Department of Labor awards $21.2M contract for vocational rehabilitation services to UAW-Labor Employment and Training Corporation

Contract Overview

Contract Amount: $21,230,066 ($21.2M)

Contractor: UAW- Labor Employment and Training Corporation

Awarding Agency: Department of Labor

Start Date: 2023-07-31

End Date: 2026-07-31

Contract Duration: 1,096 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OJC NTC AUTOMOTIVE TRADES 2023

Place of Performance

Location: CERRITOS, LOS ANGELES County, CALIFORNIA, 90703

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $21.2 million to UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION for work described as: OJC NTC AUTOMOTIVE TRADES 2023 Key points: 1. The contract's value of $21.2 million over three years suggests a significant investment in vocational rehabilitation. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The use of a Time and Materials contract type may present cost control challenges if not closely managed. 4. The contract is for vocational rehabilitation services, aligning with the Department of Labor's mission. 5. The award to UAW-Labor Employment and Training Corporation suggests a focus on labor-centric training and support. 6. The contract duration of approximately three years allows for sustained program delivery. 7. The geographic scope is California, indicating a regional focus for these services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of services and the number of individuals served. However, a $21.2 million investment over three years for vocational rehabilitation in a single state suggests a substantial program. The Time and Materials pricing structure, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. Further analysis would require comparing per-participant costs and service outcomes against similar state or federal programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of only one bid received (no: 1) is a notable point. While full and open competition is generally preferred for maximizing choice and potentially lowering prices, a single bid could indicate limited market interest, specialized requirements, or potential issues with the solicitation process that may have deterred other bidders. This could impact price discovery and the overall competitiveness achieved.

Taxpayer Impact: A single bid under full and open competition raises questions about whether taxpayers received the best possible value. While the process was open, the lack of multiple competing offers might mean that the price was not as rigorously tested as it could have been, potentially leading to a higher cost than if more vendors had vied for the contract.

Public Impact

Individuals in California seeking vocational rehabilitation services will benefit from this contract. The contract aims to deliver vocational training, job placement assistance, and support services. The geographic impact is focused on the state of California. The program is expected to have implications for the workforce by helping individuals gain employment and skills. The UAW-Labor Employment and Training Corporation's involvement suggests a potential focus on unionized sectors or workers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as the final price is not fixed upfront.
Only one bid was received under full and open competition, which may indicate a lack of robust market competition or potential issues with the solicitation that deterred other interested parties.
The specific performance metrics and service level agreements are not detailed, making it difficult to assess the contractor's accountability for service quality and outcomes.
The contract's effectiveness in achieving its vocational rehabilitation goals will depend heavily on the contractor's execution and the Department of Labor's oversight.

Positive Signals

The contract was awarded through full and open competition, adhering to principles of fairness and broad market access.
The Department of Labor is investing a significant amount in vocational rehabilitation, signaling a commitment to supporting individuals in their return to the workforce.
The award to UAW-Labor Employment and Training Corporation suggests a partnership with an organization experienced in labor and employment matters.
The contract duration of nearly three years allows for consistent service delivery and program stability.

Sector Analysis

The vocational rehabilitation services sector is a critical component of the broader workforce development and social services industry. This contract falls within the government's efforts to support individuals with barriers to employment, including disabilities or other challenges. The market for such services often involves non-profit organizations, specialized training providers, and labor unions. Government spending in this area is driven by legislative mandates and social policy objectives. Comparable spending benchmarks would typically involve analyzing per-participant costs and program outcomes across different states and federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or specific subcontracting requirements for small businesses mentioned in the provided data. The award to a larger organization like UAW-Labor Employment and Training Corporation suggests that the primary focus is not on direct small business participation as a prime contractor. However, the contractor may engage small businesses as subcontractors for specific services, which would be detailed in their subcontracting plan, if applicable. The overall impact on the small business ecosystem would depend on whether they are integrated into the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (SA). Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed program performance data and financial expenditures would require further inquiry. 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

Workforce Innovation and Opportunity Act (WIOA) Programs
State Vocational Rehabilitation Services
Department of Labor Employment and Training Administration Grants
Americans with Disabilities Act (ADA) Compliance Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition indicated by only one bid received.
Lack of detailed performance metrics in the provided data.
Need for close monitoring of contractor performance and expenditures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $21.2 million to UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION. OJC NTC AUTOMOTIVE TRADES 2023

Who is the contractor on this award?

The obligated recipient is UAW- LABOR EMPLOYMENT AND TRAINING 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 $21.2 million.

What is the period of performance?

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

What is the track record of UAW-Labor Employment and Training Corporation in delivering vocational rehabilitation services?

Information regarding the specific track record of UAW-Labor Employment and Training Corporation in delivering vocational rehabilitation services is not detailed in the provided data. However, as an organization affiliated with the United Auto Workers (UAW), it likely has experience in workforce development, training, and potentially assisting members with re-employment or skill enhancement. To fully assess their track record for this specific contract, a review of their past performance on similar government contracts, client testimonials, and outcome data (e.g., job placement rates, wage increases) would be necessary. The Department of Labor's contracting office would have access to past performance evaluations that could shed light on their capabilities and reliability in managing such programs.

How does the per-participant cost of this contract compare to similar vocational rehabilitation programs?

The provided data does not include the number of participants or the specific services to be delivered, making a direct per-participant cost comparison impossible. The total contract value is $21.2 million over approximately three years. To benchmark this, one would need to estimate the expected number of individuals to be served. For example, if the contract aims to serve 5,000 individuals, the average cost per participant would be around $4,240. This figure would then need to be compared against national or state averages for vocational rehabilitation services, considering variations in service intensity, geographic cost of living, and specific populations served. Without these details, any comparison remains speculative.

What are the primary risks associated with a Time and Materials (T&M) contract for vocational rehabilitation services?

The primary risk associated with a Time and Materials (T&M) contract for vocational rehabilitation services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if the contractor's efficiency is low, the total cost can escalate beyond initial estimates. For vocational rehabilitation, this could mean longer-than-expected training periods or unforeseen material needs. Effective risk mitigation requires robust oversight, clear task definitions, and regular monitoring of labor hours and material expenses by the contracting agency to ensure value for money.

What does the fact that only one bid was received under full and open competition imply for program effectiveness?

The fact that only one bid was received under full and open competition could have mixed implications for program effectiveness. On one hand, it might suggest that the selected contractor, UAW-Labor Employment and Training Corporation, is uniquely qualified or the only entity capable of meeting the specific requirements. If they are highly capable, the program could be very effective. On the other hand, a lack of competition can sometimes indicate that the solicitation was too restrictive, the market is too small, or the anticipated profit margins were insufficient to attract multiple bidders. This could mean that the government did not explore all potential avenues for innovation or cost savings, potentially impacting the overall effectiveness and value derived from the program.

How has federal spending on vocational rehabilitation services trended in recent years?

Historical federal spending data on vocational rehabilitation services is not provided in the current data set. However, federal investment in workforce development and related programs, including vocational rehabilitation, is generally influenced by economic conditions, legislative priorities, and the needs of specific populations, such as individuals with disabilities or veterans. Trends can fluctuate based on appropriations cycles and the passage of new legislation like the Workforce Innovation and Opportunity Act (WIOA), which aims to improve training and employment outcomes. A comprehensive analysis would require examining historical budget allocations for the Department of Labor and related agencies over several fiscal years.

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-00017

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11010 ARTESIA BLVD FLOOR 2, CERRITOS, CA, 90703

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

Financial Breakdown

Contract Ceiling: $38,427,985

Exercised Options: $22,217,374

Current Obligation: $21,230,066

Actual Outlays: $18,252,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline