Department of Labor awards $52.3M contract for Job Corps Center operations to Education & Training Resources LLC

Contract Overview

Contract Amount: $52,325,395 ($52.3M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2020-11-01

End Date: 2026-08-31

Contract Duration: 2,129 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE MONTGOMERY JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36108

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $52.3 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE MONTGOMERY JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract focuses on operational efficiency and student support services for the Montgomery Job Corps Center. 2. The award represents a significant investment in workforce development and vocational training. 3. Performance period spans nearly four years, indicating a need for sustained service delivery. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The geographic focus is Alabama, potentially impacting local workforce development initiatives. 6. The contractor, Education & Training Resources LLC, will be responsible for outreach, admissions, and career transition services.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires detailed cost breakdowns and comparisons to similar Job Corps center operations. Without specific performance metrics or cost-per-student data, it's difficult to definitively assess value for money. The fixed-price nature suggests a defined scope, but the total award amount of $52.3 million over approximately 3.5 years indicates a substantial commitment. Further analysis would involve comparing the contractor's proposed costs against historical spending for this center or comparable centers.

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,' suggesting a competitive process was initiated but specific sources were excluded. With 12 bidders, the competition level appears robust, which generally favors price discovery and potentially better value for the government. The exclusion of certain sources warrants further investigation to understand its impact on the competitive landscape and final pricing.

Taxpayer Impact: A competitive award with multiple bidders is generally favorable for taxpayers, as it encourages lower pricing and better service offerings. The exclusion of sources, however, could potentially limit the most competitive bids from reaching the government.

Public Impact

Benefits students seeking vocational training and career development opportunities in Alabama. Delivers essential services including outreach, admissions, and career transition support. Geographic impact is concentrated in Montgomery, Alabama, and surrounding areas. Workforce implications include the potential for skilled labor development and local job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Ensuring equitable access to services for all eligible students.
Monitoring the effectiveness of outreach and admissions processes.

Positive Signals

Contract awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract shifts cost risk to the contractor.
Long performance period suggests a commitment to sustained program delivery.

Sector Analysis

This contract falls within the broader education and training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. The market for operating such centers involves specialized educational service providers. Comparable spending benchmarks would involve looking at other Job Corps center contracts and similar government-funded workforce development programs.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem. Without this information, it's difficult to assess the contract's contribution to small business goals.

Oversight & Accountability

Oversight will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally facilitated through contract award databases, but detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for performance issues if contractor lacks experience with specific student populations.
Risk of cost overruns if fixed-price contract scope is not clearly defined.
Dependency on contractor's ability to maintain strong community partnerships for job placement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $52.3 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE MONTGOMERY JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND 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 $52.3 million.

What is the period of performance?

Start: 2020-11-01. End: 2026-08-31.

What is the historical spending pattern for the Montgomery Job Corps Center operations?

Analyzing historical spending for the Montgomery Job Corps Center is crucial for understanding the value and cost-effectiveness of this new $52.3 million contract. Without specific historical data, it's challenging to determine if this award represents an increase or decrease in investment, or if it aligns with previous funding levels. A review of past contracts for this center would reveal trends in operational costs, service delivery, and contractor performance, providing a baseline against which the current award can be benchmarked. This historical context is essential for assessing whether the government is achieving better value or if costs have escalated over time.

How does the contractor's track record influence the risk assessment for this contract?

Education & Training Resources LLC's track record is a critical factor in assessing the risk associated with this $52.3 million contract. A history of successful contract performance, particularly in operating similar educational or workforce development programs, would indicate a lower risk of performance issues, cost overruns, or service disruptions. Conversely, past performance issues, such as missed deadlines, quality deficiencies, or financial instability, would elevate the risk profile. A thorough review of past performance evaluations, client feedback, and any documented disputes or corrective actions would provide a comprehensive understanding of the contractor's reliability and capability to meet the contract's objectives.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The key performance indicators (KPIs) for this contract are essential for measuring the success of the Montgomery Job Corps Center operations. While not explicitly detailed in the provided data, typical KPIs for such contracts often include student enrollment rates, completion rates, job placement success, employer satisfaction, and adherence to program standards. The Department of Labor would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs. Performance will likely be monitored through regular reporting by the contractor, site visits, and potentially independent evaluations. Failure to meet these KPIs could result in contractual remedies, including financial penalties or termination.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact potential savings for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method, while still competitive, introduces a layer of complexity regarding potential taxpayer savings. Full and open competition generally maximizes the pool of potential bidders, driving down prices through robust market forces. However, the exclusion of specific sources means that the most competitive bids might not have been considered. The extent of savings realized depends on the number and competitiveness of the remaining bidders. If the excluded sources were significant potential competitors, the final price might be higher than what could have been achieved under a truly unrestricted competition. A detailed analysis of the bid proposals and the rationale for source exclusion would be necessary to fully quantify the impact on taxpayer savings.

What is the expected impact of this contract on local workforce development in Alabama?

This $52.3 million contract is expected to have a significant positive impact on local workforce development in Alabama, particularly in the Montgomery area. By funding the operation of the Job Corps Center, it directly supports the training and skill development of young individuals, preparing them for employment in in-demand sectors. This can lead to a more skilled local labor pool, attracting businesses and fostering economic growth. Furthermore, the contract itself creates jobs within the center's administration, instruction, and support staff, providing direct employment opportunities. The career transition services component aims to ensure graduates are successfully placed in meaningful employment, further strengthening the local economy.

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-00001

Offers Received: 12

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: $55,526,254

Exercised Options: $55,526,254

Current Obligation: $52,325,395

Actual Outlays: $48,144,895

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $3,192,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline