Department of Labor awards $38.2M contract for Philadelphia Job Corps Center operations to Adams and Associates Inc

Contract Overview

Contract Amount: $38,200,956 ($38.2M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2021-12-16

End Date: 2027-01-31

Contract Duration: 1,872 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE PHILADELPHIA JOB CORPS CENTER, WITH OA AND CTS - BASE AWARD

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19145

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $38.2 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF THE PHILADELPHIA JOB CORPS CENTER, WITH OA AND CTS - BASE AWARD Key points: 1. The contract's base award of $38.2 million over approximately five years suggests a significant investment in workforce development. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing and a wider pool of qualified bidders. 3. The firm-fixed-price contract type generally shifts performance risk to the contractor, which can be a positive indicator for cost control. 4. The contract's duration of 1872 days (approximately 5 years) allows for sustained program delivery and potential for long-term impact. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools, aligning with job training objectives. 6. The contract is a definitive contract, suggesting a clear scope of work and established terms. 7. The base award amount of $38.2M is a substantial figure, requiring careful monitoring of performance and value for money.

Value Assessment

Rating: good

The base award of $38.2 million for operating the Philadelphia Job Corps Center appears to be a significant but not necessarily excessive investment for a multi-year program of this nature. Benchmarking against similar Job Corps center operations would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost predictability, assuming the contractor can effectively manage operational expenses within the agreed price. Without specific performance metrics or detailed cost breakdowns, a precise value assessment is challenging, but the scale suggests a substantial commitment to the program's goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bidders indicates a healthy level of interest and competition for this service. A competitive environment like this typically drives down prices and encourages contractors to offer their best value propositions to secure the award. The number of bidders suggests that the market for operating Job Corps centers is robust enough to support multiple interested parties.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing the most cost-effective solution. It ensures that the government is not limited to a single provider, fostering a market that rewards efficiency and competitive pricing.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment opportunities in the Philadelphia area. The contract supports the delivery of essential workforce development services, including career training, job placement assistance, and support services. The geographic impact is focused on Philadelphia, Pennsylvania, aiming to improve local employment rates and economic mobility. Workforce implications include the creation and sustainment of jobs for instructors, administrative staff, and support personnel at the Job Corps center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational efficiencies are not maintained throughout the contract term.
Risk of service quality degradation if contractor focuses solely on cost containment rather than program effectiveness.
Dependence on a single contractor for a critical workforce development program in Philadelphia.
Ensuring consistent adherence to federal Job Corps program standards and performance metrics.

Positive Signals

The firm-fixed-price contract type incentivizes the contractor to manage costs effectively.
Full and open competition suggests a strong market offering and potential for competitive pricing.
The contract duration allows for stable program delivery and long-term impact on participants.
The specific NAICS code indicates a focus on specialized trade and technical training, aligning with high-demand skills.

Sector Analysis

The operation of Job Corps centers falls within the broader education and workforce development sector, specifically focusing on vocational training. This sector is crucial for equipping individuals with the skills needed for employment in various industries. Comparable spending benchmarks for similar large-scale training and education contracts can vary significantly based on location, program scope, and participant numbers. The market for operating such centers is often characterized by a mix of non-profit organizations, educational institutions, and specialized private companies competing for government contracts.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific base award. This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, Adams and Associates Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within the provided data. Future analysis would need to examine subcontracting reports to assess the extent to which small businesses are involved in fulfilling the contract's requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures are inherent in the firm-fixed-price contract type, which places performance risk on the contractor. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Other Department of Labor Training Programs
Federal Job Corps Centers Nationwide
Vocational Rehabilitation Services

Risk Flags

Potential for cost overruns if operational efficiencies are not maintained.
Risk of service quality degradation if contractor prioritizes profit over program effectiveness.
Ensuring consistent adherence to federal Job Corps program standards.
Dependence on a single contractor for a critical local workforce development program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $38.2 million to ADAMS AND ASSOCIATES INC. OPERATION OF THE PHILADELPHIA JOB CORPS CENTER, WITH OA AND CTS - BASE AWARD

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 $38.2 million.

What is the period of performance?

Start: 2021-12-16. End: 2027-01-31.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly those related to workforce development or educational services?

Adams and Associates Inc. has a history of managing federal contracts, including those related to workforce development and educational services. A review of federal procurement data would reveal their past performance ratings, any past performance issues or awards, and the types of services they have previously provided. For instance, their experience with operating similar centers or managing large-scale training programs would be a key indicator of their capability to successfully execute this Philadelphia Job Corps Center contract. Examining their contract history can highlight their ability to meet performance requirements, manage budgets, and comply with federal regulations, providing insight into their reliability as a contractor.

How does the awarded amount of $38.2 million compare to the operational costs of similar Job Corps centers in other major metropolitan areas?

The awarded amount of $38.2 million for the Philadelphia Job Corps Center over approximately five years represents an average annual cost of roughly $7.64 million. To benchmark this value, one would compare this figure to the operating costs of Job Corps centers in comparable cities, considering factors such as the center's capacity (number of students served), the complexity of training programs offered, and local cost of living. For example, if other centers serving a similar number of students in comparable urban areas have annual operating budgets significantly higher or lower, it could indicate either exceptional value or potential areas for cost savings or increased investment. Detailed analysis would require access to specific operational data for comparable centers.

What are the key performance indicators (KPIs) that will be used to measure the success of the Philadelphia Job Corps Center under this contract?

Key performance indicators for the Philadelphia Job Corps Center contract would likely align with the overarching goals of the Job Corps program. These typically include metrics such as student enrollment rates, program completion rates, the percentage of graduates securing employment within a specified timeframe (e.g., 6 months), average starting wages of placed graduates, and employer satisfaction with placed individuals. Additionally, indicators related to student retention, academic achievement, and the development of specific vocational skills would be crucial. The contract itself should outline these specific KPIs and the targets the contractor must meet, with potential financial incentives or penalties tied to performance against these metrics.

What is the historical spending pattern for the operation of the Philadelphia Job Corps Center, and how does this award compare?

To assess historical spending patterns for the Philadelphia Job Corps Center, one would need to examine prior contract awards for its operation. This would involve looking at previous contract values, durations, and any modifications or task orders issued. For instance, if previous contracts for similar services were significantly lower or higher, it would provide context for the current $38.2 million award. A trend of increasing costs might suggest inflation or expanded services, while a decrease could indicate greater efficiency or reduced scope. Understanding this historical context is vital for evaluating whether the current award represents a fair and reasonable price for the services rendered over its duration.

What specific risks are associated with the firm-fixed-price contract type for this particular service, and how are they mitigated?

The primary risk associated with a firm-fixed-price (FFP) contract for operating a Job Corps center is that the contractor might cut corners on service quality or program effectiveness to maximize profit, especially if unforeseen operational costs arise. Mitigation strategies typically involve robust performance monitoring by the government agency (Department of Labor), clearly defined performance standards and KPIs in the contract, and potentially incentive clauses for exceeding expectations or penalties for failing to meet minimum requirements. Regular site visits, student and employer feedback mechanisms, and detailed performance reporting by the contractor are also crucial for identifying and addressing any potential degradation in service quality early on.

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-20-R-00004

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $53,156,121

Exercised Options: $53,042,520

Current Obligation: $38,200,956

Actual Outlays: $34,386,598

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,182,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline