Department of Labor awards $28.3M contract for Job Corps Center operations to Serrato Corporation

Contract Overview

Contract Amount: $28,316,933 ($28.3M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2022-04-01

End Date: 2026-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $19.4K/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 BLUE RIDGE JOB CORPS CENTER, WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: MARION, SMYTH County, VIRGINIA, 24354

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $28.3 million to SERRATO CORPORATION for work described as: OPERATION OF THE BLUE RIDGE JOB CORPS CENTER, WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. The contract focuses on the operation of the Blue Ridge Job Corps Center, including outreach, admissions, and career transition services. 2. This award represents a significant investment in workforce development and vocational training programs. 3. The contract duration of 1460 days suggests a need for sustained operational support. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The use of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process with specific exclusions. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools.

Value Assessment

Rating: good

The contract value of $28.3 million over approximately four years for operating a Job Corps center appears reasonable when benchmarked against similar federal contracts for workforce development and vocational training services. The firm-fixed-price structure suggests that the contractor, Serrato Corporation, bears the primary risk for cost overruns, which is generally favorable for the government. Without specific per-unit cost data for student services or training modules, a precise value-for-money assessment is challenging, but the overall contract scope aligns with typical government investments in such programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded from consideration. The number of bidders is not explicitly stated, but the 'limited' competition level suggests that fewer than a full and open competition might have participated, potentially impacting the range of proposals received and the ultimate price discovery.

Taxpayer Impact: A limited competition may result in less aggressive pricing compared to a fully open process, potentially leading to higher costs for taxpayers. However, the exclusion of specific sources might be justified by program requirements or past performance considerations.

Public Impact

The primary beneficiaries are individuals seeking vocational training and career development opportunities through the Job Corps program. The contract delivers essential services including outreach, admissions, and career transition support to prepare participants for employment. The geographic impact is centered around the Blue Ridge Job Corps Center in Virginia, serving the local and regional community. Workforce implications include the creation of jobs for instructors, administrators, and support staff at the center, as well as the development of a skilled workforce for various industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to 'exclusion of sources' could impact cost-effectiveness.
The effectiveness of career transition services in securing long-term employment needs ongoing monitoring.
Reliance on a single contractor for core operational services presents a risk if performance falters.

Positive Signals

The firm-fixed-price contract type provides budget certainty for the Department of Labor.
The multi-year duration allows for stable program delivery and participant engagement.
The focus on outreach, admissions, and career transition addresses key components of the Job Corps mission.

Sector Analysis

The contract falls within the Education and Training Services sector, specifically related to vocational and technical education. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. The market for operating such centers involves a mix of non-profit organizations, educational institutions, and private companies specializing in workforce development. The $28.3 million award is a substantial investment, reflecting the comprehensive nature of operating a residential or non-residential training facility.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses, and subcontracting opportunities for small businesses are not explicitly mandated within this award. The impact on the small business ecosystem would likely be minimal unless Serrato Corporation voluntarily engages small businesses for support services.

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). Accountability measures are typically embedded within the contract's performance standards and reporting requirements. Transparency is facilitated through federal contract databases, though specific operational details and performance metrics may not be publicly disclosed. 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

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

Risk Flags

Limited competition may impact price.
Performance monitoring is crucial for service quality.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $28.3 million to SERRATO CORPORATION. OPERATION OF THE BLUE RIDGE JOB CORPS CENTER, WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is SERRATO 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 $28.3 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-03-31.

What is Serrato Corporation's track record in operating Job Corps centers or similar workforce development programs?

Serrato Corporation's track record in operating Job Corps centers or similar workforce development programs is a critical factor in assessing the risk and potential success of this contract. While the provided data does not detail their specific performance history, federal contract databases and agency performance reports would typically contain information on their past performance, including adherence to schedules, quality of services, and client satisfaction. Agencies often evaluate a contractor's past performance, including any instances of contract terminations, disputes, or significant performance issues, during the source selection process. A review of Serrato Corporation's history with the Department of Labor and other federal agencies would provide insight into their capabilities and reliability in managing complex training and operational contracts.

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

A detailed comparison of the per-student cost for the Blue Ridge Job Corps Center contract requires calculating the average cost per participant based on the total contract value and the expected number of students served. The total contract value is $28,316,933.05, and the contract duration is 1460 days (approximately 4 years). To establish a benchmark, one would need to determine the average daily or annual enrollment capacity of the Blue Ridge center and then divide the total contract value by the total number of student-days or student-years anticipated. This figure could then be compared to publicly available data on per-student costs for other Job Corps centers managed by different contractors or to other federal workforce development programs. Variations in cost can be attributed to factors such as the intensity of training, residential versus non-residential services, geographic location, and the specific trades being taught.

What are the key performance indicators (KPIs) used to measure the success of the Blue Ridge Job Corps Center operations under this contract?

The success of the Blue Ridge Job Corps Center operations under this contract is likely measured through a series of Key Performance Indicators (KPIs) established by the Department of Labor. These KPIs typically focus on critical aspects of the Job Corps mission, including student recruitment and retention rates, academic and vocational training completion rates, job placement rates upon graduation, and post-placement employment retention. Other important metrics might include student satisfaction surveys, employer satisfaction with graduates, and the cost-effectiveness of service delivery. The contract's performance work statement (PWS) would detail these specific KPIs, along with the targets and methodologies for measuring performance. Regular reporting by Serrato Corporation against these KPIs would be a primary mechanism for oversight and performance evaluation by the Department of Labor.

What is the historical spending pattern for the operation of the Blue Ridge Job Corps Center or similar facilities by the Department of Labor?

Analyzing the historical spending pattern for the operation of the Blue Ridge Job Corps Center or similar facilities by the Department of Labor provides context for the current $28.3 million award. This involves examining previous contracts awarded for the same or comparable services, noting their values, durations, and the contractors involved. Trends in spending can reveal whether costs have increased, decreased, or remained relatively stable over time. Factors influencing historical spending include inflation, changes in program scope or requirements, competition levels, and the overall federal budget allocated to workforce development. Understanding these patterns helps in assessing whether the current contract represents a reasonable escalation or a significant departure from past investments, and it can inform future budget planning and procurement strategies.

What specific 'sources' were excluded in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and what was the justification?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was intended to be broad, certain potential offerors were deliberately excluded from participating. The specific sources excluded and the justifications for their exclusion are not detailed in the provided data. Typically, such exclusions are based on factors like a demonstrated lack of capability, past performance issues (e.g., significant contract failures, unresolved disputes), failure to meet mandatory pre-qualification criteria, or specific national security or programmatic requirements that only a limited set of entities can fulfill. The justification for exclusion must be documented and defensible to ensure fairness and compliance with federal procurement regulations. Without this specific documentation, it is difficult to assess the impact on competition and pricing.

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-22-R-00002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3443 E FORT LOWELL RD STE 101, TUCSON, AZ, 85716

Business Categories: 8(a) Program Participant, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,798,014

Exercised Options: $40,048,326

Current Obligation: $28,316,933

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,042,106

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline