Labor Department awards $52.9M contract for Oneonta JCC operations to Education & Training Resources LLC

Contract Overview

Contract Amount: $52,944,117 ($52.9M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2021-12-01

End Date: 2026-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE ONEONTA JCC WITH OA/CTS

Place of Performance

Location: ONEONTA, OTSEGO County, NEW YORK, 13820

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $52.9 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE ONEONTA JCC WITH OA/CTS Key points: 1. Contract value represents a significant investment in workforce development and training services. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of five years indicates a long-term need for these operational services. 4. The specific NAICS code points to a specialized area within technical and trade schools. 5. Fixed-price contract type aims to control costs and provide budget certainty. 6. Geographic focus on New York highlights regional workforce development efforts.

Value Assessment

Rating: fair

The contract value of $52.9 million over five years averages approximately $10.58 million annually. Benchmarking this against similar contracts for operating educational and training facilities is challenging without more specific service details. However, the firm fixed-price structure suggests an attempt to manage costs effectively. Further analysis would require comparing the scope of services and expected outcomes to similar government-funded training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bids received, the competition level appears moderate. This suggests that while there was interest from multiple vendors, the market may not be saturated with providers for this specific service. The moderate competition could lead to reasonable pricing, but it's not as robust as a scenario with a higher number of bidders.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging providers to offer the best value.

Public Impact

The primary beneficiaries are individuals seeking training and employment services through the Oneonta JCC. The contract supports the operation of the Oneonta Job Corps Center, delivering educational and vocational training. Services are geographically focused within New York, impacting the local workforce and economy. The contract has implications for the workforce employed by Education & Training Resources LLC and potentially for the trainees who gain skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all operational expenses.
Risk of service quality degradation if the contractor prioritizes cost-cutting over program effectiveness.
Dependence on a single contractor for a critical workforce development function.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially robust selection process.
Long-term contract duration allows for stable service delivery and planning.

Sector Analysis

This contract falls within the broader education and training services sector, specifically related to workforce development programs like Job Corps. The market for operating such centers involves specialized educational providers with experience in vocational training and student support. Comparable spending benchmarks would typically be found within federal and state budgets allocated to workforce development initiatives, which can vary significantly based on regional needs and program scope.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Education & Training Resources LLC actively seeks small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases, though detailed operational performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost overruns despite fixed-price structure if scope changes or unforeseen issues arise.
Risk of service quality decline if contractor focuses solely on cost reduction.
Dependence on contractor performance for critical workforce development outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $52.9 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE ONEONTA JCC WITH OA/CTS

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 $52.9 million.

What is the period of performance?

Start: 2021-12-01. End: 2026-11-30.

What is the track record of Education & Training Resources LLC in managing federal contracts, particularly those related to Job Corps or similar workforce development programs?

A thorough review of Education & Training Resources LLC's past performance is crucial. This would involve examining their history with federal agencies, specifically the Department of Labor, and assessing their success in managing similar large-scale operational contracts. Key performance indicators to investigate would include on-time delivery of services, adherence to budget, trainee placement rates, and any history of contract disputes or performance issues. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reports (CPARS) would be essential to gauge their reliability and expertise in this domain. Without this specific data, it's difficult to definitively assess their suitability beyond the current award.

How does the awarded amount of $52.9 million compare to historical spending on the operation of the Oneonta JCC or comparable Job Corps centers?

To assess the value for money, the $52.9 million award needs to be contextualized against historical spending. This involves comparing the current contract value to previous contracts for the Oneonta JCC's operations, adjusted for inflation. Additionally, benchmarking against the average cost per student or per center for similar Job Corps facilities nationwide would provide valuable insights. Factors such as the scope of services, the number of trainees served, and the specific economic conditions in the region can influence these costs. A significant deviation from historical averages or peer benchmarks might warrant further investigation into the reasons behind the variance, whether it's due to expanded services, market conditions, or other factors.

What are the specific performance metrics and expected outcomes tied to this $52.9 million contract, and how will they be measured?

The effectiveness of this contract hinges on clearly defined performance metrics and measurable outcomes. These should encompass aspects such as trainee enrollment and retention rates, completion of vocational and academic programs, job placement success post-training, and average post-placement earnings. The contract should specify the methodology for measuring these metrics, the frequency of reporting, and the standards that Education & Training Resources LLC must meet. Performance-based payment structures or incentives tied to achieving specific targets can further enhance accountability. Without transparency on these metrics, it is challenging to evaluate the true impact and value delivered by the contractor.

Given the firm fixed-price nature of the contract, what mechanisms are in place to ensure that the contractor maintains service quality and does not cut corners to maximize profit?

A firm fixed-price contract, while offering cost certainty, can incentivize contractors to reduce costs, potentially impacting service quality. To mitigate this risk, the Department of Labor must implement robust oversight mechanisms. These include regular site visits, performance reviews, and the collection of feedback from trainees and stakeholders. The contract should include clear quality assurance surveillance plans (QASP) outlining how service quality will be monitored and evaluated. Furthermore, establishing clear remedies for substandard performance, such as contract modifications, penalties, or even termination, is essential to hold the contractor accountable for delivering high-quality services as intended.

What is the potential impact of this contract on the local economy in Oneonta, New York, in terms of job creation and support for local businesses?

The operation of the Oneonta JCC under this $52.9 million contract is expected to have a positive impact on the local economy. This includes direct job creation for instructors, administrative staff, and support personnel employed by Education & Training Resources LLC at the center. Indirectly, the contract can stimulate local businesses through the procurement of goods and services, such as supplies, maintenance, and potentially local transportation for trainees. The success of the trainees in securing employment post-program also contributes to the local tax base and consumer spending. Quantifying this impact would require analyzing the contractor's local procurement practices and the employment outcomes of program graduates.

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-00006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Foxmar, Inc.

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

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,057,038

Exercised Options: $63,957,038

Current Obligation: $52,944,117

Actual Outlays: $2,428,555

Subaward Activity

Number of Subawards: 80

Total Subaward Amount: $6,464,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline