Labor Department Awards $23.9M Contract for Penobscot Job Corps Center Operations

Contract Overview

Contract Amount: $23,877,701 ($23.9M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2024-04-01

End Date: 2027-04-30

Contract Duration: 1,124 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

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

Place of Performance

Location: BANGOR, PENOBSCOT County, MAINE, 04401

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $23.9 million to ARBOR E & T LLC for work described as: OPERATION OF THE PENOBSCOT JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on operating the Penobscot Job Corps Center, including outreach, admissions, and career transition services. 2. ARBOR E & T LLC is the contractor, awarded through full and open competition. 3. The contract type is Fixed Price with Economic Price Adjustment, indicating potential for cost fluctuations. 4. The sector is primarily education and workforce development, supporting vocational training.

Value Assessment

Rating: good

The contract value of $23.9 million over approximately 3.7 years appears reasonable for comprehensive job corps center operations. Benchmarking against similar large-scale educational and training service contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential workforce development services.

Public Impact

Provides critical job training and career services to individuals in Maine. Supports the Department of Labor's mission to enhance workforce development. The contract ensures continuity of services for students and program participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to increased costs.
Contract duration is substantial, requiring ongoing performance monitoring.

Positive Signals

Awarded through full and open competition.
Supports a vital government program for workforce development.

Sector Analysis

This contract falls within the education and training sector, specifically focused on vocational and technical education services provided by Job Corps centers. Spending in this area is crucial for addressing skills gaps and promoting economic mobility.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms for fixed-price contracts with economic adjustments should be in place to ensure performance and cost control.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost increases due to Economic Price Adjustment.
Contractor's performance history needs thorough review.
Ensuring effective student outcomes and job placement.
Long-term contract requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.9 million to ARBOR E & T LLC. OPERATION OF THE PENOBSCOT JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

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 $23.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-04-30.

What is the historical performance of ARBOR E & T LLC in managing similar government contracts, particularly Job Corps centers?

Assessing ARBOR E & T LLC's past performance is crucial for understanding their capability to successfully execute this contract. Reviewing their track record with similar educational or workforce development programs, including any past issues or successes, will provide insight into potential risks and the likelihood of achieving contract objectives. This historical data is a key indicator of future performance.

How will the economic price adjustment (EPA) clause be managed to mitigate potential cost overruns for taxpayers?

The management of the EPA clause is critical. The agency should have clear guidelines and monitoring processes to track the indices used for adjustments and ensure they accurately reflect legitimate cost increases. Regular reviews and potential caps on adjustments can help control taxpayer exposure to market volatility, ensuring the contract remains cost-effective.

What are the key performance indicators (KPIs) for this contract, and how will success in student placement and career transition be measured?

Defining and tracking specific KPIs is essential for measuring the effectiveness of the Penobscot Job Corps Center operations. Key metrics should include student graduation rates, job placement percentages in relevant fields, starting salaries of placed individuals, and long-term career retention. Robust measurement ensures the program is meeting its objectives and providing value to participants and the government.

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-00008

Offers Received: 9

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

Evaluated Preference: NONE

Contractor Details

Address: 805 N WHITTINGTON PKWY, LOUISVILLE, KY, 40222

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

Financial Breakdown

Contract Ceiling: $70,384,882

Exercised Options: $41,317,353

Current Obligation: $23,877,701

Actual Outlays: $19,096,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline