Department of Labor awards $32.35M contract for educational services to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $32,350,451 ($32.4M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2023-02-24

End Date: 2027-03-31

Contract Duration: 1,496 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CASSADAGA JOB CORPS CENTER W/ OACTS

Place of Performance

Location: CASSADAGA, CHAUTAUQUA County, NEW YORK, 14718

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $32.4 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: CASSADAGA JOB CORPS CENTER W/ OACTS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1496 days indicates a long-term commitment to these services. 3. The firm fixed-price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 5. The contract is for services in New York, potentially impacting the local workforce and economy. 6. The award to a single contractor, Dynamic Educational Systems Inc., warrants a review of performance and value. 7. The absence of small business set-aside flags requires examination of subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $32.35 million over approximately four years suggests a significant investment in educational services. Benchmarking this against similar contracts for job corps centers or vocational training programs would be crucial to assess value for money. The firm fixed-price structure provides cost predictability, but the overall value depends on the quality and effectiveness of the training delivered. Without specific performance metrics or comparisons to other providers, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 9 bidders participating, the level of competition appears robust. A higher number of bidders generally leads to better price discovery and potentially more competitive pricing for the government. The agency's selection process likely involved evaluating technical proposals and pricing from these nine entities.

Taxpayer Impact: The strong competition suggests that taxpayers are likely to benefit from a fair market price for the educational services procured. This competitive environment helps prevent overpayment and encourages efficiency from the winning contractor.

Public Impact

The primary beneficiaries are individuals seeking vocational training and job placement services through the Job Corps program. Services delivered likely include career counseling, skills training, and job placement assistance. The geographic impact is concentrated in New York, where the services will be provided. Workforce implications include the potential for upskilling and employment for program participants, as well as employment for instructors and support staff at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to the long contract duration.
Ensuring consistent quality of training across the contract period.
Monitoring contractor performance to ensure objectives are met.
Assessing the long-term effectiveness of the training programs.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type offers cost certainty.
Multiple bidders (9) suggest a competitive market.
Long contract duration may indicate a stable and reliable service provider.

Sector Analysis

The education and training services sector is vital for workforce development. This contract falls under the broader category of vocational and technical schools, which are essential for equipping individuals with specialized skills demanded by the labor market. The market for such services can be competitive, with various public and private institutions vying for government contracts. Benchmarking against similar contracts for Job Corps centers or other workforce development initiatives would provide context on the scale and pricing of this award.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. It is important to assess whether Dynamic Educational Systems Inc. has a subcontracting plan that includes opportunities for small businesses to participate in delivering these services. The absence of a set-aside does not preclude small business involvement, but it requires proactive monitoring of subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Mechanisms likely include regular performance reviews, financial audits, and adherence to contractual terms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Adult Education and Literacy Programs

Risk Flags

Contract Duration
Performance Monitoring
Small Business Subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.4 million to DYNAMIC EDUCATIONAL SYSTEMS INC. CASSADAGA JOB CORPS CENTER W/ OACTS

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

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 $32.4 million.

What is the period of performance?

Start: 2023-02-24. End: 2027-03-31.

What is the track record of Dynamic Educational Systems Inc. in delivering similar educational services?

A review of Dynamic Educational Systems Inc.'s past performance is crucial for assessing the likelihood of successful contract execution. This would involve examining previous government contracts, particularly those related to vocational training, job placement, or educational program management. Key indicators to look for include on-time delivery, adherence to budget, client satisfaction, and achievement of performance metrics. Information on past performance can often be found in contract award databases or through agency performance evaluations. A history of successful outcomes would increase confidence in the contractor's ability to meet the requirements of this new $32.35 million contract.

How does the per-unit cost of training under this contract compare to industry benchmarks?

Determining the per-unit cost of training requires understanding the specific services provided and the number of individuals expected to be served. For example, if the contract aims to train 1,000 individuals in a specific trade over its duration, the total contract value divided by 1,000 would give a rough per-person cost. This figure then needs to be compared against the average cost of similar vocational training programs offered by other institutions, both public and private, and potentially other government contracts. Factors such as the complexity of the training, duration, and included support services (e.g., job placement assistance) will influence this comparison. A significantly higher per-unit cost without justification could indicate potential value-for-money concerns.

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

Key risks for this contract include potential underperformance by the contractor in delivering quality training, leading to suboptimal participant outcomes and failure to meet program goals. Another risk is cost overruns if the firm fixed-price structure proves inadequate for unforeseen circumstances, though this is less likely with this contract type. Contractor personnel turnover could also disrupt service delivery. Mitigation strategies likely involve robust performance monitoring by the Department of Labor, clear performance standards and metrics outlined in the contract, regular progress reviews, and potentially financial incentives or penalties tied to performance. The competitive award process itself serves as a risk mitigation by selecting a contractor deemed capable.

How effective has the Job Corps program been historically in achieving its stated goals, and how does this contract contribute?

The Job Corps program, a long-standing federal initiative, aims to provide vocational training and education to disadvantaged youth. Its effectiveness has been a subject of ongoing evaluation, with mixed results reported over the years. Studies have shown varying degrees of success in terms of job placement rates, earnings increases for participants, and recidivism reduction. This specific contract with Dynamic Educational Systems Inc. is a component of the broader Job Corps effort. Its contribution to the program's overall effectiveness will depend on the quality of training, the relevance of the skills taught to current labor market demands, and the success rate of participants in securing and retaining employment post-training. Continuous monitoring and evaluation of this contract's outcomes are essential to gauge its contribution.

What is the historical spending trend for similar educational and training services by the Department of Labor?

Analyzing historical spending trends for similar services by the Department of Labor provides context for the current $32.35 million award. This involves examining past contract awards for Job Corps centers, vocational training initiatives, and workforce development programs over several fiscal years. Trends might reveal whether spending in this area is increasing, decreasing, or remaining stable. It also helps identify the typical contract values, durations, and types of contractors the agency frequently engages. Understanding these patterns can highlight whether the current contract is an outlier in terms of size or scope, or if it aligns with established spending patterns for these critical services.

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-00012

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8433 N BLACK CANYON HWY, PHOENIX, AZ, 85021

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

Financial Breakdown

Contract Ceiling: $55,424,903

Exercised Options: $43,857,187

Current Obligation: $32,350,451

Actual Outlays: $27,845,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline