Department of Labor awards $60M contract for Puerto Rico Job Corps centers, focusing on career services

Contract Overview

Contract Amount: $60,074,989 ($60.1M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2023-02-06

End Date: 2027-02-28

Contract Duration: 1,483 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE PUERTO RICO JOB CORPS CENTERS WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: AGUADILLA, AGUADILLA County, PUERTO RICO, 00603

Plain-Language Summary

Department of Labor obligated $60.1 million to ARBOR E & T LLC for work described as: OPERATION OF THE PUERTO RICO JOB CORPS CENTERS WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract aims to enhance job training and career transition services for participants. 2. Performance period spans over four years, indicating a long-term commitment to the program. 3. The contract is a definitive contract, suggesting a well-defined scope of work. 4. Fixed-price structure provides cost certainty for the government. 5. The award is for operation of Job Corps centers, a critical workforce development initiative. 6. Focus on outreach, admissions, and career transition highlights a comprehensive service model.

Value Assessment

Rating: good

The contract value of approximately $60 million over four years suggests a significant investment in workforce development for Puerto Rico. Benchmarking against similar Job Corps center operations would provide a clearer picture of value for money. The fixed-price nature of the contract helps control costs, but ongoing monitoring of service delivery and outcomes is crucial to ensure effectiveness. Without specific cost breakdowns or comparable contract data, a precise value assessment is challenging, but the scale indicates a substantial program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair pricing and encourage innovation. The presence of four bidders suggests a reasonably competitive market for these services. The level of competition is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds. Full and open competition increases the likelihood of cost-effective service delivery for essential workforce development programs.

Public Impact

Residents of Puerto Rico seeking job training and career development services are the primary beneficiaries. The contract supports the operation of Job Corps centers, delivering critical education and vocational training. Services include outreach, admissions, and career transition assistance to help individuals secure employment. The geographic impact is focused on Puerto Rico, addressing local workforce needs. The contract has implications for the local workforce, potentially creating jobs within the Job Corps centers and supporting the career paths of trainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of training and placement services across all centers.
Monitoring contractor performance to guarantee adherence to program goals and participant outcomes.
Assessing the long-term impact of training on participant employment and earning potential.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Fixed-price contract provides cost predictability.
Long-term contract duration allows for sustained program operations and impact.
Focus on comprehensive services from outreach to career transition.

Sector Analysis

This contract falls within the education and workforce development sector, specifically focusing on vocational training and career services. The Job Corps program is a significant federal initiative aimed at preparing young people for employment. The market for operating such centers involves educational institutions, non-profits, and private companies specializing in workforce solutions. The contract value is substantial for this niche, reflecting the comprehensive nature of the services required.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit indication of a small business set-aside. The prime contractor, ARBOR E & T LLC, is likely a larger entity. Future analysis could explore subcontracting opportunities for small businesses within the scope of this contract, particularly in specialized training areas or local support services, to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be conducted by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures would be tied to performance metrics outlined in the contract, focusing on participant enrollment, training completion, and job placement rates. Transparency is generally maintained through federal contract databases and program reporting requirements.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) programs
Other Federal Job Training Programs
State Workforce Development Initiatives
Vocational Rehabilitation Services

Risk Flags

Performance Risk: Ensuring consistent quality and outcomes over the contract duration.
Cost Management: Monitoring if the fixed price remains competitive throughout the term.
Adaptability: Ensuring training programs remain relevant to evolving labor market needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $60.1 million to ARBOR E & T LLC. OPERATION OF THE PUERTO RICO JOB CORPS CENTERS WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is ARBOR E & T 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 $60.1 million.

What is the period of performance?

Start: 2023-02-06. End: 2027-02-28.

What is the historical spending pattern for Puerto Rico Job Corps center operations?

Historical spending data for Puerto Rico Job Corps center operations prior to this award would provide valuable context. Analyzing previous contract values, durations, and awarded contractors can reveal trends in program investment and contractor stability. For instance, if previous contracts were significantly smaller or awarded to different entities, it might indicate an expansion of services or a shift in program strategy. Understanding past spending helps in evaluating the current $60 million award as a continuation, expansion, or a new baseline for services. Without specific historical data, it's difficult to ascertain if this award represents an increase or decrease in federal investment in these services for Puerto Rico.

How does the per-participant cost of this contract compare to other Job Corps centers nationally?

To assess the value for money, a comparison of the per-participant cost under this contract against national averages for Job Corps centers is essential. The total contract value is approximately $60 million, and the duration is roughly 4 years (1483 days). The number of participants served is a key variable for this calculation. If the contract serves a significant number of participants, the per-participant cost might be competitive. Conversely, a high per-participant cost could indicate inefficiencies or a higher cost of service delivery in Puerto Rico. Benchmarking against similar contracts, considering regional economic factors and the specific services provided, is crucial for a comprehensive value assessment.

What are the key performance indicators (KPIs) for ARBOR E & T LLC under this contract?

Key performance indicators for ARBOR E & T LLC under this contract would likely focus on critical aspects of the Job Corps program's mission. These typically include metrics related to outreach and admissions (e.g., number of inquiries, applications processed, enrollment rates), training completion rates (e.g., percentage of students completing vocational programs), and career transition services (e.g., job placement rates, starting wages of placed graduates, retention in employment). The Department of Labor would establish specific targets for these KPIs, and contractor performance would be evaluated against them. Success in meeting these KPIs is fundamental to ensuring the contract delivers effective workforce development outcomes.

What is the track record of ARBOR E & T LLC in managing similar federal contracts?

ARBOR E & T LLC's track record in managing similar federal contracts, particularly those involving workforce development and educational services, is a critical factor in assessing performance risk. Information on their past performance, including previous contracts with the Department of Labor or other agencies, their success in meeting contract requirements, and any past performance issues or disputes, would provide insight into their capabilities. A history of successful contract execution suggests a lower risk of performance failure. Conversely, a history of issues might warrant closer scrutiny of their operational plans and oversight mechanisms for this specific contract.

What are the potential risks associated with the long duration of this contract (nearly 4 years)?

The long duration of this contract (1483 days, approximately 4 years) presents several potential risks. Firstly, the cost-effectiveness may diminish over time if market conditions or program needs change significantly, and the fixed-price nature might not adapt well to unforeseen economic shifts. Secondly, contractor performance could degrade over an extended period without rigorous, ongoing oversight. Thirdly, technological advancements or changes in labor market demands might render current training curricula outdated, requiring significant adaptation efforts. Finally, a long-term commitment could limit the government's flexibility to pivot to new or more effective program models if they emerge during the contract period.

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-00024

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 N WHITTINGTON PKWY, LOUISVILLE, KY, 40222

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

Financial Breakdown

Contract Ceiling: $95,957,485

Exercised Options: $76,529,490

Current Obligation: $60,074,989

Actual Outlays: $52,329,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline