Labor Department Awards $6M Apprenticeship Academy Contract to Safal Partners LLC

Contract Overview

Contract Amount: $6,012,886 ($6.0M)

Contractor: Safal Partners LLC

Awarding Agency: Department of Labor

Start Date: 2023-06-14

End Date: 2026-06-14

Contract Duration: 1,096 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REGISTERED APPRENTICESHIP ACADEMY (RAAS)

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 $6.0 million to SAFAL PARTNERS LLC for work described as: REGISTERED APPRENTICESHIP ACADEMY (RAAS) Key points: 1. Contract value of $6.01M over 3 years. 2. Awarded via full and open competition. 3. Potential risk associated with a single definitive contract. 4. Sector is primarily IT/Professional Services for training.

Value Assessment

Rating: fair

The contract value of $6.01M for a 3-year apprenticeship academy seems reasonable given the scope. Benchmarking against similar government-wide training and development contracts would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. The use of a definitive contract, however, means the pricing is fixed for the duration.

Taxpayer Impact: Taxpayer funds are being used for a program aimed at workforce development, which can have long-term economic benefits if successful.

Public Impact

Supports workforce development and skilled labor growth. Potential for increased access to apprenticeship opportunities. Government investment in training infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for scope creep in a multi-year training program.

Positive Signals

Supports a key government initiative (apprenticeships).
Awarded through competitive process.

Sector Analysis

The sector involves professional services and IT, specifically for training and development. Government spending in this area supports federal workforce needs and broader economic development goals.

Small Business Impact

The provided data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the RAAS meets its objectives and delivers value for money. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract.

Related Government Programs

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

Risk Flags

Definitive contract structure limits flexibility.
Potential for performance issues if training quality is not maintained.
Lack of small business participation noted (pending confirmation).
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $6.0 million to SAFAL PARTNERS LLC. REGISTERED APPRENTICESHIP ACADEMY (RAAS)

Who is the contractor on this award?

The obligated recipient is SAFAL PARTNERS 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 $6.0 million.

What is the period of performance?

Start: 2023-06-14. End: 2026-06-14.

What are the key performance indicators (KPIs) for the Registered Apprenticeship Academy and how will success be measured?

Success measurement for the RAAS likely involves tracking the number of apprentices enrolled, completion rates, job placement statistics post-apprenticeship, and employer satisfaction. Specific KPIs should be detailed in the contract's statement of work and performance work statement to ensure accountability and measure the program's effectiveness in developing a skilled workforce.

What is the risk of vendor lock-in or performance issues with Safal Partners LLC over the 3-year contract duration?

The risk of vendor lock-in is moderate given the definitive contract structure. Performance issues could arise if Safal Partners fails to meet training quality standards or enrollment targets. The Department of Labor should have mechanisms for monitoring performance and addressing deficiencies, potentially including contract modifications or termination clauses if necessary.

How does this $6M investment in the RAAS compare to other federal workforce development or apprenticeship initiatives in terms of cost-effectiveness?

A direct cost-effectiveness comparison requires detailed data on outcomes from other initiatives. However, $6M for a comprehensive academy over three years suggests a significant investment. Its effectiveness will depend on its ability to scale, adapt to industry needs, and demonstrably improve employment outcomes for participants compared to alternative training programs.

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: 1605C2-23-Q-00035

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19019 WINDSOR CREST DR, HOUSTON, TX, 77094

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,292,377

Exercised Options: $6,012,886

Current Obligation: $6,012,886

Actual Outlays: $4,851,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline