Department of Labor awards $26.6M contract for job training services to Arbor E & T LLC

Contract Overview

Contract Amount: $26,652,473 ($26.7M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2023-09-16

End Date: 2025-09-30

Contract Duration: 745 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WOODSTOCK JOB CORPS CENTER CTR OPS, O/A, CTS

Place of Performance

Location: WOODSTOCK, BALTIMORE County, MARYLAND, 21163

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $26.7 million to ARBOR E & T LLC for work described as: WOODSTOCK JOB CORPS CENTER CTR OPS, O/A, CTS Key points: 1. Contract value represents a significant investment in vocational training. 2. Arbor E & T LLC is the sole awardee, raising questions about competition. 3. The contract duration of over two years suggests a need for sustained services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award falls within the 'Other Technical and Trade Schools' NAICS code. 6. Geographic focus on Maryland indicates a localized impact for training services.

Value Assessment

Rating: fair

The contract value of $26.6 million for job training services appears substantial. Benchmarking against similar contracts for vocational training centers is necessary to determine if this represents good value for money. Without comparative data on per-student costs or program outcomes, it's difficult to definitively assess the pricing and value proposition. The fixed-price nature of the contract provides some cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, only one award was made to Arbor E & T LLC. Further details on the number of bids received and the evaluation process would be needed to fully understand the competitive landscape and its impact on price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to lower costs for the government.

Public Impact

The primary beneficiaries are individuals seeking vocational training and job placement services. The contract will deliver educational and training services aimed at improving workforce skills. Services are geographically focused within Maryland. The contract is expected to impact the local workforce by providing training and potentially creating jobs for instructors and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bids received under full and open competition.
Need for clear performance metrics to ensure program effectiveness and value for money.
Potential for cost overruns if fixed-price contract does not account for all contingencies.

Positive Signals

Awarded under full and open competition, indicating an attempt to solicit broad market interest.
Fixed-price contract type can provide budget certainty for the government.
Longer contract duration suggests a commitment to sustained job training initiatives.

Sector Analysis

This contract falls within the education and training sector, specifically focusing on vocational and technical skills development. The market for such services is driven by government initiatives to address workforce needs and unemployment. Comparable spending benchmarks would involve looking at other federal and state contracts for job corps centers or similar workforce development programs. The size of this award suggests a significant operational scope for the contractor.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. Analysis of subcontracting opportunities for small businesses would be crucial to understand the broader economic impact and the extent to which the small business ecosystem benefits from this award.

Oversight & Accountability

Oversight of this contract would likely fall under the Department of Labor's Inspector General, responsible for ensuring program integrity and preventing fraud, waste, and abuse. Transparency measures would include public reporting of contract awards and performance. Accountability would be tied to the contractor's ability to meet the service delivery requirements and performance metrics outlined in the contract.

Related Government Programs

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

Risk Flags

Potential for cost overruns if contractor mismanages expenses under fixed-price contract.
Need for clear performance metrics to ensure program effectiveness and accountability.
Limited insight into the competitive intensity despite 'full and open' designation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $26.7 million to ARBOR E & T LLC. WOODSTOCK JOB CORPS CENTER CTR OPS, O/A, CTS

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 $26.7 million.

What is the period of performance?

Start: 2023-09-16. End: 2025-09-30.

What is the track record of Arbor E & T LLC in delivering similar job training services?

Information regarding Arbor E & T LLC's specific track record in delivering job training services is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, client testimonials, and data on program completion rates and job placement success for any previous contracts they have held. Understanding their experience with government contracts, particularly those with the Department of Labor, is crucial for evaluating their capability to successfully execute this $26.6 million award. Without this historical performance data, it is difficult to gauge their reliability and effectiveness in meeting the objectives of the Woodstock Job Corps Center CTR Ops contract.

How does the awarded amount compare to the typical cost of operating a Job Corps center?

The awarded amount of $26.6 million for the Woodstock Job Corps Center CTR Ops contract needs to be benchmarked against the typical operational costs of similar Job Corps centers. Factors influencing these costs include the number of students served, the types of training programs offered, facility maintenance, staffing levels, and geographic location. A comprehensive comparison would involve analyzing data from the Department of Labor's budget allocations for other Job Corps centers or similar vocational training facilities. This analysis would help determine if the $26.6 million represents an efficient use of taxpayer funds or if it is significantly higher or lower than comparable operations, potentially indicating issues with pricing or scope.

What are the key performance indicators (KPIs) for this contract and how will success be measured?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for job training contracts, KPIs would include metrics such as student enrollment rates, program completion rates, job placement rates for graduates, average starting salaries of placed individuals, and employer satisfaction. The success of the Woodstock Job Corps Center CTR Ops contract will be measured against these predefined metrics. The Department of Labor will likely monitor these KPIs throughout the contract period to ensure that Arbor E & T LLC is delivering effective training and achieving the desired workforce development outcomes. Regular performance reviews and reporting will be essential for accountability.

What is the historical spending pattern for Job Corps center operations in Maryland?

Historical spending patterns for Job Corps center operations in Maryland are not detailed in the provided data. To establish a baseline, one would need to examine past contract awards for Job Corps centers within the state, noting the awarding agency, contractor, contract value, and duration. Analyzing trends in spending over several fiscal years would reveal whether the $26.6 million award to Arbor E & T LLC is consistent with previous investments, higher, or lower. This historical context is vital for understanding the long-term financial commitment to job training in Maryland and for assessing the current award's proportionality within that context.

Are there any specific risks associated with the fixed-price contract type for this service?

The fixed-price contract type for this job training service carries specific risks. While it offers cost certainty to the government, it can place a significant burden on the contractor, Arbor E & T LLC, to manage costs effectively. If the actual costs of delivering the training exceed the fixed price due to unforeseen circumstances (e.g., increased material costs, unexpected student needs, or higher-than-anticipated administrative expenses), the contractor may incur losses. Conversely, if the contractor manages costs exceptionally well, they could realize higher profit margins. This structure necessitates robust cost management by the contractor and careful scope definition by the government to avoid disputes or performance issues stemming from cost pressures.

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

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: $31,971,185

Exercised Options: $31,971,185

Current Obligation: $26,652,473

Actual Outlays: $25,625,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1605JE22D0017

IDV Type: IDC

Timeline