Department of Labor awards $23.3M contract for Job Corps transportation trades training to Transportation Communications Union/IAM

Contract Overview

Contract Amount: $23,296,864 ($23.3M)

Contractor: Transportation Communications Union/Iam

Awarding Agency: Department of Labor

Start Date: 2023-07-31

End Date: 2026-07-31

Contract Duration: 1,096 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: JOB CORPS NATIONAL TRAINING CONTRACT (NTC) TRANSPORTATION TRADES 2023

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $23.3 million to TRANSPORTATION COMMUNICATIONS UNION/IAM for work described as: JOB CORPS NATIONAL TRAINING CONTRACT (NTC) TRANSPORTATION TRADES 2023 Key points: 1. Contract aims to enhance vocational training in transportation trades for Job Corps participants. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The fixed-price incentive contract type suggests a focus on performance and cost control. 4. The duration of the contract is approximately three years, indicating a medium-term commitment. 5. The contract is managed by the Office of the Assistant Secretary for Administration and Management. 6. The North American Industry Classification System (NAICS) code 624310 points to vocational rehabilitation services.

Value Assessment

Rating: good

The contract value of $23.3 million over three years for national training services appears reasonable given the scope of Job Corps' transportation trades programs. Benchmarking against similar large-scale vocational training contracts is challenging without more specific service details, but the fixed-price incentive structure suggests an effort to align contractor performance with cost efficiency. The award to a single contractor for national scope implies a significant investment in a specialized provider.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, which typically benefits price discovery and can lead to more favorable terms for the government. The specific number of bidders (2) is on the lower side for a full and open competition, but still demonstrates that the opportunity was broadly advertised.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Job Corps participants nationwide will benefit from enhanced training in critical transportation trades. The contract will facilitate the delivery of vocational rehabilitation services, improving employment prospects for trainees. The training is expected to have a positive impact on the workforce development landscape in transportation sectors. The geographic impact is national, aiming to serve Job Corps centers across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider for national training needs.
Ensuring consistent quality of training across all Job Corps locations.
Measuring the long-term employment success of trainees beyond the contract period.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Fixed-price incentive contract type encourages performance and cost management.
Focus on critical transportation trades addresses a sector with ongoing workforce demand.

Sector Analysis

The transportation sector is a critical component of the U.S. economy, requiring a skilled workforce for maintenance, operation, and logistics. Federal spending in this area often supports training initiatives to address labor shortages and promote economic mobility. This contract fits within the broader landscape of workforce development programs aimed at equipping individuals with in-demand skills, aligning with government priorities to foster economic growth and individual self-sufficiency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of subcontracting requirements for small businesses within the provided data, large federal contracts often include provisions for small business participation. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks to engage small businesses for specialized services or supplies related to the training.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures are embedded within the fixed-price incentive contract type, which links contractor payment to performance outcomes and cost targets. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not always be publicly detailed.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Vocational Training Initiatives

Risk Flags

Contract duration may be insufficient for long-term skill development.
Potential for performance variability across different training locations.
Reliance on a single contractor for national training scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.3 million to TRANSPORTATION COMMUNICATIONS UNION/IAM. JOB CORPS NATIONAL TRAINING CONTRACT (NTC) TRANSPORTATION TRADES 2023

Who is the contractor on this award?

The obligated recipient is TRANSPORTATION COMMUNICATIONS UNION/IAM.

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 $23.3 million.

What is the period of performance?

Start: 2023-07-31. End: 2026-07-31.

What is the track record of Transportation Communications Union/IAM in delivering large-scale vocational training programs?

The Transportation Communications Union/IAM has a history of involvement in labor relations and advocacy within the transportation industry. While specific details on their experience managing federal vocational training contracts of this magnitude are not provided in the summary data, their affiliation with transportation sectors suggests a potential understanding of industry needs. Further investigation into their past performance on similar government contracts, particularly those involving training and workforce development, would be necessary to fully assess their capabilities and track record for this specific Job Corps National Training Contract.

How does the $23.3 million contract value compare to previous Job Corps transportation trades training awards?

Without historical data on specific Job Corps National Training Contract (NTC) awards for transportation trades, a direct comparison of the $23.3 million value is difficult. However, considering the national scope and three-year duration (2023-2026), this figure suggests a significant investment in vocational training. The value should be assessed in the context of the number of trainees served, the breadth of trades covered, and the specific training methodologies employed. Benchmarking against other large federal workforce development programs or similar large-scale training initiatives, even in different sectors, could provide a broader perspective on cost-effectiveness.

What are the primary risks associated with a fixed-price incentive (FPI) contract for vocational training?

A primary risk with Fixed-Price Incentive (FPI) contracts is the potential for cost overruns if the target cost is not accurately estimated or if unforeseen circumstances significantly increase expenses. While the incentive structure aims to share savings or overruns, it can create complex negotiations. For vocational training, risks also include ensuring the quality and relevance of the training content, maintaining trainee engagement and completion rates, and adapting curricula to evolving industry demands. The government bears a portion of the risk if costs exceed the target, while the contractor is incentivized to perform efficiently.

How effective is the Job Corps program in placing graduates into transportation trades careers?

The effectiveness of the Job Corps program in placing graduates into transportation trades careers is a key performance indicator for this contract. While the provided data does not include placement rates, the Job Corps generally aims to provide comprehensive training and career counseling to improve employment outcomes. Success would be measured by the percentage of trainees who complete the program, obtain relevant certifications, and secure employment in their trained fields. The Department of Labor likely monitors these outcomes as part of contract oversight, though specific metrics are not detailed here.

What has been the historical federal spending trend for Job Corps transportation trades training?

The provided data focuses on a single, current contract award and does not offer historical spending trends for Job Corps transportation trades training. To understand historical spending, one would need to analyze appropriations and contract awards over multiple fiscal years for this specific program or related vocational training initiatives within Job Corps. Such an analysis would reveal patterns in investment, potential fluctuations based on economic conditions or policy priorities, and the overall scale of federal commitment to this training area over time.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

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-R-00020

Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 3 RESEARCH PL, ROCKVILLE, MD, 20850

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,479,624

Exercised Options: $24,373,339

Current Obligation: $23,296,864

Actual Outlays: $18,903,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline