STRATEGIX MANAGEMENT LLC awarded $24.3M contract by Dept. of Labor for technical and trade school services

Contract Overview

Contract Amount: $24,318,061 ($24.3M)

Contractor: Strategix Management LLC

Awarding Agency: Department of Labor

Start Date: 2023-11-01

End Date: 2026-11-30

Contract Duration: 1,125 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GADSDEN JCC OA & CTS

Place of Performance

Location: GADSDEN, ETOWAH County, ALABAMA, 35901

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $24.3 million to STRATEGIX MANAGEMENT LLC for work described as: GADSDEN JCC OA & CTS Key points: 1. Contract value of $24.3M over 3 years suggests significant investment in workforce development. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type may offer cost certainty for the government. 4. The contract supports 'Other Technical and Trade Schools' (NAICS 611519), aligning with skills gap initiatives. 5. Awarded to STRATEGIX MANAGEMENT LLC, a single contractor, highlighting potential specialization or market concentration. 6. The contract duration of 1125 days (approx. 3 years) allows for sustained program delivery. 7. Geographic focus on Alabama (ST: AL) suggests a regional or state-specific training initiative.

Value Assessment

Rating: good

The contract value of $24.3M over approximately three years represents a substantial investment in technical and trade education. Benchmarking this against similar contracts for workforce development or vocational training programs would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature suggests an attempt to control costs. The award to a single entity warrants further investigation into whether this represents a competitive price or a premium for specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised, but specific exclusions were applied. While the number of bidders (10) is provided, the specifics of the exclusion process are not detailed. A higher number of bidders generally suggests more robust competition, which can lead to better pricing and innovation. The 'after exclusion of sources' clause requires careful review to understand its potential impact on the competitive landscape.

Taxpayer Impact: The full and open competition, despite exclusions, suggests that taxpayers likely benefited from a process designed to solicit multiple bids, potentially driving down costs compared to a sole-source award. The presence of 10 bidders indicates a degree of market interest and a reasonable chance of competitive pricing.

Public Impact

Individuals seeking technical and trade skills development in Alabama are the primary beneficiaries. The contract facilitates the delivery of educational services through 'Other Technical and Trade Schools'. The geographic impact is concentrated in Alabama (AL), potentially addressing regional workforce needs. Workforce implications include the potential upskilling and reskilling of individuals for in-demand jobs. The contract supports the Department of Labor's mission to promote economic opportunity and workforce preparedness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further clarification to ensure no viable competitors were unfairly barred.
The specific nature of the 'technical and trade school' services is not detailed, raising questions about the scope and effectiveness of the training provided.
Reliance on a single contractor, STRATEGIX MANAGEMENT LLC, for a significant sum could pose risks if performance falters or if the contractor lacks sufficient capacity.
The geographic limitation to Alabama might overlook broader national needs or opportunities for scalable solutions.

Positive Signals

The use of 'full and open competition' signals an effort to ensure a broad market solicitation.
The 'firm fixed price' contract type provides cost predictability for the government.
The contract duration of over three years allows for sustained program development and impact.
The award supports a critical area of workforce development, addressing skills gaps in technical and trade fields.
The number of bidders (10) suggests a healthy level of interest in this contract opportunity.

Sector Analysis

This contract falls within the Education and Training Services sector, specifically focusing on vocational and technical education. The NAICS code 611519, 'Other Technical and Trade Schools,' encompasses a wide range of specialized training institutions. The market for such services is driven by the demand for skilled labor across various industries, including manufacturing, healthcare, and technology. Federal spending in this area often supports initiatives aimed at closing skills gaps, retraining displaced workers, and promoting economic mobility. Comparable spending benchmarks would involve analyzing other Department of Labor or Department of Education contracts for similar workforce development and vocational training programs.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the contract was not specifically targeted towards small businesses, either as prime contractors or through subcontracting goals. Consequently, the direct impact on the small business ecosystem may be limited unless STRATEGIX MANAGEMENT LLC voluntarily engages small businesses for subcontracting. Further analysis of the subcontracting plan, if available, would be necessary to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is facilitated through contract databases like FPDS. Accountability measures would include performance reviews, payment milestones, and potential remedies for non-performance. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps
Apprenticeship Programs
Community College and Career Training Grants (CCCT)

Risk Flags

Potential lack of transparency regarding source exclusions in competition.
Risk of vendor lock-in due to single contractor award.
Unclear performance metrics and expected outcomes.
Limited information on small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.3 million to STRATEGIX MANAGEMENT LLC. GADSDEN JCC OA & CTS

Who is the contractor on this award?

The obligated recipient is STRATEGIX MANAGEMENT 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 $24.3 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-11-30.

What is the specific nature of the technical and trade school services being provided under this contract?

The contract identifies the services under NAICS code 611519, 'Other Technical and Trade Schools.' This broad category typically includes institutions offering vocational and technical training in fields such as automotive repair, culinary arts, cosmetology, HVAC, welding, and various skilled trades. However, the specific curriculum, target student population, and learning outcomes for this particular $24.3 million contract with STRATEGIX MANAGEMENT LLC are not detailed in the provided data. Further inquiry into the contract's statement of work (SOW) would be necessary to understand the precise services, such as specific certifications offered, duration of training programs, and the methods of instruction (e.g., online, in-person, hybrid).

How does the awarded amount of $24.3 million compare to typical spending for similar technical and trade school contracts by the Department of Labor?

The $24.3 million award over approximately three years represents a significant investment. To benchmark this value, one would need to analyze historical spending data for similar NAICS codes (611519) and contract types within the Department of Labor and potentially other agencies focused on workforce development. For instance, comparing this to other large-scale vocational training initiatives or grants administered by the DOL could provide context. Without direct comparative data on the number of individuals served, the types of training, or the duration of similar programs, it's challenging to definitively state if this represents high or low value. However, the firm fixed-price nature suggests an effort to contain costs within this substantial budget.

What are the potential risks associated with STRATEGIX MANAGEMENT LLC being the sole contractor for this significant award?

Awarding a contract of this magnitude ($24.3 million) to a single entity, STRATEGIX MANAGEMENT LLC, introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily reliant on one provider, potentially limiting flexibility and future negotiation leverage. Secondly, if STRATEGIX MANAGEMENT LLC experiences performance issues, financial instability, or faces unforeseen operational challenges, the continuity of the critical training services could be jeopardized, impacting the intended beneficiaries. Thirdly, without direct competition throughout the contract period, there might be less incentive for the contractor to continuously innovate or optimize service delivery and costs. The 'full and open competition after exclusion of sources' suggests initial competition, but ongoing market dynamics are not captured.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the fairness and competitiveness of the bidding process?

This designation indicates that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' implies that certain potential bidders or types of sources were subsequently excluded from consideration, either before or during the solicitation process. The reasons for these exclusions are critical to understanding the true level of competition. If the exclusions were based on legitimate, well-defined criteria related to capability or specific requirements, the competition might still be considered robust among the remaining eligible bidders. Conversely, if the exclusions were arbitrary or overly restrictive, it could have artificially limited competition, potentially leading to higher prices or reduced innovation. The fact that 10 bids were received suggests a reasonable level of market interest despite any exclusions.

What are the expected outcomes or performance metrics for the technical and trade school services funded by this contract?

The provided data does not specify the expected outcomes or performance metrics for the technical and trade school services. Typically, such contracts would include a detailed Statement of Work (SOW) outlining key performance indicators (KPIs). These KPIs often focus on metrics like student completion rates, job placement rates post-training, employer satisfaction with graduates, and the attainment of specific industry-recognized certifications. The Department of Labor likely has internal standards and reporting requirements for workforce development programs. Without access to the SOW or performance reports, it's impossible to assess the effectiveness or success of the training provided under this contract beyond the fact that it was awarded.

How does this contract align with the Department of Labor's broader mission and strategic goals related to workforce development?

This contract directly aligns with the Department of Labor's core mission of promoting the welfare of wage earners, improving working conditions, and advancing opportunities for profitable employment. By funding technical and trade school services, the DOL is investing in programs designed to equip individuals with the skills necessary to secure employment in high-demand sectors. This is particularly relevant in addressing skills gaps, supporting economic growth, and providing pathways to economic self-sufficiency for participants. The focus on vocational training supports the development of a skilled workforce essential for various industries, contributing to national competitiveness and individual prosperity.

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-23-R-00003

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 MASSACHUSETTS AVE NW STE 700, WASHINGTON, DC, 20001

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,765,195

Exercised Options: $31,089,711

Current Obligation: $24,318,061

Actual Outlays: $19,080,089

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline