Department of Labor Awards $71.2M for Job Corps Facilities Project Management

Contract Overview

Contract Amount: $71,213,065 ($71.2M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Labor

Start Date: 2024-01-16

End Date: 2027-01-15

Contract Duration: 1,095 days

Daily Burn Rate: $65.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: PROJECT MANAGEMENT AND OVERSIGHT SUPPORT SERVICES FOR THE JOB CORPS FACILITIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $71.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: PROJECT MANAGEMENT AND OVERSIGHT SUPPORT SERVICES FOR THE JOB CORPS FACILITIES Key points: 1. The contract focuses on essential project management and oversight for Job Corps facilities. 2. Parsons Government Services Inc. is the incumbent contractor. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful monitoring. 4. The sector is Engineering Services, supporting critical infrastructure operations.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for flexibility but necessitates robust oversight to ensure costs remain reasonable and aligned with performance objectives. Benchmarking against similar project management contracts is difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best value. However, the Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.

Public Impact

Ensures continued operation and maintenance of Job Corps facilities nationwide. Supports critical workforce development programs by maintaining essential infrastructure. Potential for job creation within the engineering and project management fields. Impacts the efficiency and effectiveness of federal job training initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure requires strong oversight.
Potential for scope creep in project management services.

Positive Signals

Full and open competition utilized.
Supports a vital federal workforce development program.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for managing and maintaining federal facilities. Spending benchmarks for project management support services can vary widely based on the complexity and scale of the facilities involved.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.

Oversight & Accountability

The contract includes project management and oversight support, implying internal government oversight is a key component. The Cost Plus Award Fee structure necessitates rigorous performance monitoring and financial accountability from the contractor.

Related Government Programs

Engineering Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Cost Plus Award Fee structure requires strong oversight.
Potential for contractor performance issues impacting facility operations.
Dependency on a single contractor for critical support services.
Lack of specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $71.2 million to PARSONS GOVERNMENT SERVICES INC.. PROJECT MANAGEMENT AND OVERSIGHT SUPPORT SERVICES FOR THE JOB CORPS FACILITIES

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $71.2 million.

What is the period of performance?

Start: 2024-01-16. End: 2027-01-15.

How does the awarded amount compare to historical spending on similar Job Corps facilities management contracts?

Without historical data specific to Job Corps facilities project management and oversight services, a direct comparison is challenging. However, $71.2 million over three years represents a significant investment, suggesting a substantial scope of work or complex facility needs. Benchmarking against similar large-scale federal facility management contracts would provide better context for value.

What are the key performance indicators (KPIs) tied to the award fee structure, and how will they be monitored?

The specific KPIs for the Cost Plus Award Fee are not detailed in the provided data. Effective monitoring requires clearly defined, measurable, achievable, relevant, and time-bound (SMART) objectives related to project timelines, budget adherence, quality of work, and stakeholder satisfaction. The Department of Labor's Office of the Assistant Secretary for Administration and Management must have robust processes to track these KPIs.

What is the potential risk of cost overruns given the Cost Plus Award Fee contract type?

Cost Plus Award Fee contracts carry an inherent risk of cost overruns if not managed diligently. The 'cost plus' component allows the contractor to recover allowable costs, while the 'award fee' incentivizes performance. Robust government oversight, clear performance standards, and strict adherence to the contract's scope are essential to mitigate this risk and ensure taxpayer funds are used efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605AE-23-Q-00001

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $122,101,560

Exercised Options: $71,213,065

Current Obligation: $71,213,065

Actual Outlays: $44,089,273

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,172,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU127

IDV Type: IDC

Timeline