Labor Department awards $45.6M contract for OA & CTS services to Odle Management Group

Contract Overview

Contract Amount: $45,569,837 ($45.6M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2024-05-01

End Date: 2027-04-30

Contract Duration: 1,094 days

Daily Burn Rate: $41.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TURNER JCC OA & CTS

Place of Performance

Location: ALBANY, WORTH County, GEORGIA, 31705

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $45.6 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: TURNER JCC OA & CTS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. A duration of 1094 days indicates a medium-to-long-term service requirement. 4. The contract's value is substantial, requiring careful monitoring of performance and value. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical training services. 6. The contract is being performed in Georgia (GA).

Value Assessment

Rating: fair

The contract value of $45.6 million over approximately three years suggests a significant investment in OA & CTS services. Benchmarking this against similar contracts is challenging without more specific service details. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively. The award to Odle Management Group, L.L.C. warrants a review of their past performance on similar government contracts to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative service delivery from multiple potential contractors.

Public Impact

The primary beneficiaries are likely individuals seeking the OA & CTS services provided under this contract. The contract delivers essential technical and trade school services, contributing to workforce development. Services are geographically focused within Georgia, impacting the local workforce and economy. This contract has implications for the training and development of the workforce in the specified technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service definitions are not tightly managed.
Ensuring consistent quality of training across all service delivery points.
Monitoring contractor performance to ensure adherence to contract terms and objectives.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risk for the government.
Full and open competition indicates a robust bidding process.
Multiple bidders (6) suggest a competitive market for these services.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector (NAICS 611519), which is part of the broader education and training services industry. This sector is characterized by specialized training programs designed to equip individuals with specific vocational skills. The market size for such services can vary significantly based on regional demand and federal training initiatives. This contract represents a significant portion of spending within this specific niche for the Department of Labor.

Small Business Impact

While the contract was awarded under full and open competition and there is no explicit small business set-aside indicated (ss: false, sb: false), the prime contractor, Odle Management Group, L.L.C., may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the nature of the services required. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Standard contract administration processes, performance reviews, and financial audits will be employed to ensure accountability and transparency. The firm-fixed-price nature of the contract means oversight will focus heavily on performance delivery and adherence to scope rather than cost management.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Job Training Initiatives
Vocational Education and Training Contracts
Technical Skills Development Programs

Risk Flags

Potential for performance issues if contractor underestimates costs under FFP.
Need for clear scope definition to prevent disputes or quality degradation.
Monitoring of training quality and effectiveness is crucial.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.6 million to ODLE MANAGEMENT GROUP, L.L.C.. TURNER JCC OA & CTS

Who is the contractor on this award?

The obligated recipient is ODLE MANAGEMENT GROUP, L.L.C..

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 $45.6 million.

What is the period of performance?

Start: 2024-05-01. End: 2027-04-30.

What is the track record of Odle Management Group, L.L.C. with federal contracts, particularly in providing OA & CTS services?

A review of Odle Management Group, L.L.C.'s federal contract history is crucial for assessing their capability to deliver on this $45.6 million award. Information on past performance, including successful contract completions, any past disputes or terminations, and client satisfaction ratings (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), would provide significant insight. Specifically, examining their experience with similar technical and trade school services, firm-fixed-price contracts, and large-scale federal awards will help determine if they have a proven ability to meet the Department of Labor's requirements effectively and efficiently. A lack of relevant past performance could indicate a higher risk for this contract.

How does the awarded amount of $45.6 million compare to historical spending on similar OA & CTS services by the Department of Labor or other federal agencies?

To benchmark the value of this $45.6 million contract, historical spending data for similar OA & CTS services is essential. Analyzing past contracts awarded by the Department of Labor, or other agencies with comparable training needs, can reveal typical contract values, durations, and the scope of services provided. If this contract's value is significantly higher or lower than historical averages for similar services, it warrants further investigation. Factors such as inflation, changes in service requirements, or market dynamics could explain deviations. Without comparative data, it is difficult to definitively assess whether this award represents good value for taxpayer money or if it is potentially over-priced or under-scoped.

What are the specific performance metrics and key performance indicators (KPIs) that will be used to evaluate Odle Management Group, L.L.C.'s success under this contract?

The effectiveness of this contract hinges on clearly defined performance metrics and KPIs. For OA & CTS services, these might include metrics such as student completion rates, job placement rates post-training, employer satisfaction with trained individuals, adherence to curriculum standards, and timely delivery of training modules. The Department of Labor's oversight team will need to establish these KPIs in the contract's statement of work and actively monitor Odle Management Group's performance against them. Robust KPIs, coupled with a clear process for addressing performance deficiencies, are critical for ensuring the government receives the intended benefits and value from this significant investment.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration for specialized training services?

A firm-fixed-price (FFP) contract, while shifting cost risk to the contractor, can present specific challenges for complex service delivery like OA & CTS. Potential risks include the contractor cutting corners on quality to maintain profitability if costs escalate unexpectedly, or a lack of flexibility to adapt to evolving training needs or technological advancements during the contract's 1094-day term. If the initial scope definition is inadequate, the contractor may resist necessary changes, leading to disputes. Furthermore, if Odle Management Group, L.L.C. underestimated the true cost of delivering these specialized services, they might struggle to perform adequately, potentially impacting service quality or leading to contractor default, although the competitive bidding process aims to mitigate this.

How does the geographic focus on Georgia (GA) align with the Department of Labor's broader workforce development objectives?

The specific geographic focus on Georgia for these OA & CTS services suggests a targeted approach by the Department of Labor, potentially addressing identified workforce needs or skill gaps within that state. Understanding this alignment requires examining the Department's strategic goals for workforce development in Georgia, such as supporting specific industries experiencing labor shortages or providing opportunities for underserved populations. If Georgia has been identified as a priority area for federal training investments, this contract would be a direct manifestation of that strategy. Conversely, if the focus seems arbitrary, it might raise questions about the rationale behind the geographic limitation and its overall impact on national workforce development efforts.

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-21-R-00007

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

Address: 9937 E BELL RD STE 110, SCOTTSDALE, AZ, 85260

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

Financial Breakdown

Contract Ceiling: $120,613,238

Exercised Options: $70,314,523

Current Obligation: $45,569,837

Actual Outlays: $36,116,169

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline