PUBLIC LAW 102-367—SEPT. 7, 1992 106 STAT. 1035 (1) by inserting ", (in accordance with guidelines established by the Secretary)" in the first sentence after "demonstrated performance"; and (2) by adding after the 1st sentence the following: "In addition, consideration shall be given to demonstrated performance in making avsdlable appropriate supportive services, including child care.". (b) ADDITIONAL REQUIREMENTS FOR SELECTION.—Section 107 of the Act (29 U.S.C. 1517) is amended by adding at the end the following new subsection: "(e) The selection of service providers shall be made on a competitive basis to the extent practicable, and shall include— "(1) a determination of the ability of the service provider to meet program design specifications established by the administrative entity that take into account the purposes of the Act and the goals established in the Governor's coordination and special services plan; and "(2) documentation of compliance with procurement standards established by the Governor under section 164, including the reasons for selection.". SEC. 117. LIMITATION ON CERTAIN COSTS. (a) APPLICATION OF COST LIMITATIONS.— Section 108(a) of the Act (29 U.S.C. 1518(a)) is amended to read as follows: "(a) Except as provided in subparagraph (A) or (B) of section 141(d)(3), funds expended under this Act shall be charged to the appropriate cost categories.". (b) COST CATEGORIES AND LIMITATIONS.— Section 108(b) of the Act (29 U.S.C. 1518(b)) is amended to read as follows: "(b)(1) The cost limitations contained in this subsection shall apply separately to the funds allocated for programs under part A of title II, and to the funds allocated for programs under part C of such title. "(2) Funds expended under parts A and C of title II shall be charged to one of the following categories: "(A) Administration. "(B) Training-related and supportive services. "(C) Direct training services. "(3) The Secretary shall, consistent with sections 204(b) and Regulations. 264(c), define by regulation the cost categories specified in paragraph (2). "(4) Of the funds allocated to a service delivery area for any program year under parts A or C of title II— "(A) not more than 20 percent shall be expended for administration; and "(B) not less than 50 percent shall be expended for direct training services. "(5) Each service delivery area shall ensure that for all services provided to participants through contracts, grants, or other agreements with a service provider, such contract, grant, or agreement shall include appropriate amounts necessary for administration and supportive services. "(6) For purposes of paragraph (4), the term 'allocated' means allocated for a program year, as adjusted for reallocations and reallotments under section 109 and for transfers of funds under sections 206, 256, and 266.".