Labor Department awards $43.5M contract for technical and trade school services to ODLE MANAGEMENT GROUP, L.L.C

Contract Overview

Contract Amount: $43,528,661 ($43.5M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2022-06-01

End Date: 2026-06-30

Contract Duration: 1,490 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OLD DOMINION JCC

Place of Performance

Location: MONROE, AMHERST County, VIRGINIA, 24574

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $43.5 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: OLD DOMINION JCC Key points: 1. The contract's firm fixed-price structure aims to provide cost certainty for the government. 2. With 9 bidders, the competition level suggests a reasonably competitive market for these services. 3. The contract duration of approximately 4 years presents a moderate-term commitment. 4. The services fall under 'Other Technical and Trade Schools,' indicating a focus on vocational training. 5. The award to ODLE MANAGEMENT GROUP, L.L.C. represents a significant investment in workforce development. 6. The contract's value of over $43 million warrants close monitoring for performance and value. 7. The 'VA' (Virginia) state code suggests the primary performance location is within Virginia.

Value Assessment

Rating: good

The contract value of $43.5 million for technical and trade school services appears to be within a reasonable range for a multi-year federal contract of this nature. Benchmarking against similar contracts would require access to a broader dataset of technical training procurements. However, the firm fixed-price type suggests that the contractor has assumed the risk of cost overruns, which can be a positive indicator of value if performance is met. Further analysis would involve comparing the specific services delivered against the price paid and assessing if the outcomes align with government objectives for workforce development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 9 bidders participating. This indicates a healthy level of interest and a competitive marketplace for the services sought. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery. The broad participation suggests that the government received competitive offers, maximizing the potential for value.

Public Impact

The primary beneficiaries are individuals seeking technical and trade skills development, potentially leading to improved employment opportunities. The services delivered likely include vocational training, certification programs, and career counseling. The geographic impact is primarily focused on Virginia, where the contract is registered to be performed. Workforce implications include the potential for upskilling and reskilling the labor force in technical trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training objectives are not clearly defined and managed.
Ensuring the quality and relevance of training programs to current industry demands.
Monitoring contractor performance to ensure adherence to the firm fixed-price agreement and prevent cost overruns.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market and potential for good value.
The contract supports workforce development initiatives, aligning with government priorities.

Sector Analysis

The technical and trade school sector is a critical component of workforce development, providing specialized skills training that complements traditional education. Federal spending in this area often supports initiatives aimed at upskilling the labor force, addressing specific industry needs, and promoting economic mobility. Comparable spending benchmarks would involve analyzing other federal contracts for vocational training, apprenticeship programs, and technical education services across various agencies. The market size for such services is substantial, driven by ongoing demand for skilled labor in fields like advanced manufacturing, healthcare support, and information technology.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contract was awarded under full and open competition, suggesting that large businesses were likely among the bidders. Further investigation into subcontracting plans would be necessary to determine the extent to which small businesses may participate in fulfilling the contract requirements. The impact on the small business ecosystem would depend on whether opportunities are created through subcontracting or if the scale of the contract primarily favors larger entities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures would be tied to the performance standards outlined in the contract, with regular reviews and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Department of Labor Training and Employment Guidance Letters (TEGLs)
Federal Acquisition Regulation (FAR) Part 37 - Service Contracting
Department of Labor Apprenticeship Programs

Risk Flags

Contract performance risk
Cost overrun risk (for contractor)
Relevance of training curriculum risk
Low trainee completion/placement rate risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.5 million to ODLE MANAGEMENT GROUP, L.L.C.. OLD DOMINION JCC

Who is the contractor on this award?

The obligated recipient is ODLE MANAGEMENT GROUP, L.L.C..

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 $43.5 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-06-30.

What is the track record of ODLE MANAGEMENT GROUP, L.L.C. in performing similar federal contracts?

A review of past performance for ODLE MANAGEMENT GROUP, L.L.C. is crucial for assessing their capability to successfully execute this $43.5 million contract. While the provided data indicates this is a definitive contract awarded in June 2022, it does not detail their history with the federal government. Further research into federal procurement databases would be necessary to identify previous contracts awarded to this entity, their values, the agencies involved, and performance ratings. Understanding their experience with similar technical and trade school services, their on-time delivery record, and any past performance issues or commendations will provide critical insights into their reliability and suitability for this significant award. Without this historical context, the assessment of risk associated with the contractor remains incomplete.

How does the awarded amount compare to the average cost of similar technical and trade school services procured by the federal government?

The $43.5 million awarded to ODLE MANAGEMENT GROUP, L.L.C. for technical and trade school services represents a substantial investment. To benchmark this value, one would need to analyze historical data on similar federal contracts. This would involve identifying contracts with comparable scope, duration, and service offerings (e.g., vocational training, certification programs) across different agencies. Factors such as the number of individuals served, the specific trades or skills taught, and the geographic region of service delivery would need to be considered for a fair comparison. The firm fixed-price nature of this contract suggests a defined cost structure, but understanding the average cost per trainee or per program completion would offer a more granular perspective on value for money. Without access to a comprehensive database of comparable contracts, it is difficult to definitively state whether this award is high, low, or average.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential issues with the quality and relevance of the training programs, ensuring adequate student enrollment and completion rates, and managing the contractor's performance to meet contractual obligations. Given the firm fixed-price structure, a significant risk for the contractor is cost overruns if they underestimate the resources required. For the government, risks include the possibility that the training does not lead to desired employment outcomes or that the skills taught become obsolete quickly. Mitigation strategies would involve robust government oversight, clear performance metrics, regular progress reviews, and potentially incorporating feedback mechanisms from trainees and employers. The full and open competition with 9 bidders may mitigate pricing risks, but ongoing performance monitoring is essential.

How effective is the Department of Labor likely to be in overseeing this contract and ensuring program success?

The Department of Labor, through its Office of the Assistant Secretary for Administration and Management (OASAM), is responsible for overseeing this contract. Their effectiveness will depend on several factors, including the adequacy of their contracting staff's expertise in managing technical training services, the clarity of the contract's performance work statement (PWS), and the resources allocated for contract administration and quality assurance. The agency's established procurement processes and experience with service contracts suggest a baseline level of oversight capability. However, the success of the program ultimately hinges on diligent monitoring of contractor performance against defined metrics, timely intervention in case of issues, and ensuring that the training provided aligns with labor market demands and contributes to the workforce development goals of the Department.

What are the historical spending patterns for technical and trade school services by the Department of Labor or similar agencies?

Historical spending patterns for technical and trade school services by the Department of Labor and similar agencies are generally driven by federal workforce development initiatives, such as those funded under the Workforce Innovation and Opportunity Act (WIOA). Agencies like the Department of Labor, as well as the Department of Veterans Affairs (for GI Bill beneficiaries) and the Department of Education, allocate significant funds to vocational training and skill development. Spending can fluctuate based on economic conditions, legislative priorities, and the specific needs of different industries. Analyzing past spending data would reveal trends in contract values, types of services procured, and the primary contractors. This contract's $43.5 million value should be viewed within the context of these broader historical investments in workforce training.

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-21-R-00012

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

Address: 9937 E BELL RD STE 110, SCOTTSDALE, AZ, 85260

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,715,078

Exercised Options: $50,603,280

Current Obligation: $43,528,661

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline