Department of Labor awards $42.4M contract for job training services to Adams and Associates Inc

Contract Overview

Contract Amount: $42,432,185 ($42.4M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2022-01-05

End Date: 2027-01-31

Contract Duration: 1,852 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: DELAWARE VALLEY JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: CALLICOON, SULLIVAN County, NEW YORK, 12723

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $42.4 million to ADAMS AND ASSOCIATES INC for work described as: DELAWARE VALLEY JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract provides essential job training and career transition services to support workforce development. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract with economic price adjustment aims to mitigate inflation risks. 4. The duration of the contract is over 5 years, indicating a long-term commitment to these services. 5. The services are categorized under 'Other Technical and Trade Schools', highlighting a focus on specialized skills. 6. The contract's value is substantial, reflecting the scale of the job training program.

Value Assessment

Rating: good

The contract value of $42.4 million over approximately 5 years suggests a significant investment in job training. Benchmarking this against similar large-scale workforce development programs would provide further context on value for money. The fixed-price with economic price adjustment structure is common for long-term service contracts to account for potential cost fluctuations, which can be a reasonable approach if managed effectively. Without specific per-unit cost data for training modules or student placements, a precise value-for-money assessment is challenging, but the scale indicates a substantial program.

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 a bid. With 5 bidders identified, this 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, as contractors vie to win the award.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

Benefits individuals seeking vocational training and career advancement opportunities. Delivers essential services including outreach, admissions, and career transition support. Geographic impact is focused on the Delaware Valley region, serving its local workforce needs. Supports the workforce development ecosystem by providing training and placement services. Aims to improve employment outcomes for participants through specialized skill development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment clause if not carefully monitored.
Ensuring consistent quality of training across all service delivery points is crucial.
Measuring the long-term success and employment retention of program participants requires robust tracking.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration allows for sustained program delivery and impact.
Fixed-price structure provides some cost certainty, with adjustments for economic factors.

Sector Analysis

This contract falls within the education and training sector, specifically focusing on vocational and technical skills development. The market for workforce development services is diverse, involving government agencies, educational institutions, and private training providers. The $42.4 million award is a significant sum, reflecting the scale and importance of the Job Corps program. Comparable spending benchmarks would involve looking at other large federal contracts for similar vocational training and career services, as well as state and local initiatives.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Adams and Associates Inc. is the prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the specific service delivery requirements and the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

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), which awarded the contract. Standard government oversight mechanisms, including performance reviews, financial audits, and compliance checks, would be in place. The Inspector General for the Department of Labor would also have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants
Vocational Rehabilitation Services

Risk Flags

Potential for cost increases due to economic price adjustment.
Ensuring consistent service quality across all locations.
Measuring long-term employment outcomes effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $42.4 million to ADAMS AND ASSOCIATES INC. DELAWARE VALLEY JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $42.4 million.

What is the period of performance?

Start: 2022-01-05. End: 2027-01-31.

What is the track record of Adams and Associates Inc. in delivering similar job training services?

Adams and Associates Inc. has a history of managing and operating Job Corps centers and providing related services. Their experience likely includes managing student recruitment, admissions, training curriculum delivery, career counseling, and placement assistance. Assessing their past performance metrics, such as student completion rates, job placement success, and employer satisfaction, would be crucial for understanding their capability to fulfill this contract effectively. Reviewing any past performance evaluations or contract awards to Adams and Associates Inc. by the Department of Labor or other federal agencies would provide valuable insights into their reliability and effectiveness in similar roles.

How does the per-student cost of this contract compare to other Job Corps centers or similar federal training programs?

To compare the per-student cost, we would need to estimate the number of students served annually or over the contract's life. The total contract value is $42.4 million over approximately 1852 days (roughly 5 years). If we assume an average daily student enrollment, we could derive a rough per-student-per-day cost. However, without knowing the target enrollment numbers or the specific services provided per student, a direct comparison is difficult. Generally, Job Corps centers aim for a cost-effective delivery of services, and the Department of Labor would have internal benchmarks. Comparing this contract's implied per-student cost to publicly available data for other Job Corps centers or similar federally funded vocational training programs would reveal if it is within the expected range or if it warrants further investigation into potential inefficiencies or exceptional service delivery.

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

Key performance indicators for this contract would likely focus on the effectiveness of the job training and career transition services. These typically include metrics such as student enrollment and retention rates, program completion rates, the percentage of graduates placed in meaningful employment within a specified timeframe (e.g., 6 months post-completion), average starting wages of placed graduates, and employer satisfaction with the skills and preparedness of the placed individuals. Additionally, indicators related to the efficiency of operations, such as cost per completer or cost per placement, might be tracked. The Department of Labor would establish these KPIs in the contract's Performance Work Statement (PWS) to ensure accountability and measure the contractor's success in meeting program objectives.

What is the historical spending trend for Job Corps center operations and similar services by the Department of Labor?

The Department of Labor has consistently allocated significant funding to the Job Corps program, recognizing its role in workforce development. Historical spending data would show fluctuations based on appropriations, program priorities, and economic conditions. The Job Corps program itself represents a substantial portion of the department's training budget. Analyzing spending trends over the past 5-10 years would reveal the overall investment in such services, identify any patterns of increase or decrease, and provide context for the current $42.4 million award. This historical perspective helps in understanding the long-term commitment to these types of programs and whether current spending aligns with past levels or represents a shift in investment.

What are the potential risks associated with a fixed-price contract with economic price adjustment (FP-EPA) for these services?

A Fixed-Price with Economic Price Adjustment (FP-EPA) contract aims to balance cost certainty for the government with protection for the contractor against unforeseen economic fluctuations, such as inflation. The primary risk for the government is that the economic price adjustments could lead to higher-than-anticipated costs if inflation rates are higher than projected or if the adjustment formula is overly generous. Conversely, if inflation is lower than expected, the government might have overpaid relative to the actual cost increases. Effective management requires rigorous monitoring of the economic indicators used for adjustments and ensuring the adjustment formula is fair and accurately reflects genuine cost increases in labor, materials, or other relevant inputs.

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-00013

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $51,038,899

Exercised Options: $50,989,437

Current Obligation: $42,432,185

Actual Outlays: $38,185,651

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $3,078,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline