Department of Labor awards $10.4M contract for Job Corps Center operations, with 7 bidders vying for the opportunity

Contract Overview

Contract Amount: $10,437,334 ($10.4M)

Contractor: Insights Training Group, LLC

Awarding Agency: Department of Labor

Start Date: 2022-01-26

End Date: 2027-01-31

Contract Duration: 1,831 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE MUHLENBERG JOB CORPS CENTER WITH OA AND CTS BASE AWARD

Place of Performance

Location: GREENVILLE, MUHLENBERG County, KENTUCKY, 42345

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $10.4 million to INSIGHTS TRAINING GROUP, LLC for work described as: OPERATION OF THE MUHLENBERG JOB CORPS CENTER WITH OA AND CTS BASE AWARD Key points: 1. The contract value of $10.4 million over five years suggests a moderate annual spend for operating a Job Corps center. 2. With 7 bidders, the competition level indicates a healthy market interest in providing these services. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract's duration of over 1800 days provides stability for the contractor and continuity of services. 5. The NAICS code 611519 points to specialized technical and trade school services, a key component of the Job Corps program. 6. The award to INSIGHTS TRAINING GROUP, LLC signifies a specific provider has been selected to manage the Muhlenberg center.

Value Assessment

Rating: good

The total award of $10.4 million over approximately five years translates to an annual value of roughly $2 million. Benchmarking this against other Job Corps center operations requires access to specific contract data for similar facilities. However, the firm-fixed-price nature of the contract suggests that the pricing was determined upfront and is intended to be cost-effective, assuming the scope of work is well-defined and achievable within the agreed-upon price. Without direct cost comparisons for identical services, a precise value-for-money assessment is challenging, but the competitive bidding process likely contributed to a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised, and multiple sources were allowed to submit proposals. The presence of 7 bidders suggests a robust level of competition for this contract. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors are incentivized to offer competitive pricing to win the award. The exclusion of sources clause might indicate specific requirements or prior considerations that led to a particular procurement path, but the core competition was open.

Taxpayer Impact: The open competition with 7 bidders is beneficial for taxpayers as it likely drove down the final contract price through competitive pressures. This ensures that government funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

The primary beneficiaries are the students enrolled in the Muhlenberg Job Corps Center, who will receive training and support services. The contract ensures the continued operation of essential services for youth development and workforce readiness. The geographic impact is focused on the Muhlenberg region in Kentucky, providing local employment and economic activity. The contract supports the workforce development goals of the Department of Labor by equipping individuals with job skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance variability impacting student outcomes.
Ensuring consistent quality of training and support services across the contract duration.
Monitoring adherence to program standards and federal regulations for Job Corps centers.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Competitive bidding process suggests a market-driven price.
Long-term contract duration offers service continuity.

Sector Analysis

The operation of Job Corps centers falls within the broader education and workforce development sector, specifically under vocational and technical training services. This contract is for the operation of a specific center, which is a common model for the Job Corps program. The market for such services includes educational institutions, non-profit organizations, and private companies specializing in workforce training. The annual spending on Job Corps centers nationally represents a significant investment in youth employment and training, with individual center contracts varying based on size and scope.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While there is no explicit small business set-aside, the prime contractor, INSIGHTS TRAINING GROUP, LLC, may still engage small businesses as subcontractors. The level of subcontracting to small businesses will depend on the prime contractor's strategy and the availability of qualified small business providers for specific services required to operate the center. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). They are responsible for ensuring the contractor meets performance requirements, adheres to federal regulations, and manages the Job Corps center effectively. Accountability measures are typically embedded in the contract through performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract awards databases and public reporting, though detailed operational performance data may not always be publicly accessible.

Related Government Programs

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

Risk Flags

Potential for performance variability impacting student outcomes.
Ensuring consistent quality of training and support services.
Monitoring adherence to program standards and federal regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $10.4 million to INSIGHTS TRAINING GROUP, LLC. OPERATION OF THE MUHLENBERG JOB CORPS CENTER WITH OA AND CTS BASE AWARD

Who is the contractor on this award?

The obligated recipient is INSIGHTS TRAINING GROUP, 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 $10.4 million.

What is the period of performance?

Start: 2022-01-26. End: 2027-01-31.

What is the track record of INSIGHTS TRAINING GROUP, LLC in managing federal contracts, particularly those related to education or workforce development?

A thorough review of federal contract databases and performance reports would be necessary to fully assess INSIGHTS TRAINING GROUP, LLC's track record. Information on past performance, including successful contract completions, any past disputes or terminations, and client feedback, is crucial. For contracts similar to Job Corps center operations, their experience in managing large-scale training programs, student recruitment, curriculum delivery, and placement services would be key indicators of their capability. Without specific historical data on this contractor's performance in similar roles, it is difficult to provide a definitive assessment of their reliability and effectiveness.

How does the annual cost per student for this Muhlenberg Job Corps Center compare to national averages or similar centers?

To compare the cost per student, we would need to know the projected number of students served by the Muhlenberg Job Corps Center under this contract and the total contract value allocated for student services. The total award is $10.4 million over approximately 1831 days (roughly 5 years), averaging about $2 million per year. If the center serves, for example, 200 students annually, the cost per student would be around $10,000 per year. National averages for Job Corps can vary significantly based on location, program intensity, and support services provided. A detailed comparison would require accessing specific enrollment numbers and cost breakdowns for comparable centers across the Job Corps network.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate the contractor's success in operating the Muhlenberg Job Corps Center?

The contract likely includes specific performance metrics and KPIs designed to measure the contractor's effectiveness in achieving the goals of the Job Corps program. These typically encompass areas such as student enrollment and retention rates, academic and vocational training completion rates, job placement success post-graduation, and employer satisfaction with placed graduates. The Department of Labor would establish these KPIs, and the contractor's performance against them would be regularly monitored and reported. Failure to meet these metrics could result in contractual remedies, including potential financial penalties or even contract termination.

What is the historical spending trend for the operation of the Muhlenberg Job Corps Center or similar facilities by the Department of Labor?

Analyzing historical spending for the Muhlenberg Job Corps Center would involve examining past contract awards for its operation. If this is a new center or a new contract for an existing center, historical data might be limited. However, for established centers, one would look for trends in contract values, competition levels, and contractor changes over several years. This analysis helps identify patterns of increasing or decreasing costs, shifts in procurement strategies (e.g., from sole-source to competitive), and the stability of service providers. Understanding these trends provides context for the current $10.4 million award and its alignment with past investments.

What is the risk associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while aiming for broad competition, introduces a specific risk. The 'exclusion of sources' implies that certain potential bidders were intentionally not considered, possibly due to specific pre-qualification criteria, prior performance issues, or unique requirements of the service. While the competition itself was open among the remaining eligible sources (7 bidders in this case), the exclusion might limit the pool of potential offerors, potentially reducing the overall competitive pressure compared to a truly unrestricted full and open competition. The risk lies in whether this exclusion inadvertently prevented a more capable or cost-effective provider from participating.

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: 1605JE-21-R-00008

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 327 N MAIN ST, MARION, VA, 24354

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $58,921,884

Exercised Options: $34,820,589

Current Obligation: $10,437,334

Actual Outlays: $46,672,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline