Department of Labor awards $35.7M contract for Job Corps Center operations, outreach, and career transition services

Contract Overview

Contract Amount: $35,664,522 ($35.7M)

Contractor: Chugach Training and Educational Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2020-10-01

End Date: 2026-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GULFPORT JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $35.7 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC for work described as: GULFPORT JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract focuses on essential support services for vocational training programs. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration extends over multiple years, indicating a long-term need. 4. The contract type is Firm Fixed Price, which helps control costs. 5. The contractor has a significant existing relationship with the government. 6. Services are critical for workforce development and individual career advancement.

Value Assessment

Rating: good

The contract value of $35.7 million over its period of performance appears reasonable for comprehensive Job Corps center operations, including outreach and career transition services. Benchmarking against similar contracts for large-scale educational and vocational training centers would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope of work is well-defined and stable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, certain sources may have been excluded based on specific criteria. With 11 bidders, the level of competition appears robust, which generally leads to better pricing and value for the government. This suggests that multiple capable firms vied for the contract.

Taxpayer Impact: A competitive process with multiple bidders typically results in more favorable pricing for taxpayers by driving down costs through market forces.

Public Impact

Benefits individuals seeking vocational training and career development. Provides essential services for the Gulfport Job Corps Center. Supports workforce development initiatives in Mississippi. Aims to improve employment outcomes for program participants. Contributes to the local economy through job creation and training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if outreach and transition services are not tightly managed.
Dependence on a single contractor for critical student support services.
Ensuring consistent quality of services across the contract duration.

Positive Signals

Firm Fixed Price contract helps manage cost uncertainty.
Full and open competition suggests a competitive market for these services.
Long contract duration allows for stable service delivery and planning.
Contractor has prior experience in government contracting.

Sector Analysis

This contract falls within the broader education and workforce development sector, specifically focusing on vocational training and support services. The market for operating large-scale training centers and providing related services is competitive, with several established providers. The Department of Labor's investment in Job Corps centers is a significant component of federal efforts to equip individuals with job skills, and this contract represents a substantial portion of that investment for the Gulfport location.

Small Business Impact

While the contract was awarded under full and open competition, it is not explicitly stated as a small business set-aside. The prime contractor, CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC, is likely a larger entity. There is potential for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific services required.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Mechanisms likely include regular performance reviews, site visits, and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may not always be publicly detailed.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Rehabilitation Services

Risk Flags

Contract duration is exceptionally long (2007 months).
Procurement method 'Full and Open Competition After Exclusion of Sources' requires careful review of exclusion rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.7 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC. GULFPORT JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, 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 $35.7 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-03-31.

What is the historical spending pattern for Job Corps center operations in Gulfport, Mississippi?

Historical spending data for the Gulfport Job Corps Center operations prior to this contract award is not directly available in the provided data. However, the contract duration of 2007 months (approximately 167 years) and the current award value of $35.7 million suggest a significant and ongoing federal investment in this facility. To understand historical patterns, one would need to examine previous contract awards for this specific center, looking at award values, durations, and contractors over time. This would reveal trends in cost escalation, contractor stability, and the evolution of service requirements. Without prior data, it's difficult to assess if the current award represents an increase or decrease in spending relative to past periods.

How does the contractor's track record with the federal government influence the risk assessment of this contract?

The contractor, CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC, has a track record with the federal government, indicated by the contract award details. A contractor with a history of successful performance on similar government contracts generally presents a lower risk. This includes a demonstrated ability to meet performance requirements, manage budgets, adhere to regulations, and deliver services effectively. Conversely, a history of poor performance, contract disputes, or compliance issues would increase the risk profile. Specific details on the contractor's past performance ratings, any past issues, or commendations would be crucial for a comprehensive risk assessment. Assuming a generally positive or neutral past performance, the risk associated with the contractor's capabilities is likely moderate.

What are the key performance indicators (KPIs) used to measure the success of this Job Corps center contract?

Key Performance Indicators (KPIs) for Job Corps center operations typically focus on student outcomes and program efficiency. These often include metrics such as student enrollment rates, completion rates, job placement rates post-graduation, average wages of placed graduates, and student satisfaction surveys. Additionally, KPIs might track the efficiency of resource utilization, adherence to budget, and the quality of training provided. The Department of Labor, through its contracting officers and program managers, would establish specific KPIs within the contract's Statement of Work (SOW). Regular performance reviews and reporting would assess the contractor's performance against these defined KPIs to ensure the effective delivery of services and achievement of program goals.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact potential bidders and pricing?

The 'Full and Open Competition After Exclusion of Sources' method implies that the solicitation was broadly advertised, allowing any responsible source to submit an offer. However, specific sources may have been excluded based on pre-qualification criteria, past performance, or other factors deemed relevant by the agency. This approach aims to balance broad competition with ensuring that only qualified and suitable contractors participate. For potential bidders, it means a clear understanding of the requirements and the opportunity to compete if they meet the specified criteria. For pricing, this method generally fosters competitive pricing because multiple bidders are encouraged to offer their best value proposals. The exclusion of certain sources, if justified, should not significantly diminish the competitive landscape, provided a sufficient number of capable bidders remain.

What is the anticipated impact of this contract on the local workforce and economy in Mississippi?

This contract is expected to have a positive impact on the local workforce and economy in Mississippi. Firstly, the operation of the Gulfport Job Corps Center itself will create and sustain jobs for instructors, administrative staff, support personnel, and maintenance workers. Secondly, the core mission of the Job Corps is to train and place individuals into skilled jobs, thereby enhancing the local labor pool's capabilities and potentially filling critical skill gaps for regional employers. Successful program graduates contribute to the economy through their employment and tax contributions. Furthermore, the center's operations may lead to indirect economic benefits through local procurement of goods and services.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J3-20-R-00002

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,416,835

Exercised Options: $37,169,050

Current Obligation: $35,664,522

Actual Outlays: $31,416,983

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $139,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline