Net.America Corporation awarded $11.2M contract for Apprenticeship Training services by the Department of Labor

Contract Overview

Contract Amount: $11,225,114 ($11.2M)

Contractor: THE Net.america Corporation

Awarding Agency: Department of Labor

Start Date: 2020-09-28

End Date: 2026-03-27

Contract Duration: 2,006 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NET.AMERICA CONTRACT.

Place of Performance

Location: UPPER MARLBORO, PRINCE GEORGES County, MARYLAND, 20774

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $11.2 million to THE NET.AMERICA CORPORATION for work described as: NET.AMERICA CONTRACT. Key points: 1. Contract value of $11.2M over approximately 6 years suggests a moderate annual spend. 2. Full and open competition indicates a potentially competitive bidding process. 3. Time and Materials contract type may pose cost control risks if not managed closely. 4. The contract supports Apprenticeship Training, a key area for workforce development. 5. The contractor, Net.America Corporation, has a track record with federal agencies. 6. The contract is managed by the Office of the Assistant Secretary for Administration and Management. 7. The contract duration of approximately 6 years allows for sustained service delivery.

Value Assessment

Rating: fair

The contract value of $11.2M over roughly 6 years averages to about $1.87M annually. Without specific benchmarks for similar apprenticeship training services, it's difficult to definitively assess value for money. The Time and Materials pricing structure, while flexible, requires diligent oversight to prevent cost overruns compared to fixed-price contracts. The number of bids received (15) suggests some level of market interest, but the ultimate price paid relative to the services delivered is the key indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 15 bids received. This indicates a robust bidding environment where multiple vendors had the opportunity to compete. A higher number of bidders generally suggests a more competitive landscape, which can lead to better pricing and terms for the government. The agency's decision to use full and open competition implies they sought the widest possible pool of qualified contractors.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down costs and encouraging innovation among contractors vying for the award.

Public Impact

The primary beneficiaries are individuals seeking apprenticeship opportunities, contributing to workforce development. Services delivered include support for apprenticeship training programs, potentially covering administrative, technical, or programmatic aspects. The contract is located in Maryland, suggesting a focus on workforce development within that geographic region. Workforce implications include the potential creation or support of jobs related to apprenticeship program administration and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost escalation if not closely monitored for scope creep and labor hours.
The specific details of the 'Apprenticeship Training' services are not fully elaborated, making it hard to gauge the full scope and potential risks.
The contract duration of nearly 6 years might require periodic re-evaluation to ensure continued alignment with evolving program needs and market conditions.

Positive Signals

Awarded through full and open competition with 15 bids, indicating a healthy market response and potential for competitive pricing.
The contract supports a critical government function: workforce development through apprenticeship programs.
The contractor, Net.America Corporation, has experience with federal contracts, suggesting a degree of familiarity with government processes.

Sector Analysis

The IT sector, specifically NAICS code 611513 (Apprenticeship Training), represents a niche but important area within the broader education and training services market. Federal spending in this sector often supports government initiatives aimed at closing skills gaps and preparing the workforce for in-demand jobs. Comparable spending benchmarks would typically involve analyzing other contracts for similar training and apprenticeship support services across various federal agencies.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to delivery schedules, quality standards, and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics and spending breakdowns may require specific Freedom of Information Act requests.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Apprenticeship Initiatives
Government Training and Education Contracts
NAICS 611513 - Apprenticeship Training

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to ensure contractor efficiency and scope adherence.
Clarity on specific performance metrics and deliverables for measuring program success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.2 million to THE NET.AMERICA CORPORATION. NET.AMERICA CONTRACT.

Who is the contractor on this award?

The obligated recipient is THE NET.AMERICA CORPORATION.

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 $11.2 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-03-27.

What is the track record of The Net.America Corporation with federal contracts, particularly in training and apprenticeship services?

The Net.America Corporation has a history of securing federal contracts. While specific details on their performance in apprenticeship training are not provided in this summary, their ability to win this $11.2M contract suggests they meet the qualifications and competitive requirements of the Department of Labor. Further analysis would involve examining their past performance evaluations (e.g., CPARS), contract history across different agencies, and any specialized certifications or experience relevant to workforce development and apprenticeship programs. Understanding their prior success or challenges in similar roles is crucial for assessing their capability to deliver on this current contract effectively.

How does the $11.2M contract value compare to similar apprenticeship training contracts awarded by the federal government?

The $11.2M contract value, spread over approximately six years, represents an average annual spend of about $1.87M. To benchmark this effectively, one would need to compare it against other federal contracts for apprenticeship training and workforce development services. Factors such as the scope of services (e.g., administrative support, curriculum development, direct training delivery), geographic coverage, and the specific target population would influence pricing. Without access to a database of comparable contracts, it's challenging to definitively state whether this represents a high, low, or average investment. However, the full and open competition with 15 bidders suggests the government sought a competitive market price.

What are the primary risks associated with a Time and Materials (T&M) contract for apprenticeship training?

The primary risk with a Time and Materials (T&M) contract for apprenticeship training is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the cost of materials used. If not managed rigorously, this structure can incentivize longer project durations or higher labor rates than necessary, especially if the scope of work is not clearly defined or if there are issues with contractor efficiency. Effective oversight, detailed tracking of labor hours and materials, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value.

How effective are federal apprenticeship training programs in achieving their stated workforce development goals?

The effectiveness of federal apprenticeship training programs is generally considered high, though outcomes can vary based on program design, industry relevance, and participant engagement. These programs are designed to address critical skills gaps, provide on-the-job training, and lead to sustainable employment. Data from the Department of Labor often shows high completion rates and subsequent employment for apprentices. However, measuring the precise impact of a single contract like this requires specific performance metrics tied to the services delivered, such as the number of individuals trained, successful program completions, and subsequent job placements or wage increases.

What has been the historical spending trend for apprenticeship training services by the Department of Labor?

Historical spending trends for apprenticeship training services by the Department of Labor (DOL) would likely show a consistent commitment to workforce development initiatives. DOL is a primary agency responsible for these programs. Analyzing past fiscal years would reveal fluctuations based on budget allocations, administration priorities, and economic conditions. For instance, periods of high unemployment or shifts in industry demand might correlate with increased investment in training programs. This specific $11.2M contract represents a portion of that broader historical spending, and its duration suggests a sustained need for these services.

What is the significance of the NAICS code 611513 (Apprenticeship Training) in the context of federal contracting?

The NAICS code 611513 specifically identifies 'Apprenticeship Training' as the primary business activity. In federal contracting, this code signals to agencies seeking these services that contractors classified under it possess the relevant expertise. It helps agencies categorize spending, track investments in workforce development, and ensure that contracts are awarded to businesses appropriately equipped for this specialized field. For contractors, it defines their market niche and eligibility for certain set-aside programs if applicable, though this contract was competed broadly.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630DC-20-R-00020

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 16201 TRADE ZONE AVE STE 112, UPPER MARLBORO, MD, 20774

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,225,114

Exercised Options: $11,225,114

Current Obligation: $11,225,114

Actual Outlays: $9,211,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline