Youth Crime Watch of America, a private organization, appeals an agency action which eliminates its application from consideration for discretionary federal funding. The RFP (Request for Proposal) requires private local applicants to submit evidence that a request for local funding has been denied. Youth Crime Watch contends that as a private nonlocal agency, it was not obligated by law to present proof, along with its application, that a request for local funding had been denied. An examination of the eligibility section of the RFP shows clearly that local private agencies must present evidence of a denial of local funding. However, nowhere in the RFP’s eligibility section is there a requirement for a private nonlocal agency to submit evidence that a request for local funding has been denied.1

It is uncontroverted that Youth Crime Watch is not a local agency. Therefore, it is not obligated by the RFP or federal statute to prove, as a condition for applying for federal funds, that it has been denied local funding. For that reason, HRS’s action in eliminating Youth Crime Watch from any consideration for federal funding was arbitrary. See 6 C.J.S. Arbitrary n. 68 (1975) (arbitrary action is one which is decisive but not governed by fixed rule or standard). Our determination on the question presented is not an opinion on the merits of the appellant’s application.

Reversed and remanded.