Department of Labor awards $60.4M contract for job training and career services to EDUCATION & TRAINING RESOURCES LLC

Contract Overview

Contract Amount: $60,413,631 ($60.4M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2020-10-01

End Date: 2026-07-31

Contract Duration: 2,129 days

Daily Burn Rate: $28.4K/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: BENJAMIN L. HOOKS JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS&CAREER TRANSITION SERVICES

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38116

State: Tennessee Government Spending

Plain-Language Summary

Department of Labor obligated $60.4 million to EDUCATION & TRAINING RESOURCES LLC for work described as: BENJAMIN L. HOOKS JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS&CAREER TRANSITION SERVICES Key points: 1. Contract value of $60.4M over its period of performance suggests a significant investment in workforce development. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of 2129 days (approx. 5.8 years) allows for sustained program delivery and impact. 5. The contract supports technical and trade schools, aligning with the need for skilled labor in various sectors. 6. The geographic focus on Tennessee (TN) highlights a targeted approach to regional workforce needs.

Value Assessment

Rating: good

The contract value of $60.4M for job training and career services appears reasonable given the nearly 6-year performance period. Benchmarking against similar large-scale workforce development contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost predictability for the government.

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,' which implies that while the competition was open, certain sources may have been excluded prior to the main solicitation. This suggests a potentially robust competition, though the exclusion criteria warrant further investigation. The presence of 11 bids indicates a healthy level of interest from potential providers.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by encouraging providers to offer their best value. The exclusion of sources, however, could potentially limit the breadth of competition and its downward pressure on price.

Public Impact

Individuals seeking technical and trade skills development will benefit from the career transition and admissions services. The contract aims to deliver essential training and support to enhance workforce readiness. The primary geographic impact is focused on Tennessee, addressing local workforce needs. The contract supports the development of a skilled workforce, potentially leading to increased employment opportunities and economic stability for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure it did not unduly limit competition.
The specific nature of the 'outreach and admissions & career transition services' needs detailed performance metrics to assess effectiveness.
Lack of specific small business set-aside information raises questions about opportunities for smaller entities in subcontracting.

Positive Signals

Awarded under full and open competition, suggesting a broad market approach.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration allows for sustained program impact and relationship building.
Focus on technical and trade schools aligns with in-demand skill development.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on technical and trade schools. This sector is critical for developing a skilled workforce that meets the demands of various industries. Comparable spending benchmarks would involve analyzing other government contracts for similar workforce development programs, which often involve significant investments to address skill gaps and promote economic mobility.

Small Business Impact

The provided data does not indicate if this contract included specific small business set-asides. The 'full and open competition after exclusion of sources' could potentially impact small business participation, depending on the nature of the excluded sources and the prime contractor's subcontracting plans. Further analysis would be needed to determine the extent of small business involvement and subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management, which is responsible for contract administration. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though specific program performance data may be less publicly accessible.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Job Corps Program
Adult Education and Literacy Programs
Vocational Rehabilitation Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Need for detailed performance metrics to assess program effectiveness.
Lack of explicit small business subcontracting goals requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $60.4 million to EDUCATION & TRAINING RESOURCES LLC. BENJAMIN L. HOOKS JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS&CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is EDUCATION & TRAINING RESOURCES 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 $60.4 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-07-31.

What is the track record of EDUCATION & TRAINING RESOURCES LLC in delivering similar government contracts?

Information regarding the specific track record of EDUCATION & TRAINING RESOURCES LLC in delivering similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous federal awards. This would help determine their capacity, reliability, and effectiveness in managing large-scale training and career services programs. Without this historical data, it is difficult to definitively assess their suitability beyond the current award.

How does the awarded amount of $60.4M compare to similar job training contracts awarded by the Department of Labor or other agencies?

The $60.4M award for job training and career services over approximately 5.8 years represents a substantial investment. To benchmark this value, one would compare it to other large-scale workforce development contracts. For instance, contracts for comprehensive Job Corps centers or statewide workforce initiatives can range from tens to hundreds of millions of dollars over similar periods. The specific services (outreach, admissions, career transition) and the target population (technical and trade schools) will influence the per-participant cost. A detailed comparison would involve analyzing the scope of work, duration, and number of individuals served in comparable contracts to ascertain if this award represents a competitive and efficient use of funds.

What are the primary risks associated with this contract, and how are they being mitigated?

Potential risks for this contract include contractor performance issues (failure to meet training targets or provide adequate career services), cost overruns (though mitigated by the firm fixed-price structure), and changes in labor market demands that could affect the relevance of training programs. Mitigation strategies would typically involve robust contract oversight by the Department of Labor, including regular performance reviews, site visits, and adherence to defined performance metrics. The firm fixed-price nature of the contract incentivizes the contractor to manage costs effectively. Additionally, the contract's duration allows for adaptive adjustments to training curricula based on evolving industry needs.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring optimal value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad competition with specific requirements. While 'full and open' suggests an intention to solicit from all responsible sources, the 'after exclusion of sources' clause indicates that certain potential bidders were disqualified or not considered from the outset. The effectiveness for taxpayers hinges on the justification for these exclusions. If the exclusions were based on necessary qualifications or specific technical requirements that narrowed the field appropriately, it could still lead to competitive pricing among qualified bidders. However, if the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices than a truly unrestricted full and open competition might yield. Transparency regarding the reasons for exclusion is key to assessing taxpayer value.

What are the historical spending patterns for similar job training and career services contracts by the Department of Labor?

Historical spending patterns for similar job training and career services contracts by the Department of Labor reveal a consistent and significant investment in workforce development. Agencies like the Department of Labor frequently award multi-million dollar contracts for programs aimed at skill development, job placement, and career transition assistance. These contracts can vary widely in scope, from localized training initiatives to large-scale, multi-year programs serving thousands of individuals. Spending levels are often influenced by economic conditions, federal budget allocations, and national priorities for workforce preparedness. Analyzing past awards provides context for the current $60.4M contract, indicating it falls within the expected range for substantial workforce development efforts.

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-00004

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Foxmar, Inc.

Address: 2422 AIRWAY CT, BOWLING GREEN, KY, 42103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,482,123

Exercised Options: $65,482,123

Current Obligation: $60,413,631

Actual Outlays: $55,863,585

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $4,596,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline