Department of Labor awards $8.87M contract to Manhattan Strategy Group for apprenticeship program expansion

Contract Overview

Contract Amount: $8,865,097 ($8.9M)

Contractor: THE Manhattan Strategy Group LLC

Awarding Agency: Department of Labor

Start Date: 2021-12-14

End Date: 2025-12-15

Contract Duration: 1,462 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INDUSTRY INTERMEDIARIES TO LAUNCH, PROMOTE, AND EXPAND MULTI-EMPLOYER REGISTERED APPRENTICESHIP MODELS.

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 $8.9 million to THE MANHATTAN STRATEGY GROUP LLC for work described as: INDUSTRY INTERMEDIARIES TO LAUNCH, PROMOTE, AND EXPAND MULTI-EMPLOYER REGISTERED APPRENTICESHIP MODELS. Key points: 1. Contract aims to expand multi-employer registered apprenticeship models through industry intermediaries. 2. Focus on launching and promoting apprenticeship programs suggests a strategic investment in workforce development. 3. The contract's duration of over two years indicates a commitment to sustained program support. 4. The use of a Time and Materials pricing structure warrants scrutiny for cost control. 5. The award was made under full and open competition, suggesting a robust bidding process. 6. The geographic focus on the District of Columbia may limit broader national impact initially.

Value Assessment

Rating: fair

The contract value of $8.87 million over two years for apprenticeship program expansion appears reasonable given the scope of developing and promoting multi-employer models. However, without specific benchmarks for similar intermediary support contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Time and Materials pricing structure, while flexible, can sometimes lead to higher costs if not closely managed, especially compared to fixed-price contracts for well-defined deliverables. Further analysis of the contractor's proposed labor rates and the efficiency of their proposed activities would be needed for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. With 10 bids received, the competition level appears healthy, suggesting that the Department of Labor sought a competitive price and a range of innovative approaches. This level of competition generally benefits the government by driving down prices and encouraging higher quality proposals.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution and potentially better program outcomes than a sole-source award.

Public Impact

The primary beneficiaries are expected to be employers seeking to establish or expand registered apprenticeship programs, and individuals seeking skilled job training through these apprenticeships. The services delivered include the promotion, launch, and expansion of multi-employer registered apprenticeship models. The contract is geographically focused on the District of Columbia, implying initial impact within this region. Workforce implications include the potential creation of new skilled job pathways and the development of a more robust apprenticeship ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure introduces potential for cost overruns if not meticulously monitored and controlled.
The contract's success is heavily reliant on the effectiveness of 'industry intermediaries,' whose performance and capacity may vary.
The geographic limitation to Washington D.C. might restrict the scalability and broader impact of the apprenticeship models developed.
The specific metrics for 'launching, promoting, and expanding' apprenticeship models are not detailed, making performance evaluation potentially subjective.

Positive Signals

The award was made through full and open competition, indicating a thorough vetting of potential contractors and a competitive pricing environment.
The contract duration of over two years allows for sustained effort in developing and implementing apprenticeship initiatives.
The focus on multi-employer registered apprenticeship models aligns with federal goals to expand skilled workforce training opportunities.
The contractor, The Manhattan Strategy Group LLC, is tasked with a critical mission of workforce development, suggesting alignment with agency priorities.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on workforce development and training program management. The market for such services includes a variety of consulting firms, non-profits, and industry associations that specialize in apprenticeship and workforce solutions. Government spending in this area is often driven by initiatives to address skills gaps and promote economic opportunity. Comparable spending benchmarks would typically involve analyzing other contracts for similar workforce development program management or intermediary support services across various federal agencies.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if The Manhattan Strategy Group LLC chooses to engage them. Without explicit subcontracting goals or reporting, it is difficult to assess the direct benefit to the small business ecosystem from this particular award. However, the expansion of apprenticeship programs could indirectly benefit small businesses by providing them with a pipeline of skilled workers.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures would be defined in the contract's statement of work, performance standards, and reporting requirements. Transparency is facilitated by the contract award being publicly available. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Labor Apprenticeship Programs
Workforce Innovation and Opportunity Act (WIOA) Initiatives
Registered Apprenticeship Program Expansion Grants
Industry Sector Partnerships for Training

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Reliance on the effectiveness and capacity of third-party 'industry intermediaries'.
Limited initial geographic scope may hinder rapid national scalability.
Performance metrics for program launch and expansion are not explicitly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $8.9 million to THE MANHATTAN STRATEGY GROUP LLC. INDUSTRY INTERMEDIARIES TO LAUNCH, PROMOTE, AND EXPAND MULTI-EMPLOYER REGISTERED APPRENTICESHIP MODELS.

Who is the contractor on this award?

The obligated recipient is THE MANHATTAN STRATEGY GROUP 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 $8.9 million.

What is the period of performance?

Start: 2021-12-14. End: 2025-12-15.

What is the track record of The Manhattan Strategy Group LLC in managing federal contracts, particularly those related to workforce development?

A review of federal contract databases indicates that The Manhattan Strategy Group LLC has a history of receiving federal awards, primarily from agencies like the Department of Labor. While specific details on past performance metrics for workforce development contracts are not immediately available in this summary, their repeated selection suggests a level of competence and satisfaction with their services. Further investigation into past performance reviews, contract close-outs, and any documented successes or challenges on similar projects would provide a more comprehensive understanding of their capabilities and reliability in managing complex workforce initiatives.

How does the awarded amount of $8.87 million compare to similar federal contracts for apprenticeship program promotion and expansion?

Comparing the $8.87 million award to similar contracts requires access to a broader dataset of federal procurements for apprenticeship program intermediaries. However, based on general knowledge of federal workforce development spending, this amount appears to be a significant investment for a single contract focused on program expansion within a specific region. Contracts of this nature can range widely depending on the scope, duration, and geographic reach. Larger, multi-year, national-level initiatives might command higher figures, while smaller, localized efforts would be less. The value here suggests a substantial effort to build or enhance apprenticeship models through dedicated intermediary support.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how will they be monitored?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, typical KPIs for such a contract would likely include the number of new multi-employer apprenticeship models launched, the number of employers participating, the number of apprentices enrolled, completion rates of apprentices, and potentially job placement rates post-apprenticeship. Monitoring would generally involve regular progress reports from The Manhattan Strategy Group LLC, site visits, data collection on apprenticeship outcomes, and performance reviews conducted by the Department of Labor contracting officer's representative (COR).

What is the potential risk associated with the Time and Materials (T&M) contract type for this apprenticeship initiative?

The primary risk associated with a Time and Materials (T&M) contract type for this apprenticeship initiative is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials expended. If the scope of work is not precisely defined, or if project management is weak, the contractor could incur higher labor hours or material costs than anticipated, leading to the government paying more than initially budgeted. Effective oversight, detailed task orders, and vigilant monitoring of labor rates and hours are crucial to mitigate this risk and ensure the government receives good value.

What is the anticipated impact of this contract on the overall federal investment in apprenticeship programs?

This $8.87 million contract represents a focused investment by the Department of Labor to strengthen the apprenticeship ecosystem by supporting industry intermediaries. It signals a strategic approach to scaling successful apprenticeship models rather than solely relying on direct grants to employers or training providers. The success of this contract could influence future federal investments by demonstrating the efficacy of intermediary-based strategies in expanding registered apprenticeships, potentially leading to increased funding for similar approaches in subsequent budget cycles or across different federal agencies involved in workforce development.

How does the geographic focus on Washington D.C. affect the potential scalability and replicability of the apprenticeship models developed?

The current geographic focus on Washington D.C. allows for concentrated effort and potentially easier management and oversight within a defined area. However, it also limits the immediate scalability and replicability of the developed apprenticeship models on a national level. While the principles and structures created may be designed for broader application, testing and refining them within a single metropolitan area might not fully capture the diverse challenges and opportunities present in different regions across the country. Successful outcomes in D.C. would need to be documented thoroughly to serve as a blueprint for expansion elsewhere.

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

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 708 3RD AVE 5TH FL, NEW YORK, NY, 10017

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,865,097

Exercised Options: $8,865,097

Current Obligation: $8,865,097

Actual Outlays: $8,806,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline