DOL's $6.16M Apprenticeship Expansion Contract Awarded to Arbor E & T LLC

Contract Overview

Contract Amount: $6,160,278 ($6.2M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2020-09-28

End Date: 2024-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPANSION OF REGISTERED APPRENTICESHIP THROUGH INDUSTRY INTERMEDIARY 2020

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40222

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $6.2 million to ARBOR E & T LLC for work described as: EXPANSION OF REGISTERED APPRENTICESHIP THROUGH INDUSTRY INTERMEDIARY 2020 Key points: 1. The contract aims to expand registered apprenticeships, a key workforce development initiative. 2. Arbor E & T LLC secured the award through full and open competition. 3. The contract's time and materials pricing structure warrants scrutiny for cost control. 4. This spending supports the Department of Labor's mission to foster skilled labor.

Value Assessment

Rating: fair

The contract is a time and materials type, which can lead to cost overruns if not managed closely. Benchmarking against similar apprenticeship program contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a competitive bidding process. However, the time and materials nature of the contract may limit price discovery and could lead to higher costs than a fixed-price contract.

Taxpayer Impact: Taxpayer funds are being used to expand apprenticeship programs, which can have long-term benefits for workforce development and economic growth. However, the T&M structure requires careful oversight to ensure value for money.

Public Impact

Expands access to skilled trades and career pathways for individuals. Addresses potential labor shortages in key industries through training. Supports the Department of Labor's strategic goals for workforce development. Potential for job creation and economic stimulus through increased employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Contract duration of nearly 4 years
Lack of specific performance metrics in provided data

Positive Signals

Full and open competition
Supports critical workforce development goals
Potential for long-term economic benefits

Sector Analysis

This contract falls within the professional services sector, specifically focusing on training and development. Spending benchmarks for apprenticeship programs can vary widely based on industry, duration, and scope.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or partners in this contract award. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Robust oversight will be crucial, particularly given the time and materials pricing, to ensure funds are used effectively and efficiently.

Related Government Programs

Apprenticeship Training
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to T&M pricing
Contract duration may exceed immediate needs
Lack of specific performance metrics
Limited visibility into subcontractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $6.2 million to ARBOR E & T LLC. EXPANSION OF REGISTERED APPRENTICESHIP THROUGH INDUSTRY INTERMEDIARY 2020

Who is the contractor on this award?

The obligated recipient is ARBOR E & T LLC.

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 $6.2 million.

What is the period of performance?

Start: 2020-09-28. End: 2024-09-27.

What is the expected number of apprentices to be trained under this contract and what are the key performance indicators for success?

The provided data does not specify the target number of apprentices or detailed performance indicators. Understanding these metrics is crucial for evaluating the contract's effectiveness and ensuring it meets its objectives for expanding registered apprenticeships and developing a skilled workforce.

How will the Department of Labor ensure cost control and prevent potential overruns with the Time and Materials (T&M) pricing structure?

Effective cost control under a T&M contract relies on stringent oversight, detailed tracking of labor hours and material costs, and clear limitations on billable rates. The agency should establish baseline estimates, conduct regular audits, and require justification for all expenditures to mitigate risks of overspending.

What is the long-term strategy for sustainability and potential follow-on funding for the apprenticeship programs initiated under this contract?

The long-term sustainability of these apprenticeship programs beyond the contract's end date is not detailed. A successful strategy would involve transitioning program management to industry partners or other sustainable funding models, ensuring continued workforce development benefits after the initial federal investment concludes.

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: 805 N WHITTINGTON PKWY, LOUISVILLE, KY, 40222

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

Financial Breakdown

Contract Ceiling: $6,167,935

Exercised Options: $6,167,935

Current Obligation: $6,160,278

Actual Outlays: $5,499,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline