Department of Labor awards $49M contract for Loring Job Corps Center operations to Career Systems Development Corporation

Contract Overview

Contract Amount: $49,152,813 ($49.2M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE LORING JOB CORPS CENTER WITH OA AND CTS.

Place of Performance

Location: LIMESTONE, AROOSTOOK County, MAINE, 04750

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $49.2 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF THE LORING JOB CORPS CENTER WITH OA AND CTS. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years (1825 days) indicates a long-term commitment to service provision. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The award is for the operation of the Loring Job Corps Center, including OA and CTS services. 5. The North American Industry Classification System (NAICS) code 611519 points to technical and trade school services. 6. The contract was awarded to a single vendor, Career Systems Development Corporation. 7. The base award amount is approximately $49.15 million.

Value Assessment

Rating: good

The contract's value of approximately $49.15 million over five years for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar Job Corps center operations would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost fluctuations. Without specific performance metrics or historical cost data for this center, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a healthy level of competition for this service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of potential solutions being considered, maximizing the value of federal funds.

Public Impact

The primary beneficiaries are the students enrolled in the Loring Job Corps Center, who will receive training and support services. The contract ensures the continued operation of essential services, including Occupational and Career Training Services (OA and CTS). The geographic impact is focused on the Loring area in Maine, providing local employment and economic activity. The contract supports the workforce development goals of the Department of Labor by providing vocational training and job placement assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is satisfactory and contract is repeatedly renewed without re-competition.
Reliance on a single contractor for critical youth training services requires robust performance monitoring.
The specific scope of 'OA and CTS' needs clear definition to ensure all expected services are delivered.
Geographic concentration in Maine may limit broader applicability of lessons learned to other Job Corps centers.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent selection process.
Firm-fixed-price contract type provides cost predictability for the government.
Long-term contract duration (5 years) suggests stability and commitment to the program's success.
The contractor, Career Systems Development Corporation, is likely experienced in operating such facilities.
The contract supports a vital federal program aimed at workforce development for young people.

Sector Analysis

The federal government's investment in Job Corps centers falls under the broader education and workforce development sector. This contract specifically relates to vocational training and technical education services, a niche within the education services industry. The market for operating such centers can be competitive, with several organizations specializing in government contract management for educational and training programs. Comparable spending benchmarks would involve looking at other Job Corps center contracts or similar large-scale vocational training initiatives managed by federal agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). While the prime contractor is Career Systems Development Corporation, there is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how they are being utilized to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to performance standards outlined in the contract, with potential for review by the Department of Labor's Inspector General if performance issues arise.

Related Government Programs

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

Risk Flags

Long-term contract duration may reduce flexibility.
Performance monitoring is critical for service quality assurance.
Potential for cost increases not fully captured in fixed price over 5 years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $49.2 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF THE LORING JOB CORPS CENTER WITH OA AND CTS.

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $49.2 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is the track record of Career Systems Development Corporation in operating Job Corps centers or similar facilities?

A thorough review of Career Systems Development Corporation's past performance is crucial. This would involve examining their history with other federal contracts, particularly those involving the operation of Job Corps centers or similar educational/vocational training facilities. Key aspects to investigate include their success in meeting performance metrics, managing budgets, student outcomes (e.g., graduation rates, job placement), and any history of contract disputes or performance issues. Information from sources like the Federal Procurement Data System (FPDS) and past performance evaluations would be essential for this assessment. Understanding their experience provides insight into their capability to successfully execute the Loring Job Corps Center contract.

How does the awarded amount compare to the average cost of operating a Job Corps center of similar size and scope?

To benchmark the value of this $49.15 million contract, we would need to compare it against the operational costs of other Job Corps centers. This comparison should account for factors such as the number of students served, the types of training programs offered, the geographic location (which impacts labor and operational costs), and the specific services included (like OA and CTS). Data from the Department of Labor's own reporting on Job Corps center operations, or analyses by independent research organizations, would be valuable. A higher or lower cost per student or per center, relative to benchmarks, would indicate whether this contract represents excellent value, is within the expected range, or warrants further scrutiny for potential inefficiencies or exceptional cost-effectiveness.

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

The contract likely includes specific Key Performance Indicators (KPIs) designed to measure the success of the Loring Job Corps Center's operations. These KPIs typically focus on student outcomes, such as enrollment numbers, retention rates, completion rates for training programs, job placement success, and post-placement earnings. Other KPIs might relate to the quality of instruction, facility maintenance, and adherence to safety and administrative standards. The contract document itself should detail these KPIs and the methodology for measuring and reporting on them. Regular performance reviews by the Department of Labor will assess the contractor's performance against these metrics, informing decisions about contract modifications, incentives, or potential remedies for underperformance.

What is the historical spending trend for the operation of the Loring Job Corps Center?

Analyzing historical spending for the Loring Job Corps Center is important to understand cost trends and budget predictability. This involves examining contract awards for this specific center over previous years. We would look for patterns in contract values, duration, and any significant increases or decreases in funding. Comparing historical spending against inflation and changes in program scope can reveal whether costs have been managed effectively. Significant year-over-year increases without corresponding program expansion might raise questions about cost efficiency. Conversely, stable or decreasing costs could indicate effective management or potential underfunding, depending on service levels.

What are the potential risks associated with the long-term nature of this contract?

The 5-year duration of this firm-fixed-price contract presents several potential risks. Firstly, there's the risk of contractor complacency or a decline in service quality over time if performance monitoring is not rigorous. Secondly, a long-term commitment might reduce the government's flexibility to adapt to changing workforce needs or technological advancements in training methodologies without incurring modification costs. Thirdly, if the initial pricing was based on assumptions that change significantly over the contract period (e.g., unexpected cost increases for the contractor), the fixed-price nature could lead to reduced profit margins for the contractor, potentially impacting their motivation or ability to deliver. Finally, a long contract term can sometimes reduce the urgency for competitive re-bidding, potentially leading to less optimal pricing in subsequent periods.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1605JE-21-R-00001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $58,982,290

Exercised Options: $58,782,290

Current Obligation: $49,152,813

Actual Outlays: $44,181,238

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline