic
Security (CARES) Act of 2020 - Federal Pandemic Unemployment Compensation
(FPUC), Pandemic Unemployment Assistance (PUA), and Pandemic Emergency
Unemployment Compensation (PEUC) Programs, issued May 11, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4621.
7. Attachment(s). Not Applicable.
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