Department of Labor awards $22.2M contract to Heritage Services Corporation for technical and trade school services at Bamberg Job Corps Center

Contract Overview

Contract Amount: $22,211,911 ($22.2M)

Contractor: Heritage Services Corporation

Awarding Agency: Department of Labor

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BAMBERG JOB CORPS CENTER W/ OA CTS

Place of Performance

Location: BAMBERG, BAMBERG County, SOUTH CAROLINA, 29003

State: South Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $22.2 million to HERITAGE SERVICES CORPORATION for work described as: BAMBERG JOB CORPS CENTER W/ OA CTS Key points: 1. The contract value of $22.2 million over three years represents a significant investment in vocational training. 2. Heritage Services Corporation is the sole awardee, highlighting a specific capability or market dynamic. 3. The firm-fixed-price contract structure aims to control costs for the government. 4. This spending supports the Department of Labor's mission to provide job training and employment opportunities.

Value Assessment

Rating: fair

The contract value of $22.2 million for a 3-year period averages approximately $7.4 million annually. Benchmarking against similar contracts for vocational training centers is difficult without more specific service details, but this appears to be a substantial allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific criteria that may have limited the pool of eligible bidders. This method aims for fair pricing while ensuring specialized needs are met.

Taxpayer Impact: Taxpayers are funding essential job training programs, aiming for long-term economic benefits through workforce development. The firm-fixed-price nature helps ensure predictable costs.

Public Impact

Provides critical vocational training and job placement services for individuals seeking new career paths. Supports the economic development of South Carolina by enhancing the local workforce's skills. Contributes to the Department of Labor's broader mission of workforce development and reducing unemployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not have yielded the absolute lowest price.
Specific performance metrics and outcomes are not detailed, making effectiveness assessment challenging.
Reliance on a single contractor for essential services could pose a risk if performance falters.

Positive Signals

Addresses a clear need for technical and trade education.
Firm-fixed-price contract provides cost certainty.
Long-term contract duration allows for program stability.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' NAICS code (611519). Spending in this sector is driven by government initiatives for workforce development and education. Benchmarks vary widely based on program scope and location.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this larger award.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight procedures for federal contracts should apply, including performance monitoring and compliance checks.

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
Lack of detailed performance metrics
Potential for contractor performance issues
Dependence on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $22.2 million to HERITAGE SERVICES CORPORATION. BAMBERG JOB CORPS CENTER W/ OA CTS

Who is the contractor on this award?

The obligated recipient is HERITAGE SERVICES 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 $22.2 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What specific vocational skills and certifications are provided under this contract, and how do they align with current labor market demands?

The contract supports 'Other Technical and Trade Schools' (NAICS 611519), implying a range of vocational training. Without further details, it's unclear which specific skills are prioritized. Alignment with labor market demands is crucial for program effectiveness and ensuring graduates find employment. The Department of Labor should track placement rates and employer feedback to ensure relevance.

What were the key factors that led to the 'exclusion of sources' in the competition, and how did this impact the final price?

The exclusion of sources suggests that only specific entities met the stringent requirements, possibly related to specialized expertise, past performance, or unique facilities required for the Job Corps program. While this ensures capability, it can limit price competition. The impact on the final price depends on how many qualified bidders remained and the negotiation process.

How will the effectiveness of the training programs be measured to ensure taxpayer funds are yielding desired employment outcomes?

Effectiveness is typically measured through metrics such as student completion rates, graduation rates, job placement percentages, and post-placement wages. The Department of Labor should establish clear Key Performance Indicators (KPIs) with Heritage Services Corporation and regularly review performance data. Feedback from employers and former students can also provide valuable insights into program quality and relevance.

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-22-R-00023

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2428 CLEARLAKE RD BLDG M, COCOA, FL, 32922

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

Financial Breakdown

Contract Ceiling: $45,052,990

Exercised Options: $27,011,143

Current Obligation: $22,211,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline