Labor Department awards $29.3M contract for Grafton Job Corps Center operations, outreach, and career transition services

Contract Overview

Contract Amount: $29,286,815 ($29.3M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: OPERATION OF THE GRAFTON JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: NORTH GRAFTON, WORCESTER County, MASSACHUSETTS, 01536

State: Massachusetts Government Spending

Plain-Language Summary

Department of Labor obligated $29.3 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF THE GRAFTON JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract focuses on essential operational and support services for a key workforce development program. 2. The fixed-price structure with economic price adjustment aims to manage cost fluctuations. 3. Competition was robust, indicating potential for competitive pricing and value. 4. The contract duration of three years provides stability for service delivery. 5. This award supports the Department of Labor's mission to enhance workforce skills and opportunities.

Value Assessment

Rating: good

The contract value of approximately $29.3 million over three years suggests a significant investment in workforce development. Benchmarking against similar contracts for Job Corps center operations is crucial for a precise value-for-money assessment. The fixed-price with economic price adjustment (FPEPA) contract type is common for long-term service contracts to account for inflation, but requires careful monitoring of price adjustments. Without specific comparable contract data, it's difficult to definitively state if the pricing is optimal, but the competitive nature of the award suggests a reasonable market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bids received. This level of competition is generally positive, suggesting that multiple capable vendors were interested and that the solicitation was accessible. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The agency's decision to pursue full and open competition indicates a commitment to leveraging the market to secure the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces and encourages a broader pool of contractors to vie for government work, leading to potentially better service delivery and cost savings.

Public Impact

Benefits students and individuals seeking vocational training and career services through the Job Corps program. Ensures the continued operation and effectiveness of the Grafton Job Corps Center. Provides critical outreach and admissions services to recruit eligible participants. Facilitates career transition services to help graduates find employment. Supports workforce development initiatives in Massachusetts and potentially broader regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment clause if market conditions fluctuate significantly.
Ensuring consistent service quality across the three-year period requires diligent performance monitoring.
Dependence on a single contractor for critical operational and support services.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract duration provides stability for the contractor and consistent service delivery.
The fixed-price element provides some cost certainty for the government.

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 providing disadvantaged youth with the skills and education needed to secure employment. The market for operating such centers involves specialized educational service providers. Comparable spending benchmarks would involve looking at other Job Corps center contracts and similar large-scale workforce training programs administered by federal agencies.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor, ADAMS AND ASSOCIATES INC, is likely a larger entity, the contract may still offer subcontracting opportunities for small businesses within the scope of operations, outreach, admissions, and career transition services. Further analysis would be needed to determine the extent of small business subcontracting planned or achieved.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Mechanisms likely include regular performance reviews, site visits, and adherence to reporting requirements outlined in the contract. Transparency is generally maintained through contract award 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
Federal Job Training Programs
Vocational Education Contracts

Risk Flags

Potential for cost increases due to EPA clause.
Ensuring consistent service quality over the contract duration.
Dependence on contractor performance for critical program delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $29.3 million to ADAMS AND ASSOCIATES INC. OPERATION OF THE GRAFTON JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $29.3 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the historical spending pattern for the operation of the Grafton Job Corps Center?

Historical spending data for the Grafton Job Corps Center specifically is not directly available in the provided snippet. However, the current award of $29.3 million over three years (approximately $9.77 million per year) provides a recent benchmark. To understand historical patterns, one would need to access prior contract awards for this specific center, looking at contract values, durations, and awarded contractors over previous years. This would reveal trends in cost escalation, changes in service scope, and contractor stability. Analyzing past performance and cost data is crucial for assessing the current contract's value and identifying any significant deviations or improvements.

How does the per-unit cost of services compare to other Job Corps centers?

A direct per-unit cost comparison is challenging without detailed service delivery metrics and cost breakdowns for other Job Corps centers. The provided data indicates a total contract value of $29,286,814.92 over 1095 days. To establish a per-unit cost, we would need to define a 'unit' – for example, cost per student served, cost per training hour, or cost per successful placement. Assuming a rough annual cost of $9.77 million, this figure needs to be contextualized by the center's capacity, student population, and the specific mix of services offered. Benchmarking would require accessing similar data from other centers to determine if Grafton's operational costs are in line with national averages or specific regional cost factors.

What is ADAMS AND ASSOCIATES INC's track record with federal contracts, particularly in workforce development?

ADAMS AND ASSOCIATES INC has a track record with federal contracts, as evidenced by this award. To assess their performance, a review of their contract history with the Department of Labor and other agencies would be necessary. This would involve examining past performance evaluations, any contract disputes or terminations, and their success in delivering services for similar programs like Job Corps. Their experience in operating educational facilities and providing workforce services would be key indicators of their capability and reliability for this significant contract. A deeper dive into their past performance metrics would provide a clearer picture of their suitability.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. However, for a Job Corps center operation contract, typical KPIs would likely include metrics related to student recruitment and retention rates, academic and vocational training completion rates, job placement rates for graduates, average starting wages of placed graduates, and participant satisfaction surveys. Performance measurement would involve regular reporting by the contractor, site visits by Department of Labor officials, and potentially independent evaluations to ensure compliance with contract requirements and achievement of program goals. The effectiveness of these KPIs and measurement processes directly impacts the value derived from the contract.

What is the risk associated with the economic price adjustment (EPA) clause in this contract?

The Economic Price Adjustment (EPA) clause in this fixed-price contract is designed to protect the contractor from significant fluctuations in costs, particularly labor and material expenses, over the contract's three-year term. The primary risk for the government is potential cost overruns if inflation or market prices rise unexpectedly and substantially. While intended to ensure contractor viability and service continuity, an overly generous EPA could lead to the government paying more than necessary. Careful monitoring of the indices used for adjustment and the actual cost drivers is essential to mitigate this risk and ensure fair pricing.

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-23-R-00004

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 6151 LAKESIDE DR, STE 100, RENO, NV, 89511

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

Financial Breakdown

Contract Ceiling: $73,192,059

Exercised Options: $42,869,913

Current Obligation: $29,286,815

Actual Outlays: $24,128,652

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $995,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline