The Designation Renewal System (DRS) holds Head Start agencies accountable for delivering high-quality and comprehensive services to the children and families they serve and meeting program and financial requirements. The DRS establishes seven conditions to determine whether programs qualify for continued Head Start funding for five years without competing for those funds with other local agencies. Open competitions are held in communities in which a program meets one or more specified conditions. In such cases, interested agencies may apply to provide Head Start services in that area through a notice of funding opportunity (NOFO). Agencies that do not meet one of the seven DRS conditions become eligible to receive a new five-year grant noncompetitively. The DRS was established in 2011 and revised in 2020.