Labor Department awards $41.9M contract for Northlands Job Corps Center operations to Education & Training Resources LLC

Contract Overview

Contract Amount: $41,950,196 ($42.0M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2022-04-28

End Date: 2027-05-31

Contract Duration: 1,859 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE NORTHLANDS JOB CORPS CENTER/OA/CTS

Place of Performance

Location: VERGENNES, ADDISON County, VERMONT, 05491

State: Vermont Government Spending

Plain-Language Summary

Department of Labor obligated $42.0 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE NORTHLANDS JOB CORPS CENTER/OA/CTS Key points: 1. The contract value of $41.9M over approximately 5 years represents a significant investment in workforce development. 2. Competition was conducted under 'Full and Open Competition After Exclusion of Sources', suggesting a specific justification for limiting initial bidders. 3. The 'Firm Fixed Price' contract type aims to control costs, but the effectiveness depends on accurate initial pricing. 4. The sector is 'Other Technical and Trade Schools', a niche area focused on vocational training and job placement.

Value Assessment

Rating: fair

The contract value of $41.9M over 1859 days averages to approximately $22,566 per day. Benchmarking this against similar Job Corps center operations would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method implies that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery and the final negotiated price.

Taxpayer Impact: The total taxpayer impact is the full $41.9M, allocated for the operation of the Job Corps center and its training programs.

Public Impact

Provides essential job training and career services to individuals in Vermont. Supports local employment and economic development through workforce readiness. Impacts the effectiveness of federal job training initiatives and student outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method raises questions about optimal price discovery.
Lack of small business participation noted.

Positive Signals

Firm Fixed Price contract aims for cost certainty.
Long-term contract provides stability for program operations.

Sector Analysis

The 'Other Technical and Trade Schools' sector, classified under NAICS code 611519, focuses on vocational training. Spending in this area is critical for addressing skills gaps and preparing individuals for specific industries. Benchmarks for similar Job Corps center contracts would provide further context.

Small Business Impact

The data indicates that small businesses were not a direct participant in this contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract is managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight would focus on program performance, financial management, and adherence to contract terms to ensure effective use of taxpayer funds.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Limited competition method.
No direct small business participation.
Potential for price inflation due to source exclusion.
Need for detailed performance metrics to ensure effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $42.0 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE NORTHLANDS JOB CORPS CENTER/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 $42.0 million.

What is the period of performance?

Start: 2022-04-28. End: 2027-05-31.

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The justification for excluding sources typically relates to specific technical requirements, past performance, or unique capabilities needed for the contract. Without this specific justification, it's difficult to definitively assess the price impact. However, excluding potential competitors can limit the competitive pressure, potentially leading to a higher price than if a broader range of sources had been considered.

How does the $41.9M contract value compare to the operational costs of similar Job Corps centers nationwide, considering the duration and scope of services?

A direct comparison of the $41.9M contract value requires detailed data on the scope of services, student enrollment, and operational complexities of other Job Corps centers. The average daily cost of approximately $22,566 provides a starting point, but variations in regional labor costs, program offerings, and facility requirements can significantly influence total contract values, making a simple benchmark challenging without further context.

What performance metrics are in place to ensure the effectiveness of the training programs and the successful placement of students into employment?

Effective oversight of this contract would necessitate clearly defined performance metrics tied to student completion rates, skill acquisition, and post-program employment outcomes. The Department of Labor would likely monitor these metrics to ensure the Job Corps center is meeting its objectives and providing value for the federal investment. Regular reporting and performance reviews are crucial for accountability.

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-00016

Offers Received: 2

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: $55,377,543

Exercised Options: $55,277,543

Current Obligation: $41,950,196

Actual Outlays: $35,825,077

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $4,455,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline