Department of Labor awards $76M contract for technical and trade school services to Management & Training Corporation

Contract Overview

Contract Amount: $76,153,805 ($76.2M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2024-01-31

End Date: 2027-01-31

Contract Duration: 1,096 days

Daily Burn Rate: $69.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EARLE CLEMENTS /AWARD/NEW CONTRACT

Place of Performance

Location: DANTE, RUSSELL County, VIRGINIA, 24237

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $76.2 million to MANAGEMENT & TRAINING CORPORATION for work described as: EARLE CLEMENTS /AWARD/NEW CONTRACT Key points: 1. Contract value of $76.15M over approximately three years suggests a significant investment in workforce development. 2. The contract was awarded using full and open competition, indicating a broad market search. 3. The use of a firm fixed-price contract type aims to control costs and provide predictability. 4. The contractor, Management & Training Corporation, has a substantial presence in government contracting. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized training services. 6. The contract duration of 1096 days (approx. 3 years) allows for sustained program delivery. 7. The award is categorized under 'Other Technical and Trade Schools', highlighting a focus on vocational skills.

Value Assessment

Rating: good

The contract value of $76.15M over three years for technical and trade school services appears reasonable given the scope of workforce development programs. Benchmarking against similar large-scale training contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific performance metrics or detailed service breakdowns, a definitive value assessment is challenging, but the scale suggests a substantial and potentially impactful program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 7 bidders indicates a competitive marketplace for these services. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions for the government. The competitive process is a positive sign for achieving fair market pricing.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to yield a more cost-effective solution and ensure that the government receives the best value for its investment in workforce training.

Public Impact

Individuals seeking technical and trade skills development will benefit from the services provided under this contract. The contract aims to deliver essential training and educational services to enhance workforce capabilities. The geographic impact is likely to be broad, potentially serving individuals across various regions where the contractor operates. Workforce implications include the potential for improved employment outcomes and skill alignment with industry demands for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is satisfactory but alternatives are not actively sought in future procurements.
Ensuring the quality and relevance of training programs to meet evolving labor market needs requires ongoing oversight.
Measuring the long-term employment and earning outcomes of program participants is crucial for assessing true impact.

Positive Signals

The use of full and open competition suggests a robust market engagement and potential for competitive pricing.
The firm fixed-price contract type provides cost certainty for the government.
The contractor, Management & Training Corporation, has experience in delivering similar services, which can be a positive signal for execution.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical skills. The market for workforce development and training is substantial, driven by government initiatives to upskill the labor force and address specific industry needs. Comparable spending benchmarks would involve looking at other large federal contracts for vocational training, career services, and educational program delivery, often managed by agencies like the Department of Labor, Department of Education, and Veterans Affairs.

Small Business Impact

While the data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false), the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors. The extent of small business participation will depend on the contractor's subcontracting plan and the availability of qualified small business providers for specialized training components. A robust subcontracting plan could foster opportunities within the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Labor's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

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

Risk Flags

Contract Performance Risk
Program Relevance Risk
Cost Overrun Risk (mitigated by FFP)
Small Business Subcontracting Compliance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $76.2 million to MANAGEMENT & TRAINING CORPORATION. EARLE CLEMENTS /AWARD/NEW CONTRACT

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $76.2 million.

What is the period of performance?

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

What is Management & Training Corporation's track record with similar government contracts, particularly with the Department of Labor?

Management & Training Corporation (MTC) is a significant government contractor, primarily known for operating correctional facilities and providing workforce training programs. They have a history of managing large-scale federal contracts, including those related to Job Corps centers and other vocational training initiatives for various government agencies. Their experience with the Department of Labor specifically would involve assessing past performance on similar training and education service contracts. A review of their contract history would reveal their success in meeting performance requirements, managing budgets, and adhering to federal regulations. While generally considered an experienced provider, like any large contractor, their performance history may include both successes and areas for improvement that warrant consideration in evaluating this new award.

How does the awarded amount of $76.15M compare to historical spending on similar technical and trade school services by the Department of Labor?

The $76.15M award represents a substantial investment in technical and trade school services by the Department of Labor over its approximately three-year duration. To benchmark this against historical spending, one would need to analyze the Department's budget allocations and contract awards for similar workforce development and vocational training programs over the past several fiscal years. For instance, comparing this to the annual funding for Job Corps centers or other large-scale training initiatives would provide context. If historical spending on comparable programs has been in a similar range, it suggests this award is consistent with the agency's commitment to such services. Conversely, if it represents a significant increase or decrease, it might indicate a shift in program priorities, scope, or market conditions. Without access to specific historical spending data for this precise service category, a definitive comparison is difficult, but the amount suggests a major program.

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

Key performance indicators (KPIs) for a contract of this nature typically revolve around the effectiveness and efficiency of the training programs delivered. Success is likely measured by metrics such as participant enrollment and completion rates, the percentage of participants who obtain industry-recognized certifications, and post-program employment rates within a specified timeframe (e.g., 6 or 12 months after completion). Other KPIs might include participant satisfaction surveys, the average wage of placed participants, and the duration of employment. The Department of Labor would establish these KPIs in the contract's Performance Work Statement (PWS). Management & Training Corporation's payment and contract continuation would be contingent upon meeting or exceeding these performance standards, which are crucial for ensuring the government receives value and achieves its workforce development objectives.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include the possibility of the training programs not aligning with current labor market demands, leading to low employment outcomes for participants. Another risk is the contractor failing to meet performance standards or deliver services cost-effectively. There's also a risk of contractor performance degradation over the contract's duration. Mitigation strategies typically involve robust contract oversight by the Department of Labor, including regular performance reviews, site visits, and data analysis of participant outcomes. The firm fixed-price structure incentivizes the contractor to manage costs efficiently. Furthermore, the contract likely includes clauses for corrective action plans if performance falls short, and potentially termination for default if significant issues persist. The competitive nature of the initial award also serves as a baseline mitigation, as the government selected a contractor based on perceived capability.

How does the selection of Management & Training Corporation align with the Department of Labor's strategic goals for workforce development?

The selection of Management & Training Corporation for this $76.15M contract likely aligns with the Department of Labor's strategic goals focused on enhancing workforce skills, promoting employment, and addressing critical labor shortages in various sectors. MTC's specialization in technical and trade school services directly supports the objective of providing individuals with the vocational training necessary to secure well-paying jobs. By awarding this contract, the Department signals its commitment to investing in programs that equip the workforce with in-demand skills, thereby contributing to economic growth and individual self-sufficiency. The scale of the contract suggests a significant initiative aimed at impacting a considerable number of individuals and potentially addressing specific industry needs identified by the Department.

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-00001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

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: $247,440,438

Exercised Options: $142,105,821

Current Obligation: $76,153,805

Actual Outlays: $60,890,826

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,931,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline