Department of Labor awards $68.1M contract for Job Corps Center operations, with 6 bidders vying for the deal

Contract Overview

Contract Amount: $68,123,231 ($68.1M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2022-06-29

End Date: 2026-06-30

Contract Duration: 1,462 days

Daily Burn Rate: $46.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS OF THE EDISON JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: EDISON, MIDDLESEX County, NEW JERSEY, 08817

State: New Jersey Government Spending

Plain-Language Summary

Department of Labor obligated $68.1 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATIONS OF THE EDISON JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on essential operations, outreach, admissions, and career transition services for the Edison Job Corps Center. 2. A firm-fixed-price structure suggests predictable costs for the government, though it places cost risk on the contractor. 3. The award was made under full and open competition, indicating a broad market solicitation. 4. The duration of the contract is over three years, suggesting a need for sustained service delivery. 5. The contractor, Management & Training Corporation, has experience in managing similar educational and training programs. 6. The contract's value is substantial, reflecting the comprehensive nature of Job Corps services.

Value Assessment

Rating: good

The contract value of approximately $68.1 million over roughly four years (2022-2026) averages to about $17 million annually. Benchmarking this against similar Job Corps center operations requires detailed cost breakdowns, but the number of bidders suggests a competitive environment that likely drove a reasonable price. The firm-fixed-price nature means the government pays a set amount, which is generally favorable for budget predictability. However, a full value-for-money assessment would need to compare the specific services and outcomes delivered against the cost, considering contractor performance history.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. Six bidders participated in the solicitation process. This level of competition is generally positive as it encourages multiple companies to offer their best pricing and service proposals to win the contract, potentially leading to better value for the government.

Taxpayer Impact: The full and open competition with six bidders suggests that taxpayers are likely benefiting from competitive pricing and a wider range of service options. This process helps ensure that the contract is awarded to the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are students enrolled in the Edison Job Corps Center, who will receive training and support services. The contract ensures the continued operation of critical workforce development programs, including outreach, admissions, and career transition assistance. The services delivered aim to equip young individuals with the skills and experience needed for successful employment. The geographic impact is focused on New Jersey, where the Edison Job Corps Center is located, serving the local youth population. Workforce implications include the creation and maintenance of jobs for the contractor's employees who deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed-price bid does not adequately account for all operational expenses.
Ensuring consistent quality of training and support services across the contract duration.
Monitoring contractor performance to ensure adherence to program goals and student success metrics.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Contractor has experience in managing similar educational and training programs.
Multiple bidders (6) suggest a competitive market for these services.

Sector Analysis

The Job Corps program falls within the broader education and workforce development sector, specifically focusing on vocational training for at-risk youth. This sector is characterized by government funding and a mix of non-profit and for-profit providers. The market size for such services is significant, driven by federal and state initiatives aimed at improving employment outcomes. This contract represents a key component of the Department of Labor's efforts to deliver these vital services through established training centers.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Management & Training Corporation, there is no explicit information on subcontracting goals for small businesses within this award. Further analysis would be needed to determine if the prime contractor has a history of engaging small businesses in their supply chain or if there are opportunities for small businesses to participate in supporting roles for this contract.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures would typically involve performance metrics, reporting requirements, and regular reviews of the contractor's operations. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be proprietary. 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
Department of Labor Training Programs
Vocational Education Contracts
Youth Employment Services

Risk Flags

Contract Duration
Performance Monitoring
Cost Control

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $68.1 million to MANAGEMENT & TRAINING CORPORATION. OPERATIONS OF THE EDISON JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $68.1 million.

What is the period of performance?

Start: 2022-06-29. End: 2026-06-30.

What is the track record of Management & Training Corporation in operating Job Corps centers?

Management & Training Corporation (MTC) is a significant operator of Job Corps centers and other correctional and detention facilities. They have a long history of managing government contracts, including those for Job Corps. Their experience typically involves providing comprehensive services such as academic and vocational training, health and wellness, career counseling, and job placement assistance. While MTC generally has a solid operational record, like any large contractor, they may have faced specific performance reviews or challenges on certain contracts. A detailed review of their performance history with the Department of Labor and other agencies would be necessary to fully assess their track record for this specific contract, looking at metrics like student completion rates, job placement success, and compliance with federal regulations.

How does the annual cost of this contract compare to other Job Corps center operations?

The annual value of this contract is approximately $17 million ($68.1M / ~4 years). To benchmark this effectively against other Job Corps center operations, one would need to compare it with contracts for centers of similar size, student capacity, and geographic location. Factors influencing cost include the scope of vocational training offered, the intensity of support services, and local labor costs. Without specific data on comparable centers, it's difficult to definitively state if $17 million per year is high or low. However, the fact that it was awarded under full and open competition with six bidders suggests that the price was considered competitive within the market for these services.

What are the primary risks associated with this firm-fixed-price contract for Job Corps operations?

The primary risk associated with a firm-fixed-price (FFP) contract for Job Corps operations lies with the contractor, Management & Training Corporation (MTC). If MTC's operational costs exceed their fixed price due to unforeseen circumstances, such as rising labor costs, increased student needs, or unexpected facility maintenance, their profit margin will be reduced, or they could incur a loss. For the government, the risk is that the contractor might cut corners on service quality or staffing to maintain profitability if costs escalate beyond their initial projections. Effective oversight by the Department of Labor is crucial to mitigate this risk by monitoring performance and ensuring that the quality of services remains high despite the cost pressures on the contractor.

What are the expected outcomes and program effectiveness indicators for this contract?

The expected outcomes for this contract are centered on the successful training and placement of Job Corps students into meaningful employment or further education. Key program effectiveness indicators would likely include student retention rates, academic achievement (e.g., GED attainment), vocational certification attainment, job placement rates post-graduation, and the average wages earned by placed graduates. The Department of Labor would monitor these metrics to assess the contractor's performance and the overall effectiveness of the Edison Job Corps Center. Success in these areas indicates that taxpayer funds are being used efficiently to provide valuable workforce development services.

How has federal spending on Job Corps center operations trended historically?

Federal spending on the Job Corps program has historically been substantial, reflecting its role as a key federal initiative for youth workforce development. Funding levels can fluctuate based on congressional appropriations, administration priorities, and economic conditions. Over the years, the program has undergone various reforms and evaluations aimed at improving efficiency and effectiveness. While specific year-over-year spending trends for individual centers are not readily available in summary form, the overall budget for Job Corps generally aims to serve a significant number of young people across numerous centers nationwide. Recent trends may reflect efforts to modernize training curricula and adapt to changing labor market demands.

What is the significance of the 'Other Technical and Trade Schools' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' signifies the primary business activity the contractor is engaged in for this contract. This code encompasses establishments primarily engaged in providing instruction in a combination of subjects and for which the completion of a specific curriculum is required, but that are not classified as colleges, universities, or secondary schools. For the Edison Job Corps Center, this means the contract covers the provision of vocational and technical training, which is the core mission of Job Corps. It helps categorize the type of services procured and allows for comparison with other similar educational service providers within the federal procurement landscape.

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-22-R-00001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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: $92,916,456

Exercised Options: $73,698,611

Current Obligation: $68,123,231

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,051,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline